Rollins, Inc. Reports Second Quarter And Six Months 2020 Financial Results

ATLANTA, July 29, 2020 /PRNewswire/ -- 

  • Total revenue increased 5.6% for the quarter despite a worldwide economic downturn
  • Residential revenues increased 14.8% with multiple record setting days of new customer sales
  • Net Income grew 17.2% and EPS increased to $0.23

Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, reported strong unaudited financial results for its second quarter and six months ended June 30, 2020.

The Company recorded second quarter revenues of $553.3 million, an increase of 5.6% over the prior year's second quarter revenue of $524.0 million.  Rollins' reported net income of $75.4 million or $0.23 per diluted share for the second quarter ended June 30, 2020, compared to $64.3 million or $0.20 per diluted share for the same period in 2019. 

Going into this quarter, we were faced with the global economic downturn from COVID-19 and responded with numerous operational adjustments to address the economic challenges.  These included new COVID-related procedures, modified customer service and related protocols, daily health screenings before entering shared offices, and a transition to remote work locations to reduce concentrations of personnel in offices where appropriate. 

Cost containment efforts included furloughs, layoffs, elimination of non-essential travel and capital expenditures, and temporary salary reductions for upper management, among other things.  These cost savings were offset by increased spending for personal protective equipment (PPE).   These timely actions coupled with lower fuel prices and our routing and scheduling enhancements contributed to our profit improvement.

Our commercial customers' operations were most heavily impacted by the various governmental shelter-in-place mandates and their effect on small to medium size businesses, but the well-timed launch of our new VitalClean sanitation services helped businesses reopen and protect their employees and customers.

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "We are pleased with our leadership and their reaction to the new operational challenges we have faced as we continue to meet the needs of our customers and employees."

Rollins, Inc. is a premier global consumer and commercial services company.  Through its family of leading brands, Orkin, HomeTeam Pest Defense, Clark Pest Control, Orkin Canada, Western Pest Services, Northwest Exterminating, Critter Control, The Industrial Fumigant Company, Trutech, Orkin Australia, Waltham Services, OPC Services, PermaTreat, Rollins UK, Aardwolf Pestkare, 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 North America, South America, Europe, Asia, Africa, 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.clarkpest.com, www.orkincanada.ca, www.westernpest.com, www.callnorthwest.com,  www.crittercontrol.com, www.indfumco.com, www.trutechinc.com, www.orkinau.com, www.walthamservices.com, www.opcpest.com, www.permatreat.com, www.safeguardpestcontrol.co.uk, www.aardwolfpestkare.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 a statement that constitutes a "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. This forward-looking statement includes a statement about the Company continuing to meet the needs of its customers and employees. 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, the extent and duration of the coronavirus (COVID-19) pandemic and its potential impact on the financial health of the Company's business partners, customers, supply chains and  suppliers, global economic conditions and capital and financial markets, changes in consumer behavior and demand, the potential unavailability of personnel or key facilities, modifications to the Company's operations, and the potential implementation of regulatory actions;  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; changes in various government laws and regulations, including environmental regulations; and the impact of the U. S. Government shutdown.  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 te 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, 2019.

ROL-Fin

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At June 30, (unaudited)

2020


2019

ASSETS




Cash and cash equivalents

134,829


$      98,466

Trade accounts receivables, net

129,297


130,696

Financed receivables, net 

23,285


21,598

Materials and supplies

34,064


17,579

Other current assets

41,626


51,506

Total Current Assets

363,101


319,845

Equipment and property, net

191,141


201,196

Goodwill 

602,310


563,075

Customer contracts, net

275,782


283,309

Trademarks and tradenames, net

104,760


102,986

Other intangible assets, net

10,176


11,228

Operating lease, right-of-use assets

214,874


191,183

Financed receivables, long-term, net

38,281


30,611

Benefit plan assets

9,312


-

Prepaid pension

-


5,274

Deferred income tax assets

2,105


-

Other assets

24,540


21,070

    Total Assets

$ 1,836,382


$ 1,729,777

LIABILITIES




Accounts payable

48,037


37,644

Accrued insurance, current

31,230


30,265

Accrued compensation and related liabilities

87,050


77,377

Unearned revenue

139,541


133,672

Operating lease liabilities, current

71,494


62,195

Current portion of long-term debt

12,500


12,500

Other current liabilities

88,321


60,688

Total Current Liabilities

478,173


414,341

Accrued insurance, less current portion

35,520


34,705

Operating lease liabilities, less current portion

144,846


129,373

Long-term debt

242,500


335,375

Deferred income tax liabilities

14,482


475

Long-term accrued liabilities

58,031


63,244

Total Liabilities

973,552


977,513

STOCKHOLDERS' EQUITY




Common stock

327,759


327,486

Retained earnings and other equity

535,071


424,778

Total stockholders' equity

862,830


752,264

Total Liabilities and Stockholders' Equity

$ 1,836,382


$ 1,729,777

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)










Three Months Ended


Six Months Ended


June 30,


June 30,


2020


2019


2020


2019

REVENUES








Customer services

$553,329


$523,957


$1,041,230


$953,026

COSTS AND EXPENSES








Cost of services provided

255,622


253,333


506,774


470,591

Depreciation and amortization

21,925


20,132


43,522


36,815

Sales, general and administrative

171,253


161,886


329,115


301,416

Gain on sale of assets, net 

(451)


(252)


(726)


(433)

Interest expense, net

1,460


1,899


3,625


1,625


449,809


436,998


882,310


810,014

INCOME BEFORE INCOME TAXES

103,520


86,959


158,920


143,012

PROVISION FOR INCOME TAXES

28,162


22,664


40,294


34,491

NET INCOME

$  75,358


$  64,295


$   118,626


$108,521

NET INCOME PER SHARE - BASIC AND DILUTED

$      0.23


$      0.20


$         0.36


$      0.33

Weighted average shares outstanding - basic and diluted

327,763


327,506


327,723


327,506

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

Management will hold a conference call to discuss
Second Quarter 2020 results on

Wednesday, July 29, 2020 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 877-407-9716 domestic;
201-493-6779 international
with conference ID of 13705813
at least 5 minutes before start time.

REPLAY: available through August 5, 2020
Please dial 844-512-2921 / 412-317-6671, Passcode 13705813
THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT

www.rollins.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

SOURCE Rollins, Inc.