Press release from PR Newswire
Rollins, Inc. Reports Fourth Quarter And Full Year 2012 Record Financial Results
Wednesday, January 23, 2013
Rollins, Inc. Reports Fourth Quarter And Full Year 2012 Record Financial Results07:15 EST Wednesday, January 23, 2013Company posts 27th consecutive quarter of improved earnings results - Revenue increased 6.0% for the quarter and 5.5% for full year - Net income up 6.1% for the quarter and 10.5% for the full year - Earnings per diluted share rose 6.7% for the quarter to $0.16 from $0.15 and 10.1% to $0.76 from $0.69 for the full yearATLANTA, Jan. 23, 2013 /PRNewswire/ -- Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its fourth quarter and year ended December 31, 2012. The Company recorded fourth quarter revenues of $306.4 million, an increase of 6.0% over the prior year's fourth quarter revenue of $289.1 million. Net income increased 6.1% to $22.9 million or $0.16 per diluted share for the fourth quarter ended December 31, 2012, compared to $21.6 million or $0.15 per diluted share for the same period in 2011. Rollins' revenues for the full year rose 5.5% to $1.271 billion compared to $1.205 billion for the prior year. Rollins' net income for the full year rose 10.5% to $111.3 million, or $0.76 per diluted share, compared to net income of $100.7 million, or $0.69 per diluted share for the same period last year.Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "We are pleased to have achieved record revenue growth across the Company for the quarter and full year. The progress we made in 2012 reflects the momentum we gained in adding new customers while improving customer service and retention. At the same time we executed across all brands programs to improve our training, and customer communications." Mr. Rollins concluded, "We are excited about our Company's opportunities for 2013. Our culture of continuous improvement has generated aggressive plans and new programs that should provide another successful year. We are very proud of our people who made 2012 successes possible and who will likewise be working diligently to achieve this year's objectives."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 excitement about the Company' opportunities for 2013; our belief that our plans and programs should provide another successful year; and our belief that our people will be working diligently to achieve this year's objectives. 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 December 31, (unaudited)20122011ASSETSCash and cash equivalents$ 65,082$ 46,275Trade accounts receivables, net68,92061,687Financed receivables, net 11,82311,659Materials and supplies11,84711,125Deferred income taxes, net33,33831,272Other current assets14,98213,804Total Current Assets205,992175,822Equipment and property, net82,26376,858Goodwill 212,477211,019Customer contracts and other intangible assets, net141,789137,526Deferred income taxes26,84122,604Financed receivables, long-term, net11,68111,298Other assets11,46310,523 Total Assets$ 692,506$ 645,650LIABILITIESAccounts payable$ 24,854$ 22,584Accrued insurance, current24,16421,844Accrued compensation and related liabilities60,04261,137Unearned revenue87,75385,636Other current liabilities31,60334,650Total Current Liabilities228,416225,851Accrued insurance, less current portion31,28327,516Accrued pension43,27131,867Long-term accrued liabilities34,58036,419Total Liabilities337,550321,653STOCKHOLDERS' EQUITYCommon stock146,015146,251Retained earnings and other equity208,941177,746Total stockholders' equity354,956323,997Total Liabilities and Stockholders' Equity$ 692,506$ 645,650 ROLLINS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME(in thousands except per share data)(unaudited)Fourth Quarter EndedTwelve Months EndedDecember 31,December 31,2012201120122011REVENUESCustomer services$ 306,393$ 289,056$ 1,270,909$ 1,205,064COSTS AND EXPENSESCost of services provided163,025151,202647,578616,842Depreciation and amortization9,8109,67838,65537,503Sales, general and administrative97,60893,464407,020389,115Pension Settlement1,000-1,000-Interest Expense(76)5914508271,367254,4031,094,2671,043,968INCOME BEFORE INCOME TAXES35,02634,653176,642161,096PROVISION FOR INCOME TAXES12,11213,05865,31060,385NET INCOME$ 22,914$ 21,595$ 111,332$ 100,711NET INCOME PER SHARE - BASIC$ 0.16$ 0.15$ 0.76$ 0.69NET INCOME PER SHARE - DILUTED$ 0.16$ 0.15$ 0.76$ 0.69Weighted average shares outstanding - basic146,028146,277146,299146,882Weighted average shares outstanding - diluted146,029146,309146,306146,946 CONFERENCE CALL ANNOUNCEMENTRollins, Inc.(NYSE: ROL)Management will hold a conference call to discuss Fourth Quarter and Full-Year 2012 results on:Wednesday, January 23, 2013 at:9:00 a.m. Eastern8:00 a.m. Central7:00 a.m. Mountain6:00 a.m. PacificTO PARTICIPATE: Please dial 800-762-8779 domestic;480-629-9645 international at least 5 minutes before start time.REPLAY: available through January 30, 2013Please dial 800-406-7325/303-590-3030, Passcode: 4588006THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT www.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.