Form: 8-K

Current report filing

July 26, 2017

Documents

Exhibit 99.1

 

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

 

 

FOR IMMEDIATE RELEASE

 

 

ROLLINS, INC. REPORTS SECOND QUARTER AND SIX MONTHS 2017 FINANCIAL RESULTS

 

Company posts 45th consecutive quarter of improved revenue and earnings

 

ATLANTA, GEORGIA, July 26, 2017: Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, reported unaudited financial results for its second quarter and six months ended June 30, 2017.

 

The Company recorded second quarter revenues of $433.6 million, an increase of 5.5% over the prior year’s second quarter revenue of $411.1 million. Rollins’ net income increased 12.4% to $53.7 million or $0.25 per diluted share for the second quarter ended June 30, 2017, compared to $47.8 million or $0.22 per diluted share for the same period in 2016.

 

Rollins’ revenues rose 5.9% for the first six months of 2017 to $808.8 million compared to $763.9 million for the prior year. Net income for the first six months of 2017 was $94.0 million, an increase of 17.9%, or $0.43 per diluted share compared to $79.7 million or $0.36 per diluted share for the same period last year.

 

Commenting on the Company’s financial results, Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “This quarter reflects a record performance in revenue and profits. Our revenue growth reflects contributions from all of our businesses. As you would expect, we are pleased with the results from our operational initiatives and their impact on customer and employee retention, as well as the bottom line.”

 

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. 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, 2016.

 

ROL-Fin

 

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At June 30, (unaudited)   2017   2016
ASSETS                
  Cash and cash equivalents   $ 194,837     $ 126,465  
  Trade accounts receivables, net     101,229       96,959  
  Financed receivables, net     16,834       15,263  
  Materials and supplies     15,507       14,635  
  Other current assets     33,219       33,265  
  Total Current Assets     361,626       286,587  
  Equipment and property, net     131,443       133,519  
  Goodwill     258,263       254,001  
  Customer contracts and other intangible assets, net     156,997       164,604  
  Deferred income taxes, net     34,203       34,403  
  Financed receivables, long-term, net     19,467       16,617  
  Other assets     18,527       15,870  
  Total Assets   $ 980,526     $ 905,601  
LIABILITIES                
  Accounts payable   $ 33,777     $ 27,628  
  Accrued insurance, current     27,118       25,636  
  Accrued compensation and related liabilities     72,013       71,564  
  Unearned revenue     112,973       109,733  
  Other current liabilities     41,216       36,738  
  Total Current Liabilities     287,097       271,299  
  Accrued insurance, less current portion     33,144       31,333  
  Accrued pension     2,132       9,459  
  Long-term accrued liabilities     40,691       35,190  
  Total Liabilities     363,064       347,281  
  STOCKHOLDERS’ EQUITY                
  Common stock     217,991       218,300  
  Retained earnings and other equity     399,471       340,020  
  Total stockholders’ equity     617,462       558,320  
  Total Liabilities and Stockholders’ Equity   $ 980,526     $ 905,601  

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

    Three Months Ended   Six Months Ended
    June 30,   June 30,
    2017   2016   2017   2016
REVENUES                
Customer services   $ 433,555     $ 411,133     $ 808,802     $ 763,869  
COSTS AND EXPENSES                                
Cost of services provided     204,480       195,943       393,643       373,745  
Depreciation and amortization     13,547       12,350       27,317       23,990  
Sales, general and administrative     129,667       126,545       244,821       238,800  
Gain on sale of assets, net     (88 )     (579 )     (113 )     (668 )
Interest income, net     (190 )     (88 )     (263 )     (138 )
      347,416       334,171       665,405       635,729  
INCOME BEFORE INCOME TAXES     86,139       76,962       143,397       128,140  
PROVISION FOR INCOME TAXES     32,450       29,179       49,438       48,429  
NET INCOME   $ 53,689     $ 47,783     $ 93,959     $ 79,711  
                                 
NET INCOME PER SHARE - BASIC AND DILUTED   $ 0.25     $ 0.22     $ 0.43     $ 0.36  
                                 
Weighted average shares outstanding - basic and diluted     218,002       218,437       217,987       218,562  

 

 

 

 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

 

Management will hold a conference call to discuss

Second Quarter 2017 results on

 

Wednesday, July 26, 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 877-397-0298 domestic;

719-325-4810 international
at least 5 minutes before start time.

 

REPLAY: available through August 2, 2017

Please dial 888-203-1112/719-457-0820, Passcode: 4118006

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