.

Rollins, Inc. Reports Fourth Quarter And Full Year 2016 Record Financial Results

January 25, 2017

Rollins, Inc. Reports Fourth Quarter And Full Year 2016 Record Financial ResultsCompany posts 43rd consecutive quarter of improved revenues and earnings-- Revenue increased 6.4% for the quarter and 5.9% for full year-- Net income up 19.7% for the quarter and 10.0% for the full year-- Earnings per diluted share rose 13.3% for the quarter to $0.17 from $0.15, and up 10.0% to $0.77 from $0.70 for the full year

ATLANTA, Jan. 25, 2017 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier global consumer and commercial services company, reported strong unaudited financial results for its fourth quarter and year ended December 31, 2016.

The Company recorded fourth quarter revenues of $385.6 million, an increase of 6.4% over the prior year's fourth quarter revenue of $362.5 million.  Rollins' net income increased 19.7% to $38.0 million or $0.17 per diluted share for the fourth quarter ended December 31, 2016, compared to $31.7 million or $0.15 per diluted share for the same period in 2015. 

For the full-year ended December 31, 2016, Rollins' revenues rose 5.9% to $1.573 billion compared to $1.485 billion for the prior year.  The Company's net income for the year rose 10.0% to $167.4 million, or $0.77 per diluted share, compared to net income of $152.1 million, or $0.70 per diluted share last year.

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "The positive performance we achieved in our fourth quarter and for the full year reflects the success of our 2016 initiatives.  We were especially pleased that this year we again exceeded our revenue and profit plans, and we surpassed the $1.5 billion revenue milestone.  The Fourth Quarter results represent our 43rd consecutive quarter of improved revenues and earnings."   

Mr. Rollins concluded, "We are excited about our Company's opportunities for 2017.  The Rollins culture of continuous improvement enables us to generate aggressive plans and new programs that should provide another successful year.  We are very proud of our people who made 2016 possible and who will likewise be working diligently to achieve our 2017 objectives." 

Rollins, Inc. is a premier global consumer and commercial services company. Through its wholly owned subsidiaries, Orkin LLC., HomeTeam Pest Defense, Orkin Canada, Western Pest Services, Critter Control, Inc., The Industrial Fumigant Company, Trutech LLC., Rollins Australia, Waltham Services LLC., PermaTreat, Rollins UK, and Crane Pest Control, the Company provides essential pest control services and protection against termite damage, rodents and insects to more than two million customers in the United States, Canada, Central America, South America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe, Africa, Mexico, and Australia from more than 700 locations. You can learn more about Rollins and its subsidiaries by visiting our web sites at www.orkin.com, www.pestdefense.com, www.westernpest.com, www.orkincanada.ca, www.crittercontrol.com, www.indfumco.com, www.trutechinc.com, www.allpest.com.au, www.walthamservices.com, www.permatreat.com, www.cranepestcontrol.com, www.murraypestcontrol.com.au, www.statewidepestcontrol.com.au, www.safeguardpestcontrol.co.uk, 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 statements about the Company's being excited about its opportunities for 2017; and the expectation of another successful year and the achievement of the 2017 objectives.  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, economic and competitive conditions which may adversely affect the Company's business; the degree of success of the Company's pest and termite process, 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; the Company's ability to attract and retain skilled workers, and 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, 2015.

ROL-Fin


ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At December 31, (unaudited)

2016


2015

ASSETS




Cash and cash equivalents

$               142,785


$                  134,574

Trade accounts receivables, net

88,490


79,864

Financed receivables, net

15,968


13,830

Materials and supplies

13,724


12,801

Other current assets

29,204


28,365

Total Current Assets

290,171


269,434

Equipment and property, net

133,477


121,356

Goodwill

255,665


249,939

Customer contracts and other intangible assets, net

161,776


138,931

Deferred income taxes, net

41,877


40,665

Financed receivables, long-term, net

16,748


13,636

Other assets

16,824


14,690

    Total Assets

$               916,538


$                  848,651

LIABILITIES




Accounts payable

$                  30,284


$                    24,919

Accrued insurance, current

26,201


24,874

Accrued compensation and related liabilities

75,839


73,607

Unearned revenue

99,820


96,192

Other current liabilities

44,847


33,394

Total Current Liabilities

276,991


252,986

Accrued insurance, less current portion

32,023


30,402

Accrued pension

2,880


9,735

Long-term accrued liabilities

36,099


31,499

Total Liabilities

347,993


324,622

STOCKHOLDERS' EQUITY




Common stock

217,792


218,553

Retained earnings and other equity

350,753


305,476

Total stockholders' equity

568,545


524,029

Total Liabilities and Stockholders' Equity

$               916,538


$                  848,651





 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)










Three Months Ended


Twelve Months Ended


December 31,


December 31,


2016


2015


2016


2015

REVENUES








Customer services

$  385,614


$   362,500


$ 1,573,477


$ 1,485,305

COSTS AND EXPENSES








Cost of services provided

192,995


182,235


772,348


735,976

Depreciation and amortization

13,829


11,340


50,902


44,522

Sales, general and administrative

126,321


117,601


490,528


463,742

Gain on sale of assets, net

(57)


(449)


(777)


(1,953)

Interest income, net

(4)


(26)


(160)


(160)


333,084


310,701


1,312,841


1,242,127

INCOME BEFORE INCOME TAXES

52,530


51,799


260,636


243,178

PROVISION FOR INCOME TAXES

14,523


20,050


93,267


91,029

NET INCOME

$    38,007


$     31,749


$    167,369


$    152,149









NET INCOME PER SHARE - BASIC AND DILUTED

$        0.17


$        0.15


$          0.77


$         0.70









Weighted average shares outstanding - basic and diluted

217,819


218,585


218,244


218,583

 

CONFERENCE CALL ANNOUNCEMENT
Rollins, Inc.
(NYSE: ROL)

Management will hold a conference call to discuss
Fourth Quarter and Twelve Months 2016 results on

Wednesday, January 25, 2017 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 800-533-7619 domestic;
785-830-1923 international
at least 5 minutes before start time.

REPLAY: available through February 1, 2017
Please dial 888-203-1112/719-457-0820, Passcode: 2262830
THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT
www.viavid.com

Questions?
Contact Samantha Alphonso at Financial Relations Board at 212-827-3746
Or email to salphonso@mww.com

For Further Information Contact
Eddie Northen (404) 888-2242

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/rollins-inc-reports-fourth-quarter-and-full-year-2016-record-financial-results-300395889.html

SOURCE Rollins, Inc.