-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NUvAJQYLsyzJNrb7AdI9ZGUOpNdlJgAASBP2iyEhjZkhuT1F1XQxNHwt9CbDO+hg f/bWWMAtPuXkiktvoSqx6Q== 0000084839-03-000005.txt : 20030131 0000084839-03-000005.hdr.sgml : 20030131 20030131110705 ACCESSION NUMBER: 0000084839-03-000005 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030128 ITEM INFORMATION: FILED AS OF DATE: 20030131 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ROLLINS INC CENTRAL INDEX KEY: 0000084839 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-TO DWELLINGS & OTHER BUILDINGS [7340] IRS NUMBER: 510068479 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04422 FILM NUMBER: 03533532 BUSINESS ADDRESS: STREET 1: 2170 PIEDMONT RD NE CITY: ATLANTA STATE: GA ZIP: 30324 BUSINESS PHONE: 4048882000 MAIL ADDRESS: STREET 1: 2170 PIEDMONT ROAD NE CITY: ATLANTA STATE: GA ZIP: 30324 8-K 1 earn4q8k.txt EARNINGS PRESS RELEASE UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): January 28, 2003 1-4422 (Commission File Number.) ------------------------------------------ ROLLINS, INC. (Exact name of registrant as specified in its charter) Delaware 51-0068479 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 2170 Piedmont Road, N.E., Atlanta, Georgia (Address of principal executive offices) 30324 (Zip Code) (404) 888-2000 (Registrant's telephone number, including area code) ------------------------------------------ ITEM 7. Financial Statements and Exhibits. ( c ) Exhibits. (99.1) The Registrant's Press Release dated January 28, 2003. ITEM 9. Regulation FD Disclosure. On January 28, 2003, Rollins, Inc., a premier North American consumer services company (NYSE Ticker Symbol - ROL), reported earnings for the fourth quarter and year ended December 31, 2002. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ROLLINS, INC. Date: January 30, 2003 By: /s/ Gary W. Rollins ------------------------------------------ Gary W. Rollins Chief Executive Officer, President and Chief Operating Officer Date: January 30, 2003 By: /s/ Harry J. Cynkus ------------------------------------------ Harry J. Cynkus Chief Financial Officer and Treasurer EX-99 3 earn4991.txt EARNINGS PRESS RELEASE Exhibit 99.1 For Further Information Contact Harry J. Cynkus (404) 888-2922 FOR IMMEDIATE RELEASE ROLLINS REPORTS 2002 RESULTS - Fourth Quarter Diluted EPS of $0.12 versus $0.05 - 12th Consecutive Quarter Of Year-Over-Year Improvement In Earnings Per Share - Fiscal 2002 Earnings Per Share Increases 60.7% to $0.90 - Fiscal 2002 Revenue increases 2.4% ATLANTA, GEORGIA, January 28, 2003: Rollins, Inc., a premier North American consumer services company (NYSE Ticker Symbol - ROL), reported record revenue of $665.4 million for the year ended December 31, 2002. This represents a 2.4% increase over the $649.9 million generated in fiscal 2001. Net income also increased for the period, rising 60.0% to $27.1 million or $0.90 per share for the year. This compares to $16.9 million or $0.56 per share for fiscal 2001. Rollins' strong operations in 2002 resulted in improved liquidity as the Company generated $65.2 million in EBITDA versus $47.4 million in EBITDA a year ago. Additionally, in fiscal 2002 Rollins generated $37.3 million in free cash flow after contributing $20 million towards its pension fund. Finally, the Company purchased 330,800 shares of common stock during the year at an average price of $18.70. For the fourth quarter ended December 31, 2002, revenues increased 2.8% to $153.9 million compared to $149.7 million for the same period in 2001. Net income was $3.7 million or $0.12 per share for the fourth quarter of 2002 compared to $1.6 million or $0.05 per share for 2001. Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, "We are proud that our operating and financial initiatives have resulted in dramatically improved earnings in 2002. Rollins posted its 12th consecutive quarter of year-over-year improvement in earnings per share in the midst of one of the most challenging economic periods we have seen in a decade. We view the improvement in earnings as a tribute to our management team and the entire organization." Mr. Rollins continued, "Our Home Office process improvement project will enhance efficiency and the quality of support that is provided to the field. We look forward to continuing productivity improvements in branch operations as well and the resulting earnings growth." Rollins, Inc. is one of the nation's largest consumer services companies. Through its wholly-owned subsidiary, Orkin Exterminating Company, Inc., the Company provides essential pest control services and protection against termite damage, rodents and insects to approximately 1.6 million customers in the United States, Canada and Mexico from over 400 locations. You can learn more about Orkin by visiting our Web sites at www.orkin.com and www.rollinscorp.com. See accompanying table for reconciliation of EBITDA and Free Cash Flow. CAUTION CONCERNING FORWARD-LOOKING STATEMENTS The above release containsstatements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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, general economic conditions; market risk; changes in industry practices or technologies; the degree of success of the Company's pest and termite process reforms and pest control selling and treatment methods; the Company's ability to identify potential acquisitions; climate and weather trends; competitive factors and pricing practices; the cost reduction benefits of the corporate restructuring may not be as great as expected or eliminated positions may have to be reinstated in the future; 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.
ROLLINS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION (In thousands) 2002 2001 At December 31 (Unaudited) (Unaudited) - ------------------------------------------------------------------------------------------------------------------------ ASSETS Cash and Short-Term Investments $ 38,315 $ 8,650 Trade Receivables, Net 47,740 48,479 Materials and Supplies 10,662 11,895 Deferred Income Taxes 20,035 21,044 Other Current Assets 9,470 10,415 ----------------- --------------- Current Assets 126,222 100,483 Equipment and Property, Net 38,880 44,273 Goodwill and Other Intangible Assets 107,899 112,450 Deferred Income Taxes 44,406 39,309 Other Assets 0 44 ----------------- --------------- Total Assets $ 317,407 $ 296,559 ================= =============== - ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Accounts Payable $ 12,138 $ 12,920 Accrued Insurance 11,740 9,912 Accrued Payroll 28,623 30,921 Unearned Revenue 43,049 27,470 Other Current Liabilities 34,312 27,313 ----------------- --------------- Current Liabilities 129,862 108,536 Long-Term Accrued Liabilities 96,855 102,525 ----------------- --------------- Total Liabilities 226,717 211,061 ----------------- --------------- - ------------------------------------------------------------------------------------------------------------------------ STOCKHOLDERS' EQUITY Common Stock 29,866 30,070 Retained Earnings 60,824 55,428 ----------------- --------------- Total Stockholders' Equity 90,690 85,498 ----------------- --------------- Total Liabilities and Stockholders' Equity $ 317,407 $ 296,559 ================= ===============
ROLLINS, INC. AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED INCOME FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED DECEMBER 31 (In thousands except per share data) Fourth Quarter Twelve Months --------------------------- --------------------------- 2002 2001 2002 2001 (Unaudited) (Unaudited) (Unaudited) (Unaudited) ------------ ------------- ------------ ------------- REVENUES $ 153,871 $ 149,691 $ 665,425 $ 649,925 ------------ ------------- ------------ ------------- COSTS AND EXPENSES Cost of Services Provided 86,088 83,744 361,677 361,961 Depreciation and Amortization 5,337 5,259 21,635 20,292 Sales, General and Administrative 56,508 58,016 238,583 240,544 Interest (Income)/Expense (71) 67 (196) (198) ------------ ------------- --------------------------- TOTAL COSTS AND EXPENSES 147,862 147,086 621,699 622,599 ------------ ------------- ------------ ------------- INCOME BEFORE INCOME TAXES 6,009 2,605 43,726 27,326 PROVISION FOR INCOME TAXES 2,284 990 16,616 10,384 ------------ ------------- ------------ ------------- NET INCOME $ 3,725 $ 1,615 $ 27,110 $ 16,942 ============ ============= ============ ============= EARNINGS PER SHARE - BASIC $ 0.12 $ 0.05 $ 0.90 $ 0.56 ============ ============= ============ ============= EARNINGS PER SHARE - DILUTED $ 0.12 $ 0.05 $ 0.90 $ 0.56 ============ ============= ============ ============= AVERAGE SHARES OUTSTANDING - BASIC 29,855 30,070 30,014 30,134 AVERAGE SHARES OUTSTANDING - DILUTED 30,328 30,160 30,273 30,266
ROLLINS, INC. AND SUBSIDIARIES RECONCILIATION OF EBITDA AND FREE CASH FLOW FOR THE TWELVE MONTHS ENDED DECEMBER 31 (In thousands except) Twelve Months --------------------------- 2002 2001 EBITDA: (Unaudited) (Unaudited) ------------ ------------- Net Income 27,110 16,942 Income Taxes 16,616 10,384 Depreciation and Amortization 21,635 20,292 Interest (Income)/Expense (196) (198) ------------ ------------- EBITDA $ 65,165 $ 47,420 ============ ============= Free Cash Flow: Net Cash Provided by Operating Activities 53,694 29,558 Purchase of Equipment and Property (10,367) (8,474) Dividends (6,004) (6,028) ------------ ------------- Free Cash Flow $ 37,323 $ 15,056 ============ =============
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