Rollins, Inc. Reports First Quarter 2011 Financial Results
ATLANTA, April 27, 2011 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its first quarter ended March 31, 2011.
The Company recorded first quarter revenues of $271.6 million, an increase of 7.4% over the prior year's first quarter revenue of $253.0 million. Net income increased 6.0% to $18.6 million or $0.13 per diluted share for the first quarter ended March 31, 2011, compared to $17.6 million or $0.12 per diluted share for the same period in 2010.
On January 25, 2011, Rollins increased its regular quarterly cash dividend to shareholders 16.7 percent to $0.07 per share. The Company also repurchased 256,284 shares at a weighted average price of $18.90 per share during the first quarter. In total, 2,281,962 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 to report our strongest increase in revenue for a first quarter in more than five years, we are understandably pleased with our solid start of 2011."
Mr. Rollins concluded, "Our opportunities for this year are exciting and we believe that each of our businesses is well positioned to contribute. We remain committed to growing our revenue, improving earnings, generating strong cash flows and maintaining a strong balance sheet. We are clearly focused on achieving our goals."
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 Company's opportunities in 2011 are exciting; that each of the Company's businesses is well positioned to contribute; and that the Company remains committed to growing its revenue, improving earnings, generating solid cash flow and maintaining a strong balance sheet. 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 March 31, (unaudited) 2011 2010 ASSETS Cash and cash equivalents $ 23,340 $ 14,149 Trade receivables, short-term 69,524 62,937 Materials and supplies 12,680 10,957 Deferred income taxes 27,178 25,760 Other current assets 14,522 11,842 Total Current Assets 147,244 125,645 Equipment and property, net 73,444 72,203 Goodwill 212,130 189,925 Customer Contracts and Other Intangible assets 146,742 141,705 Deferred income taxes 14,336 17,644 Trade receivables, long-term 9,786 9,021 Other assets 10,523 9,190 Total Assets $ 614,205 $ 565,333 LIABILITIES Accounts payable $ 23,081 $ 20,671 Accrued insurance 19,918 16,754 Accrued compensation and related liabilities 51,697 47,865 Unearned revenue 92,193 89,604 Line of Credit 25,000 15,000 Other current liabilities 30,027 34,969 Total Current Liabilities 241,916 224,863 Accrued insurance 25,969 26,054 Accrued pension 8,390 14,731 Long-term accrued liabilities 36,710 28,022 Total Liabilities 312,985 293,670 STOCKHOLDERS’ EQUITY Common stock 147,428 149,004 Retained earnings and other equity 153,792 122,659 Total Stockholders’ Equity 301,220 271,663 Total Liabilities and Stockholders’ Equity $ 614,205 $ 565,333
ROLLINS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands except per share data) (unaudited) First Quarter Ended March 31, 2011 2010 REVENUES Customer services $ 271,643 $ 253,041 COSTS AND EXPENSES Cost of services provided 140,898 130,975 Depreciation and amortization 9,200 9,000 Sales, general and administrative 91,498 84,915 Interest Expense 192 99 241,788 224,989 INCOME BEFORE TAXES 29,855 28,052 PROVISION FOR INCOME TAXES 11,215 10,469 NET INCOME $ 18,640 $ 17,583 NET INCOME PER SHARE - BASIC $ 0.13 $ 0.12 NET INCOME PER SHARE - DILUTED $ 0.13 $ 0.12 Weighted average shares outstanding - basic 147,473 148,810 Weighted average shares outstanding - diluted 147,570 149,089
CONFERENCE CALL ANNOUNCEMENT Rollins, Inc. (NYSE: ROL) Management will hold a conference call to discuss First Quarter results on: Wednesday, April 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 dial877-941-8631domestic; 480-629-9818international atleast5 minutes before start time. REPLAY: available through May 4, 2011 Please dial 800-406-7325/303-590-3000, Passcode: 4432545 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 April 27, 2011