Rollins, Inc. Reports Third Quarter Financial Results

ATLANTA—Rollins, Inc., parent company or Orkin, reported that revenues rose 8.8% for the third quarter ended Sept. 30, 2006 to $227.8 million, compared to revenues of $209.3 million for the third quarter ended Sept. 30, 2005. Excluding revenues resulting from the Company’s Oct. 1, 2005 acquisition of the Industrial Fumigant Company, revenues grew 4.6%.

Rollins recorded net income of $17.0 million, or $0.25 per diluted share for the third quarter ended Sept. 30, 2006, compared to $15.1 million, or $0.22 per diluted share for the third quarter ended Sept. 30, 2005.

Rollins recorded net income of $47.3 million, or $0.69 per diluted share for the nine months ended Sept. 30, 2006, compared to $45.4 million, or $0.65 per diluted share for the nine months ended Sept. 30, 2005. Included in the first nine months of last years results 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 earnings increased 10.1% or $.08 per diluted share compared to the same period last year. See attached detailed reconciliation.

Rollins’ balance sheet remains strong with total assets of $454.2 million and stockholders’ equity increasing to $198.9 million. In the third quarter, the Company announced that it repurchased 127,306 shares of common stock with a total of 1,006,680 shares repurchased year to date. In total, approximately 2.3 million additional shares may be purchased under programs previously approved by the Board of Directors.

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “We are pleased with the progress we are making increasing our revenue and growing our customer base. Additionally, we are focused on providing our customers a positive experience from the first service rendered through the entire customer relationship. Our commitment to extraordinary service has been recognized through recent industry acknowledgement. Orkin received the “Best in Class Customer Service” award from PCT Magazine and Syngenta, a leading pesticide manufacturer. We were recognized in the class of pest control companies with over $6.0 million in revenue, which includes a large number of exceptional competitors.”

Source: Businesswire