Exhibit 99.1

 

For Further Information Contact

Eddie Northen (404) 888-2242

 

 

FOR IMMEDIATE RELEASE

 

 

ROLLINS, INC. REPORTS RECORD THIRD QUARTER AND NINE MONTHS 2015 FINANCIAL RESULTS

 

Company posts 38th consecutive quarter of improved earnings

 

ATLANTA, GEORGIA, October 28, 2015: Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, today reported unaudited financial results for its third quarter and nine months ended September 30, 2015.

 

The Company recorded third quarter revenues of $399.7 million, an increase of 3.9% over the prior year’s third quarter of $384.9 million. Net income increased 9.5% to $45.0 million or $0.21 per diluted share for the third quarter ended September 30, 2015 compared to $41.1 million or $0.19 per diluted share for the same period in 2014.

 

Rollins’ revenues rose 5.2% for the first nine months of 2015 to $1.123 billion compared to $1.068 billion for the prior year. Net income for the first nine months of 2015 was $120.4 million, an increase of 11.7%, or $0.55 per diluted share compared to $107.7 million or $0.49 per diluted share for the same period last year.

 

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “This quarter reflects a record performance in revenue and profits. Our revenue growth reflects contributions from all of our businesses. As you would expect, we are pleased with the results from our operational initiatives and their impact on customer and employee retention, as well as the bottom line.”

 

Mr. Rollins concluded, “Our progress in the first nine months of this year has been solid and we are on target to meet our business objectives for the year. Our focus is squarely on providing a great job for our employees, excellent service to our customers and solid earnings improvement for our shareholders. We remain confident in our strategy and action plans, and are working hard to grow the business both organically and through strategic acquisitions.”

 

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 700 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 being on target to meet its business objectives for the year; intent to provide a good job for all of its employees, great service to customers and solid earnings improvement for shareholders; and confidence in its strategy and action plans. 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 September 30, (unaudited)  2015  2014
ASSETS          
Cash and cash equivalents  $134,310   $114,216 
Trade accounts receivables, net   90,782    87,755 
Financed receivables, net   14,211    12,867 
Materials and supplies   12,964    12,526 
Deferred income taxes, net   42,141    42,280 
Other current assets   24,695    17,701 
Total Current Assets   319,103    287,345 
Equipment and property, net   115,731    101,986 
Goodwill   248,792    250,540 
Customer contracts and other intangible assets, net   142,640    150,286 
Deferred income taxes, net   8,308    —   
Financed receivables, long-term, net   14,217    12,276 
Prepaid pension   —      10,533 
Other assets   13,548    13,668 
Total Assets  $862,339   $826,634 
           
LIABILITIES          
Accounts payable  $21,092   $26,293 
Accrued insurance, current   31,192    25,024 
Accrued compensation and related liabilities   74,138    72,074 
Unearned revenue   105,725    104,296 
Other current liabilities   32,727    40,170 
Total Current Liabilities   264,874    267,857 
Accrued insurance, less current portion   21,866    30,472 
Accrued pension   24,538    493 
Deferred income taxes, net   —      397 
Long-term accrued liabilities   31,631    36,402 
Total Liabilities   342,909    335,621 
           
STOCKHOLDERS’ EQUITY          
Common stock   218,591    218,289 
Retained earnings and other equity   300,839    272,724 
Total stockholders’ equity   519,430    491,013 
Total Liabilities and Stockholders’ Equity  $862,339   $826,634 

 

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,
   2015  2014  2015  2014
REVENUES                    
Customer services  $399,746   $384,870   $1,122,805   $1,067,615 
COSTS AND EXPENSES                    
Cost of services provided   195,489    188,810    553,741    532,760 
Depreciation and amortization   11,156    11,437    33,182    32,259 
Sales, general and administrative   121,944    118,765    346,141    330,349 
Gain on sale of assets, net   (1,255)   (86)   (1,504)   (564)
Interest (income)/expense, net   (21)   24    (134)   (138)
    327,313    318,950    931,426    894,666 
INCOME BEFORE INCOME TAXES   72,433    65,920    191,379    172,949 
PROVISION FOR INCOME TAXES   27,387    24,799    70,979    65,202 
NET INCOME  $45,046   $41,121   $120,400   $107,747 
                     
NET INCOME PER SHARE - BASIC AND DILUTED  $0.21   $0.19   $0.55   $0.49 
                     
Weighted average shares outstanding - basic and diluted   218,594    218,700    218,583    218,832 

 

 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

 

 

Management will hold a conference call to discuss

Third Quarter and Nine Months 2015 results on

 

Wednesday, October 28, 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 888-632-3382 domestic;

785-424-1677 international
at least 5 minutes before start time.

 

REPLAY: available through November 4, 2015

Please dial 888-203-1112/719-457-0820, Passcode: 212739

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