Rollins, Inc. Reports Record Fourth Quarter and Full-Year 2007 Financial Results

Company Posts 10th Consecutive Year of Improving Financial Performance

-- Revenue increased 5.5% for the quarter and 4.2% for full year

-- Diluted Earnings per share rose from $0.56 to $0.64 for 2007, a 14.3% increase and 20% for the quarter from $0.10 to $0.12

-- Cash and Cash Equivalents increased 12.5% to $71.3 million

ATLANTA--(BUSINESS WIRE)--

Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for its fourth quarter and year ended December 31, 2007.

The Company recorded fourth quarter revenues of $216.0 million, an increase of 5.5% over the prior year's fourth quarter revenue of $204.7 million. Net income increased 13.2% to $11.9 million or $0.12 per diluted share for the fourth quarter ended December 31, 2007, compared to $10.5 million or $0.10 per diluted share for the same period in 2006.

Revenues for full year 2007 rose 4.2% to $894.9 million, compared to $858.9 million for the prior year. Rollins' net income for the full year rose 12% to $64.7 million or $0.64 per diluted share compared to net income of $57.8 million or $0.56 per diluted share for the prior year.

Rollins' balance sheet continued to grow with total assets increasing to $475.2 million and stockholder's equity growth to $233.6 million. The Company ended the year with cash and cash equivalents of $71.3 million, up 12.5% over last year.

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "The positive performance we achieved in our fourth quarter and full year reflect the success of our sales and service programs. We are seeing the benefits from the investments we are making that are generating improved sales growth as well as improving service efficiency."

Mr. Rollins concluded, "We are excited about our Company's opportunities in the new year. The continued development and deployment of our key programs should enable us to maintain our momentum. We are very proud of our people who have worked diligently to make 2007 such a success and likewise will be key in 2008."

Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, Inc., PCO Services, 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 1.7 million customers in the United States, Canada, Mexico, Central America, the Caribbean, the Middle East and Asia from over 400 locations. You can learn more about our subsidiaries by visiting our Web sites at www.orkin.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 the investments the Company is making are generating improved sales growth and service efficiency; the Company's excitement about the Company's opportunities for the new year; and the Company's belief that the continued development and deployment of its key programs should enable the Company to maintain its momentum. 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, 2006.

                    ROLLINS, INC. AND SUBSIDIARIES
            CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
                            (in thousands)
                                                  2007        2006
At December 31,                                (unaudited) (unaudited)
----------------------------------------------------------------------
ASSETS
  Cash and cash equivalents                       $ 71,280    $ 63,344
  Trade receivables, short-term                     54,457      52,693
  Materials and supplies                             8,846       8,401
  Deferred income taxes                             17,162      19,435
  Other current assets                               8,495       7,200
                                               ----------- -----------
   Total Current Assets                            160,240     151,073

  Equipment and property, net                       77,370      72,141
  Goodwill                                         126,684     125,161
  Customer Contracts                                63,056      67,761
  Other Intangible assets                            9,232       9,294
  Deferred income taxes                              7,576      14,069
  Trade receivables, long-term                       8,409       8,796
  Prepaid Pension                                   16,624           -
  Other assets                                       6,037       4,880
                                               ----------- -----------
Total Assets                                      $475,228    $453,175
                                               =========== ===========

LIABILITIES
  Capital leases                                  $  1,186    $    498
  Accounts payable                                  19,140      16,309
  Accrued insurance                                 13,505      14,310
  Accrued compensation and related liabilities      45,605      47,305
  Unearned revenue                                  81,678      79,441
  Other current liabilities                         26,587      27,343
                                               ----------- -----------
   Total Current Liabilities                       187,701     185,206

  Capital leases, less current portion                 601         124
  Accrued pension                                        -       6,946
  Long-term accrued liabilities                     53,373      49,440
                                               ----------- -----------
   Total Liabilities                               241,675     241,716
                                               ----------- -----------

STOCKHOLDERS' EQUITY
  Common stock                                     100,636     101,837
  Retained earnings and other equity               132,917     109,622
                                               ----------- -----------
   Total Stockholders' Equity                      233,553     211,459
                                               ----------- -----------
  Total Liabilities and Stockholders' Equity      $475,228    $453,175
                                               =========== ===========
                    ROLLINS, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF INCOME
     FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED DECEMBER 31,
                 (in thousands except per share data)
                             (unaudited)

                              Fourth Quarter Ended Twelve Months Ended
                                  December 31,        December 31,
                              -------------------- -------------------
                                 2007      2006      2007      2006
                              ---------- --------- --------- ---------
REVENUES
  Customer services            $215,954  $204,653  $894,920  $858,878
COSTS AND EXPENSES
  Cost of services provided     117,199   112,601   468,665   457,869
  Depreciation and
   amortization                   6,586     6,460    27,068    26,860
  Sales, general and
   administrative                74,633    69,250   296,615   280,578
  (Gain)/Loss on sale of
   assets                            61       (65)      (52)      (81)
  Interest income                  (749)     (539)   (2,289)   (1,507)
                              ---------- --------- --------- ---------
                                197,730   187,707   790,007   763,719
                              ---------- --------- --------- ---------
INCOME BEFORE TAXES              18,224    16,946   104,913    95,159
                              ---------- --------- --------- ---------
PROVISION FOR INCOME TAXES        6,290     6,407    40,182    37,350
                              ---------- --------- --------- ---------
NET INCOME                     $ 11,934  $ 10,539  $ 64,731  $ 57,809
                              ========== ========= ========= =========

NET INCOME PER SHARE - BASIC   $   0.12  $   0.10  $   0.65  $   0.57
                              ========== ========= ========= =========
NET INCOME PER SHARE - DILUTED $   0.12  $   0.10  $   0.64  $   0.56
                              ========== ========= ========= =========

Weighted average shares
 outstanding - basic             99,854   100,662   100,299   100,747
Weighted average shares
 outstanding - Diluted          101,051   103,090   101,409   103,314
                   CONFERENCE CALL ANNOUNCEMENT
                          Rollins, Inc.
                           (NYSE: ROL)

        Management will hold a conference call to discuss
                    Fourth quarter results on:

                 Wednesday, January 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 800-240-2430 domestic;
                    303-262-2140 international
              at least 5 minutes before start time.

            REPLAY: available through January 30, 2008
    Please dial 800-405-2236/303-590-3000, Passcode: 11106089
      THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT
                          www.viavid.net

                            Questions?
Contact Janet Jazimin at Financial Relations Board at 212-827-3777
         Or email to jjazimin@financialrelationsboard.com

Source: Rollins, Inc.