8-K

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 23, 2008
ROLLINS, INC.
(Exact name of registrant as specified in its charter)
	Delaware		1-4422	51-0068479
	(State or other jurisdiction of incorporation)		(Commission File Number)	(I.R.S. Employer Identification No.)
2170 Piedmont Road, N.E., Atlanta, Georgia 30324
(Address of principal executive offices) (Zip code)
Registrant’s telephone number, including area code: (404) 888-2000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On January 23, 2008, the Company issued a press release announcing its results for the fourth quarter and full year 2007. The Company hereby incorporates by reference herein the information set forth in its Press Release dated January 23, 2008, a copy of which is attached hereto as Exhibit 99.1. Except as otherwise provided in the press release, the press release speaks only as of the date of such press release and such press release shall not create any implication that the affairs of the Company have continued unchanged since such date.

Except for the historical information contained in this report, the statements made by the Company are forward-looking statements that involve risks and uncertainties. All such statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. The Company’s future performance could differ significantly from the expectations of management and from results expressed or implied in the Press Release. See the risk factors contained in the Press Release for a discussion of certain risks and uncertainties that may impact such forward-looking statements. For further information on other risk factors, please refer to the “Risk Factors” contained in the Company’s Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission. The Company disclaims any obligation or duty to update or modify these forward-looking statements.

Item 9.01. Financial Statements and Exhibits

Exhibit No.	Description
99.1	Press Release Dated January 23, 2008

2

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Rollins, Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ROLLINS, INC.
Date: January 23, 2008	By:	/s/ Harry J. Cynkus
	Name:	Harry J. Cynkus
	Title:	Chief Financial Officer and Treasurer
		(Principal Financial and Accounting Officer)

3

EX-99

Exhibit 99.1

For Further Information Contact

Harry J. Cynkus (404) 888-2922

FOR IMMEDIATE RELEASE

ROLLINS, INC. REPORTS RECORD FOURTH QUARTER AND

FULL-YEAR 2007 FINANCIAL RESULTS

Company Posts 10th Consecutive Year of Improving Financial Performance

• Revenue increased 5.5% for the quarter and 4.2% for full year

• Diluted Earnings per share rose from $0.56 to $0.64 for 2007, a 14.3% increase and 20% for the quarter from $0.10 to $0.12

• Cash and Cash Equivalents increased 12.5% to $71.3 million

ATLANTA, GEORGIA, January 23, 2008: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for its fourth quarter and year ended December 31, 2007.

The Company recorded fourth quarter revenues of $216.0 million, an increase of 5.5% over the prior year’s fourth quarter revenue of $204.7 million. Net income increased 13.2% to $11.9 million or $0.12 per diluted share for the fourth quarter ended December 31, 2007, compared to $10.5 million or $0.10 per diluted share for the same period in 2006.

Revenues for full year 2007 rose 4.2% to $894.9 million, compared to $858.9 million for the prior year. Rollins’ net income for the full year rose 12% to $64.7 million or $0.64 per diluted share compared to net income of $57.8 million or $0.56 per diluted share for the prior year.

Rollins’ balance sheet continued to grow with total assets increasing to $475.2 million and stockholder’s equity growth to $233.6 million. The Company ended the year with cash and cash equivalents of $71.3 million, up 12.5% over last year.

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. stated, “The positive performance we achieved in our fourth quarter and full year reflect the success of our sales and service programs. We are seeing the benefits from the investments we are making that are generating improved sales growth as well as improving service efficiency”.

Mr. Rollins concluded, “We are excited about our Company’s opportunities in the new year. The continued development and deployment of our key programs should enable us to maintain our momentum. We are very proud of our people who have worked diligently to make 2007 such a success and likewise will be key in 2008.”

Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, Inc., PCO Services, Western Pest Services, and The Industrial Fumigant Company, the Company provides essential pest control services and protection against termite damage, rodents and insects to approximately 1.7 million customers in the United States, Canada, Mexico, Central America, the Caribbean, the Middle East and Asia from over 400 locations. You can learn more about our subsidiaries by visiting our Web sites at www.orkin.com, www.westernpest.com, www.indfumco.com and www.rollins.com.  You can also find this and other news releases at www.rollins.com by accessing the news releases button.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This release contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.These forward-looking statements include the Company’s belief that the investments the Company is making are generating improved sales growth and service efficiency; the Company’s excitement about the Company’s opportunities for the new year; and the Company’s belief that the continued development and deployment of its key programs should enable the Company to maintain its momentum.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 and integrate potential acquisitions; climate and weather trends; competitive factors and pricing practices; expected benefits of the commercial re-engineering project may not be realized; 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. A more detailed discussion of potential risks facing the Company can be found in the Company’s Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2006.

ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)
	2007		2006
At December 31,	(unaudited)		(unaudited)
ASSETS
Cash and cash equivalents	$	71,280	$	63,344
Trade receivables, short-term		54,457		52,693
Materials and supplies		8,846		8,401
Deferred income taxes		17,162		19,435
Other current assets		8,495		7,200
Total Current Assets		160,240		151,073
Equipment and property, net		77,370		72,141
Goodwill		126,684		125,161
Customer Contracts		63,056		67,761
Other Intangible assets		9,232		9,294
Deferred income taxes		7,576		14,069
Trade receivables, long-term		8,409		8,796
Prepaid Pension		16,624		—
Other assets		6,037		4,880
Total Assets	$	475,228	$	453,175
LIABILITIES
Capital leases	$	1,186	$	498
Accounts payable		19,140		16,309
Accrued insurance		13,505		14,310
Accrued compensation and related liabilities		45,605		47,305
Unearned revenue		81,678		79,441
Other current liabilities		26,587		27,343
Total Current Liabilities		187,701		185,206
Capital leases, less current portion		601		124
Accrued pension		—		6,946
Long-term accrued liabilities		53,373		49,440
Total Liabilities		241,675		241,716
STOCKHOLDERS’ EQUITY
Common stock		100,636		101,837
Retained earnings and other equity		132,917		109,622
Total Stockholders’ Equity		233,553		211,459
Total Liabilities and Stockholders’ Equity	$	475,228	$	453,175

ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED DECEMBER 31,
(in thousands except per share data)
(unaudited)
	Fourth Quarter Ended						Twelve Months Ended
	December 31,						December 31,
		2007			2006			2007			2006
REVENUES
Customer services	$	215,954		$	204,653		$	894,920		$	858,878
COSTS AND EXPENSES
Cost of services provided		117,199			112,601			468,665			457,869
Depreciation and amortization		6,586			6,460			27,068			26,860
Sales, general and administrative		74,633			69,250			296,615			280,578
(Gain)/Loss on sale of assets		61			(65	)		(52	)		(81	)
Interest income		(749	)		(539	)		(2,289	)		(1,507	)
		197,730			187,707			790,007			763,719
INCOME BEFORE TAXES		18,224			16,946			104,913			95,159
PROVISION FOR INCOME TAXES		6,290			6,407			40,182			37,350
NET INCOME	$	11,934		$	10,539		$	64,731		$	57,809
NET INCOME PER SHARE - BASIC	$	0.12		$	0.10		$	0.65		$	0.57
NET INCOME PER SHARE - DILUTED	$	0.12		$	0.10		$	0.64		$	0.56
Weighted average shares outstanding - basic		99,854			100,662			100,299			100,747
Weighted average shares outstanding - Diluted		101,051			103,090			101,409			103,314

CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)

 

Management will hold a conference call to discuss

Fourth quarter results on:

Wednesday, January 23, 2008 at:

10:00 a.m. Eastern

9:00 a.m. Central

8:00 a.m. Mountain

7:00 a.m. Pacific

TO PARTICIPATE:

Please dial 800-240-2430 domestic;

303-262-2140 international

at least 5 minutes before start time.

REPLAY: available through January 30, 2008

Please dial 800-405-2236/303-590-3000, Passcode: 11106089

THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT

www.viavid.net

Questions?

Contact Janet Jazimin at Financial Relations Board at 212-827-3777

Or email to jjazimin@financialrelationsboard.com