EX-99.1 2 e00424_ex99-1.htm

Exhibit 99.1

 

For Further Information Contact

Eddie Northen (404) 888-2242

 

 

FOR IMMEDIATE RELEASE

 

 

 

ROLLINS, INC. REPORTS SECOND QUARTER AND SIX MONTHS 2016 FINANCIAL RESULTS

 

Company posts 41st consecutive quarter of improved revenue and earnings

 

ATLANTA, GEORGIA, July 27, 2016: Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, reported unaudited financial results for its second quarter and six months ended June 30, 2016.

 

The Company recorded second quarter revenues of $411.1 million, an increase of 4.8% over the prior year’s $392.2 million. Rollins’ net income increased 6.0% to $47.8 million or $0.22 per diluted share for the second quarter ended June 30, 2016, compared to $45.1 million or $0.21 per diluted share for the same period in 2015.

 

Rollins’ revenues rose 5.6% for the first six months of 2016 to $763.9 million compared to $723.1 million for the prior year. Net income for the first six months of 2016 was $79.7 million, an increase of 5.8%, or $0.36 per diluted share compared to $75.4 million or $0.34 per diluted share for the same period last year.

 

Additionally, in the second quarter of 2016, the Company announced it purchased 365,121 shares of the Company’s stock under its share repurchase program and 419,329 shares have been repurchased year-to-date. In total, 5.5 million additional shares may be purchased under previously approved programs by the Board of Directors.

 

Commenting on the Company’s financial results, Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “We are pleased to have reported solid financial results for both the quarter and first half of 2016. These results reflect our team’s ongoing commitment to continuous improvements in all areas of our business: customer service, sales, productivity initiatives, marketing, and other programs. We completed the conversion of our new CRM and operating system (BOSS), to over 95% of the Orkin branches this quarter. Our expenses were negatively impacted this quarter by the acceleration of this roll-out.”

 

“We’re extremely proud to announce our Company’s acquisition this quarter of our first operation in the United Kingdom, Safeguard Pest Control and Environmental Services. Safeguard is the largest independent pest control company in London and the surrounding Southeastern Counties. This is a significant milestone for us as we continue our strategic plan to expand our brand globally. We look forward to working with Safeguard’s exceptional team and sharing each other’s best practices of pest control, training, and customer service.”

 

 

 

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, Rollins UK, 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.crittercontrol.com, www.indfumco.com, www.trutechinc.com,  www.allpest.com.au, www.walthamservices.com, www.permatreat.com, www.cranepestcontrol.com, www.murraypestcontrol.com.au, www.statewidepestcontrol.com.au, www.safeguardpestcontrol.co.uk, 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 ability to purchase 5.5 million shares under the previously approved share repurchase program, the Company’s ongoing commitment to continuous improvements in all areas of our business: customer service, sales, productivity initiatives, marketing and others programs; the Company’s expectation to continue its strategic plan to expand our brand globally and the Company’s plans to work with Safeguard’s exceptional team and sharing each other’s best practices of pest control, training and customer service. 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, 2015.

ROL-Fin

 

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At June 30, (unaudited)  2016  2015
ASSETS          
Cash and cash equivalents  $126,465   $109,684 
Trade accounts receivables, net   96,959    88,267 
Financed receivables, net   15,263    14,059 
Materials and supplies   14,635    14,034 
Other current assets   33,265    32,377 
Total Current Assets   286,587    258,421 
Equipment and property, net   133,519    110,375 
Goodwill   254,001    269,867 
Customer contracts and other intangible assets, net   164,604    132,395 
Deferred income taxes, net   34,403    49,250 
Financed receivables, long-term, net   16,617    14,370 
Other assets   15,870    14,083 
Total Assets  $905,601   $848,761 
           
LIABILITIES          
Accounts payable  $27,628   $28,550 
Accrued insurance, current   25,636    27,347 
Accrued compensation and related liabilities   71,564    69,295 
Unearned revenue   109,733    107,327 
Other current liabilities   36,738    31,416 
Total Current Liabilities   271,299    263,935 
Accrued insurance, less current portion   31,333    28,210 
Accrued pension   9,459    26,045 
Long-term accrued liabilities   35,190    33,328 
Total Liabilities   347,281    351,518 
           
STOCKHOLDERS’ EQUITY          
Common stock   218,300    218,595 
Retained earnings and other equity   340,020    278,648 
Total stockholders’ equity   558,320    497,243 
Total Liabilities and Stockholders’ Equity  $905,601   $848,761 

 

 

 

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,
   2016  2015  2016  2015
REVENUES                    
Customer services  $411,133   $392,150   $763,869   $723,059 
COSTS AND EXPENSES                    
Cost of services provided   195,943    190,209    373,745    358,252 
Depreciation and amortization   12,350    11,245    23,990    22,026 
Sales, general and administrative   126,545    118,622    238,800    224,197 
Gain on sale of assets, net   (579)   (194)   (668)   (249)
Interest income, net   (88)   (66)   (138)   (113)
    334,171    319,816    635,729    604,113 
INCOME BEFORE INCOME TAXES   76,962    72,334    128,140    118,946 
PROVISION FOR INCOME TAXES   29,179    27,261    48,429    43,592 
NET INCOME  $47,783   $45,073   $79,711   $75,354 
                     
NET INCOME PER SHARE - BASIC AND DILUTED  $0.22   $0.21   $0.36   $0.34 
                     
Weighted average shares outstanding - basic and diluted   218,437    218,613    218,562    218,577 

 

 

 

 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

 

 

Management will hold a conference call to discuss

Second Quarter and Six Months 2016 results on

 

Wednesday, July 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 800-505-9573 domestic;

416-204-9498 international
at least 5 minutes before start time.

 

REPLAY: available through August 3, 2016

Please dial 888-203-1112/719-457-0820, Passcode: 9004116

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