Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

 

ROLLINS, INC. REPORTS RECORD FOURTH QUARTER AND

FULL-YEAR 2007 FINANCIAL RESULTS

 

Company Posts 10th Consecutive Year of Improving Financial Performance

 

 

Revenue increased 5.5% for the quarter and 4.2% for full year

 

Diluted Earnings per share rose from $0.56 to $0.64 for 2007, a 14.3% increase and 20% for the quarter from $0.10 to $0.12

 

Cash and Cash Equivalents increased 12.5% to $71.3 million

 

ATLANTA, GEORGIA, January 23, 2008: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for its fourth quarter and year ended December 31, 2007.

 

The Company recorded fourth quarter revenues of $216.0 million, an increase of 5.5% over the prior year’s fourth quarter revenue of $204.7 million. Net income increased 13.2% to $11.9 million or $0.12 per diluted share for the fourth quarter ended December 31, 2007, compared to $10.5 million or $0.10 per diluted share for the same period in 2006.

 

Revenues for full year 2007 rose 4.2% to $894.9 million, compared to $858.9 million for the prior year. Rollins’ net income for the full year rose 12% to $64.7 million or $0.64 per diluted share compared to net income of $57.8 million or $0.56 per diluted share for the prior year.

 

Rollins’ balance sheet continued to grow with total assets increasing to $475.2 million and stockholder’s equity growth to $233.6 million. The Company ended the year with cash and cash equivalents of $71.3 million, up 12.5% over last year.

 

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “The positive performance we achieved in our fourth quarter and full year reflect the success of our sales and service programs. We are seeing the benefits from the investments we are making that are generating improved sales growth as well as improving service efficiency”.

 

Mr. Rollins concluded, “We are excited about our Company’s opportunities in the new year. The continued development and deployment of our key programs should enable us to maintain our momentum. We are very proud of our people who have worked diligently to make 2007 such a success and likewise will be key in 2008.”

 

Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, Inc., PCO Services, Western Pest Services, and The Industrial Fumigant Company, 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, Mexico, Central America, the Caribbean, the Middle East and Asia from over 400 locations. You can learn more about our subsidiaries by visiting our Web sites at www.orkin.com, www.westernpest.com, www.indfumco.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 the Company’s belief that the investments the Company is making are generating improved sales growth and service efficiency; the Company’s excitement about the Company’s opportunities for the new year; and the Company’s belief that the continued development and deployment of its key programs should enable the Company to maintain its momentum. 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 and integrate potential acquisitions; climate and weather trends; competitive factors and pricing practices; expected benefits of the commercial re-engineering project may not be realized; 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, 2006.

 

 

 

 

 

 

 

 

 

 

 

ROLLINS, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 

(in thousands)

 

 

 

2007

 

 

 

2006

 

At December 31,

 

(unaudited)

 

 

 

(unaudited)

 

ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

71,280

 

 

 

$

63,344

 

Trade receivables, short-term

 

 

54,457

 

 

 

 

52,693

 

Materials and supplies

 

 

8,846

 

 

 

 

8,401

 

Deferred income taxes

 

 

17,162

 

 

 

 

19,435

 

Other current assets

 

 

8,495

 

 

 

 

7,200

 

Total Current Assets

 

 

160,240

 

 

 

 

151,073

 

 

 

 

 

 

 

 

 

 

 

Equipment and property, net

 

 

77,370

 

 

 

 

72,141

 

Goodwill

 

 

126,684

 

 

 

 

125,161

 

Customer Contracts

 

 

63,056

 

 

 

 

67,761

 

Other Intangible assets

 

 

9,232

 

 

 

 

9,294

 

Deferred income taxes

 

 

7,576

 

 

 

 

14,069

 

Trade receivables, long-term

 

 

8,409

 

 

 

 

8,796

 

Prepaid Pension

 

 

16,624

 

 

 

 

 

Other assets

 

 

6,037

 

 

 

 

4,880

 

Total Assets

 

$

475,228

 

 

 

$

453,175

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Capital leases

 

$

1,186

 

 

 

$

498

 

Accounts payable

 

 

19,140

 

 

 

 

16,309

 

Accrued insurance

 

 

13,505

 

 

 

 

14,310

 

Accrued compensation and related liabilities

 

 

45,605

 

 

 

 

47,305

 

Unearned revenue

 

 

81,678

 

 

 

 

79,441

 

Other current liabilities

 

 

26,587

 

 

 

 

27,343

 

Total Current Liabilities

 

 

187,701

 

 

 

 

185,206

 

 

 

 

 

 

 

 

 

 

 

Capital leases, less current portion

 

 

601

 

 

 

 

124

 

Accrued pension

 

 

 

 

 

 

6,946

 

Long-term accrued liabilities

 

 

53,373

 

 

 

 

49,440

 

Total Liabilities

 

 

241,675

 

 

 

 

241,716

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Common stock

 

 

100,636

 

 

 

 

101,837

 

Retained earnings and other equity

 

 

132,917

 

 

 

 

109,622

 

Total Stockholders’ Equity

 

 

233,553

 

 

 

 

211,459

 

Total Liabilities and Stockholders’ Equity

 

$

475,228

 

 

 

$

453,175

 

 

 

 







ROLLINS, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF INCOME

 

FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED DECEMBER 31,

 

(in thousands except per share data)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter Ended

 

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

 

December 31,

 

 

 

 

2007

 

 

 

 

2006

 

 

 

 

2007

 

 

 

 

2006

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer services

 

$

215,954

 

 

 

$

204,653

 

 

 

$

894,920

 

 

 

$

858,878

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of services provided

 

 

117,199

 

 

 

 

112,601

 

 

 

 

468,665

 

 

 

 

457,869

 

Depreciation and amortization

 

 

6,586

 

 

 

 

6,460

 

 

 

 

27,068

 

 

 

 

26,860

 

Sales, general and administrative

 

 

74,633

 

 

 

 

69,250

 

 

 

 

296,615

 

 

 

 

280,578

 

(Gain)/Loss on sale of assets

 

 

61

 

 

 

 

(65

)

 

 

 

(52

)

 

 

 

(81

)

Interest income

 

 

(749

)

 

 

 

(539

)

 

 

 

(2,289

)

 

 

 

(1,507

)

 

 

 

197,730

 

 

 

 

187,707

 

 

 

 

790,007

 

 

 

 

763,719

 

INCOME BEFORE TAXES

 

 

18,224

 

 

 

 

16,946

 

 

 

 

104,913

 

 

 

 

95,159

 

PROVISION FOR INCOME TAXES

 

 

6,290

 

 

 

 

6,407

 

 

 

 

40,182

 

 

 

 

37,350

 

NET INCOME

 

$

11,934

 

 

 

$

10,539

 

 

 

$

64,731

 

 

 

$

57,809

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER SHARE - BASIC

 

$

0.12

 

 

 

$

0.10

 

 

 

$

0.65

 

 

 

$

0.57

 

NET INCOME PER SHARE - DILUTED

 

$

0.12

 

 

 

$

0.10

 

 

 

$

0.64

 

 

 

$

0.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

 

99,854

 

 

 

 

100,662

 

 

 

 

100,299

 

 

 

 

100,747

 

Weighted average shares outstanding - Diluted

 

 

101,051

 

 

 

 

103,090

 

 

 

 

101,409

 

 

 

 

103,314

 

 

 

CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)

 

 

 

Management will hold a conference call to discuss

Fourth quarter results on:

 

Wednesday, January 23, 2008 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 800-240-2430 domestic;

303-262-2140 international

at least 5 minutes before start time.

 

REPLAY: available through January 30, 2008

Please dial 800-405-2236/303-590-3000, Passcode: 11106089

THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT

www.viavid.net  

 

Questions?

Contact Janet Jazimin at Financial Relations Board at 212-827-3777

Or email to jjazimin@financialrelationsboard.com