Rollins Inc. (ROL, Financial) filed Quarterly Report for the period ended 2010-06-30.
Rollins Inc. has a market cap of $2.18 billion; its shares were traded at around $21.92 with a P/E ratio of 26.5 and P/S ratio of 2. The dividend yield of Rollins Inc. stocks is 1.6%. Rollins Inc. had an annual average earning growth of 18% over the past 10 years. GuruFocus rated Rollins Inc. the business predictability rank of 3.5-star.ROL is in the portfolios of Richard Aster Jr of Meridian Fund, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Improved earnings were $45.3 million for the six months ended June 30, 2010, as compared to $41.3 million for the prior year six months, a 9.7% improvement. Revenues increased 4.6% to $551.8 million for the six months as compared to $527.5 million for the prior year six months. Earnings for the six months ended June 30, 2010 were $0.46 per diluted share, a 12.2% improvement over the $0.41 per diluted share reported the prior year six months.
Rollins continues solid financial performance generating $59.0 million in cash from operations year to date. The Company has paid back, as of June 30, 2010, $65.0 million of the $90.0 million borrowed in April 2008 to finance the HomeTeam Pest Defense acquisition. In addition, the Company repurchased 756,828 shares of common stock at a weighted average price of $21.21 per share during the second quarter bringing the total number of shares repurchased year-to date 886,928 at a weighted average of $20.92. In total, approximately 2.1 million additional shares may be repurchased under the Companys share purchase program.
Interest expense, net for the period ended June 30, 2010 was $0.2 million, a decrease of $0.5 million from $0.7 million for the period ended June 30, 2009 due to interest on outstanding debt related to the April 2008 acquisition of HomeTeam Pest Defense.
The Company invested approximately $4.5 million in capital expenditures during the first six months ended June 30, 2010, compared to $6.1 million during the same period in 2009, and expects to invest approximately $8.0 million for the remainder of 2010. Capital expenditures for the first six months consisted primarily of the purchase of equipment replacements and technology related projects. During the first six months ended June 30, 2010, the Company made expenditures for acquisitions totaling $2.2 million, compared to $3.0 million during the same period in 2009. Cash on hand and borrowings under a senior unsecured revolving credit facility primarily funded expenditures for acquisitions. A total of $17.9 million was paid in cash dividends ($0.18 per share) during the first six months of 2010, compared to $14.0 million or ($0.14 per share) during the same period in 2009. The Company repurchased 0.9 million shares during the first six months of 2010 of its $1 par value common stock at a weighted average price of $20.92. The capital expenditures and cash dividends were funded through existing cash balances, operating activities and borrowings under a senior unsecured revolving credit facility. In total, approximately 2.1 million additional shares may be repurchased under the Companys share purchase program.
The Companys $19.3 million of total cash at June 30, 2010, includes approximately $1.8 million invested in various money market funds. The remaining $17.5 million of cash at June 30, 2010 is primarily cash held at various banking institutions. Approximately $7.2 million is held in cash accounts at international bank institutions and the remaining $10.3 million is primarily held in non-interest-bearing accounts at various domestic banks. Late in 2008 and later updated in August 2009, the Federal Deposit Insurance Corporation approved a final rule to strengthen the agencys Temporary Liquidity Guarantee Program. This program guarantees newly issued senior unsecured debt of banks, thrifts, and certain holding companies, and provides full coverage of non-interest bearing deposit transaction accounts. Under this program, participating institutions will be able to provide customers full coverage (above the current $250,000 level) on non-interest bearing accounts, which currently will be in effect until December 31, 2010. Some of the domestic banks where our balances exceed $250,000 chose to opt out of this program, effective January 1, 2010.
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Rollins Inc. has a market cap of $2.18 billion; its shares were traded at around $21.92 with a P/E ratio of 26.5 and P/S ratio of 2. The dividend yield of Rollins Inc. stocks is 1.6%. Rollins Inc. had an annual average earning growth of 18% over the past 10 years. GuruFocus rated Rollins Inc. the business predictability rank of 3.5-star.ROL is in the portfolios of Richard Aster Jr of Meridian Fund, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
On July 28, 2010, Rollins, Inc. reported its 17th consecutive quarter of improved earnings of $27.7 million for the quarter ended June 30, 2010, as compared to $25.5 million for the prior year quarter, an 8.7% improvement. Revenues increased 5.0% to $298.8 million for the quarter as compared to $284.6 million for the prior year quarter. Earnings for the quarter ended June 30, 2010 were $0.28 per diluted share, a 7.7% improvement over the $0.26 per diluted share reported the prior year quarter.Improved earnings were $45.3 million for the six months ended June 30, 2010, as compared to $41.3 million for the prior year six months, a 9.7% improvement. Revenues increased 4.6% to $551.8 million for the six months as compared to $527.5 million for the prior year six months. Earnings for the six months ended June 30, 2010 were $0.46 per diluted share, a 12.2% improvement over the $0.41 per diluted share reported the prior year six months.
Rollins continues solid financial performance generating $59.0 million in cash from operations year to date. The Company has paid back, as of June 30, 2010, $65.0 million of the $90.0 million borrowed in April 2008 to finance the HomeTeam Pest Defense acquisition. In addition, the Company repurchased 756,828 shares of common stock at a weighted average price of $21.21 per share during the second quarter bringing the total number of shares repurchased year-to date 886,928 at a weighted average of $20.92. In total, approximately 2.1 million additional shares may be repurchased under the Companys share purchase program.
Interest expense, net for the period ended June 30, 2010 was $0.2 million, a decrease of $0.5 million from $0.7 million for the period ended June 30, 2009 due to interest on outstanding debt related to the April 2008 acquisition of HomeTeam Pest Defense.
The Company invested approximately $4.5 million in capital expenditures during the first six months ended June 30, 2010, compared to $6.1 million during the same period in 2009, and expects to invest approximately $8.0 million for the remainder of 2010. Capital expenditures for the first six months consisted primarily of the purchase of equipment replacements and technology related projects. During the first six months ended June 30, 2010, the Company made expenditures for acquisitions totaling $2.2 million, compared to $3.0 million during the same period in 2009. Cash on hand and borrowings under a senior unsecured revolving credit facility primarily funded expenditures for acquisitions. A total of $17.9 million was paid in cash dividends ($0.18 per share) during the first six months of 2010, compared to $14.0 million or ($0.14 per share) during the same period in 2009. The Company repurchased 0.9 million shares during the first six months of 2010 of its $1 par value common stock at a weighted average price of $20.92. The capital expenditures and cash dividends were funded through existing cash balances, operating activities and borrowings under a senior unsecured revolving credit facility. In total, approximately 2.1 million additional shares may be repurchased under the Companys share purchase program.
The Companys $19.3 million of total cash at June 30, 2010, includes approximately $1.8 million invested in various money market funds. The remaining $17.5 million of cash at June 30, 2010 is primarily cash held at various banking institutions. Approximately $7.2 million is held in cash accounts at international bank institutions and the remaining $10.3 million is primarily held in non-interest-bearing accounts at various domestic banks. Late in 2008 and later updated in August 2009, the Federal Deposit Insurance Corporation approved a final rule to strengthen the agencys Temporary Liquidity Guarantee Program. This program guarantees newly issued senior unsecured debt of banks, thrifts, and certain holding companies, and provides full coverage of non-interest bearing deposit transaction accounts. Under this program, participating institutions will be able to provide customers full coverage (above the current $250,000 level) on non-interest bearing accounts, which currently will be in effect until December 31, 2010. Some of the domestic banks where our balances exceed $250,000 chose to opt out of this program, effective January 1, 2010.
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