Exhibit 99.1
For Further Information
Contact
Harry J. Cynkus (404)
888-2922
FOR
IMMEDIATE RELEASE
ROLLINS, INC. REPORTS FOURTH QUARTER AND FULL-YEAR 2009
FINANCIAL RESULTS
Company Posts 15th Consecutive Quarter of Improved
Earnings Results
· Revenue increased 4.6% for the
quarter and 5.2% for full year
· Net income up 59.0% for the
quarter and 21.8% for the full year
· Earnings per diluted share rose 53.8%
for the quarter to $0.20
from $0.13 and 21.7% to $0.84
from $0.69 for the full year
ATLANTA,
GEORGIA, January 27, 2010: 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, 2009.
The
Company recorded fourth quarter revenues of $259.6 million, an increase of 4.6%
over the prior year’s fourth quarter revenue of $248.1 million. Net income increased 59.0% to $20.0 million
or $0.20 per diluted share for the fourth quarter ended December 31, 2009,
compared to $12.6 million or $0.13 per diluted share for the same period in
2008.
In
the fourth quarter of 2009, Rollins converted Orkin, Inc. and certain
other operating subsidiaries from C corporations to wholly owned limited
liability companies. This change will
allow Rollins to use the operating profits generated by these subsidiaries to
offset Rollins’ state tax losses and reduce state income taxes. The Company also recognized a non-cash
pre-tax impairment charge of approximately $2.9 million following management’s determination
that a routing and scheduling system under development would require
substantial changes and expense in order to deliver the product expected. The Company is exploring alternative solutions
as the potential benefits of an effective routing and scheduling system would
be significant.
Excluding
a tax benefit of $6.2 million or $0.06 per diluted share on Rollins’ conversion
of Orkin to a limited liability company, net of cost associated with a Canadian
restructuring and repatriation of cash, and the impairment charge of $0.02 per
diluted share associated with the software system write-off, the Company’s
earnings per share for fourth quarter 2009 were $0.16 per diluted share, an
improvement of 23.1% compared to fourth quarter 2008.
The
Company repurchased 227,100 shares at a weighted average price of $18.18 per
share in the fourth quarter bringing the total number of shares repurchased in
2009 to 1,677,200. In total, 2,951,591
additional shares may be purchased under the share repurchase program.
Revenues
for the full year 2009 rose 5.2% to $1.1 billion compared to slightly over $1.0
billion for the prior year. Rollins’ net
income for the full year rose 21.8% to $84.0 million, or $0.84 per diluted
share, compared to net income of $68.9 million, or $0.69 per diluted share for
the prior year. Excluding the impact of Rollins conversion of Orkin to a
limited liability company, and the impairment charge associated with the software
system write off in the fourth quarter of 2009, the Company’s earnings for the year
were $0.80 per diluted share, an improvement of 15.9% compared to the full year
2008.
Rollins’
balance sheet continued to strengthen with total assets increasing to $566.5
million and stockholder’s equity of $264.6 million.
Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “Once again, the Rollins family of pest control companies has exceeded our objectives. We are pleased to have delivered solid results for the fourth quarter as well as the year. These results reflect our success in navigating through a challenging economy and tough selling environment, while growing market share and controlling our expenses.”
Mr. Rollins concluded, “The continued development and deployment of our key programs should enable us to continue to make prudent investments to grow our business both organically and through strategic acquisitions. We believe that Rollins enters the 2010 fiscal year well-positioned to benefit from our 2009 achievements.”
Rollins, Inc.
is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin,
PCO Services, HomeTeam Pest Defense, Western Pest Services, The Industrial
Fumigant Company and Crane Pest Control, the Company provides essential pest control
services and protection against termite damage, rodents and insects to over 2
million customers in the United States, Canada, Mexico, Central America, the
Caribbean, the Middle East, Asia and the Mediterranean 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.orkincanada.ca, www.indfumco.com,
www.cranepestcontrol.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 statements about the Company’s belief that the continued
development and deployment of the Company’s key programs should enable the
Company to continue to make prudent investments to grow its business both
organically and through strategic acquisitions, and the Company’s belief that
it enters the 2010 fiscal year well-position to benefit from its 2009
achievements.
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, economic and competitive
conditions which may adversely affect our Company’s business; 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; 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, 2008.
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
(in
thousands)
|
At December 31,
(unaudited)
|
|
2009
|
|
2008
|
|
|
ASSETS
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
9,504
|
|
$
|
13,716
|
|
|
Trade receivables, short-term
|
|
60,590
|
|
56,884
|
|
|
Accounts Receivable - Other
|
|
2,164
|
|
2,185
|
|
|
Materials and supplies
|
|
10,208
|
|
10,893
|
|
|
Deferred income taxes
|
|
25,839
|
|
20,018
|
|
|
Other current assets
|
|
12,225
|
|
13,142
|
|
|
Total Current Assets
|
|
120,530
|
|
116,838
|
|
|
|
|
|
|
|
|
|
Trade receivables, long-term
|
|
9,356
|
|
11,124
|
|
|
Equipment and property, net
|
|
74,644
|
|
78,625
|
|
|
Goodwill
|
|
189,658
|
|
187,266
|
|
|
Customer Contracts
|
|
121,176
|
|
129,092
|
|
|
Other Intangible Assets
|
|
24,785
|
|
25,719
|
|
|
Deferred income taxes
|
|
17,901
|
|
17,886
|
|
|
Other assets
|
|
8,446
|
|
5,967
|
|
|
Total Assets
|
|
$
|
566,496
|
|
$
|
572,517
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
15,841
|
|
$
|
18,782
|
|
|
Accrued insurance
|
|
16,567
|
|
15,404
|
|
|
Accrued compensation and related
liabilities
|
|
57,377
|
|
56,334
|
|
|
Unearned revenue
|
|
85,883
|
|
88,288
|
|
|
Capital leases
|
|
217
|
|
450
|
|
|
Line of Credit
|
|
30,000
|
|
65,000
|
|
|
Other current liabilities
|
|
26,868
|
|
28,569
|
|
|
Total Current Liabilities
|
|
232,753
|
|
272,827
|
|
|
|
|
|
|
|
|
|
Capital leases, less current portion
|
|
33
|
|
171
|
|
|
Accrued pension
|
|
14,895
|
|
20,353
|
|
|
Long-term accrued liabilities
|
|
54,249
|
|
50,733
|
|
|
Total Liabilities
|
|
301,930
|
|
344,084
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
Common stock
|
|
98,904
|
|
100,041
|
|
|
Retained earnings and other equity
|
|
165,662
|
|
128,392
|
|
|
Total Stockholders’ Equity
|
|
264,566
|
|
228,433
|
|
|
Total Liabilities and
Stockholders’ Equity
|
|
$
|
566,496
|
|
$
|
572,517
|
|
(( CONFERENCE CALL ANNOUNCEMENT ((
Rollins, Inc.
(NYSE:
ROL)
Management
will hold a conference call to discuss
Fourth
Quarter results on:
Wednesday, January 27, 2010
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 888-561-1721
domestic;
480-629-9868 international
at least 5 minutes before
start time.
REPLAY: available through February 3,
2010
Please dial 800-406-7325/303-590-3000,
Passcode: 4200223
THIS CALL CAN ALSO BE
ACCESSED THROUGH THE INTERNET AT
www.viavid.net
Questions?
Contact
Samantha Alphonso at Financial Relations Board at 212-827-3746
Or email to salphonso@mww.com