![]() Annual Meeting of Stockholders December 8, 2010 EXHIBIT 99.1 |
![]() 2 Annual Meeting of Stockholders – 12/8/10 Forward-Looking Statements Nothing contained in this presentation is, or should be relied upon as, a promise or representation as to the future. Any projections contained herein or otherwise made available are based on management’s analysis of information available at the time this presentation was prepared and on assumptions and perspectives that may be unique to Rural/Metro management, which may or may not prove to be correct. There can be no representation, warranty or other assurance as to the accuracy or completeness of such projections or that any such projections will be realized. Recipients of this presentation should conduct their own investigation and analysis of the business, data and property described. |
![]() 3 Annual Meeting of Stockholders – 12/8/10 Management Introduction Michael DiMino, President & CEO • Mr. DiMino was named President & Chief Executive Officer in June 2010. • From 2001 to 2005, Mr. DiMino was President, Chief Executive Officer and Director of LESCO, Inc. (NASDAQ: LSCO), a $585 million public company that was the nation’s largest distributor of landscape and lawn care products to lawn care professionals (now an operating company of John Deere). • Mr. DiMino received his Bachelor of Arts, Liberal Arts, Economics Major, from Marquette University. Bryan Gibson, Executive Vice President & COO • Mr. Gibson was named Executive Vice President & Chief Operating Officer in June 2010. • Mr. Gibson joined the Company in 1997 as Director of Business Development for the Southern region prior to his appointments in 2001 as Division General Manager and in 2005 as President of the South segment. • Mr. Gibson founded Priority EMS, a 911 and non-emergency ambulance service in Northern Mississippi and Western Tennessee that became the largest private ambulance service in the Mid-South and was acquired in 1997 by Rural/Metro Corporation. Kristi Ponczak, Senior Vice President & CFO • Mrs. Ponczak has served as Senior Vice President, Chief Financial Officer, Treasurer and Secretary since 2006. • She joined Rural/Metro in 1998 as Director of Financial Planning until 2004 when she was promoted to Vice President and Treasurer. • Mrs. Ponczak is a certified public accountant and has a Bachelor of Science degree in Accounting from Arizona State University. |
![]() 4 Annual Meeting of Stockholders – 12/8/10 Management Introduction Christopher Kevane, Senior Vice President & General Counsel • Mr. Kevane was promoted to Senior Vice President and General Counsel in March 2010. Previously he served as Managing Director and General Council since 2006. • Prior to joining Rural/Metro, Mr. Kevane was an attorney with the international law firm of Squire, Sanders and Dempsey L.L.P. • He holds a Juris Doctor from Arizona State University’s Sandra Day O’Connor College of Law and a Bachelor of Science in Finance from ASU’s W.P. Carey School of Business. Jeffrey Perry, Senior Vice President & Chief Information Officer • Mr. Perry was promoted to Senior Vice President and Chief Information Officer in Jule 2010. Prior to that, he served as Chief Information Officer since 2007. • From 2005-2007, Mr. Perry was Vice President/Chief Information Officer for Giant Industries. • Mr. Perry holds a Bachelor of Science in Organizational Management from Colorado Christian University and a Masters Degree in Information Technology from American Intercontinental University. Maureen Thompson, Vice President of Human Resources • Ms. Thompson joined Rural/Metro in July 2010 as Vice President of Human Resources to lead strategic and corporate human resources throughout the enterprise. • Prior to joining Rural/Metro, Ms. Thompson was Retail HR Strategic Business Partner for The Goodyear Tire and Rubber Company. • Ms. Thompson holds a Bachelor of Arts in Business Administration/Marketing from Michigan State University. |
![]() 5 Annual Meeting of Stockholders – 12/8/10 Company Overview Since 1948, grown into leading national provider of ground ambulance and private fire protection services. Serving more than 400 communities in 20 states. 8,150 employees and 1,800 vehicles Since 2008, annual net revenue has increased at a compounded annual growth rate of 4%. From $482 million in ‘08 to $540.4 million at 9/30/10 (LTM) Since 2008, annual adjusted EBITDA has increased at a compounded annual growth rate of 14.2%. Fiscal 2011 EBITDA guidance is $74.0 million to $76.0 million. Represents 45% increase over the last 3 years. Fiscal 2011 capital expenditures expected to be $18M-$20M. |
![]() 6 Annual Meeting of Stockholders – 12/8/10 Investor Highlights Multi-year, overlapping contracts and strong retention rates. Capacity to increase utilization and drive margin expansion. Organic & strategic growth opportunities due to highly fragmented market. Commitment to technology to standardize processes and improve operating efficiencies. Strong EBITDA and cash-flow generation. Population of Americans 65+ projected to increase 5x faster than younger population in next 10 years. Nearly 40M seniors in U.S.; by 2030, number is expected to double as Boomers reach age 65. 43% of Rural/Metro’s patients are age 65+ -- trending upward. Strong Business Model Demographics Support Demand for Services Customer Acceptance Outsourced ambulance services provide viable and economical option to municipal and hospital-based EMS systems. Increased demand for non-emergency ambulance services. Trend: Hospital CEOs choosing to outsource. Reimbursement Environment Favorable impact related to healthcare reform, as more Americans have access to healthcare insurance. All payers are a “wait and see”on specific impact and administration of healthcare dollars under federal reform programs. Continuing to request commercial rate increases to meet rising costs of providing services. |
![]() U.S. Ambulance Spending Private Provider Market Share $14.0 Billion – All Transports $4.8 Billion – Private Sector Transports Sources: U.S. Census Bureau; Coalition of Advanced Emergency Medical Systems; Centers for Medicare and Medicaid Services; American Ambulance Association; Journal of Emergency Medical Services 200 City Survey. Partnerships With Municipal Departments & Hospital-Based Services Provide Market Expansion Opportunities 54% 34% 5% 3% 4% Gov't. Private Hospital Pub. Utility Other 21% 10% 69% AMR Rural/Metro Other 7 Annual Meeting of Stockholders – 12/8/10 |
![]() 8 Annual Meeting of Stockholders – 12/8/10 Ambulance Utilization by Age 6% 10% 12% 19% 36% 41% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% <15 Years 15-24 Years 25-44 Years 45-64 Years >65 Years >75 Years Source: GAO More than 43% of R/M Patients are Over 65 |
![]() 9 Annual Meeting of Stockholders – 12/8/10 Rural/Metro Strategic Model Best-in-Class Operations Superior Service & Infrastructure – Standardization of key systems, including billing, purchasing and contract compliance. Advanced Technology – Dispatch, electronic patient care reporting (ePCR) platform and proprietary billing system. Best People – Highly experienced executive and operational management team, along with finest paramedics, EMTs and fire professionals. |
![]() 10 Annual Meeting of Stockholders – 12/8/10 Rural/Metro Operating Zones |
![]() 11 Annual Meeting of Stockholders – 12/8/10 Organic & Strategic Growth Tactics 911 RFPs Identify 911 emergency contracts with municipalities that meet our profit guidelines. Seek opportunities in new and existing markets Complete detailed financial evaluation prior to bid response. General Transport Facility-based non-emergency transports that do not require an RFP. Opportunities for growth in contiguous and new geographies initiated as a result of favorable market data. Acquisitions Disciplined approach to identifying, selecting and purchasing highly accretive, existing ambulance operating companies. Evaluate transformative new lines of business, including fire protection, home health services, etc. |
![]() Growth Opportunities/ Revenue Pipeline $200 M 12 Annual Meeting of Stockholders – 12/8/10 Active Acquisitions $89 M Target Acquisitions $410 M Startups $66 M RFP’s $126 M |
![]() 13 Annual Meeting of Stockholders – 12/8/10 Proprietary Billing & Process Technology Computer-Aided Dispatch System: Electronic, real-time dispatching to optimize contractual response time performance Paperless, electronic patient record. Artificial intelligence prompts paramedic based on medical protocols to accurately document medical necessity. Ensures higher rate of reimbursement Accuracy, completeness, proof of medical necessity. Translates into: Reduced uncompensated care, decreased DSO. Core operating strength Automated Vehicle Location (AVL): Knowing vehicle locations creates dispatching efficiencies. Electronic Patient Care Report System (ePCR) Proprietary Billing System DISPATCH & LOGISTICS MEDICAL NECESSITY |
![]() 14 Annual Meeting of Stockholders – 12/8/10 Debt Structure Total Leverage 6.7x 4.7x 3.9x 3.6x 5.3x 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 2007 2008 2009 2010 Est. FY '11 * Based on FY ’11 Guidance * Company remains focused on deleveraging through debt repayment and EBITDA creation. Description Term Balance Term Loan 6 yr through 2016 LIBOR + 4.25% (1.75% LIBOR floor ) $270M Revolver 5 yr through 2015 $85M Undrawn *Letter of Credit Sub-Line $60M |