Exhibit 99.1

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

 

 

 

FOR IMMEDIATE RELEASE

 

 

 

ROLLINS, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2013
RECORD FINANCIAL RESULTS

Company posts 31st consecutive quarter of improved earnings results

 

 

ATLANTA, GEORGIA, January 29, 2014: Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, today reported strong unaudited financial results for its fourth quarter and year ended December 31, 2013.

 

The Company recorded fourth quarter revenues of $324.7 million, an increase of 6.0% over the prior year’s fourth quarter revenue of $306.4 million. Net income increased 22.0% to $28.0 million or $0.19 per diluted share for the fourth quarter ended December 31, 2013, compared to $22.9 million or $0.16 per diluted share for the same period in 2012.

 

Rollins’ revenues for the full year rose 5.2% to $1.337 billion compared to $1.271 billion for the prior year. Rollins’ net income for the full year rose 10.8% to $123.3 million, or $0.84 per diluted share, compared to net income of $111.3 million, or $0.76 per diluted share for the same period last year.

 

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “Once again, the Rollins group of leading pest control companies has achieved our major financial objectives for 2013. These results reflect the execution of our strategic programs that were designed to accelerate our sales, while improving productivity and profit margins.”

 

Mr. Rollins, concluded, “We are thankful and very proud of our people who made 2013 successes possible and who now are clearly focused on achieving our Company’s 2014 objectives.”

 

 
 

Rollins Inc. is a premier global 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 our focus on achieving the Company’s 2014 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, 2012.

 

 
 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At December 31, (unaudited)  2013  2012
ASSETS          
Cash and cash equivalents  $118,216   $65,082 
Trade accounts receivables, net   72,849    68,920 
Financed receivables, net   12,220    11,823 
Materials and supplies   12,251    11,847 
Deferred income taxes, net   39,518    33,338 
Other current assets   19,388    14,982 
Total Current Assets   274,442    205,992 
Equipment and property, net   87,215    82,263 
Goodwill   211,847    212,477 
Customer contracts and other intangible assets, net   128,569    141,789 
Deferred income taxes, net   4,544    26,841 
Financed receivables, long-term, net   11,608    11,681 
Prepaid Pension   7,113    —   
Other assets   13,879    11,463 
    Total Assets  $739,217   $692,506 
           
LIABILITIES          
Accounts payable  $23,194   $24,854 
Accrued insurance, current   25,631    24,164 
Accrued compensation and related liabilities   66,175    60,042 
Unearned revenue   91,014    87,753 
Other current liabilities   29,778    31,603 
Total Current Liabilities   235,792    228,416 
Accrued insurance, less current portion   28,245    31,283 
Accrued pension   691    43,271 
Long-term accrued liabilities   36,234    34,580 
Total Liabilities   300,962    337,550 
           
STOCKHOLDERS’ EQUITY          
Common stock   145,864    146,015 
Retained earnings and other equity   292,391    208,941 
Total stockholders’ equity   438,255    354,956 
Total Liabilities and Stockholders’ Equity  $739,217   $692,506 

 

 
 

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,
   2013  2012  2013  2012
REVENUES                    
Customer services  $324,707   $306,393   $1,337,374   $1,270,909 
COSTS AND EXPENSES                    
Cost of services provided   167,357    163,025    678,459    647,578 
Depreciation and amortization   9,833    9,810    39,571    38,655 
Sales, general and administrative   106,362    98,040    428,288    407,488 
(Gain)/loss on sales/impairment of assets, net   81    (432)   (165)   (468)
Pension settlement loss   —      1,000    —      1,000 
Interest (income)/expense   (112)   (76)   (385)   14 
    283,521    271,367    1,145,768    1,094,267 
INCOME BEFORE INCOME TAXES   41,186    35,026    191,606    176,642 
PROVISION FOR INCOME TAXES   13,229    12,112    68,276    65,310 
NET INCOME  $27,957   $22,914   $123,330   $111,332 
                     
NET INCOME PER SHARE - BASIC  $0.19   $0.16   $0.84   $0.76 
NET INCOME PER SHARE - DILUTED   0.19    0.16   $0.84   $0.76 
                     
Weighted average shares outstanding - basic   145,872    146,028    146,081    146,299 
Weighted average shares outstanding - diluted   145,872    146,029    146,081    146,306 

 

 
 

 

 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

 

Management will hold a conference call to discuss

Fourth Quarter and Full-Year 2013 results on:

                                                                                                

 

Wednesday, January 29, 2014 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 877-941-9205 domestic;

480-629-9771 international
at least 5 minutes before start time.

 

REPLAY: available through February 5, 2014

Please dial 800-406-7325/303-590-3030, Passcode: 4660653

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