SCOTTSDALE, AZ -- 10/26/09 --
Rural/Metro Corporation (NASDAQ: RURL), a
leading provider of ambulance and private fire protection services,
announced preliminary, unaudited results today for its fiscal 2010 first
quarter.
As previously announced, the Company has commenced a refinancing of its
credit facility, a tender offer and consent solicitation for its 12.75%
Senior Discount Notes due 2016 and a consent solicitation for its 9.875%
Senior Subordinated Notes due 2015.
In connection with the pending refinancing transaction, the Company
released certain expected results for its quarter ended September 30, 2009
as follows:
-- Net revenue for the quarter of $132.0 million, a 6.8% increase over
the same quarter in the prior year;
-- Income from continuing operations for the first quarter of $3.5
million
-- Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) from continuing operations for the first quarter of $17.8 million;
-- Cash position at quarter end of $42.0 million; and,
-- Days Sales Outstanding (DSO), a key metric used to measure billing and
collections efficiency, declined three days to 49 days at the close of the
quarter.
A reconciliation of EBITDA to income from continuing operations and
discontinued operations for the three months ended September 30, 2009 is
included with this press release and the related current report on Form
8-K.
The Company has scheduled its quarterly conference call for 11 a.m. Eastern
time on Monday, November 9, 2009 to discuss complete first-quarter results
and operational developments. To join the Company's conference call, dial
800-263-8506 (domestic) or 719-457-2640 (international). A taped replay
will be available after 1 p.m. Eastern time on the day of the call until
11:59 p.m. Eastern time on November 12, 2009. To access the replay, dial
888-203-1112 (domestic) or 719-457-0820 (international). The required pass
code to access the replay is 4524714. An audio webcast 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 Corporation
Rural/Metro Corporation provides emergency and non-emergency ambulance
services and private fire protection services in 22 states and
approximately 400 communities throughout the United States. For more
information, visit the Rural/Metro Corporation's web site at
www.ruralmetro.com.
SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS
The foregoing statements reflect the Company's expectations as to the
results, financial condition and performance it expects to report for its
fiscal 2010 first quarter. The Company emphasizes that the expected results
for the quarter ended September 30, 2009 are preliminary and that actual
results could vary when the Company reports first-quarter results on
November 9, 2009 at 11 a.m. Eastern time. The foregoing statements are
"forward-looking" statements as such term is defined by the federal
securities laws. The Company may also make forward-looking statements in
its earnings reports filed with the Securities and Exchange Commission
(SEC), earnings calls and other investor communications. These
forward-looking statements are subject to the safe harbor protection
provided by federal securities laws. Actual results may differ materially
from those set forth in or implied by this release or the Company's other
forward-looking statements due to a number of risks and uncertainties,
including those relating to the Company's future business prospects,
uncompensated care, working capital, accounts receivable collection,
liquidity, cash flow, 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 made. 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.
RURAL/METRO CORPORATION
RECONCILIATION OF INCOME FROM CONTINUING OPERATIONS TO EBITDA
(in millions)
Three Months
Ended
September 30,
2009
--------------
Income from continuing operations $ 3.5
Add (deduct):
Depreciation and amortization 4.0
Interest expense 7.5
Interest income (0.1)
Income tax provision 3.6
Non-controlling interest (0.7)
--------------
EBITDA from continuing operations $ 17.8
==============
EBITDA from continuing operations is a key indicator management uses to
evaluate operating performance. While EBITDA from continuing operations is
not intended to replace presentations included in the Companys
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.
(RURL/F)
CONTACT:
Liz Merritt
Rural/Metro Corporation (investors)
(480) 606-3337
Sharrifah Al-Salem, FD
(415) 293-4414