Published on October 23, 2013
Exhibit 99.1
For Further Information Contact
Harry J. Cynkus (404) 888-2922
FOR IMMEDIATE RELEASE
ROLLINS, INC. REPORTS RECORD THIRD QUARTER AND NINE MONTHS 2013 FINANCIAL RESULTS
Company posts 30th consecutive quarter of improved earnings results
ATLANTA, GEORGIA, October 23, 2013: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its third quarter and nine months ended September 30, 2013.
The Company recorded third quarter revenues of $362.2 million, an increase of 6.5% over the prior year’s third quarter revenue of $340.2 million. Net income increased 12.4% to $36.2 million or $0.25 per diluted share for the third quarter ended September 30, 2013, compared to $32.2 million or $0.22 per diluted share for the same period in 2012. These were the strongest revenue and net income percentage improvements for the year.
Rollins’ revenues rose 5.0% for the first nine months of 2013 to $1.013 billion compared to $964.5 million for the prior year. Net income for the first nine months of 2013 was $95.4 million, or $0.65 per diluted share, compared to net income of $88.4 million, or $0.60 per diluted share for the same period last year.
In the third quarter, the Company repurchased 168,110 shares under its share repurchase program and 340,699 shares have been repurchased year-to-date. In total, 4,957,484 additional shares may be purchased under the share repurchase program.
At yesterday’s Board of Directors meeting, the Board of Directors declared a regular quarterly cash dividend on its common stock of $0.09 per share plus a special year-end dividend of $0.09 per share both payable December 10, 2013 to stockholders of record at the close of business November 8, 2013.
“Rollins, Inc. had another quarter of improved revenue and earnings,” said Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. “We are very pleased with the solid financial results reported for the third quarter and nine months of 2013 for our Company. Revenue growth was provided across all our business lines and reflects the benefits of our new marketing and sales programs implemented this year.”
Mr. Rollins, concluded, “We are on track to deliver another successful year. Our focus continues to be on effective execution of our business initiatives to drive our revenue and profit, and provide best-in- class service for our customers while increasing shareholder value.”
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 regarding the Company’s belief that its improved revenue growth results from the focused efforts of its new marketing and sales programs, the Company’s belief that it is on track to deliver another successful year, and the Company’s plans to continue to focus on the effective execution of its business initiatives to drive its revenue and provide best-in-class service for its customers while increasing shareholder value. 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, 2012.
| ROLLINS, INC. AND SUBSIDIARIES | |||
| CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||
| (in thousands) |
| At September 30, (unaudited) | 2013 | 2012 | ||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 116,734 | $ | 93,713 | ||||
| Trade accounts receivables, net | 80,902 | 78,748 | ||||||
| Financed receivables, net | 12,740 | 12,396 | ||||||
| Materials and supplies | 11,836 | 10,919 | ||||||
| Deferred income taxes, net | 34,665 | 30,118 | ||||||
| Other current assets | 19,804 | 15,784 | ||||||
| Total Current Assets | 276,681 | 241,678 | ||||||
| Equipment and property, net | 85,348 | 77,521 | ||||||
| Goodwill | 212,201 | 211,373 | ||||||
| Customer contracts and other intangible assets, net | 134,763 | 132,850 | ||||||
| Deferred income taxes, net | 25,903 | 18,809 | ||||||
| Financed receivables, long-term, net | 12,722 | 12,491 | ||||||
| Other assets | 13,246 | 11,307 | ||||||
| Total Assets | $ | 760,864 | $ | 706,029 | ||||
| LIABILITIES | ||||||||
| Accounts payable | $ | 26,106 | $ | 24,679 | ||||
| Accrued insurance, current | 26,551 | 22,503 | ||||||
| Accrued compensation and related liabilities | 63,695 | 62,827 | ||||||
| Unearned revenue | 100,114 | 95,727 | ||||||
| Other current liabilities | 32,093 | 34,865 | ||||||
| Total Current Liabilities | 248,559 | 240,601 | ||||||
| Accrued insurance, less current portion | 28,094 | 29,145 | ||||||
| Accrued pension | 41,509 | 29,766 | ||||||
| Long-term accrued liabilities | 35,410 | 37,857 | ||||||
| Total Liabilities | 353,572 | 337,369 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock | 145,879 | 146,038 | ||||||
| Retained earnings and other equity | 261,413 | 222,622 | ||||||
| Total stockholders’ equity | 407,292 | 368,660 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 760,864 | $ | 706,029 | ||||
| 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, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| REVENUES | ||||||||||||||||
| Customer services | $ | 362,155 | $ | 340,179 | $ | 1,012,667 | $ | 964,516 | ||||||||
| COSTS AND EXPENSES | ||||||||||||||||
| Cost of services provided | 181,135 | 170,478 | 511,102 | 484,553 | ||||||||||||
| Depreciation and amortization | 10,076 | 9,465 | 29,738 | 28,845 | ||||||||||||
| Sales, general and administrative | 113,028 | 108,520 | 321,680 | 309,412 | ||||||||||||
| Interest (income)/expense | (101 | ) | 19 | (273 | ) | 90 | ||||||||||
| 304,138 | 288,482 | 862,247 | 822,900 | |||||||||||||
| INCOME BEFORE INCOME TAXES | 58,017 | 51,697 | 150,420 | 141,616 | ||||||||||||
| PROVISION FOR INCOME TAXES | 21,817 | 19,486 | 55,047 | 53,198 | ||||||||||||
| NET INCOME | $ | 36,200 | $ | 32,211 | $ | 95,373 | $ | 88,418 | ||||||||
| NET INCOME PER SHARE - BASIC | $ | 0.25 | $ | 0.22 | $ | 0.65 | $ | 0.60 | ||||||||
| NET INCOME PER SHARE - DILUTED | 0.25 | 0.22 | $ | 0.65 | $ | 0.60 | ||||||||||
| Weighted average shares outstanding - basic | 146,007 | 146,059 | 146,151 | 146,390 | ||||||||||||
| Weighted average shares outstanding - diluted | 146,007 | 146,061 | 146,151 | 146,400 | ||||||||||||
(( CONFERENCE CALL ANNOUNCEMENT ((
Rollins, Inc.
(NYSE: ROL)
Management will hold a conference call to discuss
Third Quarter 2013 results on:
Wednesday, October 23, 2013 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 866-225-8754 domestic;
480-629-9818 international
at least 5 minutes before start time.
REPLAY: available through October 30, 2013
Please dial 800-406-7325/303-590-3030, Passcode: 4643774
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