Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS THIRD QUARTER AND NINE MONTHS 2010

FINANCIAL RESULTS

 

ATLANTA, GEORGIA, October 27, 2010: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for its third quarter ended September 30, 2010.  The Company recorded third quarter revenues of $305.1 million, an increase of 6.4% over the prior year’s third quarter revenue of $286.9 million.  Net income increased 12.2% to $25.5 million or $0.26 per diluted share for the third quarter ended September 30, 2010, compared to $22.7 million or $0.23 per diluted share for the same period in 2009.

 

Revenues for the first nine months of 2010 increased 5.2% to $857.0 million compared to $814.4 million for the first nine months of 2009.  Rollins’ net income for the first nine months of 2010 rose 10.6% to $70.8 million, or $0.71 per diluted share, compared to net income of $64.0 million, or $0.64 per diluted share for the same period in 2009.

 

Rollins’ balance sheet remains strong with total assets of $607.6 million and stockholders’ equity increasing to $286.4 million.

 

In the third quarter, the Company announced that it repurchased 372,499 shares of common stock at a weighted average price of $20.93 per share during the third quarter bringing the total number of shares repurchased year-to-date to 1,259,427 at a weighted average price of $20.92.  In total, 1,692,164 additional shares may be purchased under the share repurchase program.

 

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “This quarter reflects a record performance in revenue and profits.  Our revenue growth reflects contributions from all of our businesses.  As you would expect, we are pleased with the results from our operational initiatives and their impact on customer and employee retention, as well as the bottom line.”

 

Mr. Rollins concluded, “Our progress in the first nine months of this year has been solid and we are on target to meet our business objectives for the year.  Our focus is squarely on providing a good job for our employees, great service to our customers and solid earnings improvement for our shareholders.  We remain confident in our strategy and action plans, and are working hard to grow the business both organically and through strategic acquisitions.”

 



 

Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, HomeTeam Pest Defense, Western Pest Services, PCO Services, The Industrial Fumigant Company, Waltham Services, 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, Europe, 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.walthamservices.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 statements about the Company’s belief that the Company is on target to meet its business objectives for the year; the Company is focused on providing a good job for its employees, great service to its customers, and solid earnings improvement for its shareholders; the Company’s confidence in its strategy and action plans; and the Company’s work to grow its business both organically and through strategic acquisitions.  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 the Company’s business; the degree of success of the Company’s pest and termite process, 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; the Company’s ability to attract and retain skilled workers, and 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, 2009.

 


 


 

ROLLINS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At September 30, (unaudited)

 

2010

 

2009

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

20,250

 

$

26,221

 

Trade receivables, short-term

 

76,973

 

70,750

 

Accounts Receivable - Other

 

2,218

 

2,338

 

Materials and supplies

 

11,167

 

10,341

 

Deferred income taxes

 

27,092

 

17,628

 

Other current assets

 

13,161

 

14,143

 

Total Current Assets

 

150,861

 

141,421

 

 

 

 

 

 

 

Trade receivables, long-term

 

10,416

 

9,599

 

Equipment and property, net

 

70,782

 

77,223

 

Goodwill

 

200,639

 

189,355

 

Customer Contracts

 

119,896

 

120,510

 

Other Intangible Assets

 

25,636

 

22,742

 

Deferred income taxes

 

19,841

 

16,669

 

Other assets

 

9,554

 

8,008

 

Total Assets

 

$

607,625

 

$

585,527

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable

 

$

25,693

 

$

16,616

 

Accrued insurance

 

18,660

 

15,605

 

Accrued compensation and related liabilities

 

60,214

 

58,208

 

Unearned revenue

 

95,711

 

95,361

 

Line of Credit

 

24,000

 

45,000

 

Other current liabilities

 

31,378

 

29,873

 

Total Current Liabilities

 

255,656

 

260,663

 

 

 

 

 

 

 

Accrued insurance

 

25,566

 

27,687

 

Accrued pension

 

11,365

 

14,992

 

Long-term accrued liabilities

 

28,597

 

28,957

 

Total Liabilities

 

321,184

 

332,299

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock

 

98,107

 

99,040

 

Retained earnings and other equity

 

188,334

 

154,188

 

Total Stockholders’ Equity

 

286,441

 

253,228

 

Total Liabilities and Stockholders’ Equity

 

$

607,625

 

$

585,527

 

 



 

ROLLINS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

 

 

Third Quarter Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2010

 

2009

 

2010

 

2009

 

REVENUES

 

 

 

 

 

 

 

 

 

Customer services

 

$

305,118

 

$

286,852

 

$

856,962

 

$

814,391

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

 

Cost of services provided

 

156,064

 

147,436

 

435,467

 

414,440

 

Depreciation and amortization

 

9,076

 

9,321

 

27,043

 

28,124

 

Sales, general and administrative

 

98,909

 

93,233

 

280,782

 

267,027

 

Loss on sale of assets

 

 

30

 

5

 

7

 

Interest expense, net

 

100

 

159

 

265

 

846

 

 

 

264,149

 

250,179

 

743,562

 

710,444

 

INCOME BEFORE TAXES

 

40,969

 

36,673

 

113,400

 

103,947

 

PROVISION FOR INCOME TAXES

 

15,456

 

13,940

 

42,604

 

39,924

 

NET INCOME

 

$

25,513

 

$

22,733

 

$

70,796

 

$

64,023

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER SHARE - BASIC

 

$

0.26

 

$

0.23

 

$

0.72

 

$

0.64

 

NET INCOME PER SHARE - DILUTED

 

$

0.26

 

$

0.23

 

$

0.71

 

$

0.64

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

98,388

 

99,125

 

98,876

 

99,615

 

Weighted average shares outstanding - diluted

 

98,505

 

99,428

 

99,029

 

99,924

 

 


 


 

CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

Third Quarter results on:

 

Wednesday, October 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 877-941-7133 domestic;

480-629-9821 international

at least 5 minutes before start time.

 

REPLAY: available through November 4, 2010

Please dial 800-406-7325/303-590-3030, Passcode: 4372650

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