Rollins, Inc. Reports Record Second Quarter Financial Results

ATLANTA, July 23 /PRNewswire-FirstCall/ -- Rollins, Inc. (NYSE: ROL), a
premier North American consumer and commercial services company, today
reported unaudited financial results for the second quarter ended June 30,
2008. Revenues grew 18.7% to $284.5 million compared to $239.6 million for the
second quarter ended June 30, 2007. Revenue growth excluding our recent
acquisition of HomeTeam Pest Defense improved 4.7%.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080723/CLW029LOGO )
The Company recorded net income of $22.7 million or $0.23 per diluted
share for the second quarter ended June 30, 2008, compared to $21.2 million or
$0.21 per diluted share for the second quarter ended June 30, 2007, a 7.1%
increase.
During the quarter, the Company repurchased 262,775 shares of common stock
at a weighted average price of $15.85 per share, with a total of 498,775
shares repurchased year-to-date. In total, approximately 515,491 additional
shares may be purchased under previously approved programs by the Board of
Directors.
Commenting on the Company's results, Gary W. Rollins, President and Chief
Executive Officer of Rollins, Inc. said, "Despite the tough economy, we have
continued to make headway this year growing our revenues and increasing our
profitability. This sustained performance demonstrates our ability to improve
our company in varying economic environments. We continue to invest in
programs that will provide future growth and profitability. These commitments
and as well as our current operational initiatives coupled with our employees'
dedication to improving our business, puts us on track to meet our financial
goals for 2008.
"We are also extremely pleased with the contribution that HomeTeam Pest
Defense made to our revenue and cash flow. HomeTeam is an excellent company
with superb management and associates. In their first 90 days as a member of
the Rollins team they have exceeded our expectations and to date are running
ahead of plan."
Rollins, Inc. is a premier North American consumer and commercial services
company. Through its wholly owned subsidiaries, Orkin, Inc., PCO Services,
HomeTeam Pest Defense, Western Pest Services, and The Industrial Fumigant
Company, the Company provides essential pest control services and protection
against termite damage, rodents and insects to over 2 million customers in the
United States, Canada, Mexico, Central America, the Caribbean, the Middle East
and Asia from over 500 locations. You can learn more about our subsidiaries by
visiting our Web sites at www.orkin.com, www.pestdefense.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
its past performance demonstrates its ability to improve the Company in
varying economic environments; it continues to invest in programs that will
provide future growth and profitability; and the Company's commitments as well
as its current operational initiatives coupled with its employees' dedication
to improving its business puts the Company on track to meet its financial
goals for 2008. 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; 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, 2007.

ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)

At June 30, (unaudited) 2008 2007
ASSETS
Cash and cash equivalents $15,272 $57,044
Trade receivables, short-term 67,602 58,808
Accounts Receivable - Other 7,606 3,310
Materials and supplies 10,260 8,740
Deferred income taxes 17,934 18,528
Other current assets 9,767 9,621
Total Current Assets 128,441 156,051

Equipment and property, net 78,805 77,634
Goodwill 183,083 125,974
Other Intangible Assets 25,364 9,155
Customer Contracts 130,746 66,893
Deferred income taxes 8,020 12,886
Trade receivables, long-term 9,998 8,908
Prepaid Pension 17,443 -
Other assets 6,908 5,873
Total Assets $588,808 $463,374

LIABILITIES
Loans outstanding $54,000 $-
Capital leases 822 1,270
Accounts payable 36,444 24,428
Accrued insurance 13,541 14,225
Accrued compensation and related liabilities 46,445 40,202
Other current liabilities 31,971 28,260
Unearned revenue 98,837 85,754
Total Current Liabilities 282,060 194,139

Capital leases, less current portion 460 1,013
Accrued pension - 6,946
Long-term accrued liabilities 56,812 52,966
Total Liabilities 339,332 255,064

STOCKHOLDERS' EQUITY
Common stock 100,869 101,041
Retained earnings and other equity 148,607 107,269
Total Stockholders' Equity 249,476 208,310

Total Liabilities and Stockholders' Equity $588,808 $463,374

ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 30,
(in thousands except per share data)
(unaudited)

Second Quarter Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007

REVENUES
Customer services $284,499 $239,618 $494,577 $440,850
COSTS AND EXPENSES
Cost of services
provided 146,076 121,601 256,029 228,437
Depreciation and
amortization 8,685 6,911 15,316 13,597
Sales, general and
administrative 92,030 76,787 163,518 143,828
(Gain)/loss on sales
of assets (14) (89) (35) (96)
Interest (income)/
expense, net 393 (522) (326) (1,074)

247,170 204,688 434,502 384,692

INCOME BEFORE TAXES 37,329 34,930 60,075 56,158

PROVISION FOR INCOME
TAXES 14,591 13,691 23,498 22,126
NET INCOME $22,738 $21,239 $36,577 $34,032

NET INCOME PER SHARE
- BASIC $0.23 $0.21 $0.37 $0.34

NET INCOME PER SHARE
- DILUTED $0.23 $0.21 $0.36 $0.33

Weighted average shares
outstanding - basic 99,369 100,465 99,378 100,722

Weighted average shares
outstanding - diluted 100,171 101,513 100,286 101,811

Rollins, Inc.
Reconciliation
Revenue Excluding HomeTeam Pest Defense

Second Quarter
$Better/ %Better/
2008 2007 (Worse) (Worse)

Net Revenues $284,499 $239,618 $44,881 18.7%
Less:
Revenues from Home-
Team Pest Defense 33,738 - 33,738
Revenue Excluding
HomeTeam Pest
Defense $250,761 $239,618 $11,143 4.7%

CONFERENCE CALL ANNOUNCEMENT
Rollins, Inc.
(NYSE: ROL)

Management will hold a conference call to discuss
Second Quarter results on:

Wednesday, July 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 800-366-3908 domestic;
303-262-2130 international at least 5 minutes before start time.

REPLAY: available through July 30, 2008
Please dial 800-405-2236/303-590-3000, Pass code: 11116485
THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT
www.viavid.net

Questions?
Contact Janet Jazmin at Financial Relations Board at 212-827-3777
Or email to jjazmin@frbir.com

SOURCE Rollins, Inc.

Harry J. Cynkus, +1-404-888-2922, for Rollins, Inc.