Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2012

RECORD FINANCIAL RESULTS

 

Company posts 27th consecutive quarter of improved earnings results

 

·                  Revenue increased 6.0% for the quarter and 5.5% for full year

 

·                  Net income up 6.1% for the quarter and 10.5% for the full year

 

·                  Earnings per diluted share rose 6.7% for the quarter to $0.16  from $0.15 and 10.1% to $0.76 from $0.69 for the full year

 

ATLANTA, GEORGIA, January 23, 2013: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its fourth quarter and year ended December 31, 2012.

 

The Company recorded fourth quarter revenues of $306.4 million, an increase of 6.0% over the prior year’s fourth quarter revenue of $289.1 million.  Net income increased 6.1% to $22.9 million or $0.16 per diluted share for the fourth quarter ended December 31, 2012, compared to $21.6 million or $0.15 per diluted share for the same period in 2011.

 

Rollins’ revenues for the full year rose 5.5% to $1.271 billion compared to $1.205 billion for the prior year.  Rollins’ net income for the full year rose 10.5% to $111.3 million, or $0.76 per diluted share, compared to net income of $100.7 million, or $0.69 per diluted share for the same period last year.

 

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “We are pleased to have achieved record revenue growth across the Company for the quarter and full year.  The progress we made in 2012 reflects the momentum we gained in adding new customers while improving customer service and retention.  At the same time we executed across all brands programs to improve our training, and customer communications.”

 

Mr. Rollins, concluded, “We are excited about our Company’s opportunities for 2013.  Our culture of continuous improvement has generated aggressive plans and new programs that should provide another successful year.  We are very proud of our people who made 2012 successes possible and who will likewise be working diligently to achieve this year’s objectives.”

 



 

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 excitement about the Company’ opportunities for 2013; our belief that our plans and programs should provide another successful year; and our belief that our people will be working diligently to achieve this year’s objectives. 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 December 31, (unaudited)

 

2012

 

2011

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

65,082

 

$

46,275

 

Trade accounts receivables, net

 

68,920

 

61,687

 

Financed receivables, net

 

11,823

 

11,659

 

Materials and supplies

 

11,847

 

11,125

 

Deferred income taxes, net

 

33,338

 

31,272

 

Other current assets

 

14,982

 

13,804

 

Total Current Assets

 

205,992

 

175,822

 

Equipment and property, net

 

82,263

 

76,858

 

Goodwill

 

212,477

 

211,019

 

Customer contracts and other intangible assets, net

 

141,789

 

137,526

 

Deferred income taxes

 

26,841

 

22,604

 

Financed receivables, long-term, net

 

11,681

 

11,298

 

Other assets

 

11,463

 

10,523

 

Total Assets

 

$

692,506

 

$

645,650

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable

 

$

24,854

 

$

22,584

 

Accrued insurance, current

 

24,164

 

21,844

 

Accrued compensation and related liabilities

 

60,042

 

61,137

 

Unearned revenue

 

87,753

 

85,636

 

Other current liabilities

 

31,603

 

34,650

 

Total Current Liabilities

 

228,416

 

225,851

 

Accrued insurance, less current portion

 

31,283

 

27,516

 

Accrued pension

 

43,271

 

31,867

 

Long-term accrued liabilities

 

34,580

 

36,419

 

Total Liabilities

 

337,550

 

321,653

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock

 

146,015

 

146,251

 

Retained earnings and other equity

 

208,941

 

177,746

 

Total stockholders’ equity

 

354,956

 

323,997

 

Total Liabilities and Stockholders’ Equity

 

$

692,506

 

$

 

645,650

 

 



 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

 

 

Fourth Quarter Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2012

 

2011

 

2012

 

2011

 

REVENUES

 

 

 

 

 

 

 

 

 

Customer services

 

$

306,393

 

$

289,056

 

$

1,270,909

 

$

1,205,064

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

 

Cost of services provided

 

163,025

 

151,202

 

647,578

 

616,842

 

Depreciation and amortization

 

9,810

 

9,678

 

38,655

 

37,503

 

Sales, general and administrative

 

97,608

 

93,464

 

407,020

 

389,115

 

Pension Settlement

 

1,000

 

 

1,000

 

 

Interest Expense

 

(76

)

59

 

14

 

508

 

 

 

271,367

 

254,403

 

1,094,267

 

1,043,968

 

INCOME BEFORE INCOME TAXES

 

35,026

 

34,653

 

176,642

 

161,096

 

PROVISION FOR INCOME TAXES

 

12,112

 

13,058

 

65,310

 

60,385

 

NET INCOME

 

$

22,914

 

$

21,595

 

$

111,332

 

$

100,711

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER SHARE - BASIC

 

$

0.16

 

$

0.15

 

$

0.76

 

$

0.69

 

NET INCOME PER SHARE - DILUTED

 

$

0.16

 

$

0.15

 

$

0.76

 

$

0.69

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

146,028

 

146,277

 

146,299

 

146,882

 

Weighted average shares outstanding - diluted

 

146,029

 

146,309

 

146,306

 

146,946

 

 



 

CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

Fourth Quarter and Full-Year 2012 results on:

 

Wednesday, January 23, 2013 at:

  9:00 a.m. Eastern

 8:00 a.m. Central

     7:00 a.m. Mountain

 6:00 a.m. Pacific

 

TO PARTICIPATE:

Please dial 800-762-8779 domestic;

480-629-9645 international
at least 5 minutes before start time.

 

REPLAY: available through January 30, 2013

Please dial 800-406-7325/303-590-3030, Passcode: 4588006

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