Scottsdale, AZ--(Marketwire) - Rural/Metro Corporation (NASDAQ: RURL), a leading national provider of ambulance and private fire protection services, announced today that is has been awarded a new 5-year contract to continue as the exclusive provider of fire protection and emergency medical services to the Town of Fountain Hills, Arizona.
The contract begins July 1, 2009 and is expected to generate $2.8 million in its first year, with a 3 percent annual inflation rate increase thereafter. The initial term is for five years, followed by two 2-year renewal options thereafter. The contract was awarded following a unanimous vote of the Fountain Hills Town Council.
Jack Brucker, President and Chief Executive Officer, said, “For more than three decades, Rural/Metro has provided fire safety and emergency medical services to the citizens of Fountain Hills, and we are very proud of our long record of excellent service to the community. We look forward to serving Fountain Hills for many years to come.”
Bryan Gibson, President of Rural/Metro Fire, added, “Fountains Hills is a great example of Rural/Metro’s ability to partner in a community’s public safety system and foster a mutual commitment to responsive, expert care and protection. We are very gratified by the continuing support of town leaders.”
Rural/Metro Fire Department has been the exclusive provider of fire protection and emergency medical services in Fountain Hills for more than 35 years. The Town of Fountain Hills spans 17 square miles east of metropolitan Phoenix and is home to more than 23,000 residents.
Ken Smith, Vice President of Fire Operations, pointed to the long-standing dedication of Rural/Metro’s firefighters and emergency medical service professionals and the difference they have made in the community. “Our personnel share a great deal of pride in serving the Town of Fountain Hills and take that responsibility seriously.” Rural/Metro responds to approximately 3,000 calls for service there each year.
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 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 are indicated by words such as “may,” “will,” “expect,” “anticipate,” “believe,” “estimate,” “should,” “continue,” “predict,” “preliminary” and similar words used herein. The Company may also make forward-looking statements in its 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, working capital, cash flow, EBITDA, capital expenditures, payroll expense, repayment of debt, insurance coverage and claim reserves, unexpected governmental investigations, capital needs, operating results and compliance with debt facilities. In addition, the Company may face risks and uncertainties related to uncompensated care and its ability to collect its accounts receivable and 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.