Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS FIRST QUARTER 2011

FINANCIAL RESULTS

 

ATLANTA, GEORGIA, April 27, 2011: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its first quarter ended March 31, 2011.

 

The Company recorded first quarter revenues of $271.6 million, an increase of 7.4% over the prior year’s first quarter revenue of $253.0 million.  Net income increased 6.0% to $18.6 million or $0.13 per diluted share for the first quarter ended March 31, 2011, compared to $17.6 million or $0.12 per diluted share for the same period in 2010.

 

On January 25, 2011, Rollins increased its regular quarterly cash dividend to shareholders 16.7 percent to $0.07 per share.  The Company also repurchased 256,284 shares at a weighted average price of $18.90 per share during the first quarter.  In total, 2,281,962 additional shares may be purchased under the share repurchase program.

 

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “We are pleased to report our strongest increase in revenue for a first quarter in more than five years, we are understandably pleased with our solid start of 2011.”

 

Mr. Rollins concluded, “Our opportunities for this year are exciting and we believe that each of our businesses is well positioned to contribute. We remain committed to growing our revenue, improving earnings, generating strong cash flows and maintaining a strong balance sheet. We are clearly focused on achieving our goals.”

 

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, Crane Pest Control, and TruTech, 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, 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, www.trutechinc.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’s opportunities in 2011 are exciting; that each of the Company’s businesses is well positioned to contribute; and that the Company remains committed to growing its revenue, improving earnings, generating solid cash flow and maintaining a strong balance sheet.  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, 2010.

 


 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At March 31, (unaudited)

 

2011

 

2010

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

23,340

 

$

14,149

 

Trade receivables, short-term

 

69,524

 

62,937

 

Materials and supplies

 

12,680

 

10,957

 

Deferred income taxes

 

27,178

 

25,760

 

Other current assets

 

14,522

 

11,842

 

Total Current Assets

 

147,244

 

125,645

 

Equipment and property, net

 

73,444

 

72,203

 

Goodwill

 

212,130

 

189,925

 

Customer Contracts and Other Intangible assets

 

146,742

 

141,705

 

Deferred income taxes

 

14,336

 

17,644

 

Trade receivables, long-term

 

9,786

 

9,021

 

Other assets

 

10,523

 

9,190

 

Total Assets

 

$

614,205

 

$

565,333

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable

 

$

23,081

 

$

20,671

 

Accrued insurance

 

19,918

 

16,754

 

Accrued compensation and related liabilities

 

51,697

 

47,865

 

Unearned revenue

 

92,193

 

89,604

 

Line of Credit

 

25,000

 

15,000

 

Other current liabilities

 

30,027

 

34,969

 

Total Current Liabilities

 

241,916

 

224,863

 

Accrued insurance

 

25,969

 

26,054

 

Accrued pension

 

8,390

 

14,731

 

Long-term accrued liabilities

 

36,710

 

28,022

 

Total Liabilities

 

312,985

 

293,670

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock

 

147,428

 

149,004

 

Retained earnings and other equity

 

153,792

 

122,659

 

Total Stockholders’ Equity

 

301,220

 

271,663

 

Total Liabilities and Stockholders’ Equity

 

$

614,205

 

$

565,333

 

 


 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

 

 

First Quarter Ended

 

 

 

March 31,

 

 

 

2011

 

2010

 

REVENUES

 

 

 

 

 

Customer services

 

$

271,643

 

$

253,041

 

COSTS AND EXPENSES

 

 

 

 

 

Cost of services provided

 

140,898

 

130,975

 

Depreciation and amortization

 

9,200

 

9,000

 

Sales, general and administrative

 

91,498

 

84,915

 

Interest Expense

 

192

 

99

 

 

 

241,788

 

224,989

 

INCOME BEFORE TAXES

 

29,855

 

28,052

 

PROVISION FOR INCOME TAXES

 

11,215

 

10,469

 

NET INCOME

 

$

18,640

 

$

17,583

 

 

 

 

 

 

 

NET INCOME PER SHARE - BASIC

 

$

0.13

 

$

0.12

 

NET INCOME PER SHARE - DILUTED

 

$

0.13

 

$

0.12

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

147,473

 

148,810

 

Weighted average shares outstanding - diluted

 

147,570

 

149,089

 

 


 

CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

First Quarter results on:

 

Wednesday, April 27, 2011 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 877-941-8631domestic;

480-629-9818 international

at least 5 minutes before start time.

 

REPLAY: available through May 4, 2011

Please dial 800-406-7325/303-590-3000, Passcode: 4432545

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