Rollins, Inc. Reports Second Quarter 2009 Financial Results
13th Consecutive Quarter of Improved Earnings Results
ATLANTA, July 29 /PRNewswire-FirstCall/ -- Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for its second quarter ended June 30, 2009. Revenues for the second quarter of 2009 were flat at $284.6 million, compared to $284.5 million for the second quarter of 2008. The negative impact of the Canadian dollar on second quarter revenues was partially offset by the Company's recent acquisition of Crane Pest Control.
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Net income increased 12.1% to $25.5 million or $0.26 per diluted share for the second quarter compared to $22.7 million or $0.23 per diluted share for the same period last year.
The Company repurchased 700,400 shares of common stock at a weighted average price of $16.90 per share during the second quarter bringing the total number of shares repurchased year-to-date to 1,303,800 at a weighted average price of $16.11. In total, approximately 3.3 million additional shares may be purchased under its share repurchase program.
Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. commented, "We are pleased with our net income improvements for the quarter and the year as we continue to benefit from the proactive expense reduction and productivity related programs we launched at the beginning of 2009. Although our flat revenue performance would be highly desirable for many companies in today's business environment, we continue to challenge ourselves to better execute our revenue generating initiatives."
Mr. Rollins, concluded, "As a parent company, Rollins, Inc. today is made up of the top pest control brands in North America. In the past decade, we have evolved into an organization that is far broader than Orkin. We are especially proud of the expertise, and effort exhibited by all of our employees during these demanding economic times."
Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, Inc., PCO Services, HomeTeam Pest Defense, Western Pest Services, The Industrial Fumigant Company 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, Central America, the Caribbean, the Middle East and Asia 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.indfumco.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 the Company's ability to continue to benefit from proactive expense and productivity related programs and the Company's ability to better execute the Company's revenue generating initiatives. 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 our Company's business; changes in industry practices or technologies; the degree of success of the Company's pest and termite process reforms 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; 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, 2008.
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)
At June 30, (unaudited) 2009 2008
---------------------- ---- ----
ASSETS
Cash and cash equivalents $22,575 $15,272
Trade receivables, short-term 68,123 67,602
Accounts Receivable - Other 2,377 7,606
Materials and supplies 11,196 10,260
Deferred income taxes 18,745 17,934
Other current assets 8,999 9,767
----- -----
Total Current Assets 132,015 128,441
Equipment and property, net 77,183 78,805
Goodwill 188,830 183,083
Other Intangible Assets 22,899 25,364
Customer Contracts 123,399 130,746
Deferred income taxes 17,032 8,020
Trade receivables, long-term 10,170 9,998
Prepaid Pension - 17,443
Other assets 7,114 6,908
----- -----
Total Assets $578,642 $588,808
======== ========
LIABILITIES
Loans outstanding $55,000 $54,000
Capital leases 314 822
Accounts payable 19,245 26,531
Accrued insurance 15,807 13,541
Accrued compensation and
related liabilities 54,804 56,358
Other current liabilities 27,236 31,971
Unearned revenue 95,355 98,837
------ ------
Total Current Liabilities 267,761 282,060
Capital leases, less current
portion 85 460
Accrued pension 20,112 -
Long-term accrued liabilities 53,314 56,812
------ ------
Total Liabilities 341,272 339,332
------- -------
STOCKHOLDERS' EQUITY
Common stock 99,168 100,869
Retained earnings and other
equity 138,202 148,607
------- -------
Total Stockholders' Equity 237,370 249,476
------- -------
Total Liabilities and
Stockholders' Equity $578,642 $588,808
======== ========
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
Second Quarter Ended Six Months Ended
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
REVENUES
Customer
services $284,567 $284,499 $527,539 $494,577
COSTS AND
EXPENSES
Cost of
services
provided 141,633 146,076 267,004 256,029
Depreciation
and
amortization 9,374 8,685 18,803 15,316
Sales, general
and
administrative 91,806 92,030 173,794 163,518
(Gain)/loss on
sales of
assets (18) (14) (23) (35)
Interest
(income)/
expense, net 259 393 687 (326)
--- --- --- ----
243,054 247,170 460,265 434,502
------- ------- ------- -------
INCOME BEFORE
TAXES 41,513 37,329 67,274 60,075
------ ------ ------ ------
PROVISION FOR
INCOME TAXES 16,031 14,591 25,984 23,498
------ ------ ------ ------
NET INCOME $25,482 $22,738 $41,290 $36,577
======= ======= ======= =======
NET INCOME
PER SHARE -
BASIC $0.26 $0.23 $0.42 $0.37
===== ===== ===== =====
NET INCOME
PER SHARE -
DILUTED $0.26 $0.23 $0.42 $0.36
===== ===== ===== =====
Weighted
average
shares
outstanding
- basic 97,727 99,369 98,028 99,378
Weighted
average
shares
outstanding
- diluted 98,524 100,171 98,771 100,286
CONFERENCE CALL ANNOUNCEMENT
Rollins, Inc.
(NYSE: ROL)
Management will hold a conference call to discuss
Second Quarter results on:
Wednesday, July 29, 2009 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 877-941-8633 domestic;
480-629-9822 international
at least 5 minutes before start time.
REPLAY: available through August 5, 2009
Please dial 800-406-7325/303-590-3030, Passcode: 4118589
THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT
www.viavid.net
Questions?
Contact Janet Jazmin at Financial Relations Board at 212-827-3777
Or email to jjazmin@financialrelationsboard.com
SOURCE Rollins, Inc.
Released July 29, 2009