EX-99.1 2 e00256_ex99-1.htm

Exhibit 99.1

 

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

 

FOR IMMEDIATE RELEASE

  

ROLLINS, INC. REPORTS FIRST QUARTER 2016

FINANCIAL RESULTS

 

Company posts 40th consecutive quarter of improved revenue and earnings

 

ATLANTA, GEORGIA, April 27, 2016: Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, reported strong unaudited financial results for its first quarter ended March 31, 2016.

 

The Company recorded first quarter revenues of $352.7 million, an increase of 6.6% over the prior year’s first quarter revenue of $330.9 million. Income before income taxes rose 9.8% to $51.2 million compared to $46.6 million for the prior year’s first quarter. Rollins’ net income increased 5.4% to $31.9 million or $0.15 per diluted share for the first quarter ended March 31, 2016, compared to $30.3 million or $0.14 per diluted share for the same period in 2015. Net Income for 2016 did not include a favorable non-recurring tax adjustment present in 2015’s Net Income.

 

On January 26, 2016, Rollins increased its regular quarterly cash dividend to shareholders 25% to $0.10 per share. Additionally, in the first quarter of 2016, the Company announced it purchased 54,208 shares of the Company’s stock under its share repurchase program. In total, 5.9 million additional shares may be purchased under previously approved programs by the Board of Directors.

 

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “We are pleased to have reported solid year-over-year improvement in revenue, net income, and profit margin for the first quarter. These results reflect our team’s ongoing commitment to invest in our business through acquisitions, productivity initiatives, sales, marketing, and other programs.”

 

Mr. Rollins, concluded, “On March 1, 2016, we acquired Murray Pest Control, a leading pest control provider in South Australia that will continue our expansion in Australia since entering the country in 2014. This acquisition along with our international franchise expansion will further establish the Company’s global presence.”

 

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, www.murraypestcontrol.com.au, www.statewidepestcontrol.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 continuous commitment to invest in our business through acquisitions, productivity initiatives, and other programs and the Company’s acquisition of Murray Pest Control establishing our global presence in international pest management and providing a meaningful opportunity for longer term growth. 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.

 

 
 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

 

At March 31, (unaudited)  2016  2015
ASSETS          
Cash and cash equivalents  $131,238   $93,389 
Trade accounts receivables, net   86,012    76,523 
Financed receivables, net   13,150    11,964 
Materials and supplies   13,616    13,766 
Other current assets   26,105    18,840 
Total Current Assets   270,121    214,482 
Equipment and property, net   127,427    105,448 
Goodwill   252,618    269,375 
Customer contracts and other intangible assets, net   157,543    136,635 
Deferred income taxes, net   36,829    49,661 
Financed receivables, long-term, net   13,359    11,650 
Other assets   15,118    14,011 
    Total Assets  $873,015   $801,262 
           
LIABILITIES          
Accounts payable  $21,657   $21,426 
Accrued insurance, current   32,639    24,888 
Accrued compensation and related liabilities   63,896    60,217 
Unearned revenue   102,303    100,104 
Other current liabilities   42,373    37,822 
Total Current Liabilities   262,868    244,457 
Accrued insurance, less current portion   24,993    31,231 
Accrued pension   9,597    26,051 
Long-term accrued liabilities   33,998    32,543 
Total Liabilities   331,456    334,282 
           
STOCKHOLDERS’ EQUITY          
Common stock   218,698    218,641 
Retained earnings and other equity   322,861    248,339 
Total stockholders’ equity   541,559    466,980 
Total Liabilities and Stockholders’ Equity  $873,015   $801,262 

 

 
 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

   Three Months Ended
   March 31,
   2016  2015
REVENUES          
Customer services  $352,736   $330,909 
COSTS AND EXPENSES          
Cost of services provided   177,802    168,043 
Depreciation and amortization   11,640    10,781 
Sales, general and administrative   112,255    105,575 
Gain on sale of assets, net   (89)   (55)
Interest income, net   (50)   (47)
    301,558    284,297 
INCOME BEFORE INCOME TAXES   51,178    46,612 
PROVISION FOR INCOME TAXES   19,250    16,331 
NET INCOME  $31,928   $30,281 
           
NET INCOME PER SHARE - BASIC AND DILUTED  $0.15   $0.14 
           
Weighted average shares outstanding - basic and diluted   218,686    218,541 

 

 
 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

 

  

Management will hold a conference call to discuss

First Quarter 2016 results on

 

Wednesday, April 27, 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 800-533-9703 domestic;

785-830-1926 international
at least 5 minutes before start time.

 

REPLAY: available through May 4, 2016

Please dial 888-203-1112/719-457-0820, Passcode: 7012944

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