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Rollins, Inc. Reports Second Quarter and Six Months 2016 Financial Results

July 27, 2016 7:30 AM

ATLANTA, July 27, 2016 /PRNewswire/ -- 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, 2016.

The Company recorded second quarter revenues of $411.1 million, an increase of 4.8% over the prior year's $392.2 million. Rollins' net income increased 6.0% to $47.8 million or $0.22 per diluted share for the second quarter ended June 30, 2016, compared to $45.1 million or $0.21 per diluted share for the same period in 2015.

Rollins' revenues rose 5.6% for the first six months of 2016 to $763.9 million compared to $723.1 million for the prior year. Net income for the first six months of 2016 was $79.7 million, an increase of 5.8%, or $0.36 per diluted share compared to $75.4 million or $0.34 per diluted share for the same period last year.

Additionally, in the second quarter of 2016, the Company announced it purchased 365,121 shares of the Company's stock under its share repurchase program and 419,329 shares have been repurchased year-to-date. In total, 5.5 million additional shares may be purchased under previously approved programs by the Board of Directors.

Commenting on the Company's financial results, Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "We are pleased to have reported solid financial results for both the quarter and first half of 2016. These results reflect our team's ongoing commitment to continuous improvements in all areas of our business: customer service, sales, productivity initiatives, marketing, and other programs. We completed the conversion of our new CRM and operating system (BOSS), to over 95% of the Orkin branches this quarter. Our expenses were negatively impacted this quarter by the acceleration of this roll-out."

"We're extremely proud to announce our Company's acquisition this quarter of our first operation in the United Kingdom, Safeguard Pest Control and Environmental Services. Safeguard is the largest independent pest control company in London and the surrounding Southeastern Counties. This is a significant milestone for us as we continue our strategic plan to expand our brand globally. We look forward to working with Safeguard's exceptional team and sharing each other's best practices of pest control, training, and customer service."

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, 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.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, www.murraypestcontrol.com.au, www.statewidepestcontrol.com.au, www.safeguardpestcontrol.co.uk, 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 ability to purchase 5.5 million shares under the previously approved share repurchase program, the Company's ongoing commitment to continuous improvements in all areas of our business: customer service, sales, productivity initiatives, marketing and others programs; the Company's expectation to continue its strategic plan to expand our brand globally and the Company's plans to work with Safeguard's exceptional team and sharing each other's best practices of pest control, training and customer service. 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, 2015.ROL-Fin

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At June 30, (unaudited)

2016

2015

ASSETS

Cash and cash equivalents

$ 126,465

$ 109,684

Trade accounts receivables, net

96,959

88,267

Financed receivables, net

15,263

14,059

Materials and supplies

14,635

14,034

Other current assets

33,265

32,377

Total Current Assets

286,587

258,421

Equipment and property, net

133,519

110,375

Goodwill

254,001

269,867

Customer contracts and other intangible assets, net

164,604

132,395

Deferred income taxes, net

34,403

49,250

Financed receivables, long-term, net

16,617

14,370

Other assets

15,870

14,083

Total Assets

$ 905,601

$ 848,761

LIABILITIES

Accounts payable

$ 27,628

$ 28,550

Accrued insurance, current

25,636

27,347

Accrued compensation and related liabilities

71,564

69,295

Unearned revenue

109,733

107,327

Other current liabilities

36,738

31,416

Total Current Liabilities

271,299

263,935

Accrued insurance, less current portion

31,333

28,210

Accrued pension

9,459

26,045

Long-term accrued liabilities

35,190

33,328

Total Liabilities

347,281

351,518

STOCKHOLDERS' EQUITY

Common stock

218,300

218,595

Retained earnings and other equity

340,020

278,648

Total stockholders' equity

558,320

497,243

Total Liabilities and Stockholders' Equity

$ 905,601

$ 848,761

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,

2016

2015

2016

2015

REVENUES

Customer services

$ 411,133

$ 392,150

$ 763,869

$ 723,059

COSTS AND EXPENSES

Cost of services provided

195,943

190,209

373,745

358,252

Depreciation and amortization

12,350

11,245

23,990

22,026

Sales, general and administrative

126,545

118,622

238,800

224,197

Gain on sale of assets, net

(579)

(194)

(668)

(249)

Interest income, net

(88)

(66)

(138)

(113)

334,171

319,816

635,729

604,113

INCOME BEFORE INCOME TAXES

76,962

72,334

128,140

118,946

PROVISION FOR INCOME TAXES

29,179

27,261

48,429

43,592

NET INCOME

$ 47,783

$ 45,073

$ 79,711

$ 75,354

NET INCOME PER SHARE - BASIC AND DILUTED

$ 0.22

$ 0.21

$ 0.36

$ 0.34

Weighted average shares outstanding - basic and diluted

218,437

218,613

218,562

218,577

CONFERENCE CALL ANNOUNCEMENTRollins, Inc.(NYSE: ROL)

Management will hold a conference call to discuss Second Quarter and Six Months 2016 results on

Wednesday, July 27, 2016 at:10:00 a.m. Eastern 9:00 a.m. Central8:00 a.m. Mountain7:00 a.m. Pacific

TO PARTICIPATE: Please dial 800-505-9573 domestic; 416-204-9498 international at least 5 minutes before start time.

REPLAY: available through August 3, 2016Please dial 888-203-1112/719-457-0820, Passcode: 9004116THIS 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-second-quarter-and-six-months-2016-financial-results-300304150.html

SOURCE Rollins, Inc.

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