Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS THIRD QUARTER AND NINE MONTHS 2010

FINANCIAL RESULTS

 

ATLANTA, GEORGIA, October 27, 2010: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for its third quarter ended September 30, 2010.  The Company recorded third quarter revenues of $305.1 million, an increase of 6.4% over the prior year’s third quarter revenue of $286.9 million.  Net income increased 12.2% to $25.5 million or $0.26 per diluted share for the third quarter ended September 30, 2010, compared to $22.7 million or $0.23 per diluted share for the same period in 2009.

 

Revenues for the first nine months of 2010 increased 5.2% to $857.0 million compared to $814.4 million for the first nine months of 2009.  Rollins’ net income for the first nine months of 2010 rose 10.6% to $70.8 million, or $0.71 per diluted share, compared to net income of $64.0 million, or $0.64 per diluted share for the same period in 2009.

 

Rollins’ balance sheet remains strong with total assets of $607.6 million and stockholders’ equity increasing to $286.4 million.

 

In the third quarter, the Company announced that it repurchased 372,499 shares of common stock at a weighted average price of $20.93 per share during the third quarter bringing the total number of shares repurchased year-to-date to 1,259,427 at a weighted average price of $20.92.  In total, 1,692,164 additional shares may be purchased under the share repurchase program.

 

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “This quarter reflects a record performance in revenue and profits.  Our revenue growth reflects contributions from all of our businesses.  As you would expect, we are pleased with the results from our operational initiatives and their impact on customer and employee retention, as well as the bottom line.”

 

Mr. Rollins concluded, “Our progress in the first nine months of this year has been solid and we are on target to meet our business objectives for the year.  Our focus is squarely on providing a good job for our employees, great service to our customers and solid earnings improvement for our shareholders.  We remain confident in our strategy and action plans, and are working hard to grow the business both organically and through strategic acquisitions.”

 

 

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, Mexico, 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 is on target to meet its business objectives for the year; the Company is focused on providing a good job for its employees, great service to its customers, and solid earnings improvement for its shareholders; the Company’s confidence in its strategy and action plans; and the Company’s work to grow its business both organically and through strategic acquisitions.  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 September 30, (unaudited)		2010			2009
ASSETS
Cash and cash equivalents		$	20,250		$	26,221
Trade receivables, short-term		76,973			70,750
Accounts Receivable - Other		2,218			2,338
Materials and supplies		11,167			10,341
Deferred income taxes		27,092			17,628
Other current assets		13,161			14,143
Total Current Assets		150,861			141,421
Trade receivables, long-term		10,416			9,599
Equipment and property, net		70,782			77,223
Goodwill		200,639			189,355
Customer Contracts		119,896			120,510
Other Intangible Assets		25,636			22,742
Deferred income taxes		19,841			16,669
Other assets		9,554			8,008
Total Assets		$	607,625		$	585,527
LIABILITIES
Accounts payable		$	25,693		$	16,616
Accrued insurance		18,660			15,605
Accrued compensation and related liabilities		60,214			58,208
Unearned revenue		95,711			95,361
Line of Credit		24,000			45,000
Other current liabilities		31,378			29,873
Total Current Liabilities		255,656			260,663
Accrued insurance		25,566			27,687
Accrued pension		11,365			14,992
Long-term accrued liabilities		28,597			28,957
Total Liabilities		321,184			332,299
STOCKHOLDERS’ EQUITY
Common stock		98,107			99,040
Retained earnings and other equity		188,334			154,188
Total Stockholders’ Equity		286,441			253,228
Total Liabilities and Stockholders’ Equity		$	607,625		$	585,527

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

		Third Quarter Ended						Nine Months Ended
		September 30,						September 30,
		2010			2009			2010			2009
REVENUES
Customer services		$	305,118		$	286,852		$	856,962		$	814,391
COSTS AND EXPENSES
Cost of services provided		156,064			147,436			435,467			414,440
Depreciation and amortization		9,076			9,321			27,043			28,124
Sales, general and administrative		98,909			93,233			280,782			267,027
Loss on sale of assets		—			30			5			7
Interest expense, net		100			159			265			846
		264,149			250,179			743,562			710,444
INCOME BEFORE TAXES		40,969			36,673			113,400			103,947
PROVISION FOR INCOME TAXES		15,456			13,940			42,604			39,924
NET INCOME		$	25,513		$	22,733		$	70,796		$	64,023
NET INCOME PER SHARE - BASIC		$	0.26		$	0.23		$	0.72		$	0.64
NET INCOME PER SHARE - DILUTED		$	0.26		$	0.23		$	0.71		$	0.64
Weighted average shares outstanding - basic		98,388			99,125			98,876			99,615
Weighted average shares outstanding - diluted		98,505			99,428			99,029			99,924

 

 

 

CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

Third Quarter results on:

 

Wednesday, October 27, 2010 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 877-941-7133 domestic;

480-629-9821 international

at least 5 minutes before start time.

 

REPLAY: available through November 4, 2010

Please dial 800-406-7325/303-590-3030, Passcode: 4372650

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