Exhibit 99.1
For Further Information Contact | |
Eddie Northen (404) 888-2242 |
FOR IMMEDIATE RELEASE
ROLLINS, INC. REPORTS SECOND QUARTER AND SIX MONTHS 2017 FINANCIAL RESULTS
Company posts 45th consecutive quarter of improved revenue and earnings
ATLANTA, GEORGIA, July 26, 2017: 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, 2017.
The Company recorded second quarter revenues of $433.6 million, an increase of 5.5% over the prior year’s second quarter revenue of $411.1 million. Rollins’ net income increased 12.4% to $53.7 million or $0.25 per diluted share for the second quarter ended June 30, 2017, compared to $47.8 million or $0.22 per diluted share for the same period in 2016.
Rollins’ revenues rose 5.9% for the first six months of 2017 to $808.8 million compared to $763.9 million for the prior year. Net income for the first six months of 2017 was $94.0 million, an increase of 17.9%, or $0.43 per diluted share compared to $79.7 million or $0.36 per diluted share for the same period last year.
Commenting on the Company’s financial results, Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “This quarter reflects a record performance in revenue and profits. Our revenue growth reflects contributions from all of our businesses. As you would expect, we are pleased with the results from our operational initiatives and their impact on customer and employee retention, as well as the bottom line.”
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.westernpest.com, www.orkincanada.ca, 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. 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, 2016.
ROL-Fin
ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)
At June 30, (unaudited) | 2017 | 2016 | |||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 194,837 | $ | 126,465 | |||||
Trade accounts receivables, net | 101,229 | 96,959 | |||||||
Financed receivables, net | 16,834 | 15,263 | |||||||
Materials and supplies | 15,507 | 14,635 | |||||||
Other current assets | 33,219 | 33,265 | |||||||
Total Current Assets | 361,626 | 286,587 | |||||||
Equipment and property, net | 131,443 | 133,519 | |||||||
Goodwill | 258,263 | 254,001 | |||||||
Customer contracts and other intangible assets, net | 156,997 | 164,604 | |||||||
Deferred income taxes, net | 34,203 | 34,403 | |||||||
Financed receivables, long-term, net | 19,467 | 16,617 | |||||||
Other assets | 18,527 | 15,870 | |||||||
Total Assets | $ | 980,526 | $ | 905,601 | |||||
LIABILITIES | |||||||||
Accounts payable | $ | 33,777 | $ | 27,628 | |||||
Accrued insurance, current | 27,118 | 25,636 | |||||||
Accrued compensation and related liabilities | 72,013 | 71,564 | |||||||
Unearned revenue | 112,973 | 109,733 | |||||||
Other current liabilities | 41,216 | 36,738 | |||||||
Total Current Liabilities | 287,097 | 271,299 | |||||||
Accrued insurance, less current portion | 33,144 | 31,333 | |||||||
Accrued pension | 2,132 | 9,459 | |||||||
Long-term accrued liabilities | 40,691 | 35,190 | |||||||
Total Liabilities | 363,064 | 347,281 | |||||||
STOCKHOLDERS’ EQUITY | |||||||||
Common stock | 217,991 | 218,300 | |||||||
Retained earnings and other equity | 399,471 | 340,020 | |||||||
Total stockholders’ equity | 617,462 | 558,320 | |||||||
Total Liabilities and Stockholders’ Equity | $ | 980,526 | $ | 905,601 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
REVENUES | ||||||||||||||||
Customer services | $ | 433,555 | $ | 411,133 | $ | 808,802 | $ | 763,869 | ||||||||
COSTS AND EXPENSES | ||||||||||||||||
Cost of services provided | 204,480 | 195,943 | 393,643 | 373,745 | ||||||||||||
Depreciation and amortization | 13,547 | 12,350 | 27,317 | 23,990 | ||||||||||||
Sales, general and administrative | 129,667 | 126,545 | 244,821 | 238,800 | ||||||||||||
Gain on sale of assets, net | (88 | ) | (579 | ) | (113 | ) | (668 | ) | ||||||||
Interest income, net | (190 | ) | (88 | ) | (263 | ) | (138 | ) | ||||||||
347,416 | 334,171 | 665,405 | 635,729 | |||||||||||||
INCOME BEFORE INCOME TAXES | 86,139 | 76,962 | 143,397 | 128,140 | ||||||||||||
PROVISION FOR INCOME TAXES | 32,450 | 29,179 | 49,438 | 48,429 | ||||||||||||
NET INCOME | $ | 53,689 | $ | 47,783 | $ | 93,959 | $ | 79,711 | ||||||||
NET INCOME PER SHARE - BASIC AND DILUTED | $ | 0.25 | $ | 0.22 | $ | 0.43 | $ | 0.36 | ||||||||
Weighted average shares outstanding - basic and diluted | 218,002 | 218,437 | 217,987 | 218,562 |
(( CONFERENCE CALL ANNOUNCEMENT ((
Rollins, Inc.
(NYSE: ROL)
Management will hold a conference call to discuss
Second Quarter 2017 results on
Wednesday, July 26, 2017 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 877-397-0298 domestic;
719-325-4810
international
at least 5 minutes before start time.
REPLAY: available through August 2, 2017
Please dial 888-203-1112/719-457-0820, Passcode: 4118006
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