Exhibit 99.1 For Further Information Contact Harry J. Cynkus (404) 888-2922 FOR IMMEDIATE RELEASE ROLLINS REPORTS FIRST QUARTER 2004 RESULTS Highlights o Revenue increased 2.3%. o Net Income rose 19.9% to $8.7 million. o Cash increased by $38.3 million to $97.9 million. ATLANTA, GEORGIA, April 28, 2004: Rollins, Inc. (NYSE:ROL), a premier North American consumer services company, today reported first quarter revenues increased 2.3% to $158.7 million for the period ended March 31, 2004 compared to $155.1 million for the prior year quarter. Net income increased 19.9% to $8.7 million or $0.19 per diluted share for the quarter ended March 31, 2004, compared to $7.3 million or $0.16 per diluted share for the same period in 2003. The Company's balance sheet reflected the continued strong earnings with cash and short-term investments of $97.9 million, total assets of $363.0 million and stockholders' equity increasing to $147.8 million. Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "We have achieved another quarter of solid performance and our 17th consecutive quarter of increased earnings per share. We are also especially pleased by the momentum created by our new sales and marketing initiatives, as was evidenced by increases in leads and proposals. In addition, our service programs have been complimentary to these initiatives contributing to customer base growth through better customer retention." "In March we announced that we had signed a definitive purchase agreement with Western Industries to acquire Western Pest Services. We have received FTC approval and expect to close this acquisition at the end of this month. Western Pest Services today ranks as the 8th largest company in the industry and provides pest elimination and prevention to over 130,000 homes and businesses in the eastern United States. We believe Western is one of the premier companies in the industry and look forward to joining forces with this fine team of professionals." Rollins, Inc. is one of the nation's largest consumer services companies. Through its wholly owned subsidiary, Orkin, Inc., the Company provides essential pest control services and protection against termite damage, rodents and insects to approximately 1.6 million customers in the United States, Canada and Mexico from over 400 locations. You can learn more about Orkin by visiting our Web sites at www.orkin.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 The above release contains statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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 potential acquisitions; climate and weather trends; competitive factors and pricing practices; the cost reduction benefits of the corporate restructuring may not be as great as expected or eliminated positions may have to be reinstated in the future; 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. ROLLINS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (In thousands)
2004 2003 At March 31 (Unaudited) (Unaudited) - -------------------------------------------------------------------------------------------------------------------------- ASSETS Cash and Short-Term Investments $ 97,888 $ 54,351 Marketable Securities 0 0 Trade Receivables, Net 45,549 48,204 Materials and Supplies 10,147 11,188 Deferred Income Taxes 20,580 20,088 Other Current Assets 10,092 11,533 ----------------- --------------- Current Assets 184,256 145,364 Equipment and Property, Net 34,618 36,338 Goodwill and Other Intangible Assets 101,445 106,681 Deferred Income Taxes 17,287 43,345 Other Assets 25,350 0 ----------------- --------------- Total Assets $ 362,956 $ 331,728 ================= =============== - ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Accounts Payable $ 15,325 $ 12,975 Accrued Insurance 13,050 11,075 Accrued Payroll 26,913 23,956 Unearned Revenue 50,702 46,038 Other Current Liabilities 45,483 39,843 ----------------- --------------- Current Liabilities 151,473 133,887 Long-Term Accrued Liabilities 63,640 98,474 ----------------- --------------- Total Liabilities 215,113 232,361 ----------------- --------------- - ------------------------------------------------------------------------------------------------------------------------ STOCKHOLDERS' EQUITY Common Stock 45,399 45,134 Retained Earnings and Other Equity 102,444 54,233 ----------------- --------------- Total Stockholders' Equity 147,843 99,367 ----------------- --------------- Total Liabilities and Stockholders' Equity $ 362,956 $ 331,728 ================= ===============
ROLLINS, INC. AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED INCOME FOR THE FIRST QUARTER ENDED MARCH 31 (In thousands except per share data) First Quarter --------------------------- 2004 2003 (Unaudited) (Unaudited) ------------ ------------- REVENUES $ 158,692 $ 155,122 ------------ ------------- COSTS AND EXPENSES Cost of Services Provided 85,357 83,926 Depreciation and Amortization 4,657 5,156 Sales, General and Administrative 54,175 54,376 (Gain)/Loss on Sales of Assets 1 (2) Interest (Income)/Expense (150) (66) ------------ ------------- TOTAL COSTS AND EXPENSES 144,040 143,390 ------------ ------------- INCOME BEFORE INCOME TAXES 14,652 11,732 PROVISION FOR INCOME TAXES 5,934 4,458 ------------ ------------- NET INCOME $ 8,718 $ 7,274 ============ ============= EARNINGS PER SHARE - BASIC $ 0.19 $ 0.16 ============ ============= EARNINGS PER SHARE - DILUTED $ 0.19 $ 0.16 ============ ============= AVERAGE SHARES OUTSTANDING - BASIC 45,298 44,912 AVERAGE SHARES OUTSTANDING - DILUTED 46,643 46,110 ROLLINS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31 (In thousands) (Unaudited)
2004 2003 --------------- -------------- Operating Activities Net Income $ 8,718 $ 7,274 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation and Amortization 4,657 5,156 Other Operating Activities 6,815 5,724 --------------- -------------- Net Cash Provided by Operating Activities 20,190 18,154 --------------- -------------- Investing Activities Purchases of Equipment and Property (1,739) (961) Net Cash Used for Acquisition of Companies (158) (385) Sale/(Purchase) of Marketable Securities, Net 21,866 0 --------------- -------------- Net Cash Provided by (Used In) Investing Activities 19,969 (1,346) --------------- -------------- Financing Activities Dividends Paid (2,718) (2,247) Common Stock Purchased 0 0 Other 907 1,475 --------------- -------------- Net Cash Used in Financing Activities (1,811) (772) --------------- -------------- Net Increase in Cash and Short-Term Investments 38,348 16,036 Cash and Short-Term Investments at Beginning of Year 59,540 38,315 --------------- -------------- Cash and Short-Term Investments at End of Period $ 97,888 $ 54,351 =============== ==============
CONFERENCE CALL Rollins, Inc. (NYSE: ROL) Management will hold a conference call to discuss first quarter results on: Wednesday, April 28, 2004 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 800-240-2134 domestic; 303-262-2193 international at least 5 minutes before start time. REPLAY: through May 5, 2004 at 11:00 p.m. Please dial 800-405-2236/303-590-3000, Passcode: 577126 THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT www.viavid.net Questions?: Janet Cruz at FRB/Weber Shandwick at 212-445-8453 or email to jcruz@webershandwick.com 640 Fifth Avenue T: 212/445-8000 New York, NY 10019 F: 212/445-8001