Rural/Metro Awarded Renewal To Continue As Exclusive Ambulance Provider To Seattle VA Hospital
SCOTTSDALE, Ariz., May 20 /PRNewswire-FirstCall/ -- Rural/Metro Corporation announced today that it has been awarded a renewal contract by the Veterans Administration Puget Sound Healthcare System to continue as the exclusive provider of emergency and non-emergency ambulance services to its hospitals and healthcare facilities in the greater Seattle area.
The renewal contract term begins July 1, 2004, and includes four, one-year optional renewal periods, ending September 30, 2008. The contract was awarded following a competitive bidding process and is valued at approximately $1.7 million in net revenue annually. Rural/Metro has served the Seattle VA facility since 2002.
Jack Brucker, President and Chief Executive Officer, said, "We have identified the Pacific Northwest region as an excellent candidate for future market expansion, and this contract is an important component of our growth plan. We are very pleased to continue serving the medical transportation needs of the area's veterans, and look forward to pursuing additional opportunities in the region."
The VA Puget Sound Healthcare System provides care at two main hospital facilities in Seattle and Tacoma, Washington, as well as three community based outpatient clinics in the area. The system serves veterans from throughout western Washington and operates one of the region's largest teaching hospitals.
Boo Heffner, President of Rural/Metro's West Emergency Services Group, said, "Our Pacific Northwest team is committed to delivering the highest levels of care to our patients, and we look forward to continuing this standard of service in the future. We value our business relationship with the Veterans Health Administration and are gratified to once again be awarded this key regional contract."
Rural/Metro has provided medical transportation services in Washington's Snohomish, King, and Pierce counties for more than 15 years. The company's 275 Washington-based employees provide approximately 41,000 emergency and non- emergency ambulance transports throughout the area each year.
The company provides emergency medical transportation services in conjunction with the Lakewood Fire Department, Tacoma Fire Department, Everett Fire Department, Puyallup Fire Department, Steilicom Fire Department, University Place Fire Department, Edmonds Fire Department, Lynnwood Fire Department, Eastside Fire and Rescue, Riverside Fire Department, Ruston Fire Department, Edgewood Fire Department, and Snohomish County Fire District 15.
Rural/Metro is also the contracted provider in the Puget Sound area for non-emergency medical transportation to MultiCare Health Systems, Mary Bridge Children's Hospital, Franciscan Health System, Providence Everett Hospital, Good Samaritan Hospital, Steven Community Hospital, and Valley General Hospital.
Rural/Metro Corporation provides emergency and non-emergency medical transportation, fire protection, and other safety services in 24 states and more than 400 communities throughout the United States. For more information, visit the company's web site at http://www.ruralmetro.com/.
Except for historical information herein, this press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among others, the ability to sustain operating cash flows; secure new contracts; retain existing contracts; improve operating margins; and maintain compliance with covenant and other requirements of its amended credit facility. Additional factors that could affect the company are described in its Form 10-K, as amended, for the fiscal year ended June 30, 2003 under the caption "Risk Factors" in the Management's Discussion and Analysis section, and other factors as described from time to time in the company's SEC filings. The company disclaims any obligation to update its forward-looking statements.
CONTACT: Liz Merritt, Rural/Metro Corporation 480-606-3337 Financial Dynamics, Investor Relations Jim Byers (Investors) 415-439-4504 Christopher Katis (Media) 415-439-4518
Rural/Metro CorporationCONTACT: Liz Merritt of Rural/Metro Corporation, +1-480-606-3337; or JimByers (Investors), +1-415-439-4504, or Christopher Katis (Media),+1-415-439-4518, both of Financial Dynamics, Investor Relations, forRural/Metro Corporation
Web site: http://www.ruralmetro.com/