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Rollins, Inc. Reports Third Quarter and Nine Months 2010 Financial Results

ATLANTA, Oct. 27 /PRNewswire-FirstCall/ -- Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for its third quarter ended September 30, 2010. The Company recorded third quarter revenues of $305.1 million, an increase of 6.4% over the prior year's third quarter revenue of $286.9 million. Net income increased 12.2% to $25.5 million or $0.26 per diluted share for the third quarter ended September 30, 2010, compared to $22.7 million or $0.23 per diluted share for the same period in 2009.

Revenues for the first nine months of 2010 increased 5.2% to $857.0 million compared to $814.4 million for the first nine months of 2009. Rollins' net income for the first nine months of 2010 rose 10.6% to $70.8 million, or $0.71 per diluted share, compared to net income of $64.0 million, or $0.64 per diluted share for the same period in 2009.

Rollins' balance sheet remains strong with total assets of $607.6 million and stockholders' equity increasing to $286.4 million.

In the third quarter, the Company announced that it repurchased 372,499 shares of common stock at a weighted average price of $20.93 per share during the third quarter bringing the total number of shares repurchased year-to-date to 1,259,427 at a weighted average price of $20.92. In total, 1,692,164 additional shares may be purchased under the share repurchase program.

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "This quarter reflects a record performance in revenue and profits. Our revenue growth reflects contributions from all of our businesses. As you would expect, we are pleased with the results from our operational initiatives and their impact on customer and employee retention, as well as the bottom line."

Mr. Rollins concluded, "Our progress in the first nine months of this year has been solid and we are on target to meet our business objectives for the year. Our focus is squarely on providing a good job for our employees, great service to our customers and solid earnings improvement for our shareholders. We remain confident in our strategy and action plans, and are working hard to grow the business both organically and through strategic acquisitions."

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, and Crane Pest Control, 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, Mexico, Europe, Central America, the Caribbean, the Middle East, Asia and the Mediterranean 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 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 the Company is on target to meet its business objectives for the year; the Company is focused on providing a good job for its employees, great service to its customers, and solid earnings improvement for its shareholders; the Company's confidence in its strategy and action plans; and the Company's work to grow its business both organically and through strategic acquisitions. 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, 2009.

ROLLINS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At September 30, (unaudited)

2010


2009

ASSETS




Cash and cash equivalents

$ 20,250


$ 26,221

Trade receivables, short-term

76,973


70,750

Accounts Receivable - Other

2,218


2,338

Materials and supplies

11,167


10,341

Deferred income taxes

27,092


17,628

Other current assets

13,161


14,143

Total Current Assets

150,861


141,421





Trade receivables, long-term

10,416


9,599

Equipment and property, net

70,782


77,223

Goodwill

200,639


189,355

Customer Contracts

119,896


120,510

Other Intangible Assets

25,636


22,742

Deferred income taxes

19,841


16,669

Other assets

9,554


8,008

Total Assets

$ 607,625


$ 585,527





LIABILITIES




Accounts payable

$ 25,693


$ 16,616

Accrued insurance

18,660


15,605

Accrued compensation and related liabilities

60,214


58,208

Unearned revenue

95,711


95,361

Line of Credit

24,000


45,000

Other current liabilities

31,378


29,873

Total Current Liabilities

255,656


260,663





Accrued insurance

25,566


27,687

Accrued pension

11,365


14,992

Long-term accrued liabilities

28,597


28,957

Total Liabilities

321,184


332,299





STOCKHOLDERS' EQUITY




Common stock

98,107


99,040

Retained earnings and other equity

188,334


154,188

Total Stockholders' Equity

286,441


253,228

Total Liabilities and Stockholders' Equity

$ 607,625


$ 585,527











ROLLINS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)










Third Quarter Ended


Nine Months Ended


September 30,


September 30,


2010


2009


2010


2009

REVENUES








Customer services

$ 305,118


$ 286,852


$ 856,962


$ 814,391

COSTS AND EXPENSES








Cost of services provided

156,064


147,436


435,467


414,440

Depreciation and amortization

9,076


9,321


27,043


28,124

Sales, general and administrative

98,909


93,233


280,782


267,027

Loss on sale of assets

-


30


5


7

Interest expense, net

100


159


265


846


264,149


250,179


743,562


710,444

INCOME BEFORE TAXES

40,969


36,673


113,400


103,947

PROVISION FOR INCOME TAXES

15,456


13,940


42,604


39,924

NET INCOME

$ 25,513


$ 22,733


$ 70,796


$ 64,023









NET INCOME PER SHARE - BASIC

$ 0.26


$ 0.23


$ 0.72


$ 0.64

NET INCOME PER SHARE - DILUTED

$ 0.26


$ 0.23


$ 0.71


$ 0.64









Weighted average shares outstanding - basic

98,388


99,125


98,876


99,615

Weighted average shares outstanding - diluted

98,505


99,428


99,029


99,924











CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)


Management will hold a conference call to discuss

Third Quarter results on:


Wednesday, October 27, 2010 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 877-941-7133domestic;

480-629-9821 international

at least 5 minutes before start time.


REPLAY: available through November 4, 2010

Please dial 800-406-7325/303-590-3030, Passcode:4372650

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.

Oct 27, 2010

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