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 SEPTEMBER 30, 2005

(in thousands, except per share amounts)

(unaudited)

 

     As Reported

    Discontinued
Operations


    Adjustments (1)

   Pro-Forma

 

Net revenue

   $ 140,919     $ (2,142 )   $ —      $ 138,777  
    


 


 

  


Operating expenses:

                               

Payroll and employee benefits

     69,284       (830 )     —        68,454  

Provision for doubtful accounts

     24,431       (699 )     —        23,732  

Depreciation and amortization

     2,813       (60 )     —        2,753  

Other operating expenses

     30,908       (355 )     —        30,553  

Gain on sale of assets

     (1,335 )     —         —        (1,335 )
    


 


 

  


Total operating expenses

     126,101       (1,944 )     —        124,157  
    


 


 

  


Operating income

     14,818       (198 )     —        14,620  

Interest expense

     (7,513 )     —         —        (7,513 )

Interest income

     158       —         —        158  
    


 


 

  


Income from continuing operations before income taxes and minority interest

     7,463       (198 )     —        7,265  

Income tax provision

     (3,722 )     —         —        (3,722 )

Minority interest

     (162 )     —         —        (162 )
    


 


 

  


Income from continuing operations

   $ 3,579     $ (198 )   $ —      $ 3,381  
    


 


 

  


Income per share from continuing operations:

                               

Basic

   $ 0.15                    $ 0.14  
    


                


Diluted

   $ 0.14                    $ 0.13  
    


                


Average number of common shares outstanding:

                               

Basic

     24,232                      24,232  
    


                


Diluted

     25,261                      25,261  
    


                


 

(1) The pro-forma statement of operations gives effect to the expiration of the Company’s contract with the City of Augusta, Georgia as if this expiration occurred on July 1, 2002. The results of this service area have been removed from the pro-forma statement of operations.


RURAL/METRO CORPORATION

PRO-FORMA CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2004

(in thousands, except per share amounts)

(unaudited)

 

     As Reported

    Discontinued
Operations


    Adjustments (1)

   Pro-Forma

 

Net revenue

   $ 128,118     $ (2,206 )   $ —      $ 125,912  
    


 


 

  


Operating expenses:

                               

Payroll and employee benefits

     66,427       (904 )     —        65,523  

Provision for doubtful accounts

     21,391       (632 )     —        20,759  

Depreciation and amortization

     2,890       (54 )     —        2,836  

Other operating expenses

     26,353       (424 )     —        25,929  
    


 


 

  


Total operating expenses

     117,061       (2,014 )     —        115,047  
    


 


 

  


Operating income

     11,057       (192 )     —        10,865  

Interest expense

     (7,320 )     —         —        (7,320 )

Interest income

     130       —         —        130  
    


 


 

  


Income from continuing operations before income taxes and minority interest

     3,867       (192 )     —        3,675  

Income tax provision

     (76 )     —         —        (76 )

Minority interest

     (309 )     —         —        (309 )
    


 


 

  


Income from continuing operations

   $ 3,482     $ (192 )   $ —      $ 3,290  
    


 


 

  


Income per share from continuing operations:

                               

Basic

   $ 0.16                    $ 0.15  
    


                


Diluted

   $ 0.15                    $ 0.15  
    


                


Average number of common shares outstanding:

                               

Basic

     21,959                      21,959  
    


                


Diluted

     22,679                      22,679  
    


                


 

(1) The pro-forma statement of operations gives effect to the expiration of the Company’s contract with the City of Augusta, Georgia as if this expiration occurred on July 1, 2002. The results of this service area have been removed from the pro-forma 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

    Discontinued
Operations


    Adjustments (1)

   Pro-Forma

 

Net revenue

   $ 531,084     $ (8,900 )   $ —      $ 522,184  
    


 


 

  


Operating expenses:

                               

Payroll and employee benefits

     272,574       (3,597 )     —        268,977  

Provision for doubtful accounts

     87,298       (2,617 )     —        84,681  

Depreciation and amortization

     11,046       (228 )     —        10,818  

Other operating expenses

     119,033       (1,681 )     —        117,352  
    


 


 

  


Total operating expenses

     489,951       (8,123 )     —        481,828  
    


 


 

  


Operating income

     41,133       (777 )     —        40,356  

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 )     —        2,912  

Income tax benefit

     82,817       —         —        82,817  

Minority interest

     (102 )     —         —        (102 )
    


 


 

  


Income from continuing operations

   $ 86,404     $ (777 )   $ —      $ 85,627  
    


 


 

  


Income per share from continuing operations:

                               

Basic

   $ 3.81                    $ 3.78  
    


                


Diluted

   $ 3.58                    $ 3.55  
    


                


Average number of common shares outstanding:

                               

Basic

     22,674                      22,674  
    


                


Diluted

     24,105                      24,105  
    


                


 

(1) The pro-forma statement of operations gives effect to the expiration of the Company’s contract with the City of Augusta, Georgia as if this expiration occurred on July 1, 2002. The results of this service area have been removed from the pro-forma 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

    Discontinued
Operations


    Adjustments (1)

   Pro-Forma

 

Net revenue

   $ 493,773     $ (8,718 )   $ —      $ 485,055  
    


 


 

  


Operating expenses:

                               

Payroll and employee benefits

     254,757       (3,516 )     —        251,241  

Provision for doubtful accounts

     86,717       (2,374 )     —        84,343  

Depreciation and amortization

     10,990       (230 )     —        10,760  

Other operating expenses

     111,217       (1,619 )     —        109,598  
    


 


 

  


Total operating expenses

     463,681       (7,739 )     —        455,942  
    


 


 

  


Operating income

     30,092       (979 )     —        29,113  

Interest expense

     (29,243 )     —         —        (29,243 )

Interest income

     97       —         —        97  
    


 


 

  


Income (loss) from continuing operations before income taxes and minority interest

     946       (979 )     —        (33 )

Income tax provision

     (16 )     —         —        (16 )

Minority interest

     475       —         —        475  
    


 


 

  


Income from continuing operations

   $ 1,405     $ (979 )   $ —      $ 426  
    


 


 

  


Income per share from continuing operations:

                               

Basic

   $ 0.29                    $ 0.25  
    


                


Diluted

   $ 0.06                    $ 0.02  
    


                


Average number of common shares outstanding:

                               

Basic

     16,645                      16,645  
    


                


Diluted

     21,817                      21,817  
    


                


 

(1) The pro-forma statement of operations gives effect to the expiration of the Company’s contract with the City of Augusta, Georgia as if this expiration occurred on July 1, 2002. The results of this service area have been removed from the pro-forma 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

    Discontinued
Operations


    Adjustments (1)

   Pro-Forma

 

Net revenue

   $ 452,723     $ (7,445 )   $ —      $ 445,278  
    


 


 

  


Operating expenses:

                               

Payroll and employee benefits

     242,949       (3,215 )     —        239,734  

Provision for doubtful accounts

     76,753       (1,823 )     —        74,930  

Depreciation and amortization

     11,628       (176 )     —        11,452  

Other operating expenses

     103,518       (1,595 )            101,923  

Restructuring and other

     (1,421 )     1,321       —        (100 )
    


 


 

  


Total operating expenses

     433,427       (5,488 )     —        427,939  
    


 


 

  


Operating income

     19,296       (1,957 )     —        17,339  

Interest expense

     (28,012 )     —         —        (28,012 )

Interest income

     197       —         —        197  
    


 


 

  


Loss from continuing operations before minority interest

     (8,519 )     (1,957 )     —        (10,476 )

Minority interest

     (1,507 )     —         —        (1,507 )
    


 


 

  


Loss from continuing operations

   $ (10,026 )   $ (1,957 )   $ —      $ (11,983 )
    


 


 

  


Loss per share from continuing operations:

                               

Basic

   $ (0.85 )                  $ (0.97 )
    


                


Diluted

   $ (0.85 )                  $ (0.97 )
    


                


Average number of common shares outstanding:

                               

Basic

     16,116                      16,116  
    


                


Diluted

     16,116                      16,116  
    


                


 

(1) The pro-forma statement of operations gives effect to the expiration of the Company’s contract with the City of Augusta, Georgia as if this expiration occurred on July 1, 2002. The results of this service area have been removed from the pro-forma statement of operations.