Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

FOR IMMEDIATE RELEASE

 

ROLLINS, INC. REPORTS SECOND QUARTER AND SIX MONTHS 2012

FINANCIAL RESULTS

 

ATLANTA, GEORGIA, July 25, 2012: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its second quarter ended June 30, 2012.

 

The Company recorded second quarter revenues of $334.9 million, an increase of 4.5% over the prior year’s second quarter revenue of $320.4 million.  Net income increased 6.7% to $33.1 million or $0.23 per diluted share for the second quarter ended June 30, 2012, compared to $31.1 million or $0.21 per diluted share for the same period in 2011.

 

Rollins’ revenues rose 5.4% for the first six months of 2012 to $624.3 million compared to $592.1 million for the prior year.  Net income for the first six months of 2012 was $56.2 million, or $0.38 per diluted share, compared to net income of $49.7 million, or $0.34 per diluted share for the same period last year.

 

In the second quarter, the Company repurchased 713,781 shares at a weighted average price of $21.06 per share bringing the total number of shares repurchased year-to-date to 781,781 at a weighted average price of $20.93.  In total, 5,298,183 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 another solid quarter.  Our revenue growth reported this quarter and for the first six months of this year reflects the contributions from all our brands.  We remain focused on our customer service and sales programs.  Our team’s consistent execution and strong operational initiatives should continue to contribute to a successful 2012.”

 

Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin LLC., HomeTeam Pest Defense, Western Pest Services, Orkin Canada, The Industrial Fumigant Company, Waltham Services LLC., Crane Pest Control and Trutech LLC., the Company provides essential pest control services and protection against termite damage, rodents and insects to more than 2 million customers in the United States, Canada, Mexico, Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe and Africa from more than 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 focus on customer service and sales programs and the Company’s belief that its consistent execution and strong operational initiatives should continue to contribute to a successful 2012.  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, 2011.

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At June 30, (unaudited)		2012			2011
ASSETS
Cash and cash equivalents		$	62,060		$	25,820
Trade accounts receivables, net		73,784			71,457
Financed receivables, net		12,822			12,068
Materials and supplies		12,162			12,305
Deferred income taxes		30,477			27,628
Other current assets		19,004			20,198
Total Current Assets		210,309			169,476
Equipment and property, net		76,963			74,026
Goodwill		210,971			213,705
Customer contracts and other intangible assets		137,865			144,947
Deferred income taxes		21,088			13,156
Financed receivables, long-term		12,569			11,319
Other assets		11,009			10,503
Total Assets		$	680,774		$	637,132
LIABILITIES
Accounts payable		$	29,676		$	31,853
Accrued insurance		22,244			20,580
Accrued compensation and related liabilities		56,234			60,951
Unearned revenue		96,127			93,387
Line of credit		—			10,000
Other current liabilities		36,459			32,478
Total Current Liabilities		240,740			249,249
Accrued insurance		28,185			26,830
Accrued pension		29,793			8,253
Long-term accrued liabilities		37,749			39,617
Total Liabilities		336,467			323,949
STOCKHOLDERS’ EQUITY
Common stock		146,071			146,904
Retained earnings and other equity		198,236			166,279
Total stockholders’ equity		344,307			313,183
Total Liabilities and Stockholders’ Equity		$	680,774		$	637,132

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

		Second Quarter Ended						Six Months Ended
		June 30,						June 30,
		2012			2011			2012			2011
REVENUES
Customer services		$	334,872		$	320,436		$	624,337		$	592,079
COSTS AND EXPENSES
Cost of services provided		165,993			159,645			314,075			300,543
Depreciation and amortization		9,613			9,288			19,380			18,488
Sales, general and administrative		106,068			101,757			200,892			193,255
Interest Expense		20			178			71			370
		281,694			270,868			534,418			512,656
INCOME BEFORE TAXES		53,178			49,568			89,919			79,423
PROVISION FOR INCOME TAXES		20,051			18,507			33,712			29,722
NET INCOME		$	33,127		$	31,061		$	56,207		$	49,701
NET INCOME PER SHARE - BASIC		$	0.23		$	0.21		$	0.38		$	0.34
NET INCOME PER SHARE - DILUTED		$	0.23		$	0.21		$	0.38		$	0.34
Weighted average shares outstanding - basic		146,417			147,245			146,557			147,358
Weighted average shares outstanding - diluted		146,428			147,314			146,571			147,441

 

 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

Second Quarter 2012 results on:

 

Wednesday, July 25, 2012 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 877-941-6009 domestic;

480-629-9819 international
at least 5 minutes before start time.

 

REPLAY: available through August 1, 2012

Please dial 800-406-7325/303-590-3030, Passcode: 4551562

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