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Rollins, Inc. Reports Second Quarter And Six Months 2018 Financial Results

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Rollins, Inc. Reports Second Quarter And Six Months 2018 Financial Results

Company posts 49th consecutive quarter of improved revenues and earnings

- Revenue increase of 10.8% for the quarter driven by accelerated residential and commercial pest control growth

PR Newswire

ATLANTA, July 25, 2018 /PRNewswire/ -- Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, reported unaudited financial results for its second quarter and six months ended June 30, 2018.

The Company recorded second quarter revenues of $480.5 million, an increase of 10.8% over the prior year's second quarter revenue of $433.6 million.  Rollins' net income increased 22.1% to $65.5 million or $0.30 per diluted share for the second quarter ended June 30, 2018, compared to $53.7 million or $0.25 per diluted share for the same period in 2017. 

Rollins' revenues rose 9.9% for the first six months of 2018 to $889.2 million compared to $808.8 million for the prior year.  Net income for the first six months of 2018 was $114.1 million or $0.52 per diluted share, an increase of 21.4%, or $0.09 per diluted share compared to $94.0 million or $0.43 per diluted share for the same period last year. 

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "We are confident that our strategy of investing to improve our market share will prove to be beneficial long-term.  The acquisition of Aardwolf Pestkare announced earlier this month will expand our international presence to Singapore.  The addition of this terrific company in tandem with our other leading brands strengthens Rollins as the largest worldwide pest control provider."

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., Orkin Australia, Waltham Services LLC., OPC Pest Services, PermaTreat, Rollins UK, Aardwolf Pestkare, 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.comwww.crittercontrol.com, www.indfumco.com, www.trutechinc.com, www.orkinau.com, www.allpest.com.au, www.walthamservices.com, www.opcpest.com, www.permatreat.com, www.cranepestcontrol.com, www.murraypestcontrol.com.au, www.statewidepestcontrol.com.au, www.safeguardpestcontrol.co.uk, www.aardwolfpestkare.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 confidence that our strategy of investing in improving our market share will be beneficial long-term. 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, 2017.

ROL-Fin

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At June 30, (unaudited)

2018


2017

ASSETS




Cash and cash equivalents

$                  87,885


$                  194,837

Trade accounts receivables, net

115,672


101,229

Financed receivables, net 

18,359


16,834

Materials and supplies

16,098


15,507

Other current assets

50,458


33,219

Total Current Assets

288,472


361,626

Equipment and property, net

137,654


131,443

Goodwill 

359,107


258,263

Customer contracts

182,522


113,826

Trademarks & Tradenames

52,323


32,376

Other intangible assets, net

11,578


10,795

Deferred income taxes, net

7,923


34,203

Financed receivables, long-term, net

26,235


19,467

Prepaid pension

18,880


-

Other assets

20,488


18,527

    Total Assets

$            1,105,182


$                  980,526

LIABILITIES




Accounts payable

$                  32,073


$                    33,777

Accrued insurance, current

28,732


27,118

Accrued compensation and related liabilities

72,558


72,013

Unearned revenue

124,784


112,973

Other current liabilities

61,084


41,216

Total Current Liabilities

319,231


287,097

Accrued insurance, less current portion

35,117


33,144

Accrued pension

39


2,132

Long-term accrued liabilities

54,984


40,691

Total Liabilities

409,371


363,064

STOCKHOLDERS' EQUITY




Common stock

218,217


217,991

Retained earnings and other equity

477,594


399,471

Total stockholders' equity

695,811


617,462

Total Liabilities and Stockholders' Equity

$            1,105,182


$                  980,526

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)










Three Months Ended


Six Months Ended


June 30,


June 30,


2018


2017


2018


2017

REVENUES








Customer services

$  480,461


$   433,555


$    889,203


$    808,802

COSTS AND EXPENSES








Cost of services provided

230,772


204,480


436,915


393,643

Depreciation and amortization

16,366


13,547


33,282


27,317

Sales, general and administrative

143,379


129,667


269,866


244,821

Gain on sale of assets, net 

(308)


(88)


(364)


(113)

Interest expense / (income), net

75


(190)


133


(263)


390,284


347,416


739,832


665,405

INCOME BEFORE INCOME TAXES

90,177


86,139


149,371


143,397

PROVISION FOR INCOME TAXES

24,635


32,450


35,304


49,438

NET INCOME

$    65,542


$     53,689


$    114,067


$      93,959









NET INCOME PER SHARE - BASIC AND DILUTED

$        0.30


$        0.25


$          0.52


$         0.43









Weighted average shares outstanding - basic and diluted

218,188


218,002


218,175


217,987

 

CONFERENCE CALL ANNOUNCEMENT
Rollins, Inc.
(NYSE:ROL)

Management will hold a conference call to discuss
Second Quarter 2018 results on

Wednesday, July 25, 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 877-260-1479 domestic;
334-323-0522 international
at least 5 minutes before start time.

REPLAY: available through August 1, 2018
Please dial 888-203-1112/719-457-0820, Passcode: 3402261
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

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

Cision View original content:http://www.prnewswire.com/news-releases/rollins-inc-reports-second-quarter-and-six-months-2018-financial-results-300686035.html

SOURCE Rollins, Inc.

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