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Rollins, Inc. Reports Third Quarter And Nine Months 2012 Financial Results

ATLANTA, Oct. 24, 2012 /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, 2012. 

The Company recorded third quarter revenues of $340.2 million, an increase of 5.0% over the prior year's third quarter revenue of $323.9 million.  Net income increased 9.5% to $32.2 million or $0.22 per diluted share for the third quarter ended September 30, 2012, compared to $29.4 million or $0.20 per diluted share for the same period in 2011. 

Rollins' revenues rose 5.3% for the first nine months of 2012 to $964.5 million compared to $916.0 million for the prior year.  Net income for the first nine months of 2012 was $88.4 million, or $0.60 per diluted share, compared to net income of $79.1 million, or $0.54 per diluted share for the same period last year.

At yesterday's Board of Directors meeting, the Board of Directors declared a regular quarterly cash dividend on its common stock of $0.08 per share plus a special year-end dividend of $0.12 per share both payable December 10, 2012 to stockholders of record at the close of business November 09, 2012.  

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "We are very pleased with our financial results for the third quarter and first nine months of fiscal 2012.  Our revenue growth was strong across the Company, which reflects the positive results we are receiving from the investments we have made.  We again improved our profit margins with favorable revenue to profit conversion."

Mr. Rollins, concluded, "We are optimistic about concluding another successful year while gaining market share and delivering value to our customers and shareholders." 

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 about the Company's optimism about having another successful year while still gaining market share and delivering value to our customers and shareholders.  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 September  30, (unaudited)

2012


2011

ASSETS




Cash and cash equivalents

$                  93,713


$                    30,219

Trade accounts receivables, net

78,748


71,715

Financed receivables, net 

12,396


11,668

Materials and supplies

10,919


10,607

Deferred income taxes, net

30,118


30,575

Other current assets

15,784


17,096

Total Current Assets

241,678


171,880

Equipment and property, net

77,521


76,046

Goodwill 

211,373


210,898

Customer contracts and other intangible assets, net

132,850


140,598

Deferred income taxes

18,809


12,223

Financed receivables, long-term, net

12,491


11,108

Other assets

11,307


9,670

    Total Assets

$               706,029


$                  632,423





LIABILITIES




Accounts payable

$                  24,679


$                    23,951

Accrued insurance, current

22,503


20,801

Accrued compensation and related liabilities

62,827


60,365

Unearned revenue

95,727


95,022

Other current liabilities

34,865


35,774

Total Current Liabilities

240,601


235,913

Accrued insurance, less current portion

29,145


27,462

Accrued pension

29,766


7,573

Long-term accrued liabilities

37,857


34,977

Total Liabilities

337,369


305,925





STOCKHOLDERS' EQUITY




Common stock

146,038


146,292

Retained earnings and other equity

222,622


180,206

Total stockholders' equity

368,660


326,498

Total Liabilities and Stockholders' Equity

$               706,029


$                  632,423





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,



2012


2011


2012


2011


REVENUES









Customer services

$    340,179


$      323,929


$    964,516


$      916,008


COSTS AND EXPENSES









Cost of services provided

170,478


165,097


484,553


465,640


Depreciation and amortization

9,465


9,337


28,845


27,825


Sales, general and administrative

108,520


102,396


309,412


295,651


Interest Expense

19


79


90


449



288,482


276,909


822,900


789,565


INCOME BEFORE INCOME TAXES

51,697


47,020


141,616


126,443


PROVISION FOR INCOME TAXES

19,486


17,605


53,198


47,327


NET INCOME

$      32,211


$       29,415


$      88,418


$       79,116











NET INCOME PER SHARE - BASIC

$          0.22


$           0.20


$          0.60


$           0.54


NET INCOME PER SHARE - DILUTED

$          0.22


$           0.20


$          0.60


$           0.54











Weighted average shares outstanding - basic

146,059


146,549


146,390


147,086


Weighted average shares outstanding - diluted

146,061


146,609


146,400


147,161











CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)

Management will hold a conference call to discuss
Third Quarter 2012 results on:


Wednesday, October 24, 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 877-941-8609 domestic;
480-629-9692 international
at least 5 minutes before start time.


REPLAY: available through October 31, 2012
Please dial 800-406-7325/303-590-3030, Passcode: 4568454
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 24, 2012

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