Rollins, Inc. Reports Second Quarter And Six Months 2012 Financial Results

Jul 25, 2012, 07:30 ET from Rollins, Inc.

ATLANTA, July 25, 2012 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its second quarter ended June 30, 2012. 

The Company recorded second quarter revenues of $334.9 million, an increase of 4.5% over the prior year's second quarter revenue of $320.4 million.  Net income increased 6.7% to $33.1 million or $0.23 per diluted share for the second quarter ended June 30, 2012, compared to $31.1 million or $0.21 per diluted share for the same period in 2011. 

Rollins' revenues rose 5.4% for the first six months of 2012 to $624.3 million compared to $592.1 million for the prior year.  Net income for the first six months of 2012 was $56.2 million, or $0.38 per diluted share, compared to net income of $49.7 million, or $0.34 per diluted share for the same period last year.

In the second quarter, the Company repurchased 713,781 shares at a weighted average price of $21.06 per share bringing the total number of shares repurchased year-to-date to 781,781 at a weighted average price of $20.93.  In total, 5,298,183 additional shares may be purchased under the share repurchase program.

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "We are pleased to report another solid quarter.  Our revenue growth reported this quarter and for the first six months of this year reflects the contributions from all our brands.  We remain focused on our customer service and sales programs.  Our team's consistent execution and strong operational initiatives should continue to contribute to a successful 2012."

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, Mexico, Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe and Africa 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 the Company's focus on customer service and sales programs and the Company's belief that its consistent execution and strong operational initiatives should continue to contribute to a successful 2012.  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, 2011.

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At June 30, (unaudited)

2012

2011

ASSETS

Cash and cash equivalents

$                  62,060

$                    25,820

Trade accounts receivables, net

73,784

71,457

Financed receivables, net 

12,822

12,068

Materials and supplies

12,162

12,305

Deferred income taxes

30,477

27,628

Other current assets

19,004

20,198

Total Current Assets

210,309

169,476

Equipment and property, net

76,963

74,026

Goodwill 

210,971

213,705

Customer contracts and other intangible assets

137,865

144,947

Deferred income taxes

21,088

13,156

Financed receivables, long-term

12,569

11,319

Other assets

11,009

10,503

    Total Assets

$               680,774

$                  637,132

LIABILITIES

Accounts payable

$                  29,676

$                    31,853

Accrued insurance

22,244

20,580

Accrued compensation and related liabilities

56,234

60,951

Unearned revenue

96,127

93,387

Line of credit

-

10,000

Other current liabilities

36,459

32,478

Total Current Liabilities

240,740

249,249

Accrued insurance

28,185

26,830

Accrued pension

29,793

8,253

Long-term accrued liabilities

37,749

39,617

Total Liabilities

336,467

323,949

STOCKHOLDERS' EQUITY

Common stock

146,071

146,904

Retained earnings and other equity

198,236

166,279

Total stockholders' equity

344,307

313,183

Total Liabilities and Stockholders' Equity

$               680,774

$                  637,132

 

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,

2012

2011

2012

2011

REVENUES

Customer services

$    334,872

$      320,436

$    624,337

$      592,079

COSTS AND EXPENSES

Cost of services provided

165,993

159,645

314,075

300,543

Depreciation and amortization

9,613

9,288

19,380

18,488

Sales, general and administrative

106,068

101,757

200,892

193,255

Interest Expense

20

178

71

370

281,694

270,868

534,418

512,656

INCOME BEFORE TAXES

53,178

49,568

89,919

79,423

PROVISION FOR INCOME TAXES

20,051

18,507

33,712

29,722

NET INCOME

$      33,127

$       31,061

$      56,207

$       49,701

NET INCOME PER SHARE - BASIC

$          0.23

$           0.21

$          0.38

$           0.34

NET INCOME PER SHARE - DILUTED

$          0.23

$           0.21

$          0.38

$           0.34

Weighted average shares outstanding - basic

146,417

147,245

146,557

147,358

Weighted average shares outstanding - diluted

146,428

147,314

146,571

147,441

 

CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)

Management will hold a conference call to discuss

Second Quarter 2012 results on:


Wednesday, July 25, 2012 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 877-941-6009 domestic;

480-629-9819 international
at least 5 minutes before start time.

REPLAY: available through August 1, 2012

Please dial 800-406-7325/303-590-3030, Passcode: 4551562

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

For Further Information Contact:
Harry J. Cynkus (404) 888-2922

 

SOURCE Rollins, Inc.



RELATED LINKS

http://www.rollins.com