-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VJc50OOdHxxOZMBtXSv5dpVIWjglOlx5CVxZmudkTZ20ynRylhjmL9oaYZ3tGH0N 0e4Wpt3tG2/zh/Ww0PACwQ== 0000909518-05-000270.txt : 20050422 0000909518-05-000270.hdr.sgml : 20050422 20050422165428 ACCESSION NUMBER: 0000909518-05-000270 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050418 ITEM INFORMATION: Completion of Acquisition or Disposition of Assets ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050422 DATE AS OF CHANGE: 20050422 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RURAL METRO CORP /DE/ CENTRAL INDEX KEY: 0000906326 STANDARD INDUSTRIAL CLASSIFICATION: LOCAL & SUBURBAN TRANSIT & INTERURBAN HWY PASSENGER TRAINS [4100] IRS NUMBER: 860746929 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-22056 FILM NUMBER: 05767971 BUSINESS ADDRESS: STREET 1: 8401 EAST INDIAN SCHOOL RD CITY: SCOTTSDALE STATE: AZ ZIP: 85251 BUSINESS PHONE: 4809943886 8-K 1 jd4-22_8k.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 18, 2005 __________________ RURAL/METRO CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 0-22056 86-0746929 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 9221 East Via de Ventura Scottsdale, Arizona 85258 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (480) 606-3886 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.01 Completion of Acquisition or Disposition of Assets. Effective April 18, 2005, the Area Metropolitan Ambulance Authority d/b/a MedStar ("MedStar") for metropolitan Forth Worth, Texas and Rural/Metro Corporation, a Delaware corporation (the "Company"), mutually agreed that the Company would discontinue its operations in metropolitan Fort Worth. The Company, acting through one of its subsidiaries, will continue to provide service to the metropolitan Fort Worth, Texas area until April 30, 2005. The Company provides emergency and non-emergency ambulance services to the Forth Worth area using ambulances, equipment and other assets of MedStar. MedStar is obligated to pay the Company for its services through April 30, 2005. The Company is not required to pay a termination fee in connection with its discontinuation of service, and MedStar is obligated to return the letter of credit that was furnished to MedStar by the Company as a performance security. Assets of the Company not otherwise sold to MedStar generally will not be disposed of by the Company, but instead will be redeployed in other Company operations. In addition, the Company understands that the majority of its current employees serving the Fort Worth area will be offered employment with MedStar. The results of this service area will be included in discontinued operations beginning with filings made for the quarter ended June 30, 2005. The assets related to the service area totaled $2.6 million (primarily consisting of accounts receivable of $0.9 million and a cash collateralized letter of credit in the amount of $1.0 million) or 1.3% of total assets of the Company at December 31, 2004. Item 9.01 Financial Statements and Exhibits. (a) Not applicable. (b) Pro Forma Financial Information. The required pro forma financial information is included as Exhibit 99.1 to this Report. (c) Exhibits. Exhibit No. Description ----------- ----------- 99.1 Pro forma financial statements of Rural/Metro Corporation 99.2 Press release, dated April 18, 2005 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. RURAL/METRO CORPORATION Date: April 22, 2005 By: /s/ Michael S. Zarriello --------------------------- Michael S. Zarriello Senior Vice President and Chief Financial Officer 3 EXHIBIT INDEX Exhibit No. Description ----------- ----------- 99.1 Pro forma financial statements of Rural/Metro Corporation 99.2 Press release, dated April 18, 2005 4 EX-99 2 jd4-22ex99_1.txt 99.1 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. EX-99 3 jd4-22ex99_2.txt 99.2 EXHIBIT 99.2 [Rural/Metro Corporation logo] CONTACT: Liz Merritt, Rural/Metro Corporation (480) 606-3337 Financial Dynamics, Investor Relations Jim Byers (Investors) (415) 439-4504 For immediate release - --------------------- RURAL/METRO RECEIVES APPROVAL ON ITS PROPOSAL TO DISCONTINUE AMBULANCE SERVICE IN FORT WORTH SCOTTSDALE, Ariz. (April 18, 2005) - Rural/Metro Corporation (Nasdaq/SC: RURL) announced today that its proposal to discontinue its contract in metropolitan Fort Worth, Texas was approved by the Area Metropolitan Ambulance Authority Board of Directors effective April 30, 2005. The Fort Worth-area EMS system is administered by the Authority under the name MedStar. The Authority owns all vehicles and equipment, manages administrative expenses, and conducts all billing and collections. Since 1999, Rural/Metro provided EMS support personnel under a fixed-price contract that generated approximately 2% of the company's total revenue in fiscal 2004. Jack Brucker, President and Chief Executive Officer, said, "In light of today's approval, we will move forward immediately in an effort to ensure an efficient and smooth transition of personnel to this newly integrated, internal model." Boo Heffner, President of the Company's West Emergency Services Group, added, "We are proud of the job we have done and the system enhancements we have implemented in the five years we served the communities and pledge our fullest cooperation during the transition period." In an announcement issued by the Authority today, Board Chair Howard McMahon stated, "The 14 Tarrant County cities served by the system will still have the same MedStar ambulances and the same emergency medical personnel answering their calls. The high quality service our citizens expect will be uninterrupted." According to the announcement, " . . . the Authority will immediately offer employment to the hard-working, well-qualified employees who were employed by Rural/Metro, especially the emergency medical services staff." Rural/Metro Corporation provides emergency and non-emergency medical transportation, fire protection, and other safety services in 23 states and approximately 365 communities throughout the United States. For more information, visit the company's web site at http://www.ruralmetro.com. This press release may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among others, the company's ability to sustain operating cash flow, secure new contracts, retain existing contracts, and improve earnings and operating margins. Additional factors that could affect the company are described in its Form 10-K for the year ended June 30, 2004 under the caption "Risk Factors" in the Management's Discussion and Analysis section, and other factors as described from time to time in the company's SEC filings. ### -----END PRIVACY-ENHANCED MESSAGE-----