Rollins, Inc. Reports Fourth Quarter and Full-Year 2006 Financial Results

ATLANTA — Rollins Inc., reported unaudited financial results for its fourth quarter and year ended December 31, 2006.

The company recorded revenues of $204.7 million, an increase of 5.0% over the prior year’s fourth quarter revenue of $194.8 million. Net income increased 43.3% to $10.5 million or $0.15 per diluted share for the fourth quarter ended December 31, 2006, compared to $7.4 million or $0.11 per diluted share for the same period in 2005.

Revenues for full year 2006 increased to $858.9 million, compared to $802.4 million for the prior year. Rollins recorded net income of $57.8 million or $0.84 per diluted share compared to net income of $52.8 million or $0.76 per diluted share for the comparable period last year. Included in the results for the year ended December 31, 2005 was a $2.5 million gain, net of taxes, or $0.04 per diluted share, as the Company curtailed Rollins, Inc.’s pension plan effective June 30, 2005. Excluding the impact of the pension curtailment gain in 2005, the Company’s diluted earnings per share increased 16.7% or $0.12 per diluted share compared to last year. See attached detailed reconciliation.

Rollins’ balance sheet continued to grow with total assets increasing to $453.2 million and stockholder’s equity growth to $211.5 million. The Company ended the year with cash and marketable securities of $63.3 million, up 47.1% over last year.

Gary W. Rollins, president and chief executive officer of Rollins, Inc. stated, “We are very pleased with the progress the Company made during the fourth quarter of 2006 where our growth represented the highest percentage of internal growth in our company’s recent history. Further, the overall improvement in revenue and net income for the quarter and full year are a confirmation that the effort we have put on sales growth and productivity improvement is bearing fruit.”

Rollins continued, “We believe that we are on track to build on our growth initiatives in all segments of our business and plan to continue to make selective investments in our sales and service initiatives. At the same time, we will be working on expense margins and productivity improvements. Orkin has again been recognized as a top 100 Training Company in the U.S. in part as a result of our satellite training network launched in 2006. We have exciting plans to ramp up the use of this extraordinary asset in the New Year.”

Rollins concluded, “We remain excited about our Company’s future but we recognize that there is still much to be done to accomplish our objectives. Our team is dedicated to our plans of business growth and operational improvement for the New Year.”

Source: PRNewswire