Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS THIRD QUARTER AND NINE MONTHS 2011

FINANCIAL RESULTS

 

ATLANTA, GEORGIA, October 26, 2011: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its third quarter ended September 30, 2011.

 

The Company recorded third quarter revenues of $323.9 million, an increase of 6.2% over the prior year’s third quarter revenue of $305.1 million.  Net income increased 15.3% to $29.4 million or $0.20 per diluted share for the third quarter ended September 30, 2011, compared to $25.5 million or $0.17 per diluted share for the same period in 2010.

 

Rollins’ revenues rose 6.9% for the first nine months of 2011 to $916.0 million compared to $857.0 million for the prior year.  Net income for the first nine months of 2011 was $79.1 million, or $0.54 per diluted share, compared to net income of $70.8 million, or $0.48 per diluted share for the same period last year.

 

In the third quarter, the Company repurchased 598,986 shares at a weighted average price of $17.85 per share bringing the total number of shares repurchased year-to-date to 1,388,282 at a weighted average price of $18.63.  In total, 1,149,964 additional shares may be purchased under the share repurchase program.

 

“Rollins, Inc. had another successful quarter which represents 22 consecutive quarters of record performance,” said Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc.  “We are pleased with the solid financial results our Company reported for the third quarter and nine months of this year.  This growth came from all of our business lines and continues to reflect the positive results from the investments we are making.  As a result of these key operational initiatives and our dedicated teammates, we are on track to meet our financial objectives for 2011.”

 

Mr. Rollins concluded, “We are currently working on our 2012 plans and would expect another positive year for Rollins.”

 

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, the Mediterranean and Africa 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 third quarter growth came from all of the Company’s business lines and continues to reflect the positive results from the investments the Company is making; the Company’s belief that these key operational initiatives and its dedicated teammates result in the Company being on track to meet its financial objectives for 2011; and the Company’s expectation that 2012 will be another positive year for the Company.  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 September 30, (unaudited)

 

2011

 

2010

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

30,219

 

$

20,250

 

Trade receivables, short-term

 

71,715

 

67,552

 

Financed receivables, short-term

 

11,668

 

11,639

 

Materials and supplies

 

10,607

 

11,167

 

Deferred income taxes

 

30,575

 

27,092

 

Other current assets

 

17,096

 

13,161

 

Total Current Assets

 

171,880

 

150,861

 

Equipment and property, net

 

76,046

 

70,782

 

Goodwill

 

210,898

 

200,639

 

Customer Contracts and Other Intangible assets

 

140,598

 

145,532

 

Deferred income taxes

 

12,223

 

19,841

 

Financed receivables, long-term

 

11,108

 

10,416

 

Other assets

 

9,670

 

9,554

 

Total Assets

 

$

632,423

 

$

607,625

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable

 

$

23,951

 

$

25,693

 

Accrued insurance

 

20,801

 

18,660

 

Accrued compensation and related liabilities

 

60,365

 

60,214

 

Unearned revenue

 

95,022

 

95,711

 

Line of Credit

 

 

24,000

 

Other current liabilities

 

35,774

 

31,378

 

Total Current Liabilities

 

235,913

 

255,656

 

Accrued insurance

 

27,462

 

25,566

 

Accrued pension

 

7,573

 

11,365

 

Long-term accrued liabilities

 

34,977

 

28,597

 

Total Liabilities

 

305,925

 

321,184

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock

 

146,292

 

147,160

 

Retained earnings and other equity

 

180,206

 

139,281

 

Total Stockholders’ Equity

 

326,498

 

286,441

 

Total Liabilities and Stockholders’ Equity

 

$

632,423

 

$

607,625

 

 



 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

 

 

Third Quarter Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

REVENUES

 

 

 

 

 

 

 

 

 

Customer services

 

$

323,929

 

$

305,118

 

$

916,008

 

$

856,962

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

 

Cost of services provided

 

165,097

 

156,064

 

465,640

 

435,467

 

Depreciation and amortization

 

9,337

 

9,076

 

27,825

 

27,043

 

Sales, general and administrative

 

102,396

 

98,909

 

295,651

 

280,787

 

Interest Expense

 

79

 

100

 

449

 

265

 

 

 

276,909

 

264,149

 

789,565

 

743,562

 

INCOME BEFORE TAXES

 

47,020

 

40,969

 

126,443

 

113,400

 

PROVISION FOR INCOME TAXES

 

17,605

 

15,456

 

47,327

 

42,604

 

NET INCOME

 

$

29,415

 

$

25,513

 

$

79,116

 

$

70,796

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER SHARE - BASIC

 

$

0.20

 

$

0.17

 

$

0.54

 

$

0.48

 

NET INCOME PER SHARE - DILUTED

 

$

0.20

 

$

0.17

 

$

0.54

 

$

0.48

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

146,549

 

147,582

 

147,086

 

148,315

 

Weighted average shares outstanding - diluted

 

146,609

 

147,757

 

147,161

 

148,543

 

 



 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

Third Quarter results on:

 

Wednesday, October 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 877-941-9205 domestic;

480-629-9692 international
at least 5 minutes before start time.

 

REPLAY: available through November 2, 2011

Please dial 800-406-7325/303-590-3030, Passcode: 4478118

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