Exhibit 99.1
CONTACT: Liz Merritt, Rural/Metro Corporation
(480) 606-3337
Sharrifah Al-Salem, FD
(415) 293-4414
RURAL/METRO ANNOUNCES STRONG THIRD-QUARTER RESULTS;
Fiscal 2010 Adjusted EBITDA Guidance Raised to $67.0 Million to $69.0 Million
Highlights:
| | • | | Quarterly net revenue increased 7.5% over the prior year to $133.1 million; year-to-date net revenue increased 8.8% over the prior year to $396.9 million. |
| | • | | Quarterly net income attributable to Rural/Metro was $3.8 million, or diluted earnings per share (EPS) of $0.15, including a loss on debt extinguishment of $0.3 million; year-to-date net income attributable to Rural/Metro was $1.9 million, or diluted EPS of $0.08, including a $14.2 million loss on debt extinguishment. |
| | • | | Quarterly Adjusted EBITDA from continuing operations was $17.9 million, or an increase of 22.5% over the prior-year period; year-to-date Adjusted EBITDA from continuing operations was $52.3 million, an increase of 19.3% from the same prior-year period. |
| | • | | Fiscal 2010 guidance for Adjusted EBITDA from continuing operations is raised to new range of $67.0 million to $69.0 million; capital expenditures updated to $16.0 million. |
SCOTTSDALE, Ariz.(May 10, 2010) – Rural/Metro Corporation (NASDAQ: RURL), a leading provider of ambulance and private fire protection services, today announced strong financial results for its fiscal 2010 third quarter ended March 31, 2010.
“We are pleased to announce solid growth in the third fiscal quarter, supported by reduced uncompensated care, rate increases, growth in transport volume and strong cash flows,” said Conrad A. Conrad, interim President and Chief Executive Officer. “Following strong year-to-date performance, we have raised our fiscal 2010 guidance for Adjusted EBITDA from continuing operations to a range of $67.0 million to $69.0 million from the previous range of $63.0 million to $65.0 million.”
Results of Operations for the Fiscal 2010 Third Quarter Ended March 31, 2010
For the quarter ended March 31, 2010, the Company generated net revenue of $133.1 million, an increase of 7.5%, or $9.2 million, compared to $123.9 million for the same period last year. The increase was attributable primarily to same-service-area growth, which included reductions in uncompensated care and rate increases, as well as a 4.5% increase in total transport volume in the quarter.
Payroll and employee benefits expense for the third fiscal quarter was $80.0 million, or 60.1% of net revenue, compared to $76.0 million, or 61.3% of net revenue, in the same period of the prior year. The year-over-year increase in payroll dollars incurred was driven primarily by additional labor hours deployed in response to the increase in ambulance transport volume and higher expenses for employee health insurance.
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Other operating expenses for the third fiscal quarter were $31.4 million, or 23.6% of net revenue, compared to $28.0 million, or 22.6% of net revenue for the same prior-year period. The year-over-year increase is attributable primarily to increases in professional fees and vehicle and equipment expense related to growth in transport volume and fuel prices.
General and auto liability insurance expense for the third fiscal quarter was $3.4 million, or a decrease of $1.5 million, when compared to $4.9 million for the same period of the prior year. There were no actuarial adjustments recorded in the third quarter.
During the third quarter, the Company redeemed $4.0 million of 9.875% Senior Subordinated Notes (the “Notes”) that remained outstanding following the Company’s November 2009 tender offer. The loss on debt extinguishment related to those remaining Notes was $0.3 million.
Including the $0.3 million loss on debt extinguishment, third-quarter net income attributable to Rural/Metro was $3.8 million, or diluted EPS of $0.15, compared to net income of $1.0 million and EPS of $0.04 for the third quarter of the prior year. Excluding the $0.3 million loss on debt extinguishment and its related tax effect, quarterly net income would have been $4.5 million, or diluted EPS of $0.18.
Adjusted EBITDA from continuing operations for the third quarter increased 22.5% to $17.9 million compared to $14.7 million for the same period in fiscal 2009. Adjusted EBITDA from continuing operations excludes the effect of the quarterly loss on debt extinguishment of $0.3 million as well as share-based compensation expense of $87,000.
Results of Operations for the Nine Months Ended March 31, 2010
For the nine months ended March 31, 2010, the Company generated net revenue of $396.9 million, an increase of 8.8% compared to $364.9 million for the same period last year. The increase was attributable primarily to same-service-area growth, which included reductions in uncompensated care and rate increases, as well as a 3.6% increase in total transport volume.
Payroll and employee benefits expense for the nine-month period was $241.8 million, or 60.9% of net revenue, compared to $225.1 million, or 61.7% of net revenue for the same period of the prior year. The year-over-year increase in payroll dollars incurred was driven primarily by additional labor hours driven as a result of increased transport volume, and higher expenses related to employee health and workers’ compensation insurance.
Other operating expenses for the nine-month period were $90.1 million, or 22.7% of net revenue, compared to $84.6 million, or 23.2% of net revenue for the same period of the prior year. The year-over-year difference in actual dollars spent was attributable primarily to increases in operating equipment and supplies related to higher transport volume, as well as additional professional fees. These increases were offset by a year-to-date decrease in fuel expense.
General and auto liability insurance expense for the first nine months of fiscal 2010 was $12.0 million, compared to $10.6 million for the same prior-year period. The year-over-year variance was driven primarily by a $1.1 million increase in current-year claims costs and a $0.3 million net increase in actuarial adjustments.
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Net income attributable to Rural/Metro for the first nine months of fiscal 2010 including the $14.2 million loss on debt extinguishment, was $1.9 million, or diluted EPS of $0.08, compared to net income of $2.8 million and diluted EPS of $0.11 in the first nine months of fiscal 2009. Excluding the $14.2 million loss on debt extinguishment, net income for the nine-month period would have been $10.6 million, or diluted EPS of $0.42.
Cash flows for the period remained strong, with year-to-date net cash provided by operating activities of $38.3 million, compared to $37.3 million for the same prior-year period.
Adjusted EBITDA from continuing operations for the first nine months of fiscal 2010 increased 19.3% to $52.3 million, compared to $43.8 million for the same period in fiscal 2009. Adjusted EBITDA from continuing operations excludes the effect of the year-to-date loss on debt extinguishment of $14.2 million as well as share-based compensation expense of $0.4 million.
Adjusted EBITDA from continuing operations, net income and diluted EPS attributable to Rural/Metro, in each instance excluding the loss on debt extinguishment are key indicators management uses to evaluate operating performance. While Adjusted EBITDA from continuing operations, net income and diluted EPS attributable to Rural/Metro, in each instance 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 these measures are 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 and nine months ended March 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 nine months ended March 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) during each of the five most recent quarters:
| | • | | The quarterly increase in transport volume when compared to the same prior-year period was driven primarily by growth in non-emergency transports. |
| | • | | APC improvement of $20 per transport when compared to the fiscal 2009 third quarter was primarily due to continued reductions in uncompensated care and rate increases. Uncompensated care as a percentage of gross revenue decreased to 12.9%, as compared to 13.7% for the third quarter of fiscal 2009 and 13.4% for the second quarter of fiscal 2010. APC represents average cash collected per ambulance transport during the period. |
| | • | | DSO improved by 11 days when compared to the third quarter of fiscal 2009 and two days when compared to the second quarter of fiscal 2010. This improvement was related primarily to the Company’s ongoing national implementation of its electronic patient care record system, as well as overall billing and collections improvements. |
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| | | | | | | | | | | | | | | |
| | | Q3 ’09
(3/31/09) | | Q4 ’09
(6/30/09) | | Q1 ’10
(9/30/09) | | Q2 ’10
(12/31/09) | | Q3 ’10
(3/31/10) |
Medical Transports (1) | | | 265,376 | | | 266,357 | | | 268,755 | | | 271,396 | | | 277,276 |
Average Patient Charge (APC) (2) | | $ | 374 | | $ | 378 | | $ | 389 | | $ | 397 | | $ | 394 |
Days Sales Outstanding (DSO) (3) | | | 55 | | | 52 | | | 49 | | | 46 | | | 44 |
| (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. |
Fiscal 2010 Guidance Raised
Today, the Company raised guidance for Adjusted EBITDA from continuing operations for the 12 months ending June 30, 2010 to a range of $67.0 million to $69.0 million. Guidance for fiscal 2010 capital expenditures was updated to $16.0 million.
Conference Call to Discuss Results
The Company will discuss results in a conference call today beginning at 8 a.m. Pacific/11 a.m. Eastern. To access the conference call, dial 877-383-7417 (domestic) or 678-904-3972 (international). The call also will be broadcast and archived on the Company’s web site atwww.ruralmetro.com. A telephone replay will be available approximately two hours after the conclusion of the call through 11:59 p.m. Eastern time on May 13, 2010. To access the replay, dial 800-642-1687. From international locations, dial 706-645-9291. The required pass code is 67520725.
About Rural/Metro
Rural/Metro Corporation provides emergency and non-emergency ambulance services and private fire protection services in 20 states and approximately 400 communities throughout the United States. For more information, visit the Company’s web site atwww.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
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or business prospects. We may also make forward-looking statements in our 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. These forward-looking statements are subject to numerous risks, uncertainties and assumptions, including those relating to the Company’s future business prospects, 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.
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(RURL/F)
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RURAL/METRO CORPORATION
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands, except share data)
| | | | | | | | |
| | | March 31,
2010 | | | June 30,
2009 | |
ASSETS | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 33,137 | | | $ | 37,108 | |
Accounts receivable, net | | | 59,788 | | | | 64,355 | |
Inventories | | | 7,802 | | | | 8,535 | |
Deferred income taxes | | | 24,407 | | | | 25,032 | |
Prepaid expenses and other | | | 4,945 | | | | 19,895 | |
| | | | | | | | |
Total current assets | | | 130,079 | | | | 154,925 | |
| | |
Property and equipment, net | | | 48,487 | | | | 49,096 | |
Goodwill | | | 37,700 | | | | 37,700 | |
Restricted cash | | | 17,842 | | | | — | |
Deferred income taxes | | | 41,669 | | | | 41,678 | |
Other assets | | | 10,465 | | | | 11,556 | |
| | | | | | | | |
Total assets | | $ | 286,242 | | | $ | 294,955 | |
| | | | | | | | |
| | |
LIABILITIES AND DEFICIT | | | | | | | | |
Current liabilities: | | | | | | | | |
Accounts payable | | $ | 16,027 | | | $ | 14,883 | |
Accrued liabilities | | | 51,322 | | | | 57,588 | |
Deferred revenue | | | 21,323 | | | | 21,585 | |
Current portion of long-term debt | | | 2,675 | | | | 199 | |
| | | | | | | | |
Total current liabilities | | | 91,347 | | | | 94,255 | |
| | |
Long-term debt, net of current portion | | | 266,373 | | | | 277,110 | |
Other long-term liabilities | | | 29,436 | | | | 28,497 | |
| | | | | | | | |
Total liabilities | | | 387,156 | | | | 399,862 | |
| | | | | | | | |
| | |
Rural/Metro Stockholders’ deficit: | | | | | | | | |
Common stock, $0.01 par value, 40,000,000 shares authorized, 25,248,400 and 24,852,726 shares issued and outstanding at March 31, 2010 and June 30, 2009, respectively | | | 252 | | | | 248 | |
Additional paid-in capital | | | 156,533 | | | | 155,187 | |
Treasury stock, 96,246 shares at both March 31, 2010 and June 30, 2009 | | | (1,239 | ) | | | (1,239 | ) |
Accumulated other comprehensive loss | | | (2,592 | ) | | | (2,597 | ) |
Accumulated deficit | | | (256,423 | ) | | | (258,331 | ) |
| | | | | | | | |
Total Rural/Metro stockholders’ deficit | | | (103,469 | ) | | | (106,732 | ) |
| | |
Noncontrolling interest | | | 2,555 | | | | 1,825 | |
| | | | | | | | |
Total deficit | | | (100,914 | ) | | | (104,907 | ) |
| | | | | | | | |
Total liabilities and deficit | | $ | 286,242 | | | $ | 294,955 | |
| | | | | | | | |
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RURAL/METRO CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended March 31, | | | Nine Months Ended March 31, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
Net revenue | | $ | 133,137 | | | $ | 123,865 | | | $ | 396,909 | | | $ | 364,911 | |
| | | | | | | | | | | | | | | | |
| | | | |
Operating expenses: | | | | | | | | | | | | | | | | |
Payroll and employee benefits | | | 79,951 | | | | 75,980 | | | | 241,830 | | | | 225,113 | |
Depreciation and amortization | | | 3,814 | | | | 3,605 | | | | 11,445 | | | | 10,514 | |
Other operating expenses | | | 31,449 | | | | 28,033 | | | | 90,068 | | | | 84,618 | |
General/auto liability insurance expense | | | 3,396 | | | | 4,856 | | | | 11,981 | | | | 10,618 | |
Gain on sale of assets | | | (113 | ) | | | (165 | ) | | | (515 | ) | | | (404 | ) |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 118,497 | | | | 112,309 | | | | 354,809 | | | | 330,459 | |
| | | | | | | | | | | | | | | | |
Operating income | | | 14,640 | | | | 11,556 | | | | 42,100 | | | | 34,452 | |
Interest expense | | | (7,116 | ) | | | (7,749 | ) | | | (21,761 | ) | | | (23,325 | ) |
Interest income | | | 38 | | | | 107 | | | | 169 | | | | 255 | |
Loss on debt extinguishment | | | (312 | ) | | | — | | | | (14,154 | ) | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
Income from continuing operations before income taxes | | | 7,250 | | | | 3,914 | | | | 6,354 | | | | 11,382 | |
Income tax provision | | | (2,664 | ) | | | (2,090 | ) | | | (2,315 | ) | | | (6,385 | ) |
Income from continuing operations | | | 4,586 | | | | 1,824 | | | | 4,039 | | | | 4,997 | |
Loss from discontinued operations, net of income taxes | | | (232 | ) | | | (260 | ) | | | (501 | ) | | | (848 | ) |
| | | | | | | | | | | | | | | | |
Net income | | $ | 4,354 | | | $ | 1,564 | | | $ | 3,538 | | | $ | 4,149 | |
| | | | | | | | | | | | | | | | |
Net income attributable to noncontrolling interest | | | (595 | ) | | | (577 | ) | | | (1,630 | ) | | | (1,319 | ) |
| | | | | | | | | | | | | | | | |
Net income attributable to Rural/Metro | | $ | 3,759 | | | $ | 987 | | | $ | 1,908 | | | $ | 2,830 | |
| | | | | | | | | | | | | | | | |
Income (loss) per share: | | | | | | | | | | | | | | | | |
Basic - | | | | | | | | | | | | | | | | |
Income from continuing operations attributable to Rural/Metro | | $ | 0.16 | | | $ | 0.05 | | | $ | 0.10 | | | $ | 0.15 | |
Loss from discontinued operations attributable to Rural/Metro | | $ | (0.01 | ) | | | (0.01 | ) | | $ | (0.02 | ) | | | (0.04 | ) |
| | | | | | | | | | | | | | | | |
Net income attributable to Rural/Metro | | $ | 0.15 | | | $ | 0.04 | | | $ | 0.08 | | | $ | 0.11 | |
| | | | | | | | | | | | | | | | |
Diluted - | | | | | | | | | | | | | | | | |
Income from continuing operations attributable to Rural/Metro | | $ | 0.16 | | | $ | 0.05 | | | $ | 0.10 | | | $ | 0.15 | |
Loss from discontinued operations attributable to Rural/Metro | | $ | (0.01 | ) | | | (0.01 | ) | | $ | (0.02 | ) | | | (0.04 | ) |
| | | | | | | | | | | | | | | | |
Net income attributable to Rural/Metro | | $ | 0.15 | | | $ | 0.04 | | | $ | 0.08 | | | $ | 0.11 | |
| | | | | | | | | | | | | | | | |
Average number of common shares outstanding - Basic | | | 25,247 | | | | 24,843 | | | | 25,057 | | | | 24,830 | |
| | | | | | | | | | | | | | | | |
Average number of common shares outstanding - Diluted | | | 25,450 | | | | 24,897 | | | | 25,325 | | | | 24,907 | |
| | | | | | | | | | | | | | | | |
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RURAL/METRO CORPORATION
RECONCILIATION OF NET INCOME EXCLUDING LOSS ON DEBT EXTINGUISHMENT
(unaudited)
(in thousands, except per share amounts)
| | | | | | | | | | | | | |
| | | Three Months Ended March 31, | | Nine Months Ended March 31, |
| | | 2010 | | 2009 | | 2010 | | | 2009 |
Net income attributable to Rural/Metro | | $ | 3,759 | | $ | 987 | | $ | 1,908 | | | $ | 2,830 |
| | | | | | | | | | | | | |
Loss on debt extinguishment | | | 312 | | | — | | | 14,154 | | | | — |
Tax effect of loss on debt extinguishment | | | 424 | | | — | | | (5,441 | ) | | | — |
Adjusted net income attributable to Rural Metro | | | 4,495 | | | 987 | | | 10,621 | | | | 2,830 |
| | | | | | | | | | | | | |
Income per share: | | | | | | | | | | | | | |
Basic - | | | | | | | | | | | | | |
Net income attributable to Rural/Metro | | $ | 0.18 | | $ | 0.04 | | $ | 0.42 | | | $ | 0.11 |
| | | | | | | | | | | | | |
Diluted - | | | | | | | | | | | | | |
Net income attributable to Rural/Metro | | $ | 0.18 | | $ | 0.04 | | $ | 0.42 | | | $ | 0.11 |
| | | | | | | | | | | | | |
Average number of common shares outstanding - Basic | | | 25,247 | | | 24,843 | | | 25,057 | | | | 24,830 |
| | | | | | | | | | | | | |
Average number of common shares outstanding - Diluted | | | 25,450 | | | 24,897 | | | 25,325 | | | | 24,907 |
| | | | | | | | | | | | | |
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RURAL/METRO CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended March 31, 2010 and 2009
(unaudited)
(in thousands)
| | | | | | | | |
| | | 2010 | | | 2009 | |
Cash flows from operating activities: | | | | | | | | |
Net income | | $ | 3,538 | | | $ | 4,149 | |
Adjustments to reconcile net income to net cash provided by operating activities - | | | | | | | | |
Depreciation and amortization | | | 11,566 | | | | 10,871 | |
Non-cash adjustments to insurance claims reserves | | | 2,149 | | | | 129 | |
Accretion of 12.75% Senior Discount Notes | | | 7,769 | | | | 7,334 | |
Accretion of Term Loan Due 2014 | | | 325 | | | | — | |
Deferred income taxes | | | 1,160 | | | | 3,790 | |
Excess tax benefits from share-based compensation | | | (529 | ) | | | — | |
Amortization of debt issuance costs | | | 1,280 | | | | 1,632 | |
Non-cash loss on debt extinguishment | | | 2,345 | | | | — | |
Loss on disposal of property and equipment | | | 48 | | | | 58 | |
Gain on property insurance settlement | | | (119 | ) | | | — | |
Share-based compensation expense | | | 391 | | | | 185 | |
Change in assets and liabilities - | | | | | | | | |
Accounts receivable | | | 4,567 | | | | 6,713 | |
Inventories | | | 733 | | | | (417 | ) |
Prepaid expenses and other | | | 1,876 | | | | 3,240 | |
Other assets | | | (4,053 | ) | | | 724 | |
Accounts payable | | | (197 | ) | | | (1,921 | ) |
Accrued liabilities | | | 6,346 | | | | 1,769 | |
Deferred revenue | | | (262 | ) | | | (380 | ) |
Other liabilities | | | (596 | ) | | | (589 | ) |
| | | | | | | | |
Net cash provided by operating activities | | | 38,337 | | | | 37,287 | |
| | | | | | | | |
Cash flows from investing activities: | | | | | | | | |
Capital expenditures | | | (9,391 | ) | | | (12,485 | ) |
Proceeds from property insurance settlement | | | 119 | | | | — | |
Proceeds from the sale/disposal of property and equipment | | | 8 | | | | — | |
Increase in restricted cash | | | (17,842 | ) | | | — | |
| | | | | | | | |
Net cash used in investing activities | | | (27,106 | ) | | | (12,485 | ) |
| | | | | | | | |
Cash flows from financing activities: | | | | | | | | |
Payments on Term Loan B | | | (66,000 | ) | | | (12,000 | ) |
Payments on Senior Subordinated Notes | | | (125,000 | ) | | | — | |
Payments on Term Loan Due 2014 | | | (450 | ) | | | — | |
Payments on other debt and capital leases | | | (174 | ) | | | (399 | ) |
Borrowings under Term Loan Due 2014 | | | 178,200 | | | | — | |
Debt issuance costs | | | (1,837 | ) | | | — | |
Excess tax benefits from share-based compensation | | | 529 | | | | — | |
Net proceeds from issuance of common stock under share-based compensation plans | | | 430 | | | | 2 | |
Distributions to noncontrolling interest | | | (900 | ) | | | (500 | ) |
| | | | | | | | |
Net cash used in financing activities | | | (15,202 | ) | | | (12,897 | ) |
| | | | | | | | |
Increase (decrease) in cash and cash equivalents | | | (3,971 | ) | | | 11,905 | |
Cash and cash equivalents, beginning of year | | | 37,108 | | | | 15,907 | |
| | | | | | | | |
Cash and cash equivalents, end of year | | $ | 33,137 | | | $ | 27,812 | |
| | | | | | | | |
| | |
Supplemental disclosure of non-cash operating activities: | | | | | | | | |
Increase (decrease) in other current assets and accrued liabilities for general liability insurance claim | | $ | (13,073 | ) | | $ | 1,334 | |
| | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | |
Property and equipment funded by liabilities | | $ | 1,907 | | | $ | 1,656 | |
| | |
Supplemental cash flow information: | | | | | | | | |
Cash paid for interest | | $ | 14,181 | | | $ | 17,503 | |
Cash paid for income taxes, net | | $ | 1,538 | | | $ | 806 | |
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RURAL/METRO CORPORATION
RECONCILIATION OF INCOME FROM CONTINUING AND DISCONTINUED OPERATIONS TO EBITDA
(unaudited)
(in thousands)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
March 31, | | | Nine Months Ended
March 31, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
Income from continuing operations | | $ | 4,586 | | | $ | 1,824 | | | $ | 4,039 | | | $ | 4,997 | |
Add (deduct): | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | 3,814 | | | | 3,605 | | | | 11,445 | | | | 10,514 | |
Interest expense | | | 7,116 | | | | 7,749 | | | | 21,761 | | | | 23,325 | |
Interest income | | | (38 | ) | | | (107 | ) | | | (169 | ) | | | (255 | ) |
Income tax provision | | | 2,664 | | | | 2,090 | | | | 2,315 | | | | 6,385 | |
Income attributable to noncontrolling interest | | | (595 | ) | | | (577 | ) | | | (1,630 | ) | | | (1,319 | ) |
| | | | | | | | | | | | | | | | |
EBITDA from continuing operations attributable to Rural/Metro | | | 17,547 | | | | 14,584 | | | | 37,761 | | | | 43,647 | |
| | | | | | | | | | | | | | | | |
| | | | |
Add (deduct): | | | | | | | | | | | | | | | | |
Share-based compensation expense | | | 87 | | | | 68 | | | | 391 | | | | 185 | |
Loss on debt extinguishment | | | 312 | | | | — | | | | 14,154 | | | | — | |
| | | | | | | | | | | | | | | | |
Adjusted EBITDA from continuing operations attributable to Rural/Metro | | | 17,946 | | | | 14,652 | | | | 52,306 | | | | 43,832 | |
| | | | | | | | | | | | | | | | |
| | | | |
Loss from discontinued operations | | | (232 | ) | | | (260 | ) | | | (501 | ) | | | (848 | ) |
Add (deduct): | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | — | | | | 85 | | | | 121 | | | | 358 | |
Income tax benefit | | | (65 | ) | | | (53 | ) | | | (339 | ) | | | (524 | ) |
| | | | | | | | | | | | | | | | |
EBITDA from discontinued operations attributable to Rural/Metro | | | (297 | ) | | | (228 | ) | | | (719 | ) | | | (1,014 | ) |
| | | | | | | | | | | | | | | | |
Total adjusted EBITDA attributable to Rural/Metro | | $ | 17,649 | | | $ | 14,424 | | | $ | 51,587 | | | $ | 42,818 | |
| | | | | | | | | | | | | | | | |
10
