Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS FIRST QUARTER 2010

 FINANCIAL RESULTS

 

ATLANTA, GEORGIA, April 28, 2010: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its first quarter ended March 31, 2010.  The Company recorded first quarter revenues of $253.0 million, an increase of 4.1% over the prior year’s first quarter revenue of $243.0 million.  Net income increased 11.2% to $17.6 million or $0.18 per diluted share for the first quarter ended March 31, 2010, compared to $15.8 million or $0.16 per diluted share for the same period in 2009.

 

On January 26, 2010, Rollins increased its regular quarterly cash dividend to shareholders 28.6 percent to $0.09.  The Company also repurchased 130,100 shares at a weighted average price of $19.23 per share during the first quarter.  In total, 2,821,491 additional shares may be purchased under the share repurchase program.

 

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “We are very pleased with our first quarter results and the start of the year.  Our Company delivered solid revenue results, improved gross margins and profits, and generated strong cash flow.”

 

Mr. Rollins concluded, “We are off to a good beginning and are executing very meaningful programs that should make contributions throughout the year.  We are especially grateful to our employees who are working hard to execute our 2010 plan.”

 

Rollins, Inc. is a premier North American consumer and commercial services company.  Through its wholly owned subsidiaries, Orkin, 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, Europe, 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.orkincanada.ca, 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 belief that Company is executing very meaningful programs that should make contributions throughout the year.  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; 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; our 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, 2009.

 


 

ROLLINS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At March 31, (unaudited)

 

2010

 

2009

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

14,149

 

$

14,957

 

Trade receivables, short-term

 

60,709

 

58,783

 

Accounts Receivable - Other

 

2,228

 

1,854

 

Materials and supplies

 

10,957

 

11,555

 

Deferred income taxes

 

25,760

 

19,892

 

Other current assets

 

11,842

 

10,919

 

Total Current Assets

 

125,645

 

117,960

 

 

 

 

 

 

 

Trade receivables, long-term

 

9,021

 

8,946

 

Equipment and property, net

 

72,203

 

78,325

 

Goodwill

 

189,925

 

188,101

 

Customer Contracts

 

117,130

 

126,502

 

Other Intangible Assets

 

24,575

 

23,172

 

Deferred income taxes

 

17,644

 

17,514

 

Other assets

 

9,190

 

6,396

 

Total Assets

 

$

565,333

 

$

566,916

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable

 

$

20,671

 

$

18,712

 

Accrued insurance

 

16,754

 

15,067

 

Accrued compensation and related liabilities

 

47,865

 

45,216

 

Unearned revenue

 

89,604

 

90,785

 

Line of Credit

 

15,000

 

62,000

 

Other current liabilities

 

34,969

 

33,521

 

Total Current Liabilities

 

224,863

 

265,301

 

 

 

 

 

 

 

Accrued insurance

 

26,054

 

25,803

 

Accrued pension

 

14,731

 

20,232

 

Long-term accrued liabilities

 

28,022

 

27,385

 

Total Liabilities

 

293,670

 

338,721

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock

 

99,336

 

99,882

 

Retained earnings and other equity

 

172,327

 

128,313

 

Total Stockholders’ Equity

 

271,663

 

228,195

 

Total Liabilities and Stockholders’ Equity

 

$

565,333

 

$

566,916

 

 


 

ROLLINS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

 

 

First Quarter Ended

 

 

 

March 31,

 

 

 

2010

 

2009

 

REVENUES

 

 

 

 

 

Customer services

 

$

253,041

 

$

242,972

 

COSTS AND EXPENSES

 

 

 

 

 

Cost of services provided

 

130,975

 

125,371

 

Depreciation and amortization

 

9,000

 

9,429

 

Sales, general and administrative

 

85,101

 

81,988

 

Gain on impairment/sale of assets

 

(186

)

(5

)

Interest expense, net

 

99

 

428

 

 

 

224,989

 

217,211

 

INCOME BEFORE TAXES

 

28,052

 

25,761

 

PROVISION FOR INCOME TAXES

 

10,469

 

9,953

 

NET INCOME

 

$

17,583

 

$

15,808

 

 

 

 

 

 

 

NET INCOME PER SHARE - BASIC

 

$

0.18

 

$

0.16

 

NET INCOME PER SHARE - DILUTED

 

$

0.18

 

$

0.16

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

99,206

 

100,152

 

Weighted average shares outstanding - diluted

 

99,393

 

100,468

 

 


 

CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

First Quarter results on:

 

Wednesday, April 28, 2010 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 877-941-8610 domestic;

480-629-9820 international
at least 5 minutes before start time.

 

REPLAY: available through May 5, 2010

Please dial 800-406-7325/303-590-3000, Passcode: 4282234

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