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					FLIR Systems, Inc.
   Sharik Chowdury, Abhiram Kumar, and Justin Silver
                      25-Mar-11
, Inc.
n Silver
ROLLINS, INC. (NYSE: ROL)                                                                                                                                                                                               Industry: PEST CONTROL
                                           Analysts: Joshua Greenspan, Alan Jiang, Nona Makaveeva                                                                                                                                          Date: Nov. 24, 2011


                                                 BUSINESS DESCRIPTION                                                                                                                 STOCK PRICE & VOLUME PERFORMANCE
Rollins, Inc., through its subsidiaries, provides pest and termite control services in North America. It offers pest control services,               $25.00
and protection against termite damage, rodents, and insects to homes and businesses, including hotels, food service                                                                                                                                 2,000,000
establishments, food manufacturers, retailers, and transportation companies. The company also provides pest management and
sanitation services and products to the food and commodity industries. It operates under the Orkin and PCO Services, Inc.                            $20.00
trademarks, and the Acurid service mark. The company also offers its services in Mexico, Central America, the Caribbean, the
Middle East, Asia, the Mediterranean, and Europe. As of December 31, 2009, it had 52 franchises in the United States and 13                                                                                                                         1,500,000
franchises internationally. Rollins, Inc. was formerly known as Rollins Broadcasting, Inc. The company was founded in 1948 and is
                                                                                                                                                     $15.00
headquartered in Atlanta, Georgia.

                                                                                                                                                                                                                                                    1,000,000
                                                                                                                                                     $10.00
                                                   INVESTMENT THESIS
With a consistent increase in annual revenue over the past decade and a powerful current market position, Rollins Inc. is posed
for solid growth in the long and short terms. Rollins, sporting a steadfast revenue model, was able to maintain consistent growth                                                                                                                   500,000
                                                                                                                                                      $5.00
during the global recession. We believe market demand for the services of Rollins inc. will burgeon as the world economy
recovers, pests evolve, and global warming quickens pest's population growth.

                                                                                                                                                      $0.00                                                                                         0
                                                                                                                                                              Date        7/17/2009       12/8/2009          5/4/2010        9/24/2010       2/16/2011




                                                                                                                            FINANCIAL SUMMARY
( in millions, except per share data)
Result of Operations
                                                               FY Ending Dec. 30
                                                 2007               2008                  2009                2010                       Balance Sheet Data                                Public Market Overview
Revenue                                      $     1,077.00      $     1,147.10      $     1,385.30       $     1,385.30                 Total Debt                  $        -            Share Price as of Nov. 24 2011                                $         19.08
     Growth                                                                6.5%               20.8%                 0.0%                 Cash & Equivalents          $     193.1                 52-Week High                                            $         20.19
EBITDA                                       $       374.40      $       438.60      $       476.90       $     1,099.60                 Net Debt                    $    (193.1)                52-Week Low                                             $         13.36
  Margin (%)                                          34.8%               38.2%               34.4%                79.4%                                                                   Diluted Shares Outstanding (MM)                                      147.150
Net Income                                  $         64.70     $         68.90      $        84.00      $         90.00                 Credit Statistics                                 Market Value of Equity (MM)                                   $      2,807.62
  Margin (%)                                           6.0%                6.0%                6.1%                 6.5%                 Total Debt/EBITDA                 0.00x           Plus: Net Debt                                                $          5.10
                                                                                                                                         EBITDA/Interest                 458.17x           Enterprise Value (MM)                                         $      2,812.72
CFO                                         $         88.80     $         90.70      $       110.90      $        111.10
Cap Ex                                      $        (27.60)    $       (115.50)     $      (468.70)     $       (468.70)                Valuation Multiples                                                                 Rollins        Ecolab           Rentokil
D&A                                         $           -       $           -        $          -        $        622.70                 P/E                                                                                      31.46x        21.30x           -64.80x
                                                                                                                                         EV/EBITDA                                                                                15.60x        10.12x          130.15x
Diluted EPS excl. X/O items                 $           0.43     $         0.46      $           0.56    $           0.61                Market Cap                                                                               2,810         1,102             2,580
                                                                                                                                         Share Price                                                                            $ 19.08       $ 47.49             $ 7.13



Source: Company Annual Report, Bloomberg
(Figures in Millions)
FLIR Systems Inc. - USD - S. Chowdury, A. Kumar, J. Silver
Assumptions
Company Name:                                            FLIR Systems Inc.
Ticker:                                                               FLIR
Share Price (as of 03/25/11)                                       $34.07
Shares Outstanding                                                 159.51
Total Preferred                                                      0.00
Cost of Preferred                                                   0.00%
Tax Rate                                                            37.5%
Beta                                                                 0.83
Risk-Free Rate of Return                                            3.41%
Market Risk Premium                                                  5.1%
Debt Risk Premium                                                    0.5%
Currency                                                              USD
Units                                                                 $mm
Last Fiscal Year End                                              12/31/10


Discount Factor:                                                    1
1 - Mid-Period Convention
2 - End-of-Period Convention

Growth Scenario:                                                    1
Year                           2011E        2012E       2013E      2014E     2015E   Terminal
1. Base                         6.0%         5.5%        5.0%       4.5%      3.5%      3.0%
2. Upside                       7.0%         6.5%        6.0%       5.5%      4.5%      3.5%
3. Downside                     4.0%         3.5%        3.0%       2.5%      2.0%      2.5%

Today's Date:                                                    03/25/11
Days Remaining in Current FY                                          281
FLIR Systems Inc. - USD - S. Chowdury, A. Kumar, J. Silver
WACC - in $mm except for shares
Share Price                                                   $34.07
Shares Outstanding                                             159.5
Market Cap                                                   5,434.5
Total Preferreds                                                  0.0
Total Debt                                                        0.0
Current Debt to Equity                                         0.00%

Equity
Risk Free Rate                                                 3.41%
Beta                                                             0.83
Equity Risk Premium                                            5.07%
Weight of Equity                                              100.0%
Cost of Equity                                                 7.62%

Debt
Risk Free Rate                                                 3.41%
Interest Coverage                                            150.25x
Debt Premium Spread                                            0.50%
Tax Rate                                                       37.5%
Weight of Debt                                                 0.00%
Cost of Debt                                                   2.44%

Preferred Shares
Weight of Preferreds                                           0.00%
Cost of Preferreds                                             0.00%


WACC                                                         7.62%
 FLIR Systems Inc. - USD - S. Chowdury, A. Kumar, J. Silver
 DCF Analysis - in $mm except for shares
                                              2006              2007       2008            2009          2010 ||     2011E      2012E      2013E      2014E      2015E
Revenue                                      779.4            1,077.0    1,147.1        1,385.3       1,385.3  |   1,468.4     1,549.2    1,626.6    1,699.8    1,759.3
 % Growth                                                      38.2%        6.5%         20.8%           0.0%  |      6.0%        5.5%       5.0%       4.5%       3.5%
COGS                                         346.2              470.8      488.6          622.7            0.0 |     763.6       805.6      845.9      883.9      914.9
 % of Sales                                  44.4%             43.7%      42.6%          45.0%           0.0%  |    52.0%       52.0%      52.0%      52.0%      52.0%
Gross Profit                                 433.2              606.1      658.5          762.6       1,385.3  |     704.8       743.6      780.8      815.9      844.5
 % Gross Margin                              55.6%             56.3%      57.4%          55.0%        100.0%   |    48.0%       48.0%      48.0%      48.0%      48.0%
                                                                                                               |
SG&A                                         168.9             231.7      219.9           285.7         285.7 |      469.9      495.7      520.5      543.9      563.0
 % of Sales                                  21.7%             21.5%      19.2%           20.6%        20.6% |       32.0%      32.0%      32.0%      32.0%      32.0%
D&A                                             0.0               0.0        0.0             0.0        622.7 |       47.0       49.6       52.1       54.4       56.3
 % of Sales                                   0.0%              0.0%       0.0%            0.0%        45.0% |       3.20%      3.20%      3.20%      3.20%      3.20%
Operating Income (EBIT)                      264.3             374.4      438.6           476.9         476.9 |      188.0      198.3      208.2      217.6      225.2
 % Margin                                    33.9%             34.8%      38.2%           34.4%        34.4% |       12.8%      12.8%      12.8%      12.8%      12.8%
                                                                                                               |
EBITDA                                       264.3             374.4      438.6           476.9       1,099.6 |      234.9       247.9     260.3      272.0      281.5
 % Growth                                                      41.7%      17.1%            8.7%       130.6% |      -78.6%        5.5%      5.0%       4.5%       3.5%
                                                                                                               |
Capex/Acquisitions                           (44.1)             (27.6)   (115.5)         (468.7)       (468.7) |     (77.8)      (82.1)     (86.2)     (90.1)     (93.2)
 % of Revenue                                5.7%               2.6%     10.1%           33.8%         33.8% |       5.3%        5.3%       5.3%       5.3%       5.3%
                                                                                                               |
Taxes                                         54.4              91.2      110.2           114.3         114.3 |       70.5       74.4       78.1       81.6       84.4
 % Effective Rate                            20.6%             24.4%      25.1%           24.0%        24.0% |       37.5%      37.5%      37.5%      37.5%      37.5%
                                                                                                               |
Changes in NWC                                                  65.2       20.3           168.5           0.0 |     (701.4)       (8.9)      (8.5)      (8.1)      (6.6)
                                                                                                               |
Unlevered Free Cash Flow                                       320.8      233.2            62.4         516.6 |      (614.8)      82.5      87.4       92.2       97.2
 Growth Rate                                                                                                   |   -219.0%     -113.4%      6.0%       5.5%       5.4%
                                                                                                               |
Remaining Date (Fiscal Year) Factor                                                                            |     0.270       1.270     2.270      3.270      4.270
                                                                                                               |
PV Factor                                                                                                      |     0.755       0.911     0.846      0.787      0.731
                                                                                                               |
PV of Cash Flows                                                                                               |    (464.0)       75.2      74.0       72.5       71.1

Enterprise Value Analysis                                                          % of Total Value
PV of 5 Yr. Cash Flows                                        (171.2)                   -8.4%
Terminal CF Growth Rate                                        3.00%
Terminal Value                                                 2,220                   108.4%
Total Enterprise Value                                         2,049                   100.0%
 Less:
Total Debt                                                        0.0
Preferred Stock                                                   0.0
 Plus:
Cash and Equivalent                                            193.1
Total Equity Value                                             2,242
Shares outstanding                                             159.5
Implied Share Price                                           $14.06
Upside (Downside) Potential                             -58.74%
 FLIR Systems Inc. - USD - S. Chowdury, A. Kumar, J. Silver
 Working Capital Analysis - in $mm except for shares
                                          2007          2008      2009      2010       2011 |         2012       2013       2014       2015       2016
Revenue                                  779.4       1,077.0   1,147.1   1,385.3    1,385.3 |      1,468.4    1,549.2    1,626.6    1,699.8    1,759.3
COGS                                     346.2         470.8     488.6     622.7         0.0 |       763.6      805.6      845.9      883.9      914.9
                                                                                             |
Current Assets                                                                               |
Accounts Receivable                     203.4         239.2     235.0     339.7       339.7 |        88.1       93.0       97.6      102.0      105.6
 % of Revenue                           26.1%         22.2%     20.5%     24.5%      24.5% |         6.0%       6.0%       6.0%       6.0%       6.0%
Inventory                               179.4         207.5     216.5     303.2       303.2 |        14.5       15.3       16.1       16.8       17.4
 % of COGS                              51.8%         44.1%     44.3%     48.7%    #DIV/0! |         1.9%       1.9%       1.9%       1.9%       1.9%
Other Current Assets                     69.1          76.4      97.2     118.8       118.8 |        58.7       62.0       65.1       68.0       70.4
                                         8.9%          7.1%      8.5%      8.6%        8.6% |       4.00%      4.00%      4.00%      4.00%      4.00%
Total Current Assets                    451.9         523.1     548.7     761.7       761.7 |       161.3      170.2      178.7      186.8      193.3

Current Liabilities                      2007          2008      2009      2010        2011    |     2012       2013       2014       2015       2016
Accounts Payable                         54.0          47.8      53.3      85.9        85.9    |     29.4       31.0       32.5       34.0       35.2
 % of Revenue                            6.9%          4.4%      4.6%      6.2%        6.2%    |    2.00%      2.00%      2.00%      2.00%      2.00%
Short-Term Debt                          19.0            0.0       0.0       0.0         0.0   |         --         --         --         --         -
Accrued Liabilities                      49.8          92.3      98.5     129.8       129.8    |         --         --         --         --         -
Other Short-Term Liabilities             43.4          32.1      25.7        6.3         6.3   |         --         --         --         --         -
 Total ST Debt + Liabilities            112.2         124.4     124.2     136.1       136.1    |    293.7      309.8      325.3      340.0      351.9
 % of Revenue                           14.4%         11.6%     10.8%      9.8%        9.8%    |      20%        20%        20%        20%        20%
Total Current Liabilities               166.2         172.2     177.5     222.0       222.0    |    323.1      340.8      357.9      374.0      387.1
Working Capital                         285.7         350.9     371.2     539.7      539.7 |       (161.7)    (170.6)    (179.1)    (187.2)    (193.7)
 % of Total Revenue                     36.7%         32.6%     32.4%     39.0%      39.0% |       11.0%      11.0%      11.0%      11.0%      11.0%
Change in NWC                                           65.2     20.3     168.5         0.0 |      (701.4)       (8.9)      (8.5)      (8.1)      (6.6)
FLIR Systems, Inc.(FLIR)
10-Yr Income Statement

Revenue (from 2001 to 2010) $Mil
                                    2001    2002     2003    2004     2005     2006
Revenue                            214.4   261.1      312   482.7    508.6      575
COGS                                97.5   124.1    146.5   233.5    231.9    260.1
Gross Profit                       116.8     137    165.5   249.2    276.7    314.9

Operating Expenses $Mil
                                   2001    2002     2003     2004    2005      2006
SG&A                               52.3       60       65     94.2   99.2     117.4
R&D                                27.2     26.9     30.7     45.8   51.5       60.6
D&A                                   0        0        0        0      0        -41
Operating Income                   37.3     50.2     69.8   109.1     126        178

Other Income and Expense $Mil
                                   2001    2002     2003    2004      2005     2006
Net Int Inc & Other                 -8.6    -1.3       -6    -9.2      -3.7     -4.3
Earnings Before Taxes              28.7     48.9     63.9    99.9    122.2    132.6
Income Taxes                         2.8      7.3    19.2    28.4     31.5      31.7
Earnings After Taxes               25.9     41.6     44.7    71.5     90.8    100.9
Acctg Changes                          0        0       0       0         0        0
Disc Operations                        0        0       0       0         0        0
Ext Items                              0        0       0       0         0        0
Net Income                         25.9     41.6     44.7    71.5     90.8    100.9
Diluted EPS, Cont Ops$               0.2    0.29     0.32    0.47     0.58      0.66
Diluted EPS$                         0.2    0.29     0.32    0.47     0.58      0.66
Shares                              128      143      141     152      156       153
                                        Source:
                                    Morning Star


 2007     2008        2009       2010       2011
779.4     1077    1,147.10   1,385.30   1,385.30
346.2    470.8       488.6      622.7          0
433.2    606.1       658.5      762.6   1,385.30


 2007     2008       2009       2010       2011
168.9    231.7      219.9      285.7      285.7
 72.5       90        91.3     116.4      116.4
    0        0           0         0      622.7
191.8    284.5      347.3      360.6      360.6


 2007     2008       2009       2010       2011
  -0.7     10.4       -6.9        2.4        2.4
191.2    294.9      340.4      362.9      362.9
 54.4      91.2     110.2      114.3      114.3
136.7    203.7      230.2      248.6      248.6
     0        0          0          0          0
     0        0          0       -0.5       -0.5
     0        0          0          0          0
136.7    203.7      230.2      248.1      248.1
 0.89      1.28       1.45      1.54         1.5
 0.89      1.28       1.45      1.54         1.5
  154       163        162       162        162
FLIR Systems, Inc.(FLIR)
10-Yr Cash Flows

Cash Flows From Operating Activities $Mil
                                            2001    2002    2003      2004    2005
Net Income                                   25.9    41.6    44.7      71.5    90.8
Depr & Amort                                  7.5     6.2     6.3      14.8    15.6
Deferred Taxes                               -0.2   -10.9     4.9      -5.9       6
Other                                        -5.5    18.2   -28.6      -5.3   -39.2
Cash from Operations                         27.7      55    27.2      75.1    73.1

Cash Flows From Investing Activities $Mil
                                            2001    2002    2003       2004   2005
Cap Ex                                       -4.2    -6.6   -14.6     -13.9     -34
Purchase of Business                            0       0       0         0       0
Other                                         0.3    -0.5    -3.7    -161.3   -18.9
Cash from Investing                            -4    -7.1   -18.3    -175.2   -52.9

Cash Flows From Financing Activities $Mil
                                            2001    2002     2003     2004    2005
Net Issuance of Stock                        50.1     8.8     -67      15.1   -21.2
Net Issuance of Debt                            0       0        0        0       0
Dividends                                       0       0        0        0       0
Other                                       -70.4   -26.8   203.9      -3.8    -0.1
Cash from Financing                         -20.3     -18   136.8      11.4   -21.3
Currency Adj                                  0.2     1.2      5.6     11.4   -12.6
Change in Cash                                3.7    31.1   151.4     -77.3   -13.6

Free Cash Flow $Mil
                                            2001    2002    2003      2004    2005
Cash from Operations                         27.7      55    27.2      75.1    73.1
Cap Ex                                       -4.2    -6.6   -14.6     -13.9     -34
Free Cash Flow                               23.5    48.4    12.6      61.2    39.1
 2006     2007     2008     2009      2010      2011
100.9    136.7    203.7    230.2     248.1     248.1
 20.6      25.9       40    42.4      61.3       61.3
  -5.6      1.7     -6.7     -0.6    -14.1     -14.1
  -0.7   -48.3    -18.7      -0.3    -40.1     -68.3
115.2    116.1    218.3    271.8     255.3     255.3


 2006    2007     2008       2009      2010      2011
   -43   -44.1    -27.6     -41.9       -66       -66
     0       0        0     -73.6    -402.7    -402.7
  -0.4   -43.4    -86.3        7.7       3.3    128.6
 -43.4   -87.5     -114    -107.7    -465.4    -465.4


  2006   2007     2008      2009       2010      2011
-102.4    39.1      1.3    -50.8      -14.2     -14.2
     0       0        0        -2          0         0
     0       0        0         0          0         0
  47.4   -11.9      1.3       9.3        7.7      -7.7
 -55.1    27.2      2.6    -43.5        -6.5      -6.5
  14.9     9.3    -21.2     12.1      -12.3     -12.3
  31.6    65.1     85.8    132.6     -228.9    -228.9


 2006     2007     2008     2009      2010      2011
115.2    116.1    218.3    271.8     255.3     255.3
  -43    -44.1    -27.6    -41.9       -66       -66
 72.1      72.1   190.7    229.9     189.3     189.3
FLIR Systems, Inc.(FLIR)
10-Yr Balance Sheet

Assets $Mil
                                             2001     2002     2003     2004     2005      2006
Cash and Equiv                                15.5    46.6       198   120.7    107.1     138.6
Short-Term Investments                           0       0         0        0        0         0
Accts Rec                                       58    55.8      79.3   116.3    142.8     167.5
Inventory                                     47.6    50.1        76     98.3   103.8     135.9
Other Current Assets                          19.3    21.6      28.8     31.5     51.9      44.4
Total Current Assets                        140.4    174.1    382.1    366.8    405.5     486.5
Net PP&E                                      10.8    12.7      22.8     34.8     59.5      92.2
Intangibles                                   16.8    16.7      16.5   196.7       205    200.7
Other Long-Term Assets                          17    30.4        29     21.3     24.4      18.8
Total Assets                                   185   233.8    450.4    619.5    694.4     798.2

Liabilities and Stockholders' Equity $Mil
                                             2001     2002     2003     2004     2005      2006
Accts Payable                                 18.4    16.5      26.4     32.3     34.5      40.6
Short-Term Debt                                 24        0        0      0.1       0.1     45.5
Taxes Payable                                    0        0        0        0         0        0
Accrued Liabilities                           23.3    22.5        19     33.5     28.6      48.3
Other Short-Term Liabilities                   5.3    13.7      24.9     22.8     26.9      35.9
Total Current Liabilities                       71    52.6      70.3     88.7     90.1    170.4
Long-Term Debt                                   0        0   204.4    205.3    206.2        207
Other Long-Term Liabilities                    9.2      8.9     10.9     12.3     29.2        22
Total Liabilities                             80.2    61.5    285.6    306.3    325.4     399.4
Total Equity                                104.9    172.3    164.8    313.2       369    398.8
Total Liabilities & Equity                     185   233.8    450.4    619.4    694.4     798.2
                                       Source:
                                   Morning Star


  2007     2008      2009      2010 latest Qtr
 203.7    289.4     422.1     193.1        193.1
     0         0         0        0            0
 203.4    239.2        235    339.7        339.7
 179.4    207.5     216.5     303.2        303.2
  69.1      76.4      97.2    118.8        118.8
 655.5    812.5     970.7     954.8        954.8
 120.9    122.3     139.1     189.1        189.1
 229.1    281.9     321.5     659.4        659.4
  18.9      27.3      53.9       54           54
1024.3   1243.9    1485.3    1857.4      1857.4


  2007     2008      2009      2010 latest Qtr
    54      47.8      53.3     85.9         85.9
    19         0         0         0            0
     0         0         0        28           28
  49.8      92.3      98.5    129.8        129.8
  43.4      32.1      25.7       6.3          6.3
 166.1    172.3     177.6       250          250
 207.9    190.3         58         0            0
    27      41.3      45.9     84.9         84.9
   401    403.9     281.5     334.8        334.8
 623.3    840.1    1203.8    1522.6      1522.6
1024.3   1243.9    1485.3    1857.4      1857.4

				
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