Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS SECOND QUARTER AND SIX MONTH 2011

FINANCIAL RESULTS

 

ATLANTA, GEORGIA, July 27, 2011: 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, 2011.

 

The Company recorded second quarter revenues of $320.4 million, an increase of 7.2% over the prior year’s second quarter revenue of $298.8 million.  Net income increased 12.1% to $31.1 million or $0.21 per diluted share for the second quarter ended June 30, 2011, compared to $27.7 million or $0.19 per diluted share for the same period in 2010.

 

Rollins’ revenues rose 7.3% for the first six months of 2011 to $592.1 million compared to $551.8 million for the prior year.  Net income for the first six months of 2011 was $49.7 million, or $0.34 per diluted share, compared to net income of $45.3 million, or $0.30 per diluted share for the same period last year.

 

In the second quarter, the Company repurchased 533,012 shares at a weighted average price of $19.37 per share bringing the total number of shares repurchased year-to-date to 789,296 at a weighted average price of $19.22.  In total, 1,748,950 additional shares may be purchased under the share repurchase program.

 

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “We are pleased with the strong financial results our Company reported for the second quarter and first six months of this year.  The contributions made to our business across all our brands position us to achieve our business objectives for 2011 and beyond.  Furthermore, we are seeing the benefits of the organizational changes made this year involving John Wilson heading Orkin USA, and Bob Wanzer leading the Rollins Independent Brands.”

 

Mr. Rollins concluded, “We continue to make investments in our company and are confident that these strategies and action plans will enable us to continue to improve our margins and market share and grow at a faster pace than our industry.”

 

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, Crane Pest Control, and TruTech, 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, www.trutechinc.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 contributions made to our business across all of our brands position us to achieve our business objectives for 2011 and beyond and our belief the Company’s strategies and action plans with enable the Company to continue to improve its margins and market share and grow at a faster pace than the Company’s industry.  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, 2010.

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At June 30, (unaudited)		2011			2010
ASSETS
Cash and cash equivalents		$	25,820		$	19,286
Trade receivables, short-term		83,525			75,115
Materials and supplies		12,305			11,122
Deferred income taxes		27,628			26,190
Other current assets		20,198			14,597
Total Current Assets		169,476			146,310
Equipment and property, net		74,026			71,260
Goodwill		213,705			189,668
Customer Contracts and Other Intangible assets		144,947			138,390
Deferred income taxes		13,156			17,332
Trade receivables, long-term		11,319			10,578
Other assets		10,503			8,869
Total Assets		$	637,132		$	582,407
LIABILITIES
Accounts payable		$	31,853		$	17,599
Accrued insurance		20,580			15,848
Accrued compensation and related liabilities		60,951			55,966
Unearned revenue		93,387			93,450
Line of Credit		10,000			25,000
Other current liabilities		32,478			29,607
Total Current Liabilities		249,249			237,470
Accrued insurance		26,830			27,850
Accrued pension		8,253			13,919
Long-term accrued liabilities		39,617			27,598
Total Liabilities		323,949			306,837
STOCKHOLDERS’ EQUITY
Common stock		146,904			148,227
Retained earnings and other equity		166,279			127,343
Total Stockholders’ Equity		313,183			275,570
Total Liabilities and Stockholders’ Equity		$	637,132		$	582,407

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

		Second Quarter Ended						Six Months Ended
		June 30,						June 30,
		2011			2010			2011			2010
REVENUES
Customer services		$	320,436		$	298,803		$	592,079		$	551,844
COSTS AND EXPENSES
Cost of services provided		159,645			148,428			300,543			279,403
Depreciation and amortization		9,288			8,967			18,488			17,967
Sales, general and administrative		101,757			96,963			193,255			181,878
Interest Expense		178			66			370			165
		270,868			254,424			512,656			479,413
INCOME BEFORE TAXES		49,568			44,379			79,423			72,431
PROVISION FOR INCOME TAXES		18,507			16,679			29,722			27,148
NET INCOME		$	31,061		$	27,700		$	49,701		$	45,283
NET INCOME PER SHARE - BASIC		$	0.21		$	0.19		$	0.34		$	0.30
NET INCOME PER SHARE - DILUTED		$	0.21		$	0.19		$	0.34		$	0.30
Weighted average shares outstanding - basic		147,245			148,566			147,358			148,687
Weighted average shares outstanding - diluted		147,314			148,798			147,441			148,943

 

 

CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

Second Quarter results on:

 

Wednesday, July 27, 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 877-941-8609 domestic;

480-629-9818 international
at least 5 minutes before start time.

 

REPLAY: available through August 4, 2011

Please dial 800-406-7325/303-590-3030, Passcode: 4456994

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