Air Methods (AIRM) to Restate Certain Financials; FY10, FY11 To-Date EPS Lowered
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Price: $42.95 --0%
Financial Fact:
Cost of medical interiors and products sold: 4.75M
Today's EPS Names:
SQZB, RENO, LUNA, More
Financial Fact:
Cost of medical interiors and products sold: 4.75M
Today's EPS Names:
SQZB, RENO, LUNA, More
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Air Methods Corporation (Nasdaq: AIRM) announced today that the Company will restate its financial results after receiving a response from the U.S. Securities and Exchange Commission (SEC). The SEC responded to the Company's previous request for guidance concerning the appropriate GAAP interpretation of the maximum amount that the Company could be required to pay as described in ASC 840-10-25-14, in the event of a non-performance-related default. As a result of the restatement, most of the Company's aircraft leases previously classified as operating leases will now be classified as capital leases in the Company's consolidated financial statements. The periods covered by the restatement are the year ended December 31, 2010 and the quarters ended March 31, 2011; June 30, 2011 and September 30, 2011. The Company expects to file the restated financial statements before the end of December 2011 or as soon as practicable thereafter.
Based on the Company's preliminary calculations, the Company expects the earnings per share for fiscal year 2010 and the nine-month period ended September 30, 2011 to decrease from $3.50 to approximately $3.37 and $2.70 to approximately $2.66, respectively. Earnings before interest, taxes, depreciation and amortization (EBITDA) for fiscal year 2010 and the nine-month period ended September 30, 2011 is expected to increase by $48 million and $36 million, respectively, while capital lease obligations as of September 30, 2011 are expected to increase by approximately $263 million. KPMG LLP, the Company's independent registered public accounting firm, and management are still in the process of reviewing these adjustments and therefore these amounts are subject to change.
Based on the Company's preliminary calculations, the Company expects the earnings per share for fiscal year 2010 and the nine-month period ended September 30, 2011 to decrease from $3.50 to approximately $3.37 and $2.70 to approximately $2.66, respectively. Earnings before interest, taxes, depreciation and amortization (EBITDA) for fiscal year 2010 and the nine-month period ended September 30, 2011 is expected to increase by $48 million and $36 million, respectively, while capital lease obligations as of September 30, 2011 are expected to increase by approximately $263 million. KPMG LLP, the Company's independent registered public accounting firm, and management are still in the process of reviewing these adjustments and therefore these amounts are subject to change.
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