Exhibit 99.1

 

For Further Information Contact

Harry J. Cynkus (404) 888-2922

 

 

FOR IMMEDIATE RELEASE

 

 

ROLLINS, INC. REPORTS SECOND QUARTER AND SIX MONTHS 2014 FINANCIAL RESULTS

Company posts 33rd consecutive quarter of improved earnings

 

ATLANTA, GEORGIA, July 23, 2014: Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, today reported strong unaudited financial results for its second quarter and six months ended June 30, 2014.

 

The Company recorded second quarter revenues of $369.4 million, an increase of 5.3% compared to $350.8 million in the prior year’s second quarter. Net Income increased 13.5% to $40.9 million or $0.28 per diluted share for the second quarter ended June 30, 2014, compared to $36.0 million or $0.25 per diluted share for the same period in 2013.

 

Rollins’ revenues rose 5.0% for the first six months of 2014 to $682.7 million compared to $650.5 million for the prior year. Net income for the first six months of 2014 was $66.6 million, an increase of 12.6%, or $0.46 per diluted share compared to $59.2 million or $0.40 per diluted share for the same period last year.

 

In the second quarter, the Company repurchased 192,583 shares under its share repurchase program and 226,012 shares have been repurchased year-to-date. In total, 4,731,472 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 pleased to have reported improved financial results for both the quarter and first half of 2014. We are particularly proud of our significant revenue to profit conversion that we achieved during this time period. This improvement was attributable to our favorable termite and casualty claim development and good cost control across most expense categories. Our marketing and sales program initiatives continue to contribute, although service demand was disappointing.”

 

Mr. Rollins, concluded, “Rollins, Inc. again was recognized within our industry as North America’s largest pest control company, although we were pleased with this achievement; however, we remain committed to being the world’s best.”

 

 
 

Rollins Inc. is a premier global consumer and commercial services company. Through its wholly owned subsidiaries, Orkin LLC, Orkin Canada, HomeTeam Pest Defense, Western Pest Services, The Industrial Fumigant Company, Waltham Services LLC, Crane Pest Control, Trutech LLC, and Rollins Australia, the Company provides essential pest control services and protection against termite damage, rodents and insects to more than 2 million customers in the United States, Canada, Mexico, Europe, South America, Central America, the Middle East, the Caribbean, Asia, the Mediterranean, 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.westernpest.com, www.orkincanada.ca, www.indfumco.com, www.walthamservices.com, www.cranepestcontrol.com, www.trutechinc.com, www.allpest.com.au 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 commitment to be the world’s best pest control company and the contributions of the Company’s marketing and sales program initiatives. 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, 2013.

 

 
 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At June 30, (unaudited)  2014  2013
ASSETS          
Cash and cash equivalents  $101,519   $91,597 
Trade accounts receivables, net   86,156    79,015 
Financed receivables, net   12,821    12,443 
Materials and supplies   13,136    12,117 
Deferred income taxes, net   40,781    34,299 
Other current assets   19,052    28,321 
Total Current Assets   273,465    257,792 
Equipment and property, net   94,678    84,470 
Goodwill   255,515    212,004 
Customer contracts and other intangible assets, net   139,231    131,122 
Deferred income taxes, net   4,564    26,245 
Financed receivables, long-term, net   12,955    12,834 
Prepaid Pension   10,393    —   
Other assets   13,788    12,602 
    Total Assets  $804,589   $737,069 
           
LIABILITIES          
Accounts payable  $27,972   $30,724 
Accrued insurance, current   24,212    26,392 
Accrued compensation and related liabilities   63,408    57,088 
Unearned revenue   105,455    100,057 
Other current liabilities   38,384    32,805 
Total Current Liabilities   259,431    247,066 
Accrued insurance, less current portion   31,340    28,575 
Accrued pension   475    42,263 
Long-term accrued liabilities   37,801    34,358 
Total Liabilities   329,047    352,262 
           
STOCKHOLDERS’ EQUITY          
Common stock   145,760    146,078 
Retained earnings and other equity   329,782    238,729 
Total stockholders’ equity   475,542    384,807 
Total Liabilities and Stockholders’ Equity  $804,589   $737,069 

 

 
 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

   Second Quarter Ended  Six Months Ended
   June 30,  June 30,
   2014  2013  2014  2013
REVENUES                    
Customer services  $369,357   $350,798   $682,745   $650,512 
COSTS AND EXPENSES                    
Cost of services provided   182,642    174,361    343,950    329,967 
Depreciation and amortization   10,608    9,768    20,822    19,662 
Sales, general and administrative   110,522    109,518    211,106    208,652 
Interest (income)/expense   (86)   (127)   (162)   (172)
    303,686    293,520    575,716    558,109 
INCOME BEFORE INCOME TAXES   65,671    57,278    107,029    92,403 
PROVISION FOR INCOME TAXES   24,811    21,284    40,403    33,230 
NET INCOME  $40,860   $35,994   $66,626   $59,173 
                     
NET INCOME PER SHARE - BASIC  $0.28   $0.25   $0.46   $0.40 
NET INCOME PER SHARE - DILUTED  $0.28   $0.25   $0.46   $0.40 
                     
Weighted average shares outstanding - basic   145,875    146,210    145,933    146,224 
Weighted average shares outstanding - diluted   145,875    146,210    145,933    146,224 

 

 
 

 

 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

 

Management will hold a conference call to discuss

Second Quarter and Six Months 2014 results on:

 

 

 

Wednesday, July 23, 2014 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 888-801-6504 domestic;

913-312-0639 international
at least 5 minutes before start time.

 

REPLAY: available through July 30, 2014

Please dial 888-203-1112/719-457-0820, Passcode: 9319923

THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT

www.viavid.net

Questions?

Contact Samantha Alphonso at Financial Relations Board at 212-827-3746

Or email to salphonso@mww.com