Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS THIRD QUARTER AND NINE MONTHS 2012

FINANCIAL RESULTS

 

ATLANTA, GEORGIA, October 24, 2012: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its third quarter ended September 30, 2012.

 

The Company recorded third quarter revenues of $340.2 million, an increase of 5.0% over the prior year’s third quarter revenue of $323.9 million.  Net income increased 9.5% to $32.2 million or $0.22 per diluted share for the third quarter ended September 30, 2012, compared to $29.4 million or $0.20 per diluted share for the same period in 2011.

 

Rollins’ revenues rose 5.3% for the first nine months of 2012 to $964.5 million compared to $916.0 million for the prior year.  Net income for the first nine months of 2012 was $88.4 million, or $0.60 per diluted share, compared to net income of $79.1 million, or $0.54 per diluted share for the same period last year.

 

At yesterday’s Board of Directors meeting, the Board of Directors declared a regular quarterly cash dividend on its common stock of $0.08 per share plus a special year-end dividend of $0.12 per share both payable December 10, 2012 to stockholders of record at the close of business November 09, 2012.

 

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “We are very pleased with our financial results for the third quarter and first nine months of fiscal 2012.  Our revenue growth was strong across the Company, which reflects the positive results we are receiving from the investments we have made.  We again improved our profit margins with favorable revenue to profit conversion.”

 

Mr. Rollins, concluded, “We are optimistic about concluding another successful year while gaining market share and delivering value to our customers and shareholders.”

 

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, South America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe, Africa and Mexico 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 optimism about having another successful year while still gaining market share and delivering value to our customers and shareholders.  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 September 30, (unaudited)		2012			2011
ASSETS
Cash and cash equivalents		$	93,713		$	30,219
Trade accounts receivables, net		78,748			71,715
Financed receivables, net		12,396			11,668
Materials and supplies		10,919			10,607
Deferred income taxes, net		30,118			30,575
Other current assets		15,784			17,096
Total Current Assets		241,678			171,880
Equipment and property, net		77,521			76,046
Goodwill		211,373			210,898
Customer contracts and other intangible assets, net		132,850			140,598
Deferred income taxes		18,809			12,223
Financed receivables, long-term, net		12,491			11,108
Other assets		11,307			9,670
Total Assets		$	706,029		$	632,423
LIABILITIES
Accounts payable		$	24,679		$	23,951
Accrued insurance, current		22,503			20,801
Accrued compensation and related liabilities		62,827			60,365
Unearned revenue		95,727			95,022
Other current liabilities		34,865			35,774
Total Current Liabilities		240,601			235,913
Accrued insurance, less current portion		29,145			27,462
Accrued pension		29,766			7,573
Long-term accrued liabilities		37,857			34,977
Total Liabilities		337,369			305,925
STOCKHOLDERS’ EQUITY
Common stock		146,038			146,292
Retained earnings and other equity		222,622			180,206
Total stockholders’ equity		368,660			326,498
Total Liabilities and Stockholders’ Equity		$	706,029		$	632,423

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

		Third Quarter Ended						Nine Months Ended
		September 30,						September 30,
		2012			2011			2012			2011
REVENUES
Customer services		$	340,179		$	323,929		$	964,516		$	916,008
COSTS AND EXPENSES
Cost of services provided		170,478			165,097			484,553			465,640
Depreciation and amortization		9,465			9,337			28,845			27,825
Sales, general and administrative		108,520			102,396			309,412			295,651
Interest Expense		19			79			90			449
		288,482			276,909			822,900			789,565
INCOME BEFORE INCOME TAXES		51,697			47,020			141,616			126,443
PROVISION FOR INCOME TAXES		19,486			17,605			53,198			47,327
NET INCOME		$	32,211		$	29,415		$	88,418		$	79,116
NET INCOME PER SHARE - BASIC		$	0.22		$	0.20		$	0.60		$	0.54
NET INCOME PER SHARE - DILUTED		$	0.22		$	0.20		$	0.60		$	0.54
Weighted average shares outstanding - basic		146,059			146,549			146,390			147,086
Weighted average shares outstanding - diluted		146,061			146,609			146,400			147,161

 

 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

Third Quarter 2012 results on:

 

Wednesday, October 24, 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;

480-629-9692 international
at least 5 minutes before start time.

 

REPLAY: available through October 31, 2012

Please dial 800-406-7325/303-590-3030, Passcode: 4568454

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