Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS SECOND QUARTER AND SIX MONTHS 2013

                FINANCIAL RESULTS

 

Company posts 29th consecutive quarter of improved earnings results

 

ATLANTA, GEORGIA, July 24, 2013: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its second quarter and six months ended June 30, 2013.

 

The Company recorded second quarter revenues of $350.8 million, an increase of 4.8%   compared to $334.9 million in the prior year’s second quarter.  Net income increased 8.7% to $36.0 million or $0.25 per diluted share for the second quarter ended June 30, 2013, compared to $33.1million or $0.23 per diluted share for the same period in 2012.

 

Rollins’ revenues rose 4.2% for the first six months of 2013 to $650.5 million compared to $624.3 million for the prior year.  Net income for the first six months of 2013 was $59.2 million, or $0.40 per diluted share, compared to net income of $56.2 million, or $0.38 per diluted share for the same period last year.

 

In the second quarter, the Company repurchased 172,589 shares at a weighted average price of $24.41 per share.  In total, 5,125,594 additional shares may be purchased under the share repurchase program.

 

Commenting on the Company’s results, Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. said, “We are very pleased with the solid financial results our Company reported for the second quarter.  We are particularly pleased about the growth we experienced in revenues, which accelerated over our first quarter.  This improvement reflects the positive impact of our new marketing and sales programs.”

 

Mr. Rollins, concluded, “Our progress in the first six months of this year has been encouraging.  We are confident that as we continue to execute our plans that we will achieve our goals for the year relative to growth and improving profitability.”

 

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 regarding the Company’s belief that its improved operating results reflect the positive impact of the Company’s new marketing and sales programs, and the Company’s confidence that it will continue to execute its plan and will achieve its goals for the year relative to growth and improving profitability. 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, 2012.

 



 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At June 30, (unaudited)

 

2013

 

2012

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

91,597

 

$

62,060

 

Trade accounts receivables, net

 

79,015

 

73,784

 

Financed receivables, net

 

12,443

 

12,822

 

Materials and supplies

 

12,117

 

12,162

 

Deferred income taxes, net

 

34,299

 

30,477

 

Other current assets

 

28,321

 

19,004

 

Total Current Assets

 

257,792

 

210,309

 

Equipment and property, net

 

84,470

 

76,963

 

Goodwill

 

212,004

 

210,971

 

Customer contracts and other intangible assets, net

 

131,122

 

137,865

 

Deferred income taxes, net

 

26,245

 

21,088

 

Financed receivables, long-term, net

 

12,834

 

12,569

 

Other assets

 

12,602

 

11,009

 

Total Assets

 

$

737,069

 

$

680,774

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable

 

$

30,724

 

$

29,676

 

Accrued insurance, current

 

26,392

 

22,244

 

Accrued compensation and related liabilities

 

57,088

 

56,234

 

Unearned revenue

 

100,057

 

96,127

 

Other current liabilities

 

32,805

 

36,459

 

Total Current Liabilities

 

247,066

 

240,740

 

Accrued insurance, less current portion

 

28,575

 

28,185

 

Accrued pension

 

42,263

 

29,793

 

Long-term accrued liabilities

 

34,358

 

37,749

 

Total Liabilities

 

352,262

 

336,467

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock

 

146,078

 

146,071

 

Retained earnings and other equity

 

238,729

 

198,236

 

Total stockholders’ equity

 

384,807

 

344,307

 

Total Liabilities and Stockholders’ Equity

 

$

737,069

 

$

680,774

 

 



 

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,

 

 

 

2013

 

2012

 

2013

 

2012

 

REVENUES

 

 

 

 

 

 

 

 

 

Customer services

 

$

350,798

 

$

334,872

 

$

650,512

 

$

624,337

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

 

Cost of services provided

 

174,361

 

165,993

 

329,967

 

314,075

 

Depreciation and amortization

 

9,768

 

9,613

 

19,662

 

19,380

 

Sales, general and administrative

 

109,518

 

106,068

 

208,652

 

200,892

 

Interest (income)/expense

 

(127

)

20

 

(172

)

71

 

 

 

293,520

 

281,694

 

558,109

 

534,418

 

INCOME BEFORE INCOME TAXES

 

57,278

 

53,178

 

92,403

 

89,919

 

PROVISION FOR INCOME TAXES

 

21,284

 

20,051

 

33,230

 

33,712

 

NET INCOME

 

$

35,994

 

$

33,127

 

$

59,173

 

$

56,207

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER SHARE - BASIC

 

$

0.25

 

$

0.23

 

$

0.40

 

$

0.38

 

NET INCOME PER SHARE - DILUTED

 

0.25

 

0.23

 

$

0.40

 

$

0.38

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

146,210

 

146,417

 

146,224

 

146,557

 

Weighted average shares outstanding - diluted

 

146,210

 

146,428

 

146,224

 

146,571

 

 



 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

Second Quarter 2013 results on:

 

Wednesday, July 24, 2013 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 July 31, 2013

Please dial 800-406-7325/303-590-3030, Passcode: 4628395

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