Exhibit 99.1 For Further Information Contact
Harry J. Cynkus
(404) 888-2922
FOR IMMEDIATE RELEASE
ROLLINS REPORTS FIRST QUARTER 2004 RESULTS
Highlights
o Revenue increased 2.3%.
o Net Income rose 19.9% to $8.7 million.
o Cash increased by $38.3 million to $97.9 million.
ATLANTA, GEORGIA, April 28, 2004: Rollins, Inc. (NYSE:ROL), a premier North
American consumer services company, today reported first quarter revenues
increased 2.3% to $158.7 million for the period ended March 31, 2004 compared to
$155.1 million for the prior year quarter.
Net income increased 19.9% to $8.7 million or $0.19 per diluted share for the
quarter ended March 31, 2004, compared to $7.3 million or $0.16 per diluted
share for the same period in 2003.
The Company's balance sheet reflected the continued strong earnings with cash
and short-term investments of $97.9 million, total assets of $363.0 million and
stockholders' equity increasing to $147.8 million.
Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated,
"We have achieved another quarter of solid performance and our 17th consecutive
quarter of increased earnings per share. We are also especially pleased by the
momentum created by our new sales and marketing initiatives, as was evidenced by
increases in leads and proposals. In addition, our service programs have been
complimentary to these initiatives contributing to customer base growth through
better customer retention."
"In March we announced that we had signed a definitive purchase agreement with
Western Industries to acquire Western Pest Services. We have received FTC
approval and expect to close this acquisition at the end of this month. Western
Pest Services today ranks as the 8th largest company in the industry and
provides pest elimination and prevention to over 130,000 homes and businesses in
the eastern United States. We believe Western is one of the premier companies in
the industry and look forward to joining forces with this fine team of
professionals."
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)
2004 2003
At March 31 (Unaudited) (Unaudited)
- --------------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and Short-Term Investments $ 97,888 $ 54,351
Marketable Securities 0 0
Trade Receivables, Net 45,549 48,204
Materials and Supplies 10,147 11,188
Deferred Income Taxes 20,580 20,088
Other Current Assets 10,092 11,533
----------------- ---------------
Current Assets 184,256 145,364
Equipment and Property, Net 34,618 36,338
Goodwill and Other Intangible Assets 101,445 106,681
Deferred Income Taxes 17,287 43,345
Other Assets 25,350 0
----------------- ---------------
Total Assets $ 362,956 $ 331,728
================= ===============
- ------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Accounts Payable $ 15,325 $ 12,975
Accrued Insurance 13,050 11,075
Accrued Payroll 26,913 23,956
Unearned Revenue 50,702 46,038
Other Current Liabilities 45,483 39,843
----------------- ---------------
Current Liabilities 151,473 133,887
Long-Term Accrued Liabilities 63,640 98,474
----------------- ---------------
Total Liabilities 215,113 232,361
----------------- ---------------
- ------------------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY
Common Stock 45,399 45,134
Retained Earnings and Other Equity 102,444 54,233
----------------- ---------------
Total Stockholders' Equity 147,843 99,367
----------------- ---------------
Total Liabilities and Stockholders' Equity $ 362,956 $ 331,728
================= ===============
ROLLINS, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME
FOR THE FIRST QUARTER ENDED MARCH 31
(In thousands except per share data)
First Quarter
---------------------------
2004 2003
(Unaudited) (Unaudited)
------------ -------------
REVENUES $ 158,692 $ 155,122
------------ -------------
COSTS AND EXPENSES
Cost of Services Provided 85,357 83,926
Depreciation and Amortization 4,657 5,156
Sales, General and Administrative 54,175 54,376
(Gain)/Loss on Sales of Assets 1 (2)
Interest (Income)/Expense (150) (66)
------------ -------------
TOTAL COSTS AND EXPENSES 144,040 143,390
------------ -------------
INCOME BEFORE INCOME TAXES 14,652 11,732
PROVISION FOR INCOME TAXES 5,934 4,458
------------ -------------
NET INCOME $ 8,718 $ 7,274
============ =============
EARNINGS PER SHARE - BASIC $ 0.19 $ 0.16
============ =============
EARNINGS PER SHARE - DILUTED $ 0.19 $ 0.16
============ =============
AVERAGE SHARES OUTSTANDING - BASIC 45,298 44,912
AVERAGE SHARES OUTSTANDING - DILUTED 46,643 46,110
ROLLINS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31
(In thousands)
(Unaudited)
2004 2003
--------------- --------------
Operating Activities
Net Income $ 8,718 $ 7,274
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Depreciation and Amortization 4,657 5,156
Other Operating Activities 6,815 5,724
--------------- --------------
Net Cash Provided by Operating Activities 20,190 18,154
--------------- --------------
Investing Activities
Purchases of Equipment and Property (1,739) (961)
Net Cash Used for Acquisition of Companies (158) (385)
Sale/(Purchase) of Marketable Securities, Net 21,866 0
--------------- --------------
Net Cash Provided by (Used In) Investing Activities 19,969 (1,346)
--------------- --------------
Financing Activities
Dividends Paid (2,718) (2,247)
Common Stock Purchased 0 0
Other 907 1,475
--------------- --------------
Net Cash Used in Financing Activities (1,811) (772)
--------------- --------------
Net Increase in Cash and Short-Term Investments 38,348 16,036
Cash and Short-Term Investments at Beginning of Year 59,540 38,315
--------------- --------------
Cash and Short-Term Investments at End of Period $ 97,888 $ 54,351
=============== ==============
CONFERENCE CALL
Rollins, Inc.
(NYSE: ROL)
Management will hold a conference call to discuss
first quarter results on:
Wednesday, April 28, 2004 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 800-240-2134 domestic;
303-262-2193 international
at least 5 minutes before start time.
REPLAY: through May 5, 2004 at 11:00 p.m.
Please dial 800-405-2236/303-590-3000, Passcode: 577126
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
640 Fifth Avenue T: 212/445-8000
New York, NY 10019 F: 212/445-8001