Exhibit 99.1
For Further Information Contact
Harry J. Cynkus (404) 888-2922
FOR IMMEDIATE RELEASE
ROLLINS, INC. REPORTS RECORD FOURTH QUARTER AND
FULL-YEAR 2007 FINANCIAL RESULTS
Company Posts 10th Consecutive Year of Improving Financial Performance
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Revenue increased 5.5% for the quarter and 4.2% for full year |
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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 |
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Cash and Cash Equivalents increased 12.5% to $71.3 million |
ATLANTA, GEORGIA, January 23, 2008: 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 years 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 stockholders 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 Companys 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 Companys belief that the investments the Company is making are generating improved sales growth and service efficiency; the Companys excitement about the Companys opportunities for the new year; and the Companys 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 Companys pest and termite process reforms and pest control selling and treatment methods; the Companys 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 Companys Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2006.
ROLLINS, INC. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
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(in thousands) |
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2007 |
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2006 |
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At December 31, |
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(unaudited) |
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(unaudited) |
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ASSETS |
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Cash and cash equivalents |
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$ |
71,280 |
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$ |
63,344 |
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Trade receivables, short-term |
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54,457 |
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52,693 |
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Materials and supplies |
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8,846 |
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8,401 |
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Deferred income taxes |
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17,162 |
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19,435 |
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Other current assets |
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8,495 |
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7,200 |
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Total Current Assets |
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160,240 |
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151,073 |
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Equipment and property, net |
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77,370 |
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72,141 |
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Goodwill |
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126,684 |
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125,161 |
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Customer Contracts |
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63,056 |
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67,761 |
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Other Intangible assets |
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9,232 |
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9,294 |
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Deferred income taxes |
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7,576 |
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14,069 |
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Trade receivables, long-term |
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8,409 |
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8,796 |
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Prepaid Pension |
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16,624 |
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Other assets |
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6,037 |
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4,880 |
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Total Assets |
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$ |
475,228 |
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$ |
453,175 |
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LIABILITIES |
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Capital leases |
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$ |
1,186 |
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$ |
498 |
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Accounts payable |
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19,140 |
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16,309 |
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Accrued insurance |
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13,505 |
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14,310 |
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Accrued compensation and related liabilities |
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45,605 |
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47,305 |
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Unearned revenue |
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81,678 |
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79,441 |
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Other current liabilities |
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26,587 |
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27,343 |
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Total Current Liabilities |
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187,701 |
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185,206 |
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Capital leases, less current portion |
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601 |
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124 |
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Accrued pension |
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6,946 |
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Long-term accrued liabilities |
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53,373 |
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49,440 |
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Total Liabilities |
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241,675 |
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241,716 |
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STOCKHOLDERS EQUITY |
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Common stock |
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100,636 |
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101,837 |
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Retained earnings and other equity |
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132,917 |
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109,622 |
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Total Stockholders Equity |
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233,553 |
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211,459 |
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Total Liabilities and Stockholders Equity |
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$ |
475,228 |
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$ |
453,175 |
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CONSOLIDATED STATEMENTS OF INCOME |
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FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED DECEMBER 31, |
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(in thousands except per share data) |
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(unaudited) |
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Fourth Quarter Ended |
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Twelve Months Ended |
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December 31, |
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December 31, |
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2007 |
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2006 |
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2007 |
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2006 |
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REVENUES |
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Customer services |
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$ |
215,954 |
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$ |
204,653 |
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$ |
894,920 |
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$ |
858,878 |
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COSTS AND EXPENSES |
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Cost of services provided |
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117,199 |
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112,601 |
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468,665 |
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457,869 |
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Depreciation and amortization |
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6,586 |
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6,460 |
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27,068 |
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26,860 |
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Sales, general and administrative |
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74,633 |
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69,250 |
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296,615 |
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280,578 |
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(Gain)/Loss on sale of assets |
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61 |
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(65 |
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(52 |
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(81 |
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Interest income |
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(749 |
) |
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(539 |
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(2,289 |
) |
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(1,507 |
) |
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197,730 |
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187,707 |
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790,007 |
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763,719 |
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INCOME BEFORE TAXES |
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18,224 |
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16,946 |
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104,913 |
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95,159 |
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PROVISION FOR INCOME TAXES |
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6,290 |
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6,407 |
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40,182 |
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37,350 |
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NET INCOME |
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$ |
11,934 |
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$ |
10,539 |
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$ |
64,731 |
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$ |
57,809 |
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NET INCOME PER SHARE - BASIC |
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$ |
0.12 |
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$ |
0.10 |
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$ |
0.65 |
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$ |
0.57 |
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NET INCOME PER SHARE - DILUTED |
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$ |
0.12 |
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$ |
0.10 |
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$ |
0.64 |
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$ |
0.56 |
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Weighted average shares outstanding - basic |
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99,854 |
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100,662 |
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100,299 |
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100,747 |
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Weighted average shares outstanding - Diluted |
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101,051 |
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103,090 |
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101,409 |
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103,314 |
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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