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,,,,,, and You can also find this and other news releases at by accessing the news releases button.


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.



(in thousands)

At September 30, (unaudited)                 2010       2009


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


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


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



(in thousands except per share data)


                                    Third Quarter Ended   Nine Months Ended

                                    September 30,         September 30,

                                    2010       2009       2010       2009


Customer services                   $ 305,118  $ 286,852  $ 856,962  $ 814,391


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


Rollins, Inc.


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


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



Contact Samantha Alphonso at Financial Relations Board at 212-827-3746

Or email to

For Further Information Contact

Harry J. Cynkus (404) 888-2922

SOURCE Rollins, Inc.