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Last updated on April 18, 2014 at 15:51 EDT

Rollins, Inc. Reports First Quarter 2013 Financial Results

April 24, 2013

Company posts 28th consecutive quarter of improved earnings results

ATLANTA, April 24, 2013 /PRNewswire/ — Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for its first quarter ended March 31, 2013. Revenues grew 3.5% to $299.7 million compared to $289.5 million for the first quarter ended March 31, 2012.

The Company recorded net income of $23.2 million or $0.16 per diluted share for the first quarter ended March 31, 2013 compared to $23.1 million or $0.16 per diluted share for the same period in 2012. On January 22, 2013, Rollins also increased its regular quarterly cash dividend to shareholders 12.5% to $0.09 per share.

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “Our residential and commercial pest control sales start accelerating as the weather warms and pest activity increases. In this regard, the first quarter of 2013 was disappointing, as it was the coldest with the greatest snow fall, in decades. We were pleased to be able to report an increase in revenue however. This was particularly gratifying having come off of a record first quarter in 2012 when the weather was the warmest in over a century. Frankly, this was the most dramatic year-to-year weather reversal that we’ve ever experienced. Profits were negatively impacted from being staffed for the anticipated revenue the first quarter. We did maintain our record of profit increases with a modest improvement over 2012.”

Mr. Rollins concluded, “Spring has finally sprung and we are very excited about the opportunities we have for each of our businesses through the balance of the year. We are well positioned to achieve solid revenue growth with improved earnings and strong cash flows. Thankfully, the bugs always come back.”

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, Central America, South America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe, Africa and Mexico 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 that we are excited about the opportunities we have for each of our business through the balance of the year, and our belief that we are well positioned to achieve solid revenue growth with improved earnings and strong cash flow. 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, 2012.

                     ROLLINS, INC. AND SUBSIDIARIES

         CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

                             (in thousands)

    At March 31, (unaudited)                          2013               2012
    -----------------------                           ----               ----

    ASSETS

    Cash and cash equivalents                      $82,479            $59,684

    Trade accounts receivables, net                 68,194             63,790

    Financed receivables, net                       10,898             11,386

    Materials and supplies                          11,801             10,874

    Deferred income taxes, net                      32,839             29,718

    Other current assets                            18,995             15,123

    Total Current Assets                           225,206            190,575
                                                   -------            -------

    Equipment and property, net                     83,295             77,146

    Goodwill                                       212,280            211,237

    Customer contracts and other intangible
     assets, net                                   136,458            139,580

    Deferred income taxes                           26,582             21,775

    Financed receivables, long-term, net            11,214             11,441

    Other assets                                    12,403             11,052

        Total Assets                              $707,438           $662,806
                                                  ========           ========

    LIABILITIES

    Accounts payable                               $23,078            $19,214

    Accrued insurance, current                      24,929             20,430

    Accrued compensation and related
     liabilities                                    50,218             52,592

    Unearned revenue                                96,251             92,778

    Other current liabilities                       39,382             43,569
                                                    ------             ------

    Total Current Liabilities                      233,858            228,583
                                                   -------            -------

    Accrued insurance, less current portion         31,740             30,203

    Accrued pension                                 43,017             29,850

    Long-term accrued liabilities                   33,857             37,915
                                                    ------             ------

    Total Liabilities                              342,472            326,551
                                                   -------            -------

    STOCKHOLDERS' EQUITY

    Common stock                                   146,279            146,803

    Retained earnings and other equity             218,687            189,452

    Total stockholders' equity                     364,966            336,255
                                                   -------            -------

    Total Liabilities and Stockholders' Equity    $707,438           $662,806
                                                  ========           ========

                        ROLLINS, INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME

                     (in thousands except per share data)

                                 (unaudited)

                                                    First Quarter Ended

                                                       March 31,
                                                       ---------

                                                        2013                2012
                                                        ----                ----

    REVENUES

    Customer services                               $299,714            $289,465

    COSTS AND EXPENSES

    Cost of services provided                        155,606             148,082

    Depreciation and amortization                      9,894               9,767

    Sales, general and administrative                 99,134              94,824

    Interest (income)/expense                            (45)                 51

                                                     264,589             252,724

    INCOME BEFORE INCOME TAXES                        35,125              36,741

    PROVISION FOR INCOME TAXES                        11,946              13,661

    NET INCOME                                       $23,179             $23,080
                                                     =======             =======

    NET INCOME PER SHARE - BASIC                       $0.16               $0.16
                                                       =====               =====

    NET INCOME PER SHARE - DILUTED                      0.16                0.16

    Weighted average shares outstanding -
     basic                                           146,238             146,697

    Weighted average shares outstanding -
     diluted                                         146,238             146,714

CONFERENCE CALL ANNOUNCEMENT
Rollins, Inc.
(NYSE: ROL)

Management will hold a conference call to discuss
First Quarter 2013 results on:

Wednesday, April 24, 2013 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 800-762-8779 domestic;
480-629-9645 international
at least 5 minutes before start time.

REPLAY: available through May 1, 2013
Please dial 800-406-7325/303-590-3030, Passcode: 4612026
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

For Further Information Contact
Harry J. Cynkus (404) 888-2922

SOURCE Rollins, Inc.


Source: PR Newswire