ITEM 2. PROPERTIES.
The Company's headquarters is located in a building owned by the Company at One Rollins Plaza, Wilmington, DE 19803.
The Company's principal operating properties consist of land and buildings used in its truck leasing and rental business. Rollins owns or leases 198 facilities in 41 states.
ITEM 3.
ITEM 3. LEGAL PROCEEDINGS.
Neither the Company nor any of its subsidiaries is a party to any material legal proceedings. The Company and its subsidiaries are engaged in ordinary routine litigation incidental to the business.
ITEM 4.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
NONE. PART II
ITEM 5.
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTERS.
STOCK PRICES AND DIVIDENDS
The range of share prices for the Common Stock on the New York and Pacific Stock Exchanges and per share dividends paid on Common Stock for the fiscal years ended September 30, 1994 and 1993 are as follows:
Prices Dividends 1994 1993 1994 1993 High Low High Low Fiscal Quarter First ........... $14 $11 1/4 $10 5/8 $ 7 7/8 $.033 $.03 Second .......... 14 3/8 11 1/2 12 9 1/2 .033 .03 Third ........... 12 3/8 11 1/8 11 3/4 9 3/8 .033 .03 Fourth .......... 12 1/2 10 7/8 13 7/8 10 1/2 .033 .03
All stock prices and dividend amounts have been adjusted for the three-for- two common stock split distributed on September 15, 1994.
At September 30, 1994, there were 2,580 holders of record of the Common Stock.
ITEM 6.
ITEM 6. SELECTED FINANCIAL DATA.
FIVE YEAR SELECTED FINANCIAL DATA (Dollars in Millions, Except Per Share Amounts)
Fiscal Year Ended September 30, 1994 1993 1992 1991 1990 Revenues 450.9 408.8 380.4 341.9 331.2 Earnings before income taxes 66.4 54.7 40.7 31.5 29.6 Earnings 39.8 30.4 24.6 19.0 18.0 Earnings per share (1) .86 .66 .53 .45 .43 Dividends per common share (1) .13 .12 .11 .09 .09 Total assets 909.7 781.2 708.5 656.4 658.5 Equipment on operating leases, net 637.8 543.4 468.3 441.1 453.8 Equipment financing obligations 498.4 427.3 390.3 378.9 407.2 Long-term debt .8 .9 6.8 9.1 22.6 Shareholders' equity 251.2 216.8 191.0 169.4 133.9
(1) Adjusted for the three-for-two common stock split distributed on September 15, 1994.
ITEM 7.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Results of Operations Fiscal Year 1994 vs. 1993
Revenues increased by $42.1 million (10.3%) as full-service lease, commercial rental and dedicated contract carriage revenues all improved over the prior year.
Operating expenses increased by $16.0 million (9.6%) reflecting the higher revenues. Operating expenses as a percentage of revenues decreased to 40.6% in 1994 from 40.9% in 1993. This improved operating cost ratio resulted from lower maintenance costs on new equipment and continued expense control efforts.
Net depreciation expense increased by $10.0 million (8.9%) due to the increased gross investment in equipment on operating leases and transportation service facilities offset in part by increased gains on the sale of equipment, which are shown as a reduction of depreciation expense. Equipment sale gains increased to $8.5 million from $6.1 million in 1993 as the used equipment market remained strong during 1994.
Selling and administrative expenses increased by $2.0 million (5.0%) mainly due to higher payroll costs in the sales area and to continued emphasis on sales and marketing programs. Selling and administrative expenses decreased to 9.4% of revenues in 1994 from 9.9% of revenues in 1993.
Interest expense increased by $2.4 million (7.0%) due to the increase in average borrowings and higher short-term interest rates offset in part by the refinancing of certain higher interest rate debt.
The effective income tax rates for 1994 and 1993 were 40.0% and 44.4%, respectively.
Net earnings increased by $9.4 million (30.9%) to $39.8 million or $.86 per share from $30.4 million or $.66 per share in 1993. The improvement in net earnings was due mainly to increased revenues and the lower operating cost ratio offset in part by higher depreciation, selling and administrative and interest expenses.
Fiscal Year 1993 vs. 1992
Revenues increased by $28.4 million (7.5%) as full-service lease, commercial rental, guaranteed maintenance and dedicated contract carriage revenues all improved over the prior year. Part of the revenue improvement resulted from the inclusion for a full year of the operations of several small acquisitions made at various dates in fiscal 1992.
Operating expenses increased by $7.2 million (4.5%) reflecting the higher revenues. Operating expenses as a percentage of revenues decreased to 40.9% in 1993 from 42.1% in 1992. Depreciation expense increased by $5.5 million (5.2%) due to the increased investment in equipment on operating leases and transportation service facilities, offset in part by increased gains on the sale of equipment. Gains on the sale of equipment, which are shown as a reduction of depreciation expense, increased to $6.1 million from $3.1 million in 1992 as the market for used equipment improved in 1993.
Selling and administrative expenses increased by $2.6 million (6.8%) due in part to higher payroll costs resulting from personnel additions and increases in other compensation. In addition, data processing, bad debts and office expenses were also higher in 1993. Selling and administrative expenses were 9.9% of revenues in 1993 compared with 10.0% of revenues in 1992.
Interest expense decreased by $.9 million (2.6%) due mainly to the lower interest rates on short-term bank borrowings and to the refinancing of certain higher interest rate debt.
The effective income tax rates for 1993 and 1992 were 44.4% and 39.4%, respectively. The 1993 tax rate includes the deferred tax adjustment of $2.3 million resulting from the increase in the federal income tax rate from 34% to 35%. Excluding the deferred income tax adjustment, the effective income tax rate for 1993 was 40.2%.
Net earnings increased by $5.8 million (23.4%) to $30.4 million or $.66 per share from $24.6 million or $.53 per share in 1992. The increase in earnings was due mainly to the higher revenues and to the reduction in interest expense, offset in part by the $2.3 million deferred income tax adjustment.
Liquidity and Capital Resources
The Company's primary operation is the full-service leasing and rental of tractors, trucks and trailers which requires substantial amounts of capital and constant access to financing sources. At September 30, 1994, equipment on operating leases of $637.8 million represented 70.1% of the Company's assets. Funds for the acquisition of these assets are provided principally by the cash flows from operations, the proceeds from the sale of used equipment and borrowings under the Company's revolving credit facility. Cash flows from operations arising from net earnings, depreciation and changes in deferred income taxes and working capital were $173.7 million in 1994, a 4.3% increase from $166.5 million in 1993. Because the primary source of funds from operations is from existing leases already under contract, the Company expects to continue to generate a substantial amount of funds from operations in 1995.
Equipment financing obligations and long-term debt increased to $499.3 million at September 30, 1994 from $428.4 million a year earlier. Borrowings from external sources include equipment term loans furnished by commercial banks and the issuance of Collateral Trust Debentures.
The Company's principal subsidiary, Rollins Leasing Corp., has a $100.0 million revolving credit facility of which $66.5 million was available at September 30, 1994. This facility is used primarily to finance vehicle purchases on an interim basis pending placement of long-term financing. On March 21, 1994, the Company sold $60.0 million of 7% Series M Collateral Trust Debentures due March 15, 2001. Additionally, on September 21, 1994, the Company arranged for the private placement of $100.0 million of 8.27% Series N Collateral Trust Debentures due March 15, 2002. Closing will occur on March 15, 1995 with the proceeds used to refinance certain existing indebtedness and for new equipment purchases committed for in the Spring of 1995.
At September 30, 1994, the Company could sell an additional $140.0 million of Collateral Trust Debentures under its current shelf registration statement. Based on its access to the debt markets and the relationships with current lending institutions and others who have expressed an interest in providing financing, the Company expects to continue to be able to obtain financing for its equipment and facility purchases at market rates and under satisfactory terms and conditions.
At September 30, 1994 and 1993, the debt to equity ratio of the Company was 2.0 to 1.
Capital expenditures were $297.5 million in 1994 compared with $242.9 million in 1993. The level of economic activity, which in part dictates demand for the Company's services, remained strong in 1994. At September 30, 1994, the Company's commitment for the purchase of revenue equipment was $169.0 million. Based on the current level of business and including commitments already made at September 30, 1994, the Company anticipates spending approximately $300.0 million for equipment and facilities in 1995.
ITEM 8.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
The consolidated financial statements of the Company, the Independent Auditors' Report and the financial statement schedules included in this report are shown on the Index to the Consolidated Financial Statements and Schedules on page 9.
ITEM 9.
ITEM 9. DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
NONE.
PART III
ITEM 10.
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.
Except as presented below, the information called for by this Item 10 is incorporated by reference from the Company's Proxy Statement to be filed pursuant to Regulation 14A for the Annual Meeting of Shareholders to be held on January 26, 1995.
Executive Officers of the Registrant. As of October 31, 1994, the Executive Officers of the registrant were:
Name Position Age Term of Office Patrick J. Bagley Vice President-Finance and 47 7/87 to date Treasurer 1/87 to date
David F. Burr Chairman and Chief Executive 56 10/92 to date Officer, Rollins Leasing Corp.
Michael B. Kinnard Vice President-General Counsel 37 10/94 to date and Secretary 10/94 to date
John W. Rollins Chairman of the Board and 78 1954 to date Chief Executive Officer 10/74 to date
John W. Rollins, Jr. President and Chief Operating 52 9/75 to date Officer and Director
Henry B. Tippie Chairman of the Executive 67 3/74 to date Committee and Vice Chairman of the Board
The Company's Executive Officers are elected for the ensuing year and until their successors are elected.
ITEM 11.
ITEM 11. EXECUTIVE COMPENSATION.
The information called for by this Item 11 is incorporated by reference from the Company's Proxy Statement to be filed pursuant to Regulation 14A for the Annual Meeting of Shareholders to be held on January 26, 1995.
ITEM 12.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
The information called for by this Item 12 is incorporated by reference from the Company's Proxy Statement to be filed pursuant to Regulation 14A for the Annual Meeting of Shareholders to be held on January 26, 1995.
ITEM 13.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
During the year ended September 30, 1994, the following officers and/or directors of the Company were also officers and/or directors of Rollins Environmental Services, Inc.; Patrick J. Bagley, William B. Philipbar, Jr., John C. Peet, Jr. (retired effective September 30, 1994), John W. Rollins, John W. Rollins, Jr. and Henry B. Tippie. The following officers and/or directors of the Company were also officers and/or directors of Matlack Systems, Inc.; Patrick J. Bagley, William B. Philipbar, Jr., John W. Rollins, John W. Rollins, Jr. and Henry B. Tippie. John W. Rollins owns directly and of record 6.2% and 12.0% of the outstanding shares of Common Stock of Rollins
Environmental Services, Inc. and Matlack Systems, Inc. October 31, 1994. The description of transactions between the Company and Rollins Environmental Services, Inc. and between the Company and Matlack Systems, Inc. appears under the caption "Transactions with Related Parties" on page 21 of this 1994 Annual Report on Form 10-K.
PART IV
ITEM 14.
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.
(a) Financial Statements, Financial Statement Schedules and Exhibits.
(1) Financial Statements - See accompanying Index to Consolidated Financial Statements and Schedules on page 12.
(2) Financial Statements Schedules - See accompanying Index to Consolidated Financial Statements and Schedules on page 12.
(3)Exhibits: (3) (a) Restated Certificate of Incorporation of Rollins Truck Leasing Corp. as last amended on January 25, 1990 as filed with the Company's annual report on Form 10-K for the fiscal year ended September 30, 1992 is incorporated herein by reference.
(3) (b) By-Laws of Rollins Truck Leasing Corp. as last amended on November 25, 1987 as filed with the Company's annual report on Form 10-K for the fiscal year ended September 30, 1992 is incorporated herein by reference.
(4) (a) Collateral Trust Indenture dated as of March 21, 1983, between RLC CORP. (now known as Rollins Truck Leasing Corp.) and Bank of America Illinois (formerly Continental Illinois National Bank and Trust Company of Chicago), as Trustee, as filed with the Company's Registration Statement No. 33-40476 on Form S-3 dated May 10, 1991, is incorporated herein by reference.
(4) (b) Third Supplemental Collateral Trust Indenture dated February 20, 1986 to the Collateral Trust Indenture dated March 21, 1983 between RLC CORP. (now known as Rollins Truck Leasing Corp.) and Bank of America Illinois (formerly Continental Illinois National Bank and Trust Company of Chicago), as Trustee, as filed with the Company's Registration Statement No. 33-40476 on Form S-3 dated May 10, 1991, is incorporated herein by reference.
(4) (c) Sixth Supplemental Collateral Trust Indenture dated March 15, 1988 to the Collateral Trust Indenture dated March 21, 1983 as supplemented and amended by a Third Supplemental Indenture thereto dated as of February 20, 1986, between RLC CORP. (now known as Rollins Truck Leasing Corp.) and Bank of America Illinois (formerly Continental Illinois National Bank and Trust Company of Chicago), as Trustee.
(4) (d) Seventh Supplemental Collateral Trust Indenture dated March 15, 1989 to the Collateral Trust Indenture dated March 21, 1983 as supplemented and amended by a Third Supplemental Indenture thereto dated as of February 20, 1986, between RLC CORP. (now known as Rollins Truck Leasing Corp.) and Bank of America Illinois (formerly Continental Bank N.A.), as Trustee.
(4) (e) Eighth Supplemental Collateral Trust Indenture dated May 15, 1990 to the Collateral Trust Indenture dated March 21, 1983 as supplemented and amended by a Third Supplemental Indenture thereto dated as of February 20, 1986, between Rollins Truck Leasing Corp. and Bank of America Illinois (formerly Continental Bank, N.A.), as Trustee, as filed with the Company's Registration Statement No. 33-67682 on Form S-3 dated August 20, 1993 is incorporated herein by reference.
(4) (f) Ninth Supplemental Collateral Trust Indenture dated December 1, 1991 to the Collateral Trust Indenture dated March 21, 1983 as supplemented and amended by a Third Supplemental Indenture thereto dated as of February 20, 1986 and by an Eighth Supplemental Indenture dated May 15, 1990, between Rollins Truck Leasing Corp. and Bank of America Illinois (formerly Continental Bank, N.A.), as Trustee, as filed with the Company's report on Form 8-K dated December 12, 1991, is incorporated herein by reference.
(4) (g) Tenth Supplemental Collateral Trust Indenture dated April 28, 1992 to the Collateral Trust Indenture dated March 21, 1983 as supplemented and amended by a Third Supplemental Indenture thereto dated as of February 20, 1986 and by an Eighth Supplemental Indenture dated May 15, 1990, between Rollins Truck Leasing Corp. and Bank of America Illinois (formerly Continental Bank, N.A.), as Trustee, as filed with the Company's report on Form 8-K dated April 28, 1992, is incorporated herein by reference.
(4) (h) Eleventh Supplemental Collateral Trust Indenture dated March 15, 1993 to the Collateral Trust Indenture dated March 21, 1983 as supplemented and amended by a Third Supplemental Indenture thereto dated as of February 20, 1986 and by an Eighth Supplemental Indenture dated May 15, 1990, between Rollins Truck Leasing Corp. and Bank of America Illinois (formerly Continental Bank, N.A.), as Trustee, as filed with the Company's report on Form 8-K dated March 30, 1993, is incorporated herein by reference.
(4) (i) Twelfth Supplemental Collateral Trust Indenture dated March 15, 1994 to the Colalteral Trust Indenture dated March 21, 1983 as supplemented and amended by a Third Supplemental Indenture thereto dated as of February 20, 1986 and by an Eighth Supplemental Indenture dated May 15, 1990, between Rollins Truck Leasing Corp. and Bank of America Illinois (formerly Continental Bank, N.A.), as Trustee, as filed with the Company's report on Form 8-K dated March 21, 1994, is incorporated herein by reference.
(4) (j) RLC CORP. (now known as Rollins Truck Leasing Corp.) Rights Agreement dated as of June 14, 1989 as filed as an Exhibit to Form 8-A filed by Registrant on June 15, 1989 is incorporated herein by reference.
(10) (a) RLC CORP. (now known as Rollins Truck Leasing Corp.) 1982 Incentive Stock Option Plan, as filed with the Company's Proxy Statement for the Annual Meeting of Shareholders held on January 27, 1983, is incorporated herein by reference.
(10) (b) RLC CORP. (now known as Rollins Truck Leasing Corp.) 1986 Stock Option Plan, as filed with the Company's Proxy Statement for the Annual Meeting of Shareholders held on January 29, 1987, is incorporated herein by reference.
(10) (c) Rollins Truck Leasing Corp. 1993 Stock Option Plan, as filed with the Company's Proxy Statement for the Annual Meeting of Shareholders held on January 27, 1994, is incorporated herein by reference.
(21) Rollins Truck Leasing Corp. Subsidiaries at September 30, 1994.
(23) Consent of KPMG Peat Marwick LLP, Independent Auditors, for incorporation by reference in Registration Statement No. 33- 67682 filed on Form S-3.
(b) Reports on Form 8-K.
No reports on Form 8-K were filed by Rollins Truck Leasing Corp. during the last quarter of the period covered by this report. However, on October 13, 1994, a report on Form 8-K was filed disclosing that effective at the close of business September 30, 1994, Michael B. Kinnard was appointed Vice President-General Counsel and Secretary to Rollins Truck Leasing Corp. Mr. Kinnard succeeds John C. Peet, Jr., who previously held the same positions and whose resignation was accepted effective at the close of business September 30, 1994.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
DATED: November 23, 1994 ROLLINS TRUCK LEASING CORP. (Registrant)
BY: /s/ John W. Rollins, Jr. John W. Rollins, Jr. President and Chief Operating Officer and Director
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:
/s/Patrick J. Bagley Vice President-Finance and Treasurer November 23, 1994 Patrick J. Bagley Chief Financial Officer Chief Accounting Officer
/s/John W. Rollins Chairman of the Board and November 23, 1994 John W. Rollins Chief Executive Officer
/s/Gary W. Rollins Director November 23, 1994 Gary W. Rollins
/s/Henry B. Tippie Chairman of the Executive November 23, 1994 Henry B. Tippie Committee and Vice Chairman of the Board
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES
(1) Consolidated Page(s) Independent Auditors' Report on Financial Statements and Financial Statement Schedules 14
Consolidated Statement of Earnings for the years ended September 30, 1994, 1993 and 1992 15
Consolidated Balance Sheet at September 30, 1994 and 1993 16
Consolidated Statement of Cash Flows for the years ended September 30, 1994, 1993 and 1992 17
Notes to the Consolidated Financial Statements 18 to 26
(2) Financial Statement Schedules
Rollins Truck Leasing Corp. (Parent) Schedule III - Condensed Financial Information
Balance Sheet at September 30, 1994 and 1993 27
Statement of Earnings for the years ended September 30, 1994, 1993 and 1992 28
Statement of Cash Flows for the years ended September 30, 1994, 1993 and 1992 29
Notes to Financial Statements 30
Rollins Truck Leasing Corp. and Subsidiaries Consolidated
Schedule II - Amounts Receivable from Related Parties and Underwriters, Promoters, and Employees (Other Than Related Parties) for the years ended September 30, 1994, 1993 and 1992 31
Schedule IV - Indebtedness of Related Parties - Not Current for the years ended September 30, 1994, 1993 and 1992 32
Schedule V - Property, Plant and Equipment for the years ended September 30, 1994, 1993 and 1992 33
Schedule VI - Accumulated Depreciation of Property, Plant and Equipment for the years ended September 30, 1994, 1993 and 1992 34
Schedule VIII - Valuation and Qualifying Accounts for the years ended September 30, 1994, 1993 and 1992 35
Schedule X - Supplementary Income Statement Information for the years ended September 30, 1994, 1993 and 1992 36
Any financial statement schedules otherwise required have been omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.
Independent Auditors' Report
The Shareholders and Board of Directors Rollins Truck Leasing Corp.
We have audited the consolidated financial statements of Rollins Truck Leasing Corp. and subsidiaries as listed in the accompanying index. In connection with our audits of the consolidated financial statements, we also have audited the financial statement schedules as listed in the accompanying index. These consolidated financial statements and financial statement schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Rollins Truck Leasing Corp. and subsidiaries as of September 30, 1994 and 1993, and the results of their operations and their cash flows for each of the years in the three-year period ended September 30, 1994, in conformity with generally accepted accounting principles. Also in our opinion, the related financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.
KPMG Peat Marwick LLP
Wilmington, Delaware October 25, 1994
CONSOLIDATED STATEMENT OF EARNINGS
Year Ended September 30, 1994 1993 1992 Revenues $450,903,000 $408,778,000 $380,384,000 Expenses: Operating 183,222,000 167,248,000 160,023,000 Depreciation, net of gain on disposition of property and equipment 121,982,000 112,005,000 106,493,000 Selling and administrative 42,473,000 40,440,000 37,855,000 347,677,000 319,693,000 304,371,000
Earnings before interest expense and income taxes 103,226,000 89,085,000 76,013,000 Interest expense, net 36,836,000 34,428,000 35,345,000 Earnings before income taxes 66,390,000 54,657,000 40,668,000 Income taxes 26,562,000 24,241,000 16,029,000
Net earnings $ 39,828,000 $ 30,416,000 $ 24,639,000
Earnings per share (1) $ .86 $ .66 $ .53
Average common shares and equivalents outstanding 46,310,000 46,260,000 46,007,000
(1) Adjusted for the three-for-two common stock split distributed on September 15, 1994.
The Notes to the Consolidated Financial Statements are an integral part of these statements.
CONSOLIDATED BALANCE SHEET
September 30, 1994 1993 ASSETS Current assets Cash $ 15,094,000 $ 15,081,000 Accounts receivable, net of allowance for doubtful accounts: 1994-$1,770,000; 1993-$1,620,000 52,031,000 48,917,000 Inventory of parts and supplies 8,558,000 8,679,000 Prepaid expenses 12,726,000 10,147,000 Refundable income taxes 2,571,000 - Deferred income taxes 11,472,000 7,331,000 102,452,000 90,155,000 Equipment on operating leases, at cost, net of accumulated depreciation 637,768,000 543,396,000 Other property and equipment, at cost, net of accumulated depreciation 146,618,000 124,170,000 Note receivable-Matlack, Inc. (including $900,000 due within one year) 6,000,000 6,000,000 Excess of cost over net assets of businesses acquired 11,903,000 12,131,000 Other assets 4,976,000 5,309,000 $909,717,000 $781,161,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities (excluding equipment financing obligations) Accounts payable $ 7,205,000 $ 5,153,000 Accrued liabilities 40,114,000 38,310,000 Current maturities of long-term debt 146,000 209,000 47,465,000 43,672,000 Equipment financing obligations including maturities due within one year: 1994-$30,214,000; 1993-$24,665,000 498,365,000 427,307,000 Long-term debt 782,000 922,000 Other liabilities 8,898,000 9,158,000 Deferred income taxes 103,010,000 83,352,000
Commitments and contingent liabilities (see Notes to the Consolidated Financial Statements)
Shareholders' equity: Common stock, $1 par value Outstanding: 1994-45,770,678 shares; 1993-45,544,355 shares 45,771,000 30,363,000 Capital in excess of par value 20,319,000 35,016,000 Retained earnings 185,107,000 151,371,000 251,197,000 216,750,000 $909,717,000 $781,161,000
The Notes to the Consolidated Financial Statements are an integral part of these statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
Year Ended September 30, 1994 1993 1992 Cash flows from operating activities: Net earnings $ 39,828,000 $ 30,416,000 $ 24,639,000 Reconciliation of net earnings to net cash flows from operating activities: Depreciation and amortization 130,741,000 118,366,000 109,828,000 Current and deferred income taxes 12,946,000 11,542,000 7,687,000 Net (increase) decrease in notes and accounts receivable (3,114,000) 9,769,000 (6,694,000) Net increase in accounts payable and accrued liabilities 3,856,000 3,892,000 6,581,000 Net gain on sale of property and equipment (8,530,000) (6,139,000) (3,110,000) Other (2,072,000) (1,315,000) 1,944,000 Net cash flows from operating activities 173,655,000 166,531,000 140,875,000
Cash flows from investing activities: Purchase of property and equipment (297,492,000) (242,910,000) (202,689,000) Proceeds from sales of equipment 58,376,000 48,953,000 53,834,000 Net cash flows used in investing activities (239,116,000) (193,957,000) (148,855,000)
Cash flows from financing activities: Proceeds of equipment financing obligations 177,126,000 177,498,000 167,822,000 Repayment of equipment financing obligations (106,068,000) (140,447,000) (156,493,000) Repayment of long-term debt (203,000) (7,414,000) (3,687,000) Payment of dividends (6,092,000) (5,452,000) (4,831,000) Proceeds of stock options exercised 780,000 759,000 637,000 Preferred stock acquired and retired - - (95,000) Other (69,000) - 309,000 Net cash flows from financing activities 65,474,000 24,944,000 3,662,000
Net increase (decrease) in cash 13,000 (2,482,000) (4,318,000) Cash beginning of period 15,081,000 17,563,000 21,881,000 Cash end of period $ 15,094,000 $ 15,081,000 $ 17,563,000
Supplemental information: Interest paid $ 36,425,000 $ 34,933,000 $ 34,581,000 Income taxes paid $ 13,616,000 $ 12,699,000 $ 8,341,000
The Notes to the Consolidated Financial Statements are an integral part of these statements.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Accounting Policies
The consolidated financial statements include the accounts of all subsidiaries. Intercompany transactions and balances among these subsidiaries have been eliminated.
Lease, rental and other transportation service revenues are recognized pro rata from the date the vehicles are placed in service with the customer. Expenses are recognized concurrently with revenues.
Earnings per common share are computed assuming the conversion of all potentially dilutive securites, namely outstanding stock options and convertible preferred shares prior to their redemption.
The excess of cost over net assets of businesses acquired prior to October 30, 1970 is not being amortized since its value, in management's opinion, has not diminished. The excess of cost over net assets of businesses acquired subsequently is being amortized on a straight-line basis over 40 years.
Inventories of transportation equipment parts and supplies are valued at the lower of first-in, first-out cost or market.
Marketable securities are classified as current or noncurrent assets as appropriate and are carried at the lower of cost or market.
Property and equipment is carried at cost, net of applicable allowances. Depreciation is provided on a straight-line, specific-item basis net of salvage or residual values. The cost and related accumulated depreciation of property and equipment sold or retired are eliminated from the property accounts and the resulting gain or loss is reflected in the Consolidated Statement of Earnings as an adjustment of depreciation expense. Repairs and maintenance are charged to expense as incurred. Major additions and improvements are capitalized and written off over the remaining depreciable lives of the assets.
As of October 1, 1991, the Company adopted SFAS No. 109 Accounting for Income Taxes. The adoption of this accounting rule had no effect on net earnings for the year ended September 30, 1992.
Leasing operations consist of the long-term leasing and short-term rental of transportation equipment. All leases are classified as operating leases and expire on various dates during the next ten years.
Equipment to be sold within one year and equipment financing obligations payable within one year are not classified as current assets or current liabilities.
Equipment on Operating Leases
The Company's investment in equipment on operating leases is as follows:
September 30, 1994 1993 Transportation equipment (1) $951,349,000 $833,232,000 Less accumulated depreciation (313,581,000) (289,836,000) $637,768,000 $543,396,000
(1) Estimated useful life 3 to 12 years
The net gain on disposition of property and equipment was $8,530,000 in 1994, $6,139,000 in 1993 and $3,110,000 in 1992.
Commitments for the purchase of transportation equipment amounted to $169,014,000 at September 30, 1994.
At September 30, 1994, minimum future revenues from non-cancelable leases are as follows:
Year Ending September 30, 1995 $144,295,000 1996 114,944,000 1997 85,796,000 1998 55,552,000 1999 23,819,000 Later Years 1,110,000 Total future minimum lease revenues $425,516,000
Revenues include contingent rentals, which represent all commercial rental revenues and the mileage charges on full-service leases, of $169,755,000 in 1994, $128,528,000 in 1993 and $118,787,000 in 1992.
Other Property and Equipment
The Company's other property and equipment accounts are as follows:
September 30, 1994 1993 Land $ 35,376,000 $ 30,291,000 Transportation service facilities (1) 128,414,000 101,784,000 Other operating assets (1) 33,951,000 35,769,000 Less accumulated depreciation (51,123,000) (43,674,000) $146,618,000 $124,170,000
(1) Estimated useful life 3 to 45 years
Lease Commitments
The Company leases some of the premises and equipment used in its operations. Leases classified as operating leases expire on various dates during the next 20 years. Some of the leases are renewable at the Company's option.
Minimum future rental payments required under operating leases having non- cancelable terms in excess of one year as of September 30, 1994 are as follows:
Year Ending September 30, 1995 $ 3,556,000 1996 3,073,000 1997 2,298,000 1998 1,695,000 1999 1,110,000 Later years 4,388,000 Total minimum payments required $16,120,000
Total rental expense for all operating leases except those with terms of a month or less was $7,695,000 in 1994, $8,134,000 in 1993 and $8,144,000 in 1992.
Income Taxes
The income tax provisions for the three years ended September 30, 1994 are comprised as follows:
Year Ended September 30, 1994 1993 1992 Current: Federal $ 8,692,000 $ 9,101,000 $ 6,668,000 State 2,796,000 2,280,000 1,547,000 Deferred: Federal 13,516,000 8,362,000 6,470,000 State 1,558,000 2,223,000 1,344,000 Rate change - 2,275,000 - Total income taxes $26,562,000 $24,241,000 $16,029,000
A reconciliation of the income tax provisions for the three years ended September 30, 1994 with amounts calculated by applying the statutory federal income tax rate (35.0% in 1994, 34.75% in 1993 and 34.0% in 1992) to earnings before income taxes for those years is as follows: Year Ended September 30, 1994 1993 1992 Federal tax at statutory rate $23,236,000 $18,993,000 $13,827,000 State income taxes 2,830,000 2,939,000 1,908,000 Rate change - 2,275,000 - Other 496,000 34,000 294,000 Total income taxes $26,562,000 $24,241,000 $16,029,000
The tax effect of temporary differences and the tax credit carryforwards which comprise the current and non-current deferred income tax amounts shown on the balance sheet are as follows:
September 30 1994 1993 Depreciation $111,833,000 $101,297,000 Expenses deductible when paid (8,214,000) (7,196,000) Investment tax credit carryforward - (4,902,000) Alternative minimum tax credit carryforward (12,861,000) (12,899,000) Other 780,000 (279,000) Deferred income taxes, net $ 91,538,000 $ 76,021,000
At September 30, 1994, the Company had alternative minimum tax credit carryforwards of $12,861,000 which have no expiration date. The Company has no tax credit carryforwards for financial reporting purposes since all such credits have been considered in the determination of deferred income tax amounts.
Shareholders' Equity
Changes in the components of shareholders' equity are as follows:
Capital in Stated $1 Par Excess of Value of Value Par of Preferred Common Stated Retained Stock Stock Values Earnings Balance at 9/30/91 $ 51,000 $19,940,000 $43,778,000 $105,624,000 Net earnings 24,639,000 Dividends on preferred stock $1.00 per share (24,000) Dividends on common stock $.16 per share (4,807,000) 3-for-2 common stock split 10,050,000 (10,109,000) Investment valuation allowance 975,000 Conversion of preferred stock (45,000) 53,000 (8,000) Preferred stock retired (6,000) (89,000) Exercise of stock options 109,000 528,000 Other 32,000 336,000 Balance at 9/30/92 - 30,184,000 34,436,000 126,407,000 Net earnings 30,416,000 Dividends on common stock $.18 per share (5,452,000) Exercise of stock options 179,000 580,000 Balance at 9/30/93 - 30,363,000 35,016,000 151,371,000 Net earnings 39,828,000 Dividends on common stock $.20 per share (6,092,000) 3-for-2 common stock split 15,252,000 (15,321,000) Exercise of stock options 156,000 624,000 Balance at 9/30/94 $ - $45,771,000 $20,319,000 $185,107,000
The Company is authorized to issue 50,000,000 shares of its $1 Par Value Common Stock and 1,000,000 shares of Preferred Stock. The preferred shares are without par value, with terms and conditions of each issue as determined by the Board of Directors. On April 30, 1992, the Comp its then outstanding 3,172 shares of Series C Preferred Stock for $30 per share. No Preferred Stock is now outstanding.
Each share of common stock outstanding includes one common stock purchase right (a "Right") which is non-detachable and non-exercisable until certain defined events occur, including certain tender offers or the acquisition by a person or group of affiliated or associated persons of 20% of the Company's common stock. Upon the occurrence of certain defined events, the Right entitles the registered holder to purchase one share of common stock of the Company for $26.67 and may be modified to permit certain holders to purchase common stock of the Company or common stock of an acquiring company at a 50% discount. The Right expires on June 30, 1999 unless earlier redeemed by the Company as permitted under certain conditions at a price of $.0045 per Right.
Under the terms of a credit agreement, $129,202,000 of retained earnings was available for the payment of cash dividends at September 30, 1994.
Under the Company's stock option plans, options to purchase common stock of the Company may be granted to officers and key employees at not less than 100% of the fair market value at the date of grant. Option activity, adjusted for the September 15, 1994 three-for-two common stock split, is summarized as follows: Year Ended September 30, 1994 1993 1992 Number of options: Outstanding at beginning of year 1,368,005 1,388,700 1,361,349 Granted 7,515 261,900 315,900 Exercised (226,321) (268,164) (220,302) Expired or canceled (27,700) (14,431) (68,247) Outstanding at September 30 1,121,499 1,368,005 1,388,700 At September 30: Options available for grant 1,305,789 85,604 333,072 Options exercisable 470,500 409,163 416,639
Per share prices: Options granted $12.08 $11.92 $7.56 Options exercised $2.39 to $7.56 $2.39 to $7.56 $2.39 to $4.59 Options outstanding $2.39 to $12.08 $2.39 to $11.92 $2.39 to $7.56
Accrued Liabilities
Accrued liabilities are as follows: September 30, 1994 1993 Employee compensation $8,722,000 $ 7,608,000 Interest 6,052,000 5,641,000 Taxes other than income 9,349,000 9,265,000 Insurance 6,013,000 4,867,000 Unbilled services and supplies 8,024,000 8,572,000 Other 1,954,000 2,357,000 $40,114,000 $38,310,000
Indebtedness
Equipment financing obligations are as follows: September 30, 1994 1993 Revolving Credit Agreement $33,500,000 $28,000,000 Collateral Trust Debentures: Series G, 9 7/8 %, due 1995 to 1998 50,000,000 50,000,000 Series H, 10.60 %, due 1999 75,000,000 75,000,000 Series I, 10.35 %, due 2000 50,000,000 50,000,000 Series J, 8 5/8 %, due 1998 30,000,000 30,000,000 Series K, 7 3/4 %, due 1997 50,000,000 50,000,000 Series L, 7 %, due 2003 70,000,000 70,000,000 Series M, 7 %, due 2001 60,000,000 - Other equipment financing obligations, at interest rates ranging from 5.1% to 9.8%, of which $22,714,000 is due within one year; payable through 1999 79,865,000 74,307,000 $498,365,000 $427,307,000
The $100,000,000 line under the Revolving Credit Agreement is unsecured. During 1994, the quoted rates ranged from 3.4% to 6.3% and averaged 6.1% at September 30, 1994. The Collateral Trust Debentures are secured by notes from a subsidiary and Matlack, Inc., a former subsidiary. Certain other equipment financing obligations are collateralized by certain leasing equipment. At the option of the banks, the Revolving Credit Agreement and the Collateral Trust Debentures may be secured by other leasing and bulk transportation equipment. Termination of the Revolving Credit Agreement would result in repayment of outstanding loans over 60 months in equal installments; otherwise, no repayments are required except for repayments which would be required if the financing value of the equipment falls below the outstanding loan. The agreement provides for the maintenance of specified financial ratios and restricts payments to the Company by a consolidated subsidiary. Net assets of all subsidiaries not restricted under the agreement totaled $139,728,000 at September 30, 1994.
On September 21, 1994, the Company arranged for the private placement of $100,000,000 of 8.27%, Series N Collateral Trust Debentures due March 15, 2002. Closing will occur on March 15, 1995.
Based on published bid prices, at September 30, 1994, the estimated fair value of the Company's Collateral Trust Debentures was $386,019,000 compared to the recorded book amount of $385,000,000. The fair value of the remaining $113,365,000 of equipment indebtedness approximates its recorded amount.
Long-term debt consists of real estate and other obligations payable in installments over various periods to 2001, at interest rates ranging from 6.4% to 7.0%. Land and buildings with a carrying value of $1,585,000 is pledged as collateral.
The aggregate amounts of maturities and sinking fund requirements for all indebtedness over the next five years are as follows: 1995-$30,360,000; 1996-$26,618,000; 1997-$73,556,000; 1998-$38,350,000 and 1999-$109,143,000.
Commitments and Contingent Liabilities
There are various claims and legal actions pending against the Company. In the opinion of management, based on the advice of counsel, the outcome of such litigation will not have a material adverse effect upon the Company's financial position or results of operations.
Pension Plan
The Company maintains a noncontributory pension plan for full-time employees not covered by pension plans under collective bargaining agreements. Pension costs are funded in accordance with the provisions of the Internal Revenue Code. The Company also maintains a nonqualified, noncontributory defined benefit pension plan for certain employees to restore pension benefits reduced by federal income tax regulations. The cost associated with the plan is determined using the same actuarial methods and assumptions as those used for the Company's qualified pension plan.
The components of net periodic pension cost are as follows:
Year Ended September 30, 1994 1993 1992 Service cost $2,283,000 $1,798,000 $1,548,000 Interest cost 2,152,000 1,846,000 1,658,000 Return on plan assets (947,000) (4,336,000) (2,558,000) Net amortization and deferral (1,580,000) 2,271,000 706,000 Net periodic pension cost $1,908,000 $1,579,000 $1,354,000
The following table sets forth the funded status and the amount recognized in the Company's balance sheet for the plans:
September 30, 1994 1993 Actuarial present value of accumulated benefit obligation: Vested $24,708,000 $22,010,000 Non-vested 1,227,000 1,102,000 $25,935,000 $23,112,000
Projected benefit obligation $31,190,000 $26,989,000 Plan assets at market value 27,481,000 25,976,000 Projected benefit obligation in excess of plan assets 3,709,000 1,013,000 Unrecognized gain 1,289,000 2,383,000 Unrecognized prior service costs (998,000) 157,000 Unrecognized overfunding at adoption 421,000 492,000 Accrued pension liability $ 4,421,000 $ 4,045,000
At September 30, 1994, the assets of the pension plans were invested 73% in equity securities, 24% in fixed income securities and the balance in other interest bearing accounts.
The discount rate was 8.0% for 1994 and 1993 and 8.5% for 1992. The rate of assumed compensation increase was 5.0% for all three years. The expected long-term rate of return on assets was 9.5% for 1994 and 1993 and 10.0% for 1992.
The Company expensed payments to multi-employer pension plans required by collective bargaining agreements of $172,000 in 1994, $265,000 in 1993 and $293,000 in 1992. The actuarial present value of accumulated plan benefits and net assets available for benefits to employees under these plans are not available.
Transactions with Related Parties
Certain directors and officers of the Company are also directors and officers of Rollins Environmental Services, Inc. and Matlack Systems, Inc.
The Company sold materials (principally vehicle fuel) and services (including data processing services) and rented transportation equipment and office space to Rollins Environmental Services, Inc. The aggregate charges for these materials and services, which have been included in revenues or offset against operating expense, as appropriate, in the Consolidated Statement of Earnings, were $6,551,000 in 1994, $7,359,000 in 1993 and $6,579,000 in 1992.
The Company provided administrative services and rented office space to Matlack, Inc. for aggregate charges of $2,949,000 in 1994, $3,077,000 in 1993 and $3,403,000 in 1992, which have been included in revenues or offset against operating expense, as appropriate, in the Consolidated Statement of Earnings. Interest charges to Matlack, Inc., which have been offset against interest expense, were $593,000 in 1994, $1,023,000 in 1993 and $1,500,000 in 1992.
An officer of the Company is the trustee of an employee benefits trust which provides certain insurance and health care benefits to employees of the Company. Contributions to the trust, which were charged to operating or selling and administrative expense, as appropriate, were $8,166,000 in 1994, $7,068,000 in 1993 and $7,085,000 in 1992.
In the opinion of management of the Company, the foregoing transactions were effected at rates which approximate those which the Company would have realized or incurred had such transactions been effected with independent third parties.
Quarterly Results (Unaudited) December March June September 1994 31 31 30 30 Revenues $107,444,000 $107,111,000 $115,823,000 $120,525,000 Gross profit $ 34,202,000 $ 33,409,000 $ 38,053,000 $ 40,035,000 Earnings before income taxes $ 16,196,000 $ 13,811,000 $ 17,504,000 $ 18,879,000 Net earnings $ 9,474,000 $ 8,155,000 $ 10,450,000 $ 11,749,000 Earnings per share(1) $ .21 $.17 $ .23 $ .25
Revenues $100,095,000 $ 97,042,000 $104,589,000 $107,052,000 Gross profit $ 30,439,000 $ 28,758,000 $ 33,845,000 $ 36,483,000 Earnings before income taxes $ 12,497,000 $ 10,823,000 $ 14,762,000 $ 16,575,000 Net earnings $ 7,498,000 $ 6,494,000 $ 8,857,000 $ 7,567,000 Earnings per share(1) $ .16 $ .14 $ .19 $ .17
(1) Adjusted for the three-for-two common stock split distributed on September 15, 1994.
SCHEDULE III - Condensed Financial Information
ROLLINS TRUCK LEASING CORP. BALANCE SHEET ($000 Omitted)
Assets September 30, 1994 1993 Current Assets (excluding notes receivable from subsidiaries) Cash $ 699 $ 413 Accounts receivable 80 91 Accounts receivable from subsidiaries* 14 31 Other current assets 63 67 856 602 Notes receivable - Matlack, Inc. (including $900 due within one year) 6,000 6,000 Notes receivable from subsidiary* 379,000 319,000 Investments in subsidiaries, at equity* 234,263 196,368 Advances to subsidiaries* 18,430 20,680 Property and equipment, at cost, net of accumulated depreciation 921 894 Other assets 173 365 $639,643 $543,909 Liabilities and Shareholders' Equity
Current Liabilities Accounts payable to subsidiaries* $ 37 $ 11 Accounts payable to others 164 120 Accrued liabilities 571 632 Income taxes payable 769 417 1,541 1,180 Collateral Trust Debentures 9 7/8% Series G, due 1995 to 1998 50,000 50,000 10.60% Series H, due 1999 75,000 75,000 10.35% Series I, due 2000 50,000 50,000 8 5/8% Series J, due 1998 30,000 30,000 7 3.4% Series K, due 1997 50,000 50,000 7 % Series L, due 2003 70,000 70,000 7 % Series M, due 2001 60,000 -
Other liabilities 1,531 528 Deferred federal income taxes 374 451 Commitments and contingent liabilities - see notes to the financial statements
Shareholders' equity Common shares $1 Par Value, 50,000,000 shares authorized; issued and outstanding: 1994: 45,770,678; 1993: 45,544,355 45,771 30,363 Capital in excess of par or stated values 20,319 35,016 Retained earnings 185,107 151,371 251,197 216,750 $639,643 $543,909
* Eliminated in consolidation.
SCHEDULE III - Condensed Financial Information (continued)
ROLLINS TRUCK LEASING CORP. STATEMENT OF EARNINGS ($000 Omitted)
Year Ended September 30, 1994 1993 1992
Revenues: Dividends from subsidiaries $ 1,800 $ 4,800 $ 4,800 Other income 4,502 171 470 6,302 4,971 5,270
Expenses: Administrative 3,498 3,686 3,223 Depreciation and amortization, net of gain (loss) on disposals 124 211 225 3,622 3,897 3,448
Earnings before income taxes 2,680 1,074 1,822
Income taxes (benefit) 825 (1,460) (1,625)
Net earnings of Rollins Truck Leasing Corp. 1,855 2,534 3,447
Equity in undistributed net earnings of subsidiaries 37,973 27,882 21,192
Net earnings $39,828 $30,416 $24,639
SCHEDULE III - Condensed Financial Information (continued)
ROLLINS TRUCK LEASING CORP. STATEMENT OF CASH FLOWS ($000 Omitted)
Year Ended September 30, 1994 1993 1992
Cash flows from operating activities: Earnings prior to equity in subsidiaries' undistributed earnings $ 1,855 $ 2,534 $ 3,447
Reconciliation of earnings to net cash flows from operating activities: Depreciation and amortization 193 216 231 Current and deferred income taxes 275 (176) (408) Net decrease (increase) in accounts receivable 28 74 (41) Net increase (decrease) in accounts payable and accrued liabilities 9 (230) 253 Other (241) 87 97 Net cash flows from operating activities 2,119 2,505 3,579
Cash flows from investing activities: Purchase of equipment (152) (108) (54) Proceeds from sale of equipment - 5 10 Net cash flows used in investing activities (152) (103) (44)
Cash flows from financing activities: Proceeds of equipment financing 60,000 70,000 80,000 Advances to subsidiaries (56,300) (68,072) (81,600) Repayment of notes by subsidiary - 39,500 41,650 Repayment of notes by Matlack, Inc. - 7,750 2,250 Repayment of equipment financing - (47,250) (42,500) Payment of dividends (6,092) (5,452) (4,831) Proceeds of stock options exercised 780 759 637 Preferred stock acquired and retired - - (95) Other (69) - (59) Net cash flows used in financing activities (1,681) (2,765) (4,548)
Net increase (decrease) in cash 286 (363) (1,013)
Cash beginning of period 413 776 1,789
Cash end of period $ 699 $ 413 $ 776
Supplemental information:
Interest paid, net $ - $ - $ - Income taxes paid $10,660 $ 9,572 $ 6,236
SCHEDULE III - Condensed Financial (continued)
ROLLINS TRUCK LEASING CORP. Notes to Financial Statements
Accounting Policies
The accounting policies of the Registrant and its subsidiaries are set forth on page 14 of this 1994 Annual Report on Form 10-K.
The Company's principal sources of earnings are dividends and management fees paid by its subsidiaries. Certain loan agreements restrict payments to the Company by its subsidiaries. Net assets of subsidiaries not restricted under such loan agreements totaled $139,728,000 at September 30, 1994. The Company also realizes cash receipts by assessing subsidiaries for federal taxes on income and expends cash in payment of such taxes on a consolidated basis. Tax assessments are based on the amount of federal income taxes which would be payable (recoverable) by each subsidiary company based on its current year's earnings (loss) reduced by that subsidiary's applicable portion of any consolidated carryforward or carryback of net operating losses, investment tax credits, alternative minimum tax credits or similar items utilized currently in the consolidated federal income tax return.
Interest income on notes receivable from a subsidiary and from Matlack, Inc. which are pledged to secure the Collateral Trust Debentures (described on page 19 of this 1994 Annual Report on Form 10-K) has been offset against interest expense of $31,700,000, $29,451,000 and $29,298,000 in 1994, 1993 and 1992, respectively.
Commitments and Contingencies
The Company is obligated to an affiliated company for $398,000 annually ($2,886,000 in the aggregate) of future rentals under a lease to 2001. Rent expense was $391,000 in 1994 and 1993 and $353,000 in 1992.
Commitments of the Company have been collateralized by bank letters of credit issued on behalf of the Company in the amount of $4,950,000.
The aggregate amounts of maturities and sinking fund requirements for the Collateral Trust Debentures during the next five years are $7,500,000 in 1995, $7,500,000 in 1996, $57,500,000 in 1997, $27,500,000 in 1998 and $105,000,000 in 1999.
ROLLINS TRUCK LEASING CORP. AND SUBSIDIARIES SCHEDULE X - SUPPLEMENTARY INCOME STATEMENT INFORMATION FOR THE YEARS ENDED SEPTEMBER 30, 1994, 1993 and 1992 ($000 OMITTED)
COLUMN A COLUMN B Item Charged to Costs and Expenses 1994 1993 1992
Maintenance and Repairs $ 83,039 $ 84,828 $ 82,113
Depreciation and Amortization $130,741 $118,366 $109,828
Taxes Other Than Payroll and Income Taxes
Licenses and Titles $ 14,768 $ 13,062 $ 11,583 Federal Highway Use Tax $ 4,549 $ 4,920 $ 4,489 Other $ 5,121 $ 4,063 $ 3,844
ROLLINS TRUCK LEASING CORP.
Exhibits to Form 10-K
For Fiscal Year Ended September 30, 1994
Index to Exhibits Page Nos.
Exhibit 21 Rollins Truck Leasing Corp. Subsidiaries at September 30, 1994
Exhibit 23 Consent of Independent Auditors
Exhibit 21
ROLLINS TRUCK LEASING CORP. Subsidiaries of Registrant at September 30, 1994
JURISDICTION OF NAME INCORPORATION
Rollins Dedicated Carriage Services, Inc. Delaware
Rollins Leasing Corp. Delaware
Rollins Properties, Inc. Delaware
Transrisk, Limited Bermuda
Exhibit 23
The Board of Directors Rollins Truck Leasing Corp.:
We consent to incorporation by reference in Registration Statement No. 33-67682 filed on Form S-3 by Rollins Truck Leasing Corp. of our report dated October 25, 1994, relating to the consolidated balance sheets of Rollins Truck Leasing Corp. and subsidiaries as of September 30, 1994 and 1993 and the related consolidated statements of earnings and cash flows and related schedules for each of the years in the three-year period ended September 30, 1994, which report appears on page 10 of this 1994 Annual Report on Form 10-K of Rollins Truck Leasing Corp.
KPMG Peat Marwick LLP
Wilmington, Delaware November 22, 1994