Exhibit 99.1

 

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

 

 

FOR IMMEDIATE RELEASE

 

 

ROLLINS, INC. REPORTS RECORD THIRD QUARTER AND NINE MONTHS 2016 FINANCIAL RESULTS

 

Company posts 42nd consecutive quarter of improved revenue and earnings

 

ATLANTA, GEORGIA, October 26, 2016: 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, 2016.

 

The Company recorded third quarter revenues of $424.0 million, an increase of 6.1% over the prior year’s $399.7 million. Rollins’ net income increased 10.2% to $49.7 million or $0.23 per diluted share for the third quarter ended September 30, 2016, compared to $45.0 million or $0.21 per diluted share for the same period in 2015.

 

Rollins’ revenues rose 5.8% for the first nine months of 2016 to $1.188 billion compared to $1.123 billion for the prior year. Net income for the first nine months of 2016 was $129.4 million, an increase of 7.4%, to $0.59 per diluted share compared to $120.4 million or $0.55 per diluted share for the same period last year.

 

Additionally, in the third quarter of 2016, the Company purchased 416,230 shares of the Company’s stock under its share repurchase program, 835,559 shares have been repurchased year-to-date. 5.1 million additional shares may be purchased under previous approval by the Board of Directors.

 

Commenting on the Company’s financial results, Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “We are very pleased with the financial results our Company reported for the third quarter. The strong growth we experienced across the Company reflects the positive benefits we are realizing from the investments we have made in marketing and sales training.”

 

Mr. Rollins, concluded, “Our progress in the first nine months of this year has been solid and we are optimistic about completing another successful year; one that includes gaining market share and enhanced service delivery to our customers. Our strategy and action plans have enabled us to grow our 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, 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.westernpest.com, www.orkincanada.ca, 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 ability to purchase 5.1 million shares under the previously approved share repurchase program; and the Company’s optimism about completing another successful year; one that includes gaining market share and enhanced service delivery to our customers. 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, 2015.

 

ROL-Fin

 

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At September 30, (unaudited)  2016  2015
ASSETS          
Cash and cash equivalents  $139,263   $134,310 
Trade accounts receivables, net   99,113    90,782 
Financed receivables, net   15,984    14,211 
Materials and supplies   13,787    12,964 
Other current assets   31,759    24,695 
Total Current Assets   299,906    276,962 
Equipment and property, net   134,166    115,731 
Goodwill   260,154    248,792 
Customer contracts and other intangible assets, net   161,885    142,640 
Deferred income taxes, net   32,749    50,449 
Financed receivables, long-term, net   16,282    14,217 
Other assets   16,373    13,548 
Total Assets  $921,515   $862,339 
           
LIABILITIES          
Accounts payable  $26,436   $21,092 
Accrued insurance, current   26,544    31,192 
Accrued compensation and related liabilities   72,569    74,138 
Unearned revenue   110,848    105,725 
Other current liabilities   35,249    32,727 
Total Current Liabilities   271,646    264,874 
Accrued insurance, less current portion   32,443    21,866 
Accrued pension   6,320    24,538 
Long-term accrued liabilities   36,877    31,631 
Total Liabilities   347,286    342,909 
           
STOCKHOLDERS’ EQUITY          
Common stock   217,830    218,591 
Retained earnings and other equity   356,399    300,839 
Total stockholders’ equity   574,229    519,430 
Total Liabilities and Stockholders’ Equity  $921,515   $862,339 

 

 

 

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,
   2016  2015  2016  2015
REVENUES                    
Customer services  $423,994   $399,746   $1,187,863   $1,122,805 
COSTS AND EXPENSES                    
Cost of services provided   205,608    195,489    579,353    553,741 
Depreciation and amortization   13,083    11,156    37,073    33,182 
Sales, general and administrative   125,407    121,944    364,207    346,141 
Gain on sale of assets, net   (52)   (1,255)   (720)   (1,504)
Interest income, net   (18)   (21)   (156)   (134)
    344,028    327,313    979,757    931,426 
INCOME BEFORE INCOME TAXES   79,966    72,433    208,106    191,379 
PROVISION FOR INCOME TAXES   30,315    27,387    78,744    70,979 
NET INCOME  $49,651   $45,046   $129,362   $120,400 
                     
NET INCOME PER SHARE - BASIC AND DILUTED  $0.23   $0.21   $0.59   $0.55 
                     
Weighted average shares outstanding - basic and diluted   218,039    218,594    218,386    218,583 

 

 

 

 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

 

Management will hold a conference call to discuss

Third Quarter and Nine Months 2016 results on

 

Wednesday, October 26, 2016 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 800-905-0392 domestic;

785-830-1913 international
at least 5 minutes before start time.

 

REPLAY: available through November 2, 2016

Please dial 888-203-1112/719-457-0820, Passcode: 6530216

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