Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS SECOND QUARTER AND SIX MONTHS 2012

FINANCIAL RESULTS

 

ATLANTA, GEORGIA, July 25, 2012: 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, 2012.

 

The Company recorded second quarter revenues of $334.9 million, an increase of 4.5% over the prior year’s second quarter revenue of $320.4 million.  Net income increased 6.7% to $33.1 million or $0.23 per diluted share for the second quarter ended June 30, 2012, compared to $31.1 million or $0.21 per diluted share for the same period in 2011.

 

Rollins’ revenues rose 5.4% for the first six months of 2012 to $624.3 million compared to $592.1 million for the prior year.  Net income for the first six months of 2012 was $56.2 million, or $0.38 per diluted share, compared to net income of $49.7 million, or $0.34 per diluted share for the same period last year.

 

In the second quarter, the Company repurchased 713,781 shares at a weighted average price of $21.06 per share bringing the total number of shares repurchased year-to-date to 781,781 at a weighted average price of $20.93.  In total, 5,298,183 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 to report another solid quarter.  Our revenue growth reported this quarter and for the first six months of this year reflects the contributions from all our brands.  We remain focused on our customer service and sales programs.  Our team’s consistent execution and strong operational initiatives should continue to contribute to a successful 2012.”

 

Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin LLC., HomeTeam Pest Defense, Western Pest Services, Orkin Canada, The Industrial Fumigant Company, Waltham Services LLC., Crane Pest Control and Trutech LLC., the Company provides essential pest control services and protection against termite damage, rodents and insects to more than 2 million customers in the United States, Canada, Mexico, Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe and Africa from more than 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 focus on customer service and sales programs and the Company’s belief that its consistent execution and strong operational initiatives should continue to contribute to a successful 2012.  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, 2011.

 



 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At June 30, (unaudited)

 

2012

 

2011

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

62,060

 

$

25,820

 

Trade accounts receivables, net

 

73,784

 

71,457

 

Financed receivables, net

 

12,822

 

12,068

 

Materials and supplies

 

12,162

 

12,305

 

Deferred income taxes

 

30,477

 

27,628

 

Other current assets

 

19,004

 

20,198

 

Total Current Assets

 

210,309

 

169,476

 

Equipment and property, net

 

76,963

 

74,026

 

Goodwill

 

210,971

 

213,705

 

Customer contracts and other intangible assets

 

137,865

 

144,947

 

Deferred income taxes

 

21,088

 

13,156

 

Financed receivables, long-term

 

12,569

 

11,319

 

Other assets

 

11,009

 

10,503

 

Total Assets

 

$

680,774

 

$

637,132

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable

 

$

29,676

 

$

31,853

 

Accrued insurance

 

22,244

 

20,580

 

Accrued compensation and related liabilities

 

56,234

 

60,951

 

Unearned revenue

 

96,127

 

93,387

 

Line of credit

 

 

10,000

 

Other current liabilities

 

36,459

 

32,478

 

Total Current Liabilities

 

240,740

 

249,249

 

Accrued insurance

 

28,185

 

26,830

 

Accrued pension

 

29,793

 

8,253

 

Long-term accrued liabilities

 

37,749

 

39,617

 

Total Liabilities

 

336,467

 

323,949

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock

 

146,071

 

146,904

 

Retained earnings and other equity

 

198,236

 

166,279

 

Total stockholders’ equity

 

344,307

 

313,183

 

Total Liabilities and Stockholders’ Equity

 

$

680,774

 

$

637,132

 

 



 

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,

 

 

 

2012

 

2011

 

2012

 

2011

 

REVENUES

 

 

 

 

 

 

 

 

 

Customer services

 

$

334,872

 

$

320,436

 

$

624,337

 

$

592,079

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

 

Cost of services provided

 

165,993

 

159,645

 

314,075

 

300,543

 

Depreciation and amortization

 

9,613

 

9,288

 

19,380

 

18,488

 

Sales, general and administrative

 

106,068

 

101,757

 

200,892

 

193,255

 

Interest Expense

 

20

 

178

 

71

 

370

 

 

 

281,694

 

270,868

 

534,418

 

512,656

 

INCOME BEFORE TAXES

 

53,178

 

49,568

 

89,919

 

79,423

 

PROVISION FOR INCOME TAXES

 

20,051

 

18,507

 

33,712

 

29,722

 

NET INCOME

 

$

33,127

 

$

31,061

 

$

56,207

 

$

49,701

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER SHARE - BASIC

 

$

0.23

 

$

0.21

 

$

0.38

 

$

0.34

 

NET INCOME PER SHARE - DILUTED

 

$

0.23

 

$

0.21

 

$

0.38

 

$

0.34

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

146,417

 

147,245

 

146,557

 

147,358

 

Weighted average shares outstanding - diluted

 

146,428

 

147,314

 

146,571

 

147,441

 

 



 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

Second Quarter 2012 results on:

 

Wednesday, July 25, 2012 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 877-941-6009 domestic;

480-629-9819 international
at least 5 minutes before start time.

 

REPLAY: available through August 1, 2012

Please dial 800-406-7325/303-590-3030, Passcode: 4551562

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