Rollins, Inc. Reports Second Quarter And Six Months 2012 Financial Results
ATLANTA, July 25, 2012 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its second quarter ended June 30, 2012.
The Company recorded second quarter revenues of $334.9 million, an increase of 4.5% over the prior year's second quarter revenue of $320.4 million. Net income increased 6.7% to $33.1 million or $0.23 per diluted share for the second quarter ended June 30, 2012, compared to $31.1 million or $0.21 per diluted share for the same period in 2011.
Rollins' revenues rose 5.4% for the first six months of 2012 to $624.3 million compared to $592.1 million for the prior year. Net income for the first six months of 2012 was $56.2 million, or $0.38 per diluted share, compared to net income of $49.7 million, or $0.34 per diluted share for the same period last year.
In the second quarter, the Company repurchased 713,781 shares at a weighted average price of $21.06 per share bringing the total number of shares repurchased year-to-date to 781,781 at a weighted average price of $20.93. In total, 5,298,183 additional shares may be purchased under the share repurchase program.
Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "We are pleased to report another solid quarter. Our revenue growth reported this quarter and for the first six months of this year reflects the contributions from all our brands. We remain focused on our customer service and sales programs. Our team's consistent execution and strong operational initiatives should continue to contribute to a successful 2012."
Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin LLC., HomeTeam Pest Defense, Western Pest Services, Orkin Canada, The Industrial Fumigant Company, Waltham Services LLC., Crane Pest Control and Trutech LLC., the Company provides essential pest control services and protection against termite damage, rodents and insects to more than 2 million customers in the United States, Canada, Mexico, Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe and Africa from more than 500 locations. You can learn more about our subsidiaries by visiting our web sites at www.orkin.com, www.pestdefense.com, www.westernpest.com, www.orkincanada.ca, www.indfumco.com, www.walthamservices.com, www.cranepestcontrol.com, www.trutechinc.com and www.rollins.com. You can also find this and other news releases at www.rollins.com by accessing the news releases button.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This release contains statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements about the Company's focus on customer service and sales programs and the Company's belief that its consistent execution and strong operational initiatives should continue to contribute to a successful 2012. The actual results of the Company could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties, including without limitation, economic and competitive conditions which may adversely affect the Company's business; the degree of success of the Company's pest and termite process, and pest control selling and treatment methods; the Company's ability to identify and integrate potential acquisitions; climate and weather trends; competitive factors and pricing practices; the Company's ability to attract and retain skilled workers, and potential increases in labor costs; uncertainties of litigation; and changes in various government laws and regulations, including environmental regulations. All of the foregoing risks and uncertainties are beyond the ability of the Company to control, and in many cases the Company cannot predict the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. A more detailed discussion of potential risks facing the Company can be found in the Company's Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2011.
ROLLINS, INC. AND SUBSIDIARIES |
|||
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
|||
(in thousands) |
|||
At June 30, (unaudited) |
2012 |
2011 |
|
ASSETS |
|||
Cash and cash equivalents |
$ 62,060 |
$ 25,820 |
|
Trade accounts receivables, net |
73,784 |
71,457 |
|
Financed receivables, net |
12,822 |
12,068 |
|
Materials and supplies |
12,162 |
12,305 |
|
Deferred income taxes |
30,477 |
27,628 |
|
Other current assets |
19,004 |
20,198 |
|
Total Current Assets |
210,309 |
169,476 |
|
Equipment and property, net |
76,963 |
74,026 |
|
Goodwill |
210,971 |
213,705 |
|
Customer contracts and other intangible assets |
137,865 |
144,947 |
|
Deferred income taxes |
21,088 |
13,156 |
|
Financed receivables, long-term |
12,569 |
11,319 |
|
Other assets |
11,009 |
10,503 |
|
Total Assets |
$ 680,774 |
$ 637,132 |
|
LIABILITIES |
|||
Accounts payable |
$ 29,676 |
$ 31,853 |
|
Accrued insurance |
22,244 |
20,580 |
|
Accrued compensation and related liabilities |
56,234 |
60,951 |
|
Unearned revenue |
96,127 |
93,387 |
|
Line of credit |
- |
10,000 |
|
Other current liabilities |
36,459 |
32,478 |
|
Total Current Liabilities |
240,740 |
249,249 |
|
Accrued insurance |
28,185 |
26,830 |
|
Accrued pension |
29,793 |
8,253 |
|
Long-term accrued liabilities |
37,749 |
39,617 |
|
Total Liabilities |
336,467 |
323,949 |
|
STOCKHOLDERS' EQUITY |
|||
Common stock |
146,071 |
146,904 |
|
Retained earnings and other equity |
198,236 |
166,279 |
|
Total stockholders' equity |
344,307 |
313,183 |
|
Total Liabilities and Stockholders' Equity |
$ 680,774 |
$ 637,132 |
|
ROLLINS, INC. AND SUBSIDIARIES |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||||||
(in thousands except per share data) |
|||||||
(unaudited) |
|||||||
Second Quarter Ended |
Six Months Ended |
||||||
June 30, |
June 30, |
||||||
2012 |
2011 |
2012 |
2011 |
||||
REVENUES |
|||||||
Customer services |
$ 334,872 |
$ 320,436 |
$ 624,337 |
$ 592,079 |
|||
COSTS AND EXPENSES |
|||||||
Cost of services provided |
165,993 |
159,645 |
314,075 |
300,543 |
|||
Depreciation and amortization |
9,613 |
9,288 |
19,380 |
18,488 |
|||
Sales, general and administrative |
106,068 |
101,757 |
200,892 |
193,255 |
|||
Interest Expense |
20 |
178 |
71 |
370 |
|||
281,694 |
270,868 |
534,418 |
512,656 |
||||
INCOME BEFORE TAXES |
53,178 |
49,568 |
89,919 |
79,423 |
|||
PROVISION FOR INCOME TAXES |
20,051 |
18,507 |
33,712 |
29,722 |
|||
NET INCOME |
$ 33,127 |
$ 31,061 |
$ 56,207 |
$ 49,701 |
|||
NET INCOME PER SHARE - BASIC |
$ 0.23 |
$ 0.21 |
$ 0.38 |
$ 0.34 |
|||
NET INCOME PER SHARE - DILUTED |
$ 0.23 |
$ 0.21 |
$ 0.38 |
$ 0.34 |
|||
Weighted average shares outstanding - basic |
146,417 |
147,245 |
146,557 |
147,358 |
|||
Weighted average shares outstanding - diluted |
146,428 |
147,314 |
146,571 |
147,441 |
|||
CONFERENCE CALL ANNOUNCEMENT |
Rollins, Inc. |
(NYSE: ROL) |
Management will hold a conference call to discuss |
Second Quarter 2012 results on: |
Wednesday, July 25, 2012 at: |
10:00 a.m. Eastern |
9:00 a.m. Central |
8:00 a.m. Mountain |
7:00 a.m. Pacific |
TO PARTICIPATE: |
Please dial 877-941-6009 domestic; |
480-629-9819 international |
REPLAY: available through August 1, 2012 |
Please dial 800-406-7325/303-590-3030, Passcode: 4551562 |
THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT |
Questions? |
Contact Samantha Alphonso at Financial Relations Board at 212-827-3746 |
Or email to salphonso@mww.com |
For Further Information Contact:
Harry J. Cynkus (404) 888-2922
SOURCE Rollins, Inc.
Released July 25, 2012