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Rollins, Inc. Reports Second Quarter And Six Months 2018 Financial Results

July 25, 2018 7:31 AM

ATLANTA, July 25, 2018 /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, 2018.

The Company recorded second quarter revenues of $480.5 million, an increase of 10.8% over the prior year's second quarter revenue of $433.6 million. Rollins' net income increased 22.1% to $65.5 million or $0.30 per diluted share for the second quarter ended June 30, 2018, compared to $53.7 million or $0.25 per diluted share for the same period in 2017.

Rollins' revenues rose 9.9% for the first six months of 2018 to $889.2 million compared to $808.8 million for the prior year. Net income for the first six months of 2018 was $114.1 million or $0.52 per diluted share, an increase of 21.4%, or $0.09 per diluted share compared to $94.0 million or $0.43 per diluted share for the same period last year.

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "We are confident that our strategy of investing to improve our market share will prove to be beneficial long-term. The acquisition of Aardwolf Pestkare announced earlier this month will expand our international presence to Singapore. The addition of this terrific company in tandem with our other leading brands strengthens Rollins as the largest worldwide pest control provider."

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, Northwest Exterminating, Critter Control, Inc., The Industrial Fumigant Company, Trutech LLC., Orkin Australia, Waltham Services LLC., OPC Pest 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 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.callnorthwest.com, www.crittercontrol.com, www.indfumco.com, www.trutechinc.com, www.orkinau.com, www.allpest.com.au, www.walthamservices.com, www.opcpest.com, www.permatreat.com, www.cranepestcontrol.com, www.murraypestcontrol.com.au, www.statewidepestcontrol.com.au, www.safeguardpestcontrol.co.uk, www.aardwolfpestkare.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 confidence that our strategy of investing in improving our market share will be beneficial long-term. 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, 2017.

ROL-Fin

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At June 30, (unaudited)

2018

2017

ASSETS

Cash and cash equivalents

$ 87,885

$ 194,837

Trade accounts receivables, net

115,672

101,229

Financed receivables, net

18,359

16,834

Materials and supplies

16,098

15,507

Other current assets

50,458

33,219

Total Current Assets

288,472

361,626

Equipment and property, net

137,654

131,443

Goodwill

359,107

258,263

Customer contracts

182,522

113,826

Trademarks & Tradenames

52,323

32,376

Other intangible assets, net

11,578

10,795

Deferred income taxes, net

7,923

34,203

Financed receivables, long-term, net

26,235

19,467

Prepaid pension

18,880

-

Other assets

20,488

18,527

Total Assets

$ 1,105,182

$ 980,526

LIABILITIES

Accounts payable

$ 32,073

$ 33,777

Accrued insurance, current

28,732

27,118

Accrued compensation and related liabilities

72,558

72,013

Unearned revenue

124,784

112,973

Other current liabilities

61,084

41,216

Total Current Liabilities

319,231

287,097

Accrued insurance, less current portion

35,117

33,144

Accrued pension

39

2,132

Long-term accrued liabilities

54,984

40,691

Total Liabilities

409,371

363,064

STOCKHOLDERS' EQUITY

Common stock

218,217

217,991

Retained earnings and other equity

477,594

399,471

Total stockholders' equity

695,811

617,462

Total Liabilities and Stockholders' Equity

$ 1,105,182

$ 980,526

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,

2018

2017

2018

2017

REVENUES

Customer services

$ 480,461

$ 433,555

$ 889,203

$ 808,802

COSTS AND EXPENSES

Cost of services provided

230,772

204,480

436,915

393,643

Depreciation and amortization

16,366

13,547

33,282

27,317

Sales, general and administrative

143,379

129,667

269,866

244,821

Gain on sale of assets, net

(308)

(88)

(364)

(113)

Interest expense / (income), net

75

(190)

133

(263)

390,284

347,416

739,832

665,405

INCOME BEFORE INCOME TAXES

90,177

86,139

149,371

143,397

PROVISION FOR INCOME TAXES

24,635

32,450

35,304

49,438

NET INCOME

$ 65,542

$ 53,689

$ 114,067

$ 93,959

NET INCOME PER SHARE - BASIC AND DILUTED

$ 0.30

$ 0.25

$ 0.52

$ 0.43

Weighted average shares outstanding - basic and diluted

218,188

218,002

218,175

217,987

CONFERENCE CALL ANNOUNCEMENTRollins, Inc.(NYSE: ROL)

Management will hold a conference call to discuss Second Quarter 2018 results on

Wednesday, July 25, 2018 at:10:00 a.m. Eastern9:00 a.m. Central8:00 a.m. Mountain7:00 a.m. Pacific

TO PARTICIPATE: Please dial 877-260-1479 domestic; 334-323-0522 international at least 5 minutes before start time.

REPLAY: available through August 1, 2018Please dial 888-203-1112/719-457-0820, Passcode: 3402261THIS 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 Contact Eddie Northen (404) 888-2242

Cision View original content:http://www.prnewswire.com/news-releases/rollins-inc-reports-second-quarter-and-six-months-2018-financial-results-300686035.html

SOURCE Rollins, Inc.

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