EX-99.1 2 dex991.htm PRO FORMA FINANCIAL STATEMENTS OF RURAL/METRO CORPORATION Pro Forma Financial Statements of Rural/Metro Corporation

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.