SOURCE: Rural/Metro Corporation

Rural/Metro Corporation

March 23, 2011 07:00 ET

Rural/Metro Wins New 911 Ambulance Contract in Sumter County, Florida

SCOTTSDALE, AZ--(Marketwire - March 23, 2011) - Rural/Metro Corporation (NASDAQ: RURL) announced today that it has been awarded a new contract to provide 911 ambulance services in Sumter County, Florida. The contract was awarded on a unanimous vote of the Sumter County Commission, following a competitive bidding process.

The contract is expected to generate approximately $3.6 million in new revenue annually, which includes a $1.3 million annual subsidy from the county to help offset costs related to uncompensated care. Service is scheduled to begin October 1, 2011 with an initial two-year contract term, followed by two two-year renewal terms thereafter.

Michael DiMino, President and Chief Executive Officer, said, "This contract win demonstrates the continuing success of our primary growth plank, which is to enter new and contiguous markets through superior competitive bids. We are very pleased to add Sumter County to our growing hub of operations in Central Florida and look forward to bringing Rural/Metro's national platform of outstanding customer care, operational expertise and technology advancements to the market."

Sumter County is located just west of existing Rural/Metro operations in Orlando and was ranked the fifth-fastest-growing county in the nation in 2010 by Forbes Magazine. The Villages, a master-planned retirement community with a population of more than 8,000 residents, is located mainly in Sumter County. In total, the county is home to more than 75,000 citizens and spans 574 square miles. 

Bryan Gibson, Executive Vice President and Chief Operating Officer, said, "Sumter County will bring more than 9,500 new transports into the mix each year and enable us to further leverage our operating efficiencies as we continue to expand operations in Florida. Our personnel are among the finest and most highly trained in the state, and we look forward to working alongside local first responder fire departments to deliver the best emergency medical services possible."

About Rural/Metro

Rural/Metro Corporation provides emergency and non-emergency ambulance services and private fire protection services in 20 states and approximately 440 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 financial reports filed with the Securities and Exchange Commission (SEC), investor 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, adjusted EBITDA, capital expenditures, insurance coverage and claim reserves, capital needs, key operating metrics, future growth plans, future operating results, and future compliance with covenants in our debt facilities or instruments. 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/G)

Contact Information

  • CONTACT:

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

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