Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS THIRD QUARTER AND NINE MONTHS 2012

FINANCIAL RESULTS

 

ATLANTA, GEORGIA, October 24, 2012: 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, 2012.

 

The Company recorded third quarter revenues of $340.2 million, an increase of 5.0% over the prior year’s third quarter revenue of $323.9 million.  Net income increased 9.5% to $32.2 million or $0.22 per diluted share for the third quarter ended September 30, 2012, compared to $29.4 million or $0.20 per diluted share for the same period in 2011.

 

Rollins’ revenues rose 5.3% for the first nine months of 2012 to $964.5 million compared to $916.0 million for the prior year.  Net income for the first nine months of 2012 was $88.4 million, or $0.60 per diluted share, compared to net income of $79.1 million, or $0.54 per diluted share for the same period last year.

 

At yesterday’s Board of Directors meeting, the Board of Directors declared a regular quarterly cash dividend on its common stock of $0.08 per share plus a special year-end dividend of $0.12 per share both payable December 10, 2012 to stockholders of record at the close of business November 09, 2012.

 

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “We are very pleased with our financial results for the third quarter and first nine months of fiscal 2012.  Our revenue growth was strong across the Company, which reflects the positive results we are receiving from the investments we have made.  We again improved our profit margins with favorable revenue to profit conversion.”

 

Mr. Rollins, concluded, “We are optimistic about concluding another successful year while gaining market share and delivering value to our customers and shareholders.”

 

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, Central America, South America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe, Africa and Mexico 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 optimism about having another successful year while still gaining market share and delivering value to our customers and shareholders.  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 September 30, (unaudited)

 

2012

 

2011

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

93,713

 

$

30,219

 

Trade accounts receivables, net

 

78,748

 

71,715

 

Financed receivables, net

 

12,396

 

11,668

 

Materials and supplies

 

10,919

 

10,607

 

Deferred income taxes, net

 

30,118

 

30,575

 

Other current assets

 

15,784

 

17,096

 

Total Current Assets

 

241,678

 

171,880

 

Equipment and property, net

 

77,521

 

76,046

 

Goodwill

 

211,373

 

210,898

 

Customer contracts and other intangible assets, net

 

132,850

 

140,598

 

Deferred income taxes

 

18,809

 

12,223

 

Financed receivables, long-term, net

 

12,491

 

11,108

 

Other assets

 

11,307

 

9,670

 

Total Assets

 

$

706,029

 

$

632,423

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable

 

$

24,679

 

$

23,951

 

Accrued insurance, current

 

22,503

 

20,801

 

Accrued compensation and related liabilities

 

62,827

 

60,365

 

Unearned revenue

 

95,727

 

95,022

 

Other current liabilities

 

34,865

 

35,774

 

Total Current Liabilities

 

240,601

 

235,913

 

Accrued insurance, less current portion

 

29,145

 

27,462

 

Accrued pension

 

29,766

 

7,573

 

Long-term accrued liabilities

 

37,857

 

34,977

 

Total Liabilities

 

337,369

 

305,925

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock

 

146,038

 

146,292

 

Retained earnings and other equity

 

222,622

 

180,206

 

Total stockholders’ equity

 

368,660

 

326,498

 

Total Liabilities and Stockholders’ Equity

 

$

706,029

 

$

632,423

 

 



 

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,

 

 

 

2012

 

2011

 

2012

 

2011

 

REVENUES

 

 

 

 

 

 

 

 

 

Customer services

 

$

340,179

 

$

323,929

 

$

964,516

 

$

916,008

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

 

Cost of services provided

 

170,478

 

165,097

 

484,553

 

465,640

 

Depreciation and amortization

 

9,465

 

9,337

 

28,845

 

27,825

 

Sales, general and administrative

 

108,520

 

102,396

 

309,412

 

295,651

 

Interest Expense

 

19

 

79

 

90

 

449

 

 

 

288,482

 

276,909

 

822,900

 

789,565

 

INCOME BEFORE INCOME TAXES

 

51,697

 

47,020

 

141,616

 

126,443

 

PROVISION FOR INCOME TAXES

 

19,486

 

17,605

 

53,198

 

47,327

 

NET INCOME

 

$

32,211

 

$

29,415

 

$

88,418

 

$

79,116

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER SHARE - BASIC

 

$

0.22

 

$

0.20

 

$

0.60

 

$

0.54

 

NET INCOME PER SHARE - DILUTED

 

$

0.22

 

$

0.20

 

$

0.60

 

$

0.54

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

146,059

 

146,549

 

146,390

 

147,086

 

Weighted average shares outstanding - diluted

 

146,061

 

146,609

 

146,400

 

147,161

 

 



 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

Third Quarter 2012 results on:

 

Wednesday, October 24, 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 877-941-8609 domestic;

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

 

REPLAY: available through October 31, 2012

Please dial 800-406-7325/303-590-3030, Passcode: 4568454

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