Rollins, Inc. Reports Record Third Quarter And Nine Months 2013 Financial Results

Company posts 30th consecutive quarter of improved earnings results

ATLANTA, Oct. 23, 2013 /PRNewswire/ -- 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

 

For Further Information Contact
Harry J. Cynkus (404) 888-2922

SOURCE Rollins, Inc.