EXHIBIT 99.1
RURAL/METRO CORPORATION
PROFORMA STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2003
Rural/Metro Corporation | Discontinued Operations | Adjustments (1) | Pro forma Combined | ||||||||||||
NET REVENUE | $ | 265,862 | $ | (1,371 | ) | $ | — | $ | 264,491 | ||||||
OPERATING EXPENSES | |||||||||||||||
Payroll and employee benefits | 141,052 | (865 | ) | 140,187 | |||||||||||
Provision for doubtful accounts | 42,627 | — | 42,627 | ||||||||||||
Depreciation and amortization | 5,734 | (30 | ) | 5,704 | |||||||||||
Other operating expenses | 57,246 | (26 | ) | 57,220 | |||||||||||
Restructuring charge and other | — | — | — | ||||||||||||
Total operating expenses | 246,659 | (921 | ) | — | 245,738 | ||||||||||
OPERATING INCOME | 19,203 | (450 | ) | — | 18,753 | ||||||||||
Interest expense | (15,208 | ) | — | (15,208 | ) | ||||||||||
Interest income | 51 | — | — | 51 | |||||||||||
Other income, net | — | — | — | ||||||||||||
INCOME BEFORE INCOME TAXES | 4,046 | (450 | ) | — | 3,596 | ||||||||||
INCOME TAX EXPENSE | (195 | ) | — | (195 | ) | ||||||||||
MINORITY INTEREST | (463 | ) | — | — | (463 | ) | |||||||||
INCOME FROM CONTINUING OPERATIONS | $ | 3,388 | $ | (450 | ) | $ | — | $ | 2,938 | ||||||
(1) - | The pro forma statement of operations gives effect to the contract expiration in one fire and other service area as if the expiration of the contract occurred on July 1, 2000. The results of the one fire and other service area have been removed from the pro forma statement of operations. |
RURAL/METRO CORPORATION
PROFORMA STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE YEAR ENDED JUNE 30, 2003
Rural/Metro Corporation | Discontinued Operations | Adjustments (1) | Pro forma Combined | ||||||||||||
NET REVENUE | $ | 520,477 | $ | (3,448 | ) | $ | — | $ | 517,029 | ||||||
OPERATING EXPENSES | |||||||||||||||
Payroll and employee benefits | 284,021 | (2,499 | ) | 281,522 | |||||||||||
Provision for doubtful accounts | 85,046 | — | 85,046 | ||||||||||||
Depreciation and amortization | 13,289 | (58 | ) | 13,231 | |||||||||||
Other operating expenses | 113,535 | (73 | ) | 113,462 | |||||||||||
Restructuring charge and other | (1,421 | ) | — | (1,421 | ) | ||||||||||
Total operating expenses | 494,470 | (2,630 | ) | — | 491,840 | ||||||||||
OPERATING INCOME | 26,007 | (818 | ) | — | 25,189 | ||||||||||
Interest expense | (28,012 | ) | — | (28,012 | ) | ||||||||||
Interest income | 197 | — | — | 197 | |||||||||||
Other income, net | 146 | — | 146 | ||||||||||||
LOSS BEFORE INCOME TAXES | (1,662 | ) | (818 | ) | — | (2,480 | ) | ||||||||
INCOME TAX EXPENSE | (197 | ) | — | (197 | ) | ||||||||||
MINORITY INTEREST | (1,507 | ) | — | — | (1,507 | ) | |||||||||
LOSS FROM CONTINUING OPERATIONS | $ | (3,366 | ) | $ | (818 | ) | $ | — | $ | (4,184 | ) | ||||
(1) - | The pro forma statement of operations gives effect to the contract expiration in one fire and other service area as if the expiration of the contract occurred on July 1, 2000. The results of the one fire and other service area have been removed from the pro forma statement of operations. |
RURAL/METRO CORPORATION
PRO FORMA STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE YEAR ENDED JUNE 30, 2002
Rural/Metro Corporation | Discontinued Operations | Adjustments (1) | Pro forma Combined | ||||||||||||
NET REVENUE | $ | 488,980 | $ | (3,470 | ) | $ | — | $ | 485,510 | ||||||
OPERATING EXPENSES | |||||||||||||||
Payroll and employee benefits | 269,123 | (2,511 | ) | 266,612 | |||||||||||
Provision for doubtful accounts | 77,725 | (220 | ) | 77,505 | |||||||||||
Depreciation and amortization | 16,267 | (56 | ) | 16,211 | |||||||||||
Other operating expenses | 103,280 | (74 | ) | 103,206 | |||||||||||
Contract termination costs and related asset impairment charges | (107 | ) | — | (107 | ) | ||||||||||
Restructuring charge and other | (718 | ) | (718 | ) | |||||||||||
Total operating expenses | 465,570 | (2,861 | ) | — | 462,709 | ||||||||||
OPERATING INCOME | 23,410 | (609 | ) | — | 22,801 | ||||||||||
Interest expense | (25,462 | ) | — | (25,462 | ) | ||||||||||
Interest income | 644 | — | 644 | ||||||||||||
Other income, net | 8 | 8 | |||||||||||||
LOSS BEFORE INCOME TAXES | (1,400 | ) | (609 | ) | — | (2,009 | ) | ||||||||
INCOME TAX BENEFIT | 2,520 | — | 2,520 | ||||||||||||
MINORITY INTEREST | (750 | ) | — | (750 | ) | ||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | $ | 370 | $ | (609 | ) | $ | — | $ | (239 | ) | |||||
(1) - | The pro forma statement of operations gives effect to the contract expiration in one fire and other service area as if the expiration of the contract occurred on July 1, 2000. The results of the one fire and other service area have been removed from the pro forma statement of operations. |
RURAL/METRO CORPORATION
PRO FORMA STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE YEAR ENDED JUNE 30, 2001
Rural/Metro Corporation | Discontinued Operations | Adjustments (1) | Pro forma Combined | ||||||||||||
NET REVENUE | $ | 479,414 | $ | (3,417 | ) | $ | — | $ | 475,997 | ||||||
OPERATING EXPENSES | |||||||||||||||
Payroll and employee benefits | 271,976 | (2,510 | ) | 269,466 | |||||||||||
Provision for doubtful accounts | 86,876 | — | 86,876 | ||||||||||||
Depreciation and amortization | 25,741 | (49 | ) | 25,692 | |||||||||||
Other operating expenses | 131,889 | (72 | ) | 131,817 | |||||||||||
Asset impairment charges | 48,050 | — | 48,050 | ||||||||||||
Contract termination costs and related asset impairment charges | 9,256 | — | 9,256 | ||||||||||||
Restructuring charge and other | 9,091 | — | 9,091 | ||||||||||||
Total operating expenses | 582,879 | (2,631 | ) | — | 580,248 | ||||||||||
OPERATING LOSS | (103,465 | ) | (786 | ) | — | (104,251 | ) | ||||||||
Interest expense | (30,624 | ) | — | (30,624 | ) | ||||||||||
Interest income | 642 | 642 | |||||||||||||
Other expense, net | (4,053 | ) | — | (4,053 | ) | ||||||||||
LOSS BEFORE INCOME TAXES | (137,500 | ) | (786 | ) | — | (138,286 | ) | ||||||||
INCOME TAX PROVISION | (1,137 | ) | — | (1,137 | ) | ||||||||||
MINORITY INTEREST | 705 | — | 705 | ||||||||||||
LOSS FROM CONTINUING OPERATIONS | $ | (137,932 | ) | $ | (786 | ) | $ | — | $ | (138,718 | ) | ||||
(1) - | The pro forma statement of operations gives effect to the contract expiration in one fire and other service area as if the expiration of the contract occurred on July 1, 2000. The results of the one fire and other service area have been removed from the pro forma statement of operations. |