Rollins, Inc. Reports First Quarter 2020 Financial Results

ATLANTA, April 29, 2020 /PRNewswire/ --  

  • Revenue increased 13.7% for the quarter
  • Rollins deemed "essential service" by Department of Homeland Security
  • Rollins launches Orkin VitalClean – Powerful New Disinfectant Business

Rollins, Inc. (NYSE: ROL), a premier global consumer and commercial services company, reported strong unaudited financial results for its first quarter ended March 31, 2020.

The Company recorded first quarter revenues of $487.9 million, an increase of 13.7% over the prior year's first quarter revenue of $429.1 million.  Rollins reported net income of $43.3 million or $0.13 per diluted share in the first quarter that ended March 31, 2020, compared to $44.2 million or $0.14 per diluted share for the same period in 2019. 

In light of the global response and impact of COVID-19, Rollins, Inc. has made significant operational adjustments as a result of the changing economic situation. With pest control being deemed as an essential service by the Department of Homeland Security, the Company has been able to remain operational in every part of the world in which it operates.

The safety of our employees and customers is a prime consideration.  To protect their health, we have adopted numerous safety initiatives, such as; providing personal protective equipment (PPE) for our technicians (masks, booties, gloves, coveralls, etc.).  We have also complied with recommended actions to disinfect our equipment and facilities, increase social distancing, and provide contact-free services.

As announced earlier, our Orkin brand launched a new disinfectant service for businesses – VitalClean™, which uses an EPA-registered disinfectant.  This material has low toxicity and is labeled for use against a wide variety of pathogens, including other known coronaviruses. 

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "It is difficult to know when the economy might rebound and the financial crisis will end; however we have taken proactive steps including but not limited to furloughs, selected pay reductions, and the reduction of non-essential expenses.  In addition to our launch of VitalClean in our commercial branches, we are entering into our termite and mosquito seasons, which will provide revenue building opportunities.  We are well positioned to adjust our business further if necessary, to meet the unique challenges we may face."

Rollins, Inc. is a premier global consumer and commercial services company. Through its wholly owned subsidiaries, 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 Pest 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 the United States, Canada, Mexico, Central and South America, the Caribbean, the Middle East, Asia, Europe, 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 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 uncertainty of when the economy might rebound and the financial crisis related to the coronavirus (COVID-19) pandemic will end; the Company's belief that the termite and mosquito seasons will provide revenue building opportunities; and the Company's belief that it is well-positioned to adjust its business further if necessary to meet the unique challenges it may face as a result of the coronavirus (COVID-19) pandemic. 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 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, 2019.

ROL-Fin

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At March 31, (unaudited)

2020


2019

ASSETS




Cash and cash equivalents

$                  92,582


$                  116,607

Trade accounts receivables, net

123,166


104,593

Financed receivables, net 

22,209


19,258

Materials and supplies

21,527


16,572

Other current assets

45,346


32,909

Total Current Assets

304,830


289,939

Equipment and property, net

194,854


136,806

Goodwill 

596,067


370,492

Customer contracts, net

279,361


174,777

Trademarks and tradenames, net

104,863


53,934

Other intangible assets, net

10,314


10,712

Operating lease, right-of-use assets

207,975


182,176

Financed receivables, long-term, net

33,952


26,376

Benefit plan assets

15,639


-

Prepaid pension

-


5,274

Deferred income tax assets

1,961


961

Other assets

21,663


20,625

    Total Assets

$            1,771,479


$               1,272,072

LIABILITIES




Accounts payable

$                  36,844


$                    27,496

Accrued insurance, current

30,739


27,940

Accrued compensation and related liabilities

68,289


58,853

Unearned revenue

129,352


123,935

Operating lease liabilities, current

69,094


60,454

Current portion of long-term debt

12,500


-

Other current liabilities

71,050


54,034

Total Current Liabilities

417,868


352,712

Accrued insurance, less current portion

34,921


34,148

Operating lease liabilities, less current portion

140,152


121,775

Long-term debt

307,300


-

Deferred income tax liabilities

14,257


-

Long-term accrued liabilities

56,610


44,313

Total Liabilities

971,108


552,948

STOCKHOLDERS' EQUITY




Common stock

327,767


327,530

Retained earnings and other equity

472,604


391,594

Total stockholders' equity

800,371


719,124

Total Liabilities and Stockholders' Equity

$            1,771,479


$               1,272,072

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)






Three Months Ended


March 31,


2020


2019

REVENUES




Customer services

$  487,901


$   429,069

COSTS AND EXPENSES




Cost of services provided

251,152


217,258

Depreciation and amortization

21,597


16,683

Sales, general and administrative

157,862


139,530

Gain on sale of assets, net 

(275)


(181)

Interest expense/(income), net

2,165


(274)


432,501


373,016

INCOME BEFORE INCOME TAXES

55,400


56,053

PROVISION FOR INCOME TAXES

12,132


11,827

NET INCOME

$    43,268


$     44,226

NET INCOME PER SHARE - BASIC AND DILUTED

$        0.13


$        0.14

Weighted average shares outstanding - basic and diluted

327,682


327,506

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

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

Wednesday, April 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 866-575-6539 domestic;
720-543-0214 international
at least 5 minutes before start time.

REPLAY: available through May 6, 2020
Please dial 844-512-2921 / 412-317-6671, Passcode 3596058
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

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SOURCE Rollins, Inc.