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 year’s 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 Company’s 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 Company’s belief that the continued development and deployment of the Company’s key programs should enable the Company to maintain its momentum; and the Company’s 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 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 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