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| 8-K - FORM 8-K - RURAL/METRO CORP /DE/ | d8k.htm |
 Annual Meeting of Stockholders
December 8, 2010
EXHIBIT 99.1 |
 2
Annual
Meeting
of
Stockholders –
12/8/10
Forward-Looking Statements
Nothing contained in this presentation is, or should be relied upon as, a
promise or representation as to the future. Any projections contained
herein or otherwise made available are based on management’s analysis
of information available at the time this presentation was prepared
and on
assumptions and perspectives that may be unique to Rural/Metro
management, which may or may not prove to be correct. There can
be no
representation, warranty or other assurance as to the accuracy or
completeness of such projections or that any such projections will be
realized. Recipients of this presentation should conduct their own
investigation and analysis of the business, data and property described.
|
 3
Annual
Meeting
of
Stockholders –
12/8/10
Management Introduction
Michael DiMino, President & CEO
•
Mr.
DiMino
was
named
President
&
Chief
Executive
Officer
in
June
2010.
•
From 2001 to 2005, Mr. DiMino was President, Chief Executive Officer and Director
of LESCO, Inc. (NASDAQ: LSCO), a $585 million public company that was the
nation’s largest distributor of landscape and lawn care products to
lawn care professionals (now an operating company of John Deere).
•
Mr. DiMino received his Bachelor of Arts, Liberal Arts, Economics Major, from
Marquette University.
Bryan Gibson, Executive Vice President & COO
•
Mr. Gibson was named Executive Vice President & Chief Operating Officer in
June 2010. •
Mr. Gibson joined the Company in 1997 as Director of Business Development for the
Southern region prior to his appointments in 2001 as Division General
Manager and in 2005 as President of the South segment.
•
Mr. Gibson founded Priority EMS, a 911 and non-emergency ambulance service in
Northern Mississippi
and
Western
Tennessee
that
became
the
largest
private
ambulance
service
in
the
Mid-South and was acquired in 1997 by Rural/Metro Corporation.
Kristi
Ponczak, Senior Vice President & CFO
•
Mrs. Ponczak has served as Senior Vice President, Chief Financial Officer,
Treasurer and Secretary since 2006.
•
She
joined
Rural/Metro
in
1998
as
Director
of
Financial
Planning
until
2004
when
she
was
promoted to Vice President and Treasurer.
•
Mrs.
Ponczak
is
a
certified
public
accountant
and
has
a
Bachelor
of
Science
degree
in
Accounting from Arizona State University. |
 4
Annual
Meeting
of
Stockholders –
12/8/10
Management Introduction
Christopher Kevane, Senior Vice President & General Counsel
•
Mr. Kevane was promoted to Senior Vice President and General Counsel in March
2010. Previously he served as Managing Director and General Council
since 2006. •
Prior to joining Rural/Metro, Mr. Kevane was an attorney with the international
law firm of Squire, Sanders and Dempsey L.L.P.
•
He holds a Juris
Doctor from Arizona State University’s Sandra Day O’Connor College of
Law and a Bachelor of Science in Finance from ASU’s W.P. Carey School
of Business. Jeffrey Perry, Senior Vice President & Chief Information
Officer •
Mr.
Perry
was
promoted
to
Senior
Vice
President
and
Chief
Information
Officer
in
Jule
2010.
Prior to that, he served as Chief Information Officer since 2007.
•
From
2005-2007,
Mr.
Perry
was
Vice
President/Chief
Information
Officer
for
Giant
Industries.
•
Mr. Perry holds a Bachelor of Science in Organizational Management from Colorado
Christian University and a Masters Degree in Information Technology from
American Intercontinental University.
Maureen Thompson, Vice President of Human Resources
•
Ms. Thompson joined Rural/Metro in July 2010 as Vice President of Human Resources
to lead strategic and corporate human resources throughout the
enterprise. •
Prior to joining Rural/Metro, Ms. Thompson was Retail HR Strategic Business
Partner for The Goodyear Tire and Rubber Company.
•
Ms. Thompson holds a Bachelor of Arts in Business Administration/Marketing from
Michigan State University. |
 5
Annual
Meeting
of
Stockholders –
12/8/10
Company Overview
Since 1948, grown into leading national provider of ground ambulance and
private fire protection services.
Serving more than 400 communities in 20 states.
8,150 employees and 1,800 vehicles
Since 2008, annual net revenue has increased at a compounded annual growth
rate of 4%.
From $482 million in ‘08 to $540.4 million at 9/30/10 (LTM)
Since
2008,
annual
adjusted
EBITDA
has
increased
at
a
compounded
annual
growth rate of 14.2%.
Fiscal 2011 EBITDA guidance is $74.0 million to $76.0 million.
Represents 45% increase over the last 3 years.
Fiscal 2011 capital expenditures expected to be $18M-$20M.
|
 6
Annual
Meeting
of
Stockholders –
12/8/10
Investor Highlights
Multi-year, overlapping contracts and strong retention rates.
Capacity to increase utilization and drive margin expansion.
Organic & strategic growth opportunities due to highly fragmented
market. Commitment to technology to standardize processes and improve
operating efficiencies.
Strong EBITDA and cash-flow generation.
Population of Americans 65+ projected to increase 5x faster than
younger population in next 10 years.
Nearly 40M seniors in U.S.; by 2030, number is expected to double
as Boomers reach age 65.
43%
of
Rural/Metro’s
patients
are
age
65+
--
trending
upward.
Strong Business Model
Demographics Support
Demand for Services
Customer Acceptance
Outsourced ambulance services provide viable and economical
option to municipal and hospital-based EMS systems.
Increased demand for non-emergency ambulance services.
Trend: Hospital CEOs choosing to outsource.
Reimbursement
Environment
Favorable impact related to healthcare reform, as more Americans
have access to healthcare insurance.
All payers are a “wait and see”on specific impact and administration
of healthcare dollars under federal reform programs.
Continuing to request commercial rate increases to meet rising
costs of providing services. |
 U.S.
Ambulance Spending Private
Provider
Market Share
$14.0 Billion –
All Transports
$4.8 Billion –
Private Sector Transports
Sources: U.S. Census Bureau; Coalition of Advanced Emergency Medical Systems;
Centers for Medicare and Medicaid Services; American Ambulance Association;
Journal of Emergency Medical Services 200 City Survey. Partnerships With
Municipal Departments & Hospital-Based Services Provide Market
Expansion Opportunities 54%
34%
5%
3%
4%
Gov't.
Private
Hospital
Pub. Utility
Other
21%
10%
69%
AMR
Rural/Metro
Other
7
Annual
Meeting
of
Stockholders –
12/8/10 |
 8
Annual
Meeting
of
Stockholders –
12/8/10
Ambulance Utilization by Age
6%
10%
12%
19%
36%
41%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
<15 Years
15-24 Years
25-44 Years
45-64 Years
>65 Years
>75 Years
Source: GAO
More than 43% of R/M Patients are Over 65 |
 9
Annual
Meeting
of
Stockholders –
12/8/10
Rural/Metro Strategic Model
Best-in-Class
Operations
Superior
Service
&
Infrastructure
–
Standardization
of
key
systems,
including
billing, purchasing and contract compliance.
Advanced
Technology
–
Dispatch,
electronic
patient
care
reporting
(ePCR)
platform and proprietary billing system.
Best
People
–
Highly
experienced
executive
and
operational
management
team, along with
finest
paramedics,
EMTs
and
fire
professionals. |
 10
Annual
Meeting
of
Stockholders –
12/8/10
Rural/Metro Operating Zones |
 11
Annual
Meeting
of
Stockholders –
12/8/10
Organic & Strategic Growth Tactics
911 RFPs
Identify 911 emergency contracts with municipalities that meet
our profit guidelines.
Seek opportunities in new and existing markets
Complete detailed financial evaluation prior to bid response.
General Transport
Facility-based non-emergency transports that do not require an
RFP.
Opportunities for growth in contiguous and new geographies
initiated as a result of favorable market data.
Acquisitions
Disciplined approach to identifying, selecting and purchasing
highly accretive, existing ambulance operating companies.
Evaluate transformative new lines of business, including fire
protection, home health services, etc. |
 Growth Opportunities/ Revenue Pipeline
$200 M
12
Annual
Meeting
of
Stockholders –
12/8/10
Active
Acquisitions
$89 M
Target
Acquisitions
$410 M
Startups
$66 M
RFP’s
$126 M |
 13
Annual
Meeting
of
Stockholders –
12/8/10
Proprietary Billing & Process Technology
Computer-Aided Dispatch
System:
Electronic, real-time
dispatching to optimize contractual
response time performance
Paperless, electronic patient record.
Artificial intelligence prompts
paramedic based on medical
protocols to accurately document
medical necessity.
Ensures higher rate of
reimbursement
Accuracy, completeness, proof of medical
necessity.
Translates into: Reduced uncompensated
care, decreased DSO.
Core operating strength
Automated Vehicle Location
(AVL):
Knowing vehicle locations
creates dispatching efficiencies.
Electronic Patient Care
Report System (ePCR)
Proprietary Billing System
DISPATCH
& LOGISTICS
MEDICAL NECESSITY |
 14
Annual
Meeting
of
Stockholders –
12/8/10
Debt Structure
Total Leverage
6.7x
4.7x
3.9x
3.6x
5.3x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
2007
2008
2009
2010
Est. FY '11
* Based on FY ’11 Guidance
*
Company remains
focused on deleveraging
through debt repayment
and EBITDA creation.
Description
Term
Balance
Term Loan
6 yr through 2016
LIBOR +
4.25%
(1.75% LIBOR floor
)
$270M
Revolver
5 yr through 2015
$85M Undrawn
*Letter of Credit Sub-Line
$60M |