Rollins, Inc. Reports First Quarter 2010 Financial Results
ATLANTA, April 28 /PRNewswire-FirstCall/ -- Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its first quarter ended March 31, 2010. The Company recorded first quarter revenues of $253.0 million, an increase of 4.1% over the prior year's first quarter revenue of $243.0 million. Net income increased 11.2% to $17.6 million or $0.18 per diluted share for the first quarter ended March 31, 2010, compared to $15.8 million or $0.16 per diluted share for the same period in 2009.
On January 26, 2010, Rollins increased its regular quarterly cash dividend to shareholders 28.6 percent to $0.09. The Company also repurchased 130,100 shares at a weighted average price of $19.23 per share during the first quarter. In total, 2,821,491 additional shares may be purchased under the share repurchase program.
Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "We are very pleased with our first quarter results and the start of the year. Our Company delivered solid revenue results, improved gross margins and profits, and generated strong cash flow."
Mr. Rollins concluded, "We are off to a good beginning and are executing very meaningful programs that should make contributions throughout the year. We are especially grateful to our employees who are working hard to execute our 2010 plan."
Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, PCO Services, HomeTeam Pest Defense, Western Pest Services, The Industrial Fumigant Company 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, Mexico, 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.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 the statements about the Company's belief that Company is executing very meaningful programs that should make contributions throughout the year. 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 our 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; our 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 March 31, (unaudited) 2010 2009 ASSETS Cash and cash equivalents $ 14,149 $ 14,957 Trade receivables, short-term 60,709 58,783 Accounts Receivable - Other 2,228 1,854 Materials and supplies 10,957 11,555 Deferred income taxes 25,760 19,892 Other current assets 11,842 10,919 Total Current Assets 125,645 117,960 Trade receivables, long-term 9,021 8,946 Equipment and property, net 72,203 78,325 Goodwill 189,925 188,101 Customer Contracts 117,130 126,502 Other Intangible Assets 24,575 23,172 Deferred income taxes 17,644 17,514 Other assets 9,190 6,396 Total Assets $ 565,333 $ 566,916 LIABILITIES Accounts payable $ 20,671 $ 18,712 Accrued insurance 16,754 15,067 Accrued compensation and related liabilities 47,865 45,216 Unearned revenue 89,604 90,785 Line of Credit 15,000 62,000 Other current liabilities 34,969 33,521 Total Current Liabilities 224,863 265,301 Accrued insurance 26,054 25,803 Accrued pension 14,731 20,232 Long-term accrued liabilities 28,022 27,385 Total Liabilities 293,670 338,721 STOCKHOLDERS’ EQUITY Common stock 99,336 99,882 Retained earnings and other equity 172,327 128,313 Total Stockholders’ Equity 271,663 228,195 Total Liabilities and Stockholders’ Equity $ 565,333 $ 566,916
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
First Quarter Ended
March 31,
2010 2009
REVENUES
Customer services $ 253,041 $ 242,972
COSTS AND EXPENSES
Cost of services provided 130,975 125,371
Depreciation and amortization 9,000 9,429
Sales, general and administrative 85,101 81,988
Gain on impairment/sale of assets (186) (5)
Interest expense, net 99 428
224,989 217,211
INCOME BEFORE TAXES 28,052 25,761
PROVISION FOR INCOME TAXES 10,469 9,953
NET INCOME $ 17,583 $ 15,808
NET INCOME PER SHARE - BASIC $ 0.18 $ 0.16
NET INCOME PER SHARE - DILUTED $ 0.18 $ 0.16
Weighted average shares outstanding - basic 99,206 100,152
Weighted average shares outstanding - diluted 99,393 100,468
CONFERENCE CALL ANNOUNCEMENT Rollins, Inc. (NYSE: ROL) Management will hold a conference call to discuss First Quarter results on: Wednesday, April 28, 2010 at: 10:00 a.m. Eastern 9:00 a.m. Central 8:00 a.m. Mountain 7:00 a.m. Pacific TO PARTICIPATE: Please dial877-941-8610domestic; 480-629-9820international atleast5 minutes before start time. REPLAY: available through May 5, 2010 Please dial 800-406-7325/303-590-3000, Passcode: 4282234 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 April 28, 2010