EX-99.1 2 e00208_ex99-1.htm

Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

Eddie Northen (404) 888-2242

 

 

FOR IMMEDIATE RELEASE

 

 

ROLLINS, INC. REPORTS RECORD FIRST QUARTER 2015

FINANCIAL RESULTS

 

Company posts 36th consecutive quarter of improved earnings

 

ATLANTA, GEORGIA, April 29, 2015: 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