Last updated on April 16, 2014 at 11:49 EDT

Rollins, Inc. Reports Second Quarter And Six Months 2013 Financial Results

July 24, 2013

Company posts 29th consecutive quarter of improved earnings results

ATLANTA, July 24, 2013 /PRNewswire/ — Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its second quarter and six months ended June 30, 2013.

The Company recorded second quarter revenues of $350.8 million, an increase of 4.8% compared to $334.9 million in the prior year’s second quarter. Net income increased 8.7% to $36.0 million or $0.25 per diluted share for the second quarter ended June 30, 2013, compared to $33.1million or $0.23 per diluted share for the same period in 2012.

Rollins’ revenues rose 4.2% for the first six months of 2013 to $650.5 million compared to $624.3 million for the prior year. Net income for the first six months of 2013 was $59.2 million, or $0.40 per diluted share, compared to net income of $56.2 million, or $0.38 per diluted share for the same period last year.

In the second quarter, the Company repurchased 172,589 shares at a weighted average price of $24.41 per share. In total, 5,125,594 additional shares may be purchased under the share repurchase program.

Commenting on the Company’s results, Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. said, “We are very pleased with the solid financial results our Company reported for the second quarter. We are particularly pleased about the growth we experienced in revenues, which accelerated over our first quarter. This improvement reflects the positive impact of our new marketing and sales programs.”

Mr. Rollins concluded, “Our progress in the first six months of this year has been encouraging. We are confident that as we continue to execute our plans that we will achieve our goals for the year relative to growth and improving profitability.”

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.

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 regarding the Company’s belief that its improved operating results reflect the positive impact of the Company’s new marketing and sales programs, and the Company’s confidence that it will continue to execute its plan and will achieve its goals for the year relative to growth and improving profitability. 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.

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

                                  ROLLINS, INC. AND SUBSIDIARIES


                                          (in thousands)

    At June 30, (unaudited)                                                       2013     2012
    ----------------------                                                        ----     ----


    Cash and cash equivalents                                                  $91,597  $62,060

    Trade accounts receivables, net                                             79,015   73,784

    Financed receivables, net                                                   12,443   12,822

    Materials and supplies                                                      12,117   12,162

    Deferred income taxes, net                                                  34,299   30,477

    Other current assets                                                        28,321   19,004

       Total Current Assets                                                    257,792  210,309
                                                                               -------  -------

    Equipment and property, net                                                 84,470   76,963

    Goodwill                                                                   212,004  210,971

    Customer contracts and other intangible
     assets, net                                                               131,122  137,865

    Deferred income taxes, net                                                  26,245   21,088

    Financed receivables, long-term, net                                        12,834   12,569

    Other assets                                                                12,602   11,009

        Total Assets                                                          $737,069 $680,774
                                                                              ======== ========


    Accounts payable                                                           $30,724  $29,676

    Accrued insurance, current                                                  26,392   22,244

    Accrued compensation and related liabilities                                57,088   56,234

    Unearned revenue                                                           100,057   96,127

    Other current liabilities                                                   32,805   36,459
                                                                                ------   ------

       Total Current Liabilities                                               247,066  240,740
                                                                               -------  -------

    Accrued insurance, less current portion                                     28,575   28,185

    Accrued pension                                                             42,263   29,793

    Long-term accrued liabilities                                               34,358   37,749
                                                                                ------   ------

       Total Liabilities                                                       352,262  336,467
                                                                               -------  -------


    Common stock                                                               146,078  146,071

    Retained earnings and other equity                                         238,729  198,236

       Total stockholders' equity                                              384,807  344,307
                                                                               -------  -------

    Total Liabilities and Stockholders' Equity                                $737,069 $680,774
                                                                              ======== ========

                                                        ROLLINS, INC. AND SUBSIDIARIES

                                                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME

                                                     (in thousands except per share data)


                                                                                               Second Quarter Ended       Six Months Ended

                                                                                                    June 30,              June 30,
                                                                                                    --------              --------

                                                                                                  2013           2012     2013           2012
                                                                                                  ----           ----     ----           ----


    Customer services                                                                         $350,798       $334,872 $650,512       $624,337


    Cost of services provided                                                                  174,361        165,993  329,967        314,075

    Depreciation and amortization                                                                9,768          9,613   19,662         19,380

    Sales, general and administrative                                                          109,518        106,068  208,652        200,892

    Interest (income)/expense                                                                     (127)            20     (172)            71

                                                                                               293,520        281,694  558,109        534,418

    INCOME BEFORE INCOME TAXES                                                                  57,278         53,178   92,403         89,919

    PROVISION FOR INCOME TAXES                                                                  21,284         20,051   33,230         33,712

    NET INCOME                                                                                 $35,994        $33,127  $59,173        $56,207
                                                                                               =======        =======  =======        =======

    NET INCOME PER SHARE - BASIC                                                                 $0.25          $0.23    $0.40          $0.38

    NET INCOME PER SHARE - DILUTED                                                                0.25           0.23    $0.40          $0.38
                                                                                                  ====           ====    =====          =====

    Weighted average shares outstanding - basic                                                146,210        146,417  146,224        146,557

    Weighted average shares outstanding - diluted                                              146,210        146,428  146,224        146,571

Rollins, Inc.

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

Wednesday, July 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 877-941-8609 domestic;
480-629-9692 international
at least 5 minutes before start time.

REPLAY: available through July 31, 2013
Please dial 800-406-7325/303-590-3030, Passcode: 4628395
Contact Samantha Alphonso at Financial Relations Board at 212-827-3746
Or email to salphonso@mww.com

SOURCE Rollins, Inc.

Source: PR Newswire