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Rural/Metro Announces Results for Fiscal 2008 Second Quarter
Date:2/11/2008

h these improvements as we continue to mark progress on the execution of our business goals to generate sustainable revenue growth, minimize exposure to uncompensated care, and expedite and enhance billing and collections performance."

Results of Operations for the Quarter Ended Dec. 31, 2007

Consolidated net revenue for the second quarter increased 4.5% to $119.0 million, compared to $113.9 million for the same period in the prior year. Ambulance services revenue for the quarter was $99.4 million, or an increase of 2.9%, compared to $96.6 million for the same period of the prior year. Other services revenue, which includes fire services, was $19.6 million, or an increase of 13.2%, compared to $17.3 million for the same period of the prior year. Consolidated net revenue growth for the quarter was driven primarily by a $2.6 million increase in same-service-area medical transportation revenue, $1.5 million from new 911 and non-emergency contracts, $0.6 million in ambulance subsidies, a $0.8 million increase in master fire contract fees, and a $0.7 million increase in fire subscription revenue. These increases were offset by a $1.9 million reserve to contractual allowances pursuant to an alleged overpayment of Medicare claims in Tennessee for the period 2004 through 2005.

Payroll and employee benefits expense for the quarter was $74.5 million, or 62.6% of net revenue, compared to $70.6 million, or 62.0% of net revenue, for the same period of the prior year. Fiscal 2008 quarterly results included a $2.5 million positive workers' compensation insurance claims adjustment recognized in December 2007 compared to a $2.7 million positive adjustment recognized in December 2006.

Other operating expenses for the second quarter were $29.6 million, or 24.9% of net revenue, compared to $26.0 million, or 22.8% of net revenue for the same period of the prior year. The difference included a $1.0 million increase in professional fees related primarily to the
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SOURCE Rural/Metro Corporation
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