Rollins, Inc. Reports First Quarter 2013 Financial Results
Company posts 28th consecutive quarter of improved earnings results
ATLANTA, April 24, 2013 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for its first quarter ended March 31, 2013. Revenues grew 3.5% to $299.7 million compared to $289.5 million for the first quarter ended March 31, 2012.
The Company recorded net income of $23.2 million or $0.16 per diluted share for the first quarter ended March 31, 2013 compared to $23.1 million or $0.16 per diluted share for the same period in 2012. On January 22, 2013, Rollins also increased its regular quarterly cash dividend to shareholders 12.5% to $0.09 per share.
Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "Our residential and commercial pest control sales start accelerating as the weather warms and pest activity increases. In this regard, the first quarter of 2013 was disappointing, as it was the coldest with the greatest snow fall, in decades. We were pleased to be able to report an increase in revenue however. This was particularly gratifying having come off of a record first quarter in 2012 when the weather was the warmest in over a century. Frankly, this was the most dramatic year-to-year weather reversal that we've ever experienced. Profits were negatively impacted from being staffed for the anticipated revenue the first quarter. We did maintain our record of profit increases with a modest improvement over 2012."
Mr. Rollins concluded, "Spring has finally sprung and we are very excited about the opportunities we have for each of our businesses through the balance of the year. We are well positioned to achieve solid revenue growth with improved earnings and strong cash flows. Thankfully, the bugs always come back."
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 that we are excited about the opportunities we have for each of our business through the balance of the year, and our belief that we are well positioned to achieve solid revenue growth with improved earnings and strong cash flow. 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 March 31, (unaudited) |
2013 |
2012 |
|
| ASSETS |
|||
| Cash and cash equivalents |
$ 82,479 |
$ 59,684 |
|
| Trade accounts receivables, net |
68,194 |
63,790 |
|
| Financed receivables, net |
10,898 |
11,386 |
|
| Materials and supplies |
11,801 |
10,874 |
|
| Deferred income taxes, net |
32,839 |
29,718 |
|
| Other current assets |
18,995 |
15,123 |
|
| Total Current Assets |
225,206 |
190,575 |
|
| Equipment and property, net |
83,295 |
77,146 |
|
| Goodwill |
212,280 |
211,237 |
|
| Customer contracts and other intangible assets, net |
136,458 |
139,580 |
|
| Deferred income taxes |
26,582 |
21,775 |
|
| Financed receivables, long-term, net |
11,214 |
11,441 |
|
| Other assets |
12,403 |
11,052 |
|
| Total Assets |
$ 707,438 |
$ 662,806 |
|
| LIABILITIES |
|||
| Accounts payable |
$ 23,078 |
$ 19,214 |
|
| Accrued insurance, current |
24,929 |
20,430 |
|
| Accrued compensation and related liabilities |
50,218 |
52,592 |
|
| Unearned revenue |
96,251 |
92,778 |
|
| Other current liabilities |
39,382 |
43,569 |
|
| Total Current Liabilities |
233,858 |
228,583 |
|
| Accrued insurance, less current portion |
31,740 |
30,203 |
|
| Accrued pension |
43,017 |
29,850 |
|
| Long-term accrued liabilities |
33,857 |
37,915 |
|
| Total Liabilities |
342,472 |
326,551 |
|
| STOCKHOLDERS' EQUITY |
|||
| Common stock |
146,279 |
146,803 |
|
| Retained earnings and other equity |
218,687 |
189,452 |
|
| Total stockholders' equity |
364,966 |
336,255 |
|
| Total Liabilities and Stockholders' Equity |
$ 707,438 |
$ 662,806 |
|
| ROLLINS, INC. AND SUBSIDIARIES |
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| CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|||
| (in thousands except per share data) |
|||
| (unaudited) |
|||
| First Quarter Ended |
|||
| March 31, |
|||
| 2013 |
2012 |
||
| REVENUES |
|||
| Customer services |
$ 299,714 |
$ 289,465 |
|
| COSTS AND EXPENSES |
|||
| Cost of services provided |
155,606 |
148,082 |
|
| Depreciation and amortization |
9,894 |
9,767 |
|
| Sales, general and administrative |
99,134 |
94,824 |
|
| Interest (income)/expense |
(45) |
51 |
|
| 264,589 |
252,724 |
||
| INCOME BEFORE INCOME TAXES |
35,125 |
36,741 |
|
| PROVISION FOR INCOME TAXES |
11,946 |
13,661 |
|
| NET INCOME |
$ 23,179 |
$ 23,080 |
|
| NET INCOME PER SHARE - BASIC |
$ 0.16 |
$ 0.16 |
|
| NET INCOME PER SHARE - DILUTED |
0.16 |
0.16 |
|
| Weighted average shares outstanding - basic |
146,238 |
146,697 |
|
| Weighted average shares outstanding - diluted |
146,238 |
146,714 |
|
CONFERENCE CALL ANNOUNCEMENT
Rollins, Inc.
(NYSE: ROL)
Management will hold a conference call to discuss
First Quarter 2013 results on:
Wednesday, April 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 800-762-8779 domestic;
480-629-9645 international
at least 5 minutes before start time.
REPLAY: available through May 1, 2013
Please dial 800-406-7325/303-590-3030, Passcode: 4612026
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 [email protected]
For Further Information Contact
Harry J. Cynkus (404) 888-2922
SOURCE Rollins, Inc.
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