| Business Segment Information |
(14) Business Segment Information
The Company identifies operating segments based on management responsibility and the type of services or products offered. Effective September 1, 2012, the Company combined two of its operating segments, Community-Based Services (CBS) and Hospital-Based Services (HBS), into a single operating segment reporting to the President of Air Medical Services. The decision to combine CBS and HBS delivery models for air medical transportation services was made in order to improve efficiency and communication between regional management. In addition, with increasing conversion of HBS contracts into CBS operations and the development of alternative delivery models in partnering with hospitals to provide air medical transportation services, the lines between the two delivery models have become less distinct. CBS and HBS segment results for prior periods have been combined in the following table to reflect the new segment definition. Operating segments and their principal services or products are as follows:
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●
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Air Medical Services (AMS) - provides air medical transportation services to the general population as an independent service and to hospitals or other institutions under exclusive operating agreements. Services include aircraft operation and maintenance, medical care, dispatch and communications, and medical billing and collection.
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●
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Tourism – provides helicopter tours and charter flights. Segment originated with the acquisition of Sundance on December 31, 2012, as described more fully in Note 2.
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●
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United Rotorcraft (UR) Division - designs, manufactures, and installs aircraft medical interiors and other aerospace and medical transport products for domestic and international customers.
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The accounting policies of the operating segments are as described in Note 1. The Company evaluates the performance of its segments based on pretax income. Intersegment sales are reflected at market prices.
Summarized financial information for the Company’s operating segments is shown in the following table (amounts in thousands). Amounts in the “Corporate Activities” column represent corporate headquarters expenses and results of insignificant operations. The Company does not allocate assets between operating segments for internal reporting and performance evaluation purposes.
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AMS
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Tourism
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UR
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Corporate
Activities
|
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Intersegment
Eliminations
|
|
|
Consolidated
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenue
|
|
$ |
800,711 |
|
|
|
56,599 |
|
|
|
24,195 |
|
|
|
96 |
|
|
|
-- |
|
|
|
881,601 |
|
|
Intersegment revenue
|
|
|
-- |
|
|
|
-- |
|
|
|
9,588 |
|
|
|
-- |
|
|
|
(9,588 |
) |
|
|
-- |
|
|
Total revenue
|
|
|
800,711 |
|
|
|
56,599 |
|
|
|
33,783 |
|
|
|
96 |
|
|
|
(9,588 |
) |
|
|
881,601 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
(576,775 |
) |
|
|
(46,226 |
) |
|
|
(32,654 |
) |
|
|
(34,262 |
) |
|
|
8,652 |
|
|
|
(681,265 |
) |
|
Depreciation & amortization
|
|
|
(73,180 |
) |
|
|
(2,960 |
) |
|
|
(1,803 |
) |
|
|
(1,712 |
) |
|
|
-- |
|
|
|
(79,655 |
) |
|
Interest expense
|
|
|
(16,670 |
) |
|
|
(1,044 |
) |
|
|
-- |
|
|
|
(2,609 |
) |
|
|
-- |
|
|
|
(20,323 |
) |
|
Other, net
|
|
|
1,209 |
|
|
|
-- |
|
|
|
(2 |
) |
|
|
(71 |
) |
|
|
-- |
|
|
|
1,136 |
|
|
Income tax expense
|
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
(39,425 |
) |
|
|
-- |
|
|
|
(39,425 |
) |
|
Net income (loss)
|
|
|
135,295 |
|
|
|
6,369 |
|
|
|
(676 |
) |
|
|
(77,983 |
) |
|
|
(936 |
) |
|
|
62,069 |
|
|
Less net income (loss) attributable to non-controlling interests
|
|
|
(318 |
) |
|
|
48 |
|
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
(270 |
) |
|
Net income (loss) attributable to Air Methods Corporation and subsidiaries
|
|
$ |
135,613 |
|
|
|
6,321 |
|
|
|
(676 |
) |
|
|
(77,983 |
) |
|
|
(936 |
) |
|
|
62,339 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenue
|
|
$ |
822,023 |
|
|
|
-- |
|
|
|
28,365 |
|
|
|
424 |
|
|
|
-- |
|
|
|
850,812 |
|
|
Intersegment revenue
|
|
|
-- |
|
|
|
-- |
|
|
|
20,971 |
|
|
|
-- |
|
|
|
(20,971 |
) |
|
|
-- |
|
|
Total revenue
|
|
|
822,023 |
|
|
|
-- |
|
|
|
49,336 |
|
|
|
424 |
|
|
|
(20,971 |
) |
|
|
850,812 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
(543,410 |
) |
|
|
-- |
|
|
|
(38,272 |
) |
|
|
(32,462 |
) |
|
|
16,188 |
|
|
|
(597,956 |
) |
|
Depreciation & amortization
|
|
|
(79,683 |
) |
|
|
-- |
|
|
|
(1,385 |
) |
|
|
(1,456 |
) |
|
|
-- |
|
|
|
(82,524 |
) |
|
Interest expense
|
|
|
(20,138 |
) |
|
|
-- |
|
|
|
(1 |
) |
|
|
(512 |
) |
|
|
-- |
|
|
|
(20,651 |
) |
|
Other, net
|
|
|
3,122 |
|
|
|
-- |
|
|
|
-- |
|
|
|
141 |
|
|
|
-- |
|
|
|
3,263 |
|
|
Income tax expense
|
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
(59,792 |
) |
|
|
-- |
|
|
|
(59,792 |
) |
|
Net income (loss)
|
|
$ |
181,914 |
|
|
|
-- |
|
|
|
9,678 |
|
|
|
(93,657 |
) |
|
|
(4,783 |
) |
|
|
93,152 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External revenue
|
|
$ |
630,143 |
|
|
|
-- |
|
|
|
30,384 |
|
|
|
22 |
|
|
|
-- |
|
|
|
660,549 |
|
|
Intersegment revenue
|
|
|
-- |
|
|
|
-- |
|
|
|
27,047 |
|
|
|
-- |
|
|
|
(27,047 |
) |
|
|
-- |
|
|
Total revenue
|
|
|
630,143 |
|
|
|
-- |
|
|
|
57,431 |
|
|
|
22 |
|
|
|
(27,047 |
) |
|
|
660,549 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
(443,352 |
) |
|
|
-- |
|
|
|
(42,954 |
) |
|
|
(27,830 |
) |
|
|
19,937 |
|
|
|
(494,199 |
) |
|
Depreciation & amortization
|
|
|
(70,518 |
) |
|
|
-- |
|
|
|
(1,248 |
) |
|
|
(1,111 |
) |
|
|
-- |
|
|
|
(72,877 |
) |
|
Interest expense
|
|
|
(19,362 |
) |
|
|
-- |
|
|
|
(15 |
) |
|
|
(695 |
) |
|
|
-- |
|
|
|
(20,072 |
) |
|
Other, net
|
|
|
3,568 |
|
|
|
-- |
|
|
|
-- |
|
|
|
333 |
|
|
|
-- |
|
|
|
3,901 |
|
|
Income tax expense
|
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
(30,728 |
) |
|
|
-- |
|
|
|
(30,728 |
) |
|
Net income (loss)
|
|
$ |
100,479 |
|
|
|
-- |
|
|
|
13,214 |
|
|
|
(60,009 |
) |
|
|
(7,110 |
) |
|
|
46,574 |
|
|