Rural/Metro Corp.'s fiscal 2008 second-quarter demonstrated continuing, gradual improvement in the company's financial performance.
For the quarter ending Dec. 31, the company, based on the Salt River Pima-Maricopa Indian Community, announced $119 million in revenue, up 4.5 percent from $114 million for the same quarter last fiscal year.
Revenue from ambulance services and fire services was up compared with the same period last fiscal year.
The company's stock, traded on Nasdaq, closed at $2.55 a share Monday, down 1.16 percent, on volume of 44,156 shares.
The stock's 52-week high was $8.30, while the 52-week low was $1.84.
Net revenue growth for the quarter was driven primarily by a $2.6 million increase in same-service-area medical transportation revenue, $1.5 million from new 911 and nonemergency contracts, $600,000 in ambulance subsidies, an $800,000 increase in master fire contract fees and a $700,000 increase in fire subscription revenue.
The increases were offset by $1.9 million related to an alleged overpayment of Medicare claims in Tennessee for the period 2004 through 2005.
"Our second-quarter results are highlighted by continued growth in net revenue, further reductions in uncompensated care and positive trending in the key metrics we use to evaluate the performance of our ambulance billing and collections efforts," said Jack Brucker, Rural/Metro's president and CEO.
Net income for the quarter was $754,000, compared with $1.31 million for the same quarter in fiscal 2007.
Also Monday, Brucker said Rural/Metro still plans to sell the building at Indian School and Granite Reef roads in Scottsdale that houses the company's operations center.
"The market has slowed somewhat since Christmas, but we still are actively showing the property," Brucker said.
"I can't give an estimate on when (it will be sold), but there is still a lot of activity on that."
Once sold, the employees and operations that now occupy the building will be relocated to various facilities across the Valley, he said
Uncompensated care has been plaguing the company's bottom line, but there's been steady improvement in collections through the last four quarters, Brucker said.