Air Methods to Acquire Tri-State Care Flight
November 05 2015 - 9:00AM
Air Methods Corporation (NASDAQ:AIRM), the global leader in air
medical transportation, today announced that it has entered into a
definitive agreement to acquire Tri-State Care Flight ("Tri-State")
for $222.5 million. Tri-State generated net revenue of $81.5
million for the fiscal year ended Dec. 31, 2014.
The transaction, which was unanimously approved by Air Methods'
Board of Directors, is expected to be immediately accretive to Air
Methods' earnings per share by greater than $0.20 in year one and
by greater than $0.30 in year two. Upon closing, Tri-State
will become a wholly-owned subsidiary of Air Methods.
"We are very excited about the acquisition of Tri-State," said
Aaron Todd, chief executive officer of Air Methods. "It represents
an opportunity to integrate best practices and further extend Air
Methods' commitment to quality, patient outcomes and safety. We
look forward to welcoming Tri-State to the Air Methods team."
Founded in 2002, Tri-State is a critical care transport provider
servicing Arizona, New Mexico, Nevada, and Colorado. Tri-State's
primary mission is to rapidly transport critically ill and injured
patients for health care facilities and emergency medical services
(EMS) agencies while providing the highest level of care
available.
Dr. Blake Stamper, founder and managing member of Tri-State,
said, "As a global leader in air medical transport services, Air
Methods shares our commitment to superior customer service and the
best clinical outcomes for patients in need. By combining
with Air Methods, we will be able to serve even more patients
across our footprint. We are confident that this will be a
seamless transition for our employees, patients and other
stakeholders."
Air Methods expects to finance the acquisition through its
credit facility, which was recently amended in August to provide
for additional borrowing capacity. The acquisition is subject to
customary closing and regulatory conditions. The transaction is
expected to close in 30 to 60 days.
The Company will discuss this transaction during its third
quarter earnings conference call, which is scheduled today at 4:30
p.m. Eastern. Interested parties can access the call by dialing
(855) 601-0049 (domestic) or (720) 398-0100 (international) or by
accessing the web cast at www.airmethods.com. A replay of the call
will be available at (855) 859-2056 (domestic) or (404) 537-3406
(international), access number 54925007, for 3 days following the
call and the web cast can be accessed at www.airmethods.com for 30
days. Concurrently, the Company will post a financial supplement
that contains final operating statistics on its website,
www.airmethods.com.
Air Methods Corporation (www.airmethods.com) is the global
leader in air medical transportation. The Air Medical Services
Division is the largest provider of air medical transport services
in the United States. The United Rotorcraft Division specializes in
the design and manufacture of aeromedical and aerospace technology.
The Tourism Division is comprised of Sundance Helicopters, Inc. and
Blue Hawaiian Helicopters, which provides helicopter tours and
charter flights in the Las Vegas/Grand Canyon region and Hawaii,
respectively. Air Methods' fleet of owned, leased or maintained
aircraft features over 450 helicopters and fixed wing aircraft.
Forward Looking Statements: Forward-looking
statements in this news release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Statements in this press release that are "forward-looking
statements", including statements we make with regard to the (i)
anticipated closing date of the Tri-State transaction, (ii)
financing of the Tri-State transaction; and (iii) expected earnings
per share accretion to be realized upon the consummation of the
Tri-State transaction. Such statements are based on current
expectations and assumptions that are subject to risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors, including but not
limited to, our ability to successfully integrate Tri-State's
operations, closing of the Tri-State transaction may not occur or
may be delayed; expected synergies and other financial benefits of
the Tri-State transaction may not be realized; litigation related
to the Tri-State transaction or limitation or restrictions imposed
by regulatory authorities may delay or negatively impact the
transaction; assumptions of undisclosed liabilities in the
Tri-State transaction; attempts to retain key personnel and
customers from Tri-State may not succeed, the size, structure and
growth of the Company's air medical services, United Rotorcraft
Division and Tourism Division; the collection rates for patient
transports; the continuation and/or renewal of air medical service
contracts; weather conditions across the U.S.; development and
changes in laws and regulations, including, without limitation, the
impact of the Patient Protection and Affordable Care Act; increased
regulation of the health care and aviation industry through
legislative action and revised rules and standards; and other
matters set forth in the Company's filings with the SEC. The
Company is under no obligation (and expressly disclaims any
obligation) to update or alter its forward-looking statements,
whether as a result of new information, future events or
otherwise.
Please contact Christina Brodsly at (303) 256-4122 to
be included on the Company's e-mail distribution list.
CONTACT: Trent J. Carman, Chief Financial Officer,
(303) 792-7591
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