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Eddie Northen (404) 888-2242
FOR IMMEDIATE RELEASE
ROLLINS, INC. REPORTS FIRST QUARTER 2019
- 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
ATLANTA, GEORGIA, April 24, 2019: Rollins, Inc. (NYSE: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 artic 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.com, www.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.
ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|At March 31, (unaudited)||2019||2018|
|Cash and cash equivalents||$||116,607||$||84,319|
|Trade accounts receivables, net||104,593||96,459|
|Financed receivables, net||19,258||16,979|
|Materials and supplies||16,572||15,885|
|Other current assets||32,909||27,062|
|Total Current Assets||289,939||240,704|
|Equipment and property, net||136,806||136,272|
|Other intangible assets, net||64,646||61,636|
|Operating lease, ROU assets||182,176||—|
|Financed receivables, long-term, net||26,376||22,305|
|Deferred income taxes, net||961||10,428|
|Accrued insurance, current||27,940||28,462|
|Accrued compensation and related liabilities||58,853||64,610|
|Operating lease liability, current||60,454||—|
|Other current liabilities||54,034||57,443|
|Total Current Liabilities||352,712||299,073|
|Accrued insurance, less current portion||34,148||34,787|
|Operating lease liability, less current portion||121,775||—|
|Long-term accrued liabilities||44,313||54,073|
|Retained earnings and other equity||391,594||335,483|
|Total stockholders’ equity||719,124||662,763|
|Total Liabilities and Stockholders’ Equity||$||1,272,072||$||1,050,696|
ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
|Three Months Ended|
|COSTS AND EXPENSES|
|Cost of services provided||217,258||206,143|
|Depreciation and amortization||16,683||16,916|
|Sales, general and administrative||139,530||126,487|
|Gain on sale of assets, net||(181||)||(56||)|
|Interest (income)/expense, net||(274||)||58|
|INCOME BEFORE INCOME TAXES||56,053||59,194|
|PROVISION FOR INCOME TAXES||11,827||10,669|
|NET INCOME PER SHARE - BASIC AND DILUTED||$||0.14||$||0.15|
|Weighted average shares outstanding - basic and diluted||327,506||327,244|
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The following information was filed by Rollins Inc (ROL) on Wednesday, April 24, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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