SOURCE: Rural/Metro Corporation

Rural/Metro Corporation

December 01, 2009 07:00 ET

Rural/Metro to Restore Shareholder Rights Plan Threshold to 15.0%

SCOTTSDALE, AZ--(Marketwire - December 1, 2009) - Rural/Metro Corporation (NASDAQ: RURL), a leading provider of ambulance and private fire protection services, announced today that the Company's Board of Directors has authorized the Company to amend its Shareholder Rights Plan (the "Plan") to restore the threshold at which the plan is triggered to 15.00%.

The Board of Directors previously authorized an increase in the Stockholder Rights Plan threshold in March 2009 to 10.00% from 4.99%, following consideration of the Company's improved position with respect to change-in-ownership rules under Section 382 of the U.S. Internal Revenue Code.

Jack Brucker, President and Chief Executive Officer, said, "A variety of factors led the Board to take action at this time to restore the Plan to its original threshold of 15.00%, including the complex calculations required under Section 382 and our desire to enhance trading capacity for existing and potential new stockholders."

In general, Section 382 limits the use of a corporation's net operating losses and certain other tax benefits following a cumulative change in stock ownership of 50% or more among holders of 5% or more of the company's stock.

About Rural/Metro

Rural/Metro Corporation provides emergency and non-emergency ambulance services and private fire protection services in 22 states and approximately 400 communities throughout the United States. For more information, visit the Company's web site at www.ruralmetro.com.

SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS

The foregoing reflects the Company's views about its future financial condition, performance and other matters that constitute "forward-looking" statements as such term is defined by the federal securities laws. Many of these statements can be found by looking for words such as "believe," "anticipate," "expect," "plan," "intend," "may," "should," "will likely result," "continue," "estimate," "project," "goals," or similar words used herein in connection with any discussions of future operating or financial performance or business prospects. We may also make forward-looking statements in our earnings reports filed with the Securities and Exchange Commission (SEC), earnings calls and other investor communications. These forward-looking statements are subject to the safe harbor protection provided by federal securities laws. These forward-looking statements are subject to numerous risks, uncertainties and assumptions, including those relating to the Company's future business prospects, uncompensated care, working capital, accounts receivable collection, liquidity, cash flow, EBITDA, capital expenditures, insurance coverage and claim reserves, capital needs, key operating metrics, future growth plans, future operating results, future compliance with covenants in our debt facilities or instrument, and the ability to successfully complete its refinancing transaction. In addition, the Company may face risks and uncertainties related to other factors that are listed in its periodic reports filed under the Securities Exchange Act. Although the Company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, because the statements are subject to risks and uncertainties, the Company can give no assurance that its expectations will be attained or that actual developments and results will not materially differ from those expressed or implied by the forward-looking statements. Readers are cautioned not to place undue reliance on the statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.

(RURL/F)

Contact Information

  • CONTACT:
    Liz Merritt
    Rural/Metro Corporation
    (480) 606-3337

    Sharrifah Al-Salem, FD
    (415) 293-4414