Exhibit 99.1

 

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

 

 

FOR IMMEDIATE RELEASE

 

 

ROLLINS, INC. REPORTS THIRD QUARTER AND NINE MONTHS 2020 FINANCIAL RESULTS

 

·Total revenue increased 4.9% for the quarter despite pandemic hardships, with residential revenues increasing 10.6% over third quarter 2019
·Earnings Per Share of $0.24 for the third quarter 2020 impacted by $0.02 from one-time non-cash accelerated stock vesting of $6.7 million compared to Earnings Per Share of $0.13 for third quarter 2019 impacted by $26.6 million of after-tax pension settlement loss
·Adjusted earnings per share* of $0.26 for third quarter 2020 adjusted for accelerated stock vesting and adjusted earnings per share* of $0.22 for third quarter 2019 adjusted for divesting of the pension

 

ATLANTA, GEORGIA, October 28, 2020:

Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, reported strong unaudited financial results for its third quarter and nine months ended September 30, 2020.

 

The Company recorded third quarter revenues of $583.7 million, an increase of 4.9% over the prior year’s third quarter revenue of $556.5 million. Rollins’ reported net income of $79.6 million or $0.24 per diluted share for the third quarter ended September 30, 2020, compared to $44.1 million or $0.13 per diluted share for the same period in 2019. Adjusted net income* for the third quarter ended September 30, 2020 was $86.3 million or $0.26 per diluted share, compared to adjusted net income* of $70.6 million or $0.22 per diluted share for the same quarter in 2019.

 

Rollins' revenues rose 7.6% for the first nine months of 2020 to $1.625 billion compared to $1.509 billion for the prior year.  Net income for the first nine months of 2020 was $198.2 million or $0.60 per diluted share compared to $152.6 million or $0.47 per diluted share for the same period last year.  Adjusted net income* for the nine months ended September 30, 2020 was $204.9 million or $0.63 per diluted share, compared to $179.2 million or $0.55 per diluted share for the same period last year. 

 

The Company’s profit improvement came primarily from the continuation of cost containment efforts implemented at the onset of the pandemic, Rollins ongoing routing and scheduling enhancements, and lower fuel prices. The increased spending on personal protective equipment and new health screening initiatives partly offset our cost savings initiatives.

 

With many people quarantined or working from home, we continue to see strong residential revenue growth. This has helped to offset the negative impact the pandemic has had on our commercial customers. After its launch this year, we are growing our new VitalClean sanitation services that help businesses reopen while protecting their employees and customers.

 

As announced in a press release on August 18, 2020, the Company’s Chairman of the Board, R. Randall Rollins, passed away. Per the stock compensation plan, Mr. Rollins’ restricted stock grants vesting was accelerated, resulting in a one-time non-cash expense of $6.7 million.

 

 

 

*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 of the most closely correlated GAAP measure.

   

 

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, “The loss of Randall is felt profoundly, not only by our family, his friends and me personally, but also by a multitude of Rollins’ employees and colleagues who had the privilege of knowing him during his over 70 years of contribution to the Rollins companies. He exemplified the principles of integrity, innovation and dedication instilled by our father O. Wayne Rollins”

 

Rollins, Inc. is a premier global consumer and commercial services company. Through its family of leading brands, 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 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 North America, South America, Europe, Asia, 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 may 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 continued strong residential revenue growth, and the success of the Company’s new VitalClean sanitation services and the impact such services have on the ability of the Company’s customers to reopen and protect their own employees and customers. The actual results of the Company could differ materially from those indicated by such 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; 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, 2019 and the Company’s Report on Form 10-Q filed with the Securities and Exchange Commission for the quarters ended March 31, 2020 and June 30, 2020.

 

   

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

  

At September 30, (unaudited)  2020  2019
ASSETS          
Cash and cash equivalents  $95,440   $104,362 
Trade accounts receivables, net   138,392    132,065 
Financed receivables, net   24,091    23,821 
Materials and supplies   30,386    17,500 
Other current assets   43,527    46,440 
Total Current Assets   331,836    324,188 
Equipment and property, net   186,825    197,549 
Goodwill   619,656    570,759 
Customer contracts, net   275,366    283,830 
Trademarks and tradenames, net   9,966    11,008 
Other intangible assets, net   104,610    102,657 
Operating lease, right-of-use assets   211,345    196,854 
Financed receivables, long-term, net   37,430    30,750 
Benefit plan assets   1,198    25,949 
Deferred income tax assets   2,165    —   
Other assets   25,669    21,249 
Total Assets  $1,806,066   $1,764,793 
LIABILITIES          
Accounts payable   56,393    32,932 
Accrued insurance, current   31,756    29,817 
Accrued compensation and related liabilities   88,566    78,699 
Unearned revenue   139,734    132,915 
Operating lease liabilities, current   72,197    63,952 
Current portion of long-term debt   15,625    12,500 
Other current liabilities   64,868    60,065 
Total Current Liabilities   469,139    410,880 
Accrued insurance, less current portion   36,164    34,157 
Operating lease liabilities, less current portion   140,795    133,703 
Long-term debt   154,375    313,500 
Deferred income tax liabilities   15,244    7,971 
Long-term accrued liabilities   57,633    57,685 
Total Liabilities   873,350    957,896 
STOCKHOLDERS’ EQUITY          
Common stock   327,749    327,442 
Retained earnings and other equity   604,967    479,455 
Total stockholders’ equity   932,716    806,897 
Total Liabilities and Stockholders’ Equity  $1,806,066   $1,764,793 

 

 

 

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

 

   Three Months Ended  Nine Months Ended
   September 30,  September 30,
   2020  2019  2020  2019
REVENUES            
Customer services  $583,698   $556,466   $1,624,928   $1,509,492 
COSTS AND EXPENSES                    
Cost of services provided   275,474    268,718    782,248    739,309 
Depreciation and amortization   22,404    21,690    65,926    58,505 
Sales, general and administrative   168,006    167,168    497,121    468,584 
Accelerated stock vesting expense   6,691    —      6,691    —   
Pension settlement loss   —      49,898    —      49,898 
Gain / (loss) on sale of assets, net   1,355    27    629    (406)
Interest expense, net   866    2,826    4,491    4,451 
    474,796    510,327    1,357,106    1,320,341 
INCOME BEFORE INCOME TAXES   108,902    46,139    267,822    189,151 
PROVISION FOR INCOME TAXES   29,323    2,078    69,617    36,569 
NET INCOME  $79,579   $44,061   $198,205   $152,582 
NET INCOME PER SHARE - BASIC AND DILUTED  $0.24   $0.13   $0.60   $0.47 
Weighted average shares outstanding - basic and diluted   327,754    327,459    327,733    327,490 

 

   

 

 

APPENDIX

 

Reconciliation of GAAP and non-GAAP Financial Measures

 

The Company has used the non-GAAP financial measures of adjusted net income and adjusted EPS in today's earnings release. These measures 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 net income and adjusted EPS as a measure of operating performance because it allows it to compare performance consistently over various periods without regard to the impact of the accelerated stock vesting expense and pension settlement losses.

 

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 net income and adjusted EPS with net income, the most comparable GAAP measures.

 

(unaudited in thousands except EPS )

 

   Three Months Ended  Nine Months Ended
   September 30,  September 30,
   2020  2019  Better/ (Worse)  %  2020  2019  Better/ (Worse)  %
Net Income  $79,579   $44,061   $35,518    80.6%  $198,205   $152,582   $45,623    29.9%
Accelerated Stock Vesting Expense   6,691    —      6,691    —      6,691    —      6,691    —   
Pension Settlement Loss   —      49,898    (49,898)   —      —      49,898    (49,898)   —   
Adjusted Income Taxes on Excluded Expenses   —      (23,315)   23,315    —      —      (23,315)   23,315    —   
Adjusted Net Income  $86,270   $70,644   $15,626    22.1%  $204,896   $179,165   $25,731    14.4%
Adjusted Net Income Per Share - Basic And Diluted  $0.26   $0.22   $0.04    18.2   $0.63   $0.55   $0.08    14.5 
Weighted average participating shares outstanding - basic and diluted   327,754    327,459    295    0.1    327,733    327,490    243    0.1 

 

 

 

 

(( CONFERENCE CALL ANNOUNCEMENT ((

Rollins, Inc.

(NYSE: ROL)

 

 

Management will hold a conference call to discuss

Third Quarter 2020 results on

 

Wednesday, October 28, 2020 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 877-407-9716 domestic;

201-493-6779 international

with conference ID of 13710819
at least 5 minutes before start time.

 

REPLAY: available through November 4, 2020

Please dial 844-512-2921 / 412-317-6671, Passcode 13710819

THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT

www.rollins.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, October 28, 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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