Exhibit 99.1

 

For Further Information Contact

Eddie Northen (404) 888-2242

 

 

FOR IMMEDIATE RELEASE

 

 

ROLLINS, INC. REPORTS SECOND QUARTER AND SIX MONTHS

2019 FINANCIAL RESULTS

 

·Revenue increased 9.1% for the quarter and 7.2% for the full year
·Earnings Per Share of $0.20 for second quarter 2019 and second quarter 2018
·Adjusted Earnings Per Share* of $0.21 for the second quarter 2019 and $0.20 for second quarter 2018
·Completed the acquisition of Clark Pest Control of Stockton, Inc.

 

ATLANTA, GEORGIA, July 24, 2019:

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, 2019.

 

The Company recorded second quarter revenues of $524.0 million, an increase of 9.1% over the prior year’s second quarter revenue of $480.5 million. Rollins’ reported net income of $64.3 million or $0.20 per diluted share for the second quarter ended June 30, 2019, compared to $65.5 million or $0.20 per diluted share for the same period in 2018.

 

Rollins’ adjusted earnings per share (EPS)* removing several costs and expenses increased $0.01 for the quarter totaling $0.21 per diluted share. Adjusted EPS* impacts net income for the negative impact of foreign currency exchange expenses and acquisition expense related to the Clark acquisition.

 

Rollins’ revenues rose 7.2% for the first six months of 2019 to $953.0 million compared to $889.2 million for the prior year. Net income for the first six months of 2019 was $108.5 million or $0.33 per diluted share, compared to $114.1 million or $0.35 per diluted share for the same period last year.

 

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “We continue to make investments in our company and are confident that these strategies and action plans will enable us to improve our margins and market share, and grow at a faster pace than our industry.”

 

 

*“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 to the most closely correlated GAAP measure.

 

 

 

On April 30, we completed the acquisition of Clark Pest Control of Stockton, Inc. The company operates in 26 locations and offers both residential and commercial pest control throughout California and northwestern Nevada.

 

Rollins, Inc. is a premier global consumer and commercial services company. Through its wholly owned subsidiaries, Orkin LLC., HomeTeam Pest Defense, Clark Pest Control, 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.clarkpest.com, www.orkincanada.ca, www.westernpest.com, www.callnorthwest.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 confidence that its investment strategies and action plans will enable it to continue to improve its margins and market share and grow at a faster pace than its industry. 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

(in thousands)

 

At June 30, (unaudited)  2019  2018
ASSETS          
Cash and cash equivalents  $98,466   $87,885 
Trade accounts receivables, net   130,696    115,672 
Financed receivables, net   21,598    18,359 
Materials and supplies   17,579    16,098 
Other current assets   51,506    50,458 
Total Current Assets   319,845    288,472 
Equipment and property, net   201,196    137,654 
Goodwill   563,075    359,107 
Customer contracts, net   283,309    182,522 
Trademarks and tradenames, net   102,986    52,323 
Other intangible assets, net   11,228    11,578 
Operating lease, ROU assets   191,183    —   
Financed receivables, long-term, net   30,611    26,235 
Prepaid pension   5,274    18,880 
Deferred income taxes, net   —      7,923 
Other assets   21,070    20,488 
    Total Assets  $1,729,777   $1,105,182 
LIABILITIES          
Accounts payable   37,644    32,073 
Accrued insurance, current   30,265    28,732 
Accrued compensation and related liabilities   77,377    72,558 
Unearned revenue   133,672    124,784 
Operating lease liabilities, current   62,195    —   
Line of credit, current   12,500    —   
Other current liabilities   60,688    61,084 
Total Current Liabilities   414,341    319,231 
Accrued insurance, less current portion   34,705    35,117 
Operating lease liabilities, less current portion   129,373    —   
Line of credit, net   335,375    —   
Long-term accrued liabilities   63,719    55,023 
Total Liabilities   977,513    409,371 
STOCKHOLDERS’ EQUITY          
Common stock   327,486    327,326 
Retained earnings and other equity   424,778    368,485 
Total stockholders’ equity   752,264    695,811 
Total Liabilities and Stockholders’ Equity  $1,729,777   $1,105,182 

 

 

 

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,
   2019  2018  2019  2018
REVENUES            
Customer services  $523,957   $480,461   $953,026   $889,203 
COSTS AND EXPENSES                    
Cost of services provided   253,333    230,772    470,591    436,915 
Depreciation and amortization   20,132    16,366    36,815    33,282 
Sales, general and administrative   161,886    143,379    301,416    269,866 
Gain on sale of assets, net   (252)   (308)   (433)   (364)
Interest expense, net   1,899    75    1,625    133 
    436,998    390,284    810,014    739,832 
INCOME BEFORE INCOME TAXES   86,959    90,177    143,012    149,371 
PROVISION FOR INCOME TAXES   22,664    24,635    34,491    35,304 
NET INCOME  $64,295   $65,542   $108,521   $114,067 
NET INCOME PER SHARE - BASIC AND DILUTED  $0.20   $0.20   $0.33   $0.35 
Weighted average shares outstanding - basic and diluted   327,506    327,282    327,506    327,263 

 

 

 

APPENDIX

 

Reconciliation of GAAP and non-GAAP Financial Measures

 

The Company has used the non-GAAP financial measure of Adjusted EPS in today’s earnings release. This measure should not be considered in isolation or as a substitute for net income or other performance measures prepared in accordance with GAAP.

 

The Company uses Adjusted EPS as a measure of operating performance because it allows us to compare performance consistently over various periods without regard to fluctuations in currency valuations and the impact of the Clark acquisition on specific line item expenses enumerated in the table below.

 

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 EPS with net income, the most comparable GAAP measure.

 

(unaudited in thousands except EPS)

 

   Three Months Ended  Six Months Ended
   June 30,  June 30,
   2019  2018  Better/
Worse
  %  2019  2018  Better/
Worse
  %
Net Income  $64,295   $65,542   $(1,247)   (1.9)%  $108,521   $114,067   $(5,546)   (4.9)%
Foreign currency exchange   2,358    1,842    516    28.0    4,108    2,965    1,143    38.5 
Clark Pest Control acquisition expense   1,888    —      1,888    —      2,560    —      2,560    —   
Adjusted Income Taxes on Excluded Expenses   (1,107)   (480)   (627)   130.6    (1,738)   (773)   (965)   124.8 
Adjusted Net Income  $67,434   $66,904   $530    0.8   $113,451   $116,259   $(2,808)   (2.4)%
Adjusted Earnings Per Share - Basic and Diluted  $0.21   $0.20   $0.01    5.0%  $0.35   $0.36   $(0.01)   (2.8)%
Weighted average participating shares outstanding - basic and diluted   327,506    327,282    (224)   (0.1)   327,506    327,263    (243)   (0.1)

 

 

 

 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

Second Quarter 2019 results on

 

Wednesday, July 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 888-208-1711 domestic;

856-344-9299 international
at least 5 minutes before start time.

 

REPLAY: available through July 31, 2019

Please dial 888-203-1112/719-457-0820, Passcode 6599376

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

 

 


The following information was filed by Rollins Inc (ROL) on Wednesday, July 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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