Air Methods Corp. (AIRM, Financial) filed Quarterly Report for the period ended 2009-03-31.
Air Methods Corporation provides air medical emergency transport services and systems throughout North America. The Air Medical Service Division offers their clients helicopters and airplanes equipped with medical interiors for flights from the scene of an accident or general hospital to a trauma center. The Products Division designs manufactures and installs aircraft medical interiors and other aerospace products. Air Methods Corp. has a market cap of $316.2 million; its shares were traded at around $26.14 with a P/E ratio of 18.5 and P/S ratio of 0.6. Air Methods Corp. had an annual average earning growth of 20.3% over the past 5 years.
Depreciation and amortization expense increased $491,000, or 12.0% for the three months ended March 31, 2009, compared to 2008. The increase is primarily related to the purchase of our corporate headquarters building in October 2008 for $7.4 million and the purchase of fourteen aircraft for approximately $15.6 million subsequent to March 31, 2008.
Our working capital position as of March 31, 2009, was $103,733,000, compared to $115,962,000 at December 31, 2008. We had cash and cash equivalents of $9,053,000 at March 31, 2009, compared to $13,147,000 at December 31, 2008. Cash generated by operations was $15,682,000 in the first quarter of 2009, compared to $9,709,000 in the first quarter of 2008, reflecting the change in operating results described above.
Cash used by investing activities totaled $7,877,000 in 2009 compared to $1,176,000 in 2008. Significant equipment acquisitions in the first quarter of 2009 included the purchase of two aircraft for approximately $4.7 million. During the quarter, we sold two aircraft for total proceeds of $1.2 million. Equipment acquisitions in the first quarter of 2008 included the buyout of two CJ leased aircraft which were subsequently sold during the quarter for net proceeds of approximately $2.8 million. Both aircraft had been identified for disposition upon acquisition of CJ in October 2007. We also sold two other aircraft during the quarter for total proceeds of $1.5 million.
Financing activities used $11,899,000 in 2009 compared $1,157,000 in 2008. The primary use of cash in both 2009 and 2008 was regularly scheduled payments of long-term debt and capital lease obligations. In 2008 these payments were partially offset by draws against our line of credit. In 2009 we paid off a $3.9 million short-term note payable to an aircraft manufacturer for the delivery of an EC135 helicopter. We are exploring long-term refinancing options for this balance in the second quarter of 2009.
Market risk is the potential loss arising from adverse changes in market rates and prices, such as foreign currency exchange and interest rates. All of our product sales and related receivables are payable in U.S. dollars. We are subject to interest rate risk on our debt obligations and notes receivable, some of which have fixed interest rates, except $13,803,000 outstanding against the line of credit and $42,860,000 in notes payable. Based on the amounts outstanding at March 31, 2009, the annual impact of a change of 100 basis points in interest rates would be approximately $567,000. Interest rates on these instruments approximate current market rates as of March 31, 2009.
Read the The complete ReportAIRM is in the portfolios of John Keeley of Keeley Fund Management.
Air Methods Corporation provides air medical emergency transport services and systems throughout North America. The Air Medical Service Division offers their clients helicopters and airplanes equipped with medical interiors for flights from the scene of an accident or general hospital to a trauma center. The Products Division designs manufactures and installs aircraft medical interiors and other aerospace products. Air Methods Corp. has a market cap of $316.2 million; its shares were traded at around $26.14 with a P/E ratio of 18.5 and P/S ratio of 0.6. Air Methods Corp. had an annual average earning growth of 20.3% over the past 5 years.
Highlight of Business Operations:
Net flight revenue increased $2,541,000, or 2.2%, from $114,473,000 to $117,014,000 for the three months ended March 31, 2009, compared to 2008. Flight revenue is generated by both CBS and HBS operations and is recorded net of provisions for contractual discounts and uncompensated care.Depreciation and amortization expense increased $491,000, or 12.0% for the three months ended March 31, 2009, compared to 2008. The increase is primarily related to the purchase of our corporate headquarters building in October 2008 for $7.4 million and the purchase of fourteen aircraft for approximately $15.6 million subsequent to March 31, 2008.
Our working capital position as of March 31, 2009, was $103,733,000, compared to $115,962,000 at December 31, 2008. We had cash and cash equivalents of $9,053,000 at March 31, 2009, compared to $13,147,000 at December 31, 2008. Cash generated by operations was $15,682,000 in the first quarter of 2009, compared to $9,709,000 in the first quarter of 2008, reflecting the change in operating results described above.
Cash used by investing activities totaled $7,877,000 in 2009 compared to $1,176,000 in 2008. Significant equipment acquisitions in the first quarter of 2009 included the purchase of two aircraft for approximately $4.7 million. During the quarter, we sold two aircraft for total proceeds of $1.2 million. Equipment acquisitions in the first quarter of 2008 included the buyout of two CJ leased aircraft which were subsequently sold during the quarter for net proceeds of approximately $2.8 million. Both aircraft had been identified for disposition upon acquisition of CJ in October 2007. We also sold two other aircraft during the quarter for total proceeds of $1.5 million.
Financing activities used $11,899,000 in 2009 compared $1,157,000 in 2008. The primary use of cash in both 2009 and 2008 was regularly scheduled payments of long-term debt and capital lease obligations. In 2008 these payments were partially offset by draws against our line of credit. In 2009 we paid off a $3.9 million short-term note payable to an aircraft manufacturer for the delivery of an EC135 helicopter. We are exploring long-term refinancing options for this balance in the second quarter of 2009.
Market risk is the potential loss arising from adverse changes in market rates and prices, such as foreign currency exchange and interest rates. All of our product sales and related receivables are payable in U.S. dollars. We are subject to interest rate risk on our debt obligations and notes receivable, some of which have fixed interest rates, except $13,803,000 outstanding against the line of credit and $42,860,000 in notes payable. Based on the amounts outstanding at March 31, 2009, the annual impact of a change of 100 basis points in interest rates would be approximately $567,000. Interest rates on these instruments approximate current market rates as of March 31, 2009.
Read the The complete ReportAIRM is in the portfolios of John Keeley of Keeley Fund Management.
