EX-99.1 2 i21274_ex99-1.htm

Exhibit 99.1

 

For Further Information Contact

Eddie Northen, (404) 888-2242

 

FOR IMMEDIATE RELEASE

 

 

ROLLINS, INC. REPORTS FIRST QUARTER 2021 FINANCIAL RESULTS

 

  • Total Revenue increased 9.8% for the quarter; Total Revenue less Significant Acquisitions grew 7.9%
  • Residential revenues increased 14.9% for the quarter, with Termite increasing 12.2%
  • Earnings Per Share of $0.19 for the quarter included $0.05 from non-recurring property disposition gains of $31.1 million
  • Adjusted Earnings Per Share* of $0.14 for the quarter excluded property disposition gains

 

ATLANTA, GEORGIA, April 28, 2021: Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, reported strong unaudited financial results for its first quarter ended March 31, 2021.

 

The Company recorded first quarter revenues of $535.6 million, an increase of 9.8% over the prior year’s first quarter revenue of $487.9 million. Rollins’ reported net income was $92.6 million or $0.19 per diluted share for the first quarter ended March 31, 2021, compared to $43.3 million or $0.09 per diluted share for the same period in 2020. Adjusted net income* for the first quarter ended March 31, 2021 was $69.8 million or $0.14 per diluted share.

 

The Company, as planned, disposed of the majority of the properties received through the 2019 acquisition of Clark Pest Control of Stockton, Inc. The gain related to the disposition of these properties in the quarter ended March 31, 2021 was $31.1 million pre-tax.

 

Gary W. Rollins, Chairman and Chief Executive Officer of Rollins, Inc. stated, “We are extremely proud of our first quarter results and believe we are well positioned for 2021. Our employees have displayed a strong level of commitment and drive towards taking care of our customers who have shown their trust in our services throughout this pandemic. We are confident in our continued strategic growth and profitability moving forward.” 

 

Rollins, Inc. is a premier global consumer and commercial services company. Through its family of leading brands, Orkin, HomeTeam Pest Defense, Clark Pest Control, Orkin Canada, Western Pest Services, Northwest Exterminating, McCall Service, Inc., Critter Control, The Industrial Fumigant Company, Trutech, Orkin Australia, Waltham Services, OPC Services, PermaTreat, Rollins UK, Aardwolf Pestkare, Crane Pest Control and MissQuito, the Company provides essential pest control services and protection against termite damage, rodents and insects to more than two million customers in North America, South America, Europe, Asia, Africa, 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.clarkpest.com, www.orkincanada.ca, www.westernpest.com, www.callnorthwest.com, www.mccallservice.com, www.crittercontrol.com, www.indfumco.com, www.trutechinc.com, www.orkinau.com, www.walthamservices.com, www.opcpest.com, www.permatreat.com, www.safeguardpestcontrol.co.uk, www.aardwolfpestkare.com, www.cranepestcontrol.com, www.missquito.com and www.rollins.com. You can also find this and other news releases at www.rollins.com by accessing the news releases button.

 

*Adjusted amounts presented in this release are non-GAAP financial measures. See the appendix to this release for a discussion of non-GAAP financial metrics including a reconciliation of the most closely correlated GAAP measure. 

 

 

 

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS This release contains statements that may 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 belief that it is well positioned for 2021 and the Company’s confidence in its continued strategic growth and profitability moving forward. The actual results of the Company could differ materially from those indicated because of various risks and uncertainties, including without limitation, the extent and duration of the coronavirus (COVID-19) pandemic and its potential impact on the financial health of the Company’s business partners, customers, supply chains and suppliers, global economic conditions and capital and financial markets, changes in consumer behavior and demand, the potential unavailability of personnel or key facilities, modifications to the Company’s operations, and the potential implementation of regulatory actions; 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; the results of the SEC’s investigation of the Company; 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. 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, 2020.

 

ROL-Fin

 

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At March 31, (unaudited)  2021  2020
ASSETS          
Cash and cash equivalents  $117,322   $92,582 
Trade accounts receivables, net   122,445    123,166 
Financed receivables, net   22,402    22,209 
Materials and supplies   32,645    21,527 
Other current assets   39,229    45,346 
Total Current Assets   334,043    304,830 
Equipment and property, net   143,899    194,854 
Goodwill   659,795    596,067 
Customer contracts, net   297,288    279,361 
Trademarks and tradenames, net   108,761    104,863 
Other intangible assets, net   10,198    10,314 
Operating lease, right-of-use assets   252,343    207,975 
Financed receivables, long-term, net   38,105    33,952 
Benefit plan assets   1,167    15,639 
Deferred income tax assets   2,649    1,961 
Other assets   28,632    21,663 
    Total Assets  $1,876,880   $1,771,479 
LIABILITIES          
Accounts payable  $66,586   $36,844 
Accrued insurance, current   31,709    30,739 
Accrued compensation and related liabilities   78,357    68,289 
Unearned revenue   140,378    129,352 
Operating lease liabilities, current   75,822    69,094 
Current portion of long-term debt   18,750    12,500 
Other current liabilities   96,186    71,050 
Total Current Liabilities   507,788    417,868 
Accrued insurance, less current portion   36,062    34,921 
Operating lease liabilities, less current portion   178,508    140,152 
Long-term debt   96,250    307,300 
Deferred income tax liabilities   9,005    14,257 
Long-term accrued liabilities   60,332    56,610 
Total Liabilities   887,945    971,108 
STOCKHOLDERS’ EQUITY          
Common stock   492,124    491,651 
Retained earnings and other equity   496,811    308,720 
Total stockholders’ equity   988,935    800,371 
Total Liabilities and Stockholders’ Equity  $1,876,880   $1,771,479 

 

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

   Three Months Ended
   March 31,
   2021  2020
REVENUES      
Customer services  $535,554   $487,901 
COSTS AND EXPENSES          
Cost of services provided   261,552    251,152 
Depreciation and amortization   23,596    21,597 
Sales, general and administrative   162,208    157,862 
(Gains)/losses on sale of assets, net   (32,260)   (275)
Interest expense, net   606    2,165 
    415,702    432,501 
INCOME BEFORE INCOME TAXES   119,852    55,400 
PROVISION FOR INCOME TAXES   27,209    12,132 
NET INCOME  $92,643   $43,268 
NET INCOME PER SHARE - BASIC AND DILUTED  $0.19   $0.09 
Weighted average shares outstanding - basic and diluted   492,003    491,524 

 

 

 

APPENDIX

 

Reconciliation of GAAP and non-GAAP Financial Measures

 

The Company has used the non-GAAP financial measures of adjusted net income and adjusted EPS in today's earnings release. These measures should not be considered in isolation or as a substitute for net income, earnings per share or other performance measures prepared in accordance with GAAP.

 

The Company uses adjusted net income and adjusted EPS as a measure of operating performance because it allows it to compare performance consistently over various periods without regard to the impact of the property disposition gains.

 

A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.

 

Set forth below is a reconciliation of adjusted net income and adjusted EPS with net income, the most comparable GAAP measure.

 

(unaudited in thousands except EPS)

 

   Three Months Ended
   March 31,
   2021  2020  Better/ (Worse)  %
Net income  $92,643   $43,268   $49,375    114.1%
Property disposition gains   (31,058)   —      (31,058)   —   
Adjusted income taxes on excluded gains   8,165    —      8,165    —   
Adjusted net income  $69,750   $43,268   $26,482    61.2%
Adjusted net income per share - basic and diluted  $0.14   $0.09   $0.05    55.6%
Weighted average participating shares outstanding - basic and diluted   492,003    491,524    479    0.1%

 

 

 

 

(( CONFERENCE CALL ANNOUNCEMENT ((

 

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

First Quarter 2021 results on

 

Wednesday, April 28, 2021 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 877-407-9716 domestic;

201-493-6779 international

with conference ID of 13717965
at least 5 minutes before start time.

 

REPLAY: available through May 5, 2021

Please dial 844-512-2921 / 412-317-6671, Passcode 13717965

THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT

www.rollins.com

 

Questions?

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

Or email to salphonso@mww.com