Rollins, Inc. Reports Second Quarter 2010 Financial Results
ATLANTA, July 28 /PRNewswire-FirstCall/ -- 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, 2010. The Company recorded second quarter revenues of $298.8 million, an increase of 5.0% over the prior year's second quarter revenue of $284.6 million. Net income increased 8.7% to $27.7 million or $0.28 per diluted share for the second quarter ended June 30, 2010, compared to $25.5 million or $0.26 per diluted share for the same period in 2009.
The Company repurchased 756,828 shares of common stock at a weighted average price of $21.21 per share during the second quarter bringing the total number of shares repurchased year-to-date to 886,928 at a weighted average price of $20.92. In total, 2,064,663 additional shares may be purchased under the share repurchase program.
Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "Our second quarter results reflect the benefits of our marketing and sales programs with all major brands enjoying solid revenue increases."
Mr. Rollins concluded, "We are confident that our strategy of investing in improving market share by growing faster than our industry will prove to be long-term beneficial. The acquisition of Waltham Services announced earlier this month will expand our presence in New England and reinforce our geographic footprint. The addition of this terrific company, along with their outstanding employees, in tandem with our other leading brands strengthens Rollins as the preeminent pest control provider. "
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 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.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's strategy of investing in improving market share by growing faster than our industry will prove to be beneficial over the long-term; and our ability to successfully complete the acquisition of Waltham Services and thereafter successfully integrate the operations of this business with the Company's operations. 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 our 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; our 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 June 30, (unaudited) 2010 2009 ASSETS Cash and cash equivalents $ 19,286 $ 22,575 Trade receivables, short-term 71,494 68,123 Accounts Receivable - Other 3,621 2,377 Materials and supplies 11,122 11,196 Deferred income taxes 26,190 18,745 Other current assets 14,597 8,999 Total Current Assets 146,310 132,015 Trade receivables, long-term 10,578 10,170 Equipment and property, net 71,260 77,183 Goodwill 189,668 188,830 Customer Contracts 113,859 123,399 Other Intangible Assets 24,531 22,899 Deferred income taxes 17,332 17,032 Other assets 8,869 7,114 Total Assets $ 582,407 $ 578,642 LIABILITIES Accounts payable $ 17,599 $ 19,245 Accrued insurance 15,848 15,807 Accrued compensation and related liabilities 55,966 54,804 Unearned revenue 93,450 95,355 Line of Credit 25,000 55,000 Other current liabilities 29,607 27,550 Total Current Liabilities 237,470 267,761 Accrued insurance 27,850 26,308 Accrued pension 13,919 20,112 Long-term accrued liabilities 27,598 27,091 Total Liabilities 306,837 341,272 STOCKHOLDERS’ EQUITY Common stock 98,559 99,168 Retained earnings and other equity 177,011 138,202 Total Stockholders’ Equity 275,570 237,370 Total Liabilities and Stockholders’ Equity $ 582,407 $ 578,642
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
Second Quarter Ended Six Months Ended
June 30, June 30,
2010 2009 2010 2009
REVENUES
Customer services $ 298,803 $ 284,567 $ 551,844 $ 527,539
COSTS AND EXPENSES
Cost of services provided 148,428 141,633 279,403 267,004
Depreciation and amortization 8,967 9,374 17,967 18,803
Sales, general and
administrative 96,772 91,806 181,873 173,794
(Gain)/Loss on sale of assets 191 (18) 5 (23)
Interest expense, net 66 259 165 687
254,424 243,054 479,413 460,265
INCOME BEFORE TAXES 44,379 41,513 72,431 67,274
PROVISION FOR INCOME
TAXES 16,679 16,031 27,148 25,984
NET INCOME $ 27,700 $ 25,482 $ 45,283 $ 41,290
NET INCOME PER SHARE -
BASIC $ 0.28 $ 0.26 $ 0.46 $ 0.41
NET INCOME PER SHARE -
DILUTED $ 0.28 $ 0.26 $ 0.46 $ 0.41
Weighted average shares
outstanding - basic 99,044 99,581 99,125 99,865
Weighted average shares
outstanding - diluted 99,199 99,889 99,295 100,176
CONFERENCE CALL ANNOUNCEMENT Rollins, Inc. (NYSE: ROL) Management will hold a conference call to discuss Second Quarter results on: Wednesday, July 28, 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 dial 800-762-8795 domestic; 480-629-9772international atleast5 minutes before start time. REPLAY: available through August 4, 2010 Please dial 800-406-7325/303-590-3030, Passcode: 4329321 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 tosalphonso@mww.com
For Further Information Contact Harry J. Cynkus (404) 888-2922
SOURCE Rollins, Inc.
Released July 28, 2010