Exhibit 99.1
For Further Information Contact
Harry J. Cynkus
(404) 888-2922
FOR IMMEDIATE RELEASE
ROLLINS ANNOUNCES FIRST QUARTER 2003 RESULTS
o First Quarter EPS of $0.16 versus $0.11
o Cash increased by $16.0 million
o Revenue increase of 1.2% over last year
ATLANTA, GEORGIA, April 22, 2003: Rollins, Inc. (NYSE:ROL), a premier North
American consumer services company, reported first quarter revenue increased
1.2% to $155.1 million for the period ended March 31, 2003 compared to $153.3
million for the prior year quarter.
Net income increased 47.2% to $7.3 million or $0.16 per diluted share for the
quarter ended March 31, 2003, compared to $4.9 million or $0.11 per diluted
share for the same period in 2002.
Over the past few years Rollins has taken decisive steps to be more efficient in
servicing its customers. This has resulted in stronger sustainable operating
results year over year, which continued during the first quarter 2003.
The Company's balance sheet continued to strengthen as of March 31, 2003, with
cash and short-term investments of $54.4, total assets of $331.7 million and
stockholders' equity increasing to $99.4 million.
Additionally, the Company split its stock three-for-two effective March 10,
2003.
"We are proud that our operating results improved during the quarter, given the
tough economy and harsher than normal winter weather conditions in many of our
markets. Our results continue to reflect our success in improving employee and
customer retention while enhancing productivity," stated Gary W. Rollins,
President and Chief Executive Officer of Rollins, Inc. "Orkin is a fundamentally
strong company that has initiated numerous innovations to improve its
operations. Our recent recognition as one of the top U.S. 100 training companies
by Training Magazine is further validation of our commitment to excel."
Rollins, Inc. is one of the nation's largest consumer services companies.
Through its wholly-owned subsidiary, Orkin Exterminating Company, Inc., the
Company provides essential pest control services and protection against termite
damage, rodents and insects to approximately 1.6 million customers in the United
States, Canada and Mexico from over 400 locations. You can learn more about
Orkin by visiting our Web sites at www.orkin.com and www.rollinscorp.com.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
The above release contains statements that constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. 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 potential acquisitions;
climate and weather trends; competitive factors and pricing practices; the cost
reduction benefits of the corporate restructuring may not be as great as
expected or eliminated positions may have to be reinstated in the future;
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.
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In Thousands)
2003 2002
At March 31 (Unaudited) (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and Short-Term Investments $ 54,351 $ 21,900
Trade Receivables, Net 48,204 47,797
Materials and Supplies 11,188 11,620
Deferred Income Taxes 20,088 20,584
Other Current Assets 11,533 10,287
----------------- ---------------
Current Assets 145,364 112,188
Equipment and Property, Net 36,338 43,192
Goodwill and Other Intangible Assets 106,681 111,224
Deferred Income Taxes 43,345 38,513
Other Assets 0 0
----------------- ---------------
Total Assets $ 331,728 $ 305,117
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- ------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Accounts Payable $ 13,960 $ 12,794
Accrued Insurance 11,075 8,307
Accrued Payroll 23,956 26,104
Unearned Revenue 46,038 29,856
Other Current Liabilities 38,858 30,532
----------------- ---------------
Current Liabilities 133,887 107,593
Long-Term Accrued Liabilities 98,474 106,837
----------------- ---------------
Total Liabilities 232,361 214,430
----------------- ---------------
- ------------------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY
Common Stock 45,134 45,241
Retained Earnings 54,233 45,446
----------------- ---------------
Total Stockholders' Equity 99,367 90,687
----------------- ---------------
Total Liabilities and Stockholders' Equity $ 331,728 $ 305,117
================= ===============
ROLLINS, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME
FOR THE FIRST QUARTER ENDED MARCH 31
(In thousands except per share data)
First Quarter
---------------------------
2003 2002
(Unaudited) (Unaudited)
------------ -------------
REVENUES $ 155,122 $ 153,302
------------ -------------
COSTS AND EXPENSES
Cost of Services Provided 84,078 84,022
Depreciation and Amortization 5,156 5,427
Sales, General and Administrative 54,222 55,837
Interest (Income)/Expense (66) 49
------------ -------------
TOTAL COSTS AND EXPENSES 143,390 145,335
------------ -------------
INCOME BEFORE INCOME TAXES 11,732 7,967
PROVISION FOR INCOME TAXES 4,458 3,027
------------ -------------
NET INCOME $ 7,274 $ 4,940
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EARNINGS PER SHARE - BASIC $ 0.16 $ 0.11
============ =============
EARNINGS PER SHARE - DILUTED $ 0.16 $ 0.11
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AVERAGE SHARES OUTSTANDING - BASIC 44,912 45,195
AVERAGE SHARES OUTSTANDING - DILUTED 46,110 45,489
ROLLINS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31
(In thousands)
(Unaudited)
2003 2002
--------------- --------------
Operating Activities
Net Income $ 7,274 $ 4,940
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Depreciation and Amortization 5,156 5,427
Other Operating Activities 5,724 7,912
--------------- --------------
Net Cash Provided by Operating Activities 18,154 18,279
--------------- --------------
Investing Activities
Purchases of Equipment and Property (961) (2,725)
Net Cash Used for Acquisition of Companies (385) (545)
--------------- --------------
Net Cash Used In Investing Activities (1,346) (3,270)
--------------- --------------
Financing Activities
Dividends Paid (2,247) (1,507)
Payments on Capital Leases 0 (256)
Other 1,475 4
--------------- --------------
Net Cash Used in Financing Activities (772) (1,759)
--------------- --------------
Net Increase (Decrease) in Cash and Short-Term Investments 16,036 13,250
Cash and Short-Term Investments at Beginning of Year 38,315 8,650
--------------- --------------
Cash and Short-Term Investments at End of Period $ 54,351 $ 21,900
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