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Air Methods Reports 3Q2010 Results And 4Q2010 Update

Fully-Diluted Earnings Per-Share of $1.48 Reflects 48% Growth in Net Income

October 2010 Community-Based Transports Increase by 26%

DENVER, Nov. 4, 2010 (GLOBE NEWSWIRE) -- Air Methods Corporation (Nasdaq:AIRM) reported results for the quarter ended September 30, 2010. Revenue increased 11% to $153.9 million from $138.6 million in the year-ago quarter. For the nine-month period, revenue increased 5% to $411.6 million, up from $393.0 million in the prior-year nine-month period. For the quarter, net income increased 48% to $18.6 million, or $1.48 per diluted share, as compared with prior-year quarter net income of $12.6 million, or $1.01 per diluted share. Net income for the nine-month period increased 20% to $31.5 million, or $2.51 per diluted share, compared to $26.2 million, or $2.12 per diluted share, for the prior-year period.

Third Quarter Highlights

Community-Based Services: Revenue from Community-Based Services increased 18% to $96.1 million from $81.2 million, while segment net income increased 48% to $27.0 million during the third quarter, as compared with segment net income of $18.3 million in the prior-year quarter. The increase in revenue and related earnings is attributed to improved net revenue per community-based transport. Net revenue per community based transport increased 16% to $8,720, compared with $7,509 in the prior-year quarter. Total community-based patient transports increased slightly to 10,876 in the current-year quarter from 10,752 in the prior-year quarter. Community-based patient transports for bases open greater than one year (Same-Base Transports) decreased 5% or 487 transports, as compared with the prior-year quarter. Weather cancellations for these same-base locations decreased by 321 compared with the prior-year quarter.  Improvement in segment earnings was offset, partially, by increases in maintenance expenditures. Maintenance expense for the quarter increased by $3.9 million, reflecting a 31% increase in cost per flight hour. This increase was attributed to higher overall major overhauls or replacements of key components during the quarter as compared with the prior-year quarter.  

Hospital-Based Services: Revenue from Hospital-Based Services decreased by 2% to $50.6 million from $51.6 million, while segment net income decreased by 15% to $4.5 million in the current-year quarter from $5.3 million during the prior-year third quarter. The decrease in segment revenue is partially attributed to conversion of Hospital-Based Services to Community-Based Services. These conversions resulted in a net reduction to segment revenue of $0.8 million or approximately half of the decrease. The decrease in segment net income is primarily attributed to increased maintenance expenditures. Maintenance expense for the quarter increased by $1.0 million, reflecting an 11% increase in cost per flight hour. This increase in expense is attributed to the same factors discussed above within the Community-Based Services segment. 

Products Division: Revenue, excluding revenue generated from internal projects, increased to $7.3 million from $5.9 million in the prior-year quarter, a 24% increase. Segment net income, excluding internal projects, increased to $2.3 million from $1.8 million in the prior-year quarter.

The Company also provided an update on preliminary October 2010 flight volume. Total community-based transports during October 2010 were 3,862 compared with 3,065 during October 2009, reflecting a 26% increase. Same-Base Transports increased 599 transports or 20%, while weather cancellations for these same bases decreased by 867 transports. Requests for transport within our community bases open greater than one year increased by 211, or 3%. 

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