-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OH/HTl7DG3Obx+yGfZrzE+6sW6oKlLpMNy2UWRoIWU4m5RzDi7AlodsRgzefBD+A Z3NhGq+JNdKea9dKy+WJPA== 0001015402-04-003987.txt : 20040923 0001015402-04-003987.hdr.sgml : 20040923 20040923101236 ACCESSION NUMBER: 0001015402-04-003987 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040923 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20040923 DATE AS OF CHANGE: 20040923 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AIR METHODS CORP CENTRAL INDEX KEY: 0000816159 STANDARD INDUSTRIAL CLASSIFICATION: AIR TRANSPORTATION, NONSCHEDULED [4522] IRS NUMBER: 840915893 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-16079 FILM NUMBER: 041042075 BUSINESS ADDRESS: STREET 1: 7301 S PEORIA STREET 2: P O BOX 4114 CITY: ENGLEWOOD STATE: CO ZIP: 80112 BUSINESS PHONE: 3037927400 MAIL ADDRESS: STREET 1: 7301 S PEORIA CITY: ENGLEWOOD STATE: CO ZIP: 80112 FORMER COMPANY: FORMER CONFORMED NAME: CELL TECHNOLOGY INC /DE/ DATE OF NAME CHANGE: 19911128 8-K 1 doc1.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) September 23, 2004 ------------------ AIR METHODS CORPORATION ----------------------- (Exact name of Registrant as Specified in Its Charter) Commission file number 0-16079 -------- Delaware 84-0915893 -------- ---------- (State or Other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification Number) 7301 South Peoria, Englewood, Colorado 80112 - ---------------------------------------- ----- (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code (303) 792-7400 -------------- Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report: N/A Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) SECTION 2 ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On September 23, 2004, Air Methods Corporation (the "Company") announced anticipated financial results for the quarter ended September 30, 2004. A copy of the press release is furnished as Exhibit 99.1 to this Current Report. The information contained in this report, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall information be deemed incorporated by reference in any registration statement, proxy statement, or other report filed under the Securities Act of 1933 or the Securities Exchange Act of 1934, unless the Company specifically incorporates that information into those documents by reference. 1 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. AIR METHODS CORPORATION Date: September 23, 2004 By \s\ Trent Carman --------------------------------- On behalf of the Company, and as Chief Financial Officer 2 EX-99.1 2 doc2.txt EXHIBIT 99.1 EXHIBIT 99.1 [GRAPHIC OMMITED] Air Methods - -------------------------------------------------------------------------------- The #1 Airborne Healthcare Company Air Methods Updates Third Quarter Outlook FIRST TWO MONTHS IMPACTED BY HIGHER THAN ANTICIPATED MAINTENANCE EXPENSES, BAD DEBT RESERVE INCREASES AND LOWER THAN ANTICIPATED FLIGHT VOLUME DENVER, CO, September 23, 2004 -- Air Methods Corporation (NASDAQ: AIRM), the world's largest air medical transportation company, provided an update of the financial results for its third quarter ending September 30, 2004. The Company announced that its third quarter results through August were impacted by a $1.3 million increase in bad debt reserves primarily associated with changes in its historical collection rates and payer mix estimates. On a positive note, days' sales outstanding have decreased from 133 days as of March 31, 2004 to 110 days as of August 31, 2004. Bad debt reserve rates applied to current period transports have increased only slightly as compared to June 2004 transports. The quarter-to-date period also reflects a 17.9% increase in maintenance expenses as compared with the prior year two-month period, despite only a 3.1% increase in flight volume. The percentage increase not attributed to flight volume reflects an increase of approximately $1,100,000 over the prior-year period. The increase in expense was primarily attributed to significant engine and transmission overhaul activity during the period, combined with annual inflationary adjustments in parts and overhaul costs. Additionally, community-based transports during the month of August were 229 below budget expectations. For community bases in operation greater than one year, 360 fewer requests for service were received as compared with the prior-year month, partially attributed to unfavorable weather patterns in the Eastern States. Community-based operating bases in service greater than one year in the Northeast and Southeast regions averaged almost 10 fewer requests for service per base during August than in the prior-year period. The aggregate unfavorable budget variance attributed to the lower flight volume was approximately $1,000,000 based on average net revenue after bad debt expense per transport recorded during the period. Although the Company has remained profitable during July and August, management anticipates the financial results for the quarter to be significantly below budgeted expectations. In light of these developments, management believes that it is highly improbable that the Company will achieve growth in its basic earnings per share for 2004. Aaron Todd, CEO of Air Methods, stated, "We are certainly disappointed with these recent developments. While fluctuations in maintenance expenses, bad debt expense, and flight volume are inherent within our business, it is unusual to have all three variables impact us negatively at the same time." "With the significant reduction in days' sales outstanding and relatively unchanged collection rates subsequent to June 30, 2004, we are hopeful that future adjustments will be less significant. We are also encouraged that community-based flight volumes for the first half of September have returned to budgeted expectations. Effective September 1, 2004, the Company has also adjusted its pricing structure to facilitate stronger reimbursement per transport. While these changes will not fully offset the factors discussed above, they should position the Company for better results moving forward," said Todd. Air Methods Corporation (www.airmethods.com) is a leader in emergency ------------------ aeromedical transportation, medical services and technology. The Air Medical Services Division is the largest provider of air medical transport services for hospitals. The LifeNet Division is the largest community-based provider of air medical services. The Products Division specializes in the design and manufacture of aeromedical and aerospace technology. The Company's fleet of owned, leased or maintained aircraft features over 180 helicopters and fixed wing aircraft. [GRAPHIC OMMITED] AIRM(TM) ------ NASDAQ LISTED FORWARD LOOKING STATEMENTS: This news release includes certain forward-looking statements, which are subject to various risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors, including but not limited to the size, structure and growth of the Company's air medical services and products markets; the collection rates for patient transports; the continuation and/or renewal of air medical service contracts; the acquisition of profitable Products Division contracts and other flight service operations; the successful expansion of the community-based operations; and other matters set forth in the Company's public filings. CONTACTS: Aaron D. Todd, Chief Executive Officer, (303) 792-7413 or Joe Dorame at The RCG Group at (480) 675-0400. Please contact Christine Clarke at (303) 792-7579 to be included on the Company's fax and/or mailing list. -----END PRIVACY-ENHANCED MESSAGE-----