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Press release from PR Newswire

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

Wednesday, July 24, 2013

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

07:30 EDT Wednesday, 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.

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 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 ContactHarry J. Cynkus (404) 888-2922

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At June 30, (unaudited)

2013

2012

ASSETS

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

LIABILITIES

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

STOCKHOLDERS' EQUITY

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)

(unaudited)

Second Quarter Ended

Six Months Ended

June 30,

June 30,

2013

2012

2013

2012

REVENUES

Customer services

$    350,798

$      334,872

$    650,512

$      624,337

COSTS AND EXPENSES

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

 

CONFERENCE CALL ANNOUNCEMENTRollins, Inc.(NYSE: ROL)

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

TO PARTICIPATE: Please dial 877-941-8609 domestic; 480-629-9692 international at least 5 minutes before start time.

REPLAY: available through July 31, 2013Please dial 800-406-7325/303-590-3030, Passcode: 4628395THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET ATwww.viavid.netQuestions?Contact Samantha Alphonso at Financial Relations Board at 212-827-3746Or email to salphonso@mww.com

SOURCE Rollins, Inc.

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