Rollins, Inc. Reports Positive First Quarter Financial Results


Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for the first quarter ended March 31, 2008. Revenues grew 4.4% to $210.1 million compared to $201.2 million for the first quarter ended March 31, 2007.

The Company recorded net income of $13.8 million or $0.14 per diluted share for the first quarter ended March 31, 2008, compared to $12.8 million or $0.13 per diluted share for the first quarter ended March 31, 2007.

On January 23, 2008, Rollins, Inc. approved a 25% increase in the Company's regular quarterly cash dividend to $0.0625. Also in the first quarter, the Company announced that it repurchased 236,000 shares of common stock at a weighted average price of $17.09 per share. In total, approximately 778,000 additional shares may be purchased under previous authorization by the Board of Directors.

Commenting on the Company's results, Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. said, "We were pleased with our revenue improvement in the first quarter. Commercial sales, which significantly increased in the fourth quarter, continued to be strong in our first quarter. This quarter is not a high volume quarter for Residential Pest Control and Termite Control due to the small amount of pest activity. As the weather warms, these businesses will gain momentum.

"On April 3, 2008, we completed the acquisition of HomeTeam Pest Defense, a subsidiary of Centex Corporation (NYSE:CTX) for a cash payment of approximately $137 million. HomeTeam recorded pest control revenues of $134 million for the twelve months completed March 31, 2007. HomeTeam has 50 offices in 13 states, is the nation's third largest residential pest management company and performs services for approximately 400,000 customers coast to coast. This acquisition provides significant opportunity for Rollins to leverage HomeTeam's proprietary technology and new home marketing expertise to more markets throughout the U.S. The purchase of HomeTeam will provide us with an entry into a new business channel, and provide our company a meaningful opportunity for longer term growth. We look forward to working with this great team of professionals, and will benefit from their talent and experience."

Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, Inc., PCO Services, Rollins HomeTeam, Western Pest Services, and The Industrial Fumigant Company, the Company provides essential pest control services and protection against termite damage, rodents and insects to approximately 2.1 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,,,, 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 the Company's belief that its residential pest control and termite control businesses will gain momentum as the weather warms; the acquisition of HomeTeam Pest Defense provides significant opportunity for the Company to leverage HomeTeam's proprietary technology and new home marketing expertise to more markets throughout the U.S.; the purchase of HomeTeam will provide the Company with an entry into a new business channel and provide the Company a meaningful opportunity for longer term growth; and the Company will benefit from the talent and experience of the HomeTeam Pest Defense team of professionals. 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; expected benefits of the commercial re-engineering project may not be realized; 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
                            (in thousands)

                                                    2008        2007
At March 31,                                   (unaudited) (unaudited)
Cash and cash equivalents                         $ 71,365    $ 54,994
Trade receivables, short-term                       53,908      50,711
Materials and supplies                               8,715       8,691
Deferred income taxes                               17,901      19,603
Other current assets                                 9,115       9,971
                                               ----------- -----------
Total Current Assets                               161,004     143,970

Equipment and property, net                         76,823      76,850
Goodwill                                           126,296     125,230
Other Intangible Assets                              9,176       9,195
Customer Contracts                                  60,843      65,950
Deferred income taxes                                7,676      12,956
Trade receivables, long-term                         8,918       8,519
Prepaid Pension                                     17,169           -
Other assets                                         6,828       5,514
                                               ----------- -----------
Total Assets                                      $474,733    $448,184
                                               =========== ===========

Capital leases                                    $    798    $  1,183
Accounts payable                                    18,562      15,827
Accrued insurance                                   14,235      13,978
Accrued compensation and related liabilities        33,048      33,189
Other current liabilities                           32,553      35,889
Unearned revenue                                    85,253      83,674
                                               ----------- -----------
Total Current Liabilities                          184,449     183,740

Capital leases, less current portion                   757         939
Accrued pension                                          -       6,946
Long-term accrued liabilities                       52,979      51,694
                                               ----------- -----------
Total Liabilities                                  238,185     243,319
                                               ----------- -----------

Common stock                                       100,913     101,919
Retained earnings and other equity                 135,635     102,946
                                               ----------- -----------
Total Stockholders' Equity                         236,548     204,865
                                               ----------- -----------
Total Liabilities and Stockholders' Equity        $474,733    $448,184
                                               =========== ===========
                    ROLLINS, INC. AND SUBSIDIARIES
                 (in thousands except per share data)

                                                   Three Months ended
                                                        March 31,
                                                     2008      2007
                                                   --------- ---------
Customer services                                  $210,078  $201,232
Cost of services provided                           110,359   106,836
Depreciation and amortization                         6,631     6,686
Sales, general and administrative                    70,760    67,041
Gain on sales of assets                                 (21)       (7)
Interest income                                        (397)     (552)
                                                   --------- ---------
                                                    187,332   180,004
                                                   --------- ---------
INCOME BEFORE TAXES                                  22,746    21,228
                                                   --------- ---------
PROVISION FOR INCOME TAXES                            8,907     8,435
                                                   --------- ---------
NET INCOME                                         $ 13,839  $ 12,793
                                                   ========= =========

NET INCOME PER SHARE - BASIC                       $   0.14  $   0.13
                                                   ========= =========
NET INCOME PER SHARE - DILUTED                     $   0.14  $   0.13
                                                   ========= =========

Weighted average shares outstanding - basic          99,388   100,982
Weighted average shares outstanding - Diluted       100,401   103,094
                          Rollins, Inc.
                           (NYSE: ROL)

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

                  Wednesday, April 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 April 30, 2008
   Please dial 800-405-2236/303-590-3000, Pass code: 11112420

Contact Janet Jazmin at Financial Relations Board at 212-827-3777
                  Or email to

Source: Rollins, Inc.