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Press release from PR Newswire

Rollins, Inc. Reports First Quarter 2013 Financial Results

Wednesday, April 24, 2013

Rollins, Inc. Reports First Quarter 2013 Financial Results

07:30 EDT Wednesday, April 24, 2013

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 Rollins, Inc. (NYSE: ROL)

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

TO PARTICIPATE: Please dial 800-762-8779 domestic; 480-629-9645 international 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 www.viavid.net Questions? Contact Samantha Alphonso at Financial Relations Board at 212-827-3746 Or email to salphonso@mww.com

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

SOURCE Rollins, Inc.

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