-----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, KVSdW/warcGQi3YhFLD45xmzHUHqvQBGcu3AN0tddV5Zpp0+Uyvj10BBqfc1YDZ7 0UFqFivAtgVpNRQUiAigRg== 0000950153-00-000082.txt : 20000203 0000950153-00-000082.hdr.sgml : 20000203 ACCESSION NUMBER: 0000950153-00-000082 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000127 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000127 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: SEC FILE NUMBER: 000-22056 FILM NUMBER: 515049 BUSINESS ADDRESS: STREET 1: 8401 EAST INDIAN SCHOOL RD CITY: SCOTTSDALE STATE: AZ ZIP: 85251 BUSINESS PHONE: 4809943886 8-K 1 8-K 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ----------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 January 27, 2000 January 27, 2000 (Date of earliest event reported) RURAL/METRO CORPORATION (Exact Name of Registrant as Specified in Charter) DELAWARE (State or other jurisdiction of incorporation) 0-22056 86-0746929 (Commission File Number) (IRS Employer Identification Number) 8401 EAST INDIAN SCHOOL ROAD SCOTTSDALE, ARIZONA 85251 (Address of Principal Executive Offices) (Zip Code) (480) 994-3886 (Registrant's telephone number, including area code) 2 Item 5. Other Events The Company provided a press release announcing business process changes and restructuring plan and postponing release of second quarter results as set forth in its press release dated January 27, 2000. See Exhibit 99.1. Item 7C. Exhibits 99.1 Press Release dated January 27, 2000. 3 SIGNATURE 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: January 27, 2000 By: /s/ Dean Hoffman ---------------- ----------------------- Dean Hoffman, Vice President and Principal Accounting Officer EX-99.1 2 EX-99.1 1 FOR: RURAL/METRO CORPORATION APPROVED BY: Mark Liebner, CFO CONTACT: Liz Merritt, Public Affairs (480) 606-3886 Morgen-Walke Associates Investor Relations: John Swenson (415) 296-7383 Media Relations: Sheryl Seapy (415) 296-7383 Wire Services: Eric Gonzales (212) 850-5600 RURAL/METRO CORPORATION ANNOUNCES BUSINESS PROCESS CHANGES AND RESTRUCTURING PLAN; POSTPONING RELEASE OF SECOND QUARTER RESULTS UNTIL EARLY FEBRUARY PENDING FINAL ANALYSIS OF ANTICIPATED $60-$75 MILLION OF CHARGES SCOTTSDALE, ARIZ. Jan. 27, 2000 -- Rural/Metro Corporation today announced that it is launching a significant change in its business process as well as a restructuring program designed to reduce the Company's exposure to slow and costly healthcare reimbursement in certain markets. The Company anticipates that total charges in connection with the program will be in the range of $60 to $75 million after tax. A portion of the charges are expected to be recognized in the second fiscal quarter ended December 31, 1999, but the amount and classification of these charges is still being determined in consultation with the Company's independent public accountants. As a result, the Company is delaying announcement of its final second quarter results until completion of this analysis, which is expected no later than February 14, 2000. The remainder of the charges are expected to be recognized in the Company's third fiscal quarter, which ends March 31, 2000. "It is unfortunate that exact quantification and classification of the impact of our new programs, which we believe will result in a significantly more efficient and profitable operating model, have forced a roughly two-week delay in announcement of our second quarter results," said Jack E. Brucker, President and Chief Operating Officer of Rural/Metro. "We can report that net revenue for the second fiscal quarter was $147.1 million, an increase of 5% over net revenue of $139.6 million in the second fiscal quarter 2 a year ago. Significantly, as a result of our efforts to shift non-emergency transport mix to higher margin, better paying opportunities, transports declined to 320,000 in the second quarter from 325,000 in last year's second quarter, but the average patient charge (APC) in the recent quarter increased significantly to $326, versus $300 in the year ago period. This marks significant progress in our efforts to improve potential operating profitability, and we believe that these trends can further improve as a result of our selective restructuring efforts in certain markets." Key components of the announced programs include: + Reducing the operating platforms in certain service areas that are highly dependent on Medicare and Medicaid reimbursements for non-emergency transport activity. + Modifying collection activity to focus more attention on the front end of the transport and collection process, spending less resources fighting claim denials with fiscal intermediaries and pursuing private pay bills. + Exploring new cut-off points for internal collection efforts, which could raise the productivity of the billing and collection operation, based on cost/benefit analysis of collection efforts, which vary significantly on a regional basis depending on the revenue mix and reimbursement practices of the fiscal intermediaries. + Approximately 8-10% of the total $60 million to $75 million in charges are expected to be cash items for severance and lease terminations. Mr. Brucker concluded, "The longer-term goal of this restructuring plan is to put in place a business model that is less dependent on shifts in government healthcare policy, more predictable with regard to operating margins and requires less working capital. We believe this direction also ensures that Rural/Metro will continue to provide superior quality emergency services to the communities entrusted to our care." Rural/Metro Corporation provides mobile health services, including 911 and general ambulance service, fire protection and other safety-related services to municipal, residential, commercial and industrial customers in more than 450 communities throughout the United States, Latin America and Canada. Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties that could cause actual 3 results to differ materially. These risks and uncertainties include the collectibility of revenue, uncertainties regarding healthcare reimbursement, the Company's ability to improve average patient charges, increase the efficiency of its collection process, and implement new programs; demand for the Company's services and other factors and other risks disclosed from time to time in the Company's SEC reports and filings. ### -----END PRIVACY-ENHANCED MESSAGE-----