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
at least 5 minutes before start time.

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

www.viavid.net

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.