Rollins, Inc. Reports Third Quarter 2009 Financial Results

14th Consecutive Quarter of Improved Earnings Results

ATLANTA, Oct. 28 /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, 2009. Revenues for the third quarter of 2009 grew 3.2% to $286.9 million compared to $277.9 million for the third quarter of 2008.

Net income increased 14.8% to $22.7 million or $0.23 per diluted share for the third quarter compared to $19.8 million or $0.20 per diluted share for the same period last year.

The Company repurchased 146,300 shares of common stock at a weighted average price of $17.81 per share during the third quarter bringing the total number of shares repurchased year-to-date to 1,450,100 at a weighted average price of $16.28. In total, approximately 3.2 million additional shares may be purchased under its share repurchase program.

"Rollins again delivered solid quarterly results. We were especially pleased to experience increased revenue across our entire family of companies," said Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. "Our revenue and lead generation programs are working and we are benefiting from a planned increase in our sales staff."

Mr. Rollins, concluded, "We are clearly focused on successfully completing the year while maintaining the positive momentum in revenue growth, expense control, and service performance improvement."

Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, Inc., 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, 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.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 clear focus on successfully completing the year while maintaining the positive momentum in revenue growth, expense control and service performance improvement. 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; changes in industry practices or technologies; the degree of success of the Company's pest and termite process reforms 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; 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, 2008.

                              ROLLINS, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
                                     (in thousands)

    At September 30, (unaudited)                  2009                   2008
    ---------------------------                   ----                   ----
    ASSETS
     Cash and cash equivalents                  $26,221                $16,334
     Trade receivables, short-term               70,750                 68,032
     Accounts Receivable - Other                  2,338                  1,717
     Materials and supplies                      10,341                 11,117
     Deferred income taxes                       17,628                 18,323
     Other current assets                        14,143                  8,320
                                                 ------                  -----
         Total Current Assets                   141,421                123,843

     Equipment and property, net                 77,223                 77,963
     Goodwill                                   189,355                182,834
     Other Intangible Assets                     22,742                 25,126
     Customer Contracts                         120,510                125,354
     Deferred income taxes                       16,669                  8,309
     Trade receivables, long-term                 9,599                  9,009
     Prepaid Pension                                  -                 18,259
     Other assets                                 8,008                  6,604
                                                  -----                  -----
         Total Assets                          $585,527               $577,301
                                               ========               ========

    LIABILITIES
     Loans outstanding                          $45,000                $41,500
     Capital leases                                 263                    661
     Accounts payable                            16,616                 20,037
     Accrued insurance                           15,605                 14,855
     Accrued compensation and
      related liabilities                        58,208                 53,842
     Unearned revenue                            95,361                 99,297
     Other current liabilities                   29,610                 29,294
                                                 ------                 ------
         Total Current Liabilities              260,663                259,486

     Capital leases, less current
      portion                                        60                    360
     Accrued pension                             14,992                      -
     Long-term accrued liabilities               56,584                 54,394
                                                 ------                 ------
         Total Liabilities                      332,299                314,240
                                                -------                -------

    STOCKHOLDERS' EQUITY
     Common stock                                99,040                100,864
     Retained earnings and other
      equity                                    154,188                162,197
                                                -------                -------
         Total Stockholders' Equity             253,228                263,061
                                                -------                -------
     Total Liabilities and
      Stockholders' Equity                     $585,527               $577,301
                                               ========               ========

                           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,
                                 -------------              -------------
                               2009         2008           2009        2008
                               ----         ----           ----        ----
    REVENUES
     Customer services       $286,852     $277,911       $814,391    $772,488
    COSTS AND EXPENSES
     Cost of Services
      provided                147,436      145,415        414,440     401,444
     Depreciation
      and amortization          9,321        9,031         28,124      24,347
     Sales, general
      and administrative       93,233       91,440        267,027     254,958
     (Gain)/loss on sales
      of assets                    30         (154)             7        (189)
     Interest
     (income)/expense, net        159          174            846        (152)
                                  ---          ---            ---        ----
                              250,179      245,906        710,444     680,408
                              -------      -------        -------     -------
    INCOME BEFORE TAXES        36,673       32,005        103,947      92,080
                               ------       ------        -------      ------
    PROVISION FOR
     INCOME TAXES              13,940       12,201         39,924      35,699
                               ------       ------         ------      ------
    NET INCOME                $22,733      $19,804        $64,023     $56,381
                              =======      =======        =======     =======

    NET INCOME PER
     SHARE - BASIC              $0.23        $0.20          $0.64       $0.56
                                =====        =====          =====       =====
    NET INCOME PER
     SHARE - DILUTED            $0.23        $0.20          $0.64       $0.56
                                =====        =====          =====       =====

    Weighted average shares
     outstanding - basic       99,125      100,882         99,615     100,905
    Weighted average shares
     outstanding - diluted     99,428      101,273         99,924     101,348



                           CONFERENCE CALL ANNOUNCEMENT
                                  Rollins, Inc.
                                   (NYSE: ROL)

                Management will hold a conference call to discuss
                           Third Quarter results on:

                         Wednesday, October 28, 2009 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 877-941-1466 domestic;
                         480-629-9677 international
                   at least 5 minutes before start time.

                  REPLAY: available through November 4, 2009
           Please dial 800-406-7325/303-590-3030, Passcode: 4173072
           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

SOURCE Rollins, Inc.