Rollins, Inc. Reports Record Second Quarter Financial Results
ATLANTA, July 23 /PRNewswire-FirstCall/ -- Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for the second quarter ended June 30, 2008. Revenues grew 18.7% to $284.5 million compared to $239.6 million for the second quarter ended June 30, 2007. Revenue growth excluding our recent acquisition of HomeTeam Pest Defense improved 4.7%.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080723/CLW029LOGO )
The Company recorded net income of $22.7 million or $0.23 per diluted share for the second quarter ended June 30, 2008, compared to $21.2 million or $0.21 per diluted share for the second quarter ended June 30, 2007, a 7.1% increase.
During the quarter, the Company repurchased 262,775 shares of common stock at a weighted average price of $15.85 per share, with a total of 498,775 shares repurchased year-to-date. In total, approximately 515,491 additional shares may be purchased under previously approved programs by the Board of Directors.
Commenting on the Company's results, Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. said, "Despite the tough economy, we have continued to make headway this year growing our revenues and increasing our profitability. This sustained performance demonstrates our ability to improve our company in varying economic environments. We continue to invest in programs that will provide future growth and profitability. These commitments and as well as our current operational initiatives coupled with our employees' dedication to improving our business, puts us on track to meet our financial goals for 2008.
"We are also extremely pleased with the contribution that HomeTeam Pest Defense made to our revenue and cash flow. HomeTeam is an excellent company with superb management and associates. In their first 90 days as a member of the Rollins team they have exceeded our expectations and to date are running ahead of plan."
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, and The Industrial Fumigant Company, 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 and Asia 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, 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 Company's belief that its past performance demonstrates its ability to improve the Company in varying economic environments; it continues to invest in programs that will provide future growth and profitability; and the Company's commitments as well as its current operational initiatives coupled with its employees' dedication to improving its business puts the Company on track to meet its financial goals for 2008. 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, general economic conditions; market risk; 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, 2007.
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)
At June 30, (unaudited) 2008 2007
ASSETS
Cash and cash equivalents $15,272 $57,044
Trade receivables, short-term 67,602 58,808
Accounts Receivable - Other 7,606 3,310
Materials and supplies 10,260 8,740
Deferred income taxes 17,934 18,528
Other current assets 9,767 9,621
Total Current Assets 128,441 156,051
Equipment and property, net 78,805 77,634
Goodwill 183,083 125,974
Other Intangible Assets 25,364 9,155
Customer Contracts 130,746 66,893
Deferred income taxes 8,020 12,886
Trade receivables, long-term 9,998 8,908
Prepaid Pension 17,443 -
Other assets 6,908 5,873
Total Assets $588,808 $463,374
LIABILITIES
Loans outstanding $54,000 $-
Capital leases 822 1,270
Accounts payable 36,444 24,428
Accrued insurance 13,541 14,225
Accrued compensation and related liabilities 46,445 40,202
Other current liabilities 31,971 28,260
Unearned revenue 98,837 85,754
Total Current Liabilities 282,060 194,139
Capital leases, less current portion 460 1,013
Accrued pension - 6,946
Long-term accrued liabilities 56,812 52,966
Total Liabilities 339,332 255,064
STOCKHOLDERS' EQUITY
Common stock 100,869 101,041
Retained earnings and other equity 148,607 107,269
Total Stockholders' Equity 249,476 208,310
Total Liabilities and Stockholders' Equity $588,808 $463,374
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 30,
(in thousands except per share data)
(unaudited)
Second Quarter Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
REVENUES
Customer services $284,499 $239,618 $494,577 $440,850
COSTS AND EXPENSES
Cost of services
provided 146,076 121,601 256,029 228,437
Depreciation and
amortization 8,685 6,911 15,316 13,597
Sales, general and
administrative 92,030 76,787 163,518 143,828
(Gain)/loss on sales
of assets (14) (89) (35) (96)
Interest (income)/
expense, net 393 (522) (326) (1,074)
247,170 204,688 434,502 384,692
INCOME BEFORE TAXES 37,329 34,930 60,075 56,158
PROVISION FOR INCOME
TAXES 14,591 13,691 23,498 22,126
NET INCOME $22,738 $21,239 $36,577 $34,032
NET INCOME PER SHARE
- BASIC $0.23 $0.21 $0.37 $0.34
NET INCOME PER SHARE
- DILUTED $0.23 $0.21 $0.36 $0.33
Weighted average shares
outstanding - basic 99,369 100,465 99,378 100,722
Weighted average shares
outstanding - diluted 100,171 101,513 100,286 101,811
Rollins, Inc.
Reconciliation
Revenue Excluding HomeTeam Pest Defense
Second Quarter
$Better/ %Better/
2008 2007 (Worse) (Worse)
Net Revenues $284,499 $239,618 $44,881 18.7%
Less:
Revenues from Home-
Team Pest Defense 33,738 - 33,738
Revenue Excluding
HomeTeam Pest
Defense $250,761 $239,618 $11,143 4.7%
CONFERENCE CALL ANNOUNCEMENT
Rollins, Inc.
(NYSE: ROL)
Management will hold a conference call to discuss
Second Quarter results on:
Wednesday, July 23, 2008 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 800-366-3908 domestic;
303-262-2130 international at least 5 minutes before start time.
REPLAY: available through July 30, 2008
Please dial 800-405-2236/303-590-3000, Pass code: 11116485
THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT
www.viavid.net
Questions?
Contact Janet Jazmin at Financial Relations Board at 212-827-3777
Or email to jjazmin@frbir.com
SOURCE Rollins, Inc.
Released July 23, 2008