Rollins (ROL) 8-K Reports Positive First Quarter Financial Results

Exhibit 99.1

For Further Information Contact

Harry J. Cynkus (404) 888-2922

FOR IMMEDIATE RELEASE

ROLLINS, INC.

REPORTS POSITIVE FIRST QUARTERFINANCIAL RESULTS

ATLANTA, GEORGIA, April 23, 2008: Rollins, Inc. (NYSE:ROL), a premier North American consumer and commercial services company, today reported unaudited financial results for the first quarter ended March 31, 2008. Revenues grew 4.4% to $210.1 million compared to $201.2 million for the first quarter ended March 31, 2007.

The Company recorded net income of $13.8 million or $0.14 per diluted share for the first quarter ended March 31, 2008, compared to $12.8 million or $0.13 per diluted share for the first quarter ended March 31, 2007.

On January 23, 2008, Rollins, Inc. approved a 25% increase in the Company’s regular quarterly cash dividend to $0.0625. Also in the first quarter, the Company announced that it repurchased 236,000 shares of common stock at a weighted average price of $17.09 per share. In total, approximately 778,000 additional shares may be purchased under previous authorization by the Board of Directors.

Commenting on the Company's results, Gary W. Rollins, President and Chief Executive Officer of Rollins, Inc. said, “We were pleased with our revenue improvement in the first quarter. Commercial sales, which significantly increased in the fourth quarter, continued to be strong in our first quarter. This quarter is not a high volume quarter for Residential Pest Control and Termite Control due to the small amount of pest activity. As the weather warms, these businesses will gain momentum.

"On April 3, 2008, we completed the acquisition of HomeTeam Pest Defense, a subsidiary of Centex Corporation (NYSE:CTX) for a cash payment of approximately $137 million. HomeTeam recorded pest control revenues of $134 million for the twelve months completed March 31, 2007. HomeTeam has 50 offices in 13 states, is the nation’s third largest residential pest management company and performs services for approximately 400,000 customers coast to coast. This acquisition provides significant opportunity for Rollins to leverage HomeTeam’s proprietary technology and new home marketing expertise to more markets throughout the U.S. The purchase of HomeTeam will provide us with an entry into a new business channel, and provide our company a meaningful opportunity for longer term growth. We look forward to working with this great team of professionals, and will benefit from their talent and experience.”

Rollins, Inc. is a premier North American consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, Inc., PCO Services, Rollins HomeTeam, 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 2.1 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 residential pest control and termite control businesses will gain momentum as the weather warms; the acquisition of HomeTeam Pest Defense provides significant opportunity for the Company to leverage HomeTeam’s proprietary technology and new home marketing expertise to more markets throughout the U.S.; the purchase of HomeTeam will provide the Company with an entry into a new business channel and provide the Company a meaningful opportunity for longer term growth; and the Company will benefit from the talent and experience of the HomeTeam Pest Defense team of professionals.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, 2007.

ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)
	2008		2007
At March 31,	(unaudited)		(unaudited)
ASSETS
Cash and cash equivalents	$	71,365		$	54,994
Trade receivables, short-term		53,908			50,711
Materials and supplies		8,715			8,691
Deferred income taxes		17,901			19,603
Other current assets		9,115			9,971
Total Current Assets		161,004			143,970
Equipment and property, net		76,823			76,850
Goodwill		126,296			125,230
Other Intangible Assets		9,176			9,195
Customer Contracts		60,843			65,950
Deferred income taxes		7,676			12,956
Trade receivables, long-term		8,918			8,519
Prepaid Pension		17,169			—
Other assets		6,828			5,514
Total Assets	$	474,733		$	448,184
LIABILITIES
Capital leases	$	798		$	1,183
Accounts payable		18,562			15,827
Accrued insurance		14,235			13,978
Accrued compensation and related liabilities		33,048			33,189
Other current liabilities		32,553			35,889
Unearned revenue		85,253			83,674
Total Current Liabilities		184,449			183,740
Capital leases, less current portion		757			939
Accrued pension		—			6,946
Long-term accrued liabilities		52,979			51,694
Total Liabilities		238,185			243,319
STOCKHOLDERS’ EQUITY
Common stock		100,913			101,919
Retained earnings and other equity		135,635			102,946
Total Stockholders’ Equity		236,548			204,865
Total Liabilities and Stockholders’ Equity	$	474,733		$	448,184

ROLLINS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE FIRST QUARTER ENDED MARCH 31,
(in thousands except per share data)
(unaudited)
	Three Months ended
	March 31,
		2008			2007
REVENUES
Customer services	$	210,078		$	201,232
COSTS AND EXPENSES
Cost of services provided		110,359			106,836
Depreciation and amortization		6,631			6,686
Sales, general and administrative		70,760			67,041
(Gain)/loss on sales of assets		(21	)		(7	)
Interest income		(397	)		(552	)
		187,332			180,004
INCOME BEFORE TAXES		22,746			21,228
PROVISION FOR INCOME TAXES		8,907			8,435
NET INCOME	$	13,839		$	12,793
NET INCOME PER SHARE - BASIC	$	0.14		$	0.13
NET INCOME PER SHARE - DILUTED	$	0.14		$	0.13
Weighted average shares outstanding - basic		99,388			100,982
Weighted average shares outstanding - Diluted		100,401			103,094

CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)

 

Management will hold a conference call to discuss

First Quarter results on:

Wednesday, April 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 800-366-3908domestic;

303-262-2130international

at least 5 minutes before start time.

REPLAY: available through April 30, 2008

Please dial 800-405-2236/303-590-3000, Pass code:11112420

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