Exhibit 99.1
For Further Information Contact
Harry J. Cynkus (404) 888-2922
FOR IMMEDIATE RELEASE
ROLLINS, INC. REPORTS FOURTH QUARTER AND FULL-YEAR 2011 FINANCIAL RESULTS
Company Posts 23rd Consecutive Quarter of Improved Earnings Results
ATLANTA, GEORGIA, January 25, 2012: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its fourth quarter and year ended December 31, 2011.
The Company recorded fourth quarter revenues of $289.1 million, an increase of 3.3% over the prior years fourth quarter revenue of $279.9 million. Net income increased 12.4% to $21.6 million or $0.15 per diluted share for the fourth quarter ended December 31, 2011, compared to $19.2 million or $0.13 per diluted share for the same period in 2010.
Rollins revenues for the full year rose 6.0% to $1.205 billion compared to $1.137 billion for the prior year. Rollins net income for the full year rose 11.9% to $100.7 million, or $0.69 per diluted share, compared to net income of $90.0 million, or $0.61 per diluted share for the prior year.
In the fourth quarter, the Company repurchased 70,000 shares at a weighted average price of $19.72 per share bringing the total number of shares repurchased for the full year to 1,458,282 at a weighted average price of $18.68. In total, 1,079,964 additional shares may be purchased under the share repurchase program.
Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, The positive performance we achieved in our fourth quarter and full year reflects the success of our 2011 initiatives. We were especially pleased that this year we exceeded our revenue and profit plans, and we surpassed the $100 million dollar net income milestone.
Mr. Rollins concluded, We are excited about our Companys opportunities for 2012. Our culture of continuous improvement generated aggressive plans and new programs that should provide another successful year. We are very proud of our people who made 2011 possible and who will likewise be working diligently to achieve our 2012 objectives.
Rollins Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin LLC., HomeTeam Pest Defense, Western Pest Services, Orkin Canada, The Industrial Fumigant Company, Waltham Services LLC., Crane Pest Control and Trutech LLC., the
Company provides essential pest control services and protection against termite damage, rodents and insects to more than 2 million customers in the United States, Canada, Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe and Africa from more than 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 Companys belief that the continued development and deployment of the Companys key programs should enable the Company to maintain its momentum; and the Companys belief that its people are a key factor in 2012 in its plans of business growth and operational improvement for 2012. 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 Companys business; the degree of success of the Companys pest and termite process, 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; the Companys 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 Companys 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 December 31, (unaudited) |
|
2011 |
|
2010 |
| ||
ASSETS |
|
|
|
|
| ||
Cash and cash equivalents |
|
$ |
46,275 |
|
$ |
20,913 |
|
Trade Accounts Receivables Short Term, Net |
|
58,279 |
|
56,141 |
| ||
Financed Receivables, Net |
|
11,659 |
|
11,044 |
| ||
Accounts Receivable - Other, Net |
|
3,408 |
|
3,248 |
| ||
Materials and supplies |
|
11,125 |
|
11,899 |
| ||
Deferred income taxes |
|
31,272 |
|
27,396 |
| ||
Other current assets |
|
13,804 |
|
20,380 |
| ||
Total Current Assets |
|
175,822 |
|
151,021 |
| ||
Equipment and property, net |
|
76,858 |
|
74,013 |
| ||
Goodwill |
|
211,019 |
|
210,779 |
| ||
Customer Contracts and Other Intangible assets |
|
137,526 |
|
147,556 |
| ||
Deferred income taxes |
|
22,604 |
|
15,106 |
| ||
Financed receivables, long-term |
|
11,298 |
|
10,193 |
| ||
Other assets |
|
10,523 |
|
10,346 |
| ||
Total Assets |
|
$ |
645,650 |
|
$ |
619,014 |
|
|
|
|
|
|
| ||
LIABILITIES |
|
|
|
|
| ||
Accounts payable |
|
$ |
22,584 |
|
$ |
25,940 |
|
Accrued insurance |
|
21,844 |
|
18,652 |
| ||
Accrued compensation and related liabilities |
|
61,137 |
|
61,817 |
| ||
Unearned revenue |
|
85,636 |
|
85,489 |
| ||
Line of Credit |
|
|
|
26,000 |
| ||
Other current liabilities |
|
34,650 |
|
28,543 |
| ||
Total Current Liabilities |
|
225,851 |
|
246,441 |
| ||
Accrued insurance |
|
27,516 |
|
27,221 |
| ||
Accrued pension |
|
31,867 |
|
12,515 |
| ||
Long-term accrued liabilities |
|
36,419 |
|
34,867 |
| ||
Total Liabilities |
|
321,653 |
|
321,044 |
| ||
|
|
|
|
|
| ||
STOCKHOLDERS EQUITY |
|
|
|
|
| ||
Common stock |
|
146,251 |
|
147,181 |
| ||
Retained earnings and other equity |
|
177,746 |
|
150,789 |
| ||
Total Stockholders Equity |
|
323,997 |
|
297,970 |
| ||
Total Liabilities and Stockholders Equity |
|
$ |
645,650 |
|
$ |
619,014 |
|
ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
|
|
Fourth Quarter Ended |
|
Twelve Months Ended |
| ||||||||
|
|
December 31, |
|
December 31, |
| ||||||||
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| ||||
REVENUES |
|
|
|
|
|
|
|
|
| ||||
Customer services |
|
$ |
289,056 |
|
$ |
279,928 |
|
$ |
1,205,064 |
|
$ |
1,136,890 |
|
COSTS AND EXPENSES |
|
|
|
|
|
|
|
|
| ||||
Cost of services provided |
|
151,202 |
|
147,622 |
|
616,842 |
|
583,089 |
| ||||
Depreciation and amortization |
|
9,678 |
|
9,365 |
|
37,503 |
|
36,408 |
| ||||
Sales, general and administrative |
|
92,923 |
|
92,506 |
|
388,710 |
|
373,288 |
| ||||
Loss on impairment/sale of assets |
|
541 |
|
118 |
|
405 |
|
123 |
| ||||
Interest Expense |
|
59 |
|
172 |
|
508 |
|
437 |
| ||||
|
|
254,403 |
|
249,783 |
|
1,043,968 |
|
993,345 |
| ||||
INCOME BEFORE TAXES |
|
34,653 |
|
30,145 |
|
161,096 |
|
143,545 |
| ||||
PROVISION FOR INCOME TAXES |
|
13,058 |
|
10,939 |
|
60,385 |
|
53,543 |
| ||||
NET INCOME |
|
$ |
21,595 |
|
$ |
19,206 |
|
$ |
100,711 |
|
$ |
90,002 |
|
|
|
|
|
|
|
|
|
|
| ||||
NET INCOME PER SHARE - BASIC |
|
$ |
0.15 |
|
$ |
0.13 |
|
$ |
0.69 |
|
$ |
0.61 |
|
NET INCOME PER SHARE - DILUTED |
|
$ |
0.15 |
|
$ |
0.13 |
|
$ |
0.69 |
|
$ |
0.61 |
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted average shares outstanding - basic |
|
146,277 |
|
147,184 |
|
146,882 |
|
148,030 |
| ||||
Weighted average shares outstanding - diluted |
|
146,309 |
|
147,306 |
|
146,946 |
|
148,231 |
|
(( CONFERENCE CALL ANNOUNCEMENT ((
Rollins, Inc.
(NYSE: ROL)
Management will hold a conference call to discuss
Fourth Quarter and Full-Year 2011 results on:
Wednesday, January 25, 2012 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 877-941-8609 domestic;
480-629-9818 international
at least 5 minutes before start time.
REPLAY: available through February 1, 2012
Please dial 800-406-7325/303-590-3030, Passcode: 4502890
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