Air Methods Corporation (AIRM, Financial) is the global leader in air medical transportation. The Air Medical Services Division is the largest provider of air medical transport services in the United States. Currently, AIRM has more than 300 bases of operations that serve 48 states. Over the years, they have fortified market presence through a variety of acquisitions.
The Tourism Division is comprised of Sundance Helicopters, Inc. and Blue Hawaiian Helicopters, which provide helicopter tours and charter flights in the Las Vegas/Grand Canyon region and Hawaii, respectively. Air Methods’ fleet of owned, leased or maintained aircraft features over 450 helicopters and fixed wing aircraft.
2014 Results
Revenue
Full Year: Revenue for the year 2014 increased by 14% to $1,004.8 million compared to $879.2 million from the previous year.
Continuing Operations
Income from continuing operations increased by 57% to $98.8 million, or $2.56 per diluted share, in the current year from $62.9 million, or $1.55 per diluted share, in the prior year.
Fourth Quarter Revenue
Fourth quarter revenue increased by 12% and was $249.2 million as compared with $222.4 million during the prior-year period.
Fourth Quarter Revenue From Continue Operations
Fourth quarter revenue from continuing operations increased 72% to $23.4 million, or $0.59 per diluted share, compared to $13.7 million, or $0.29 per diluted share, in the prior-year period.
Revenue from United Rotorcraft Division
Revenue from United Rotorcraft Division, excluding revenue generated from internal projects, decreased to $3.4 million from $9.3 million in the prior-year quarter, a 63% decrease. Excluding internal projects, the division generated a net loss of $2.7 million in the current-year quarter compared to a net loss of $1.0 million in the prior-year quarter.
Maintenance Expense
Maintenance expenses for the fourth quarter decreased by 10%, or $2.5 million from the fourth quarter of 2013.
Fuel Costs
Fuel costs per flight hour decreased by 14% during the current year quarter.
Flight Volume
Flight volume, including volume associated with hospital contracts, decreased by 2%.
Miscellaneous
Total community-based transports during January 2015 were mostly unchanged at 4,534 compared with 4,542 during January 2014. Same-Base Transports for January decreased 335 transports, or 8%, while weather cancellations for these same bases increased by 365 transports. Preliminary net revenue per patient transport during January 2015 increased 15% to $12,740 compared with $11,074 during January 2014. The company also announced that community-based transports for February to date reflect a 13% increase, due in part to reduction in weather cancellations month to date.
Recent News
United Rotorcraft, an Air Methods Division, announced it received an order to configure two Bell 429 helicopters with custom Emergency Medical Services (EMS) interior for the Carolina Air Care program. Both aircraft are scheduled to be completed at United Rotorcraft’s facility in Englewood, Colo. Additionally, United Rotorcraft’s EMS interior includes a newly designed next generation machined aluminum floor that features a highly configurable three-seat cabin configuration, dual patient transport capabilities and storage compartments.
It it entered into a partnership with Vanderbilt University to acquire certain assets utilized in connection with the Vanderbilt LifeFlight Program, including medical equipment and three Airbus Helicopters EC-145 aircraft, as well as a 10-year agreement restructuring the program under Air Methods’ Alternative Delivery Service Model. Under the Alternative Delivery Service Model, Air Methods will provide aviation, fuel, maintenance, aircraft, dispatch, billing and EMS licensure. Vanderbilt will continue to provide all medical staffing, patient care and clinical services for Vanderbilt LifeFlight. The program will continue to operate under the Vanderbilt LifeFlight branding.
(Recent News portion has been extracted from the company’s website)
To End
AIRM has remained a leading performer in this industry. With its current momentum it is expected to grow in the near future. Growth in the demand for its services provided an impetus to this company. Declining oil prices also contributed to this growth. Experts believe that the EPS may grow by 14% by 2016.
It has built its reputation on a commitment to quality patient care and safety in aviation operations. It reported solid fourth quarter results and is an impressive growth stock. The company, according to me is on a growing spree and has a lot of upside to offer. AIRM will continue to deliver returns to its shareholders and I recommend this company to the investors. It may create shareholder wealth.
(Source: Company’s Website)
