Rollins, Inc. Reports Second Quarter and Six Month 2011 Financial Results
ATLANTA, July 27, 2011 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its second quarter ended June 30, 2011.
The Company recorded second quarter revenues of $320.4 million, an increase of 7.2% over the prior year's second quarter revenue of $298.8 million. Net income increased 12.1% to $31.1 million or $0.21 per diluted share for the second quarter ended June 30, 2011, compared to $27.7 million or $0.19 per diluted share for the same period in 2010.
Rollins' revenues rose 7.3% for the first six months of 2011 to $592.1 million compared to $551.8 million for the prior year. Net income for the first six months of 2011 was $49.7 million, or $0.34 per diluted share, compared to net income of $45.3 million, or $0.30 per diluted share for the same period last year.
In the second quarter, the Company repurchased 533,012 shares at a weighted average price of $19.37 per share bringing the total number of shares repurchased year-to-date to 789,296 at a weighted average price of $19.22. In total, 1,748,950 additional shares may be purchased under the share repurchase program.
Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "We are pleased with the strong financial results our Company reported for the second quarter and first six months of this year. The contributions made to our business across all our brands position us to achieve our business objectives for 2011 and beyond. Furthermore, we are seeing the benefits of the organizational changes made this year involving John Wilson heading Orkin USA, and Bob Wanzer leading the Rollins Independent Brands."
Mr. Rollins concluded, "We continue to make investments in our company and are confident that these strategies and action plans will enable us to continue to improve our margins and market share and grow at a faster pace than our industry."
Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, HomeTeam Pest Defense, Western Pest Services, PCO Services, The Industrial Fumigant Company, Waltham Services, Crane Pest Control, and TruTech, 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, Europe, Central America, the Caribbean, the Middle East, Asia and the Mediterranean 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.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 belief that the contributions made to our business across all of our brands position us to achieve our business objectives for 2011 and beyond and our belief the Company's strategies and action plans with enable the Company to continue to improve its margins and market share and grow at a faster pace than the Company's industry. 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, 2010.
ROLLINS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in thousands) At June 30, (unaudited) 2011 2010 ASSETS Cash and cash equivalents $ 25,820 $ 19,286 Trade receivables, short-term 83,525 75,115 Materials and supplies 12,305 11,122 Deferred income taxes 27,628 26,190 Other current assets 20,198 14,597 Total Current Assets 169,476 146,310 Equipment and property, net 74,026 71,260 Goodwill 213,705 189,668 Customer Contracts and Other Intangible assets 144,947 138,390 Deferred income taxes 13,156 17,332 Trade receivables, long-term 11,319 10,578 Other assets 10,503 8,869 Total Assets $ 637,132 $ 582,407 LIABILITIES Accounts payable $ 31,853 $ 17,599 Accrued insurance 20,580 15,848 Accrued compensation and related liabilities 60,951 55,966 Unearned revenue 93,387 93,450 Line of Credit 10,000 25,000 Other current liabilities 32,478 29,607 Total Current Liabilities 249,249 237,470 Accrued insurance 26,830 27,850 Accrued pension 8,253 13,919 Long-term accrued liabilities 39,617 27,598 Total Liabilities 323,949 306,837 STOCKHOLDERS’ EQUITY Common stock 146,904 148,227 Retained earnings and other equity 166,279 127,343 Total Stockholders’ Equity 313,183 275,570 Total Liabilities and Stockholders’ Equity $ 637,132 $ 582,407
ROLLINS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands except per share data) (unaudited) Second Quarter Ended Six Months Ended June 30, June 30, 2011 2010 2011 2010 REVENUES Customer services $ 320,436 $ 298,803 $ 592,079 $ 551,844 COSTS AND EXPENSES Cost of services provided 159,645 148,428 300,543 279,403 Depreciation and amortization 9,288 8,967 18,488 17,967 Sales, general and administrative 101,757 96,963 193,255 181,878 Interest Expense 178 66 370 165 270,868 254,424 512,656 479,413 INCOME BEFORE TAXES 49,568 44,379 79,423 72,431 PROVISION FOR INCOME TAXES 18,507 16,679 29,722 27,148 NET INCOME $ 31,061 $ 27,700 $ 49,701 $ 45,283 NET INCOME PER SHARE - BASIC $ 0.21 $ 0.19 $ 0.34 $ 0.30 NET INCOME PER SHARE - DILUTED $ 0.21 $ 0.19 $ 0.34 $ 0.30 Weighted average shares outstanding - basic 147,245 148,566 147,358 148,687 Weighted average shares outstanding - diluted 147,314 148,798 147,441 148,943
CONFERENCE CALL ANNOUNCEMENT Rollins, Inc. (NYSE: ROL) Management will hold a conference call to discuss Second Quarter results on: Wednesday, July 27, 2011 at: 10:00 a.m. Eastern 9:00 a.m. Central 8:00 a.m. Mountain 7:00 a.m. Pacific TO PARTICIPATE: Please dial877-941-8609domestic; 480-629-9818international atleast5 minutes before start time. REPLAY: available through August 4, 2011 Please dial 800-406-7325/303-590-3030, Passcode: 4456994 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 firstname.lastname@example.org
For Further Information Contact
Harry J. Cynkus (404) 888-2922
SOURCE Rollins, Inc.
Released July 27, 2011