Rollins, Inc. Reports Record Second Quarter And Six Months 2015 Financial Results

Company posts 37th consecutive quarter of improved earnings

ATLANTA, July 29, 2015 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier global consumer and commercial services company, today reported unaudited financial results for its second quarter and six months ended June 30, 2015.

The Company recorded second quarter revenues of $392.2 million, an increase of 6.2% over the prior year's second quarter of $369.4 million.  Net income increased 10.3% to $45.1 million or $0.21 per diluted share for the second quarter ended June 30, 2015 compared to $40.9 million or $0.19 per diluted share for the same period in 2014.

Rollins' revenues rose 5.9% for the first six months of 2015 to $723.1 million compared to $682.7 million for the prior year.  Net income for the first six months of 2015 was $75.4 million, an increase of 13.1%, or $0.34 per diluted share compared to $66.6 million or $0.30 per diluted share for the same period last year.

Commenting on the Company's results, Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "The continued revenue and profit growth that we experienced in the quarter and first half of 2015 is a testament to the success we are having with our sales and service programs.  We are committed to continuous improvement in all areas of our business.  A good example is our investment in new IT technologies which will have a tremendous ongoing impact on the improvement of our customers' service delivery and the company's growth rate.  We are on track and dedicated to achieve our financial goals for the 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 600 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.comwww.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 success of our sales and service programs; commitment to continuous improvement; impact of our investment in new IT technologies on customers' service delivery and company's growth rate; being on track and dedicated to achieve the financial goals for the 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 June 30, (unaudited)

2015


2014

ASSETS




Cash and cash equivalents

$               109,684


$                  101,519

Trade accounts receivables, net

88,267


86,156

Financed receivables, net 

14,059


12,821

Materials and supplies

14,034


13,136

Deferred income taxes, net

40,636


40,781

Other current assets

32,377


19,052

Total Current Assets

299,057


273,465

Equipment and property, net

110,375


94,678

Goodwill 

269,867


255,515

Customer contracts and other intangible assets, net

132,395


139,231

Deferred income taxes, net

8,614


4,564

Financed receivables, long-term, net

14,370


12,955

Prepaid pension

-


10,393

Other assets

14,083


13,788

    Total Assets

$               848,761


$                  804,589





LIABILITIES




Accounts payable

$                  28,550


$                    27,972

Accrued insurance, current

27,347


24,212

Accrued compensation and related liabilities

69,295


63,408

Unearned revenue

107,327


105,455

Other current liabilities

31,416


38,384

Total Current Liabilities

263,935


259,431

Accrued insurance, less current portion

28,210


31,340

Accrued pension

26,045


475

Long-term accrued liabilities

33,328


37,801

Total Liabilities

351,518


329,047





STOCKHOLDERS' EQUITY




Common stock

218,595


218,640

Retained earnings and other equity

278,648


256,902

Total stockholders' equity

497,243


475,542

Total Liabilities and Stockholders' Equity

$               848,761


$                  804,589













 

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,



2015


2014


2015


2014


REVENUES









Customer services

$   392,150


$    369,357


$  723,059


$    682,745


COSTS AND EXPENSES









Cost of services provided

190,209


182,642


358,252


343,950


Depreciation and amortization

11,245


10,608


22,026


20,822


Sales, general and administrative

118,622


110,752


224,197


211,584


Gain on sale of assets, net 

(194)


(230)


(249)


(478)


Interest income, net 

(66)


(86)


(113)


(162)



319,816


303,686


604,113


575,716


INCOME BEFORE INCOME TAXES

72,334


65,671


118,946


107,029


PROVISION FOR INCOME TAXES

27,261


24,811


43,592


40,403


NET INCOME

$     45,073


$      40,860


$    75,354


$       66,626











NET INCOME PER SHARE - BASIC AND DILUTED

$         0.21


$         0.19


$        0.34


$           0.30











Weighted average shares outstanding - basic and diluted

218,613


218,813


218,577


218,899











 


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

Management will hold a conference call to discuss
Second Quarter and Six Months 2015 results on

Wednesday, July 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 888-505-4368 domestic;
719-457-1035 international
at least 5 minutes before start time.

REPLAY: available through August 5, 2015
Please dial 888-203-1112/719-457-0820, Passcode: 3030827
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

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/rollins-inc-reports-record-second-quarter-and-six-months-2015-financial-results-300120042.html

SOURCE Rollins, Inc.