ATLANTA, July 28 /PRNewswire-FirstCall/ -- Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial services company, today reported strong unaudited financial results for its second quarter ended June 30, 2010. The Company recorded second quarter revenues of $298.8 million, an increase of 5.0% over the prior year's second quarter revenue of $284.6 million. Net income increased 8.7% to $27.7 million or $0.28 per diluted share for the second quarter ended June 30, 2010, compared to $25.5 million or $0.26 per diluted share for the same period in 2009.
The Company repurchased 756,828 shares of common stock at a weighted average price of $21.21 per share during the second quarter bringing the total number of shares repurchased year-to-date to 886,928 at a weighted average price of $20.92. In total, 2,064,663 additional shares may be purchased under the share repurchase program.
Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "Our second quarter results reflect the benefits of our marketing and sales programs with all major brands enjoying solid revenue increases."
Mr. Rollins concluded, "We are confident that our strategy of investing in improving market share by growing faster than our industry will prove to be long-term beneficial. The acquisition of Waltham Services announced earlier this month will expand our presence in New England and reinforce our geographic footprint. The addition of this terrific company, along with their outstanding employees, in tandem with our other leading brands strengthens Rollins as the preeminent pest control provider. "
Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, HomeTeam Pest Defense, Western Pest Services, PCO Services, The Industrial Fumigant Company and Crane Pest Control, the Company provides essential pest control services and protection against termite damage, rodents and insects to over 2 million customers in the United States, Canada, Mexico, Europe, Central America, the Caribbean, the Middle East, Asia and the Mediterranean from over 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.cranepestcontrol.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 about the Company's belief that the Company's strategy of investing in improving market share by growing faster than our industry will prove to be beneficial over the long-term; and our ability to successfully complete the acquisition of Waltham Services and thereafter successfully integrate the operations of this business with the Company's operations. 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 our 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; our 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, 2009.
ROLLINS, INC. AND SUBSIDIARIES |
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At June 30, (unaudited) |
2010 |
2009 |
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ASSETS |
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Cash and cash equivalents |
$ 19,286 |
$ 22,575 |
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Trade receivables, short-term |
71,494 |
68,123 |
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Accounts Receivable - Other |
3,621 |
2,377 |
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Materials and supplies |
11,122 |
11,196 |
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Deferred income taxes |
26,190 |
18,745 |
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Other current assets |
14,597 |
8,999 |
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Total Current Assets |
146,310 |
132,015 |
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Trade receivables, long-term |
10,578 |
10,170 |
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Equipment and property, net |
71,260 |
77,183 |
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Goodwill |
189,668 |
188,830 |
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Customer Contracts |
113,859 |
123,399 |
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Other Intangible Assets |
24,531 |
22,899 |
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Deferred income taxes |
17,332 |
17,032 |
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Other assets |
8,869 |
7,114 |
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Total Assets |
$ 582,407 |
$ 578,642 |
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LIABILITIES |
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Accounts payable |
$ 17,599 |
$ 19,245 |
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Accrued insurance |
15,848 |
15,807 |
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Accrued compensation and related liabilities |
55,966 |
54,804 |
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Unearned revenue |
93,450 |
95,355 |
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Line of Credit |
25,000 |
55,000 |
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Other current liabilities |
29,607 |
27,550 |
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Total Current Liabilities |
237,470 |
267,761 |
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Accrued insurance |
27,850 |
26,308 |
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Accrued pension |
13,919 |
20,112 |
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Long-term accrued liabilities |
27,598 |
27,091 |
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Total Liabilities |
306,837 |
341,272 |
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STOCKHOLDERS’ EQUITY |
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Common stock |
98,559 |
99,168 |
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Retained earnings and other equity |
177,011 |
138,202 |
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Total Stockholders’ Equity |
275,570 |
237,370 |
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Total Liabilities and Stockholders’ Equity |
$ 582,407 |
$ 578,642 |
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ROLLINS, INC. AND SUBSIDIARIES |
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Second Quarter Ended |
Six Months Ended |
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June 30, |
June 30, |
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2010 |
2009 |
2010 |
2009 |
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REVENUES |
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Customer services |
$ 298,803 |
$ 284,567 |
$ 551,844 |
$ 527,539 |
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COSTS AND EXPENSES |
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Cost of services provided |
148,428 |
141,633 |
279,403 |
267,004 |
||||||||
Depreciation and amortization |
8,967 |
9,374 |
17,967 |
18,803 |
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Sales, general and |
96,772 |
91,806 |
181,873 |
173,794 |
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(Gain)/Loss on sale of assets |
191 |
(18) |
5 |
(23) |
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Interest expense, net |
66 |
259 |
165 |
687 |
||||||||
254,424 |
243,054 |
479,413 |
460,265 |
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INCOME BEFORE TAXES |
44,379 |
41,513 |
72,431 |
67,274 |
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PROVISION FOR INCOME |
16,679 |
16,031 |
27,148 |
25,984 |
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NET INCOME |
$ 27,700 |
$ 25,482 |
$ 45,283 |
$ 41,290 |
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NET INCOME PER SHARE - |
$ 0.28 |
$ 0.26 |
$ 0.46 |
$ 0.41 |
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NET INCOME PER SHARE - |
$ 0.28 |
$ 0.26 |
$ 0.46 |
$ 0.41 |
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Weighted average shares |
99,044 |
99,581 |
99,125 |
99,865 |
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Weighted average shares |
99,199 |
99,889 |
99,295 |
100,176 |
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CONFERENCE CALL ANNOUNCEMENT |
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Management will hold a conference call to discuss |
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Second Quarter results on: |
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Wednesday, July 28, 2010 at: |
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TO PARTICIPATE: |
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Please dial 800-762-8795 domestic; |
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REPLAY: available through August 4, 2010 |
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Please dial 800-406-7325/303-590-3030, Passcode: 4329321 |
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THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT |
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Questions? |
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Contact Samantha Alphonso at Financial Relations Board at 212-827-3746 |
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Or email to [email protected] |
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For Further Information Contact |
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Harry J. Cynkus (404) 888-2922 |
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SOURCE Rollins, Inc.
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