Rollins, Inc. Reports Second Quarter And Six Months 2014 Financial Results

Company posts 33rd consecutive quarter of improved earnings

ATLANTA, July 23, 2014 /PRNewswire/ -- Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, today reported strong unaudited financial results for its second quarter and six months ended June 30, 2014.   

The Company recorded second quarter revenues of $369.4 million, an increase of 5.3% compared to $350.8 million in the prior year's second quarter.  Net Income increased 13.5% to $40.9 million or $0.28 per diluted share for the second quarter ended June 30, 2014, compared to $36.0 million or $0.25 per diluted share for the same period in 2013.   

Rollins' revenues rose 5.0% for the first six months of 2014 to $682.7 million compared to $650.5 million for the prior year.  Net income for the first six months of 2014 was $66.6 million, an increase of 12.6%, or $0.46 per diluted share compared to $59.2 million or $0.40 per diluted share for the same period last year.   

In the second quarter, the Company repurchased 192,583 shares under its share repurchase program and 226,012 shares have been repurchased year-to-date.  In total, 4,731,472 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 pleased to have reported improved financial results for both the quarter and first half of 2014.  We are particularly proud of our significant revenue to profit conversion that we achieved during this time period. This improvement was attributable to our favorable termite and casualty claim development and good cost control across most expense categories.  Our marketing and sales program initiatives continue to contribute, although service demand was disappointing."    

Mr. Rollins, concluded, "Rollins, Inc. again was recognized within our industry as North America's largest pest control company, although we were pleased with this achievement; however, we remain committed to being the world's best."  

Rollins Inc. is a premier global consumer and commercial services company. Through its wholly owned subsidiaries, Orkin LLC, Orkin Canada, HomeTeam Pest Defense, Western Pest Services, The Industrial Fumigant Company, Waltham Services LLC, Crane Pest Control, Trutech LLC, and Rollins Australia, the Company provides essential pest control services and protection against termite damage, rodents and insects to more than 2 million customers in the United States, Canada, Mexico, Europe, South America, Central America, the Middle East, the Caribbean, Asia, the Mediterranean, 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.westernpest.com, www.orkincanada.ca, www.indfumco.com, www.walthamservices.com, www.cranepestcontrol.com, www.trutechinc.com, www.allpest.com.au 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 commitment to be the world's best pest control company and the contributions of the Company's marketing and sales program initiatives.  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, 2013.

 


ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At June 30, (unaudited)

2014


2013

ASSETS




Cash and cash equivalents

$               101,519


$                    91,597

Trade accounts receivables, net

86,156


79,015

Financed receivables, net 

12,821


12,443

Materials and supplies

13,136


12,117

Deferred income taxes, net

40,781


34,299

Other current assets

19,052


28,321

Total Current Assets

273,465


257,792

Equipment and property, net

94,678


84,470

Goodwill 

255,515


212,004

Customer contracts and other intangible assets, net

139,231


131,122

Deferred income taxes, net

4,564


26,245

Financed receivables, long-term, net

12,955


12,834

Prepaid Pension

10,393


-

Other assets

13,788


12,602

    Total Assets

$               804,589


$                  737,069





LIABILITIES




Accounts payable

$                  27,972


$                    30,724

Accrued insurance, current

24,212


26,392

Accrued compensation and related liabilities

63,408


57,088

Unearned revenue

105,455


100,057

Other current liabilities

38,384


32,805

Total Current Liabilities

259,431


247,066

Accrued insurance, less current portion

31,340


28,575

Accrued pension

475


42,263

Long-term accrued liabilities

37,801


34,358

Total Liabilities

329,047


352,262





STOCKHOLDERS' EQUITY




Common stock

145,760


146,078

Retained earnings and other equity

329,782


238,729

Total stockholders' equity

475,542


384,807

Total Liabilities and Stockholders' Equity

$               804,589


$                  737,069





 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)










Second Quarter Ended


Six Months Ended


June 30,


June 30,


2014


2013


2014


2013

REVENUES








Customer services

$    369,357


$      350,798


$    682,745


$      650,512

COSTS AND EXPENSES








Cost of services provided

182,642


174,361


343,950


329,967

Depreciation and amortization

10,608


9,768


20,822


19,662

Sales, general and administrative

110,522


109,518


211,106


208,652

Interest (income)/expense

(86)


(127)


(162)


(172)


303,686


293,520


575,716


558,109

INCOME BEFORE INCOME TAXES

65,671


57,278


107,029


92,403

PROVISION FOR INCOME TAXES

24,811


21,284


40,403


33,230

NET INCOME

$      40,860


$       35,994


$      66,626


$       59,173









NET INCOME PER SHARE - BASIC

$          0.28


$           0.25


$          0.46


$           0.40

NET INCOME PER SHARE - DILUTED

$          0.28


$           0.25


$          0.46


$           0.40









Weighted average shares outstanding - basic

145,875


146,210


145,933


146,224

Weighted average shares outstanding - diluted

145,875


146,210


145,933


146,224









 

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

Management will hold a conference call to discuss
Second Quarter and Six Months 2014 results on:

Wednesday, July 23, 2014 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 888-801-6504 domestic;
913-312-0639 international
at least 5 minutes before start time.

 

REPLAY: available through July 30, 2014
Please dial 888-203-1112/719-457-0820, Passcode: 9319923
THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT
www.viavid.net
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

SOURCE Rollins, Inc.