Exhibit 99.1
For Further Information Contact
Harry J. Cynkus (404) 888-2922
Eddie Northen (404) 888-2242
FOR IMMEDIATE RELEASE
ROLLINS, INC. REPORTS RECORD FIRST QUARTER 2015
FINANCIAL RESULTS
Company posts 36th consecutive quarter of improved earnings
ATLANTA, GEORGIA, April 29, 2015: Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, today reported unaudited financial results for its first quarter ended March 31, 2015.
The Company recorded first quarter revenues of $330.9 million, an increase of 5.6% over the prior year’s first quarter of $313.4 million. Net income increased 17.5% to $30.3 million or $0.14 per diluted share for the first quarter ended March 31, 2015 compared to $25.8 million or $0.12 per diluted share for the same period in 2014.
On January 27, 2015, Rollins increased its regular quarterly cash dividend to shareholders 14.3% to $0.08 per share. Additionally, in the first quarter of 2015, the Company announced it purchased 19,137 shares of the Company’s stock under its share repurchase program. In total, 5.9 million additional shares may be purchased under previously approved programs by the Board of Directors.
Commenting on the Company's results, Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “We are extremely pleased to have reported another quarter of improved revenue and profit, with all lines of our business contributing to our growth. The conversion of revenue growth to net income increase was outstanding. We are highly focused on executing our strategic business objectives. Our team is committed to taking our Company to the next level as it relates to customer growth, employee development and retention as well as shareholder value. We are off to an exciting start and the New Year presents us with many opportunities to advance these objectives.”
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 500 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 opportunities to advance the objectives of executing our strategic business objectives, customer growth, employee development and retention as well as shareholder value. 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 March 31, (unaudited) | 2015 | 2014 | ||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 93,389 | $ | 83,129 | ||||
| Trade accounts receivables, net | 76,523 | 75,307 | ||||||
| Financed receivables, net | 11,964 | 11,230 | ||||||
| Materials and supplies | 13,766 | 12,688 | ||||||
| Deferred income taxes, net | 40,749 | 39,563 | ||||||
| Other current assets | 18,840 | 19,087 | ||||||
| Total Current Assets | 255,231 | 241,004 | ||||||
| Equipment and property, net | 105,448 | 92,026 | ||||||
| Goodwill | 269,375 | 235,257 | ||||||
| Customer contracts and other intangible assets, net | 136,635 | 157,014 | ||||||
| Deferred income taxes, net | 8,912 | 4,750 | ||||||
| Financed receivables, long-term, net | 11,650 | 11,246 | ||||||
| Prepaid pension | — | 10,253 | ||||||
| Other assets | 14,011 | 14,111 | ||||||
| Total Assets | $ | 801,262 | $ | 765,661 | ||||
| LIABILITIES | ||||||||
| Accounts payable | $ | 21,426 | $ | 26,581 | ||||
| Accrued insurance, current | 24,888 | 26,654 | ||||||
| Accrued compensation and related liabilities | 60,217 | 56,544 | ||||||
| Unearned revenue | 100,104 | 98,461 | ||||||
| Other current liabilities | 37,822 | 42,262 | ||||||
| Total Current Liabilities | 244,457 | 250,502 | ||||||
| Accrued insurance, less current portion | 31,231 | 28,625 | ||||||
| Accrued pension | 26,051 | 458 | ||||||
| Long-term accrued liabilities | 32,543 | 36,310 | ||||||
| Total Liabilities | 334,282 | 315,895 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock | 218,641 | 219,035 | ||||||
| Retained earnings and other equity | 248,339 | 230,731 | ||||||
| Total stockholders’ equity | 466,980 | 449,766 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 801,262 | $ | 765,661 | ||||
| ROLLINS, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| (in thousands except per share data) | ||||||||
| (unaudited) | ||||||||
| First Quarter Ended | ||||||||
| March 31, | ||||||||
| 2015 | 2014 | |||||||
| REVENUES | ||||||||
| Customer services | $ | 330,909 | $ | 313,388 | ||||
| COSTS AND EXPENSES | ||||||||
| Cost of services provided | 168,043 | 161,308 | ||||||
| Depreciation and amortization | 10,781 | 10,214 | ||||||
| Sales, general and administrative | 105,575 | 100,832 | ||||||
| Gain on sale of assets, net | (55 | ) | (248 | ) | ||||
| Interest income, net | (47 | ) | (76 | ) | ||||
| 284,297 | 272,030 | |||||||
| INCOME BEFORE INCOME TAXES | 46,612 | 41,358 | ||||||
| PROVISION FOR INCOME TAXES | 16,331 | 15,592 | ||||||
| NET INCOME | $ | 30,281 | $ | 25,766 | ||||
| NET INCOME PER SHARE - BASIC | $ | 0.14 | $ | 0.12 | ||||
| NET INCOME PER SHARE - DILUTED | 0.14 | 0.12 | ||||||
| Weighted average shares outstanding - basic and diluted | 218,541 | 218,986 | ||||||
(( CONFERENCE CALL ANNOUNCEMENT ((
Rollins, Inc.
(NYSE: ROL)
Management will hold a conference call to discuss
First Quarter 2015 results on:
Wednesday, April 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 888-556-4997 domestic;
719-325-2329 international
at least 5 minutes before start time.
REPLAY: available through May 6, 2015
Please dial 888-203-1112/719-457-0820, Passcode: 6386676
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