EMSC operates two business segments: American Medical Response, Inc. (AMR), the Company's healthcare transportation services segment, and EmCare Holdings Inc. (EmCare), the Company's facility-based physician services segment.

American Medical Response (AMR)

For the quarter ended June 30, 2010, AMR generated net revenue of $344.2 million, an increase of 2.6% compared to the same quarter last year. The increase in net revenue was from an improvement in revenue per transport and growth in our managed transportation business, offset by a decrease in interfacility transports.

AMR's Adjusted EBITDA was $34.9 million ($31.8 million including the NY Accrual), an increase of 7.5% compared to the same quarter last year. The increase in Adjusted EBITDA is attributable primarily to revenue per transport growth and a decrease in compensation and benefits and insurance as a percentage of net revenue, offset by higher fuel costs and general and administrative expenses. Income from operations, including the NY Accrual, was $20.3 million, an increase of 3.0% compared to the same quarter in 2009.

For the six months ended June 30, 2010, AMR's net revenue was $681.1 million, an increase of 1.4% compared to the same period last year. Adjusted EBITDA was $67.3 million ($64.2 million including the NY Accrual), an increase of 1.4% compared to the same period last year. Income from operations, including the NY Accrual, was $41.2 million, an increase of 2.0% compared to the same period in 2009.

EmCare

For the quarter ended June 30, 2010, EmCare generated net revenue of $364.6 million, an increase of 20.8% compared to the same quarter last year. The increase in revenue is attributable primarily to the addition of 54 net new contracts since March 31, 2009, and revenue increases at existing contracts. Revenue at existing contracts grew 4.5% notwithstanding a 1.2% decline in same store patient encounters. 2009 patient encounters were positively impacted by increased visits related to the H1N1 virus.

Adjusted EBITDA was $46.6 million for the quarter compared to $40.6 million in the same quarter last year, an increase of 15.0%. The increase in Adjusted EBITDA was driven primarily by the net impact of revenue and volume increases from new contracts in addition to a decrease in insurance expense as a percentage of net revenue. 2009 Adjusted EBITDA margins were positively impacted by increased visits related to the H1N1 virus. Income from operations was $41.5 million, an increase of 15.4% over the same period in 2009.

For the six months ended June 30, 2010, EmCare's net revenue was $707.0 million, an increase of 22.2% compared to the same period last year. Adjusted EBITDA was $88.7 million, an increase of 22.8% compared to the same period last year. Income from operations was $78.1 million, an increase of 24.3% compared to the same period in 2009.

Guidance

Adjusted EBITDA guidance is increased from our previously announced range of $313 million to $320 million to an expected range of $321 million to $328 million (excluding the NY Accrual). Diluted 2010 EPS guidance is updated from $3.10-$3.20 to an expected range of $3.20-$3.30 (excluding $0.30 of non-recurring charges related to our loss on early debt extinguishment and the NY Accrual). Adjusted EBITDA and Diluted EPS, including the loss on early debt extinguishment and the NY Accrual, are expected to be between $318 million to $325 million and $2.90 - $3.00, respectively.

SOURCE Emergency Medical Services Corporation