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

ATLANTA — Rollins, Inc., parent company of Orkin, reported revenues for the fourth quarter ended December 31, 2005 grew 6.0% to $194.8 million compared to $183.8 million for the fourth quarter ended December 31, 2004.

The company recorded net income of $8.9 million or $0.13 per diluted share for the fourth quarter ended December 31, 2005, compared to $13.9 million or $0.20 per diluted share for the fourth quarter ended December 31, 2004. Net income for the fourth quarter of 2004 included gains from the sale of assets, net of taxes, of $6.3 million or $0.09 per diluted share. Adjusted income for fourth quarter 2005 excluding gain on sale of assets was $8.6 million, compared to $7.6 million for fourth quarter 2004, a 13.6% increase.

Rollins's revenues for full year 2005 grew 6.9% to $802.4 million compared to $750.9 million for full year of 2004. Net income for the twelve months of 2005 grew 4.3% to $54.3 million or $0.78 per diluted share, compared to $52.1 million or $0.74 per diluted share for the twelve months of 2004. Net income for the full year excluding pension curtailment, gain on sale of assets and cumulative effect of change in accounting principle was $51.2 million, or $0.74 per share, compared to net income of $43.7 million for 2004, a 17.2% increase.

Rollins' balance sheet remains strong with total assets of $438.5 million and stockholders' equity increasing to $178.5 million. Earlier this year, the Company announced that during the fourth quarter it repurchased 447,907 shares of common stock at a weighted average price of $19.36 per share. Total share repurchases for 2005 totaled 1,652,202 shares at a weighted average price of $18.30 per share.

Commenting on the Company's results, Gary W. Rollins, president and chief executive officer of Rollins, Inc. said, "We are particularly pleased to report that we reached a milestone in 2005, having achieved over $800 million in revenues for the year. We are deeply appreciative of our employees and customers that made this possible. At the same time we recorded our 24th quarter of improved performance."

Mr. Rollins continued, "The Industrial Fumigant Company, our most recent acquisition is already contributing to our success, and their leadership and expertise will be invaluable to us as we look to further expand our commercial services division."

Mr. Rollins concluded, "We recognize that there is much to be done in 2006 as we make major investments in our businesses in order to gain more customers and provide them with ever improving pest and termite control services. In 2005 we began several initiatives that will accelerate and help us achieve these goals. As an example this year we will be adding approximately 100 new sales persons over the course of the year. We are optimistic about Rollins prospects and look forward to reporting to you on our progress throughout the year."