Air Methods Shares Surge 15% As Q3 Results Top Estimates

(RTTNews) - Shares of Air Methods Corp. (AIRM) surged nearly 15 percent in extended trading on Thursday after the air medical transportation provider reported results for the third quarter that topped analysts' expectations. The company also reported a profit for the quarter that increased from last year, reflecting double-digit revenue growth amid higher net revenue per patient transport.

"Our third quarter reflects a return to growth in earnings fueled by strong growth in net revenue per patient transport and more moderate maintenance expenditures as anticipated," CEO Aaron Todd said in a statement.

The Englewood, Colorado-based air medical emergency transport services and systems provider reported net income of $35.61 million or $0.91 per share for the third quarter, higher than $27.84 million or $0.71 per share in the prior-year quarter.

On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.84 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter increased 14 percent to $252.39 million from $221.29 in the same quarter last year, and topped six Wall Street analysts' consensus estimate of $243.38 million.

Results for the latest quarter include the operations associated with Sundance Helicopters Inc., a Grand Canyon tour operator that was acquired by Air Methods in December 2012. Sundance generated segment net income of $3.8 million on revenues of $16.0 million.

Air Medical Services revenue grew 8 percent to $230.8 million, while United rotorcraft division's external revenue decreased 33 percent to $5.6 million from last year.

Community-based patient transports for the quarter decreased 2 percent to 14,570, with same-base transports declining 6 percent as weather cancellations for these same bases increased and requests for community-based service for these same bases decreased 3 percent.

However, net revenue per patient transport increased 18 percent to $12,141 from $10,316 in the prior-year quarter.

Maintenance expense, excluding Sundance, decreased 7 percent from last year, as flight hours declined 8 percent.

Air Methods also provided an update on preliminary October 2013 flight volume. Total community-based transports for the month increased 1 percent from the year-ago period to 4,703. Same-base transports decreased by 116 transports, or 3 percent, while weather cancellations for these same bases increased by 46 transports.

"We are also very pleased that our investment in Sundance and the tourism sector continues to generate accretive financial results, in line with our initial expectations," Todd added.

AIRM closed Thursday's regular trading session at $44.02, down $0.10 or 0.23% on a volume of 0.57 million shares. However, the stock surged $6.43 or 14.61% in after-hours trading.