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Air Methods Corp. Message Board

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  • PATGAVIN1 PATGAVIN1 Mar 21, 2005 4:21 PM Flag

    missed

    Elliot,

    The end result is Aron cost us 3.4 million + higher interest by making a mistake. He should have borrowed against the house with cheap money as long as he planned to live in the house. This would be like leaving your money in a safe instead of in a CD. (safer)

    Do you expect the 15 to 20 million to be added to the bottom line this year?

    Thanks,
    Pat

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    • Pat,

      I disagree with your characterization of the unsecured loan being a mistake. The issue is one of risk. If the company had used its secured credit, it would have been in a much weaker position if there were business reverses. Aaron Todd took the less risky path. He wanted to acquire Rocky Mountain Helicopters but not bet the company that the merger would work out.

      I believe that $15 to 20 million will be added to the top line. There will be higher expenses for salaries, fuel, and taxes (and probably some other things that do not immediately come to mind.) The bottom line contribution could be 1/2 that amount. That could approach $1 per share earnings. I am not predicting that high, but I do believe it is possible.

      Aaron could not project anything like those numbers given the disappointments of the last two years. But if the numbers for q1 and q2 show the possibility, he may issue guidance later in the year.

      BTW I sold some October 7 1/2 puts--I am willing to be they will expire worthless.

 
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