STOCK OF THE WEEK: AIR METHODS

Air Methods Corporation is a leader in air medical emergency transportation services and systems throughout the U.S. It transports persons requiring intensive medical care from either the scene of an accident or general care hospitals to highly skilled trauma centers. The company operates three (3) divisions:

* Air Medical Services (Hospital Based Air Medical Transport), based in Denver provides emergency air medical transportation services to hospitals located in 26 states and Puerto Rico. The division ownes, leases and maintains a fleet of approximately 180 helicopters and fixed wing aircraft.

* Mercy Air Services (Community Based Air Medical Transport) based in Los Angeles provides air medical transportation services to 17 states. Their services include operation and maintenance of the helicopters, fixed-wing aircraft, medical care, dispatch and communications, as well as medical billing and collection.

* Products Division, based in Denver, designs, manufactures, installs, and certifies aircraft medical interiors and other aerospace products for domestic and international customers. The division maintains a diverse portfolio products including the Black Hawk Multi-Mission Medevac System, and the Spinal Cord Injury Transport System (developed for the U.S. Air Force).

When third quarter results came in November 9th, Air Methods was flying high. The company earned $0.50 of Basic EPS and revenue increases 31% to $90.5 million from $68.9 million in the year-ago quarter. For the nine-month period, revenue increased 20% to $246.7 million, up from $204.8 million in the prior-year nine-month period.

Division Highlights:

Community-Based Operations revenue increased 42% to $61.8 million, and segment net income increased nearly two-fold to $7.7 million during the third quarter, as compared with $2.7 million in the prior-year quarter.

Hospital-Based Operations revenue increased by 12% to $26.3 million and segment net income increased over 2.4 times to $3.1 million during the third quarter as compared with $0.9 million in the prior-year quarter.

Products Division revenue, including revenue generated from internal projects, increased 7% to $3.9 million, while segment net income decreased by 37% to $0.8 million during the third quarter as compared with the prior-year quarter. Segment net income did not increase in proportion to revenue growth due to changes in product mix which reduced the overall margin percentage.

Aaron Todd, CEO, stated, "We are pleased that our third quarter financial results reflect a continuation of the strong performance experienced during the second quarter of this year. We are also happy to report that our fourth quarter has begun with healthy flight volume in October. Same-Base Transports for Community-Based Operations during the month were 7% or 165 transports higher than October 2004, while weather-related flight cancellations decreased by 33% or 285 transports over the prior-year month," said Todd.

The company was incorporated in 1982 and is headquartered in Denver, Colorado. They saw their 52 week high just a few days ago @ $14.69. We put it in our portfolio at $13.99. Their 52 week low was just six months prior @ $8.22. Air Methods trade on the NASDAQ under (AIRM).

Air Methods is seeing long-term contracts being renewed from 3-10 years. They are improving on their bottom line with a decrease in maintenance expense per flight hour combined with increased collection rates for patient transportation.

If Air Methods can continue to increase collection of transportation costs and improve billing processes could they make your portfolio a high flyer?

STOCK OF THE WEEK: AIR METHODS

Air Methods Corporation is a leader in air medical emergency transportation services and systems throughout the U.S. It transports persons requiring intensive medical care from either the scene of an accident or general care hospitals to highly skilled trauma centers. The company operates three (3) divisions:

* Air Medical Services (Hospital Based Air Medical Transport), based in Denver provides emergency air medical transportation services to hospitals located in 26 states and Puerto Rico. The division ownes, leases and maintains a fleet of approximately 180 helicopters and fixed wing aircraft.

* Mercy Air Services (Community Based Air Medical Transport) based in Los Angeles provides air medical transportation services to 17 states. Their services include operation and maintenance of the helicopters, fixed-wing aircraft, medical care, dispatch and communications, as well as medical billing and collection.

* Products Division, based in Denver, designs, manufactures, installs, and certifies aircraft medical interiors and other aerospace products for domestic and international customers. The division maintains a diverse portfolio products including the Black Hawk Multi-Mission Medevac System, and the Spinal Cord Injury Transport System (developed for the U.S. Air Force).

When third quarter results came in November 9th, Air Methods was flying high. The company earned $0.50 of Basic EPS and revenue increases 31% to $90.5 million from $68.9 million in the year-ago quarter. For the nine-month period, revenue increased 20% to $246.7 million, up from $204.8 million in the prior-year nine-month period.

Division Highlights:

Community-Based Operations revenue increased 42% to $61.8 million, and segment net income increased nearly two-fold to $7.7 million during the third quarter, as compared with $2.7 million in the prior-year quarter.

Hospital-Based Operations revenue increased by 12% to $26.3 million and segment net income increased over 2.4 times to $3.1 million during the third quarter as compared with $0.9 million in the prior-year quarter.

Products Division revenue, including revenue generated from internal projects, increased 7% to $3.9 million, while segment net income decreased by 37% to $0.8 million during the third quarter as compared with the prior-year quarter. Segment net income did not increase in proportion to revenue growth due to changes in product mix which reduced the overall margin percentage.

Aaron Todd, CEO, stated, "We are pleased that our third quarter financial results reflect a continuation of the strong performance experienced during the second quarter of this year. We are also happy to report that our fourth quarter has begun with healthy flight volume in October. Same-Base Transports for Community-Based Operations during the month were 7% or 165 transports higher than October 2004, while weather-related flight cancellations decreased by 33% or 285 transports over the prior-year month," said Todd.

The company was incorporated in 1982 and is headquartered in Denver, Colorado. They saw their 52 week high just a few days ago @ $14.69. We put it in our portfolio at $13.99. Their 52 week low was just six months prior @ $8.22. Air Methods trade on the NASDAQ under (AIRM).

Air Methods is seeing long-term contracts being renewed from 3-10 years. They are improving on their bottom line with a decrease in maintenance expense per flight hour combined with increased collection rates for patient transportation.

If Air Methods can continue to increase collection of transportation costs and improve billing processes could they make your portfolio a high flyer?

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