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Rollins, Inc. Reports Record Second Quarter And Six Months 2015 Financial Results

July 29, 2015 7:30 AM

ATLANTA, July 29, 2015 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier global consumer and commercial services company, today reported unaudited financial results for its second quarter and six months ended June 30, 2015.

The Company recorded second quarter revenues of $392.2 million, an increase of 6.2% over the prior year's second quarter of $369.4 million. Net income increased 10.3% to $45.1 million or $0.21 per diluted share for the second quarter ended June 30, 2015 compared to $40.9 million or $0.19 per diluted share for the same period in 2014.

Rollins' revenues rose 5.9% for the first six months of 2015 to $723.1 million compared to $682.7 million for the prior year. Net income for the first six months of 2015 was $75.4 million, an increase of 13.1%, or $0.34 per diluted share compared to $66.6 million or $0.30 per diluted share for the same period last year.

Commenting on the Company's results, Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "The continued revenue and profit growth that we experienced in the quarter and first half of 2015 is a testament to the success we are having with our sales and service programs. We are committed to continuous improvement in all areas of our business. A good example is our investment in new IT technologies which will have a tremendous ongoing impact on the improvement of our customers' service delivery and the company's growth rate. We are on track and dedicated to achieve our financial goals for the year."

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, Critter Control, Inc., The Industrial Fumigant Company, TruTech LLC., Rollins Australia, Waltham Services LLC., PermaTreat, 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 600 locations. You can learn more about our subsidiaries by visiting our web sites at www.orkin.com, www.pestdefense.com, www.orkincanada.ca, www.westernpest.com, www.crittercontrol.com, www.indfumco.com, www.trutechinc.com, www.allpest.com.au, www.walthamservices.com, www.permatreat.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 STATEMENTSThis 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 success of our sales and service programs; commitment to continuous improvement; impact of our investment in new IT technologies on customers' service delivery and company's growth rate; being on track and dedicated to achieve the financial goals for the year. 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; 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, 2014.

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At June 30, (unaudited)

2015

2014

ASSETS

Cash and cash equivalents

$ 109,684

$ 101,519

Trade accounts receivables, net

88,267

86,156

Financed receivables, net

14,059

12,821

Materials and supplies

14,034

13,136

Deferred income taxes, net

40,636

40,781

Other current assets

32,377

19,052

Total Current Assets

299,057

273,465

Equipment and property, net

110,375

94,678

Goodwill

269,867

255,515

Customer contracts and other intangible assets, net

132,395

139,231

Deferred income taxes, net

8,614

4,564

Financed receivables, long-term, net

14,370

12,955

Prepaid pension

-

10,393

Other assets

14,083

13,788

Total Assets

$ 848,761

$ 804,589

LIABILITIES

Accounts payable

$ 28,550

$ 27,972

Accrued insurance, current

27,347

24,212

Accrued compensation and related liabilities

69,295

63,408

Unearned revenue

107,327

105,455

Other current liabilities

31,416

38,384

Total Current Liabilities

263,935

259,431

Accrued insurance, less current portion

28,210

31,340

Accrued pension

26,045

475

Long-term accrued liabilities

33,328

37,801

Total Liabilities

351,518

329,047

STOCKHOLDERS' EQUITY

Common stock

218,595

218,640

Retained earnings and other equity

278,648

256,902

Total stockholders' equity

497,243

475,542

Total Liabilities and Stockholders' Equity

$ 848,761

$ 804,589

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,

2015

2014

2015

2014

REVENUES

Customer services

$ 392,150

$ 369,357

$ 723,059

$ 682,745

COSTS AND EXPENSES

Cost of services provided

190,209

182,642

358,252

343,950

Depreciation and amortization

11,245

10,608

22,026

20,822

Sales, general and administrative

118,622

110,752

224,197

211,584

Gain on sale of assets, net

(194)

(230)

(249)

(478)

Interest income, net

(66)

(86)

(113)

(162)

319,816

303,686

604,113

575,716

INCOME BEFORE INCOME TAXES

72,334

65,671

118,946

107,029

PROVISION FOR INCOME TAXES

27,261

24,811

43,592

40,403

NET INCOME

$ 45,073

$ 40,860

$ 75,354

$ 66,626

NET INCOME PER SHARE - BASIC AND DILUTED

$ 0.21

$ 0.19

$ 0.34

$ 0.30

Weighted average shares outstanding - basic and diluted

218,613

218,813

218,577

218,899

CONFERENCE CALL ANNOUNCEMENTRollins, Inc.(NYSE: ROL)

Management will hold a conference call to discuss Second Quarter and Six Months 2015 results on

Wednesday, July 29, 2015 at:10:00 a.m. Eastern9:00 a.m. Central8:00 a.m. Mountain7:00 a.m. Pacific

TO PARTICIPATE: Please dial 888-505-4368 domestic; 719-457-1035 international at least 5 minutes before start time.

REPLAY: available through August 5, 2015Please dial 888-203-1112/719-457-0820, Passcode: 3030827THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET ATwww.viavid.com

Questions?Contact Samantha Alphonso at Financial Relations Board at 212-827-3746Or email to [email protected]

For Further Information ContactEddie Northen (404) 888-2242

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/rollins-inc-reports-record-second-quarter-and-six-months-2015-financial-results-300120042.html

SOURCE Rollins, Inc.

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