Rollins, Inc. Reports First Quarter 2013 Financial Results
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
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
Please dial 800-762-8779 domestic;
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
Contact Samantha Alphonso at Financial Relations Board at 212-827-3746
Or email to email@example.com
For Further Information Contact
Harry J. Cynkus (404) 888-2922
SOURCE Rollins, Inc.