Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ROLLINS INC | a11-9517_58k.htm |
Exhibit 99.1
For Further Information Contact
Harry J. Cynkus (404) 888-2922
FOR IMMEDIATE RELEASE
ROLLINS, INC. REPORTS FIRST QUARTER 2011
FINANCIAL RESULTS
ATLANTA, GEORGIA, April 27, 2011: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its first quarter ended March 31, 2011.
The Company recorded first quarter revenues of $271.6 million, an increase of 7.4% over the prior year’s first quarter revenue of $253.0 million. Net income increased 6.0% to $18.6 million or $0.13 per diluted share for the first quarter ended March 31, 2011, compared to $17.6 million or $0.12 per diluted share for the same period in 2010.
On January 25, 2011, Rollins increased its regular quarterly cash dividend to shareholders 16.7 percent to $0.07 per share. The Company also repurchased 256,284 shares at a weighted average price of $18.90 per share during the first quarter. In total, 2,281,962 additional shares may be purchased under the share repurchase program.
Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “We are pleased to report our strongest increase in revenue for a first quarter in more than five years, we are understandably pleased with our solid start of 2011.”
Mr. Rollins concluded, “Our opportunities for this year are exciting and we believe that each of our businesses is well positioned to contribute. We remain committed to growing our revenue, improving earnings, generating strong cash flows and maintaining a strong balance sheet. We are clearly focused on achieving our goals.”
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, Crane Pest Control, and TruTech, 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, www.trutechinc.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’s opportunities in 2011 are exciting; that each of the Company’s businesses is well positioned to contribute; and that the Company remains committed to growing its revenue, improving earnings, generating solid cash flow and maintaining a strong balance sheet. 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, 2010.
ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)
|
At March 31, (unaudited) |
|
2011 |
|
2010 |
| ||
|
ASSETS |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
23,340 |
|
$ |
14,149 |
|
|
Trade receivables, short-term |
|
69,524 |
|
62,937 |
| ||
|
Materials and supplies |
|
12,680 |
|
10,957 |
| ||
|
Deferred income taxes |
|
27,178 |
|
25,760 |
| ||
|
Other current assets |
|
14,522 |
|
11,842 |
| ||
|
Total Current Assets |
|
147,244 |
|
125,645 |
| ||
|
Equipment and property, net |
|
73,444 |
|
72,203 |
| ||
|
Goodwill |
|
212,130 |
|
189,925 |
| ||
|
Customer Contracts and Other Intangible assets |
|
146,742 |
|
141,705 |
| ||
|
Deferred income taxes |
|
14,336 |
|
17,644 |
| ||
|
Trade receivables, long-term |
|
9,786 |
|
9,021 |
| ||
|
Other assets |
|
10,523 |
|
9,190 |
| ||
|
Total Assets |
|
$ |
614,205 |
|
$ |
565,333 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES |
|
|
|
|
| ||
|
Accounts payable |
|
$ |
23,081 |
|
$ |
20,671 |
|
|
Accrued insurance |
|
19,918 |
|
16,754 |
| ||
|
Accrued compensation and related liabilities |
|
51,697 |
|
47,865 |
| ||
|
Unearned revenue |
|
92,193 |
|
89,604 |
| ||
|
Line of Credit |
|
25,000 |
|
15,000 |
| ||
|
Other current liabilities |
|
30,027 |
|
34,969 |
| ||
|
Total Current Liabilities |
|
241,916 |
|
224,863 |
| ||
|
Accrued insurance |
|
25,969 |
|
26,054 |
| ||
|
Accrued pension |
|
8,390 |
|
14,731 |
| ||
|
Long-term accrued liabilities |
|
36,710 |
|
28,022 |
| ||
|
Total Liabilities |
|
312,985 |
|
293,670 |
| ||
|
|
|
|
|
|
| ||
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
|
Common stock |
|
147,428 |
|
149,004 |
| ||
|
Retained earnings and other equity |
|
153,792 |
|
122,659 |
| ||
|
Total Stockholders’ Equity |
|
301,220 |
|
271,663 |
| ||
|
Total Liabilities and Stockholders’ Equity |
|
$ |
614,205 |
|
$ |
565,333 |
|
ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
|
|
|
First Quarter Ended |
| ||||
|
|
|
March 31, |
| ||||
|
|
|
2011 |
|
2010 |
| ||
|
REVENUES |
|
|
|
|
| ||
|
Customer services |
|
$ |
271,643 |
|
$ |
253,041 |
|
|
COSTS AND EXPENSES |
|
|
|
|
| ||
|
Cost of services provided |
|
140,898 |
|
130,975 |
| ||
|
Depreciation and amortization |
|
9,200 |
|
9,000 |
| ||
|
Sales, general and administrative |
|
91,498 |
|
84,915 |
| ||
|
Interest Expense |
|
192 |
|
99 |
| ||
|
|
|
241,788 |
|
224,989 |
| ||
|
INCOME BEFORE TAXES |
|
29,855 |
|
28,052 |
| ||
|
PROVISION FOR INCOME TAXES |
|
11,215 |
|
10,469 |
| ||
|
NET INCOME |
|
$ |
18,640 |
|
$ |
17,583 |
|
|
|
|
|
|
|
| ||
|
NET INCOME PER SHARE - BASIC |
|
$ |
0.13 |
|
$ |
0.12 |
|
|
NET INCOME PER SHARE - DILUTED |
|
$ |
0.13 |
|
$ |
0.12 |
|
|
|
|
|
|
|
| ||
|
Weighted average shares outstanding - basic |
|
147,473 |
|
148,810 |
| ||
|
Weighted average shares outstanding - diluted |
|
147,570 |
|
149,089 |
| ||
CONFERENCE CALL ANNOUNCEMENT
Rollins, Inc.
(NYSE: ROL)
Management will hold a conference call to discuss
First Quarter results on:
Wednesday, April 27, 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 877-941-8631domestic;
480-629-9818 international
at least 5 minutes before start time.
REPLAY: available through May 4, 2011
Please dial 800-406-7325/303-590-3000, Passcode: 4432545
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