Rollins, Inc. Reports Record Fourth Quarter and Full-Year 2007 Financial Results
Company Posts 10th Consecutive Year of Improving Financial Performance
-- Revenue increased 5.5% for the quarter and 4.2% for full year
-- Diluted Earnings per share rose from $0.56 to $0.64 for 2007, a 14.3% increase and 20% for the quarter from $0.10 to $0.12
-- Cash and Cash Equivalents increased 12.5% to $71.3 million
ATLANTA--(BUSINESS WIRE)--
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, 2007.
The Company recorded fourth quarter revenues of $216.0 million, an increase of 5.5% over the prior year's fourth quarter revenue of $204.7 million. Net income increased 13.2% to $11.9 million or $0.12 per diluted share for the fourth quarter ended December 31, 2007, compared to $10.5 million or $0.10 per diluted share for the same period in 2006.
Revenues for full year 2007 rose 4.2% to $894.9 million, compared to $858.9 million for the prior year. Rollins' net income for the full year rose 12% to $64.7 million or $0.64 per diluted share compared to net income of $57.8 million or $0.56 per diluted share for the prior year.
Rollins' balance sheet continued to grow with total assets increasing to $475.2 million and stockholder's equity growth to $233.6 million. The Company ended the year with cash and cash equivalents of $71.3 million, up 12.5% over last year.
Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "The positive performance we achieved in our fourth quarter and full year reflect the success of our sales and service programs. We are seeing the benefits from the investments we are making that are generating improved sales growth as well as improving service efficiency."
Mr. Rollins concluded, "We are excited about our Company's opportunities in the new year. The continued development and deployment of our key programs should enable us to maintain our momentum. We are very proud of our people who have worked diligently to make 2007 such a success and likewise will be key in 2008."
Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, Inc., PCO Services, Western Pest Services, and The Industrial Fumigant Company, the Company provides essential pest control services and protection against termite damage, rodents and insects to approximately 1.7 million customers in the United States, Canada, Mexico, Central America, the Caribbean, the Middle East and Asia from over 400 locations. You can learn more about our subsidiaries by visiting our Web sites at www.orkin.com, www.westernpest.com, www.indfumco.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 Company's belief that the investments the Company is making are generating improved sales growth and service efficiency; the Company's excitement about the Company's opportunities for the new year; and the Company's belief that the continued development and deployment of its key programs should enable the Company to maintain its momentum. 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, general economic conditions; market risk; 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; expected benefits of the commercial re-engineering project may not be realized; 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, 2006.
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)
2007 2006
At December 31, (unaudited) (unaudited)
----------------------------------------------------------------------
ASSETS
Cash and cash equivalents $ 71,280 $ 63,344
Trade receivables, short-term 54,457 52,693
Materials and supplies 8,846 8,401
Deferred income taxes 17,162 19,435
Other current assets 8,495 7,200
----------- -----------
Total Current Assets 160,240 151,073
Equipment and property, net 77,370 72,141
Goodwill 126,684 125,161
Customer Contracts 63,056 67,761
Other Intangible assets 9,232 9,294
Deferred income taxes 7,576 14,069
Trade receivables, long-term 8,409 8,796
Prepaid Pension 16,624 -
Other assets 6,037 4,880
----------- -----------
Total Assets $475,228 $453,175
=========== ===========
LIABILITIES
Capital leases $ 1,186 $ 498
Accounts payable 19,140 16,309
Accrued insurance 13,505 14,310
Accrued compensation and related liabilities 45,605 47,305
Unearned revenue 81,678 79,441
Other current liabilities 26,587 27,343
----------- -----------
Total Current Liabilities 187,701 185,206
Capital leases, less current portion 601 124
Accrued pension - 6,946
Long-term accrued liabilities 53,373 49,440
----------- -----------
Total Liabilities 241,675 241,716
----------- -----------
STOCKHOLDERS' EQUITY
Common stock 100,636 101,837
Retained earnings and other equity 132,917 109,622
----------- -----------
Total Stockholders' Equity 233,553 211,459
----------- -----------
Total Liabilities and Stockholders' Equity $475,228 $453,175
=========== ===========
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED DECEMBER 31,
(in thousands except per share data)
(unaudited)
Fourth Quarter Ended Twelve Months Ended
December 31, December 31,
-------------------- -------------------
2007 2006 2007 2006
---------- --------- --------- ---------
REVENUES
Customer services $215,954 $204,653 $894,920 $858,878
COSTS AND EXPENSES
Cost of services provided 117,199 112,601 468,665 457,869
Depreciation and
amortization 6,586 6,460 27,068 26,860
Sales, general and
administrative 74,633 69,250 296,615 280,578
(Gain)/Loss on sale of
assets 61 (65) (52) (81)
Interest income (749) (539) (2,289) (1,507)
---------- --------- --------- ---------
197,730 187,707 790,007 763,719
---------- --------- --------- ---------
INCOME BEFORE TAXES 18,224 16,946 104,913 95,159
---------- --------- --------- ---------
PROVISION FOR INCOME TAXES 6,290 6,407 40,182 37,350
---------- --------- --------- ---------
NET INCOME $ 11,934 $ 10,539 $ 64,731 $ 57,809
========== ========= ========= =========
NET INCOME PER SHARE - BASIC $ 0.12 $ 0.10 $ 0.65 $ 0.57
========== ========= ========= =========
NET INCOME PER SHARE - DILUTED $ 0.12 $ 0.10 $ 0.64 $ 0.56
========== ========= ========= =========
Weighted average shares
outstanding - basic 99,854 100,662 100,299 100,747
Weighted average shares
outstanding - Diluted 101,051 103,090 101,409 103,314
CONFERENCE CALL ANNOUNCEMENT
Rollins, Inc.
(NYSE: ROL)
Management will hold a conference call to discuss
Fourth quarter results on:
Wednesday, January 23, 2008 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 800-240-2430 domestic;
303-262-2140 international
at least 5 minutes before start time.
REPLAY: available through January 30, 2008
Please dial 800-405-2236/303-590-3000, Passcode: 11106089
THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT
www.viavid.net
Questions?
Contact Janet Jazimin at Financial Relations Board at 212-827-3777
Or email to jjazimin@financialrelationsboard.com
Source: Rollins, Inc.
Released January 23, 2008