Rollins, Inc. Reports First Quarter 2009 Financial Results

ATLANTA, April 29 /PRNewswire-FirstCall/ -- Rollins, Inc. (NYSE: ROL), a
premier North American consumer and commercial services company, today
reported unaudited financial results for its first quarter ended March 31,
2009. Revenues grew 15.7% to $243.0 million compared to $210.1 million for the
first quarter ended March 31, 2008. Revenue growth excluding significant
acquisitions and the negative impact of the Canadian dollar improved modestly.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080723/CLW029LOGO )

Net income increased 14.2% to $15.8 million or $0.16 per diluted share for the
first quarter ended March 31, 2009 compared to $13.8 million or $0.14 per
diluted share for the first quarter ended March 31, 2008. This was the
Company's 12th consecutive quarter of improved earnings. EBITDA increased
24.3% for the first quarter ended March 31, 2009 compared to the prior year
quarter(1).

On January 27, 2009, Rollins increased its regular quarterly cash dividend to
shareholders 12 percent to $0.07. The Company also announced that it
repurchased 603,400 shares of common stock at a weighted average price of
$15.19 per share during the quarter. In total, approximately 4.0 million
additional shares may be purchased under its share repurchase program.

Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc.
stated, "This is a very challenging time for all businesses, and our company
is fortunate to have a large base of recurring revenue, great pest control
brands, and a proven team of highly professional and dedicated employees. One
of our greatest company attributes is to be situated in an industry that is
recession resistant. Historically during economic downturns prospective
customers and existing customers maintain a high regard for our ability to
protect their health and property against the threat of pests."

Mr. Rollins, concluded, "Although we are seeing an expected softening in
residential pest control sales, we are experiencing gains in commercial pest
control as well as our termite control business. We will continue to seek new
growth opportunities both internally and externally through acquisitions."

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 the Company
is situated in an industry that is recession resistant, the Company's
expectation for softening residential pest control sales and belief that it is
experiencing gains in commercial pest control as well as in termite control,
and the Company's plans to continue to seek new growth opportunities both
internally and externally through acquisitions. 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, economic and competitive conditions which may adversely affect our
Company's business; 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, 2008.

(1) EBITDA is a financial measure which does not conform to generally accepted
accounting principles (GAAP). Additional disclosure regarding this non-GAAP
financial measure is included in the attachment to this press release.

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

At March 31, (unaudited) 2009 2008

ASSETS
Cash and cash equivalents $14,957 $71,365
Trade receivables, short-term 58,783 51,601
Accounts Receivable - Other 1,854 2,307
Materials and supplies 11,555 8,715
Deferred income taxes 19,892 17,901
Other current assets 10,919 9,115
Total Current Assets 117,960 161,004

Equipment and property, net 78,325 76,823
Goodwill 188,101 126,296
Other Intangible Assets 23,172 9,176
Customer Contracts 126,502 60,843
Deferred income taxes 17,514 7,676
Trade receivables, long-term 8,946 8,918
Prepaid Pension - 17,169
Other assets 6,396 6,828
Total Assets $566,916 $474,733

LIABILITIES
Loans outstanding $ 62,000 $ -
Capital leases 356 798
Accounts payable 18,712 12,427
Accrued insurance 15,067 14,235
Accrued compensation and related
liabilities 45,216 39,183
Other current liabilities 33,165 32,553
Unearned revenue 90,785 85,253
Total Current Liabilities 265,301 184,449

Capital leases, less current portion 120 757
Accrued pension 20,232 -
Long-term accrued liabilities 53,068 52,979
Total Liabilities 338,721 238,185

STOCKHOLDERS' EQUITY
Common stock 99,882 100,913
Retained earnings and other equity 128,313 135,635
Total Stockholders' Equity 228,195 236,548
Total Liabilities and Stockholders' Equity $566,916 $474,733

ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)

First Quarter Ended
March 31,
2009 2008
REVENUES
Customer services $242,972 $210,078
COSTS AND EXPENSES
Cost of services provided 125,371 109,953
Depreciation and amortization 9,429 6,631
Sales, general and administrative 81,988 71,488
(Gain)/loss on sales of assets (5) (21)
Interest (income)/expense, net 428 (719)
217,211 187,332
INCOME BEFORE TAXES 25,761 22,746
PROVISION FOR INCOME TAXES 9,953 8,907
NET INCOME $15,808 $13,839

NET INCOME PER SHARE - BASIC $0.16 $0.14
NET INCOME PER SHARE - DILUTED $0.16 $0.14

Weighted average shares outstanding -
basic 98,332 99,388
Weighted average shares outstanding -
diluted 99,021 100,401

ROLLINS, INC. AND SUBSIDIARIES
RECONCILIATION
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA)

Three Months Ended
March 31,
2009 2008 $Better/ %Better/
(Worse) (Worse)

Net Income $15,808 $13,839 $1,969 14.2%
Add: Provision For
Income Taxes 9,953 8,907 (1,046) (11.7)
Interest (income)/
Expense 428 (719) (1,147) (159.5)
Depreciation and
Amortization 9,429 6,631 (2,798) (42.2)
EBITDA $35,618 $28,658 $6,960 24.3%

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

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

Wednesday, April 29, 2009 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 800-257-3401 domestic;
303-228-2960 international
at least 5 minutes before start time.

REPLAY: available through May 6, 2009
Please dial 800-405-2236/303-590-3000, Passcode: 11130366
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@financialrelationsboard.com

SOURCE Rollins, Inc.

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