Attached files
| file | filename |
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| 8-K - 8-K - ROLLINS INC | a11-4598_28k.htm |
Exhibit 99.1
For Further Information Contact
Harry J. Cynkus (404) 888-2922
FOR IMMEDIATE RELEASE
ROLLINS, INC. REPORTS FOURTH QUARTER AND FULL-YEAR 2010
FINANCIAL RESULTS
Company Posts 19th Consecutive Quarter of Improved Earnings Results
ATLANTA, GEORGIA, January 26, 2011: 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, 2010.
The Company recorded fourth quarter revenues of $279.9 million, an increase of 7.8% over the prior year’s fourth quarter revenue of $259.6 million. Net income increased 23.0% to $19.2 million or $0.13 per diluted share for the fourth quarter ended December 31, 2010, compared to $15.6 million or $0.10 per diluted share for the same period in 2009 excluding certain charges described below.
Revenues for the full year 2010 rose 5.9% to $1.137 billion compared to $1.074 billion for the prior year. Rollins’ net income for the full year rose 13.0% to $90.0 million, or $0.61 per diluted share, compared to net income of $79.6 million, or $0.53 per diluted share for the prior year excluding certain charges described below.
GAAP earnings for the fourth quarter and full year 2009 were $20.0 million or $0.13 per diluted share and $84.0 million or $0.56 per diluted share respectively.
Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “Once more, the Rollins family of pest control companies has exceeded our 2010 major objectives. We are pleased to have delivered solid financial results for the fourth quarter and for the year. These results reflect the underlying strength of our business and our initiatives to benefit our customers, employees, and shareholders.”
Mr. Rollins concluded, “The Company is well-positioned for 2011, and we are optimistic that we have the team and plans to again achieve record results. As we move into a new decade, we are committed to work on the key drivers of the business that have helped make Rollins, Inc., a premier North American consumer and commercial services company.”
Reported results for fourth quarter 2009 as previously disclosed, include a tax benefit related to the conversion of Orkin to a limited liability company, net of cost associated with a Canadian restructuring and repatriation of cash in 2009, and an impairment charge, which combined increased reported fourth quarter 2009 earnings by a net $0.03 per diluted share.
Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, HomeTeam Pest Defense, Western Pest Services, PCO Services, The Industrial Fumigant Company, Waltham Services 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, Europe, 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.orkincanada.ca, www.indfumco.com, www.walthamservices.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 statements about the Company’s belief that the Company has the team and plans to again achieve record results and the Company’s commitment to work on the key drivers of its business. 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 the Company’s business; the degree of success of the Company’s pest and termite process, 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; the Company’s ability to attract and retain skilled workers, and 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, 2009.
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)
|
At December 31, (unaudited) |
|
2010 |
|
2009 |
| ||
|
ASSETS |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
20,913 |
|
$ |
9,504 |
|
|
Trade receivables, short-term |
|
67,185 |
|
60,590 |
| ||
|
Accounts Receivable - Other |
|
3,248 |
|
2,164 |
| ||
|
Materials and supplies |
|
11,899 |
|
10,208 |
| ||
|
Deferred income taxes |
|
27,396 |
|
25,839 |
| ||
|
Other current assets |
|
20,380 |
|
12,225 |
| ||
|
Total Current Assets |
|
151,021 |
|
120,530 |
| ||
|
|
|
|
|
|
| ||
|
Trade receivables, long-term |
|
10,193 |
|
9,356 |
| ||
|
Equipment and property, net |
|
74,013 |
|
74,644 |
| ||
|
Goodwill |
|
210,779 |
|
189,658 |
| ||
|
Customer Contracts |
|
117,291 |
|
121,176 |
| ||
|
Other Intangible Assets |
|
30,265 |
|
24,785 |
| ||
|
Deferred income taxes |
|
15,106 |
|
17,901 |
| ||
|
Other assets |
|
10,346 |
|
8,446 |
| ||
|
Total Assets |
|
$ |
619,014 |
|
$ |
566,496 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES |
|
|
|
|
| ||
|
Accounts payable |
|
$ |
25,940 |
|
$ |
15,841 |
|
|
Accrued insurance |
|
18,652 |
|
16,567 |
| ||
|
Accrued compensation and related liabilities |
|
61,817 |
|
57,377 |
| ||
|
Unearned revenue |
|
85,489 |
|
85,883 |
| ||
|
Line of Credit |
|
26,000 |
|
30,000 |
| ||
|
Other current liabilities |
|
28,543 |
|
27,085 |
| ||
|
Total Current Liabilities |
|
246,441 |
|
232,753 |
| ||
|
|
|
|
|
|
| ||
|
Accrued pension |
|
12,515 |
|
14,895 |
| ||
|
Long-term accrued liabilities |
|
62,088 |
|
54,282 |
| ||
|
Total Liabilities |
|
321,044 |
|
301,930 |
| ||
|
|
|
|
|
|
| ||
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
|
Common stock |
|
147,181 |
|
148,357 |
| ||
|
Retained earnings and other equity |
|
150,789 |
|
116,209 |
| ||
|
Total Stockholders’ Equity |
|
297,970 |
|
264,566 |
| ||
|
Total Liabilities and Stockholders’ Equity |
|
$ |
619,014 |
|
$ |
566,496 |
|
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
|
|
|
Fourth Quarter Ended |
|
Twelve Months Ended |
| ||||||||
|
|
|
December 31, |
|
December 31, |
| ||||||||
|
|
|
2010 |
|
2009 |
|
2010 |
|
2009 |
| ||||
|
REVENUES |
|
|
|
|
|
|
|
|
| ||||
|
Customer services |
|
$ |
279,928 |
|
$ |
259,567 |
|
$ |
1,136,890 |
|
$ |
1,073,958 |
|
|
COSTS AND EXPENSES |
|
|
|
|
|
|
|
|
| ||||
|
Cost of services provided |
|
147,622 |
|
136,562 |
|
583,089 |
|
551,002 |
| ||||
|
Depreciation and amortization |
|
9,365 |
|
9,045 |
|
36,408 |
|
37,169 |
| ||||
|
Sales, general and administrative |
|
92,506 |
|
88,563 |
|
373,288 |
|
355,590 |
| ||||
|
Loss on impairment/sale of assets |
|
118 |
|
2,935 |
|
123 |
|
2,942 |
| ||||
|
Interest expense, net |
|
172 |
|
118 |
|
437 |
|
964 |
| ||||
|
|
|
249,783 |
|
237,223 |
|
993,345 |
|
947,667 |
| ||||
|
INCOME BEFORE TAXES |
|
30,145 |
|
22,344 |
|
143,545 |
|
126,291 |
| ||||
|
PROVISION FOR INCOME TAXES |
|
10,939 |
|
2,383 |
|
53,543 |
|
42,307 |
| ||||
|
NET INCOME |
|
$ |
19,206 |
|
$ |
19,961 |
|
$ |
90,002 |
|
$ |
83,984 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
NET INCOME PER SHARE - BASIC |
|
$ |
0.13 |
|
$ |
0.13 |
|
$ |
0.61 |
|
$ |
0.56 |
|
|
NET INCOME PER SHARE - DILUTED |
|
$ |
0.13 |
|
$ |
0.13 |
|
$ |
0.61 |
|
$ |
0.56 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Weighted average shares outstanding - basic |
|
147,184 |
|
148,456 |
|
148,030 |
|
149,179 |
| ||||
|
Weighted average shares outstanding - diluted |
|
147,306 |
|
148,845 |
|
148,231 |
|
149,624 |
| ||||
ROLLINS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIALS
(in thousands except per share data)
(unaudited)
|
|
|
Fourth Quarter Ended |
|
Twelve Months Ended |
| ||
|
|
|
December 31, 2009 |
|
December 31, 2009 |
| ||
|
Net income as reported |
|
$ |
19,961 |
|
$ |
83,984 |
|
|
Add: Impairment of project (net of taxes) |
|
1,809 |
|
1,809 |
| ||
|
Less: Net tax benefit |
|
(6,152 |
) |
(6,152 |
) | ||
|
Adjusted earnings |
|
$ |
15,618 |
|
$ |
79,641 |
|
|
Adjusted earnings per share |
|
$ |
0.10 |
|
$ |
0.53 |
|
|
Weighted average shares outstanding - diluted |
|
148,845 |
|
149,624 |
| ||
ROLLINS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIALS
(in thousands except per share data)
(unaudited)
|
|
|
Fourth Quarter Ended |
|
Twelve Months Ended |
| ||
|
|
|
December 31, 2009 |
|
December 31, 2009 |
| ||
|
Net income per share - diluted as reported |
|
$ |
0.13 |
|
$ |
0.56 |
|
|
Add: Impairment of project (net of taxes) |
|
$ |
0.01 |
|
$ |
0.01 |
|
|
Less: Net tax benefit |
|
$ |
(0.04 |
) |
$ |
(0.04 |
) |
|
Adjusted earnings per share - diluted |
|
$ |
0.10 |
|
$ |
0.53 |
|
CONFERENCE CALL ANNOUNCEMENT
Rollins, Inc.
(NYSE: ROL)
Management will hold a conference call to discuss
Fourth Quarter results on:
Wednesday, January 26, 2011 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 877-941-8632 domestic;
480-629-9820 international
at least 5 minutes before start time.
REPLAY: available through February 3, 2011
Please dial 800-406-7325/303-590-3030, Passcode: 4399060
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