EX-99.1 2 e00034_ex99-1.htm

Exhibit 99.1

 

For Further Information Contact

Eddie Northen (404) 888-2242

 

 

FOR IMMEDIATE RELEASE

 

 

ROLLINS, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2015

RECORD FINANCIAL RESULTS

Company posts 39th consecutive quarter of improved earnings

 

  • Revenue increased 5.4% for the quarter and 5.2% for full year
  • Income before taxes rose 11.3% for the quarter and 10.8% for the full year
  • Net income up 6.1% for the quarter and 10.5% for the full year
  • Earnings per diluted share rose 7.1% for the quarter to $0.15 from $0.14, and up 11.1% to $0.70 from $0.63 for the full year

 

ATLANTA, GEORGIA, January 27, 2016: Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, reported strong unaudited financial results for its fourth quarter and year ended December 31, 2015.

 

The Company recorded fourth quarter revenues of $362.5 million, an increase of 5.4% over the prior year’s fourth quarter revenue of $344.0 million. Income before income taxes rose 11.3% to $51.8 million compared to $46.5 million for the prior year’s fourth quarter. Rollins’ net income increased 6.1% to $31.7 million or $0.15 per diluted share for the fourth quarter ended December 31, 2015, compared to $29.9 million or $0.14 per diluted share for the same period in 2014.

 

For the full-year ended December 31, 2015, Rollins’ revenues rose 5.2% to $1.485 billion compared to $1.412 billion for the prior year, and income before income taxes increased 10.8% to $243.2 million compared to prior year’s $219.5 million. The Company’s net income for the year rose 10.5% to $152.1 million, or $0.70 per diluted share, compared to net income of $137.7 million, or $0.63 per diluted share for last year.

 

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “We are pleased to have achieved our major financial objectives for 2015 with record revenue and profit growth across all the Company’s brands. The progress we made this past year is a reflection of the dedication of our employees and their commitment to achieve our strategic initiatives.”

 

Mr. Rollins, concluded, “Our culture of continued improvement is the driving force behind our enhanced customer service, sales results, productivity improvement, customer growth and financial results. We are excited about our Company’s plans for 2016 and are clearly focused on having another successful year.”

 

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 700 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 being excited about its plans for 2016 and focused on having another successful year. 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 December 31, (unaudited)  2015  2014
ASSETS          
Cash and cash equivalents  $134,574   $108,372 
Trade accounts receivables, net   79,864    77,854 
Financed receivables, net   13,830    12,234 
Materials and supplies   12,801    14,078 
Deferred income taxes, net   44,445    42,764 
Other current assets   28,365    28,656 
Total Current Assets   313,879    283,958 
Equipment and property, net   121,356    101,669 
Goodwill   249,939    255,563 
Customer contracts and other intangible assets, net   138,931    133,472 
Deferred income taxes, net   —      7,881 
Financed receivables, long-term, net   13,636    11,787 
Other assets   14,690    13,832 
    Total Assets  $852,431   $808,162 
           
LIABILITIES          
Accounts payable  $24,919   $22,878 
Accrued insurance, current   24,874    24,204 
Accrued compensation and related liabilities   73,607    74,090 
Unearned revenue   96,192    94,056 
Other current liabilities   33,394    37,451 
Total Current Liabilities   252,986    252,679 
Accrued insurance, less current portion   30,402    30,946 
Accrued pension   9,735    29,558 
Deferred income taxes, net   3,780    —   
Long-term accrued liabilities   31,499    32,303 
Total Liabilities   328,402    345,486 
           
STOCKHOLDERS’ EQUITY          
Common stock   218,553    218,283 
Retained earnings and other equity   305,476    244,393 
Total stockholders’ equity   524,029    462,676 
Total Liabilities and Stockholders’ Equity  $852,431   $808,162 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

   Three Months Ended  Twelve Months Ended
   December 31,  December 31,
   2015  2014  2015  2014
REVENUES                    
Customer services  $362,500   $343,951   $1,485,305   $1,411,566 
COSTS AND EXPENSES                    
Cost of services provided   182,235    174,979    735,976    707,739 
Depreciation and amortization   11,340    11,250    44,522    43,509 
Sales, general and administrative   117,601    111,357    463,742    441,706 
Gain on sale of assets, net   (449)   (54)   (1,953)   (618)
Interest income, net   (26)   (116)   (160)   (254)
    310,701    297,416    1,242,127    1,192,082 
INCOME BEFORE INCOME TAXES   51,799    46,535    243,178    219,484 
PROVISION FOR INCOME TAXES   20,050    16,618    91,029    81,820 
NET INCOME  $31,749   $29,917   $152,149   $137,664 
                     
NET INCOME PER SHARE - BASIC AND DILUTED  $0.15   $0.14   $0.70   $0.63 
                     
Weighted average shares outstanding - basic and diluted   218,585    218,287    218,583    218,695 

 

 
 

 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

 

 

Management will hold a conference call to discuss

Fourth Quarter and Twelve Months 2015 results on

 

Wednesday, January 27, 2016 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 888-632-3384 domestic;

785-424-1675 international
at least 5 minutes before start time.

 

REPLAY: available through February 3, 2016

Please dial 888-203-1112/719-457-0820, Passcode: 8962426

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