Air Methods Corp. (AIRM), a provider of air medical emergency transport services, reported a loss for the first quarter on lower revenues. Loss per share for the quarter was wider than analysts' expectations and revenue missed their estimates. The company's shares declined more than 3 percent in extended trades.
In mid-April, Air Methods said it expects to post a loss in the first quarter, citing fewer transportation and increased number of cancellations due to weather.
Aaron Todd, CEO of Air Methods said, "As previously disclosed, we believe a greater severity in weather and weaker payer mix had a significant influence on our first quarter results. In addition, the lower flight volumes did not translate into lower maintenance expense, as there is often a delay in the expense benefit associated with decreased flight activity. Once weather moderates during the spring and summer months, we will be better able to isolate whether weak demand and payer mix were solely weather-related or reflect other factors."
Air Medical Services revenue declined 10 percent to $164.4 million, while United Rotorcraft Division's external revenue decreased 39 percent to $4.4 million.
Community-based patient transports for the quarter declined 7 percent to 11,845. Patients transported for community bases in operation greater than one year, or same-base transports, decreased by 9 percent, or 1,081 transports. Weather cancellations for these same bases increased by 427 transports compared with the prior-year quarter.
Requests for community-based service decreased 6 percent for bases open greater than one year. Net revenue per community-based transport decreased 10 percent to $9,098 due to deterioration in payer mix, partially offset by price increases.
Denver, Colorado-based Air Method's first-quarter net loss was $5.69 million or $0.15 per share, compared to net income of $12.47 million or $0.32 per share in the prior-year period. On average, analysts polled by Thomson Reuters expected the company to report loss of $0.07 per share for the quarter. Analysts' estimates typically exclude special items.
The latest quarter includes the results of operations for Sundance Helicopters Inc., a Grand Canyon tour operator that was acquired by Air Methods in December 2012.
Total revenue for the quarter declined 6 percent to $179.23 million from $190.81 million in the year-ago quarter. Analysts had a consensus revenue estimate of $187.53 million for the quarter.
Air Methods also provided an update on preliminary April 2013 flight volume. Total community-based transports for the month decreased 7 percent from the year-ago period to 4,417. Same-base transports decreased by 435 transports, or 9 percent, as compared with April 2012. Weather cancellations during April for these same bases decreased by 8 compared with the prior-year month.
AIRM closed Thursday's regular trading session at $36.86, down $0.85 or 2.25 percent on a volume of 481,200 shares. In after-hours, the stock further declined $1.36 or 3.69 percent to $35.50.
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