Rollins, Inc. Reports Record Third Quarter And Nine Months 2015 Financial Results

Company posts 38th consecutive quarter of improved earnings

ATLANTA, Oct. 28, 2015 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier global consumer and commercial services company, today reported unaudited financial results for its third quarter and nine months ended September 30, 2015.

The Company recorded third quarter revenues of $399.7 million, an increase of 3.9% over the prior year's third quarter of $384.9 million.  Net income increased 9.5% to $45.0 million or $0.21 per diluted share for the third quarter ended September 30, 2015 compared to $41.1 million or $0.19 per diluted share for the same period in 2014. 

Rollins' revenues rose 5.2% for the first nine months of 2015 to $1.123 billion compared to $1.068 billion for the prior year.  Net income for the first nine months of 2015 was $120.4 million, an increase of 11.7%, or $0.55 per diluted share compared to $107.7 million or $0.49 per diluted share for the same period last year.  

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." 

Mr. Rollins concluded, "Our progress in the first nine months of this year has been solid and we are on target to meet our business objectives for the year.  Our focus is squarely on providing a great job for our employees, excellent service to our customers and solid earnings improvement for our shareholders.  We remain confident in our strategy and action plans, and are working hard to grow the business both organically and through strategic acquisitions."

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, 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 our subsidiaries by visiting our web sites at www.orkin.com, www.pestdefense.com, www.orkincanada.ca, www.westernpest.com, www.crittercontrol.comwww.indfumco.com, www.trutechinc.com, www.allpest.com.au, www.walthamservices.com, www.permatreat.com, www.cranepestcontrol.com, and www.rollins.com. You can also find this and other news releases at www.rollins.com by accessing the news releases button.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This release contains statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements about the Company's being on target to meet its business objectives for the year; intent to provide a good job for all of its employees, great service to customers and solid earnings improvement for shareholders; and confidence in its strategy and action plans.  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, 2014.

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At September 30, (unaudited)

2015


2014

ASSETS




Cash and cash equivalents

$               134,310


$                  114,216

Trade accounts receivables, net

90,782


87,755

Financed receivables, net 

14,211


12,867

Materials and supplies

12,964


12,526

Deferred income taxes, net

42,141


42,280

Other current assets

24,695


17,701

Total Current Assets

319,103


287,345

Equipment and property, net

115,731


101,986

Goodwill 

248,792


250,540

Customer contracts and other intangible assets, net

142,640


150,286

Deferred income taxes, net

8,308


-

Financed receivables, long-term, net

14,217


12,276

Prepaid pension

-


10,533

Other assets

13,548


13,668

    Total Assets

$               862,339


$                  826,634





LIABILITIES




Accounts payable

$                  21,092


$                    26,293

Accrued insurance, current

31,192


25,024

Accrued compensation and related liabilities

74,138


72,074

Unearned revenue

105,725


104,296

Other current liabilities

32,727


40,170

Total Current Liabilities

264,874


267,857

Accrued insurance, less current portion

21,866


30,472

Accrued pension

24,538


493

Deferred income taxes, net

-


397

Long-term accrued liabilities

31,631


36,402

Total Liabilities

342,909


335,621





STOCKHOLDERS' EQUITY




Common stock

218,591


218,289

Retained earnings and other equity

300,839


272,724

Total stockholders' equity

519,430


491,013

Total Liabilities and Stockholders' Equity

$               862,339


$                  826,634

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)










Three Months Ended


Nine Months Ended


September 30,


September 30,


2015


2014


2015


2014

REVENUES








Customer services

$  399,746


$   384,870


$ 1,122,805


$ 1,067,615

COSTS AND EXPENSES








Cost of services provided

195,489


188,810


553,741


532,760

Depreciation and amortization

11,156


11,437


33,182


32,259

Sales, general and administrative

121,944


118,765


346,141


330,349

Gain on sale of assets, net 

(1,255)


(86)


(1,504)


(564)

Interest (income)/expense, net 

(21)


24


(134)


(138)


327,313


318,950


931,426


894,666

INCOME BEFORE INCOME TAXES

72,433


65,920


191,379


172,949

PROVISION FOR INCOME TAXES

27,387


24,799


70,979


65,202

NET INCOME

$    45,046


$     41,121


$    120,400


$    107,747









NET INCOME PER SHARE - BASIC AND DILUTED

$        0.21


$        0.19


$          0.55


$         0.49









Weighted average shares outstanding - basic and diluted

218,594


218,700


218,583


218,832

 

CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)


Management will hold a conference call to discuss

Third Quarter and Nine Months 2015 results on


Wednesday, October 28, 2015 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 888-632-3382 domestic;

785-424-1677 international

at least 5 minutes before start time.


REPLAY: available through November 4, 2015

Please dial 888-203-1112/719-457-0820, Passcode: 212739

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-record-third-quarter-and-nine-months-2015-financial-results-300167190.html

SOURCE Rollins, Inc.