Rollins, Inc. Reports First Quarter 2014 Financial Results

Company posts 32nd consecutive quarter of improved earnings

Apr 23, 2014, 07:30 ET from Rollins, Inc.

ATLANTA, April 23, 2014 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL), a premier global consumer and commercial services company, today reported unaudited financial results for its first quarter ended March 31, 2014. Revenues grew 4.6% to $313.4 million compared to $299.7 million for the first quarter ended March 31, 2013.

The Company recorded net income of $25.8 million, an increase of 11.2%, or $0.18 per diluted share for the first quarter ended March 31, 2014 compared to $23.2 million or $0.16 per diluted share for the same period in 2013.  On January 28, 2014, Rollins also increased its regular quarterly cash dividend to shareholders 16.7% to $0.105 per share.  Also, in the first quarter of 2014, the Company announced it purchased 33,429 shares under its share repurchase program.  In total, 4,924,055 additional shares may be purchased under previously approved programs by the Board of Directors. 

Commenting on the Company's results, Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "We are pleased to report revenue and profit improvements in the first quarter of 2014 compared to first quarter 2013.  These results reflect our team's commitment to the Company's growth strategies, productivity initiatives, and other programs that are improving operating efficiencies." 

"On February 17, 2014, we completed the acquisition of Australian based Allpest, the leading independent pest control provider in Western Australia.  This acquisition is a very important milestone for our Company and further establishes our global presence in international pest management.  We believe this Australian platform provides our company a meaningful opportunity for longer term growth.  We look forward to working with Allpest and their talented employees, while sharing each other's best practices."  

Rollins Inc. is a premier global consumer and commercial services company. Through its wholly owned subsidiaries, Orkin LLC, Orkin Canada, HomeTeam Pest Defense, Western Pest Services, The Industrial Fumigant Company, Waltham Services LLC, Crane Pest Control, Trutech LLC, and Rollins Australia, the company provides essential pest control services and protection against termite damage, rodents and insects to more than 2 million customers in the United States, Canada, Mexico, Europe, South America, Central America, the Middle East, the Caribbean, Asia, the Mediterranean, Africa, Mexico and Australia from more than 500 locations.  You can learn more about our subsidiaries by visiting our web sites at www.orkin.com, www.pestdefense.com, www.westernpest.com, www.orkincanada.ca, www.indfumco.com, www.walthamservices.com, www.cranepestcontrol.com, www.trutechinc.com, www.allpest.com.au 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 STATEMENTS This 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 growth strategies, productivity initiatives, and other programs to improve operating efficiencies and the opportunity for longer term growth provided by our Australian acquisition.  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, 2013.

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At March 31, (unaudited)

2014

2013

ASSETS

Cash and cash equivalents

$                  83,129

$                    82,479

Trade accounts receivables, net

75,307

68,194

Financed receivables, net 

11,230

10,898

Materials and supplies

12,688

11,801

Deferred income taxes, net

39,563

32,839

Other current assets

19,087

18,995

Total Current Assets

241,004

225,206

Equipment and property, net

92,026

83,295

Goodwill 

235,257

212,280

Customer contracts and other intangible assets, net

157,014

136,458

Deferred income taxes, net

4,750

26,582

Financed receivables, long-term, net

11,246

11,214

Prepaid Pension

10,253

-

Other assets

14,111

12,403

    Total Assets

$               765,661

$                  707,438

LIABILITIES

Accounts payable

$                  26,581

$                    23,078

Accrued insurance, current

26,654

24,929

Accrued compensation and related liabilities

56,544

50,218

Unearned revenue

98,461

96,251

Other current liabilities

42,262

39,382

Total Current Liabilities

250,502

233,858

Accrued insurance, less current portion

28,625

31,740

Accrued pension

458

43,017

Long-term accrued liabilities

36,310

33,857

Total Liabilities

315,895

342,472

STOCKHOLDERS' EQUITY

Common stock

146,024

146,279

Retained earnings and other equity

303,742

218,687

Total stockholders' equity

449,766

364,966

Total Liabilities and Stockholders' Equity

$               765,661

$                  707,438

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

First Quarter Ended

March 31,

2014

2013

REVENUES

Customer services

$    313,388

$      299,714

COSTS AND EXPENSES

Cost of services provided

161,308

155,606

Depreciation and amortization

10,214

9,894

Sales, general and administrative

100,832

99,166

Gain on sales/impairment of assets, net

(248)

(32)

Interest (income)

(76)

(45)

272,030

264,589

INCOME BEFORE INCOME TAXES

41,358

35,125

PROVISION FOR INCOME TAXES

15,592

11,946

NET INCOME

$      25,766

$       23,179

NET INCOME PER SHARE - BASIC

$          0.18

$           0.16

NET INCOME PER SHARE - DILUTED

0.18

0.16

Weighted average shares outstanding - basic

145,991

146,238

Weighted average shares outstanding - diluted

145,991

146,238

CONFERENCE CALL ANNOUNCEMENT Rollins, Inc. (NYSE: ROL)

Management will hold a conference call to discuss
First Quarter 2014 results on:

Wednesday, April 23, 2014 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 877-941-0844 domestic;
480-629-9835 international
at least 5 minutes before start time.

REPLAY: available through April 30, 2014
Please dial 800-406-7325/303-590-3030, Passcode: 4678054
THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT
www.viavid.net

Questions?
Contact Samantha Alphonso at Financial Relations Board at 212-827-3746
Or email to salphonso@mww.com

For Further Information Contact
Harry J. Cynkus (404) 888-2922

SOURCE Rollins, Inc.



RELATED LINKS

http://www.rollins.com