Exhibit 99.1

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

 

 

ROLLINS, INC. REPORTS RECORD THIRD QUARTER AND NINE MONTHS 2013 FINANCIAL RESULTS

Company posts 30th consecutive quarter of improved earnings results

 

ATLANTA, GEORGIA, October 23, 2013: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its third quarter and nine months ended September 30, 2013.

 

The Company recorded third quarter revenues of $362.2 million, an increase of 6.5% over the prior year’s third quarter revenue of $340.2 million. Net income increased 12.4% to $36.2 million or $0.25 per diluted share for the third quarter ended September 30, 2013, compared to $32.2 million or $0.22 per diluted share for the same period in 2012. These were the strongest revenue and net income percentage improvements for the year.

 

Rollins’ revenues rose 5.0% for the first nine months of 2013 to $1.013 billion compared to $964.5 million for the prior year. Net income for the first nine months of 2013 was $95.4 million, or $0.65 per diluted share, compared to net income of $88.4 million, or $0.60 per diluted share for the same period last year.

 

In the third quarter, the Company repurchased 168,110 shares under its share repurchase program and 340,699 shares have been repurchased year-to-date. In total, 4,957,484 additional shares may be purchased under the share repurchase program.

 

At yesterday’s Board of Directors meeting, the Board of Directors declared a regular quarterly cash dividend on its common stock of $0.09 per share plus a special year-end dividend of $0.09 per share both payable December 10, 2013 to stockholders of record at the close of business November 8, 2013.

 

“Rollins, Inc. had another quarter of improved revenue and earnings,” said Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. “We are very pleased with the solid financial results reported for the third quarter and nine months of 2013 for our Company. Revenue growth was provided across all our business lines and reflects the benefits of our new marketing and sales programs implemented this year.”

 

Mr. Rollins, concluded, “We are on track to deliver another successful year. Our focus continues to be on effective execution of our business initiatives to drive our revenue and profit, and provide best-in- class service for our customers while increasing shareholder value.”

 

 
 

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 revenue growth results from the focused efforts of its new marketing and sales programs, the Company’s belief that it is on track to deliver another successful year, and the Company’s plans to continue to focus on the effective execution of its business initiatives to drive its revenue and provide best-in-class service for its customers while increasing shareholder value. 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 September 30, (unaudited)  2013  2012
ASSETS          
Cash and cash equivalents  $116,734   $93,713 
Trade accounts receivables, net   80,902    78,748 
Financed receivables, net   12,740    12,396 
Materials and supplies   11,836    10,919 
Deferred income taxes, net   34,665    30,118 
Other current assets   19,804    15,784 
Total Current Assets   276,681    241,678 
Equipment and property, net   85,348    77,521 
Goodwill   212,201    211,373 
Customer contracts and other intangible assets, net   134,763    132,850 
Deferred income taxes, net   25,903    18,809 
Financed receivables, long-term, net   12,722    12,491 
Other assets   13,246    11,307 
    Total Assets  $760,864   $706,029 
           
LIABILITIES          
Accounts payable  $26,106   $24,679 
Accrued insurance, current   26,551    22,503 
Accrued compensation and related liabilities   63,695    62,827 
Unearned revenue   100,114    95,727 
Other current liabilities   32,093    34,865 
Total Current Liabilities   248,559    240,601 
Accrued insurance, less current portion   28,094    29,145 
Accrued pension   41,509    29,766 
Long-term accrued liabilities   35,410    37,857 
Total Liabilities   353,572    337,369 
           
STOCKHOLDERS’ EQUITY          
Common stock   145,879    146,038 
Retained earnings and other equity   261,413    222,622 
Total stockholders’ equity   407,292    368,660 
Total Liabilities and Stockholders’ Equity  $760,864   $706,029 

  

 
 

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,
   2013  2012  2013  2012
REVENUES                    
Customer services  $362,155   $340,179   $1,012,667   $964,516 
COSTS AND EXPENSES                    
Cost of services provided   181,135    170,478    511,102    484,553 
Depreciation and amortization   10,076    9,465    29,738    28,845 
Sales, general and administrative   113,028    108,520    321,680    309,412 
Interest (income)/expense   (101)   19    (273)   90 
    304,138    288,482    862,247    822,900 
INCOME BEFORE INCOME TAXES   58,017    51,697    150,420    141,616 
PROVISION FOR INCOME TAXES   21,817    19,486    55,047    53,198 
NET INCOME  $36,200   $32,211   $95,373   $88,418 
                     
NET INCOME PER SHARE - BASIC  $0.25   $0.22   $0.65   $0.60 
NET INCOME PER SHARE - DILUTED   0.25    0.22   $0.65   $0.60 
                     
Weighted average shares outstanding - basic   146,007    146,059    146,151    146,390 
Weighted average shares outstanding - diluted   146,007    146,061    146,151    146,400 

 

 

 
 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

  

Management will hold a conference call to discuss

Third Quarter 2013 results on:

Wednesday, October 23, 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 866-225-8754 domestic;

480-629-9818 international
at least 5 minutes before start time.

 

REPLAY: available through October 30, 2013

Please dial 800-406-7325/303-590-3030, Passcode: 4643774

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