Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS FOURTH QUARTER AND FULL-YEAR 2010

FINANCIAL RESULTS

 

Company Posts 19th Consecutive Quarter of Improved Earnings Results

 

ATLANTA, GEORGIA, January 26, 2011: 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, 2010.

 

The Company recorded fourth quarter revenues of $279.9 million, an increase of 7.8% over the prior year’s fourth quarter revenue of $259.6 million.  Net income increased 23.0% to $19.2 million or $0.13 per diluted share for the fourth quarter ended December 31, 2010, compared to $15.6 million or $0.10 per diluted share for the same period in 2009 excluding certain charges described below.

 

Revenues for the full year 2010 rose 5.9% to $1.137 billion compared to $1.074 billion for the prior year.  Rollins’ net income for the full year rose 13.0% to $90.0 million, or $0.61 per diluted share, compared to net income of $79.6 million, or $0.53 per diluted share for the prior year excluding certain charges described below.

 

GAAP earnings for the fourth quarter and full year 2009 were $20.0 million or $0.13 per diluted share and $84.0 million or $0.56 per diluted share respectively.

 

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “Once more, the Rollins family of pest control companies has exceeded our 2010 major objectives.  We are pleased to have delivered solid financial results for the fourth quarter and for the year.  These results reflect the underlying strength of our business and our initiatives to benefit our customers, employees, and shareholders.”

 

Mr. Rollins concluded, “The Company is well-positioned for 2011, and we are optimistic that we have the team and plans to again achieve record results.  As we move into a new decade, we are committed to work on the key drivers of the business that have helped make Rollins, Inc., a premier North American consumer and commercial services company.”

 

Reported results for fourth quarter 2009 as previously disclosed, include a tax benefit related to the conversion of Orkin to a limited liability company, net of cost associated with a Canadian restructuring and repatriation of cash in 2009, and an impairment charge, which combined increased reported fourth quarter 2009 earnings by a net $0.03 per diluted share.

 



 

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, Waltham Services 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, 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.walthamservices.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 has the team and plans to again achieve record results and the Company’s commitment to work on the key drivers of its business.  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 the 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; the Company’s 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 December 31, (unaudited)

 

2010

 

2009

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

20,913

 

$

9,504

 

Trade receivables, short-term

 

67,185

 

60,590

 

Accounts Receivable - Other

 

3,248

 

2,164

 

Materials and supplies

 

11,899

 

10,208

 

Deferred income taxes

 

27,396

 

25,839

 

Other current assets

 

20,380

 

12,225

 

Total Current Assets

 

151,021

 

120,530

 

 

 

 

 

 

 

Trade receivables, long-term

 

10,193

 

9,356

 

Equipment and property, net

 

74,013

 

74,644

 

Goodwill

 

210,779

 

189,658

 

Customer Contracts

 

117,291

 

121,176

 

Other Intangible Assets

 

30,265

 

24,785

 

Deferred income taxes

 

15,106

 

17,901

 

Other assets

 

10,346

 

8,446

 

Total Assets

 

$

619,014

 

$

566,496

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable

 

$

25,940

 

$

15,841

 

Accrued insurance

 

18,652

 

16,567

 

Accrued compensation and related liabilities

 

61,817

 

57,377

 

Unearned revenue

 

85,489

 

85,883

 

Line of Credit

 

26,000

 

30,000

 

Other current liabilities

 

28,543

 

27,085

 

Total Current Liabilities

 

246,441

 

232,753

 

 

 

 

 

 

 

Accrued pension

 

12,515

 

14,895

 

Long-term accrued liabilities

 

62,088

 

54,282

 

Total Liabilities

 

321,044

 

301,930

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock

 

147,181

 

148,357

 

Retained earnings and other equity

 

150,789

 

116,209

 

Total Stockholders’ Equity

 

297,970

 

264,566

 

Total Liabilities and Stockholders’ Equity

 

$

619,014

 

$

566,496

 

 



 

ROLLINS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

 

 

Fourth Quarter Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2010

 

2009

 

2010

 

2009

 

REVENUES

 

 

 

 

 

 

 

 

 

Customer services

 

$

279,928

 

$

259,567

 

$

1,136,890

 

$

1,073,958

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

 

Cost of services provided

 

147,622

 

136,562

 

583,089

 

551,002

 

Depreciation and amortization

 

9,365

 

9,045

 

36,408

 

37,169

 

Sales, general and administrative

 

92,506

 

88,563

 

373,288

 

355,590

 

Loss on impairment/sale of assets

 

118

 

2,935

 

123

 

2,942

 

Interest expense, net

 

172

 

118

 

437

 

964

 

 

 

249,783

 

237,223

 

993,345

 

947,667

 

INCOME BEFORE TAXES

 

30,145

 

22,344

 

143,545

 

126,291

 

PROVISION FOR INCOME TAXES

 

10,939

 

2,383

 

53,543

 

42,307

 

NET INCOME

 

$

19,206

 

$

19,961

 

$

90,002

 

$

83,984

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER SHARE - BASIC

 

$

0.13

 

$

0.13

 

$

0.61

 

$

0.56

 

NET INCOME PER SHARE - DILUTED

 

$

0.13

 

$

0.13

 

$

0.61

 

$

0.56

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

147,184

 

148,456

 

148,030

 

149,179

 

Weighted average shares outstanding - diluted

 

147,306

 

148,845

 

148,231

 

149,624

 

 



 

ROLLINS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIALS

(in thousands except per share data)

(unaudited)

 

 

 

Fourth Quarter Ended

 

Twelve Months Ended

 

 

 

December 31, 2009

 

December 31, 2009

 

Net income as reported

 

$

19,961

 

$

  83,984

 

Add: Impairment of project (net of taxes)

 

1,809

 

1,809

 

Less: Net tax benefit

 

(6,152

)

(6,152

)

Adjusted earnings

 

$

15,618

 

$

  79,641

 

Adjusted earnings per share

 

$

0.10

 

$

  0.53

 

Weighted average shares outstanding - diluted

 

148,845

 

149,624

 

 

ROLLINS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIALS

(in thousands except per share data)

(unaudited)

 

 

 

Fourth Quarter Ended

 

Twelve Months Ended

 

 

 

December 31, 2009

 

December 31, 2009

 

Net income per share - diluted as reported

 

$

0.13

 

$

0.56

 

Add: Impairment of project (net of taxes)

 

$

0.01

 

$

0.01

 

Less: Net tax benefit

 

$

(0.04

)

$

(0.04

)

Adjusted earnings per share - diluted

 

$

0.10

 

$

0.53

 

 



 

CONFERENCE CALL ANNOUNCEMENT

 

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

Fourth Quarter results on:

 

Wednesday, January 26, 2011 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 877-941-8632 domestic;
480-629-9820 international
at least 5 minutes before start time.

 

REPLAY: available through February 3, 2011

Please dial 800-406-7325/303-590-3030, Passcode: 4399060

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