Rollins, Inc. Reports First Quarter 2018 Record Financial Results
Company posts 48th consecutive quarter of improved revenues and earnings
- Revenue increased 8.9% for the quarter
- Net income up 20.5% for the quarter
- Earnings per diluted share rose 22.2% for the quarter to $0.22 from $0.18
- Rollins improved benefit plans reduced first quarter earnings by $0.01 share
ATLANTA, April 25, 2018 /PRNewswire/ -- Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, reported strong unaudited financial results for its first quarter ended March 31, 2018.
The Company recorded first quarter revenues of $408.7 million, an increase of 8.9% over the prior year's first quarter revenue of $375.2 million. Rollins' net income increased 20.5% to $48.5 million or $0.22 per diluted share for the first quarter ended March 31, 2018, compared to $40.3 million or $0.18 per diluted share for the same period in 2017.
Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "Our team is off to a good start and are executing our key initiatives that will make contributions throughout the year. We are enthused about our benefit enhancements that should improve employee retention and recruiting."
During the first quarter, the Company used part of its savings from the Tax Cuts and Jobs Act to improve employee benefits. These changes include an enhanced 401(K) match, stock grants, additional paid time off and added employee scholarships.
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, 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, 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 expectations of contributions from key initiatives throughout the year and the Company's being enthused about the recent benefits announcements to improve employee retention and recruiting. 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
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ROLLINS, INC. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
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(in thousands) |
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At March 31, (unaudited) |
2018 |
2017 |
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ASSETS |
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Cash and cash equivalents |
$ 84,319 |
$ 162,478 |
|
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Trade accounts receivables, net |
96,459 |
85,178 |
|
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Financed receivables, net |
16,979 |
15,177 |
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Materials and supplies |
15,885 |
14,736 |
|
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Other current assets |
27,062 |
28,186 |
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Total Current Assets |
240,704 |
305,755 |
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Equipment and property, net |
136,272 |
132,101 |
|
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Goodwill |
364,606 |
257,612 |
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Customer contracts |
176,447 |
115,262 |
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Other intangible assets, net |
61,636 |
43,784 |
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Deferred income taxes, net |
10,428 |
36,414 |
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Financed receivables, long-term, net |
22,305 |
16,344 |
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Prepaid pension |
18,237 |
- |
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Other assets |
20,061 |
17,593 |
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Total Assets |
$ 1,050,696 |
$ 924,865 |
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LIABILITIES |
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Accounts payable |
$ 30,624 |
$ 31,946 |
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Accrued insurance, current |
28,462 |
26,938 |
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Accrued compensation and related liabilities |
64,610 |
60,338 |
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Unearned revenue |
117,934 |
104,325 |
|
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Other current liabilities |
57,443 |
43,968 |
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Total Current Liabilities |
299,073 |
267,515 |
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Accrued insurance, less current portion |
34,787 |
32,327 |
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Accrued pension |
19 |
2,506 |
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Long-term accrued liabilities |
54,054 |
38,966 |
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Total Liabilities |
387,933 |
341,314 |
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STOCKHOLDERS' EQUITY |
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Common stock |
218,186 |
218,009 |
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Retained earnings and other equity |
444,577 |
365,542 |
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Total stockholders' equity |
662,763 |
583,551 |
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Total Liabilities and Stockholders' Equity |
$ 1,050,696 |
$ 924,865 |
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ROLLINS, INC. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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(in thousands except per share data) |
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(unaudited) |
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Three Months Ended |
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March 31, |
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2018 |
2017 |
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REVENUES |
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Customer services |
$ 408,742 |
$ 375,247 |
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COSTS AND EXPENSES |
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Cost of services provided |
206,143 |
189,163 |
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Depreciation and amortization |
16,916 |
13,771 |
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Sales, general and administrative |
126,487 |
115,154 |
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Gain on sale of assets, net |
(56) |
(26) |
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Interest income, net |
58 |
(73) |
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349,548 |
317,989 |
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INCOME BEFORE INCOME TAXES |
59,194 |
57,258 |
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PROVISION FOR INCOME TAXES |
10,669 |
16,988 |
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NET INCOME |
$ 48,525 |
$ 40,270 |
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NET INCOME PER SHARE - BASIC AND DILUTED |
$ 0.22 |
$ 0.18 |
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Weighted average shares outstanding - basic and diluted |
218,163 |
217,971 |
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CONFERENCE CALL ANNOUNCEMENT
Rollins, Inc.
(NYSE: ROL)
Management will hold a conference call to discuss
First Quarter 2018 results on
Wednesday, April 25, 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 877-260-1479 domestic;
334-323-0522 international
at least 5 minutes before start time.
REPLAY: available through May 2, 2018
Please dial 888-203-1112/719-457-0820, Passcode: 1244009
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
View original content:http://www.prnewswire.com/news-releases/rollins-inc-reports-first-quarter-2018-record-financial-results-300635860.html
SOURCE Rollins, Inc.
Released April 25, 2018