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Rollins, Inc. Reports Record Third Quarter And Nine Months 2015 Financial Results

October 28, 2015 7:30 AM

ATLANTA, Oct. 28, 2015 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier global consumer and commercial services company, today reported unaudited financial results for its third quarter and nine months ended September 30, 2015.

The Company recorded third quarter revenues of $399.7 million, an increase of 3.9% over the prior year's third quarter of $384.9 million. Net income increased 9.5% to $45.0 million or $0.21 per diluted share for the third quarter ended September 30, 2015 compared to $41.1 million or $0.19 per diluted share for the same period in 2014.

Rollins' revenues rose 5.2% for the first nine months of 2015 to $1.123 billion compared to $1.068 billion for the prior year. Net income for the first nine months of 2015 was $120.4 million, an increase of 11.7%, or $0.55 per diluted share compared to $107.7 million or $0.49 per diluted share for the same period last year.

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "This quarter reflects a record performance in revenue and profits. Our revenue growth reflects contributions from all of our businesses. As you would expect, we are pleased with the results from our operational initiatives and their impact on customer and employee retention, as well as the bottom line."

Mr. Rollins concluded, "Our progress in the first nine months of this year has been solid and we are on target to meet our business objectives for the year. Our focus is squarely on providing a great job for our employees, excellent service to our customers and solid earnings improvement for our shareholders. We remain confident in our strategy and action plans, and are working hard to grow the business both organically and through strategic acquisitions."

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 700 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 being on target to meet its business objectives for the year; intent to provide a good job for all of its employees, great service to customers and solid earnings improvement for shareholders; and confidence in its strategy and action plans. 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 September 30, (unaudited)

2015

2014

ASSETS

Cash and cash equivalents

$ 134,310

$ 114,216

Trade accounts receivables, net

90,782

87,755

Financed receivables, net

14,211

12,867

Materials and supplies

12,964

12,526

Deferred income taxes, net

42,141

42,280

Other current assets

24,695

17,701

Total Current Assets

319,103

287,345

Equipment and property, net

115,731

101,986

Goodwill

248,792

250,540

Customer contracts and other intangible assets, net

142,640

150,286

Deferred income taxes, net

8,308

-

Financed receivables, long-term, net

14,217

12,276

Prepaid pension

-

10,533

Other assets

13,548

13,668

Total Assets

$ 862,339

$ 826,634

LIABILITIES

Accounts payable

$ 21,092

$ 26,293

Accrued insurance, current

31,192

25,024

Accrued compensation and related liabilities

74,138

72,074

Unearned revenue

105,725

104,296

Other current liabilities

32,727

40,170

Total Current Liabilities

264,874

267,857

Accrued insurance, less current portion

21,866

30,472

Accrued pension

24,538

493

Deferred income taxes, net

-

397

Long-term accrued liabilities

31,631

36,402

Total Liabilities

342,909

335,621

STOCKHOLDERS' EQUITY

Common stock

218,591

218,289

Retained earnings and other equity

300,839

272,724

Total stockholders' equity

519,430

491,013

Total Liabilities and Stockholders' Equity

$ 862,339

$ 826,634

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,

2015

2014

2015

2014

REVENUES

Customer services

$ 399,746

$ 384,870

$ 1,122,805

$ 1,067,615

COSTS AND EXPENSES

Cost of services provided

195,489

188,810

553,741

532,760

Depreciation and amortization

11,156

11,437

33,182

32,259

Sales, general and administrative

121,944

118,765

346,141

330,349

Gain on sale of assets, net

(1,255)

(86)

(1,504)

(564)

Interest (income)/expense, net

(21)

24

(134)

(138)

327,313

318,950

931,426

894,666

INCOME BEFORE INCOME TAXES

72,433

65,920

191,379

172,949

PROVISION FOR INCOME TAXES

27,387

24,799

70,979

65,202

NET INCOME

$ 45,046

$ 41,121

$ 120,400

$ 107,747

NET INCOME PER SHARE - BASIC AND DILUTED

$ 0.21

$ 0.19

$ 0.55

$ 0.49

Weighted average shares outstanding - basic and diluted

218,594

218,700

218,583

218,832

CONFERENCE CALL ANNOUNCEMENT

Rollins, Inc.

(NYSE: ROL)

Management will hold a conference call to discuss

Third Quarter and Nine Months 2015 results on

Wednesday, October 28, 2015 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 888-632-3382 domestic;

785-424-1677 international

at least 5 minutes before start time.

REPLAY: available through November 4, 2015

Please dial 888-203-1112/719-457-0820, Passcode: 212739

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 [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-third-quarter-and-nine-months-2015-financial-results-300167190.html

SOURCE Rollins, Inc.

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