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Eddie Northen (404) 888-2242
FOR IMMEDIATE RELEASE
ROLLINS, INC. REPORTS FIRST QUARTER 2020 FINANCIAL RESULTS
|·||Revenue increased 13.7% for the quarter|
|·||Rollins deemed “essential service” by Department of Homeland Security|
|·||Rollins launches Orkin VitalClean™ – Powerful New Disinfectant Business|
ATLANTA, GEORGIA, April 29, 2020: Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, reported strong unaudited financial results for its first quarter ended March 31, 2020.
The Company recorded first quarter revenues of $487.9 million, an increase of 13.7% over the prior year’s first quarter revenue of $429.1 million. Rollins reported net income of $43.3 million or $0.13 per diluted share in the first quarter that ended March 31, 2020, compared to $44.2 million or $0.14 per diluted share for the same period in 2019.
In light of the global response and impact of COVID-19, Rollins, Inc. has made significant operational adjustments as a result of the changing economic situation. With pest control being deemed as an essential service by the Department of Homeland Security, the Company has been able to remain operational in every part of the world in which it operates.
The safety of our employees and customers is a prime consideration. To protect their health, we have adopted numerous safety initiatives, such as; providing personal protective equipment (PPE) for our technicians (masks, booties, gloves, coveralls, etc.). We have also complied with recommended actions to disinfect our equipment and facilities, increase social distancing, and provide contact-free services.
As announced earlier, our Orkin brand launched a new disinfectant service for businesses – VitalClean™, which uses an EPA-registered disinfectant. This material has low toxicity and is labeled for use against a wide variety of pathogens, including other known coronaviruses.
Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “It is difficult to know when the economy might rebound and the financial crisis will end; however we have taken proactive steps including but not limited to furloughs, selected pay reductions, and the reduction of non-essential expenses. In addition to our launch of VitalClean in our commercial branches, we are entering into our termite and mosquito seasons, which will provide revenue building opportunities. We are well positioned to adjust our business further if necessary, to meet the unique challenges we may face.”
Rollins, Inc. is a premier global consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, HomeTeam Pest Defense, Clark Pest Control, Orkin Canada, Western Pest Services, Northwest Exterminating, Critter Control, The Industrial Fumigant Company, Trutech, Orkin Australia, Waltham Services, OPC Pest Services, PermaTreat, Rollins UK, Aardwolf Pestkare, 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, Mexico, Central and South America, the Caribbean, the Middle East, Asia, Europe, 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.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 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 uncertainty of when the economy might rebound and the financial crisis related to the coronavirus (COVID-19) pandemic will end; the Company’s belief that the termite and mosquito seasons will provide revenue building opportunities; and the Company’s belief that it is well-positioned to adjust its business further if necessary to meet the unique challenges it may face as a result of the coronavirus (COVID-19) pandemic. 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, 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; 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, 2019.
ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|At March 31, (unaudited)||2020||2019|
|Cash and cash equivalents||$||92,582||$||116,607|
|Trade accounts receivables, net||123,166||104,593|
|Financed receivables, net||22,209||19,258|
|Materials and supplies||21,527||16,572|
|Other current assets||45,346||32,909|
|Total Current Assets||304,830||289,939|
|Equipment and property, net||194,854||136,806|
|Customer contracts, net||279,361||174,777|
|Trademarks and tradenames, net||104,863||53,934|
|Other intangible assets, net||10,314||10,712|
|Operating lease, right-of-use assets||207,975||182,176|
|Financed receivables, long-term, net||33,952||26,376|
|Benefit plan assets||15,639||—|
|Deferred income tax assets||1,961||961|
|Accrued insurance, current||30,739||27,940|
|Accrued compensation and related liabilities||68,289||58,853|
|Operating lease liabilities, current||69,094||60,454|
|Current portion of long-term debt||12,500||—|
|Other current liabilities||71,050||54,034|
|Total Current Liabilities||417,868||352,712|
|Accrued insurance, less current portion||34,921||34,148|
|Operating lease liabilities, less current portion||140,152||121,775|
|Deferred income tax liabilities||14,257||—|
|Long-term accrued liabilities||56,610||44,313|
|Retained earnings and other equity||472,604||391,594|
|Total stockholders’ equity||800,371||719,124|
|Total Liabilities and Stockholders’ Equity||$||1,771,479||$||1,272,072|
ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
|Three Months Ended|
|COSTS AND EXPENSES|
|Cost of services provided||251,152||217,258|
|Depreciation and amortization||21,597||16,683|
|Sales, general and administrative||157,862||139,530|
|Gain on sale of assets, net||(275||)||(181||)|
|Interest expense/(income), net||2,165||(274||)|
|INCOME BEFORE INCOME TAXES||55,400||56,053|
|PROVISION FOR INCOME TAXES||12,132||11,827|
|NET INCOME PER SHARE - BASIC AND DILUTED||$||0.13||$||0.14|
|Weighted average shares outstanding - basic and diluted||327,682||327,506|
(( CONFERENCE CALL ANNOUNCEMENT ((
Management will hold a conference call to discuss
First Quarter 2020 results on
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REPLAY: available through May 6, 2020
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The following information was filed by Rollins Inc (ROL) on Wednesday, April 29, 2020 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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