Rollins, Inc. Reports Third Quarter and Nine Months 2011 Financial Results

Oct 26, 2011, 07:30 ET from Rollins, Inc.

ATLANTA, Oct. 26, 2011 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its third quarter ended September 30, 2011.  

The Company recorded third quarter revenues of $323.9 million, an increase of 6.2% over the prior year's third quarter revenue of $305.1 million.  Net income increased 15.3% to $29.4 million or $0.20 per diluted share for the third quarter ended September 30, 2011, compared to $25.5 million or $0.17 per diluted share for the same period in 2010.  

Rollins' revenues rose 6.9% for the first nine months of 2011 to $916.0 million compared to $857.0 million for the prior year.  Net income for the first nine months of 2011 was $79.1 million, or $0.54 per diluted share, compared to net income of $70.8 million, or $0.48 per diluted share for the same period last year.

In the third quarter, the Company repurchased 598,986 shares at a weighted average price of $17.85 per share bringing the total number of shares repurchased year-to-date to 1,388,282 at a weighted average price of $18.63.  In total, 1,149,964 additional shares may be purchased under the share repurchase program.

"Rollins, Inc. had another successful quarter which represents 22 consecutive quarters of record performance," said Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc.  "We are pleased with the solid financial results our Company reported for the third quarter and nine months of this year.  This growth came from all of our business lines and continues to reflect the positive results from the investments we are making.  As a result of these key operational initiatives and our dedicated teammates, we are on track to meet our financial objectives for 2011."    

Mr. Rollins concluded, "We are currently working on our 2012 plans and would expect another positive year for Rollins."  

Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, HomeTeam Pest Defense, Western Pest Services, PCO Services, The Industrial Fumigant Company, Waltham Services, Crane Pest Control, and TruTech, the Company provides essential pest control services and protection against termite damage, rodents and insects to over 2 million customers in the United States, Canada, Europe, Central America, the Caribbean, the Middle East, Asia, the Mediterranean and Africa from over 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 belief that third quarter growth came from all of the Company's business lines and continues to reflect the positive results from the investments the Company is making; the Company's belief that these key operational initiatives and its dedicated teammates result in the Company being on track to meet its financial objectives for 2011; and the Company's expectation that 2012 will be another positive year for the Company.  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, 2010.

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ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At September 30, (unaudited)

2011

2010

ASSETS

Cash and cash equivalents

$                  30,219

$                    20,250

Trade receivables, short-term

71,715

67,552

Financed receivables, short-term

11,668

11,639

Materials and supplies

10,607

11,167

Deferred income taxes

30,575

27,092

Other current assets

17,096

13,161

Total Current Assets

171,880

150,861

Equipment and property, net

76,046

70,782

Goodwill

210,898

200,639

Customer Contracts and Other Intangible assets

140,598

145,532

Deferred income taxes

12,223

19,841

Financed receivables, long-term

11,108

10,416

Other assets

9,670

9,554

   Total Assets

$               632,423

$                  607,625

LIABILITIES

Accounts payable

$                  23,951

$                    25,693

Accrued insurance

20,801

18,660

Accrued compensation and related liabilities

60,365

60,214

Unearned revenue

95,022

95,711

Line of Credit

-

24,000

Other current liabilities

35,774

31,378

Total Current Liabilities

235,913

255,656

Accrued insurance

27,462

25,566

Accrued pension

7,573

11,365

Long-term accrued liabilities

34,977

28,597

Total Liabilities

305,925

321,184

STOCKHOLDERS’ EQUITY

Common stock

146,292

147,160

Retained earnings and other equity

180,206

139,281

Total Stockholders’ Equity

326,498

286,441

Total Liabilities and Stockholders’ Equity

$               632,423

$                  607,625

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,

2011

2010

2011

2010

REVENUES

Customer services

$        323,929

$           305,118

$        916,008

$           856,962

COSTS AND EXPENSES

Cost of services provided

165,097

156,064

465,640

435,467

Depreciation and amortization

9,337

9,076

27,825

27,043

Sales, general and administrative

102,396

98,909

295,651

280,787

Interest Expense

79

100

449

265

276,909

264,149

789,565

743,562

INCOME BEFORE TAXES

47,020

40,969

126,443

113,400

PROVISION FOR INCOME TAXES

17,605

15,456

47,327

42,604

NET INCOME

$           29,415

$             25,513

$           79,116

$             70,796

NET INCOME PER SHARE - BASIC

$               0.20

$                 0.17

$               0.54

$                 0.48

NET INCOME PER SHARE - DILUTED

$               0.20

$                 0.17

$               0.54

$                 0.48

Weighted average shares outstanding - basic

146,549

147,582

147,086

148,315

Weighted average shares outstanding - diluted

146,609

147,757

147,161

148,543

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

CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)


Management will hold a conference call to discuss

Third Quarter results on:


Wednesday, October 26, 2011 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;

480-629-9692 international

at least 5 minutes before start time.


REPLAY: available through November 2, 2011

Please dial 800-406-7325/303-590-3030, Passcode: 4478118

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



SOURCE Rollins, Inc.



RELATED LINKS

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