Rollins, Inc. Reports Third Quarter And Nine Months 2018 Financial Results

Company posts 50th consecutive quarter of improved revenues and earnings

ATLANTA, Oct. 24, 2018 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier global consumer and commercial services company, reported unaudited financial results for its third quarter and nine months ended September 30, 2018.

The Company recorded third quarter revenues of $487.7 million, an increase of 8.3% over the prior year's third quarter revenue of $450.4 million.  Rollins' net income increased 29.6% to $66.6 million or $0.31 per diluted share for the third quarter ended September 30, 2018, compared to $51.4 million or $0.24 per diluted share for the same period in 2017. 

Rollins' revenues rose 9.3% for the first nine months of 2018 to $1.377 billion compared to $1.259 billion for the prior year.  Net income for the first nine months of 2018 was $180.7 million or $0.83 per diluted share, an increase of 24.3%, or $0.16 per diluted share compared to $145.4 million or $0.67 per diluted share for the same period last year. 

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "We are pleased to have completed our 50th consecutive quarter of improved revenue and earnings. The weather in some of the eastern U.S. was very challenging; however, our people took extreme measures to provide services to most of those customers impacted. We are so proud of our team and their willingness to go the extra mile.

On August 10, we celebrated our company's 50th year on the New York Stock Exchange. This was an especially historic occasion since our Chairman, R. Randall Rollins, and Lead Director, Henry B. Tippie were on hand at the initial listing, and for this anniversary. I want to thank them, our employees and shareholders for their support and contribution to our success during those past 50 years."

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, Northwest Exterminating, Critter Control, Inc., The Industrial Fumigant Company, Trutech LLC., Orkin Australia, Waltham Services LLC., 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, 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 Rollins and its subsidiaries by visiting our web sites at www.orkin.com, www.pestdefense.com, www.orkincanada.ca, www.westernpest.com, www.callnorthwest.com,  www.crittercontrol.com, www.indfumco.com, www.trutechinc.com, www.orkinau.com, www.allpest.com.au, www.walthamservices.com, www.opcpest.com, www.permatreat.com, www.cranepestcontrol.com, www.murraypestcontrol.com.au, www.statewidepestcontrol.com.au, www.safeguardpestcontrol.co.uk, www.aardwolfpestkare.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. 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, 2017.

ROL-Fin

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)





At September 30, (unaudited)

2018


2017

ASSETS




Cash and cash equivalents

$               118,652


$                  113,396

Trade accounts receivables, net

122,375


110,325

Financed receivables, net

20,384


17,208

Materials and supplies

16,093


15,380

Other current assets

25,576


26,617

Total Current Assets

303,080


282,926

Equipment and property, net

136,857


132,865

Goodwill

365,480


372,924

Customer contracts

185,477


141,385

Trademarks & Tradenames

53,850


35,196

Other intangible assets, net

11,587


10,777

Financed receivables, long-term, net

26,882


18,995

Deferred income taxes, net

5,863


32,491

Prepaid pension

19,522


-

Other assets

20,975


18,968

    Total Assets

$            1,129,573


$               1,046,527

LIABILITIES




Accounts payable

$                  29,991


$                    36,195

Accrued insurance, current

27,722


27,830

Accrued compensation and related liabilities

73,829


75,087

Unearned revenue

123,916


118,950

Other current liabilities

53,923


50,724

Total Current Liabilities

309,381


308,786

Accrued insurance, less current portion

33,883


34,014

Accrued pension

58


1,759

Long-term accrued liabilities

51,493


51,529

Total Liabilities

394,815


396,088

STOCKHOLDERS' EQUITY




Common stock

218,212


217,975

Retained earnings and other equity

516,546


432,464

Total stockholders' equity

734,758


650,439

Total Liabilities and Stockholders' Equity

$            1,129,573


$               1,046,527






 

 

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,


2018


2017


2018


2017

REVENUES








Customer services

$  487,739


$   450,442


$ 1,376,942


$ 1,259,244

COSTS AND EXPENSES








Cost of services provided

236,287


218,781


673,202


612,424

Depreciation and amortization

16,867


14,313


50,149


41,630

Sales, general and administrative

145,072


134,932


414,938


379,753

Gain on sale of assets, net

(314)


(66)


(678)


(179)

Interest expense / (income), net

(63)


(79)


70


(342)


397,849


367,881


1,137,681


1,033,286

INCOME BEFORE INCOME TAXES

89,890


82,561


239,261


225,958

PROVISION FOR INCOME TAXES

23,262


31,131


58,566


80,569

NET INCOME

$    66,628


$    51,430


$    180,695


$   145,389

NET INCOME PER SHARE - BASIC AND DILUTED

$        0.31


$        0.24


$          0.83


$         0.67

Weighted average shares outstanding - basic and diluted

218,214


217,988


218,188


217,987









 

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

Management will hold a conference call to discuss
Third Quarter 2018 results on

Wednesday, October 24, 2018 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 855-719-5012 domestic;
334-323-0522 international
at least 5 minutes before start time.

REPLAY: available through October 31, 2018
Please dial 888-203-1112/719-457-0820, Passcode 2143746
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

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SOURCE Rollins, Inc.