(RTTNews) - Greenwood Village, Colorado-based Emergency Medical Services Corp. (EMS: News ) reported Tuesday an increase in third-quarter profit, reflecting the signing of new contracts, higher volumes at emergency departments, and lower operating expenses. On a per share basis, earnings came in above the Street view by six cents. The company also said that it now expects the full year earnings to be at the high end of its existing guidance range.

For the third quarter, net income increased 0.9% to $28.88 million from $28.62 million in the previous year attributed to the signing of new contracts, higher volumes at the company's emergency departments, expansion of new service lines and improved resource utilization.

On a per share basis, earnings were $0.66, flat with the past year. On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.60 per share for the third quarter. Analysts' estimates typically exclude special items.

Income from operations for the three-month period improved slightly to $55.47 million from $54.87 million in the past year.

Net revenue for the quarter dipped 2.1% to $665.06 million from $679.33 million a year ago. Analysts were expecting revenue of $634.22 million for the third quarter. Excluding FEMA hurricane deployment revenue of $101.1 million in 2008 revenue went up 15.0%.

Segment-wise, American Medical Response recorded quarterly revenue of $338.8 million, down 20.4% from last year. Excluding FEMA hurricane deployment revenue of $101.1 million in the year-ago period, revenue grew 4.5%, attributable to higher revenue per transport and growth in managed transportation business.
Revenue from EmCare segment advanced 28.5% to $326.3 million, chiefly because of addition of 87 net new contracts since June 30, 2008 and revenue increases at existing contracts.

Operating expenses dropped to $85.51 million from $135.08 million,while compensation and benefits rose to $467.62 million from $426.76 million. Selling, general and administrative expenses declined to $15.87 million from $20.51 million in the comparable quarter of fiscal 2008.

For the nine-month period, net income surged to $81.97 million or $1.89 per share from $63.97 million or $1.49 per share in fiscal 2008. Revenue grew 5.5% to $1.92 billion from $1.82 billion in the same period last year. Excluding the third quarter 2008 impact of the FEMA hurricane deployment, revenue increased 11.7% year-over-year.

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