Exhibit 99.1
2005 Annual Meeting of Stockholders |
February 8, 2005 |
Welcome |
Shareholders |
Forward-looking Statement |
The following presentation may contain forward-looking statements. Although such statements reflect our current reasonable judgment regarding the direction of our business, actual results may differ materially from those projected here. We undertake no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise. You can find information on the risk factors concerning why the actual results might differ from statements made today in our documents filed with the Securities and Exchange Commission. |
Laidlaw Senior Team |
Doug Carty SVP and CFO |
Beth Corvino SVP and General Counsel |
Hugh MacDiarmid CEO, Education & Transit Services |
Steve Gorman CEO, Greyhound Group |
Bill Sanger CEO, Healthcare Group |
Strategic Plans |
2004 Goals |
· Operating and improving businesses |
· Identifying future portfolio |
· Refinancing exit debt |
· Improving capital structure |
· Achieving investment grade rating |
Primary Objectives in 2004 |
· Reduce unit costs |
· Develop new sources of revenue |
· Streamline portfolio |
Portfolio of Companies |
2004 Revenue |
$4.6 Billion in Annual Revenue |
33% School Bus |
6% Public Transit Services |
23% Greyhound |
12% Emergency Room |
26% Ambulance Services |
Laidlaw Education Services |
Education Services |
Company Profile |
· 40,000 buses |
· 45,000 employees |
· 484 branches |
· 2 million students a day |
· Largest single operator with 8% of market share |
Revenue Contribution 33% |
Education Services |
Objective: Lower Unit Costs |
· Centralize to improve operating efficiencies |
· Focus branch managers on customer service and employee relations |
· Key operational information to manage daily performance |
Education Services |
Objective: Return on Capital |
· Minimum return levels |
· “Up or Out” |
Result: Improved Margins |
· Target: 3 to 4 percent improvement in 4 years |
Education Services |
Objective: Grow Revenue |
· Services for non-privatized school buses |
Sch Dist 317 Outsourced 163 |
Relative Market |
School District Operated |
Outsourced |
An American Icon |
Greyhound |
Company Profile |
· 3,400 destinations |
· 3,600 coaches |
· 14,000 employees |
· 200 terminals |
· 1,900 agencies |
· 19,000 daily departures |
Revenue Contribution 26% |
Greyhound |
Network Overhaul |
· Yield analysis |
· Focus on safety and speed |
· Reduce stops |
· Attention on short/medium haul passengers |
STOP LESS. GO MORE. |
Greyhound |
Improvements to Date |
· Enhanced network |
· Reduced fleet size by 150 buses |
· 33% less staff |
· New marketing initiative |
Greyhound Marketing |
“The Simple Life” |
Starring Greyhound |
Laidlaw Transit Services |
Public Transit Services |
Company Profile |
· 6,300 employees |
· 3,800 vehicles |
· 150 regional and municipal authorities |
· 25 states |
· Highly competitive industry |
Revenue Contribution 6% |
Public Transit Services |
2004 Achievements |
· Overhead costs reduced |
· Revised training and safety procedures |
· Foundation for 2005 revenue growth |
Quality medical and emergency services |
Healthcare Group |
· 18,000 employees |
· 4,400 vehicles |
· 3.7 million transports |
· 300 hospitals |
· 38 states |
· 4,100 employees |
· 5 million patients annually |
The Transformation |
· Reduced overheads |
· Enhanced billing and collection |
· Unique technology |
· New revenue sources |
AMR and EmCare |
Why Sell? |
· Other growth opportunities |
· Restrictive exit financing |
· Favorable capital markets |
Transaction |
· Bid process |
· Maximum price |
Financial Snapshot |
2002 2003 2004 |
Revenue 4.432 4.483 4.631 |
2002 2003 2004 |
Operating Income 62 175 221 |
2002 2003 2004 |
Capital Expen 283 321 225 |
Thank you for coming! |