Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS SECOND QUARTER 2010

FINANCIAL RESULTS

 

ATLANTA, GEORGIA, July 28, 2010: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its second quarter ended June 30, 2010.  The Company recorded second quarter revenues of $298.8 million, an increase of 5.0% over the prior year’s second quarter revenue of $284.6 million.  Net income increased 8.7% to $27.7 million or $0.28 per diluted share for the second quarter ended June 30, 2010, compared to $25.5 million or $0.26 per diluted share for the same period in 2009.

 

The Company repurchased 756,828 shares of common stock at a weighted average price of $21.21 per share during the second quarter bringing the total number of shares repurchased year-to-date to 886,928 at a weighted average price of $20.92.  In total, 2,064,663 additional shares may be purchased under the share repurchase program.

 

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “Our second quarter results reflect the benefits of our marketing and sales programs with all major brands enjoying solid revenue increases.”

 

Mr. Rollins concluded, “We are confident that our strategy of investing in improving market share by growing faster than our industry will prove to be long-term beneficial.  The acquisition of Waltham Services announced earlier this month will expand our presence in New England and reinforce our geographic footprint.  The addition of this terrific company, along with their outstanding employees, in tandem with our other leading brands strengthens Rollins as the preeminent pest control provider.”

 

Rollins, Inc. is a premier North American consumer and commercial services company.  Through its wholly owned subsidiaries, Orkin, HomeTeam Pest Defense, Western Pest Services, PCO 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 statements about the Company’s belief that the Company’s strategy of investing in improving market share by growing faster than our industry will prove to be beneficial over the long-term; and our ability to successfully complete the acquisition of Waltham Services and thereafter successfully integrate the operations of this business with the Company’s operations.  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 June 30, (unaudited)		2010			2009
ASSETS
Cash and cash equivalents		$	19,286		$	22,575
Trade receivables, short-term		71,494			68,123
Accounts Receivable - Other		3,621			2,377
Materials and supplies		11,122			11,196
Deferred income taxes		26,190			18,745
Other current assets		14,597			8,999
Total Current Assets		146,310			132,015
Trade receivables, long-term		10,578			10,170
Equipment and property, net		71,260			77,183
Goodwill		189,668			188,830
Customer Contracts		113,859			123,399
Other Intangible Assets		24,531			22,899
Deferred income taxes		17,332			17,032
Other assets		8,869			7,114
Total Assets		$	582,407		$	578,642
LIABILITIES
Accounts payable		$	17,599		$	19,245
Accrued insurance		15,848			15,807
Accrued compensation and related liabilities		55,966			54,804
Unearned revenue		93,450			95,355
Line of Credit		25,000			55,000
Other current liabilities		29,607			27,550
Total Current Liabilities		237,470			267,761
Accrued insurance		27,850			26,308
Accrued pension		13,919			20,112
Long-term accrued liabilities		27,598			27,091
Total Liabilities		306,837			341,272
STOCKHOLDERS’ EQUITY
Common stock		98,559			99,168
Retained earnings and other equity		177,011			138,202
Total Stockholders’ Equity		275,570			237,370
Total Liabilities and Stockholders’ Equity		$	582,407		$	578,642

 

 

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,
		2010			2009			2010			2009
REVENUES
Customer services		$	298,803		$	284,567		$	551,844		$	527,539
COSTS AND EXPENSES
Cost of services provided		148,428			141,633			279,403			267,004
Depreciation and amortization		8,967			9,374			17,967			18,803
Sales, general and administrative		96,772			91,806			181,873			173,794
(Gain)/Loss on sale of assets		191			(18		)	5			(23		)
Interest expense, net		66			259			165			687
		254,424			243,054			479,413			460,265
INCOME BEFORE TAXES		44,379			41,513			72,431			67,274
PROVISION FOR INCOME TAXES		16,679			16,031			27,148			25,984
NET INCOME		$	27,700		$	25,482		$	45,283		$	41,290
NET INCOME PER SHARE - BASIC		$	0.28		$	0.26		$	0.46		$	0.41
NET INCOME PER SHARE - DILUTED		$	0.28		$	0.26		$	0.46		$	0.41
Weighted average shares outstanding - basic		99,044			99,581			99,125			99,865
Weighted average shares outstanding - diluted		99,199			99,889			99,295			100,176

 

 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

Second Quarter results on:

 

Wednesday, July 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 800-762-8795 domestic;

480-629-9772 international
at least 5 minutes before start time.

 

REPLAY: available through August 4, 2010

Please dial 800-406-7325/303-590-3030, Passcode: 4329321

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