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8-K - FORM 8-K - RURAL/METRO CORP /DE/d8k.htm

Exhibit 99.1

LOGO

 

CONTACT:    

Liz Merritt, Rural/Metro Corporation

(480) 606-3337

Sharrifah Al-Salem, FD

(415) 293-4414

RURAL/METRO REPORTS FISCAL 2011 SECOND-QUARTER RESULTS

Reiterates Fiscal 2011 Adjusted EBITDA Guidance; Updates CapEx Guidance to

Include New Santa Clara County Contract Win

Highlights

   

Completion of $270.0 million debt refinancing; second-quarter and year-to-date (YTD) results for the periods ended December 31, 2010 include an $8.0 million pre-tax loss on debt extinguishment.

   

Quarterly net revenue increased 6.0% over prior year to $141.3 million; YTD net revenue increased 6.7% over prior year to $281.5 million.

   

Quarterly ambulance transport volume growth at 9.0%; YTD transport growth at 8.7%.

   

Quarterly adjusted EBITDA from continuing operations was $13.9 million and YTD adjusted EBITDA was $35.0 million, which included a $4.9 million increase in expenses related to historical insurance claims estimates.

   

Company reiterates fiscal 2011 guidance for adjusted EBITDA from continuing operations of $74.0-$76.0 million.

SCOTTSDALE, Ariz. (Feb. 9, 2011) – Rural/Metro Corporation (NASDAQ: RURL), a leading national provider of ambulance and private fire protection services, reported results today for its second fiscal quarter and six months ended December 31, 2010.

Michael P. DiMino, President and Chief Executive Officer, said, “Second-quarter activities reflect the continued strength of our growth initiatives and retention strategies as we effectively compete for market share. Our successes included a significant 911 contract win in Santa Clara County, California, the retention of key 911 and non-emergency contracts in central Florida, the acquisition of a new ambulance service in Colorado, and entry into new general transport markets.”

Mr. DiMino emphasized the benefits of the Company’s recent debt refinancing as it relates to growth. “We have created a capital structure that provides the flexibility to execute our growth plans, generate significant interest savings, and build long-term value for our shareholders,” he said.

Second-quarter and year-to-date results include increases in historical insurance claims estimates related to workers’ compensation, general and auto liability programs. “We initiated a comprehensive review of all processes and programs within the enterprise


and are taking the actions that we believe are prudent as we continue to grow the business,” Mr.DiMino said. “With regard to insurance, we remain vigilant in our efforts to manage all claims, further improve our risk, health and safety programs, and ultimately reduce accidents and employee injuries.”

Fiscal 2011 Guidance

The Company reiterated guidance for adjusted EBITDA from continuing operations for the fiscal year ending June 30, 2011 of $74.0-$76.0 million. Capital expenditure guidance was updated from $18.0-$20.0 million to $30.0-32.0 million for the fiscal year, which includes an initial $12.0 million in capital for the new Santa Clara County 911 contract that begins July 1, 2011.

Results of Operations for the Second Fiscal Quarter Ended December 31, 2010

For the quarter ended December 31, 2010, the Company generated net revenue of $141.3 million, an increase of 6.0% or $8.0 million, compared to net revenue of $133.3 million for the same period of the prior year. Ambulance services revenue was $123.3 million, an increase of 7.7% or $8.8 million, compared to $114.5 million for the same prior-year period. The increase included $2.8 million in same-service-area revenue and $6.0 million in new contract revenue. Same-service-area revenue growth was driven primarily by increased transport volume, as well as reductions in uncompensated care. Overall transport volume grew 9.0% in the second quarter, primarily due to a new emergency contract in DeKalb County, Georgia, and acquisitions in Kentucky and Colorado.

Fire and other services revenue for the quarter was $18.0 million, a decrease of 3.7%, or $0.7 million, compared to $18.7 million for the same prior-year period. The difference was primarily related to a decrease in fire service subscription revenue resulting from municipal annexation activity in Arizona.

Payroll and employee benefits expense for the quarter was $86.4 million, or 61.2% of net revenue, compared to $80.8 million, or 60.6% of net revenue, in the same period of the prior year. The year-over-year increase in expense was primarily related to growth in transport volume and $0.8 million related to executive relocation expenses, offset in part by a $0.7 million net decrease in expenses related to historical workers’ compensation claims estimates and a $0.6 million decrease in employee health insurance expenses.

Other operating expenses for the quarter totaled $32.6 million, or 23.1% of net revenue, compared to $30.8 million, or 23.1% of net revenue for the same prior-year period. The year-over-year increase in expense was driven primarily by $0.6 million in professional fees related to debt refinancing activities and $0.5 million in higher fuel expense related to increases in fuel prices and transport volume.

General and auto liability insurance expense for the quarter totaled $8.7 million, or 6.1% of net revenue, compared to $5.2 million, or 3.9% of net revenue for the same prior-year period. The difference was primarily due to a $3.9 million net increase in expenses related to historical claims estimates.

On November 24, 2010, the Company concluded a debt refinancing and achieved its goals to reduce interest costs, extend maturities and maximize flexibility to operate and grow the business. The current debt structure includes a $270.0 million term loan due 2016 and an $85.0 million revolving credit facility maturing in 2015. In connection with


the refinancing, the Company recorded a pre-tax loss on debt extinguishment of $8.0 million.

Including the loss on debt extinguishment, second-quarter net loss attributable to Rural/Metro was $3.8 million, or a loss per share of $0.15, compared to a net loss of $4.8 million and a loss per share of $0.19 for the second quarter of the prior year. Excluding the loss on debt extinguishment, net income attributable to Rural/Metro would have been $1.2 million, or diluted earnings per share (EPS) of $0.05.

Adjusted EBITDA from continuing operations attributable to Rural/Metro in the second fiscal quarter was $13.9 million, a decrease of $2.7 million when compared to adjusted EBITDA of $16.6 million for same period in fiscal 2010.

Results of Operations for the Six Months Ended December 31, 2010

For the six months ended December 31, 2010, the Company generated net revenue of $281.5 million, an increase of 6.7% or $17.7 million, compared to net revenue of $263.8 million for the same period of the prior year. Ambulance services revenue for the period was $245.7 million, an increase of 8.5% or $19.2 million, compared to $226.5 million in the prior year. The increase included $9.8 million in same-service-area revenue and $9.4 million in new contract revenue. Overall transport volume grew 8.7% in the first half of fiscal 2011, primarily due to the contract and acquisition activities discussed above.

Fire and other services revenue for the six-month period was $35.7 million, a decrease of 4.3% or $1.6 million, compared to $37.3 million for the same prior-year period. The difference was primarily related to the decrease in fire service subscription revenue described above.

Payroll and employee benefits expense for the six months was $171.3 million, or 60.8% of net revenue, compared to $161.9 million, or 61.4% of net revenue, in the same period of the prior year. The year-over-year increase in expense was primarily related to growth in transport volume and $1.0 million in executive relocation expenses. These expenses were offset in part by a $1.7 million decrease in employee health insurance expense and a $1.5 million net decrease in expenses related to historical workers’ compensation claims estimates.

Other operating expenses for the first six months of fiscal 2011 totaled $62.7 million, or 22.3% of net revenue, compared to $58.6 million, or 22.2% of net revenue for the same prior-year period. The year-over-year increase in expense was driven by $1.2 million in higher fuel expense related to increases in transport volume and fuel prices and $0.6 million in professional fees related to debt refinancing activities.

General and auto liability insurance expense for the six months was $12.3 million, or 4.4% of net revenue, compared to $8.6 million, or 3.3% of net revenue for the same prior-year period. The difference was primarily due to a $3.9 million net increase in expenses related to historical claims estimates.

Including the $8.0 million pre-tax loss on debt extinguishment, net income attributable to Rural/Metro for the six months was $1.6 million, or diluted EPS of $0.06, compared to a net loss of $1.9 million, or a loss per share of $0.07 for the same period of the prior year.


Excluding the loss on debt extinguishment, net income attributable to Rural/Metro for the six-month period would have been $6.6 million, or diluted EPS of $0.26.

Adjusted EBITDA from continuing operations attributable to Rural/Metro for the six months was $35.0 million, an increase of $0.6 million, compared to adjusted EBITDA of $34.4 million for the same period in fiscal 2010.

Adjusted EBITDA from continuing operations and net income and diluted EPS attributable to Rural/Metro excluding the loss on debt extinguishment are key indicators management uses to evaluate operating performance. While adjusted EBITDA from continuing operations and net income and diluted EPS attributable to Rural/Metro excluding the loss on debt extinguishment are not intended to replace presentations included in the Company’s consolidated financial statements under generally accepted accounting principles (GAAP) and should not be considered an alternative to operating performance or an alternative to cash flow as a measure of liquidity, the Company believes this measure is useful to investors in assessing its ability to meet future debt service, capital expenditure and working capital requirements. This calculation may differ in the method of calculation from similarly titled measures used by other companies. A reconciliation of adjusted EBITDA to income (loss) from continuing operations and discontinued operations for the three months and six months ended December 31, 2010 and 2009, as well as a reconciliation of net income and diluted EPS attributable to Rural/Metro excluding the loss on debt extinguishment to net loss attributable to Rural/Metro and diluted earnings per share for the three and six months ended December 31, 2010 and 2009, are included with this press release and the related current report on Form 8-K.

Quarterly Operating Statistics

The table below provides results for medical transports, Average Patient Charge (APC), and Days Sales Outstanding (DSO) for the five most recent quarters:

 

 

      Q2 ’10      Q3 ’10      Q4 ’10      Q1 ’11      Q2 ’11  
      (12/31/09)      (3/31/10)      (6/30/10)      (9/30/10)      (12/31/10)  

Medical Transports (1)

     271,396         277,276         280,574         291,152         295,873   

APC (2)

   $ 397       $ 394       $ 391       $ 397       $ 395   

DSO (3)

     46         44         43         42         43   

(1) Defined as emergency and non-emergency medical patient transports from continuing operations.

(2) Net medical transport APC is defined as gross ambulance transport revenue less provisions for contractual allowances applicable to Medicare, Medicaid and other third-party payers and uncompensated care divided by medical transports from continuing operations.

(3) DSO is calculated using the average accounts receivable balance on a rolling 13-month basis and net revenue on a rolling 12-month basis and has not been adjusted to eliminate discontinued operations.


Conference Call to Discuss Results

The Company will discuss results in a conference call today beginning at 11 a.m. Eastern. To join the Company’s conference call, dial 877-383-7417 (domestic) or 678-894-3972 (international). A taped replay will be available approximately two hours following the completion of the call through 11:59 p.m. Eastern on February 11, 2011. To access the replay, dial 800-642-1687 (domestic) or 706-645-9291 (international). The required pass code to access the replay is 17067574. An audio webcast also will be available at www.ruralmetro.com the day of the call and will remain on the Company’s website for 90 days thereafter.

About Rural/Metro

Rural/Metro Corporation provides emergency and non-emergency ambulance services and private fire protection services in 20 states and approximately 440 communities throughout the United States. For more information, visit the Company’s web site at www.ruralmetro.com.

Safe Harbor Provisions for Forward-Looking Statements

The foregoing reflects the Company’s views about its future financial condition, performance and other matters that constitute “forward-looking” statements as such term is defined by the federal securities laws. Many of these statements can be found by looking for words such as “believe,” “anticipate,” “expect,” “plan,” “intend,” “may,” “should,” “will likely result,” “continue,” “estimate,” “project,” “goals,” or similar words used herein in connection with any discussions of future operating or financial performance or business prospects. We may also make forward-looking statements in our financial reports filed with the Securities and Exchange Commission (SEC), investor calls and other investor communications. These forward-looking statements are subject to the safe harbor protection provided by federal securities laws. These forward-looking statements are subject to numerous risks, uncertainties and assumptions, including those relating to the Company’s future business prospects, changes in healthcare regulation, uncompensated care, working capital, accounts receivable collection, liquidity, cash flow, EBITDA, adjusted EBITDA, capital expenditures, insurance coverage and claim reserves, capital needs, key operating metrics, future growth plans, future operating results, and future compliance with covenants in our debt facilities or instruments. In addition, the Company may face risks and uncertainties related to other factors that are listed in its periodic reports filed under the Securities Exchange Act. Although the Company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, because the statements are subject to risks and uncertainties, the Company can give no assurance that its expectations will be attained or that actual developments and results will not materially differ from those expressed or implied by the forward-looking statements. Readers are cautioned not to place undue reliance on the statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.

###

(RURL/F)


RURAL/METRO CORPORATION

CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except share data)

 

     December 31,
2010
    June 30,
2010
 

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 26,725      $ 20,228   

Accounts receivable, net

     72,625        63,581   

Inventories

     7,075        8,001   

Deferred income taxes

     24,838        23,737   

Prepaid expenses and other

     7,574        7,907   
                

Total current assets

     138,837        123,454   

Property and equipment, net

     51,563        50,670   

Goodwill

     37,947        36,516   

Restricted cash

     213        20,376   

Deferred income taxes

     38,817        41,538   

Other assets

     17,933        15,908   
                

Total assets

   $ 285,310      $ 288,462   
                

LIABILITIES AND DEFICIT

    

Current liabilities:

    

Accounts payable

   $ 11,770      $ 12,914   

Accrued and other current liabilities

     44,171        48,290   

Deferred revenue

     21,213        21,244   

Current portion of long-term debt

     1,609        6,436   
                

Total current liabilities

     78,763        88,884   

Long-term debt, net of current portion

     261,416        262,606   

Other long-term liabilities

     43,735        38,130   
                

Total liabilities

     383,914        389,620   
                

Rural/Metro Stockholders’ deficit:

    

Common stock, $0.01 par value, 40,000,000 shares authorized, 25,376,481 and 25,254,713 shares issued and outstanding at December 31, 2010 and June 30, 2010, respectively

     254        252   

Additional paid-in capital

     157,163        156,748   

Treasury stock, 96,246 shares at both December 31, 2010 and June 30, 2010

     (1,239     (1,239

Accumulated other comprehensive loss

     (3,756     (3,782

Accumulated deficit

     (253,198     (254,823
                

Total Rural/Metro stockholders’ deficit

     (100,776     (102,844 ) 

Noncontrolling interest

     2,172        1,686   
                

Total deficit

     (98,604 )      (101,158 ) 
                

Total liabilities and deficit

   $ 285,310      $ 288,462   
                


RURAL/METRO CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share amounts)

 

     Three Months Ended December 31,     Six Months Ended December 31,  
     2010     2009     2010     2009  

Net revenue

   $ 141,326      $ 133,278      $ 281,457      $ 263,772   
                                

Operating expenses:

        

Payroll and employee benefits

     86,448        80,829        171,259        161,879   

Depreciation and amortization

     4,675        3,822        8,964        7,631   

Other operating expenses

     32,637        30,793        62,681        58,619   

General/auto liability insurance expense

     8,689        5,174        12,339        8,585   

Gain on sale of assets and property insurance settlement

     (451     (240     (704     (402
                                

Total operating expenses

     131,998        120,378        254,539        236,312   
                                

Operating income

     9,328        12,900        26,918        27,460   

Interest expense

     (7,183     (7,175     (14,513     (14,645

Interest income

     50        49        124        131   

Loss on debt extinguishment

     (8,025     (13,842     (8,025     (13,842
                                

Income (loss) from continuing operations before income taxes

     (5,830     (8,068     4,504        (896

Income tax (provision) benefit

     2,519        3,979        (1,427     349   

Income (loss) from continuing operations

     (3,311     (4,089     3,077        (547

Income (loss) from discontinued operations, net of income taxes

     9        (351     34        (269
                                

Net income (loss)

   $ (3,302 )    $ (4,440 )    $ 3,111      $ (816 ) 
                                

Net income attributable to noncontrolling interest

     (500     (330     (1,486     (1,035
                                

Net income (loss) attributable to Rural/Metro

   $ (3,802   $ (4,770   $ 1,625      $ (1,851
                                

Income (loss) per share:

        

Basic -

        

Income (loss) from continuing operations attributable to Rural/Metro

   $ (0.15   $ (0.18   $ 0.06      $ (0.06

Income (loss) from discontinued operations attributable to Rural/Metro

   $ —          (0.01   $ —          (0.01
                                

Net income (loss) attributable to Rural/Metro

   $ (0.15 )    $ (0.19 )    $ 0.06      $ (0.07 ) 
                                

Diluted -

        

Income (loss) from continuing operations attributable to Rural/Metro

   $ (0.15   $ (0.18   $ 0.06      $ (0.06

Income (loss) from discontinued operations attributable to Rural/Metro

   $ —        $ (0.01   $ —        $ (0.01
                                

Net income (loss) attributable to Rural/Metro

   $ (0.15 )    $ (0.19 )    $ 0.06      $ (0.07 ) 
                                

Average number of common shares outstanding – Basic

     25,336        25,069        25,308        24,964   
                                

Average number of common shares outstanding – Diluted

     25,336        25,069        25,578        24,964   
                                


RURAL/METRO CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

 

     Six Months Ended December 31,  
     2010     2009  

Cash flows from operating activities:

    

Net income (loss)

   $ 3,111      $ (816

Adjustments to reconcile net income to net cash provided by operating activities –

    

Depreciation and amortization

     8,964        7,752   

Non-cash adjustments to insurance claims reserves

     6,748        2,149   

Accretion of debt

     593        5,531   

Amortization of debt issuance costs

     601        980   

Deferred income taxes

     1,604        (463

Share-based compensation expense

     596        304   

Excess tax benefits from share-based compensation

     —          (491

Non-cash loss on debt extinguishment

     878        2,261   

Items expensed related to acquisition

     245        —     

Gain on sale/disposal of property and equipment and proceeds from property insurance settlement

     (248     (81

Change in assets and liabilities –

    

Accounts receivable

     (9,044     4,486   

Inventories

     1,045        398   

Prepaid expenses and other

     334        (75

Other assets

     (4,704     (3,496

Accounts payable

     (621     184   

Accrued and other current liabilities

     (7,515     (1,628

Deferred revenue

     (31     (686

Other liabilities

     613        262   
                

Net cash provided by operating activities

     3,169        16,571   
                

Cash flows from investing activities:

    

Capital expenditures

     (5,676     (5,514

Cash paid for acquisition

     (4,250     —     

Proceeds from the sale/disposal of property and equipment and property insurance settlement

     9        127   

Decrease (increase) in restricted cash

     20,376        (22,402
                

Net cash provided by (used in) investing activities

     10,459        (27,789
                

Cash flows from financing activities:

    

Payments on debt and capital leases

     (273,701     (187,147

Issuance of debt

     268,650        178,200   

Debt issuance costs

     (901     (1,837

Excess tax benefits from share-based compensation

     —          491   

Proceeds from issuance of common stock under share-based compensation plans

     35        513   

Payment of tax withholding for share-based compensation

     (214     (74

Distributions to noncontrolling interest

     (1,000     (900
                

Net cash used in financing activities

     (7,131 )      (10,754 ) 
                

Increase (decrease) in cash and cash equivalents

     6,497        (21,972

Cash and cash equivalents, beginning of year

     20,228        37,108   
                

Cash and cash equivalents, end of year

   $ 26,725      $ 15,136   
                

Supplemental disclosure of non-cash operating activities:

    

Increase(decrease) in other current assets and accrued liabilities for general liability insurance claims

   $ —        $ (13,073

Supplemental disclosure of non-cash investing and financing activities:

    

Property and equipment funded by liabilities

   $ 2,456      $ 620   

Supplemental cash flow information:

    

Cash paid for interest

   $ 18,332      $ 11,693   

Cash paid for income taxes, net

   $ 754      $ 1,279   


RURAL/METRO CORPORATION

RECONCILIATION OF NET INCOME EXCLUDING LOSS ON DEBT EXTINGUISHMENT

(unaudited)

(in thousands, except per share amounts)

 

     Three Months Ended December 31,     Six Months Ended December 31,  
     2010     2009     2010     2009  

Net income (loss) attributable to Rural/Metro

   $ (3,802   $ (4,770   $ 1,625      $ (1,851
                                

Loss on debt extinguishment

     8,025        13,842        8,025        13,842   

Tax effect of loss on debt extinguishment

     (3,036     (5,865     (3,036     (5,865

Adjusted net income attributable to Rural Metro

     1,187        3,207        6,614        6,126   
                                

Income per share:

        

Basic –

        

Net income attributable to Rural/Metro

   $ 0.05      $ 0.13      $ 0.26      $ 0.25   
                                

Diluted –

        

Net income attributable to Rural/Metro

   $ 0.05      $ 0.13      $ 0.26      $ 0.24   
                                

Average number of common shares outstanding – Basic

     25,336        25,069        25,308        24,964   
                                

Average number of common shares outstanding – Diluted

     25,596        25,324        25,578        25,264   
                                


RURAL/METRO CORPORATION

RECONCILIATION OF INCOME FROM CONTINUING AND DISCONTINUED OPERATIONS TO EBITDA

(unaudited)

(in thousands)

 

     Three Months Ended     Six Months Ended  
     December 31,     December 31,  
     2010     2009     2010     2009  

Income (loss) from continuing operations

   $ (3,311   $ (4,089   $ 3,077      $ (547

Add (deduct):

        

Depreciation and amortization

     4,675        3,822        8,964        7,631   

Interest expense

     7,183        7,175        14,513        14,645   

Interest income

     (50     (49     (124     (131

Income tax provision (benefit)

     (2,519     (3,979     1,427        (349

Income attributable to noncontrolling interest

     (500     (330     (1,486     (1,035
                                

EBITDA from continuing operations attributable to Rural/Metro

     5,478        2,550        26,371        20,214   
                                

Add (deduct):

        

Share-based compensation expense

     367        168        596        304   

Loss on debt extinguishment

     8,025        13,842        8,025        13,842   
                                

Adjusted EBITDA from continuing operations attributable to Rural/Metro

     13,870        16,560        34,992        34,360   
                                

Income (loss) from discontinued operations

     9        (351     34        (269

Add (deduct):

        

Depreciation and amortization

     —          51        —          121   

Income tax provision (benefit)

     6        (338     22        (274
                                

EBITDA from discontinued operations attributable to Rural/Metro

     15        (638 )      56        (422 ) 
                                

Total adjusted EBITDA attributable to Rural/Metro

   $ 13,885      $ 15,922      $ 35,048      $ 33,938   
                                


RURAL/METRO CORPORATION

RECONCILATION OF PREVIOUSLY REPORTED SEGMENT RESULTS FOR

THE THREE MONTHS ENDED DECEMBER 31, 2009

(unaudited)

(in thousands)

 

     Three Months  Ended
12/31/09

As Previously
Reported
            Adjustments
Related to
Reporting Segment
Realignment (1)
           Adjustments
Related to
Discontinued
Operations (2)
           Three Months  Ended
12/31/09

Revised
 

EAST ZONE

                  

Net Revenue

   $ 24,086          $ 7,954         $ —           $ 32,040   

Segment Profit

   $ 5,056          $ 527         $ —           $ 5,583   

Medical Transports

     56,875            26,906           —             83,781   

SOUTH ZONE

                  

Net Revenue

   $ 35,687          $ (4,382      $ (235      $ 31,070   

Segment Profit

   $ 1,727          $ 36         $ 110         $ 1,873   

Medical Transports

     86,527            (14,391        (460        71,676   

SOUTHWEST ZONE

                  

Net Revenue

   $ 46,913            —           $ —           $ 46,913   

Segment Profit

   $ 7,878            (1      $ —           $ 7,877   

Medical Transports

     60,619            —             —             60,619   

WEST ZONE

                  

Net Revenue

   $ 26,827          $ (3,572      $ —           $ 23,255   

Segment Profit

   $ 1,952          $ (563      $ —           $ 1,389   

Medical Transports

     67,835            (12,515        —             55,320   

CONSOLIDATED

                  

Net Revenue

   $ 133,513          $ —           $ (235      $ 133,278   

Segment Profit

   $ 16,613          $ (1      $ 110         $ 16,722   

Medical Transports

     271,856            —             (460        271,396   

(1) – Adjustments represent the effect of the realignment of our reporting segments on results for the quarter ended December 31, 2009 as previously reported on Form 10-Q for the quarter ended December 31, 2009.

(2) – Adjustments represent the effect of the reclassification of operations that were discontinued between January 1, 2010 and June 30, 2010.


RURAL/METRO CORPORATION

RECONCILATION OF PREVIOUSLY REPORTED SEGMENT RESULTS FOR

THE SIX MONTHS ENDED DECEMBER 31, 2009

(unaudited)

(in thousands)

 

     Six Months  Ended
12/31/09

As Previously
Reported
            Adjustments
Related to
Reporting Segment
Realignment (1)
           Adjustments
Related to
Discontinued
Operations (2)
           Six Months  Ended
12/31/09

Revised
 

EAST ZONE

                  

Net Revenue

   $ 47,997          $ 15,733         $ —           $ 63,730   

Segment Profit

   $ 11,564          $ 1,355         $ —           $ 12,919   

Medical Transports

     114,513            52,849           —             167,362   

SOUTH ZONE

                  

Net Revenue

   $ 71,070          $ (8,824      $ (563      $ 61,683   

Segment Profit

   $ 5,258          $ (419      $ 93         $ 4,932   

Medical Transports

     171,419            (27,827        (1,022        142,570   

SOUTHWEST ZONE

                  

Net Revenue

   $ 91,465            —           $ —           $ 91,465   

Segment Profit

   $ 13,565          $ (1      $ —           $ 13,564   

Medical Transports

     118,960            —             —             118,960   

WEST ZONE

                  

Net Revenue

   $ 53,803          $ (6,909      $ —           $ 46,894   

Segment Profit

   $ 4,612          $ (936      $ —           $ 3,676   

Medical Transports

     136,281            (25,022        —             111,259   

CONSOLIDATED

                  

Net Revenue

   $ 264,335          $ —           $ (563      $ 263,772   

Segment Profit

   $ 34,999          $ (1      $ 93         $ 35,091   

Medical Transports

     541,173            —             (1,022        540,151   

(1) – Adjustments represent the effect of the realignment of our reporting segments on results for the six months ended December 31, 2009 as previously reported on Form 10-Q for the quarter ended December 31, 2009.

(2) – Adjustments represent the effect of the reclassification of operations that were discontinued between January 1, 2010 and June 30, 2010.