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05/11 16:04 Air Methods Reports Record First Quarter
DENVER, May 11 /PRNewswire/ -- Air Methods Corporation (Nasdaq: AIRM) -- a leading provider in the $1 billion market for aeromedical services -- reported record revenues and net income for the first quarter ended March 31, 1998. Revenues increased 62% to $12.2 million compared with $7.6 million in the prior year quarter. Net income increased more than 16-fold to $900,000, or $0.11 per basic and diluted share, compared with $54,000, or $0.01 per share, in the prior year quarter.
Results reflect:
-- 46% increase in flight operations revenues to $9.9 million compared to
$6.8 million in the year ago quarter due to two new contracts, annual
price increases in other contracts, and the acquisition of Mercy Air
Service, Inc.
-- 81% increase in product operations revenues to $1.4 million compared to
$782,000 in the year ago quarter due to a 38% increase in Air Methods
Product Division revenues and the addition of Mercy Air's parts and
servicing operation.
-- 12% increase in total revenues related to the disposition of two
helicopters.
The benefit of these factors more than offset fewer Flight Service patient transports as a result of bad weather, the cost to replace a helicopter, and new business development efforts, including the startup costs associated with two new contracts. The first quarter is seasonally the Company's smallest profit period due to reductions in flight activity during winter months.
Flight operations included 21 flight service contracts providing outsourced emergency transportation to hospitals and hospital consortia compared to 19 in the year ago period. The increase reflects new agreements signed with Evansville (Indiana) Wellborn Baptist Hospital, which started December 1997, and Flagstaff (Arizona) Medical Center, which started in March. Mercy Air, an independent provider of emergency transportation and medical services, which was acquired July 1997, added $3.1 million in revenues.
Product operations included $982,000 in Air Methods Product Division revenues. This reflected progress on two contracts totaling more than $1.5 million to manufacture electrical system components for the U.S. Air Force HH-60G PaveHawk helicopter program. Product Division revenues also included a contract to install a medical interior for the Bell 407 sold to Flagstaff Medical Center.
The Company's fleet of owned, leased or maintained aircraft increased 11 units to 43 compared to 32 in the year ago quarter. This reflects a net 4 additional Flight Service helicopters and a net 7 additional Mercy Air helicopters.
"Based on the groundwork we've established in the first quarter, we expect to make continued progress on our growth plan for the year," said George Belsey, Chairman and CEO. "Key elements of this plan include the expansion of Flight Services and Mercy Air and continued development of a larger contract base for the Products Division. In addition, we intend to continue to pursue consolidating acquisitions within the aeromedical industry, where practical, and to exploit our core competencies to create new revenue centers."
Air Methods Corporation is a leading provider in the estimated $1 billion market for aeromedical services. The Flight Services Division is one of the largest providers of air medical transport outsourced services for hospital systems around the country. The Mercy Air subsidiary is one of the largest independent providers of air medical services. The Products Division specializes in the design and manufacture of multi-functional interior products and systems for commercial and government agencies, domestically and internationally.
-- Financials Attached --
Forward Looking Statements: This news release includes certain forward-looking statements which are subject to various risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors, including but not limited to the size, structure and growth of the Company's flight services and products markets; the continuation and/or renewal of flight service contracts; the acquisition of new and profitable Products Division contracts and other flight service operations; the expansion of Mercy Air operations; continued royalty revenue from the Company's foreign franchise, and other matters.
AIR METHODS CORPORATION STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per share amounts) (unaudited) THREE MONTHS ENDED MARCH 31, ------------------------------- 1998 1997 -------- ------- Revenue: Flight operations $9,863 $6,776 Products operations 1,416 782 Gain on disposition of assets, net 934 -- -------- -------- 12,213 7,558 Expenses: Operating expenses 8,188 5,483 General & administrative 1,543 992 Depreciation & amortization 1,041 821 -------- -------- 10,772 7,296 Operating income 1,441 262 Interest expenses & other, net 541 208 -------- -------- Net income $900 $54 ======== ======== Net income per common share: Basic and Diluted $0.11 $0.01 ======== ======== Common shares outstanding: Basic 8,158,489 8,110,230 ======== ======== Diluted 8,300,259 8,151,087
======== ======== SOURCE Air Methods Corporation
-0- 05/11/98
/CONTACT: Aaron Todd, Chief Financial Officer of Air Methods, 303-792-7413, or Gary Fishman or Susan Romeo, Investor Relations, both of Hudson Stone Group, 212-527-4808/
(AIRM)
CO: Air Methods Corporation ST: Colorado IN: ARO HEA MTC SU: ERN
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