Air Methods Corp. has a market cap of $1.11 billion; its shares were traded at around $87.19 with a P/E ratio of 23.1 and P/S ratio of 2. Air Methods Corp. had an annual average earning growth of 17.7% over the past 10 years. GuruFocus rated Air Methods Corp. the business predictability rank of 3.5-star.
This is the annual revenues and earnings per share of AIRM over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of AIRM.
Highlight of Business Operations:Hospital-Based Services (HBS) - provides air medical transportation services to hospitals throughout the U.S. under exclusive operating agreements. Revenue consists primarily of fixed monthly fees (approximately 78% of total contract revenue) and hourly flight fees (approximately 22% of total contract revenue) billed to hospital customers. In 2010 the HBS Division generated 35% of our total revenue, compared to 39% in 2009 and 38% in 2008.
Products Division - designs, manufactures, and installs aircraft medical interiors and other aerospace and medical transport products for domestic and international customers. In 2010 the Products Division generated 4% of our total revenue, compared to 5% in 2009 and 3% in 2008.
Flight volume. Fluctuations in flight volume have a greater impact on CBS operations than HBS operations because almost all of CBS revenue is derived from flight fees, as compared to approximately 22% of HBS revenue. By contrast, 79% of our costs primarily associated with flight operations (including salaries, aircraft ownership costs, hull insurance, and general and administrative expenses) incurred during the year ended December 31, 2010, are mainly fixed in nature. While flight volume is affected by many factors, including competition and the effectiveness of marketing and business development initiatives, the greatest single variable has historically been weather conditions. Adverse weather conditions—such as fog, high winds, or heavy precipitation—hamper our ability to operate our aircraft safely and, therefore, result in reduced flight volume. Total patient transports for CBS operations were approximately 40,000 for 2010 compared to approximately 39,600 for 2009. Patient transports for CBS bases open longer than one year (Same-Base Transports) were approximately 37,200 in 2010 compared to 38,600 in 2009. Cancellations due to unfavorable weather conditions for CBS bases open longer than one year were 1,236 lower in 2010 compared to 2009. Requests for community-based services decreased by 2.9% for the year ended December 31, 2010, for bases open greater than one year.
Cost of medical interiors and products increased $8,313,000, or 85.4%, for the year ended December 31, 2009, as compared to the previous year, due primarily to changes in sales volume and sales mix. The average net margin earned on projects during 2009 was 21.8% compared to 17.1% in 2008. Costs in 2008 included development and design work on avionics and other aircraft interior configurations for commercial customers, leading to higher engineering and documentation costs and lower profit margins.
We had cash and cash equivalents of $60,710,000 and working capital of $122,599,000 at December 31, 2010, compared to cash and cash equivalents of $38,073,000 and working capital of $86,389,000 at December 31, 2009. Cash generated by operations totaled $110,036,000 in 2010 compared to $111,408,000 in 2009. Despite an increase in accounts receivable as a result of increased revenue, cash generated by operations remained consistent due to improved collections for CBS operations. Days sales outstanding for CBS operations, measured by comparing net revenue for the annualized previous 3-month period to outstanding open net accounts receivable, decreased from 107 days at December 31, 2009, to 90 days at December 31, 2010.
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