Rollins, Inc. Reports Record First Quarter 2015 Financial Results

Company posts 36th consecutive quarter of improved earnings

ATLANTA, April 29, 2015 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier global consumer and commercial services company, today reported unaudited financial results for its first quarter ended March 31, 2015.

The Company recorded first quarter revenues of $330.9 million, an increase of 5.6% over the prior year's first quarter of $313.4 million.  Net income increased 17.5% to $30.3 million or $0.14 per diluted share for the first quarter ended March 31, 2015 compared to $25.8 million or $0.12 per diluted share for the same period in 2014. 

On January 27, 2015, Rollins increased its regular quarterly cash dividend to shareholders 14.3% to $0.08 per share.  Additionally, in the first quarter of 2015, the Company announced it purchased 19,137 shares of the Company's stock under its share repurchase program.  In total, 5.9 million additional shares may be purchased under previously approved programs by the Board of Directors. 

Commenting on the Company's results, Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "We are extremely pleased to have reported another quarter of improved revenue and profit, with all lines of our business contributing to our growth.  The conversion of revenue growth to net income increase was outstanding.  We are highly focused on executing our strategic business objectives.  Our team is committed to taking our Company to the next level as it relates to customer growth, employee development and retention as well as shareholder value.  We are off to an exciting start and the New Year presents us with many opportunities to advance these 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, 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 500 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.com,  www.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 opportunities to advance the objectives of executing our strategic business objectives, customer growth, employee development and retention as well as shareholder value. 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 March 31, (unaudited)

2015


2014

ASSETS




Cash and cash equivalents

$                  93,389


$                    83,129

Trade accounts receivables, net

76,523


75,307

Financed receivables, net 

11,964


11,230

Materials and supplies

13,766


12,688

Deferred income taxes, net

40,749


39,563

Other current assets

18,840


19,087

Total Current Assets

255,231


241,004

Equipment and property, net

105,448


92,026

Goodwill 

269,375


235,257

Customer contracts and other intangible assets, net

136,635


157,014

Deferred income taxes, net

8,912


4,750

Financed receivables, long-term, net

11,650


11,246

Prepaid pension

-


10,253

Other assets

14,011


14,111

    Total Assets

$               801,262


$                  765,661





LIABILITIES




Accounts payable

$                  21,426


$                    26,581

Accrued insurance, current

24,888


26,654

Accrued compensation and related liabilities

60,217


56,544

Unearned revenue

100,104


98,461

Other current liabilities

37,822


42,262

Total Current Liabilities

244,457


250,502

Accrued insurance, less current portion

31,231


28,625

Accrued pension

26,051


458

Long-term accrued liabilities

32,543


36,310

Total Liabilities

334,282


315,895





STOCKHOLDERS' EQUITY




Common stock

218,641


219,035

Retained earnings and other equity

248,339


230,731

Total stockholders' equity

466,980


449,766

Total Liabilities and Stockholders' Equity

$               801,262


$                  765,661





 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)






First Quarter Ended


March 31,


2015


2014

REVENUES




Customer services

$      330,909


$       313,388

COSTS AND EXPENSES




Cost of services provided

168,043


161,308

Depreciation and amortization

10,781


10,214

Sales, general and administrative

105,575


100,832

Gain on sale of assets, net 

(55)


(248)

Interest income, net 

(47)


(76)


284,297


272,030

INCOME BEFORE INCOME TAXES

46,612


41,358

PROVISION FOR INCOME TAXES

16,331


15,592

NET INCOME

$        30,281


$         25,766





NET INCOME PER SHARE - BASIC

$            0.14


$            0.12

NET INCOME PER SHARE - DILUTED

0.14


0.12





Weighted average shares outstanding - basic and diluted

218,541


218,986





 

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

Management will hold a conference call to discuss
First Quarter 2015 results on:
Wednesday, April 29, 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 888-556-4997 domestic;
719-325-2329 international
at least 5 minutes before start time.

REPLAY: available through May 6, 2015
Please dial 888-203-1112/719-457-0820, Passcode: 6386676
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
Harry J. Cynkus (404) 888-2922
Eddie Northen (404) 888-2242

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/rollins-inc-reports-record-first-quarter-2015-financial-results-300073689.html

SOURCE Rollins, Inc.