Exhibit 99.1

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

 

 

FOR IMMEDIATE RELEASE

 

 

 

ROLLINS, INC. REPORTS FIRST QUARTER 2014

FINANCIAL RESULTS

 

Company posts 32nd consecutive quarter of improved earnings

 

ATLANTA, GEORGIA, April 23, 2014: Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, today reported unaudited financial results for its first quarter ended March 31, 2014. Revenues grew 4.6% to $313.4 million compared to $299.7 million for the first quarter ended March 31, 2013.

 

The Company recorded net income of $25.8 million, an increase of 11.2%, or $0.18 per diluted share for the first quarter ended March 31, 2014 compared to $23.2 million or $0.16 per diluted share for the same period in 2013. On January 28, 2014, Rollins also increased its regular quarterly cash dividend to shareholders 16.7% to $0.105 per share. Also, in the first quarter of 2014, the Company announced it purchased 33,429 shares under its share repurchase program. In total, 4,924,055 additional shares may be purchased under previously approved programs by the Board of Directors.

 

Commenting on the Company's results, Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “We are pleased to report revenue and profit improvements in the first quarter of 2014 compared to first quarter 2013. These results reflect our team’s commitment to the Company’s growth strategies, productivity initiatives, and other programs that are improving operating efficiencies.”

 

"On February 17, 2014, we completed the acquisition of Australian based Allpest, the leading independent pest control provider in Western Australia. This acquisition is a very important milestone for our Company and further establishes our global presence in international pest management. We believe this Australian platform provides our company a meaningful opportunity for longer term growth. We look forward to working with Allpest and their talented employees, while sharing each other’s best practices.”

 

Rollins Inc. is a premier global consumer and commercial services company. Through its wholly owned subsidiaries, Orkin LLC, Orkin Canada, HomeTeam Pest Defense, Western Pest Services, The Industrial Fumigant Company, Waltham Services LLC, Crane Pest Control, Trutech LLC, and Rollins Australia, 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, Mexico, Europe, South America, Central America, the Middle East, the Caribbean, Asia, the Mediterranean, Africa, Mexico and Australia 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, www.allpest.com.au 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 growth strategies, productivity initiatives, and other programs to improve operating efficiencies and the opportunity for longer term growth provided by our Australian acquisition. 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, 2013.

 

 
 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At March 31, (unaudited)  2014  2013
ASSETS          
Cash and cash equivalents  $83,129   $82,479 
Trade accounts receivables, net   75,307    68,194 
Financed receivables, net   11,230    10,898 
Materials and supplies   12,688    11,801 
Deferred income taxes, net   39,563    32,839 
Other current assets   19,087    18,995 
Total Current Assets   241,004    225,206 
Equipment and property, net   92,026    83,295 
Goodwill   235,257    212,280 
Customer contracts and other intangible assets, net   157,014    136,458 
Deferred income taxes, net   4,750    26,582 
Financed receivables, long-term, net   11,246    11,214 
Prepaid Pension   10,253    —   
Other assets   14,111    12,403 
Total Assets  $765,661   $707,438 
           
LIABILITIES          
Accounts payable  $26,581   $23,078 
Accrued insurance, current   26,654    24,929 
Accrued compensation and related liabilities   56,544    50,218 
Unearned revenue   98,461    96,251 
Other current liabilities   42,262    39,382 
Total Current Liabilities   250,502    233,858 
Accrued insurance, less current portion   28,625    31,740 
Accrued pension   458    43,017 
Long-term accrued liabilities   36,310    33,857 
Total Liabilities   315,895    342,472 
           
STOCKHOLDERS’ EQUITY          
Common stock   146,024    146,279 
Retained earnings and other equity   303,742    218,687 
Total stockholders’ equity   449,766    364,966 
Total Liabilities and Stockholders’ Equity  $765,661   $707,438 

 

 

 
 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

   First Quarter Ended
   March 31,
   2014  2013
REVENUES          
Customer services  $313,388   $299,714 
COSTS AND EXPENSES          
Cost of services provided   161,308    155,606 
Depreciation and amortization   10,214    9,894 
Sales, general and administrative   100,832    99,166 
Gain on sales/impairment of assets, net   (248)   (32)
Interest income   (76)   (45)
    272,030    264,589 
INCOME BEFORE INCOME TAXES   41,358    35,125 
PROVISION FOR INCOME TAXES   15,592    11,946 
NET INCOME  $25,766   $23,179 
           
NET INCOME PER SHARE - BASIC  $0.18   $0.16 
NET INCOME PER SHARE - DILUTED   0.18    0.16 
           
Weighted average shares outstanding - basic   145,991    146,238 
Weighted average shares outstanding - diluted   145,991    146,238 

 

 
 

 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

  

Management will hold a conference call to discuss

First Quarter 2014 results on:

 

 

Wednesday, April 23, 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 877-941-0844 domestic;

480-629-9835 international
at least 5 minutes before start time.

 

REPLAY: available through April 30, 2014

Please dial 800-406-7325/303-590-3030, Passcode: 4678054

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