Press release from PR Newswire
Rollins, Inc. Reports Third Quarter And Nine Months 2012 Financial Results
Wednesday, October 24, 2012
Rollins, Inc. Reports Third Quarter And Nine Months 2012 Financial Results07:30 EDT Wednesday, October 24, 2012ATLANTA, Oct. 24, 2012 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its third quarter ended September 30, 2012. The Company recorded third quarter revenues of $340.2 million, an increase of 5.0% over the prior year's third quarter revenue of $323.9 million. Net income increased 9.5% to $32.2 million or $0.22 per diluted share for the third quarter ended September 30, 2012, compared to $29.4 million or $0.20 per diluted share for the same period in 2011. Rollins' revenues rose 5.3% for the first nine months of 2012 to $964.5 million compared to $916.0 million for the prior year. Net income for the first nine months of 2012 was $88.4 million, or $0.60 per diluted share, compared to net income of $79.1 million, or $0.54 per diluted share for the same period last year.At yesterday's Board of Directors meeting, the Board of Directors declared a regular quarterly cash dividend on its common stock of $0.08 per share plus a special year-end dividend of $0.12 per share both payable December 10, 2012 to stockholders of record at the close of business November 09, 2012. Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "We are very pleased with our financial results for the third quarter and first nine months of fiscal 2012. Our revenue growth was strong across the Company, which reflects the positive results we are receiving from the investments we have made. We again improved our profit margins with favorable revenue to profit conversion." Mr. Rollins, concluded, "We are optimistic about concluding another successful year while gaining market share and delivering value to our customers and shareholders." 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 STATEMENTSThis 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 optimism about having another successful year while still gaining market share and delivering value to our customers and shareholders. 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 SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION(in thousands)At September 30, (unaudited)20122011ASSETSCash and cash equivalents$ 93,713$ 30,219Trade accounts receivables, net78,74871,715Financed receivables, net 12,39611,668Materials and supplies10,91910,607Deferred income taxes, net30,11830,575Other current assets15,78417,096Total Current Assets241,678171,880Equipment and property, net77,52176,046Goodwill 211,373210,898Customer contracts and other intangible assets, net132,850140,598Deferred income taxes18,80912,223Financed receivables, long-term, net12,49111,108Other assets11,3079,670 Total Assets$ 706,029$ 632,423LIABILITIESAccounts payable$ 24,679$ 23,951Accrued insurance, current22,50320,801Accrued compensation and related liabilities62,82760,365Unearned revenue95,72795,022Other current liabilities34,86535,774Total Current Liabilities240,601235,913Accrued insurance, less current portion29,14527,462Accrued pension29,7667,573Long-term accrued liabilities37,85734,977Total Liabilities337,369305,925STOCKHOLDERS' EQUITYCommon stock146,038146,292Retained earnings and other equity222,622180,206Total stockholders' equity368,660326,498Total Liabilities and Stockholders' Equity$ 706,029$ 632,423ROLLINS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME(in thousands except per share data)(unaudited)Third Quarter EndedNine Months EndedSeptember 30,September 30,2012201120122011REVENUESCustomer services$ 340,179$ 323,929$ 964,516$ 916,008COSTS AND EXPENSESCost of services provided170,478165,097484,553465,640Depreciation and amortization9,4659,33728,84527,825Sales, general and administrative108,520102,396309,412295,651Interest Expense197990449288,482276,909822,900789,565INCOME BEFORE INCOME TAXES51,69747,020141,616126,443PROVISION FOR INCOME TAXES19,48617,60553,19847,327NET INCOME$ 32,211$ 29,415$ 88,418$ 79,116NET INCOME PER SHARE - BASIC$ 0.22$ 0.20$ 0.60$ 0.54NET INCOME PER SHARE - DILUTED$ 0.22$ 0.20$ 0.60$ 0.54Weighted average shares outstanding - basic146,059146,549146,390147,086Weighted average shares outstanding - diluted146,061146,609146,400147,161CONFERENCE CALL ANNOUNCEMENTRollins, Inc.(NYSE: ROL)Management will hold a conference call to discuss Third Quarter 2012 results on:Wednesday, October 24, 2012 at:10:00 a.m. Eastern9:00 a.m. Central8:00 a.m. Mountain7:00 a.m. PacificTO PARTICIPATE: Please dial 877-941-8609 domestic; 480-629-9692 international at least 5 minutes before start time.REPLAY: available through October 31, 2012Please dial 800-406-7325/303-590-3030, Passcode: 4568454THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET ATwww.viavid.netQuestions?Contact Samantha Alphonso at Financial Relations Board at 212-827-3746Or email to firstname.lastname@example.org For Further Information ContactHarry J. Cynkus (404) 888-2922SOURCE Rollins, Inc.