Rollins, Inc. Reports First Quarter 2010 Financial Results

ATLANTA, April 28 /PRNewswire-FirstCall/ -- 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, 2010.  The Company recorded first quarter revenues of $253.0 million, an increase of 4.1% over the prior year's first quarter revenue of $243.0 million.  Net income increased 11.2% to $17.6 million or $0.18 per diluted share for the first quarter ended March 31, 2010, compared to $15.8 million or $0.16 per diluted share for the same period in 2009.  

On January 26, 2010, Rollins increased its regular quarterly cash dividend to shareholders 28.6 percent to $0.09.  The Company also repurchased 130,100 shares at a weighted average price of $19.23 per share during the first quarter.  In total, 2,821,491 additional shares may be purchased under the share repurchase program.

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "We are very pleased with our first quarter results and the start of the year.  Our Company delivered solid revenue results, improved gross margins and profits, and generated strong cash flow."  

Mr. Rollins concluded, "We are off to a good beginning and are executing very meaningful programs that should make contributions throughout the year.  We are especially grateful to our employees who are working hard to execute our 2010 plan."

Rollins, Inc. is a premier North American consumer and commercial services company.  Through its wholly owned subsidiaries, Orkin, PCO Services, HomeTeam Pest Defense, Western Pest 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 the statements about the Company's belief that Company is executing very meaningful programs that should make contributions throughout the year.  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 March 31, (unaudited)                     2010       2009

ASSETS

Cash and cash equivalents                    $ 14,149   $ 14,957

Trade receivables, short-term                60,709     58,783

Accounts Receivable - Other                  2,228      1,854

Materials and supplies                       10,957     11,555

Deferred income taxes                        25,760     19,892

Other current assets                         11,842     10,919

Total Current Assets                         125,645    117,960



Trade receivables, long-term                 9,021      8,946

Equipment and property, net                  72,203     78,325

Goodwill                                     189,925    188,101

Customer Contracts                           117,130    126,502

Other Intangible Assets                      24,575     23,172

Deferred income taxes                        17,644     17,514

Other assets                                 9,190      6,396

Total Assets                                 $ 565,333  $ 566,916



LIABILITIES

Accounts payable                             $ 20,671   $ 18,712

Accrued insurance                            16,754     15,067

Accrued compensation and related liabilities 47,865     45,216

Unearned revenue                             89,604     90,785

Line of Credit                               15,000     62,000

Other current liabilities                    34,969     33,521

Total Current Liabilities                    224,863    265,301



Accrued insurance                            26,054     25,803

Accrued pension                              14,731     20,232

Long-term accrued liabilities                28,022     27,385

Total Liabilities                            293,670    338,721



STOCKHOLDERS’ EQUITY

Common stock                                 99,336     99,882

Retained earnings and other equity           172,327    128,313

Total Stockholders’ Equity                 271,663    228,195

Total Liabilities and Stockholders’ Equity $ 565,333  $ 566,916










ROLLINS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)



                                              First Quarter Ended

                                              March 31,

                                              2010       2009

REVENUES

Customer services                             $ 253,041  $ 242,972

COSTS AND EXPENSES

Cost of services provided                     130,975    125,371

Depreciation and amortization                 9,000      9,429

Sales, general and administrative             85,101     81,988

Gain on impairment/sale of assets             (186)      (5)

Interest expense, net                         99         428

                                              224,989    217,211

INCOME BEFORE TAXES                           28,052     25,761

PROVISION FOR INCOME TAXES                    10,469     9,953

NET INCOME                                    $ 17,583   $ 15,808



NET INCOME PER SHARE - BASIC                  $ 0.18     $ 0.16

NET INCOME PER SHARE - DILUTED                $ 0.18     $ 0.16



Weighted average shares outstanding - basic   99,206     100,152

Weighted average shares outstanding - diluted 99,393     100,468








CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)



Management will hold a conference call to discuss

First Quarter results on:



Wednesday, April 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 dial877-941-8610domestic;

480-629-9820international
atleast5 minutes before start time.



REPLAY: available through May 5, 2010

Please dial 800-406-7325/303-590-3000, Passcode: 4282234

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 salphonso@mww.com






For Further Information Contact

Harry J. Cynkus (404) 888-2922





SOURCE Rollins, Inc.