Exhibit 99.1

  For Further Information Contact
  Eddie Northen (404) 888-2242

 

 

FOR IMMEDIATE RELEASE

 

 

ROLLINS, INC. REPORTS THIRD QUARTER AND NINE MONTHS 2017 FINANCIAL RESULTS

 

Company posts 46th consecutive quarter of improved revenue and earnings

 

ATLANTA, GEORGIA, OCTOBER 25, 2017: Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, reported unaudited financial results for its third quarter and nine months ended September 30, 2017.

 

The Company recorded third quarter revenues of $450.4 million, an increase of 6.2% over the prior year’s third quarter revenue of $424.0 million. Rollins’ net income increased 3.6% to $51.4 million or $0.24 per diluted share for the third quarter ended September 30, 2017, compared to $49.7 million or $0.23 per diluted share for the same period in 2016.

 

Rollins’ revenues rose 6.0% for the first nine months of 2017 to $1.259 billion compared to $1.188 billion for the prior year. Net income for the first nine months of 2017 was $145.4 million, an increase of 12.4%, or $0.67 per diluted share compared to $129.4 million or $0.59 per diluted share for the same period last year.

 

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “We are pleased with the overall revenue results our Company reported for the third quarter and first nine months of this year. For the quarter revenue increased 6.2% and 6.0% year-to-date.

 

We were disappointed however with the impact to profitability that Hurricane Harvey had on several of the Company’s regions: Southwest and North Texas, South Central Commercial, Oklahoma, Louisiana, and Mississippi. These areas were negatively impacted by pre-hurricane preparation, flood conditions, closed branches, and our inability to service many of our customers.

 

Fortunately our people were unharmed, and where appropriate we compensated them even when they were unable to work. Our Employee Relief Fund has also been beneficial to many impacted employees. Hurricane Irma followed at the end of August with a similar effect in Florida, Georgia, Alabama, Mississippi, and Louisiana.

 

 

 

Some good news, on August 1, 2017, we completed the acquisition of Northwest Exterminating. Northwest was established in 1951 and services approximately 120,000 customers in Georgia, Tennessee, Alabama, North Carolina and South Carolina. The purchase of this outstanding company will expand our presence in the Southeast. This acquisition provides significant opportunity for both Rollins and Northwest to grow and learn from each other. We see many benefits from this combination.”

 

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 expanded presence in the Southeast and the expectation of talent and benefits from the Northwest Exterminating acquisition. 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.

 

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At September 30, (unaudited)  2017  2016
ASSETS          
Cash and cash equivalents  $113,396   $139,263 
Trade accounts receivables, net   110,325    99,113 
Financed receivables, net   17,208    15,984 
Materials and supplies   15,380    13,787 
Other current assets   26,617    31,759 
Total Current Assets   282,926    299,906 
Equipment and property, net   132,865    134,166 
Goodwill   372,924    260,154 
Customer contracts and other intangible assets, net   187,358    161,885 
Deferred income taxes, net   32,491    32,749 
Financed receivables, long-term, net   18,995    16,282 
Other assets   18,968    16,373 
Total Assets  $1,046,527   $921,515 
LIABILITIES          
Accounts payable  $36,195   $26,436 
Accrued insurance, current   27,830    26,544 
Accrued compensation and related liabilities   75,087    72,569 
Unearned revenue   118,950    110,848 
Other current liabilities   50,724    35,249 
Total Current Liabilities   308,786    271,646 
Accrued insurance, less current portion   34,014    32,443 
Accrued pension   1,759    6,320 
Long-term accrued liabilities   51,529    36,877 
Total Liabilities   396,088    347,286 
STOCKHOLDERS’ EQUITY          
Common stock   217,975    217,830 
Retained earnings and other equity   432,464    356,399 
Total stockholders’ equity   650,439    574,229 
Total Liabilities and Stockholders’ Equity  $1,046,527   $921,515 

 

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

   Three Months Ended  Nine Months Ended
   September 30,  September 30,
   2017  2016  2017  2016
REVENUES            
Customer services  $450,442   $423,994   $1,259,244   $1,187,863 
COSTS AND EXPENSES                    
Cost of services provided   218,781    205,608    612,424    579,353 
Depreciation and amortization   14,313    13,083    41,630    37,073 
Sales, general and administrative   134,932    125,407    379,753    364,207 
Gain on sale of assets, net   (66)   (52)   (179)   (720)
Interest income, net   (79)   (18)   (342)   (156)
    367,881    344,028    1,033,286    979,757 
INCOME BEFORE INCOME TAXES   82,561    79,966    225,958    208,106 
PROVISION FOR INCOME TAXES   31,131    30,315    80,569    78,744 
NET INCOME  $51,430   $49,651   $145,389   $129,362 
                     
NET INCOME PER SHARE - BASIC AND DILUTED  $0.24   $0.23   $0.67   $0.59 
                     
Weighted average shares outstanding - basic and diluted   217,988    218,039    217,987    218,386 

 

 

 

Rollins, Inc.

(NYSE: ROL)

 

 

 

 

Management will hold a conference call to discuss

Third Quarter 2017 results on

 

Wednesday, October 25, 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 877-830-2636 domestic;

785-424-1802 international
at least 5 minutes before start time.

 

REPLAY: available through November 1, 2017

Please dial 888-203-1112/719-457-0820, Passcode: 4560105

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