Rollins, Inc. Reports Third Quarter and Nine Months 2010 Financial Results
ATLANTA, Oct. 27 /PRNewswire-FirstCall/ -- Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for its third quarter ended September 30, 2010. The Company recorded third quarter revenues of $305.1 million, an increase of 6.4% over the prior year's third quarter revenue of $286.9 million. Net income increased 12.2% to $25.5 million or $0.26 per diluted share for the third quarter ended September 30, 2010, compared to $22.7 million or $0.23 per diluted share for the same period in 2009.
Revenues for the first nine months of 2010 increased 5.2% to $857.0 million compared to $814.4 million for the first nine months of 2009. Rollins' net income for the first nine months of 2010 rose 10.6% to $70.8 million, or $0.71 per diluted share, compared to net income of $64.0 million, or $0.64 per diluted share for the same period in 2009.
Rollins' balance sheet remains strong with total assets of $607.6 million and stockholders' equity increasing to $286.4 million.
In the third quarter, the Company announced that it repurchased 372,499 shares of common stock at a weighted average price of $20.93 per share during the third quarter bringing the total number of shares repurchased year-to-date to 1,259,427 at a weighted average price of $20.92. In total, 1,692,164 additional shares may be purchased under the share repurchase program.
Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "This quarter reflects a record performance in revenue and profits. Our revenue growth reflects contributions from all of our businesses. As you would expect, we are pleased with the results from our operational initiatives and their impact on customer and employee retention, as well as the bottom line."
Mr. Rollins concluded, "Our progress in the first nine months of this year has been solid and we are on target to meet our business objectives for the year. Our focus is squarely on providing a good job for our employees, great service to our customers and solid earnings improvement for our shareholders. We remain confident in our strategy and action plans, and are working hard to grow the business both organically and through strategic acquisitions."
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, and Crane Pest Control, 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, Mexico, 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 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 is on target to meet its business objectives for the year; the Company is focused on providing a good job for its employees, great service to its customers, and solid earnings improvement for its shareholders; the Company's confidence in its strategy and action plans; and the Company's work to grow its business both organically and through strategic acquisitions. 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, 2009.
ROLLINS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (in thousands) At September 30, (unaudited) 2010 2009 ASSETS Cash and cash equivalents $ 20,250 $ 26,221 Trade receivables, short-term 76,973 70,750 Accounts Receivable - Other 2,218 2,338 Materials and supplies 11,167 10,341 Deferred income taxes 27,092 17,628 Other current assets 13,161 14,143 Total Current Assets 150,861 141,421 Trade receivables, long-term 10,416 9,599 Equipment and property, net 70,782 77,223 Goodwill 200,639 189,355 Customer Contracts 119,896 120,510 Other Intangible Assets 25,636 22,742 Deferred income taxes 19,841 16,669 Other assets 9,554 8,008 Total Assets $ 607,625 $ 585,527 LIABILITIES Accounts payable $ 25,693 $ 16,616 Accrued insurance 18,660 15,605 Accrued compensation and related liabilities 60,214 58,208 Unearned revenue 95,711 95,361 Line of Credit 24,000 45,000 Other current liabilities 31,378 29,873 Total Current Liabilities 255,656 260,663 Accrued insurance 25,566 27,687 Accrued pension 11,365 14,992 Long-term accrued liabilities 28,597 28,957 Total Liabilities 321,184 332,299 STOCKHOLDERS’ EQUITY Common stock 98,107 99,040 Retained earnings and other equity 188,334 154,188 Total Stockholders’ Equity 286,441 253,228 Total Liabilities and Stockholders’ Equity $ 607,625 $ 585,527
ROLLINS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands except per share data) (unaudited) Third Quarter Ended Nine Months Ended September 30, September 30, 2010 2009 2010 2009 REVENUES Customer services $ 305,118 $ 286,852 $ 856,962 $ 814,391 COSTS AND EXPENSES Cost of services provided 156,064 147,436 435,467 414,440 Depreciation and amortization 9,076 9,321 27,043 28,124 Sales, general and administrative 98,909 93,233 280,782 267,027 Loss on sale of assets - 30 5 7 Interest expense, net 100 159 265 846 264,149 250,179 743,562 710,444 INCOME BEFORE TAXES 40,969 36,673 113,400 103,947 PROVISION FOR INCOME TAXES 15,456 13,940 42,604 39,924 NET INCOME $ 25,513 $ 22,733 $ 70,796 $ 64,023 NET INCOME PER SHARE - BASIC $ 0.26 $ 0.23 $ 0.72 $ 0.64 NET INCOME PER SHARE - DILUTED $ 0.26 $ 0.23 $ 0.71 $ 0.64 Weighted average shares outstanding - basic 98,388 99,125 98,876 99,615 Weighted average shares outstanding - diluted 98,505 99,428 99,029 99,924
CONFERENCE CALL ANNOUNCEMENT Rollins, Inc. (NYSE: ROL) Management will hold a conference call to discuss Third Quarter results on: Wednesday, October 27, 2010 at: 10:00 a.m. Eastern 9:00 a.m. Central 8:00 a.m. Mountain 7:00 a.m. Pacific TO PARTICIPATE: Please dial877-941-7133 domestic; 480-629-9821 international atleast5 minutes before start time. REPLAY: available through November 4, 2010 Please dial 800-406-7325/303-590-3030, Passcode: 4372650 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 email@example.com
For Further Information Contact Harry J. Cynkus (404) 888-2922
SOURCE Rollins, Inc.
Released October 27, 2010