Rollins Reports First Quarter Revenues

Rollins Inc.'s profit dipped in the first quarter due to a seasonal loss at its The Industrial Fumigant Co. subsidiary, an investment to add 100 employees to its sales force and an increase in its stock option expense.

The Atlanta-based pest control company had net income of $10.9 million on $194.2 million in revenue, compared with net income of $11.6 million on $183.9 million in revenue in the first quarter of 2005. Earnings were 16 cents a share, compared with earnings of 17 cents a share in the first quarter of 2005.

"We were pleased with our revenue improvement in the first quarter, which reflected positive results in both our pest control and termite business," said Gary W. Rollins, president and CEO. "Although operating income for the first quarter was $1.3 million lower than the first quarter 2005, it did exceed our plan for the quarter. Our income was adversely affected by a $1 million seasonal loss at IFC, the previously announced investment we are making in expanding our sales force where we added approximately 100 new employees, as well as a $400,000 increase in stock option expense."

Rollins is the parent company of Orkin Inc., Western Pest Services and The Industrial Fumigant Co.