EARNINGS RELEASE 99.1
Published on July 24, 2003
Exhibit 99.1
For Further Information Contact
Harry J. Cynkus
(404) 888-2922
FOR IMMEDIATE RELEASE
ROLLINS, INC. REPORTS CONTINUED GROWTH IN QUARTERLY EARNINGS
14TH Consecutive Quarter of Improved Earnings Per Share Results
o Net Income Rose 18.6% to $13.9 million
o Cash increased 41.0% to $64.9 million
o Margin Improved 19.0%.
ATLANTA, GEORGIA, July 22, 2003: Rollins, Inc. (NYSE:ROL), a premier North
American consumer services company, today reported net income grew 18.6% to
$13.9 million or $0.30 per diluted share for the second quarter ended June 30,
2003, compared to $11.7 million or $0.26 per diluted share for the same period
in 2002. Revenue for the second quarter increased to $185.1 million from $184.2
million for the second quarter ended June 30, 2002.
Net income for the first six months of 2003 rose 27.1% to $21.1 million or $0.46
per diluted share compared to net income of $16.6 million or $0.37 per diluted
share for the comparable six months in 2002. Revenues increased to $340.2
million for the first six months compared to $337.5 million for the prior
year-to-date period.
The Company's balance sheet continued to strengthen as of June 30, 2003, with
cash and short-term investments of $64.9 million, total assets of $344.0 million
and stockholders' equity increasing to $112.2 million.
Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated,
"We are pleased that the strength of our recurring business continued to be
reflected in our improved profitability for the second quarter. This was
accomplished despite disappointing revenue resulting from unseasonably wet and
cold weather conditions in most of the country. Our termite business was
impacted as was our pest control business, although to a lesser degree. The
Company continues to benefit from our service initiatives and home office
reorganization. The second quarter of 2003 marked the fourteenth consecutive
quarter in which Rollins has generated year-over-year improvement in earnings
per share."
Rollins, Inc. is one of the nation's largest consumer services companies.
Through its wholly-owned subsidiary, Orkin Exterminating Company, Inc., the
Company provides essential pest control services and protection against termite
damage, rodents and insects to approximately 1.6 million customers in the United
States, Canada and Mexico from over 400 locations. You can learn more about
Orkin by visiting our Web sites at www.orkin.com and www.rollinscorp.com.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
The above release contains statements that constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. 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, general economic conditions; market
risk; 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 potential acquisitions;
climate and weather trends; competitive factors and pricing practices; the cost
reduction benefits of the corporate restructuring may not be as great as
expected or eliminated positions may have to be reinstated in the future;
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.