Exhibit 99.1

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

 

ROLLINS, INC.

REPORTS POSITIVE FIRST QUARTER FINANCIAL RESULTS

 

ATLANTA, GEORGIA, April 23, 2008: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for the first quarter ended March 31, 2008. Revenues grew 4.4% to $210.1 million compared to $201.2 million for the first quarter ended March 31, 2007.

 

The Company recorded net income of $13.8 million or $0.14 per diluted share for the first quarter ended March 31, 2008, compared to $12.8 million or $0.13 per diluted share for the first quarter ended March 31, 2007.

 

On January 23, 2008, Rollins, Inc. approved a 25% increase in the Company’s regular quarterly cash dividend to $0.0625. Also in the first quarter, the Company announced that it repurchased 236,000 shares of common stock at a weighted average price of $17.09 per share. In total, approximately 778,000 additional shares may be purchased under previous authorization by the Board of Directors.

 

Commenting on the Company's results, Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. said, “We were pleased with our revenue improvement in the first quarter. Commercial sales, which significantly increased in the fourth quarter, continued to be strong in our first quarter. This quarter is not a high volume quarter for Residential Pest Control and Termite Control due to the small amount of pest activity. As the weather warms, these businesses will gain momentum.

 

"On April 3, 2008, we completed the acquisition of HomeTeam Pest Defense, a subsidiary of Centex Corporation (NYSE:CTX) for a cash payment of approximately $137 million. HomeTeam recorded pest control revenues of $134 million for the twelve months completed March 31, 2007. HomeTeam has 50 offices in 13 states, is the nation’s third largest residential pest management company and performs services for approximately 400,000 customers coast to coast. This acquisition provides significant opportunity for Rollins to leverage HomeTeam’s proprietary technology and new home marketing expertise to more markets throughout the U.S. The purchase of HomeTeam will provide us with an entry into a new business channel, and provide our company a meaningful opportunity for longer term growth. We look forward to working with this great team of professionals, and will benefit from their talent and experience.”

 

Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, Inc., PCO Services, Rollins HomeTeam, 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 2.1 million customers in the United States, Canada, Mexico, Central America, the Caribbean, the Middle East and Asia from over 500 locations. You can learn more about our subsidiaries by visiting our Web sites at www.orkin.com, www.pestdefense.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 Company’s belief that its residential pest control and termite control businesses will gain momentum as the weather warms; the acquisition of HomeTeam Pest Defense provides significant opportunity for the Company to leverage HomeTeam’s proprietary technology and new home marketing expertise to more markets throughout the U.S.; the purchase of HomeTeam will provide the Company with an entry into a new business channel and provide the Company a meaningful opportunity for longer term growth; and the Company will benefit from the talent and experience of the HomeTeam Pest Defense team of professionals. 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, 2007.

 

 

ROLLINS, INC. AND SUBSIDIARIES

 

 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 

 

(in thousands)

 

 

 

 

2008

 

 

 

2007

 

 

At March 31,

 

(unaudited)

 

 

 

(unaudited)

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

71,365

 

 

 

$

54,994

 

Trade receivables, short-term

 

 

53,908

 

 

 

 

50,711

 

Materials and supplies

 

 

8,715

 

 

 

 

8,691

 

Deferred income taxes

 

 

17,901

 

 

 

 

19,603

 

Other current assets

 

 

9,115

 

 

 

 

9,971

 

Total Current Assets

 

 

161,004

 

 

 

 

143,970

 

 

 

 

 

 

 

 

 

 

 

Equipment and property, net

 

 

76,823

 

 

 

 

76,850

 

Goodwill

 

 

126,296

 

 

 

 

125,230

 

Other Intangible Assets

 

 

9,176

 

 

 

 

9,195

 

Customer Contracts

 

 

60,843

 

 

 

 

65,950

 

Deferred income taxes

 

 

7,676

 

 

 

 

12,956

 

Trade receivables, long-term

 

 

8,918

 

 

 

 

8,519

 

Prepaid Pension

 

 

17,169

 

 

 

 

—

 

Other assets

 

 

6,828

 

 

 

 

5,514

 

Total Assets

 

$

474,733

 

 

 

$

448,184

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Capital leases

 

$

798

 

 

 

$

1,183

 

Accounts payable

 

 

18,562

 

 

 

 

15,827

 

Accrued insurance

 

 

14,235

 

 

 

 

13,978

 

Accrued compensation and related liabilities

 

 

33,048

 

 

 

 

33,189

 

Other current liabilities

 

 

32,553

 

 

 

 

35,889

 

Unearned revenue

 

 

85,253

 

 

 

 

83,674

 

Total Current Liabilities

 

 

184,449

 

 

 

 

183,740

 

 

 

 

 

 

 

 

 

 

 

Capital leases, less current portion

 

 

757

 

 

 

 

939

 

Accrued pension

 

 

—

 

 

 

 

6,946

 

Long-term accrued liabilities

 

 

52,979

 

 

 

 

51,694

 

Total Liabilities

 

 

238,185

 

 

 

 

243,319

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Common stock

 

 

100,913

 

 

 

 

101,919

 

Retained earnings and other equity

 

 

135,635

 

 

 

 

102,946

 

Total Stockholders’ Equity

 

 

236,548

 

 

 

 

204,865

 

Total Liabilities and Stockholders’ Equity

 

$

474,733

 

 

 

$

448,184

 

 

 

 

ROLLINS, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF INCOME

 

FOR THE FIRST QUARTER ENDED MARCH 31,

 

(in thousands except per share data)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months ended

 

 

 

 

 

March 31,

 

 

 

 

 

 

2008

 

 

 

 

2007

 

 

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

Customer services

 

$

210,078

 

 

 

$

201,232

 

 

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

 

 

 

Cost of services provided

 

 

110,359

 

 

 

 

106,836

 

 

 

Depreciation and amortization

 

 

6,631

 

 

 

 

6,686

 

 

 

Sales, general and administrative

 

 

70,760

 

 

 

 

67,041

 

 

 

(Gain)/loss on sales of assets

 

 

(21

)

 

 

 

(7

)

 

 

Interest income

 

 

(397

)

 

 

 

(552

)

 

 

 

 

 

187,332

 

 

 

 

180,004

 

 

 

INCOME BEFORE TAXES

 

 

22,746

 

 

 

 

21,228

 

 

 

PROVISION FOR INCOME TAXES

 

 

8,907

 

 

 

 

8,435

 

 

 

NET INCOME

 

$

13,839

 

 

 

$

12,793

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER SHARE - BASIC

 

$

0.14

 

 

 

$

0.13

 

 

 

NET INCOME PER SHARE - DILUTED

 

$

0.14

 

 

 

$

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

 

99,388

 

 

 

 

100,982

 

 

 

Weighted average shares outstanding - Diluted

 

 

100,401

 

 

 

 

103,094

 

 

 

 

CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)

 

 

 

Management will hold a conference call to discuss

First Quarter results on:

 

Wednesday, April 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 800-366-3908 domestic;

303-262-2130 international

at least 5 minutes before start time.

 

REPLAY: available through April 30, 2008

Please dial 800-405-2236/303-590-3000, Pass code: 11112420

THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT

www.viavid.net  

 

Questions?

Contact Janet Jazmin at Financial Relations Board at 212-827-3777

Or email to jjazmin@frbir.com