Exhibit 99.1


For Further Information Contact

Harry J. Cynkus

(404) 888-2922

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS FOURTH QUARTER AND

FULL-YEAR FINANCIAL RESULTS

 

ATLANTA, GEORGIA, February 15, 2006: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported revenues for the fourth quarter ended December 31, 2005 grew 6.0% to $194.8 million compared to $183.8 million for the fourth quarter ended December 31, 2004.

 

The Company recorded net income of $8.9 million or $0.13 per diluted share for the fourth quarter ended December 31, 2005, compared to $13.9 million or $0.20 per diluted share for the fourth quarter ended December 31, 2004. Net income for the fourth quarter of 2004 included gains from the sale of assets, net of taxes, of $6.3 million or $0.09 per diluted share. Adjusted income for fourth quarter 2005 excluding gain on sale of assets was $8.6 million, compared to $7.6 million for fourth quarter 2004, a 13.6% increase.

 

Rollins’s revenues for full year 2005 grew 6.9% to $802.4 million compared to $750.9 million for full year of 2004. Net income for the twelve months of 2005 grew 4.3% to $54.3 million or $0.78 per diluted share, compared to $52.1 million or $0.74 per diluted share for the twelve months of 2004. Net income for the full year excluding pension curtailment, gain on sale of assets and cumulative effect of change in accounting principle was $51.2 million, or $0.74 per share, compared to net income of $43.7 million for 2004, a 17.2% increase.

 

Rollins’ balance sheet remains strong with total assets of $438.5 million and stockholders’ equity increasing to $178.5 million. Earlier this year, the Company announced that during the fourth quarter it repurchased 447,907 shares of common stock at a weighted average price of $19.36 per share. Total share repurchases for 2005 totaled 1,652,202 shares at a weighted average price of $18.30 per share.

 

Commenting on the Company's results, Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. said, "We are particularly pleased to report that we reached a milestone in 2005, having achieved over $800 million in revenues for the year. We are deeply appreciative of our employees and customers that made this possible. At the same time we recorded our 24th quarter of improved performance.”

 

Mr. Rollins continued, “The Industrial Fumigant Company, our most recent acquisition is already contributing to our success, and their leadership and expertise will be invaluable to us as we look to further expand our commercial services division.”

 

 

 

 

 

Mr. Rollins concluded, “We recognize that there is much to be done in 2006 as we make major investments in our businesses in order to gain more customers and provide them with ever improving pest and termite control services. In 2005 we began several initiatives that will accelerate and help us achieve these goals. As an example this year we will be adding approximately 100 new sales persons over the course of the year. We are optimistic about Rollins prospects and look forward to reporting to you on our progress throughout the year.”

 

Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, Inc., 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 and Panama 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 include statements regarding the future impact of IFC’s leadership expertise, of our investments in our businesses, and our new sales people, the success of 2005 for the Company and its shareholders. 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, 2004.

 

 

 

 


 

 

 

 


 

 

 

 


 

 

 

 

CONFERENCE CALL

Rollins, Inc.

(NYSE: ROL)

 


 

 

Management will hold a conference call to discuss

fourth quarter results on:

 

Wednesday, February 15, 2006 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 800-257-7087 domestic;

303-275-2170 international

at least 5 minutes before start time.

 

REPLAY: available through February 22, 2006

Please dial 800-405-2236/303-590-3000, Passcode: 11051937

THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT

www.viavid.net

 

Questions?

Contact Janet Jazmin at FRB/Weber Shandwick at 212-827-3777

Or email to jjazmin@financialrelationsboard.com