Exhibit 99.1

 

For Further Information Contact

Eddie Northen (404) 888-2242

 

 

 

FOR IMMEDIATE RELEASE

 

 

ROLLINS, INC. REPORTS RECORD SECOND QUARTER AND SIX MONTHS 2015 FINANCIAL RESULTS

 

Company posts 37th consecutive quarter of improved earnings

 

ATLANTA, GEORGIA, July 29, 2015: 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.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 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