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Rollins, Inc. Reports Fourth Quarter And Full Year 2016 Record Financial Results

January 25, 2017 7:30 AM

ATLANTA, Jan. 25, 2017 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier global consumer and commercial services company, reported strong unaudited financial results for its fourth quarter and year ended December 31, 2016.

The Company recorded fourth quarter revenues of $385.6 million, an increase of 6.4% over the prior year's fourth quarter revenue of $362.5 million. Rollins' net income increased 19.7% to $38.0 million or $0.17 per diluted share for the fourth quarter ended December 31, 2016, compared to $31.7 million or $0.15 per diluted share for the same period in 2015.

For the full-year ended December 31, 2016, Rollins' revenues rose 5.9% to $1.573 billion compared to $1.485 billion for the prior year. The Company's net income for the year rose 10.0% to $167.4 million, or $0.77 per diluted share, compared to net income of $152.1 million, or $0.70 per diluted share last year.

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "The positive performance we achieved in our fourth quarter and for the full year reflects the success of our 2016 initiatives. We were especially pleased that this year we again exceeded our revenue and profit plans, and we surpassed the $1.5 billion revenue milestone. The Fourth Quarter results represent our 43rd consecutive quarter of improved revenues and earnings."

Mr. Rollins concluded, "We are excited about our Company's opportunities for 2017. The Rollins culture of continuous improvement enables us to generate aggressive plans and new programs that should provide another successful year. We are very proud of our people who made 2016 possible and who will likewise be working diligently to achieve our 2017 objectives."

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.westernpest.com, www.orkincanada.ca, 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 being excited about its opportunities for 2017; and the expectation of another successful year and the achievement of the 2017 objectives. 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 December 31, (unaudited)

2016

2015

ASSETS

Cash and cash equivalents

$ 142,785

$ 134,574

Trade accounts receivables, net

88,490

79,864

Financed receivables, net

15,968

13,830

Materials and supplies

13,724

12,801

Other current assets

29,204

28,365

Total Current Assets

290,171

269,434

Equipment and property, net

133,477

121,356

Goodwill

255,665

249,939

Customer contracts and other intangible assets, net

161,776

138,931

Deferred income taxes, net

41,877

40,665

Financed receivables, long-term, net

16,748

13,636

Other assets

16,824

14,690

Total Assets

$ 916,538

$ 848,651

LIABILITIES

Accounts payable

$ 30,284

$ 24,919

Accrued insurance, current

26,201

24,874

Accrued compensation and related liabilities

75,839

73,607

Unearned revenue

99,820

96,192

Other current liabilities

44,847

33,394

Total Current Liabilities

276,991

252,986

Accrued insurance, less current portion

32,023

30,402

Accrued pension

2,880

9,735

Long-term accrued liabilities

36,099

31,499

Total Liabilities

347,993

324,622

STOCKHOLDERS' EQUITY

Common stock

217,792

218,553

Retained earnings and other equity

350,753

305,476

Total stockholders' equity

568,545

524,029

Total Liabilities and Stockholders' Equity

$ 916,538

$ 848,651

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2016

2015

2016

2015

REVENUES

Customer services

$ 385,614

$ 362,500

$ 1,573,477

$ 1,485,305

COSTS AND EXPENSES

Cost of services provided

192,995

182,235

772,348

735,976

Depreciation and amortization

13,829

11,340

50,902

44,522

Sales, general and administrative

126,321

117,601

490,528

463,742

Gain on sale of assets, net

(57)

(449)

(777)

(1,953)

Interest income, net

(4)

(26)

(160)

(160)

333,084

310,701

1,312,841

1,242,127

INCOME BEFORE INCOME TAXES

52,530

51,799

260,636

243,178

PROVISION FOR INCOME TAXES

14,523

20,050

93,267

91,029

NET INCOME

$ 38,007

$ 31,749

$ 167,369

$ 152,149

NET INCOME PER SHARE - BASIC AND DILUTED

$ 0.17

$ 0.15

$ 0.77

$ 0.70

Weighted average shares outstanding - basic and diluted

217,819

218,585

218,244

218,583

CONFERENCE CALL ANNOUNCEMENTRollins, Inc.(NYSE: ROL)

Management will hold a conference call to discuss Fourth Quarter and Twelve Months 2016 results on

Wednesday, January 25, 2017 at:10:00 a.m. Eastern9:00 a.m. Central8:00 a.m. Mountain7:00 a.m. Pacific

TO PARTICIPATE: Please dial 800-533-7619 domestic; 785-830-1923 international at least 5 minutes before start time.

REPLAY: available through February 1, 2017Please dial 888-203-1112/719-457-0820, Passcode: 2262830THIS 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-fourth-quarter-and-full-year-2016-record-financial-results-300395889.html

SOURCE Rollins, Inc.

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