Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS SECOND QUARTER 2009

FINANCIAL RESULTS

 

13th Consecutive Quarter of Improved Earnings Results

 

ATLANTA, GEORGIA, July 29, 2009: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for its second quarter ended June 30, 2009. Revenues for the second quarter of 2009 were flat at $284.6 million, compared to $284.5 million for the second quarter of 2008.  The negative impact of the Canadian dollar on second quarter revenues was partially offset by the Company’s recent acquisition of Crane Pest Control.

 

Net income increased 12.1% to $25.5 million or $0.26 per diluted share for the second quarter compared to $22.7 million or $0.23 per diluted share for the same period last year.

 

The Company repurchased 700,400 shares of common stock at a weighted average price of $16.90 per share during the second quarter bringing the total number of shares repurchased year-to-date to 1,303,800 at a weighted average price of $16.11.  In total, approximately 3.3 million additional shares may be purchased under its share repurchase program.

 

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. commented, “We are pleased with our net income improvements for the quarter and the year as we continue to benefit from the proactive expense reduction and productivity related programs we launched at the beginning of 2009.  Although our flat revenue performance would be highly desirable for many companies in today’s business environment, we continue to challenge ourselves to better execute our revenue generating initiatives.”

 

Mr. Rollins, concluded, “As a parent company, Rollins, Inc. today is made up of the top pest control brands in North America.  In the past decade, we have evolved into an organization that is far broader than Orkin.  We are especially proud of the expertise, and effort exhibited by all of our employees during these demanding economic times.”

 

Rollins, Inc. is a premier North American consumer and commercial services company.  Through its wholly owned subsidiaries, Orkin, Inc., PCO Services, HomeTeam Pest Defense, Western Pest Services, The Industrial Fumigant Company and Crane Pest Control, the Company provides essential pest control services and protection against termite damage, rodents and insects to over 2 million customers in the United States, Canada, Mexico, Central America, the Caribbean, the Middle East and Asia from over 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.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 ability to continue to benefit from proactive expense and productivity related programs and the Company’s ability to better execute the Company’s revenue generating initiatives.  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 our Company’s business; 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; 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, 2008.

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At June 30, (unaudited)		2009			2008
ASSETS
Cash and cash equivalents		$	22,575		$	15,272
Trade receivables, short-term		68,123			67,602
Accounts Receivable - Other		2,377			7,606
Materials and supplies		11,196			10,260
Deferred income taxes		18,745			17,934
Other current assets		8,999			9,767
Total Current Assets		132,015			128,441
Equipment and property, net		77,183			78,805
Goodwill		188,830			183,083
Other Intangible Assets		22,899			25,364
Customer Contracts		123,399			130,746
Deferred income taxes		17,032			8,020
Trade receivables, long-term		10,170			9,998
Prepaid Pension		—			17,443
Other assets		7,114			6,908
Total Assets		$	578,642		$	588,808
LIABILITIES
Loans outstanding		$	55,000		$	54,000
Capital leases		314			822
Accounts payable		19,245			26,531
Accrued insurance		15,807			13,541
Accrued compensation and related liabilities		54,804			56,358
Other current liabilities		27,236			31,971
Unearned revenue		95,355			98,837
Total Current Liabilities		267,761			282,060
Capital leases, less current portion		85			460
Accrued pension		20,112			—
Long-term accrued liabilities		53,314			56,812
Total Liabilities		341,272			339,332
STOCKHOLDERS’ EQUITY
Common stock		99,168			100,869
Retained earnings and other equity		138,202			148,607
Total Stockholders’ Equity		237,370			249,476
Total Liabilities and Stockholders’ Equity		$	578,642		$	588,808

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

		Second Quarter Ended						Six Months Ended
		June 30,						June 30,
		2009			2008			2009			2008
REVENUES
Customer services		$	284,567		$	284,499		$	527,539		$	494,577
COSTS AND EXPENSES
Cost of services provided		141,633			146,076			267,004			256,029
Depreciation and amortization		9,374			8,685			18,803			15,316
Sales, general and administrative		91,806			92,030			173,794			163,518
(Gain)/loss on sales of assets		(18		)	(14		)	(23		)	(35		)
Interest (income)/expense, net		259			393			687			(326		)
		243,054			247,170			460,265			434,502
INCOME BEFORE TAXES		41,513			37,329			67,274			60,075
PROVISION FOR INCOME TAXES		16,031			14,591			25,984			23,498
NET INCOME		$	25,482		$	22,738		$	41,290		$	36,577
NET INCOME PER SHARE - BASIC		$	0.26		$	0.23		$	0.42		$	0.37
NET INCOME PER SHARE - DILUTED		$	0.26		$	0.23		$	0.42		$	0.36
Weighted average shares outstanding - basic		97,727			99,369			98,028			99,378
Weighted average shares outstanding - diluted		98,524			100,171			98,771			100,286

 

 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

Second Quarter results on:

 

Wednesday, July 29, 2009 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 877-941-8633 domestic;

480-629-9822 international
at least 5 minutes before start time.

 

REPLAY: available through August 5, 2009

Please dial 800-406-7325/303-590-3030, Passcode: 4118589

THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT

www.viavid.net

 

Questions?

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

Or email to jjazmin@financialrelationsboard.com