Exhibit 99.1
RURAL/METRO CORPORATION
PRO-FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2005
(in thousands, except per share amounts)
(unaudited)
As Reported (1) | New Jersey Discontinued Operations | Pro-Forma | ||||||||||
Net revenue | $ | 141,461 | $ | (4,155 | ) | $ | 137,306 | |||||
Operating expenses: | ||||||||||||
Payroll and employee benefits | 69,096 | (2,264 | ) | 66,832 | ||||||||
Provision for doubtful accounts | 25,009 | (711 | ) | 24,298 | ||||||||
Depreciation and amortization | 2,846 | (39 | ) | 2,807 | ||||||||
Other operating expenses | 30,878 | (863 | ) | 30,015 | ||||||||
Loss on sale of assets | 35 | — | 35 | |||||||||
Total operating expenses | 127,864 | (3,877 | ) | 123,987 | ||||||||
Operating income | 13,597 | (278 | ) | 13,319 | ||||||||
Interest expense | (7,748 | ) | — | (7,748 | ) | |||||||
Interest income | 172 | — | 172 | |||||||||
Income from continuing operations before income taxes and minority interest | 6,021 | (278 | ) | 5,743 | ||||||||
Income tax provision | (2,524 | ) | 116 | (2,408 | ) | |||||||
Minority interest | (153 | ) | — | (153 | ) | |||||||
Income from continuing operations | $ | 3,344 | $ | (162 | ) | $ | 3,182 | |||||
Income per share from continuing operations: | ||||||||||||
Basic | $ | 0.14 | $ | 0.13 | ||||||||
Diluted | $ | 0.13 | $ | 0.13 | ||||||||
Average number of common shares outstanding: | ||||||||||||
Basic | 24,330 | 24,330 | ||||||||||
Diluted | 25,298 | 25,298 | ||||||||||
(1) | As reported in the Company’s December 31, 2005 Form 10-Q filed with the SEC on February 9, 2006. |
Note: | The unaudited pro-forma consolidated statement of operations gives effect to the discontinuation of the Company’s operations in New Jersey as if this discontinuation occurred on July 1, 2002. The results of this service area have been removed from the unaudited pro-forma consolidated statement of operations. |
RURAL/METRO CORPORATION
PRO-FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2004
(in thousands, except per share amounts)
(unaudited)
As Reported (1) | New Jersey Discontinued Operations | Pro-Forma | ||||||||||
Net revenue | $ | 126,621 | $ | (5,068 | ) | $ | 121,553 | |||||
Operating expenses: | ||||||||||||
Payroll and employee benefits | 66,540 | (2,840 | ) | 63,700 | ||||||||
Provision for doubtful accounts | 19,684 | (481 | ) | 19,203 | ||||||||
Depreciation and amortization | 2,541 | (56 | ) | 2,485 | ||||||||
Other operating expenses | 28,417 | (1,190 | ) | 27,227 | ||||||||
Loss on sale of assets | 5 | — | 5 | |||||||||
Total operating expenses | 117,187 | (4,567 | ) | 112,620 | ||||||||
Operating income | 9,434 | (501 | ) | 8,933 | ||||||||
Interest expense | (7,513 | ) | — | (7,513 | ) | |||||||
Interest income | 48 | — | 48 | |||||||||
Income from continuing operations before income taxes and minority interest | 1,969 | (501 | ) | 1,468 | ||||||||
Income tax provision | (260 | ) | — | (260 | ) | |||||||
Minority interest | 337 | — | 337 | |||||||||
Income from continuing operations | $ | 2,046 | $ | (501 | ) | $ | 1,545 | |||||
Income per share from continuing operations: | ||||||||||||
Basic | $ | 0.09 | $ | 0.07 | ||||||||
Diluted | $ | 0.09 | $ | 0.06 | ||||||||
Average number of common shares outstanding: | ||||||||||||
Basic | 22,241 | 22,241 | ||||||||||
Diluted | 24,022 | 24,022 | ||||||||||
(1) | As reported in the Company’s December 31, 2005 Form 10-Q filed with the SEC on February 9, 2006. |
Note: | The unaudited pro-forma consolidated statement of operations gives effect to the discontinuation of the Company’s operations in New Jersey as if this discontinuation occurred on July 1, 2002. The results of this service area have been removed from the unaudited pro-forma consolidated statement of operations. |
RURAL/METRO CORPORATION
PRO-FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2005
(in thousands, except per share amounts)
(unaudited)
As Reported (1) | New Jersey Discontinued Operations | Pro-Forma | ||||||||||
Net revenue | $ | 280,225 | $ | (8,790 | ) | $ | 271,435 | |||||
Operating expenses: | ||||||||||||
Payroll and employee benefits | 137,551 | (4,800 | ) | 132,751 | ||||||||
Provision for doubtful accounts | 48,741 | (1,352 | ) | 47,389 | ||||||||
Depreciation and amortization | 5,599 | (71 | ) | 5,528 | ||||||||
Other operating expenses | 61,430 | (1,886 | ) | 59,544 | ||||||||
Gain on sale of assets | (1,307 | ) | — | (1,307 | ) | |||||||
Total operating expenses | 252,014 | (8,109 | ) | 243,905 | ||||||||
Operating income | 28,211 | (681 | ) | 27,530 | ||||||||
Interest expense | (15,256 | ) | — | (15,256 | ) | |||||||
Interest income | 325 | — | 325 | |||||||||
Income from continuing operations before income taxes and minority interest | 13,280 | (681 | ) | 12,599 | ||||||||
Income tax provision | (6,168 | ) | 316 | (5,852 | ) | |||||||
Minority interest | (315 | ) | — | (315 | ) | |||||||
Income from continuing operations | $ | 6,797 | $ | (365 | ) | $ | 6,432 | |||||
Income per share from continuing operations: | ||||||||||||
Basic | $ | 0.28 | $ | 0.26 | ||||||||
Diluted | $ | 0.27 | $ | 0.25 | ||||||||
Average number of common shares outstanding: | ||||||||||||
Basic | 24,281 | 24,281 | ||||||||||
Diluted | 25,280 | 25,280 | ||||||||||
(1) | As reported in the Company’s December 31, 2005 Form 10-Q filed with the SEC on February 9, 2006. |
Note: | The unaudited pro-forma consolidated statement of operations gives effect to the discontinuation of the Company’s operations in New Jersey as if this discontinuation occurred on July 1, 2002. The results of this service area have been removed from the unaudited pro-forma consolidated statement of operations. |
RURAL/METRO CORPORATION
PRO-FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2004
(in thousands, except per share amounts)
(unaudited)
As Reported (1) | New Jersey Discontinued Operations | Pro-Forma | ||||||||||
Net revenue | $ | 252,531 | $ | (10,002 | ) | $ | 242,529 | |||||
Operating expenses: | ||||||||||||
Payroll and employee benefits | 132,063 | (5,613 | ) | 126,450 | ||||||||
Provision for doubtful accounts | 40,442 | (996 | ) | 39,446 | ||||||||
Depreciation and amortization | 5,377 | (116 | ) | 5,261 | ||||||||
Other operating expenses | 54,347 | (2,306 | ) | 52,041 | ||||||||
Loss on sale of assets | 3 | — | 3 | |||||||||
Total operating expenses | 232,232 | (9,031 | ) | 223,201 | ||||||||
Operating income | 20,299 | (971 | ) | 19,328 | ||||||||
Interest expense | (14,831 | ) | — | (14,831 | ) | |||||||
Interest income | 176 | — | 176 | |||||||||
Income from continuing operations before income taxes and minority interest | 5,644 | (971 | ) | 4,673 | ||||||||
Income tax provision | (336 | ) | — | (336 | ) | |||||||
Minority interest | 28 | — | 28 | |||||||||
Income from continuing operations | $ | 5,336 | $ | (971 | ) | $ | 4,365 | |||||
Income per share from continuing operations: | ||||||||||||
Basic | $ | 0.24 | $ | 0.20 | ||||||||
Diluted | $ | 0.23 | $ | 0.19 | ||||||||
Average number of common shares outstanding: | ||||||||||||
Basic | 22,100 | 22,100 | ||||||||||
Diluted | 23,351 | 23,351 | ||||||||||
(1) | As reported in the Company’s December 31, 2005 Form 10-Q filed with the SEC on February 9, 2006. |
Note: | The unaudited pro-forma consolidated statement of operations gives effect to the discontinuation of the Company’s operations in New Jersey as if this discontinuation occurred on July 1, 2002. The results of this service area have been removed from the unaudited pro-forma consolidated statement of operations. |
RURAL/METRO CORPORATION
PRO-FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2005
(in thousands, except per share amounts)
(unaudited)
As Reported (1) | Augusta Discontinued Operations (2) | New Jersey Discontinued Operations | Pro-Forma | |||||||||||||
Net revenue | $ | 531,084 | $ | (8,900 | ) | $ | (20,742 | ) | $ | 501,442 | ||||||
Operating expenses: | ||||||||||||||||
Payroll and employee benefits | 272,574 | (3,597 | ) | (11,241 | ) | 257,736 | ||||||||||
Provision for doubtful accounts | 87,298 | (2,617 | ) | (2,665 | ) | 82,016 | ||||||||||
Depreciation and amortization | 11,046 | (228 | ) | (209 | ) | 10,609 | ||||||||||
Other operating expenses | 119,033 | (1,681 | ) | (4,822 | ) | 112,530 | ||||||||||
Total operating expenses | 489,951 | (8,123 | ) | (18,937 | ) | 462,891 | ||||||||||
Operating income | 41,133 | (777 | ) | (1,805 | ) | 38,551 | ||||||||||
Interest expense | (29,579 | ) | — | — | (29,579 | ) | ||||||||||
Interest income | 305 | — | — | 305 | ||||||||||||
Loss on early extinguishment of debt | (8,170 | ) | — | — | (8,170 | ) | ||||||||||
Income from continuing operations before income taxes and minority interest | 3,689 | (777 | ) | (1,805 | ) | 1,107 | ||||||||||
Income tax benefit | 82,817 | 305 | 694 | 83,816 | ||||||||||||
Minority interest | (102 | ) | — | — | (102 | ) | ||||||||||
Income from continuing operations | $ | 86,404 | $ | (472 | ) | $ | (1,111 | ) | $ | 84,821 | ||||||
Income per share from continuing operations: | ||||||||||||||||
Basic | $ | 3.81 | $ | 3.74 | ||||||||||||
Diluted | $ | 3.58 | $ | 3.52 | ||||||||||||
Average number of common shares outstanding: | ||||||||||||||||
Basic | 22,674 | 22,674 | ||||||||||||||
Diluted | 24,105 | 24,105 | ||||||||||||||
(1) | As reported in the Company’s Form 8-K/A filed with the SEC on November 15, 2005. |
(2) | As reported in the Company’s Form 8-K filed with the SEC on January 6, 2006. |
Note: | The unaudited pro-forma consolidated statement of operations gives effect to the discontinuation of the Company’s operations in Augusta, Georgia and New Jersey as if these discontinuations occurred on July 1, 2002. The results of these service areas have been removed from the unaudited pro-forma consolidated statement of operations. |
RURAL/METRO CORPORATION
PRO-FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2004
(in thousands, except per share amounts)
(unaudited)
As Reported (1) | Augusta Discontinued Operations (2) | New Jersey Discontinued Operations | Pro-Forma | |||||||||||||
Net revenue | $ | 493,773 | $ | (8,718 | ) | $ | (22,541 | ) | $ | 462,514 | ||||||
Operating expenses: | ||||||||||||||||
Payroll and employee benefits | 254,757 | (3,516 | ) | (11,001 | ) | 240,240 | ||||||||||
Provision for doubtful accounts | 86,717 | (2,374 | ) | (4,347 | ) | 79,996 | ||||||||||
Depreciation and amortization | 10,990 | (230 | ) | (289 | ) | 10,471 | ||||||||||
Other operating expenses | 111,217 | (1,619 | ) | (3,705 | ) | 105,893 | ||||||||||
Total operating expenses | 463,681 | (7,739 | ) | (19,342 | ) | 436,600 | ||||||||||
Operating income | 30,092 | (979 | ) | (3,199 | ) | 25,914 | ||||||||||
Interest expense | (29,243 | ) | — | — | (29,243 | ) | ||||||||||
Interest income | 97 | — | — | 97 | ||||||||||||
Income from continuing operations before income taxes and minority interest | 946 | (979 | ) | (3,199 | ) | (3,232 | ) | |||||||||
Income tax benefit | (16 | ) | 56 | 185 | 225 | |||||||||||
Minority interest | 475 | — | — | 475 | ||||||||||||
Income from continuing operations | $ | 1,405 | $ | (923 | ) | $ | (3,014 | ) | $ | (2,532 | ) | |||||
Income per share from continuing operations: | ||||||||||||||||
Basic | $ | 0.29 | $ | 0.10 | ||||||||||||
Diluted | $ | 0.06 | $ | (0.13 | ) | |||||||||||
Average number of common shares outstanding: | ||||||||||||||||
Basic | 16,645 | 16,645 | ||||||||||||||
Diluted | 21,817 | 21,817 | ||||||||||||||
(1) | As reported in the Company’s Form 8-K/A filed with the SEC on November 15, 2005. |
(2) | As reported in the Company’s Form 8-K filed with the SEC on January 6, 2006. |
Note: | The unaudited pro-forma consolidated statement of operations gives effect to the discontinuation of the Company’s operations in Augusta, Georgia and New Jersey as if these discontinuations occurred on July 1, 2002. The results of these service areas have been removed from the unaudited pro-forma consolidated statement of operations. |
RURAL/METRO CORPORATION
PRO-FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2003
(in thousands, except per share amounts)
(unaudited)
As Reported (1) | Augusta Discontinued Operations (2) | New Jersey Discontinued Operations | Pro-Forma | |||||||||||||
Net revenue | $ | 452,723 | $ | (7,445 | ) | $ | (22,923 | ) | $ | 422,355 | ||||||
Operating expenses: | ||||||||||||||||
Payroll and employee benefits | 242,949 | (3,215 | ) | (11,201 | ) | 228,533 | ||||||||||
Provision for doubtful accounts | 76,753 | (1,823 | ) | (4,187 | ) | 70,743 | ||||||||||
Depreciation and amortization | 11,628 | (176 | ) | (362 | ) | 11,090 | ||||||||||
Other operating expenses | 103,518 | (1,595 | ) | (4,517 | ) | 97,406 | ||||||||||
Restructuring and other | (1,421 | ) | 1,321 | — | (100 | ) | ||||||||||
Total operating expenses | 433,427 | (5,488 | ) | (20,267 | ) | 407,672 | ||||||||||
Operating income | 19,296 | (1,957 | ) | (2,656 | ) | 14,683 | ||||||||||
Interest expense | (28,012 | ) | — | — | (28,012 | ) | ||||||||||
Interest income | 197 | — | — | 197 | ||||||||||||
Income from continuing operations before income taxes and minority interest | (8,519 | ) | (1,957 | ) | (2,656 | ) | (13,132 | ) | ||||||||
Minority interest | (1,507 | ) | — | — | (1,507 | ) | ||||||||||
Income from continuing operations | $ | (10,026 | ) | $ | (1,957 | ) | $ | (2,656 | ) | $ | (14,639 | ) | ||||
Income per share from continuing operations: | ||||||||||||||||
Basic | $ | (0.85 | ) | $ | (1.13 | ) | ||||||||||
Diluted | $ | (0.85 | ) | $ | (1.13 | ) | ||||||||||
Average number of common shares outstanding: | ||||||||||||||||
Basic | 16,116 | 16,116 | ||||||||||||||
Diluted | 16,116 | 16,116 | ||||||||||||||
(1) | As reported in the Company’s Form 8-K/A filed with the SEC on November 15, 2005. |
(2) | As reported in the Company’s Form 8-K filed with the SEC on January 6, 2006. |
Note: | The unaudited pro-forma consolidated statement of operations gives effect to the discontinuation of the Company’s operations in Augusta, Georgia and New Jersey as if these discontinuations occurred on July 1, 2002. The results of these service areas have been removed from the unaudited pro-forma consolidated statement of operations. |