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Rollins, Inc. Reports Second Quarter and Six Month 2011 Financial Results

ATLANTA, July 27, 2011 /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, 2011.

The Company recorded second quarter revenues of $320.4 million, an increase of 7.2% over the prior year's second quarter revenue of $298.8 million. Net income increased 12.1% to $31.1 million or $0.21 per diluted share for the second quarter ended June 30, 2011, compared to $27.7 million or $0.19 per diluted share for the same period in 2010.

Rollins' revenues rose 7.3% for the first six months of 2011 to $592.1 million compared to $551.8 million for the prior year. Net income for the first six months of 2011 was $49.7 million, or $0.34 per diluted share, compared to net income of $45.3 million, or $0.30 per diluted share for the same period last year.

In the second quarter, the Company repurchased 533,012 shares at a weighted average price of $19.37 per share bringing the total number of shares repurchased year-to-date to 789,296 at a weighted average price of $19.22. In total, 1,748,950 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 with the strong financial results our Company reported for the second quarter and first six months of this year. The contributions made to our business across all our brands position us to achieve our business objectives for 2011 and beyond. Furthermore, we are seeing the benefits of the organizational changes made this year involving John Wilson heading Orkin USA, and Bob Wanzer leading the Rollins Independent Brands."

Mr. Rollins concluded, "We continue to make investments in our company and are confident that these strategies and action plans will enable us to continue to improve our margins and market share and grow at a faster pace than our industry."

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 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, 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 the contributions made to our business across all of our brands position us to achieve our business objectives for 2011 and beyond and our belief the Company's strategies and action plans with enable the Company to continue to improve its margins and market share and grow at a faster pace than the Company's industry. 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 June 30, (unaudited)

2011


2010

ASSETS




Cash and cash equivalents

$ 25,820


$ 19,286

Trade receivables, short-term

83,525


75,115

Materials and supplies

12,305


11,122

Deferred income taxes

27,628


26,190

Other current assets

20,198


14,597

Total Current Assets

169,476


146,310

Equipment and property, net

74,026


71,260

Goodwill

213,705


189,668

Customer Contracts and Other Intangible assets

144,947


138,390

Deferred income taxes

13,156


17,332

Trade receivables, long-term

11,319


10,578

Other assets

10,503


8,869

Total Assets

$ 637,132


$ 582,407





LIABILITIES




Accounts payable

$ 31,853


$ 17,599

Accrued insurance

20,580


15,848

Accrued compensation and related liabilities

60,951


55,966

Unearned revenue

93,387


93,450

Line of Credit

10,000


25,000

Other current liabilities

32,478


29,607

Total Current Liabilities

249,249


237,470

Accrued insurance

26,830


27,850

Accrued pension

8,253


13,919

Long-term accrued liabilities

39,617


27,598

Total Liabilities

323,949


306,837





STOCKHOLDERS' EQUITY




Common stock

146,904


148,227

Retained earnings and other equity

166,279


127,343

Total Stockholders' Equity

313,183


275,570

Total Liabilities and Stockholders' Equity

$ 637,132


$ 582,407



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,


2011


2010


2011


2010

REVENUES








Customer services

$ 320,436


$ 298,803


$ 592,079


$ 551,844

COSTS AND EXPENSES








Cost of services provided

159,645


148,428


300,543


279,403

Depreciation and amortization

9,288


8,967


18,488


17,967

Sales, general and administrative

101,757


96,963


193,255


181,878

Interest Expense

178


66


370


165


270,868


254,424


512,656


479,413

INCOME BEFORE TAXES

49,568


44,379


79,423


72,431

PROVISION FOR INCOME TAXES

18,507


16,679


29,722


27,148

NET INCOME

$ 31,061


$ 27,700


$ 49,701


$ 45,283









NET INCOME PER SHARE - BASIC

$ 0.21


$ 0.19


$ 0.34


$ 0.30

NET INCOME PER SHARE - DILUTED

$ 0.21


$ 0.19


$ 0.34


$ 0.30









Weighted average shares outstanding - basic

147,245


148,566


147,358


148,687

Weighted average shares outstanding - diluted

147,314


148,798


147,441


148,943











CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)



Management will hold a conference call to discuss

Second Quarter results on:


Wednesday, July 27, 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 877-941-8609 domestic;

480-629-9818 international
at least 5 minutes before start time.


REPLAY: available through August 4, 2011

Please dial 800-406-7325/303-590-3030, Passcode:4456994

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.

Jul 27, 2011

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