Rollins, Inc. Reports Fourth Quarter and Full-Year 2008 Financial Results
premier North American consumer and commercial services company, today
reported unaudited financial results for its fourth quarter and year ended
(Logo: http://www.newscom.com/cgi-bin/prnh/20080723/CLW029LOGO )
The Company recorded fourth quarter revenues of
increase of 14.9% over the prior year’s fourth quarter revenue of
million
Defense. Revenue growth excluding the
Defense improved 0.2%(1). Revenue growth in the 4th quarter was impacted
somewhat by the poor economic conditions as well as the decline in the
Canadian dollar.
Net income increased 5.2% to
the fourth quarter ended
per diluted share for the same period in 2007. EBITDA increased 28.4% for the
quarter(2).
During the fourth quarter, the Company repurchased 835,300 shares of
common stock at a weighted average price of
1,385,475 shares repurchased in 2008.
For the year-ended
principally due to the Company’s efforts to increase its commercial business,
an increase in the number of sales, while maintaining customer retention and
the acquisition of HomeTeam. Excluding the revenue of HomeTeam Pest Defense,
revenues for the year improved 3.0%(1).
Rollins’ net income for the full year rose 6.5% to
per diluted share, compared to net income of
diluted share for the prior year. EBITDA increased 13.5% for full year
2008(2).
Rollins’ balance sheet continued to grow with total assets increasing to
stated, “We are pleased with the results we have achieved for both our fourth
quarter and full year. Despite the tough economy, we made headway this year
growing our revenues and increasing our profitability. In addition, we
achieved a milestone this year when the Company’s revenues topped
for the first time. We continued to see the benefits from our program
investments, which have generated improved sales growth as well as improved
service efficiency”.
“Our strong balance sheet has allowed us to continue our plan to make
strategic acquisitions. HomeTeam Pest Defense has been a great addition to
our Company. We are extremely pleased with the contributions that HomeTeam
has made to our revenues and profits. They have exceeded our expectations,
and we look forward to them playing a significant role in the company going
forward.”
Mr. Rollins concluded, “It is difficult to determine when the economy will
turnaround and the financial crisis will end; however we believe that we are
well positioned to respond appropriately and adjust our business to meet these
uncertainties. We will continue our plan to make prudent investments to grow
our business both organically and through strategic acquisitions. We are
positive about our Company’s opportunities in the new year.”
Rollins, Inc. is a premier North American consumer and commercial services
company. Through its wholly owned subsidiaries, Orkin, Inc., PCO Services,
HomeTeam Pest Defense, Western Pest Services and The Industrial Fumigant
Company, the Company provides essential pest control services and protection
against termite damage, rodents and insects to over 2 million customers in
United States
and
visiting our web sites at www.orkin.com, www.pestdefense.com,
www.westernpest.com, www.indfumco.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 the Company’s expectation
that Home Team Pest Defense will play a significant role in our growth
strategy going forward; the Company believes that it is well positioned to
adjust its business to meet uncertainties in the economy; the Company’s plan
to continue its strategy to make prudent investments to grow its business both
organically and through strategic acquisitions; and the Company’s excitement
about its opportunities in the new year. 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,
general economic conditions; market risk; changes in industry practices or
technologies; the degree of success of the Company’s pest and termite process
reforms 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; 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
2007
(1) Additional disclosure regarding this financial measure is included in
the financial tables attached to this press release.
(2) EBITDA is a financial measure which does not conform to generally
accepted accounting principles (GAAP). Additional disclosure regarding
this non-GAAP financial measure is included in the attachment to this
press release.
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)
At December 31, (unaudited) 2008 2007
ASSETS
Cash and cash equivalents $13,716 $71,280
Trade receivables, short-term 56,884 52,618
Accounts Receivable - Other 2,185 1,839
Materials and supplies 10,893 8,846
Deferred income taxes 20,018 17,162
Other current assets 13,142 8,495
Total Current Assets 116,838 160,240
Equipment and property, net 78,625 77,370
Goodwill 187,266 126,684
Other Intangible Assets 25,719 9,232
Customer Contracts 129,092 63,056
Deferred income taxes 17,886 7,576
Trade receivables, long-term 11,124 8,409
Prepaid Pension - 16,624
Other assets 5,967 6,037
Total Assets $572,517 $475,228
LIABILITIES
Loans outstanding $65,000 $ -
Capital leases 450 1,186
Accounts payable 18,782 19,140
Accrued insurance 15,404 13,505
Accrued compensation and related
liabilities 56,334 45,910
Other current liabilities 28,569 26,587
Unearned revenue 88,288 81,678
Total Current Liabilities 272,827 188,006
Capital leases, less current portion 171 601
Accrued pension 20,353 -
Long-term accrued liabilities 50,733 53,068
Total Liabilities 344,084 241,675
STOCKHOLDERS' EQUITY
Common stock 100,041 100,636
Retained earnings and other equity 128,392 132,917
Total Stockholders' Equity 228,433 233,553
Total Liabilities and Stockholders'
Equity $572,517 $475,228
ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
Fourth Quarter Ended Twelve Months Ended
December 31, December 31,
2008 2007 2008 2007
REVENUES
Customer services $248,076 $215,954 $1,020,564 $894,920
COSTS AND EXPENSES
Cost of services provided 133,050 117,199 534,494 468,665
Depreciation and amortization 9,096 6,586 33,443 27,068
Sales, general and
administrative 84,120 74,633 339,078 296,615
(Gain)/loss on sales of assets 23 61 (166) (52)
Interest (income)/expense, net 913 (749) 761 (2,289)
227,202 197,730 907,610 790,007
INCOME BEFORE TAXES 20,874 18,224 112,954 104,913
PROVISION FOR INCOME TAXES 8,321 6,290 44,020 40,182
NET INCOME $12,553 $11,934 $68,934 $64,731
NET INCOME PER SHARE - BASIC $0.13 $0.12 $0.69 $0.65
NET INCOME PER SHARE - DILUTED $0.13 $0.12 $0.69 $0.64
Weighted average shares
outstanding - basic 98,851 99,854 99,209 100,299
Weighted average shares
outstanding - diluted 99,659 101,051 100,081 101,409
ROLLINS, INC. AND SUBSIDIARIES
RECONCILIATION
REVENUE EXCLUDING HOMETEAM PEST DEFENSE
Three Months Ended Dec. 31, $Better/ %Better/
2008 2007 (Worse) (Worse)
Net Revenues $248,076 $215,954 $32,122 14.9%
Less: Revenues from
HomeTeam Pest Defense 31,694 - 31,694
Revenue Excluding
HomeTeam Pest
Defense $216,382 $215,954 $428 0.2%
ROLLINS, INC. AND SUBSIDIARIES
RECONCILIATION
REVENUE EXCLUDING HOMETEAM PEST DEFENSE
Twelve Months Ended Dec. 31, $Better/ %Better/
2008 2007 (Worse) (Worse)
Net Revenues $1,020,564 $894,920 $125,644 14.0%
Less: Revenues from
HomeTeam Pest Defense 98,931 - 98,931
Revenue Excluding
HomeTeam Pest
Defense $921,633 $894,920 $26,713 3.0%
ROLLINS, INC. AND SUBSIDIARIES
RECONCILIATION
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA)
Three Months Ended Dec. 31, $Better/ %Better/
2008 2007 (Worse) (Worse)
Net Income $12,553 $11,934 $619 5.2%
Add: Provision For
Income Taxes 8,321 6,290 2,031 32.3
Interest (Income)/
Expense 913 (749) 1,662 221.9
Depreciation of
Fixed
Assets 3,856 3,276 580 17.7
Amortization of
Intangible
Assets 5,240 3,310 1,930 58.3
EBITDA $30,883 $24,061 $6,822 28.4%
ROLLINS, INC. AND SUBSIDIARIES
RECONCILIATION
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA)
Twelve Months Ended Dec. 31, $Better/ %Better/
2008 2007 (Worse) (Worse)
Net Income $68,934 $64,731 $4,203 6.5%
Add: Provision For
Income Taxes 44,020 40,182 3,838 9.6
Interest
(Income)/Expense 761 (2,289) 3,050 133.2
Depreciation of
Fixed Assets 14,205 13,677 528 3.9
Amortization of
Intangible
Assets 19,238 13,391 5,847 43.7
EBITDA $147,158 $129,692 $17,466 13.5%
CONFERENCE CALL ANNOUNCEMENT
Rollins, Inc.
(NYSE: ROL)
Management will hold a conference call to discuss Fourth Quarter results
on:
Wednesday, January 28, 2009 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 800-257-6566 domestic; 303-262-2161 international at least 5
minutes before start time.
REPLAY: available through
Please dial 800-405-2236/303-590-3000, Passcode: 11124781
THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT
www.viavid.net
Questions?
Contact
Or email to jjazmin@financialrelationsboard.com
SOURCE Rollins, Inc.
