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Rollins, Inc. Reports First Quarter 2019 Financial Results

ATLANTA, April 24, 2019 /PRNewswire/ --

  • U.S. Weather conditions dampened first quarter results
  • Tax rate higher due to impact of certain non-deductible expenses
  • International results affected by currency headwinds
  • Enhanced employee benefits had residual cost increases

Rollins, Inc. (ROL), a premier global consumer and commercial services company, reported strong unaudited financial results for its first quarter ended March 31, 2019.

The Company recorded first quarter revenues of $429.1 million, an increase of 5.0% over the prior year's first quarter revenue of $408.7 million.  Rollins reported net income of $44.2 million or $0.14 per diluted share in the first quarter ended March 31, 2019, compared to $48.5 million or $0.15 per diluted share for the same period in 2018. 

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "We had a successful quarter even while feeling the effects of arctic weather and torrential rains in the country causing termites and other pests to remain dormant for the first quarter, however the company had improvements in both customer and employee retention. We look forward to warm weather and the spring pest season." 

"Our operations were well prepared and ready for a spring that has been delayed in many parts of the United States. Additionally, several items negatively impacted our EPS for the quarter by 1.5 cents. Mainly a higher tax rate, the strengthening U.S. dollar against foreign currency, professional services expenses related to acquisitions and enhanced employee benefit participation, affected the quarter by an average of $1M each," stated Eddie Northen, Senior VP, CFO, and Treasurer of Rollins, Inc.

 The Company continues to expect to close the acquisition of Clark Pest Control of Stockton, Inc. located in Lodi, California during the second quarter of 2019.  Closing remains subject to the receipt of regulatory clearance. Over the past month, we have completed the due diligence and met with expanded members of the Clark team and continue to be eager to bring them into our family of brands. 

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., 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.orkincanada.ca, www.westernpest.com, www.callnorthwest.com, www.crittercontrol.com, www.indfumco.com, www.trutechinc.com, www.orkinau.comwww.walthamservices.com, www.opcpest.com, www.permatreat.com, www.cranepestcontrol.com, 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 focus on achieving our 2019 plans and objectives and the expectation that the Clark Pest Control of Stockton, Inc. acquisition will close during the second quarter of 2019 subject to the receipt of regulatory clearance, including the expiration of the applicable waiting period under the Hart-Scott-Rodino Act. 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; changes in various government laws and regulations, including environmental regulations; and the impact of the U. S. Government shutdown.  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, 2018.

ROL-Fin

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At March 31, (unaudited)

2019


2018

ASSETS




Cash and cash equivalents

$               116,607


$                   84,319

Trade accounts receivables, net

104,593


96,459

Financed receivables, net 

19,258


16,979

Materials and supplies

16,572


15,885

Other current assets

32,909


27,062

Total Current Assets

289,939


240,704

Equipment and property, net

136,806


136,272

Goodwill 

370,492


364,606

Customer contracts

174,777


176,447

Other intangible assets, net

64,646


61,636

Operating lease, ROU assets

182,176


-

Financed receivables, long-term, net

26,376


22,305

Deferred income taxes, net

961


10,428

Prepaid pension

5,274


18,237

Other assets

20,625


20,061

    Total Assets

$            1,272,072


$              1,050,696

LIABILITIES




Accounts payable

27,496


30,624

Accrued insurance, current

27,940


28,462

Accrued compensation and related liabilities

58,853


64,610

Unearned revenue

123,935


117,934

Operating lease liability, current

60,454


-

Other current liabilities

54,034


57,443

Total Current Liabilities

352,712


299,073

Accrued insurance, less current portion

34,148


34,787

Operating lease liability, less current portion

121,775


-

Long-term accrued liabilities

44,313


54,073

Total Liabilities

552,948


387,933

STOCKHOLDERS' EQUITY




Common stock

327,530


327,280

Retained earnings and other equity

391,594


335,483

Total stockholders' equity

719,124


662,763

Total Liabilities and Stockholders' Equity

$            1,272,072


$              1,050,696


 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)






Three Months Ended


March 31,


2019


2018

REVENUES




Customer services

$  429,069


$   408,742

COSTS AND EXPENSES




Cost of services provided

217,258


206,143

Depreciation and amortization

16,683


16,916

Sales, general and administrative

139,530


126,487

Gain on sale of assets, net 

(181)


(56)

Interest (income)/expense, net

(274)


58


373,016


349,548

INCOME BEFORE INCOME TAXES

56,053


59,194

PROVISION FOR INCOME TAXES

11,827


10,669

NET INCOME

$    44,226


$     48,525

NET INCOME PER SHARE - BASIC AND DILUTED

$        0.14


$        0.15

Weighted average shares outstanding - basic and diluted

327,506


327,244


 

CONFERENCE CALL ANNOUNCEMENT
Rollins, Inc.
(ROL)

Management will hold a conference call to discuss
First Quarter 2019 results on

Wednesday, April 24, 2019 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 855-719-5012 domestic;
334-323-0505 international
at least 5 minutes before start time.

REPLAY: available through May 1, 2019
Please dial 888-203-1112/719-457-0820, Passcode 2305197
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



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