Air Methods Corp. (AIRM, Financial) filed Quarterly Report for the period ended 2012-06-30.
Air Methods Corporation has a market cap of $1.41 billion; its shares were traded at around $114.5 with a P/E ratio of 24.8 and P/S ratio of 2.1. Air Methods Corporation had an annual average earning growth of 20.1% over the past 10 years. GuruFocus rated Air Methods Corporation the business predictability rank of 4.5-star.
HBS – Net flight revenue increased $4,415,000, or 9.1%, to $53,041,000 for the second quarter of 2012 and $9,906,000, or 10.5%, to $104,678,000 for the six months ended June 30, 2012, for the following reasons:
General and administrative (G&A) expenses increased $6,849,000, or 36.6%, and $13,417,000, or 36.3%, for the quarter and six months ended June 30, 2012, respectively, compared to 2011, reflecting additional headcount required to manage increased operations as a result of the Omniflight acquisition. G&A expenses include executive management, accounting and finance, billing and collections, information services, human resources, aviation management, pilot training, dispatch and communications, and CBS and HBS program administration. G&A expenses were 11.5% and 12.2% of revenue for the quarter and six months ended June 30, 2012, compared to 12.5% and 13.1% of revenue for the quarter and six months ended June 30, 2011. During the first quarter of 2012, we completed the consolidation of the Part 135 Air Carrier Certificate for Omniflight into the Air Methods certificate and completed the process of integrating other Omniflight overhead functions into existing departments. G&A expenses for the quarter and six months ended June 30, 2012, also included $4,065,000 and $5,208,000, respectively, for severance related to the elimination of the chief operating officer position and incentive compensation accruals related to our financial performance. Expense related to incentive compensation totaled approximately $507,000 and $1,547,000 in the quarter and six months ended June 30, 2011, respectively.
Income tax expense was $19,577,000 and $27,478,000 in the quarter and six months ended June 30, 2012, respectively, compared to $6,450,000 and $10,167,000 in the quarter and six months ended June 30, 2011, respectively. The effective tax rate for 2012 was approximately 38.5%, compared to 39.4% in 2011. The effective rate for 2012 decreased primarily because of a decrease in certain permanent book-tax differences. Changes in our effective tax rate are affected by the apportionment of revenue and income before taxes for the various jurisdictions in which we operate and by changing tax laws and regulations in those jurisdictions.
Our working capital position as of June 30, 2012, was $151,689,000, compared to $85,011,000 at December 31, 2011. Cash generated by operations was $73,475,000 in 2012, compared to $32,742,000 in 2011, reflecting the improvement in operations described above. In 2012, we were refunded approximately $9.1 million of aircraft deposits upon taking delivery of the aircraft and arranging permanent financing for the purchase. In the second quarter of 2012, we increased our accrual for current income taxes payable approximately $16.8 million based on estimated 2012 taxable income. Days sales outstanding for CBS operations, measured by comparing net revenue for the annualized previous 3-month period to outstanding open net accounts receivable, increased from 93 days at December 31, 2011, to 98 days at June 30, 2012. Days sales outstanding as of June 30, 2011, were also 98 days.
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Air Methods Corporation has a market cap of $1.41 billion; its shares were traded at around $114.5 with a P/E ratio of 24.8 and P/S ratio of 2.1. Air Methods Corporation had an annual average earning growth of 20.1% over the past 10 years. GuruFocus rated Air Methods Corporation the business predictability rank of 4.5-star.
Highlight of Business Operations:
CBS – Net flight revenue increased $68,159,000, or 73.9%, to $160,425,000 for the second quarter of 2012 and $120,291,000, or 70.5%, to $290,932,000 for the six months ended June 30, 2012, for the following reasons:HBS – Net flight revenue increased $4,415,000, or 9.1%, to $53,041,000 for the second quarter of 2012 and $9,906,000, or 10.5%, to $104,678,000 for the six months ended June 30, 2012, for the following reasons:
General and administrative (G&A) expenses increased $6,849,000, or 36.6%, and $13,417,000, or 36.3%, for the quarter and six months ended June 30, 2012, respectively, compared to 2011, reflecting additional headcount required to manage increased operations as a result of the Omniflight acquisition. G&A expenses include executive management, accounting and finance, billing and collections, information services, human resources, aviation management, pilot training, dispatch and communications, and CBS and HBS program administration. G&A expenses were 11.5% and 12.2% of revenue for the quarter and six months ended June 30, 2012, compared to 12.5% and 13.1% of revenue for the quarter and six months ended June 30, 2011. During the first quarter of 2012, we completed the consolidation of the Part 135 Air Carrier Certificate for Omniflight into the Air Methods certificate and completed the process of integrating other Omniflight overhead functions into existing departments. G&A expenses for the quarter and six months ended June 30, 2012, also included $4,065,000 and $5,208,000, respectively, for severance related to the elimination of the chief operating officer position and incentive compensation accruals related to our financial performance. Expense related to incentive compensation totaled approximately $507,000 and $1,547,000 in the quarter and six months ended June 30, 2011, respectively.
Income tax expense was $19,577,000 and $27,478,000 in the quarter and six months ended June 30, 2012, respectively, compared to $6,450,000 and $10,167,000 in the quarter and six months ended June 30, 2011, respectively. The effective tax rate for 2012 was approximately 38.5%, compared to 39.4% in 2011. The effective rate for 2012 decreased primarily because of a decrease in certain permanent book-tax differences. Changes in our effective tax rate are affected by the apportionment of revenue and income before taxes for the various jurisdictions in which we operate and by changing tax laws and regulations in those jurisdictions.
Our working capital position as of June 30, 2012, was $151,689,000, compared to $85,011,000 at December 31, 2011. Cash generated by operations was $73,475,000 in 2012, compared to $32,742,000 in 2011, reflecting the improvement in operations described above. In 2012, we were refunded approximately $9.1 million of aircraft deposits upon taking delivery of the aircraft and arranging permanent financing for the purchase. In the second quarter of 2012, we increased our accrual for current income taxes payable approximately $16.8 million based on estimated 2012 taxable income. Days sales outstanding for CBS operations, measured by comparing net revenue for the annualized previous 3-month period to outstanding open net accounts receivable, increased from 93 days at December 31, 2011, to 98 days at June 30, 2012. Days sales outstanding as of June 30, 2011, were also 98 days.
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