Rollins, Inc. Reports Fourth Quarter and Full-Year 2010 Financial Results
Company Posts 19th Consecutive Quarter of Improved Earnings Results
ATLANTA, Jan. 26, 2011 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for its fourth quarter and year ended December 31, 2010.
The Company recorded fourth quarter revenues of $279.9 million, an increase of 7.8% over the prior year's fourth quarter revenue of $259.6 million. Net income increased 23.0% to $19.2 million or $0.13 per diluted share for the fourth quarter ended December 31, 2010, compared to $15.6 million or $0.10 per diluted share for the same period in 2009 excluding certain charges described below.
Revenues for the full year 2010 rose 5.9% to $1.137 billion compared to $1.074 billion for the prior year. Rollins' net income for the full year rose 13.0% to $90.0 million, or $0.61 per diluted share, compared to net income of $79.6 million, or $0.53 per diluted share for the prior year excluding certain charges described below.
GAAP earnings for the fourth quarter and full year 2009 were $20.0 million or $0.13 per diluted share and $84.0 million or $0.56 per diluted share respectively.
Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "Once more, the Rollins family of pest control companies has exceeded our 2010 major objectives. We are pleased to have delivered solid financial results for the fourth quarter and for the year. These results reflect the underlying strength of our business and our initiatives to benefit our customers, employees, and shareholders."
Mr. Rollins concluded, "The Company is well-positioned for 2011, and we are optimistic that we have the team and plans to again achieve record results. As we move into a new decade, we are committed to work on the key drivers of the business that have helped make Rollins, Inc., a premier North American consumer and commercial services company."
Reported results for fourth quarter 2009 as previously disclosed, include a tax benefit related to the conversion of Orkin to a limited liability company, net of cost associated with a Canadian restructuring and repatriation of cash in 2009, and an impairment charge, which combined increased reported fourth quarter 2009 earnings by a net $0.03 per diluted share.
Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, HomeTeam Pest Defense, Western Pest Services, PCO Services, The Industrial Fumigant Company, Waltham Services and Crane Pest Control, the Company provides essential pest control services and protection against termite damage, rodents and insects to over 2 million customers in the United States, Canada, Europe, Central America, the Caribbean, the Middle East, Asia and the Mediterranean from over 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 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 belief that the Company has the team and plans to again achieve record results and the Company's commitment to work on the key drivers of its business. 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, 2009.
ROLLINS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in thousands) At December 31, (unaudited) 2010 2009 ASSETS Cash and cash equivalents $ 20,913 $ 9,504 Trade receivables, short-term 67,185 60,590 Accounts Receivable - Other 3,248 2,164 Materials and supplies 11,899 10,208 Deferred income taxes 27,396 25,839 Other current assets 20,380 12,225 Total Current Assets 151,021 120,530 Trade receivables, long-term 10,193 9,356 Equipment and property, net 74,013 74,644 Goodwill 210,779 189,658 Customer Contracts 117,291 121,176 Other Intangible Assets 30,265 24,785 Deferred income taxes 15,106 17,901 Other assets 10,346 8,446 Total Assets $ 619,014 $ 566,496 LIABILITIES Accounts payable $ 25,940 $ 15,841 Accrued insurance 18,652 16,567 Accrued compensation and related liabilities 61,817 57,377 Unearned revenue 85,489 85,883 Line of Credit 26,000 30,000 Other current liabilities 28,543 27,085 Total Current Liabilities 246,441 232,753 Accrued pension 12,515 14,895 Long-term accrued liabilities 62,088 54,282 Total Liabilities 321,044 301,930 STOCKHOLDERS’ EQUITY Common stock 147,181 148,357 Retained earnings and other equity 150,789 116,209 Total Stockholders’ Equity 297,970 264,566 Total Liabilities and Stockholders’ Equity $ 619,014 $ 566,496
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
Fourth Quarter Ended Twelve Months Ended
December 31, December 31,
2010 2009 2010 2009
REVENUES
Customer services $ 279,928 $ 259,567 $ 1,136,890 $ 1,073,958
COSTS AND EXPENSES
Cost of services provided 147,622 136,562 583,089 551,002
Depreciation and amortization 9,365 9,045 36,408 37,169
Sales, general and
administrative 92,506 88,563 373,288 355,590
Loss on impairment/sale of
assets 118 2,935 123 2,942
Interest expense, net 172 118 437 964
249,783 237,223 993,345 947,667
INCOME BEFORE TAXES 30,145 22,344 143,545 126,291
PROVISION FOR INCOME TAXES 10,939 2,383 53,543 42,307
NET INCOME $ 19,206 $ 19,961 $ 90,002 $ 83,984
NET INCOME PER SHARE - BASIC $ 0.13 $ 0.13 $ 0.61 $ 0.56
NET INCOME PER SHARE - DILUTED $ 0.13 $ 0.13 $ 0.61 $ 0.56
Weighted average shares
outstanding - basic 147,184 148,456 148,030 149,179
Weighted average shares
outstanding - diluted 147,306 148,845 148,231 149,624
ROLLINS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIALS
(in thousands except per share data)
(unaudited)
Fourth Quarter Ended Twelve Months Ended
December 31, 2009 December 31, 2009
Net income as reported $ 19,961 $ 83,984
Add: Impairment of project (net of
taxes) 1,809 1,809
Less: Net tax benefit (6,152) (6,152)
Adjusted earnings $ 15,618 $ 79,641
Adjusted earnings per share $ 0.10 $ 0.53
Weighted average shares outstanding
- diluted 148,845 149,624
ROLLINS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIALS
(in thousands except per share data)
(unaudited)
Fourth Quarter Ended Twelve Months Ended
December 31, 2009 December 31, 2009
Net income per share - diluted as
reported $ 0.13 $ 0.56
Add: Impairment of project (net of
taxes) $ 0.01 $ 0.01
Less: Net tax benefit $ (0.04) $ (0.04)
Adjusted earnings per share -
diluted $ 0.10 $ 0.53
CONFERENCE CALL ANNOUNCEMENT Rollins, Inc. (NYSE: ROL) Management will hold a conference call to discuss Fourth Quarter results on: Wednesday, January 26, 2011 at: 10:00 a.m. Eastern 9:00 a.m. Central 8:00 a.m. Mountain 7:00 a.m. Pacific TO PARTICIPATE: Please dial877-941-8632domestic; 480-629-9820international atleast5 minutes before start time. REPLAY: available through February 3, 2011 Please dial 800-406-7325/303-590-3030, Passcode: 4399060 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.
Released January 26, 2011