Rollins, Inc. Reports Third Quarter 2009 Financial Results
14th Consecutive Quarter of Improved Earnings Results
ATLANTA, Oct. 28 /PRNewswire-FirstCall/ -- Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for its third quarter ended September 30, 2009. Revenues for the third quarter of 2009 grew 3.2% to $286.9 million compared to $277.9 million for the third quarter of 2008.
Net income increased 14.8% to $22.7 million or $0.23 per diluted share for the third quarter compared to $19.8 million or $0.20 per diluted share for the same period last year.
The Company repurchased 146,300 shares of common stock at a weighted average price of $17.81 per share during the third quarter bringing the total number of shares repurchased year-to-date to 1,450,100 at a weighted average price of $16.28. In total, approximately 3.2 million additional shares may be purchased under its share repurchase program.
"Rollins again delivered solid quarterly results. We were especially pleased to experience increased revenue across our entire family of companies," said Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. "Our revenue and lead generation programs are working and we are benefiting from a planned increase in our sales staff."
Mr. Rollins, concluded, "We are clearly focused on successfully completing the year while maintaining the positive momentum in revenue growth, expense control, and service performance improvement."
Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, Inc., 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, 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.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 clear focus on successfully completing the year while maintaining the positive momentum in revenue growth, expense control and service performance improvement. 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; changes in industry practices or technologies; the degree of success of the Company's pest and termite process reforms 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; 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, 2008.
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)
At September 30, (unaudited) 2009 2008
--------------------------- ---- ----
ASSETS
Cash and cash equivalents $26,221 $16,334
Trade receivables, short-term 70,750 68,032
Accounts Receivable - Other 2,338 1,717
Materials and supplies 10,341 11,117
Deferred income taxes 17,628 18,323
Other current assets 14,143 8,320
------ -----
Total Current Assets 141,421 123,843
Equipment and property, net 77,223 77,963
Goodwill 189,355 182,834
Other Intangible Assets 22,742 25,126
Customer Contracts 120,510 125,354
Deferred income taxes 16,669 8,309
Trade receivables, long-term 9,599 9,009
Prepaid Pension - 18,259
Other assets 8,008 6,604
----- -----
Total Assets $585,527 $577,301
======== ========
LIABILITIES
Loans outstanding $45,000 $41,500
Capital leases 263 661
Accounts payable 16,616 20,037
Accrued insurance 15,605 14,855
Accrued compensation and
related liabilities 58,208 53,842
Unearned revenue 95,361 99,297
Other current liabilities 29,610 29,294
------ ------
Total Current Liabilities 260,663 259,486
Capital leases, less current
portion 60 360
Accrued pension 14,992 -
Long-term accrued liabilities 56,584 54,394
------ ------
Total Liabilities 332,299 314,240
------- -------
STOCKHOLDERS' EQUITY
Common stock 99,040 100,864
Retained earnings and other
equity 154,188 162,197
------- -------
Total Stockholders' Equity 253,228 263,061
------- -------
Total Liabilities and
Stockholders' Equity $585,527 $577,301
======== ========
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
Third Quarter Ended Nine Months Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
REVENUES
Customer services $286,852 $277,911 $814,391 $772,488
COSTS AND EXPENSES
Cost of Services
provided 147,436 145,415 414,440 401,444
Depreciation
and amortization 9,321 9,031 28,124 24,347
Sales, general
and administrative 93,233 91,440 267,027 254,958
(Gain)/loss on sales
of assets 30 (154) 7 (189)
Interest
(income)/expense, net 159 174 846 (152)
--- --- --- ----
250,179 245,906 710,444 680,408
------- ------- ------- -------
INCOME BEFORE TAXES 36,673 32,005 103,947 92,080
------ ------ ------- ------
PROVISION FOR
INCOME TAXES 13,940 12,201 39,924 35,699
------ ------ ------ ------
NET INCOME $22,733 $19,804 $64,023 $56,381
======= ======= ======= =======
NET INCOME PER
SHARE - BASIC $0.23 $0.20 $0.64 $0.56
===== ===== ===== =====
NET INCOME PER
SHARE - DILUTED $0.23 $0.20 $0.64 $0.56
===== ===== ===== =====
Weighted average shares
outstanding - basic 99,125 100,882 99,615 100,905
Weighted average shares
outstanding - diluted 99,428 101,273 99,924 101,348
CONFERENCE CALL ANNOUNCEMENT
Rollins, Inc.
(NYSE: ROL)
Management will hold a conference call to discuss
Third Quarter results on:
Wednesday, October 28, 2009 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 877-941-1466 domestic;
480-629-9677 international
at least 5 minutes before start time.
REPLAY: available through November 4, 2009
Please dial 800-406-7325/303-590-3030, Passcode: 4173072
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
SOURCE Rollins, Inc.
Released October 28, 2009