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Profitability Affected by Weaker Flight Volumes and Slight Deterioration in Payer Mix
January 2014 Flight Volumes To-Date Reflect Strong Growth Over Prior Year
DENVER, Jan. 28, 2014 (GLOBE NEWSWIRE) -- Air Methods Corporation (Nasdaq:AIRM), the global leader in air medical transportation, provided an update on fourth quarter results and January 2014 flight volumes. Total community-based patient transports for the fourth quarter 2013 are estimated to be 12,881, a 3% decrease from the prior-year quarter. Patients transported for community bases in operation greater than one year decreased an estimated 789 transports, or 6%, while weather cancellations for these same bases increased by an estimated 84 transports compared with the prior-year quarter.
Preliminary net revenue per community-based transport for the fourth quarter 2013 was $11,686, as compared with $11,432 in the prior-year quarter, a 2% increase. The increase in net revenue per transport was affected by a decrease in privately insured patients from 36.0% to 34.5% of total patients transported, compared with the prior-year quarter.
Air Methods also announced that its fourth quarter will include $2.4 million in pre-tax charges associated with severance for certain terminated employees, reserves for pending legal matters, impairment/disposition losses on aircraft and certain intangible assets, and transaction costs associated with acquisition activities.
As a result of these factors, the Company expects to report net income of approximately $0.31 to $0.33 per share for the fourth quarter of 2013, compared with net income of $0.55 per share in the prior-year quarter. The Company stated that these preliminary results are subject to final year-end closing and audit procedures and are therefore subject to change.
The Company also announced that its January community-based patient transports are expected to exceed 4,450 transports based on volume to-date, a 12% increase over the prior-year month. The majority of this improvement is attributed to fewer weather cancellations to-date.