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

ulation from similarly titled measures used by other companies. A reconciliation of EBITDA from continuing operations to GAAP financial measures for the three months and six months ended December 31, 2007 is included with this press release and the related current report on Form 8-K.

Results of Operations for the Six Months Ended Dec. 31, 2007

Consolidated net revenue for the six months ended December 31, 2007 increased 4.5% to $237.9 million, compared to $227.7 million for the prior year. Ambulance services revenue for the six months was $199.7 million, or an increase of 3.6%, compared to $192.8 million for the same period of the prior year. Other services revenue, which includes fire services, was $38.2 million, or an increase of 9.7%, compared to $34.9 million for the same period of the prior year. Consolidated net revenue growth for the six months was driven primarily by a $5.1 million increase in same-service-area medical transportation revenue, $2.6 million from new 911 and non-emergency contracts, $1.5 million in ambulance subsidies, a $1.7 million increase in master fire contract fees, and a $1.2 million increase in fire subscription revenue. These increases also 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 mentioned above.

Payroll and employee benefits expense for the six months was $149.3 million, or 62.8% of net revenue, compared to $141.7 million, or 62.2% of net revenue, for the same period of the prior year. Fiscal 2008 year-to-date results also included the $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, as discussed above.

Other operating expenses for the six months were $56.8 million, or 23.9% of net revenue, compared to $49.6 million, or 21.8% of net revenue, for the same period
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