EXHIBIT 99.1
RURAL/METRO CORPORATION
PROFORMA STATEMENT OF INCOME (UNAUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2004
(in thousands, other than per-share amounts)
Rural/Metro Discontinued Pro Forma
Corporation Operations Adjustments (1) Combined
--------------- --------------- -------------- --------------
Net revenue $ 273,680 $ (5,883) $ - $ 267,797
--------------- --------------- -------------- --------------
Operating expenses
Payroll and employee benefits 146,149 (4,237) - 141,912
Provision for doubtful accounts 42,054 - - 42,054
Depreciation and amortization 5,677 (112) - 5,565
Other operating expenses 57,083 (732) - 56,351
--------------- --------------- --------------- ---------------
Total operating expenses 250,963 (5,081) - 245,882
--------------- --------------- --------------- ---------------
Operating income 22,717 (802) - 21,915
Interest expense (14,834) - - (14,834)
Interest income 179 - - 179
--------------- --------------- --------------- ---------------
Income from continuing operations before income taxes
and minority interest 8,062 (802) - 7,260
Income tax provision (523) - - (523)
Minority interest 28 - - 28
--------------- --------------- --------------- ---------------
Income from continuing operations $ 7,567 $ (802) $ - $ 6,765
=============== =============== =============== ===============
Income per share from continuing operations:
Basic $ 0.34 $ 0.31
=============== ===============
Diluted $ 0.32 $ 0.29
=============== ===============
Average number of shares outstanding:
Basic 22,100 22,100
=============== ===============
Diluted 23,351 23,351
=============== ===============
(1) The proforma statement of income gives effect to the contract termination
in one medical transportation and related services area as if the
termination of the contract occurred on July 1, 2001. The results of the
one medical transportation and related services area have been removed from
the pro forma statement of income.
RURAL/METRO CORPORATION
PROFORMA STATEMENT OF INCOME (UNAUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 2003
(in thousands, other than per-share amounts)
Rural/Metro Discontinued Pro Forma
Corporation Operations Adjustments (1) Combined
-------------------- ---------------- ----------------- -----------------
Net revenue $ 259,559 $ (5,861) $ - $ 253,698
-------------------- ---------------- ----------------- -----------------
Operating expenses
Payroll and employee benefits 137,731 (4,225) - 133,506
Provision for doubtful accounts 41,450 - - 41,450
Depreciation and amortization 5,603 (125) - 5,478
Other operating expenses 56,238 (740) - 55,498
-------------------- ---------------- ----------------- -----------------
Total operating expenses 241,022 (5,090) - 235,932
-------------------- ---------------- ----------------- -----------------
Operating income 18,537 (771) - 17,766
Interest expense (15,208) - - (15,208)
Interest income 51 - - 51
-------------------- ---------------- ----------------- -----------------
Income from continuing operations before income taxes
and minority interest 3,380 (771) - 2,609
Income tax provision (189) - - (189)
Minority interest (463) - - (463)
-------------------- ---------------- ----------------- -----------------
Income from continuing operations $ 2,728 $ (771) $ - $ 1,957
==================== ================ ================= =================
Loss per share from continuing operations:
Basic $ (0.01) $ (0.06)
==================== =================
Diluted $ (0.01) $ (0.06)
==================== =================
Average number of shares outstanding:
Basic 16,460 16,460
==================== =================
Diluted 16,460 16,460
==================== =================
(1) The proforma statement of income gives effect to the contract termination
in one medical transportation and related services area as if the
termination of the contract occurred on July 1, 2001. The results of the
one medical transportation and related services area have been removed from
the pro forma statement of income.
RURAL/METRO CORPORATION
PROFORMA STATEMENT OF INCOME (UNAUDITED)
FOR THE YEAR ENDED JUNE 30, 2004
(in thousands, other than per-share amounts)
Rural/Metro Discontinued Pro Forma
Corporation Operations Adjustments (1) Combined
------------------ -------------- -------------- ------------------
Net revenue $ 526,603 $ (11,685) $ - $ 514,918
------------------ -------------- -------------- ------------------
Operating expenses
Payroll and employee benefits 277,549 (8,434) - 269,115
Provision for doubtful accounts 87,268 - - 87,268
Depreciation and amortization 11,404 (247) - 11,157
Other operating expenses 114,855 (1,478) - 113,377
------------------ -------------- -------------- ------------------
Total operating expenses 491,076 (10,159) - 480,917
------------------ -------------- -------------- ------------------
Operating income 35,527 (1,526) - 34,001
Interest expense (29,243) - - (29,243)
Interest income 97 - - 97
------------------ -------------- -------------- ------------------
Income from continuing operations before income taxes
and minority interest 6,381 (1,526) - 4,855
Income tax provision (300) - - (300)
Minority interest 475 - - 475
------------------ -------------- -------------- ------------------
Income from continuing operations $ 6,556 $ (1,526) $ - $ 5,030
================== ============== ============== ==================
Income per share from continuing operations:
Basic $ 0.54 $ 0.46
================== ==================
Diluted $ 0.30 $ 0.23
================== ==================
Average number of shares outstanding:
Basic 16,645 16,645
================== ==================
Diluted 21,817 21,817
================== ==================
(1) The proforma statement of income gives effect to the contract termination
in one medical transportation and related services area as if the
termination of the contract occurred on July 1, 2001. The results of the
one medical transportation and related services area have been removed from
the pro forma statement of income.
RURAL/METRO CORPORATION
PROFORMA STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE YEAR ENDED JUNE 30, 2003
(in thousands, other than per-share amounts)
Rural/Metro Discontinued Pro Forma
Corporation Operations Adjustments (1) Combined
------------------ ----------------- --------------- ----------------
Net revenue $ 484,639 $ (12,523) $ - $ 472,116
------------------ ----------------- --------------- ----------------
Operating expenses
Payroll and employee benefits 266,713 (8,848) - 257,865
Provision for doubtful accounts 77,184 - - 77,184
Depreciation and amortization 12,587 (768) - 11,819
Other operating expenses 107,574 (1,992) - 105,582
Restructing and other (1,421) - - (1,421)
------------------ ----------------- --------------- ----------------
Total operating expenses 462,637 (11,608) - 451,029
------------------ ----------------- --------------- ----------------
Operating income 22,002 (915) - 21,087
Interest expense (28,012) - - (28,012)
Interest income 197 - - 197
------------------ ----------------- --------------- ----------------
Loss from continuing operations before income taxes
and minority interest (5,813) (915) - (6,728)
Income tax provision (118) - - (118)
Minority interest (1,507) - - (1,507)
------------------ ----------------- --------------- ----------------
Loss from continuing operations $ (7,438) $ (915) $ - $ (8,353)
================== ================= =============== ================
Loss per share from continuing operations:
Basic $ (0.69) $ (0.74)
================== ================
Diluted $ (0.69) $ (0.74)
================== ================
Average number of shares outstanding:
Basic 16,116 16,116
================== ================
Diluted 16,116 16,116
================== ================
(1) The proforma statement of income gives effect to the contract termination
in one medical transportation and related services area as if the
termination of the contract occurred on July 1, 2001. The results of the
one medical transportation and related services area have been removed from
the pro forma statement of income.
RURAL/METRO CORPORATION
PROFORMA STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE YEAR ENDED JUNE 30, 2002
(in thousands, other than per-share amounts)
Rural/Metro Discontinued Pro Forma
Corporation Operations Adjustments (1) Combined
---------------- --------------- --------------- --------------
Net revenue $ 453,151 $ (11,619) $ - $ 441,532
---------------- --------------- --------------- --------------
Operating expenses
Payroll and employee benefits 250,724 (8,154) - 242,570
Provision for doubtful accounts 70,689 - - 70,689
Depreciation and amortization 14,443 (884) - 13,559
Other operating expenses 96,581 (1,949) - 94,632
Restructing and other (626) - - (626)
---------------- --------------- --------------- --------------
Total operating expenses 431,811 (10,987) - 420,824
---------------- --------------- --------------- --------------
Operating income 21,340 (632) - 20,708
Interest expense (25,462) - - (25,462)
Interest income 644 - - 644
---------------- --------------- --------------- --------------
Loss from continuing operations before income taxes
and minority interest (3,478) (632) - (4,110)
Income tax benefit 2,531 - - 2,531
Minority interest (750) - - (750)
---------------- --------------- --------------- --------------
Loss from continuing operations $ (1,697) $ (632) $ - $ (2,329)
================ =============== =============== ==============
Loss per share from continuing operations:
Basic $ (0.11) $ (0.15)
================ ==============
Diluted $ (0.11) $ (0.15)
================ ==============
Average number of shares outstanding:
Basic 15,190 15,190
================ ==============
Diluted 15,190 15,190
================ ==============
(1) The proforma statement of income gives effect to the contract termination
in one medical transportation and related services area as if the
termination of the contract occurred on July 1, 2001. The results of the
one medical transportation and related services area have been removed from
the pro forma statement of income.