UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 2, 2012
AIR METHODS CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware | 000-16079 | 84-0915893 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
| 7301 South Peoria, Englewood, Colorado | 80112 | |||
| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (303) 792-7400
N/A
(Former name or former address, if changed since last report)
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
SECTION 2
Item 2.02. Results of Operations and Financial Condition.
On August 2, 2012, Air Methods Corporation (the "Company") announced financial results for the quarter ended June 30, 2012. A copy of the press release is furnished as Exhibit 99.1 to this Current Report. The information contained in this report, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934,nor shall information be deemed incorporated by reference in any registration statement, proxy statement, or other report filed under the Securities Act of 1933 or the Securities Exchange Act of 1934, unless the Company specifically incorporates that information into those documents by reference.
Item 9.01. Financial Statements and Exhibits.
(d) The following exhibit is filed as part of this report:
99.1 Press Release dated August 2, 2012.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AIR METHODS CORPORATION (Registrant) |
||
| August 2, 2012 (Date) |
/s/ TRENT J. CARMAN Trent J. Carman Chief Financial Officer |
EXHIBIT 99.1
DENVER, Aug. 2, 2012 (GLOBE NEWSWIRE) -- Air Methods Corporation (Nasdaq:AIRM), the global leader in air medical transportation, reported financial results for the quarter ended June 30, 2012 and provided an update on July 2012 community-based patient transports. For the quarter, revenue increased 48% from $150.2 million to $222.5 million in the current-year quarter. For the six-month period, revenue increased 47% to $413.3 million, compared with $282.1 million in the prior-year six-month period. Financial results for the three and six months ended June 30, 2012 include operations associated with the Company's acquisition of OF Air Holdings and its subsidiaries (together, Omniflight) effective August 1, 2011.
For the quarter, net income increased 217% to $31.4 million, or $2.43 per diluted share, as compared with prior-year second quarter net income of $9.9 million, or $0.77 per diluted share. Net income for the six-month period increased 181% to $43.9 million, or $3.39 per diluted share, compared to $15.6 million, or $1.22 per diluted share, for the prior-year six-month period. The current-year second quarter results include pre-tax severance expenses of $1.1 million ($0.05 per share after tax effect).
For the second quarter, community-based revenue increased 72% to $161.9 million compared to $94.1 million in the prior year, while segment net income increased 178% to $54.5 million from $19.6 million. Total community-based patient transports increased by 47% to 15,134, as compared with 10,309 in the prior-year quarter. Community-based patient transports for bases open greater than one year and excluding Omniflight bases (Same-Base Transports) increased 3% or 296 patient transports, as compared with the prior-year quarter. Weather cancellations for these same base locations decreased by 1,070 compared with the prior-year quarter. Net revenue per community-based transport was $10,609 for the current-year quarter, compared with $9,008 in the prior-year quarter, an 18% increase. Hospital-based revenue increased by 9% to $53.0 million compared to $48.6 million in the prior-year period, while segment net income increased 155% to $4.6 million from $1.8 million. External revenue within the United Rotorcraft division was unchanged at $7.5 million compared with the prior-year quarter, while external segment net income decreased by 33% to $0.9 million in the current-year quarter. Consolidated maintenance expense decreased by $0.3 million or 1%, as compared with the prior-year quarter, despite a 34% increase in flight volume. Fuel expense per flight hour was unchanged during the quarter, compared with the prior-year period.
The Company also provided an update on preliminary July 2012 flight volume. Total community-based transports were 5,053 during July 2012, compared with 3,785 in July 2011, a 34% increase. Same-Base Transports during the month of July decreased by 157 transports, or 4%, as compared with July 2011, while weather cancellations decreased by 36, as compared with the prior-year month for these same bases.
Aaron Todd, CEO, stated, "During our second quarter, growth in Same-Base Transports attributed to milder weather, increase in net revenue per community-based transport, decrease in maintenance expense per flight hour, and the accretive financial performance of our Omniflight acquisition have combined to create strong top-line and bottom-line results. The Company continues to enjoy solid organic growth as well. Excluding revenue generated from Omniflight operating bases, our revenue would have grown 22%. We remain very optimistic for continued strength in our operating results for the remainder of 2012, especially when considering that the second half of 2012 will benefit from a full six months of combined operations and the non-recurrence of transaction and severance costs associated with the Omniflight acquisition."
The Company will discuss these results in a conference call scheduled today at 4:15 p.m. Eastern. Interested parties can access the call by dialing (877) 883-0656 (domestic) or (706) 643-8826 (international) or by accessing the web cast at www.airmethods.com. A replay of the call will be available at (855) 859-2056 (domestic) or (404) 537-3406 (international), access number 11941783, for 3 days following the call and the web cast can be accessed at www.airmethods.com for 30 days.
Air Methods Corporation (www.airmethods.com) is the global leader in air medical transportation. The Hospital Based Services Division is the largest provider of air medical transport services for hospitals. The Community Based Services Division is one of the largest community-based providers of air medical services. United Rotorcraft Division specializes in the design and manufacture of aeromedical and aerospace technology. Air Methods' fleet of owned, leased or maintained aircraft features over 400 helicopters and fixed wing aircraft.
The Air Methods Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6955
Forward Looking Statements: Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this press release that are "forward-looking statements" are based on current expectations and assumptions that are subject to 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 air medical services and United Rotorcraft Division; the collection rates for patient transports; the continuation and/or renewal of air medical service contracts; the ability of the Company to successfully finalize the integration of Omniflight; the anticipated synergies associated with the acquisition of Omniflight; the anticipated benefits of the Company's internal reorganization; extreme weather conditions across the U.S.; development and changes in laws and regulations, including, without limitation, the impact of the Patient Protection and Affordable Care Act; increased regulation of the health care and aviation industry through legislative action and revised rules and standards; and other matters set forth in the Company's filings with the SEC. The Company is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
Please contact Christine Clarke at (303) 792-7579 to be included on the Company's fax and/or mailing list.
- FINANCIAL STATEMENTS ATTACHED -
|
AIR METHODS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands) (unaudited) |
||||
| June 30, 2012 | December 31, 2011 | |||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ 27,720 | 3,562 | ||
| Trade receivables, net | 224,684 | 187,056 | ||
| Other current assets | 58,880 | 65,101 | ||
| Total current assets | 311,284 | 255,719 | ||
| Net property and equipment | 555,811 | 569,578 | ||
| Other assets, net | 199,272 | 203,174 | ||
| Total assets | $ 1,066,367 | 1,028,471 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Current liabilities: | ||||
| Notes payable related to aircraft pending long-term financing | $ 3,022 | 27,940 | ||
| Current portion of indebtedness | 65,534 | 67,989 | ||
| Accounts payable, accrued expenses and other | 91,039 | 74,779 | ||
| Total current liabilities | 159,595 | 170,708 | ||
| Long-term indebtedness | 484,479 | 483,886 | ||
| Other non-current liabilities | 83,967 | 85,975 | ||
| Total liabilities | 728,041 | 740,569 | ||
| Total stockholders' equity | 338,326 | 287,902 | ||
| Total liabilities and stockholders' equity | $ 1,066,367 | 1,028,471 | ||
|
AIR METHODS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except share and per share amounts) (unaudited) |
||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||
| 2012 | 2011 | 2012 | 2011 | |||||
| Revenue: | ||||||||
| Flight operations | $ 213,466 | 140,892 | 395,610 | 265,413 | ||||
| Product operations | 7,516 | 7,541 | 14,748 | 13,342 | ||||
| Other | 1,498 | 1,729 | 2,936 | 3,312 | ||||
| Total revenue | 222,480 | 150,162 | 413,294 | 282,067 | ||||
| Expenses: | ||||||||
| Operating expenses | 120,694 | 94,647 | 240,957 | 179,392 | ||||
| Loss (gain) on disposition of assets, net | 30 | 335 | (211) | (26) | ||||
| General and administrative | 25,549 | 18,700 | 50,424 | 37,007 | ||||
| Depreciation and amortization | 20,943 | 16,695 | 41,822 | 33,187 | ||||
| 167,216 | 130,377 | 332,992 | 249,560 | |||||
| Operating income | 55,264 | 19,785 | 80,302 | 32,507 | ||||
| Interest expense | (5,272) | (4,311) | (10,865) | (8,821) | ||||
| Other, net | 998 | 896 | 1,928 | 2,113 | ||||
| Income before income taxes | 50,990 | 16,370 | 71,365 | 25,799 | ||||
| Income tax expense | (19,577) | (6,450) | (27,478) | (10,167) | ||||
| Net income | $ 31,413 | 9,920 | 43,887 | 15,632 | ||||
| Income per common share: | ||||||||
| Basic | $ 2.44 | 0.78 | 3.42 | 1.24 | ||||
| Diluted | $ 2.43 | 0.77 | 3.39 | 1.22 | ||||
| Weighted average common shares outstanding - basic | 12,859,285 | 12,658,641 | 12,826,463 | 12,633,222 | ||||
| Weighted average common shares outstanding - diluted | 12,952,525 | 12,812,765 | 12,939,211 | 12,788,094 | ||||
CONTACT: Trent Carman, Chief Financial Officer, (303) 792-7591.