Rural/ Metro profit lower in quarter - East Valley Tribune: Business

Rural/ Metro profit lower in quarter

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Posted: Friday, March 23, 2007 6:39 am | Updated: 5:59 pm, Fri Oct 7, 2011.

Scottsdale-based Rural/ Metro Corp. reported lower profits for its second fiscal quarter.

The company, which provides fire response and ambulance services, saw $1.3 million in profits, or 5 cents a share, during its second quarter.

That’s a drop from $2.9 million in profits last year, or 11 cents a share, for the same period last year.

The company reported $116.9 in net revenue, up from $113.4 million during the same time last year.

Officials blamed rising payroll and employee benefits, as well as unpaid services for patient care.

Liz Merritt, a Rural/Metro spokeswoman, said the increasing number of uninsured patients is the primary force behind the results.

“That directly affects our revenue and our profitability,” she said.

The company elected to restate financial results for fiscal years 2004, 2005 and 2006 as well as other data from 2002 to 2006.

The company said the restatement is related to errors in how it accounted for inventory such as medical supplies.

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