Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS THIRD QUARTER 2009

FINANCIAL RESULTS

 

14th Consecutive Quarter of Improved Earnings Results

 

ATLANTA, GEORGIA, October 28, 2009: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for its third quarter ended September 30, 2009. Revenues for the third quarter of 2009 grew 3.2% to $286.9 million compared to $277.9 million for the third quarter of 2008.

 

Net income increased 14.8% to $22.7 million or $0.23 per diluted share for the third quarter compared to $19.8 million or $0.20 per diluted share for the same period last year.

 

The Company repurchased 146,300 shares of common stock at a weighted average price of $17.81 per share during the third quarter bringing the total number of shares repurchased year-to-date to 1,450,100 at a weighted average price of $16.28.  In total, approximately 3.2 million additional shares may be purchased under its share repurchase program.

 

“Rollins again delivered solid quarterly results.  We were especially pleased to experience increased revenue across our entire family of companies,” said Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc.  “Our revenue and lead generation programs are working and we are benefiting from a planned increase in our sales staff.”

 

Mr. Rollins, concluded, “We are clearly focused on successfully completing the year while maintaining the positive momentum in revenue growth, expense control, and service performance improvement.”

 

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, Asia and the Mediterranean 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, www.cranepestcontrol.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 statements about the Company’s clear focus on successfully completing the year while maintaining the positive momentum in revenue growth, expense control and service performance improvement.  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 September 30, (unaudited)		2009			2008
ASSETS
Cash and cash equivalents		$	26,221		$	16,334
Trade receivables, short-term		70,750			68,032
Accounts Receivable - Other		2,338			1,717
Materials and supplies		10,341			11,117
Deferred income taxes		17,628			18,323
Other current assets		14,143			8,320
Total Current Assets		141,421			123,843
Equipment and property, net		77,223			77,963
Goodwill		189,355			182,834
Other Intangible Assets		22,742			25,126
Customer Contracts		120,510			125,354
Deferred income taxes		16,669			8,309
Trade receivables, long-term		9,599			9,009
Prepaid Pension		—			18,259
Other assets		8,008			6,604
Total Assets		$	585,527		$	577,301
LIABILITIES
Loans outstanding		$	45,000		$	41,500
Capital leases		263			661
Accounts payable		16,616			20,037
Accrued insurance		15,605			14,855
Accrued compensation and related liabilities		58,208			53,842
Unearned revenue		95,361			99,297
Other current liabilities		29,610			29,294
Total Current Liabilities		260,663			259,486
Capital leases, less current portion		60			360
Accrued pension		14,992			—
Long-term accrued liabilities		56,584			54,394
Total Liabilities		332,299			314,240
STOCKHOLDERS’ EQUITY
Common stock		99,040			100,864
Retained earnings and other equity		154,188			162,197
Total Stockholders’ Equity		253,228			263,061
Total Liabilities and Stockholders’ Equity		$	585,527		$	577,301

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

		Third Quarter Ended						Nine Months Ended
		September 30,						September 30,
		2009			2008			2009			2008
REVENUES
Customer services		$	286,852		$	277,911		$	814,391		$	772,488
COSTS AND EXPENSES
Cost of services provided		147,436			145,415			414,440			401,444
Depreciation and amortization		9,321			9,031			28,124			24,347
Sales, general and administrative		93,233			91,440			267,027			254,958
(Gain)/loss on sales of assets		30			(154		)	7			(189		)
Interest (income)/expense, net		159			174			846			(152		)
		250,179			245,906			710,444			680,408
INCOME BEFORE TAXES		36,673			32,005			103,947			92,080
PROVISION FOR INCOME TAXES		13,940			12,201			39,924			35,699
NET INCOME		$	22,733		$	19,804		$	64,023		$	56,381
NET INCOME PER SHARE - BASIC		$	0.23		$	0.20		$	0.64		$	0.56
NET INCOME PER SHARE - DILUTED		$	0.23		$	0.20		$	0.64		$	0.56
Weighted average shares outstanding - basic		99,125			100,882			99,615			100,905
Weighted average shares outstanding - diluted		99,428			101,273			99,924			101,348

 

 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

Third Quarter results on:

 

Wednesday, October 28, 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 877-941-1466 domestic;

480-629-9677 international

at least 5 minutes before start time.

 

REPLAY: available through November 4, 2009

Please dial 800-406-7325/303-590-3030, Passcode: 4173072

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