Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS FIRST QUARTER 2012

FINANCIAL RESULTS

 

ATLANTA, GEORGIA, April 25, 2012: 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, 2012.

 

The Company recorded first quarter revenues of $289.5 million, an increase of 6.6% over the prior year’s first quarter revenue of $271.6 million.  Net income increased 23.8% to $23.1 million or $0.16 per diluted share for the first quarter ended March 31, 2012, compared to $18.6 million or $0.13 per diluted share for the same period in 2011.

 

On January 24, 2012, Rollins increased its regular quarterly cash dividend to shareholders 14.3% to $0.08 per share.  The Company also repurchased 68,000 shares at a weighted average price of $19.58 per share during the first quarter.  In total, 1,011,964 additional shares may be purchased under the share repurchase program.

 

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “Our successful marketing and sales programs, along with a nice assist from the unseasonably warm winter, made significant contributions to our record first quarter results.  We are especially proud that our team took full advantage of this situation.  We are certainly pleased with our revenue and profit increases, and are enthusiastic about the opportunities that we have before us.  Rollins will continue to focus on the strengths of our leading pest control brands, and our 2012 plans directed to grow our business, improve earnings and generate a strong cash flow.”

 

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, Mexico, 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 enthusiasm about its opportunities, plans to continue to focus on the strengths of its leading pest control brands, and plans to grow its business, improve earnings and generate a strong cash flow.  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, 2011.

 


 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At March 31, (unaudited)

 

2012

 

2011

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

59,684

 

$

23,340

 

Trade Accounts Receivables Short Term, Net

 

63,790

 

59,174

 

Financed Receivables, Net

 

11,386

 

10,350

 

Materials and supplies

 

10,874

 

12,680

 

Deferred income taxes

 

29,718

 

27,178

 

Other current assets

 

15,123

 

14,522

 

Total Current Assets

 

190,575

 

147,244

 

Equipment and property, net

 

77,146

 

73,444

 

Goodwill

 

211,237

 

212,130

 

Customer Contracts and Other Intangible assets

 

139,580

 

146,742

 

Deferred income taxes

 

21,775

 

14,336

 

Financed receivables, long-term

 

11,441

 

9,786

 

Other assets

 

11,052

 

10,523

 

Total Assets

 

$

662,806

 

$

614,205

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable

 

$

19,214

 

$

23,283

 

Accrued insurance

 

20,430

 

19,918

 

Accrued compensation and related liabilities

 

52,592

 

51,697

 

Unearned revenue

 

92,778

 

92,193

 

Line of Credit

 

—

 

25,000

 

Other current liabilities

 

43,569

 

29,825

 

Total Current Liabilities

 

228,583

 

241,916

 

Accrued insurance

 

30,203

 

25,969

 

Accrued pension

 

29,850

 

8,390

 

Long-term accrued liabilities

 

37,915

 

36,710

 

Total Liabilities

 

326,551

 

312,985

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock

 

146,803

 

147,428

 

Retained earnings and other equity

 

189,452

 

153,792

 

Total Stockholders’ Equity

 

336,255

 

301,220

 

Total Liabilities and Stockholders’ Equity

 

$

662,806

 

$

614,205

 

 


 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

 

 

First Quarter Ended

 

 

 

March 31,

 

 

 

2012

 

2011

 

REVENUES

 

 

 

 

 

Customer services

 

$

289,465

 

$

271,643

 

COSTS AND EXPENSES

 

 

 

 

 

Cost of services provided

 

148,082

 

140,898

 

Depreciation and amortization

 

9,767

 

9,200

 

Sales, general and administrative

 

94,824

 

91,498

 

Interest Expense

 

51

 

192

 

 

 

252,724

 

241,788

 

INCOME BEFORE TAXES

 

36,741

 

29,855

 

PROVISION FOR INCOME TAXES

 

13,661

 

11,215

 

NET INCOME

 

$

23,080

 

$

18,640

 

 

 

 

 

 

 

NET INCOME PER SHARE - BASIC

 

$

0.16

 

$

0.13

 

NET INCOME PER SHARE - DILUTED

 

$

0.16

 

$

0.13

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

146,697

 

147,473

 

Weighted average shares outstanding - diluted

 

146,714

 

147,570

 

 


 

(( CONFERENCE CALL ANNOUNCEMENT ((

 

Rollins, Inc.

(NYSE: ROL)

 

Management will hold a conference call to discuss

First Quarter 2012 results on:

 

Wednesday, April 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 866-225-8754 domestic;

480-629-9818 international
at least 5 minutes before start time.

 

REPLAY: available through May 2, 2012

Please dial 800-406-7325/303-590-3030, Passcode: 4531560

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