Air Methods Shares Down 6% As Q3 Results Miss Estimates

(RTTNews) - Shares of Air Methods Corp. (AIRM) lost nearly six percent in extended trading on Thursday after the air medical transportation provider reported results for the third quarter that missed analysts' expectations.

However, the company reported a profit for the quarter compared to a loss last year, reflecting strong double-digit revenue growth amid higher net revenue per patient transport.

"As anticipated, our first quarter results reflect a return to more normalized levels as weather was less severe and seasonality variations in payer mix between summer and winter months less extreme. We are also pleased that our tourism operations since the acquisition of Blue Hawaiian continue to show accretive results in line with expectations," CEO Aaron Todd said in a statement.

The Englewood, Colorado-based air medical emergency transport services and systems provider reported net income of $10.89 million or $0.28 per share for the third quarter, compared to a net loss $5.69 million or $0.15 per share in the prior-year quarter.

On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.32 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter increased 24 percent to $223.14 million from $179.23 in the same quarter last year, but missed five Wall Street analysts' consensus estimate of $225.03 million by a whisker.

Air Medical Services revenue increased 16 percent to $191.0 million, tourism revenue grew to $24.3 million from $10.4 million, and United Rotorcraft division's external revenue surged 77 percent to $7.8 million from the prior-year quarter.

Community-based patient transports for the quarter increased 9 percent to 12,941, with same-base transports growing 7 percent or 780 transports, while weather cancellations for these same bases decreased by 443 transports.

Net revenue per patient transport increased 20 percent to $10,928 from $9,098 in the prior-year quarter.

Maintenance expense, excluding tourism operations, decreased 16 percent from last year, as flight volume declined 5 percent.

Air Methods also provided an update on preliminary April 2014 flight volume. Total community-based transports for the month increased 3 percent from last year to 4,568. Same-base transports and weather cancellations for these same bases were relatively unchanged with last year.

AIRM closed Thursday's regular trading session at $53.12, down $1.51 or 2.76% on a volume of 0.75 million shares. The stock lost a further $3.07 or 5.78% in after-hours trading.