Rollins Inc. Reports Operating Results (10-Q)

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Jul 27, 2012
Rollins Inc. (ROL, Financial) filed Quarterly Report for the period ended 2012-06-30.

Rollins, Inc. has a market cap of $3.38 billion; its shares were traded at around $23.49 with a P/E ratio of 31.9 and P/S ratio of 2.8. The dividend yield of Rollins, Inc. stocks is 1.4%. Rollins, Inc. had an annual average earning growth of 14.7% over the past 10 years. GuruFocus rated Rollins, Inc. the business predictability rank of 4.5-star.

Highlight of Business Operations:

On July 25, 2012, Rollins, Inc. reported its 25th consecutive quarter of improved operating earnings with net income of $33.1 million for the quarter ended June 30, 2012, as compared to $31.1 million for the prior year quarter, a 6.7% improvement. Revenues increased 4.5% to $334.9 million for the quarter as compared to $320.4 million for the prior year quarter. Earnings for the quarter ended June 30, 2012 were $0.23 per diluted share, a 9.5% improvement over the $0.21 per diluted share reported the prior year quarter.

Termite service revenues, which is approximately 19% of the Companys business for the first six months ended June 30, 2012, increased 5.2% compared to the same period in 2011 due to increased leads from the Companys marketing campaign.

Depreciation and amortization expenses for the six months ended June 30, 2012, increased $0.9 million to $19.4 million, an increase of 4.8%, remaining unchanged at 3.1% of revenue. The dollar increase was primarily due to amortization related to acquisitions that occurred over the previous 12 months.

Sales, general and administrative expenses for the six months ended June 30, 2012, increased $7.6 million, or 4.0% to 32.2% of revenues, decreasing from 32.6% in the prior year period due to continued leveraging of administrative salaries in our call centers, reductions in professional services and improvement in bad debt expense.

Rollins balance sheet as of June 30, 2012 and December 31, 2011, includes short-term unearned revenues of $96.1 million and $85.6 million, respectively, representing approximately 8% and 7%, respectively, of our annual revenue. This represents cash paid to the Company by its customers in advance of services that will be recognized over the next twelve months.

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