Exhibit 99.1 For Further Information Contact
Harry J. Cynkus
(404) 888-2922
FOR IMMEDIATE RELEASE
ROLLINS, INC. REPORTS CONTINUED GROWTH IN QUARTERLY EARNINGS
15TH Consecutive Quarter of Improvement in Earnings Per Share
o Net Income rose 45.1% to $9.8 million
o Cash and Marketable Securities increased 26.5% to $82.1 million
o Revenue grew 2.4% over last year
ATLANTA, GEORGIA, October 29, 2003: Rollins, Inc. (NYSE:ROL), a premier North
American consumer services company, today reported that net income increased
45.1% to $9.8 million or $0.21 per diluted share for the third quarter ended
September 30, 2003, compared to $6.8 million or $0.15 per diluted share for the
same period in 2002. Revenue for the third quarter grew 2.4% to $178.3 million
compared to $174.1 million for the third quarter ended September 30, 2002.
Net income for the first nine months of 2003 climbed 32.3% to $30.9 million or
$0.67 per diluted share compared to net income of $23.4 million or $0.52 per
diluted share for the comparable nine months in 2002. Revenues increased to
$518.5 million for the first nine months compared to $511.6 million for the
prior year-to-date period.
Rollins' balance sheet continued to strengthen. The Company ended the quarter
with cash and marketable securities of $82.1 million, total assets of $357.1
million and stockholders' equity increased to $119.8 million.
Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated,
"We are pleased by the increased rate of organic revenue growth for the quarter,
an indication that our sales programs have begun to contribute. Our service
initiatives are enabling us to provide better service to our customers while
improving productivity. The Company's strong free cash flow supports our ability
to pursue opportunities to acquire select pest control companies."
Rollins, Inc. is one of the nation's largest consumer services companies.
Through its wholly-owned subsidiary, Orkin, 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.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
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 September 30 (Unaudited) (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and Short-Term Investments $ 55,066 $ 44,494
Marketable Securities 27,000 0
Trade Receivables, Net 52,689 53,450
Materials and Supplies 10,646 11,075
Deferred Income Taxes 21,934 20,019
Other Current Assets 13,035 10,992
----------------- ---------------
Current Assets 180,370 140,030
Equipment and Property, Net 37,484 38,252
Goodwill and Other Intangible Assets 104,470 109,439
Deferred Income Taxes 34,760 38,248
----------------- ---------------
Total Assets $ 357,084 $ 325,969
================= ===============
- ------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Accounts Payable $ 13,482 $ 11,734
Accrued Insurance 13,050 13,230
Accrued Payroll 33,218 28,853
Unearned Revenue 49,533 43,072
Other Current Liabilities 37,787 34,738
----------------- ---------------
Current Liabilities 147,070 131,627
Long-Term Accrued Liabilities 90,173 93,221
----------------- ---------------
Total Liabilities 237,243 224,848
----------------- ---------------
- ------------------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY
Common Stock 45,108 44,835
Retained Earnings and Other Equity 74,733 56,286
----------------- ---------------
Total Stockholders' Equity 119,841 101,121
----------------- ---------------
Total Liabilities and Stockholders' Equity $ 357,084 $ 325,969
================= ===============
ROLLINS, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME
FOR THE THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30
(In thousands except per share data)
Third Quarter Nine Months
--------------------------- ---------------------------
2003 2002 2003 2002
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------ ------------- ------------ -------------
REVENUES $ 178,262 $ 174,063 $ 518,489 $ 511,554
------------ ------------- ------------ -------------
COSTS AND EXPENSES
Cost of Services Provided 96,085 94,402 275,713 275,609
Depreciation and Amortization 5,065 5,425 15,258 16,298
Sales, General and Administrative 61,426 63,478 177,901 182,055
Interest (Income)/Expense (120) (135) (280) (125)
------------ ------------- ---------------------------
TOTAL COSTS AND EXPENSES 162,456 163,170 468,592 473,837
------------ ------------- ------------ -------------
INCOME BEFORE INCOME TAXES 15,806 10,893 49,897 37,717
PROVISION FOR INCOME TAXES 6,006 4,139 18,961 14,332
------------ ------------- ------------ -------------
NET INCOME $ 9,800 $ 6,754 $ 30,936 $ 23,385
============ ============= ============ =============
EARNINGS PER SHARE - BASIC $ 0.22 $ 0.15 $ 0.69 $ 0.52
============ ============= ============ =============
EARNINGS PER SHARE - DILUTED $ 0.21 $ 0.15 $ 0.67 $ 0.52
============ ============= ============ =============
AVERAGE SHARES OUTSTANDING - BASIC 45,115 44,885 45,049 45,101
AVERAGE SHARES OUTSTANDING - DILUTED 45,994 45,118 46,170 45,382
ROLLINS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30
(In thousands)
(Unaudited)
2003 2002
--------------- --------------
Operating Activities
Net Income $ 30,936 $ 23,385
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Depreciation and Amortization 15,258 16,298
Other Operating Activities 12,540 13,653
--------------- --------------
Net Cash Provided by Operating Activities 58,734 53,336
--------------- --------------
Investing Activities
Purchases of Equipment and Property (8,744) (5,900)
Net Cash Used for Acquisition of Companies (1,543) (1,768)
Marketable Securities, Net (27,000) 0
--------------- --------------
Net Cash Used In Investing Activities (37,287) (7,668)
--------------- --------------
Financing Activities
Dividends Paid (6,754) (4,511)
Common Stock Purchased 0 (5,288)
Other 2,058 (25)
--------------- --------------
Net Cash Used in Financing Activities (4,696) (9,824)
--------------- --------------
Net Increase in Cash and Short-Term Investments 16,751 35,844
Cash and Short-Term Investments at Beginning of Year 38,315 8,650
--------------- --------------
Cash and Short-Term Investments at End of Period $ 55,066 $ 44,494
=============== ==============
CONFERENCE CALL
Rollins, Inc.
(NYSE: ROL)
ROLLINS
Management will hold a conference call to discuss
third quarter results on:
Wednesday, October 29, 2003 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 800-240-5318 domestic;
303-262-2130 international
at least 5 minutes before start time.
REPLAY: through November 5, 2003 at 11:00 p.m.
Please dial 800-405-2236/303-590-3000, Passcode: 555970
THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT
www.viavid.net
Questions?:
Janet Cruz at FRB/Weber Shandwick at 212-445-8453 or
email to jcruz@webershandwick.com