Exhibit 99.1 For Further Information Contact
Harry J. Cynkus
(404) 888-2922
FOR IMMEDIATE RELEASE
ROLLINS, INC. REPORTS FOURTH QUARTER AND
FULL-YEAR FINANCIAL RESULTS
o 20th consecutive quarter of improved earnings results
o Net income up 187.4% to $13.9 million for the fourth quarter
o Revenues rose 16.0% for the quarter
o Earnings per share before the cumulative effect of a change in accounting
principle increased $0.48 to $1.25 for the year, a 62.3% increase
Atlanta, GA, February 16, 2005 - Rollins, Inc. (NYSE:ROL) a premier North
American consumer services company, today reported its unaudited financial
results for its fourth quarter and year ended December 31, 2004.
The Company reported an increase in net income of 187.4% to $13.9 million,
or $0.30 per diluted share for the fourth quarter, compared to $4.8 million, or
$0.10 per diluted share for the same period in 2003, as previously reported. Net
income for the quarter included gains from the sale of assets, net of tax, of
$6.3 million or $0.13 per share, in 2004 and $1.0 million net of tax, or $.02
per share, in 2003, as previously reported. Revenue for the fourth quarter rose
16.0% to $183.8 million, (14.1% and $180.8 million, before the accounting
change), compared to revenue of $158.5 million for the comparable quarter in
2003. Excluding operations of Western Pest Services, which was acquired on April
30, 2004, and the accounting change, revenues for the quarter increased 2.9%.
Net income for full year 2004 climbed 45.6% to $52.1 million, or $1.11 per
diluted share, ($58.3 million or $1.25 per diluted share before the accounting
change) compared to net income of $35.8 million, or $0.77 per diluted share for
full year 2003. Revenues increased to $750.9 million for the year, ($749.4
before the change in accounting), compared to $677.0 million for the prior year.
In past years, traditional termite treatments were recognized as revenue at
the renewal date and an accrual was established for estimated costs of
reapplications and repairs remaining to be incurred. In 2004, the Company
reassessed its accounting for traditional termite contract renewals, due to
differences in business practices between Orkin and Western Pest Services, a
2004 acquisition. Under the newly adopted accounting method, which the Company
believes is preferable and more closely conforms to the guidance provided in
applicable accounting literature, the revenue received is deferred and
recognized on a straight-line basis over the remaining contract term. In
addition, the future cost of reinspections, reapplications and repairs and
associated labor and chemicals are expensed as incurred. The cumulative effect
of the change in accounting principle, which had no impact on the Company's cash
flows in 2004, was recorded as of January 1, 2004. Due to this change, the
Company
recorded a cumulative adjustment of $6.2 million (net of income taxes). The
accounting change had the effect of increasing revenue recognized in 2004 by
$1.5 million but did not impact income before cumulative effect of change in
accounting principle for the year. As this change does impact the timing of the
revenue recognition in each quarter, attached are results of operations for the
previously reported quarters of 2004, giving effect to the accounting change as
of January 1, 2004, reconciled to the quarterly results for 2004 prior to the
accounting change.
Rollins' balance sheet remains strong with total assets increasing to
$419.8 million and stockholders equity increasing to $168.6 million. The Company
ended the year with total cash and cash equivalents of $56.7 million.
Gary Rollins, President and Chief Executive Officer of Rollins, Inc.
stated, "We are pleased with the results we achieved for both our fourth quarter
and full year. During the year we grew both the residential and commercial
service lines of our business, experiencing increased customer and employee
retention and the gain of new customers. Sales and service initiatives continue
to play a positive role in this growth."
Mr. Rollins continued, "Lead generation and service improvements are
driving residential business growth. We began the re-engineering of our
commercial business segment in the fourth quarter and would expect this project
to start making a positive contribution in fiscal 2005."
"Western is proving to be a successful acquisition for us. We continue to
be impressed by the Western leadership and team. They contributed to our revenue
growth, particularly in the last half of the year, and we expect them to play a
significant role in our growth strategy going forward."
Mr. Rollins concluded, "We are most excited about our Company's
opportunities in 2005 and beyond. We are dedicated to further improving our
retention, revenue growth, employees' productivity, and profitability. We have a
number of programs underway that will help us to achieve these goals and we
continue to explore additional opportunities to accelerate our performance. At
the same time, we are committed to providing our customers in all areas of our
business with the very best pest and termite control service to meet their ever
changing needs."
Rollins, Inc. is one of the nation's largest consumer services companies.
Through its wholly owned subsidiaries, Orkin, Inc. and Western Pest Services,
the Company provides essential pest control services and protection against
termite damage, rodents and insects to approximately 1.7 million customers in
the United States, Canada and Mexico from over 400 locations. You can learn more
about Orkin by visiting our Web sites at www.orkin.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
The above release contains statements that constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995, including without limitation, statements regarding opportunities and
expected improvements in 2005, the future contributions of Western, and expected
contributions of the commercial business segment. 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, general economic conditions; market risk; changes in industry
practices or technologies; the degree of success of the Company's pest and
termite process reforms and pest control selling and treatment methods; the
Company's ability to identify potential acquisitions; integrate acquired
companies; climate and weather trends;
competitive factors and pricing practices; 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.
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In thousands)
2004 2003
At December 31 (Unaudited) (Audited)
- --------------------------------------------------------------------------------
ASSETS
Cash and Cash Equivalents $ 56,737 $ 59,540
Marketable Securities --- 21,866
Trade Receivables Short-Term, Net 45,469 39,380
Materials and Supplies 8,876 9,837
Deferred Income Taxes 29,381 23,243
Other Current Assets 7,368 7,414
--------------- ---------------
Current Assets 147,831 161,280
Equipment and Property, Net 49,163 35,836
Goodwill and Other Intangible Assets 195,470 102,831
Trade Receivables Long-Term, Net 9,755 9,091
Deferred Income Taxes 13,328 15,902
Other Assets 4,259 24,964
--------------- ---------------
Total Assets $ 419,806 $ 349,904
=============== ===============
- --------------------------------------------------------------------------------
LIABILITIES
Accounts Payable $ 15,438 $ 12,290
Accrued Insurance 14,963 13,050
Accrued Payroll 38,453 31,019
Unearned Revenue 81,195 46,007
Other Current Liabilities 37,931 42,656
--------------- ---------------
Current Liabilities 187,980 145,022
Long-Term Accrued Liabilities 63,251 66,108
--------------- ---------------
Total Liabilities 251,231 211,130
--------------- ---------------
- --------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY
Common Stock 45,670 45,157
Retained Earnings and Other Equity 122,905 93,617
--------------- ---------------
Total Stockholders' Equity 168,575 138,774
--------------- ---------------
Total Liabilities and
Stockholders' Equity $ 419,806 $ 349,904
=============== ===============
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED DECEMBER 31
(In thousands except per share data)
Fourth Quarter Twelve Months
--------------------------- ---------------------------
2004 2003 2004 2003
(Unaudited) (Audited) (Unaudited) (Audited)
------------ ------------- ------------ -------------
REVENUES $ 183,818 $ 158,524 $ 750,884 $ 677,013
------------ ------------- ------------ -------------
COSTS AND EXPENSES
Cost of Services Provided 99,748 86,687 395,334 362,422
Depreciation and Amortization 6,364 4,921 23,034 20,179
Sales, General and Administrative 65,483 58,599 258,893 236,514
(Gain)/Loss on Sales of Assets (10,259) (1,664) (24,716) (1,700)
Interest Income (108) (152) (373) (432)
------------ ------------- ------------ -------------
TOTAL COSTS AND EXPENSES 161,228 148,391 652,172 616,983
------------ ------------- ------------ -------------
INCOME BEFORE INCOME TAXES 22,590 10,133 98,712 60,030
PROVISION FOR INCOME TAXES 8,721 5,308 40,453 24,269
------------ ------------- ------------ -------------
INCOME BEFORE CUMULATIVE EFFECT CHANGE IN
ACCOUNTING PRINCIPLE 13,869 4,825 58,259 35,761
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET - - (6,204) -
------------ ------------- ------------ -------------
NET INCOME $ 13,869 $ 4,825 $ 52,055 $ 35,761
============ ============= ============ =============
NET INCOME PER COMMON SHARE-BASIC:
INCOME BEFORE CUMULATIVE EFFECT CHANGE
IN ACCOUNTING PRINCIPLE $ 0.30 $ 0.11 $ 1.28 $ 0.79
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET - - (0.14) -
------------ ------------- ------------ -------------
NET INCOME PER COMMON SHARE-BASIC $ 0.30 $ 0.11 $ 1.14 $ 0.79
============ ============= ============ =============
NET INCOME PER COMMON SHARE-DILUTED:
INCOME BEFORE CUMULATIVE EFFECT CHANGE
IN ACCOUNTING PRINCIPLE $ 0.30 $ 0.10 $ 1.25 $ 0.77
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET - - (0.14) -
------------ ------------- ------------ -------------
NET INCOME PER COMMON SHARE-DILUTED $ 0.30 $ 0.10 $ 1.11 $ 0.77
============ ============= ============ =============
AVERAGE SHARES OUTSTANDING - BASIC 45,677 45,130 45,547 45,069
AVERAGE SHARES OUTSTANDING - DILUTED 46,928 46,313 46,778 46,206
ADJUSTED FOR THREE FOR TWO STOCK EFFECTIVE MARCH 10, 2005
AVERAGE SHARES OUTSTANDING - DILUTED 70,392 69,469 70,167 69,309
NET INCOME PER COMMON SHARE-DILUTED:
INCOME BEFORE CUMULATIVE EFFECT CHANGE
IN ACCOUNTING PRINCIPLE $ 0.20 $ 0.07 $ 0.83 $ 0.52
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET - - (0.09) -
------------ ------------- ------------ -------------
NET INCOME PER COMMON SHARE-DILUTED $ 0.20 $ 0.07 $ 0.74 $ 0.52
============ ============= ============ =============
ROLLINS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED DECEMBER 31
(In thousands)
2004 2003
Unaudited Audited
--------------- --------------
Operating Activities
Net Income $ 52,055 $ 35,761
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Change in Accounting Policy, Net 6,204 -
Depreciation and Amortization 23,034 20,179
Provision for Deferred Income Taxes 13,617 10,405
Other, Net 1,399 654
Gain on Sale of Assets (24,716) (1,700)
(Increase) Decrease in Assets:
Trade Receivables (6,088) 339
Materials and Supplies 2,645 878
Other Current Assets 482 2,056
Other Non-Current Assets (304) (199)
Increase (Decrease) in Liabilities:
Accounts Payable and Accrued Expenses 14,959 9,776
Unearned Revenue 5,582 2,959
Accrued Insurance (3,703) (2,889)
Accrual for Termite Contracts (5,046) (2,573)
Long-Term Accrued Liabilities (8,193) (15,327)
--------------- --------------
Net Cash Provided by Operating Activities 71,927 60,319
--------------- --------------
Investing Activities
Purchases of Equipment and Property (14,204) (10,597)
Net Cash Used for Acquisition of Companies (98,090) (1,543)
Sales/(Purchases) of Marketable Securities, Net 21,866 (21,866)
Proceeds From Sale of Assets, Net of Deferred Gain of $841 25,726 1,700
--------------- --------------
Net Cash Provided by (Used In) Investing Activities (64,702) (32,306)
--------------- --------------
Financing Activities
Dividends Paid (10,924) (9,010)
Common Stock Purchased (937) -
Other 1,833 2,222
--------------- --------------
Net Cash Used in Financing Activities (10,028) (6,788)
--------------- --------------
Net Increase/(Decrease) in Cash and Cash Equivalents (2,803) 21,225
Cash and Cash Equivalents at Beginning of Year 59,540 38,315
--------------- --------------
Cash and Cash Equivalents at End of Period $ 56,737 $ 59,540
=============== ==============
CONFERENCE CALL
Rollins, Inc.
(NYSE: ROL)
Management will hold a conference call to discuss fourth quarter results on:
Wednesday, February 16, 2005 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 800-218-0204 domestic;
303-262-2130 international
at least 5 minutes before start time.
REPLAY: through February 23, 2005 at 11:00 p.m.
Please dial 800-405-2236/303-590-3000, Passcode: 11020461
THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT
www.viavid.net
Questions?:
Janet Cruz at FRB/Weber Shandwick at 212-445-8453 or
email to jcruz@webershandwick.com
Reconciliation
Revenue Excluding Change in Accounting Principle and Western Pest Services
Fourth Quarter
------------------------------
2004 2003 $B/(W) %B/(W)
---- ---- ------ ------
Total Net Revenues $ 183,818 $ 158,524 $ 25,294 16.0 %
Less:
Change in Accounting Principle 3,020 - 3,020
---------------------------------------------------------------
Revenue Excluding Change in
Accounting Principle $ 180,798 $ 158,524 $ 22,274 14.1 %
Less:
Western Acquisition 17,689 - 17,689
---------------------------------------------------------------
Revenue Excluding Change in
Accounting Principle and Western Pest Services $ 163,109 $ 158,524 $ 4,585 2.9 %
===============================================================
Reconciliation
Revenue Excluding Change in Accounting Principle and Western Pest Services
Twelve Months
------------------------------
2004 2003 $B/(W) %B/(W)
---- ---- ------ ------
Total Net Revenues $ 750,884 $ 677,013 $ 73,871 10.9 %
Less:
Change in Accounting Principle 1,439 - 1,439
--------------------------------------------------------------
Revenue Excluding Change in
Accounting Principle $ 749,445 $ 677,013 $ 72,432 10.7 %
Less:
Western Acquisition 49,037 - 49,037
--------------------------------------------------------------
Revenue Excluding Change in
Accounting Principle and Western Pest Services $ 700,408 $ 677,013 $ 23,395 3.5 %
==============================================================
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In thousands except share and per share data)
(Unaudited)
Previously Effect of As Restated
Reported Accounting
as of March 31, Change as of March 31,
2004 2004
--------------------- ------------------ -------------------
Assets
Cash and Short-Term Investments $ 97,888 $ - $ 97,888
Marketable Securities - - -
Trade Receivables Short Term, Net 36,349 - 36,349
Materials and Supplies 10,147 - 10,147
Deferred Income Taxes 20,580 6,752 27,332
Other Current Assets 10,092 - 10,092
--------------------- ------------------ -------------------
Current Assets 175,056 6,752 181,808
Equipment and Property, Net 34,618 - 34,618
Goodwill 72,521 - 72,521
Customer Contracts 28,924 - 28,924
Trade Receivables Long Term, Net 9,200 - 9,200
Deferred Income Taxes 17,287 (3,533) 13,754
Other Assets 25,350 - 25,350
--------------------- ------------------ -------------------
Total Assets $ 362,956 $ 3,219 $ 366,175
===================== ================== ===================
Liabilities
Accounts Payable $ 15,325 $ (50) $ 15,275
Accrued Insurance 13,050 - 13,050
Accrued Payroll 26,913 50 26,963
Unearned Revenue 50,702 22,435 73,137
Accrual For Termite Contracts 21,500 (7,317) 14,183
Other Current Liabilities 23,983 - 23,983
--------------------- ------------------ -------------------
Current Liabilities 151,473 15,118 166,591
Accrued Insurance 24,764 - 24,764
Accrual For Termite Contracts 22,135 (8,214) 13,921
Accrued Pension - - -
Long-Term Accrued Liabilities 16,741 1,371 18,112
--------------------- ------------------ -------------------
Total Liabilities 215,113 8,275 223,388
Stockholder's Equity
Common Stock 45,399 - 45,399
Retained Earnings and Other Equity 102,444 (5,056) 97,388
--------------------- ------------------ -------------------
Total Stockholders' Equity 147,843 (5,056) 142,787
--------------------- ------------------ -------------------
Total Liabilities and Stockholders' Equity $ 362,956 $ 3,219 $ 366,175
===================== =================== ===================
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data)
(Unaudited)
Three Months Ended
Previously Effect of As Restated
Reported Accounting
March 31, Change March 31,
2004 2004
-------------------- ------------------ --------------------
Revenues $ 158,692 $ 1,724 $ 160,416
-------------------- ------------------ --------------------
Costs & Expenses
Cost of Services Provided 85,357 (222) 85,135
Depreciation & Amortization 4,657 - 4,657
Sales General & Administrative 54,175 - 54,175
(Gain)/Loss on Sales of Assets 1 - 1
Interest (Income)/Expense (150) - (150)
-------------------- ------------------ --------------------
Total Cost & Expenses $ 144,040 $ (222) $ 143,818
-------------------- ------------------ --------------------
Income Before Taxes 14,652 1,946 16,598
Provision for Income Taxes 5,934 798 6,732
Cumulative effect of change in accounting principle, net - (6,204) (6,204)
-------------------- ------------------ --------------------
Net Income $ 8,718 $ (5,056) $ 3,662
===================== =================== ====================
Net income (loss) per common share-basic:
Income (loss) before cumulative effect
change in accountng principle $ 0.20 $ (0.11) $ 0.09
Net income (loss) per common share-diluted
Income (loss) before cumulative effect
change in accountng principle $ 0.19 $ (0.11) $ 0.08
AVERAGE SHARES OUTSTANDING - BASIC 45,298 45,298 45,298
AVERAGE SHARES OUTSTANDING - DILUTED 46,643 46,643 46,643
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In thousands except share and per share data)
(Unaudited)
Previously Effect of As Restated
Reported Accounting
as of June 30, Change as of June 30,
2004 2004
--------------------- ----------------- -------------------
Assets
Cash and Short-Term Investments $ 21,865 $ - $ 21,865
Marketable Securities - - -
Trade Receivables Short Term, Net 51,941 (3,368) 48,573
Materials and Supplies 12,157 - 12,157
Deferred Income Taxes 21,633 8,490 30,123
Other Current Assets 10,441 - 10,441
--------------------- ----------------- -------------------
Current Assets 118,037 5,122 123,159
Equipment and Property, Net 45,313 - 45,313
Goodwill 113,853 - 113,853
Customer Contracts 82,166 - 82,166
Trade Receivables Long Term, Net 10,824 - 10,824
Deferred Income Taxes 8,860 (3,243) 5,617
Other Assets 30,908 - 30,908
--------------------- ----------------- -------------------
Total Assets $ 409,961 $ 1,879 $ 411,840
===================== ================= ===================
Liabilities
Accounts Payable $ 14,756 $ (58) $ 14,698
Accrued Insurance 13,050 - 13,050
Accrued Payroll 33,313 57 33,370
Unearned Revenue 58,511 26,425 84,936
Accrual For Termite Contracts 21,704 (7,066) 14,638
Other Current Liabilities 30,306 - 30,306
--------------------- ----------------- -------------------
Current Liabilities 171,640 19,358 190,998
Accrued Insurance 26,641 - 26,641
Accrual For Termite Contracts 23,621 (8,491) 15,130
Accrued Pension - - -
Long-Term Accrued Liabilities 18,482 (1,013) 17,469
--------------------- ----------------- -------------------
Total Liabilities 240,384 9,854 250,238
Stockholder's Equity
Common Stock 45,638 - 45,638
Retained Earnings and Other Equity 123,939 (7,975) 115,964
--------------------- ----------------- -------------------
Total Stockholders' Equity 169,577 (7,975) 161,602
--------------------- ----------------- -------------------
Total Liabilities and Stockholders' Equity $ 409,961 $ 1,879 $ 411,840
===================== ================= ===================
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data)
(Unaudited)
Three Months Ended
Previously Effect of As Restated
Reported Accounting
June 30, Change June 30,
2004 2004
--------------------- ----------------- -------------------
Revenues $ 207,698 $ (4,973) $ 202,725
--------------------- ----------------- -------------------
Costs & Expenses
Cost of Services Provided 105,442 (26) 105,416
Depreciation & Amortization 5,764 - 5,764
Sales General & Administrative 69,155 - 69,155
(Gain)/Loss on Sales of Assets (14,143) - (14,143)
Interest (Income)/Expense (47) - (47)
--------------------- ----------------- -------------------
Total Cost & Expenses $ 166,171 $ (26) $ 166,145
--------------------- ----------------- -------------------
Income Before Taxes 41,527 (4,947) 36,580
Provision for Income Taxes 17,717 (2,028) 15,689
--------------------- ----------------- -------------------
Cumulative effect of change in accounting principle, net - - -
-------------------- ------------------ --------------------
Net Income 23,810 $ (2,919) $ 20,891
===================== ================= ===================
Net income (loss) per common share-basic:
Income (loss) before cumulative effect
change in accountng principle $ 0.52 $ (0.07) $ 0.45
Net income (loss) per common share-diluted:
Income (loss) before cumulative effect
change in accountng principle $ 0.51 $ (0.07) $ 0.44
AVERAGE SHARES OUTSTANDING - BASIC 45,552 45,552 45,552
AVERAGE SHARES OUTSTANDING - DILUTED 46,753 46,753 46,753
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In thousands except share and per share data)
(Unaudited)
Previously Effect of As Restated
Reported Accounting
as of September 30, Change as of September 30,
2004 2004
--------------------- ------------------ --------------------
Assets
Cash and Short-Term Investments $ 40,894 $ - $ 40,894
Marketable Securities - - -
Trade Receivables Short Term, Net 52,295 (3,367) 48,928
Materials and Supplies 11,002 - 11,002
Deferred Income Taxes 21,838 6,993 28,831
Other Current Assets 11,283 - 11,283
--------------------- ------------------ --------------------
Current Assets 137,312 3,626 140,938
Equipment and Property, Net 45,186 - 45,186
Goodwill 114,333 - 114,333
Customer Contracts 79,448 - 79,448
Trade Receivables Long Term, Net 11,063 - 11,063
Deferred Income Taxes 9,701 (3,132) 6,569
Other Assets 30,804 - 30,804
--------------------- ------------------ --------------------
Total Assets $ 427,847 $ 494 $ 428,341
===================== ================== ====================
Liabilities
Accounts Payable $ 14,378 $ (57) $ 14,321
Accrued Insurance 13,049 - 13,049
Accrued Payroll 38,684 57 38,741
Unearned Revenue 66,566 24,679 91,245
Accrual For Termite Contracts 21,700 (8,971) 12,729
Other Current Liabilities 28,110 - 28,110
--------------------- ------------------ --------------------
Current Liabilities 182,487 15,708 198,195
Accrued Insurance 25,181 - 25,181
Accrual For Termite Contracts 21,684 (8,299) 13,385
Accrued Pension - - -
Long-Term Accrued Liabilities 19,252 (935) 18,317
--------------------- ------------------ --------------------
Total Liabilities 248,604 6,474 255,078
Stockholder's Equity
Common Stock 45,668 - 45,668
Retained Earnings and Other Equity 133,575 (5,980) 127,595
--------------------- ------------------ --------------------
Total Stockholders' Equity 179,243 (5,980) 173,263
--------------------- ------------------ --------------------
Total Liabilities and Stockholders' Equity $ 427,847 $ 494 $ 428,341
===================== ================== ====================
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data)
(Unaudited)
Three Months Ended
Previously Effect of As Restated
Reported Accounting
September 30, Change September 30,
2004 2004
--------------------- ------------------ -------------------
Revenues $ 202,257 $ 1,668 $ 203,925
--------------------- ------------------ -------------------
Costs & Expenses
Cost of Services Provided 106,748 (1,713) 105,035
Depreciation & Amortization 6,249 - 6,249
Sales General & Administrative 70,080 - 70,080
(Gain)/Loss on Sales of Assets (315) - (315)
Interest (Income)/Expense (68) - (68)
--------------------- ------------------ -------------------
Total Cost & Expenses $ 182,694 $ (1,713) $ 180,981
--------------------- ------------------ -------------------
Income Before Taxes 19,563 3,381 22,944
Provision for Income Taxes 7,925 1,386 9,311
--------------------- ------------------ -------------------
Cumulative effect of change in accounting principle, net - - -
-------------------- ------------------ --------------------
Net Income $ 11,638 $ 1,995 $ 13,633
===================== ================== ===================
Net income (loss) per common share-basic:
Income (loss) before cumulative effect
change in accountng principle $ 0.26 $ 0.04 $ 0.30
Net income (loss) per common share-diluted
Income (loss) before cumulative effect
change in accountng principle $ 0.25 $ 0.04 $ 0.29
AVERAGE SHARES OUTSTANDING - BASIC 45,660 45,660 45,660
AVERAGE SHARES OUTSTANDING - DILUTED 46,797 46,797 46,797