Exhibit 99.1
 
For Further Information Contact
 
Eddie Northen (404) 888-2242
 
 
FOR IMMEDIATE RELEASE
 
 
ROLLINS, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2017
RECORD FINANCIAL RESULTS
Company posts 47th consecutive quarter of improved revenues and earnings

Revenue increased 7.5% for the quarter and 6.4% for full year
Fourth quarter net income of $33.7 million, or $0.15 per diluted share
Fourth quarter net income of $45.3 million, or $0.21 per diluted share excluding significant items
Full year net income of $179.1 million, or $0.82 per diluted share
Full year net income of $190.7 million, or $0.87 per diluted share excluding significant items

ATLANTA, GEORGIA, January 24, 2018: Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, reported strong unaudited financial results for its fourth quarter and year ended December 31, 2017.

On December 22, 2017, the Tax Cuts & Jobs Act (“TCJA”) was signed into law. The fourth quarter 2017 and full year 2017 results reflect the estimated negative impact of the enactment of the TCJA, which resulted in an $11.6 million decrease in net income, ($8.0 million from transition tax on foreign earnings, $2.9 million from the revaluation of deferred tax assets, and $0.7 million from reductions in tax benefits on stock compensation). This resulted in a $0.06 per diluted share decrease in net income for the quarter and $0.05 per diluted share decrease for the year. Net income and diluted earnings per share excluding significant items are non-GAAP financial measures. Management believes these measures help investors understand the effect of these on reported results.

The Company recorded fourth quarter revenues of $414.7 million, an increase of 7.5% over the prior year’s fourth quarter revenue of $385.6 million. Rollins reported net income of $33.7 million or $0.15 per diluted share. Excluding significant items Rollins’ net income increased 19.2% to $45.3 million or $0.21 per diluted share for the fourth quarter ended December 31, 2017, compared to $38.0 million or $0.17 per diluted share for the same period in 2016.

For the full-year ended December 31, 2017, Rollins’ revenues rose 6.4% to $1.674 billion compared to $1.573 billion for the prior year. The Company reported net income of $179.1 million. Excluding significant items Rollins’ net income for the year rose 13.9% to $190.7 million, or $0.87 per diluted share, compared to net income of $167.4 million, or $0.77 per diluted share last year.






Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “We are pleased to have delivered solid financial results for the fourth quarter and for the year. These results reflect the underlying strength of our business and our initiatives that have benefited our customers, employees, and shareholders.”
 
Mr. Rollins concluded, “Our strong balance sheet has allowed us to continue to make strategic acquisitions.  Northwest Exterminating has been a great addition to our Company and we are extremely pleased with the contributions that they have made to our revenues and profits.  We look forward to all of our acquisitions having a significant role in the company going forward.”

Eddie Northen, Vice President, Chief Financial Officer and Treasurer of Rollins, Inc. stated, “For Fiscal 2018, we believe the Tax Cuts & Jobs Act will result in an all-in book tax rate for the Company in the mid 20 percent range. Our first quarter 2018 will have the additional tax benefit from share-based compensation, further reducing that quarter’s tax rate.

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., 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.orkincanada.ca, www.westernpest.com, www.callnorthwest.com, 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. These forward-looking statements include statements about the Company’s expectation that acquisitions will continue to have a significant role in the Company going forward; the expectation that the Tax Cuts and Jobs Act will result in an all-in book tax rate for the Company in the mid 20 percent range; and the expectation that the first quarter 2018 will have an additional tax benefit from share-based compensation, further reducing that quarter’s tax rate. 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 December 31, (unaudited)
 
2017
 
2016
ASSETS
 
 

 
 

Cash and cash equivalents
 
$
107,050

 
$
142,785

Trade accounts receivables, net
 
97,802

 
88,490

Financed receivables, net
 
17,263

 
15,968

Materials and supplies
 
14,983

 
13,724

Other current assets
 
25,697

 
29,204

Total Current Assets
 
262,795

 
290,171

Equipment and property, net
 
134,088

 
133,477

Goodwill
 
361,475

 
255,665

Customer contracts and other intangible assets, net
 
199,456

 
161,776

Deferred income taxes, net
 
18,420

 
41,877

Financed receivables, long-term, net
 
20,414

 
16,748

Prepaid Pension
 
17,595

 

Other assets
 
19,420

 
16,824

Total Assets
 
$
1,033,663

 
$
916,538

LIABILITIES
 
 

 
 

Accounts payable
 
$
26,161

 
$
30,284

Accrued insurance, current
 
28,018

 
26,201

Accrued compensation and related liabilities
 
73,016

 
75,839

Unearned revenue
 
109,029

 
99,820

Other current liabilities
 
58,345

 
44,847

Total Current Liabilities
 
294,569

 
276,991

Accrued insurance, less current portion
 
34,245

 
32,023

Accrued pension
 

 
2,880

Long-term accrued liabilities
 
50,925

 
36,099

Total Liabilities
 
379,739

 
347,993

STOCKHOLDERS' EQUITY
 
 

 
 

Common stock
 
217,992

 
217,792

Retained earnings and other equity
 
435,932

 
350,753

Total stockholders' equity
 
653,924

 
568,545

Total Liabilities and Stockholders' Equity
 
$
1,033,663

 
$
916,538

 


















ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
 
 
 
Three Months Ended
December 31,
 
Twelve Months Ended
December 31,
 
 
2017
 
2016
 
2017
 
2016
REVENUES
 
 

 
 

 
 

 
 

Customer services
 
$
414,713

 
$
385,614

 
$
1,673,957

 
$
1,573,477

COSTS AND EXPENSES
 
 

 
 

 
 

 
 

Cost of services provided
 
207,519

 
192,995

 
819,943

 
772,348

Depreciation and amortization
 
14,950

 
13,829

 
56,580

 
50,902

Sales, general and administrative
 
123,680

 
126,321

 
503,433

 
490,528

Gain on sale of assets, net
 
(63
)
 
(57
)
 
(242
)
 
(777
)
Interest income, net
 
83

 
(4
)
 
(259
)
 
(160
)
 
 
346,169

 
333,084

 
1,379,455

 
1,312,841

INCOME BEFORE INCOME TAXES
 
68,544

 
52,530

 
294,502

 
260,636

PROVISION FOR INCOME TAXES
 
34,809

 
14,523

 
115,378

 
93,267

NET INCOME
 
$
33,735

 
$
38,007

 
$
179,124

 
$
167,369

NET INCOME PER SHARE - BASIC AND DILUTED
 
$
0.15

 
$
0.17

 
$
0.82

 
$
0.77

Weighted average shares outstanding - basic and diluted
 
217,989

 
217,819

 
217,988

 
218,244

 













Rollins, Inc.
(NYSE: ROL)
 
 rollinslogo.jpg
 
 
Management will hold a conference call to discuss
Fourth Quarter and Twelve Months results on
 
Wednesday, January 24, 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 800-946-0708 domestic;
719-325-2402 international
at
least 5 minutes before start time.
 
REPLAY: available through January 31, 2018
Please dial 888-203-1112/719-457-0820, Passcode: 6022650
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