ATLANTA, July 23, 2014 /PRNewswire/ -- Rollins, Inc.
(NYSE:ROL), a premier global consumer and commercial services
company, today reported strong unaudited financial results for its
second quarter and six months ended June
30, 2014.
The Company recorded second quarter revenues of $369.4 million, an increase of 5.3% compared to
$350.8 million in the prior year's
second quarter. Net Income increased 13.5% to $40.9 million or $0.28 per diluted share for the second quarter
ended June 30, 2014, compared to
$36.0 million or $0.25 per diluted share for the same period in
2013.
Rollins' revenues rose 5.0% for the first six months of 2014 to
$682.7 million compared to
$650.5 million for the prior
year. Net income for the first six months of 2014 was
$66.6 million, an increase of 12.6%,
or $0.46 per diluted share compared
to $59.2 million or $0.40 per diluted share for the same period last
year.
In the second quarter, the Company repurchased 192,583 shares
under its share repurchase program and 226,012 shares have been
repurchased year-to-date. In total, 4,731,472 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 have
reported improved financial results for both the quarter and first
half of 2014. We are particularly proud of our significant
revenue to profit conversion that we achieved during this time
period. This improvement was attributable to our favorable termite
and casualty claim development and good cost control across most
expense categories. Our marketing and sales program
initiatives continue to contribute, although service demand was
disappointing."
Mr. Rollins, concluded, "Rollins, Inc. again was recognized
within our industry as North
America's largest pest control company, although we were
pleased with this achievement; however, we remain committed to
being the world's best."
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 commitment to be the world's
best pest control company and the contributions of the Company's
marketing and sales program initiatives. 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 June 30,
(unaudited)
|
2014
|
|
2013
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
101,519
|
|
$
91,597
|
Trade accounts
receivables, net
|
86,156
|
|
79,015
|
Financed receivables,
net
|
12,821
|
|
12,443
|
Materials and
supplies
|
13,136
|
|
12,117
|
Deferred income
taxes, net
|
40,781
|
|
34,299
|
Other current
assets
|
19,052
|
|
28,321
|
Total Current
Assets
|
273,465
|
|
257,792
|
Equipment and
property, net
|
94,678
|
|
84,470
|
Goodwill
|
255,515
|
|
212,004
|
Customer contracts
and other intangible assets, net
|
139,231
|
|
131,122
|
Deferred income
taxes, net
|
4,564
|
|
26,245
|
Financed receivables,
long-term, net
|
12,955
|
|
12,834
|
Prepaid
Pension
|
10,393
|
|
-
|
Other
assets
|
13,788
|
|
12,602
|
Total Assets
|
$
804,589
|
|
$
737,069
|
|
|
|
|
LIABILITIES
|
|
|
|
Accounts
payable
|
$
27,972
|
|
$
30,724
|
Accrued insurance,
current
|
24,212
|
|
26,392
|
Accrued compensation
and related liabilities
|
63,408
|
|
57,088
|
Unearned
revenue
|
105,455
|
|
100,057
|
Other current
liabilities
|
38,384
|
|
32,805
|
Total Current
Liabilities
|
259,431
|
|
247,066
|
Accrued insurance,
less current portion
|
31,340
|
|
28,575
|
Accrued
pension
|
475
|
|
42,263
|
Long-term accrued
liabilities
|
37,801
|
|
34,358
|
Total
Liabilities
|
329,047
|
|
352,262
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
Common
stock
|
145,760
|
|
146,078
|
Retained earnings and
other equity
|
329,782
|
|
238,729
|
Total stockholders'
equity
|
475,542
|
|
384,807
|
Total Liabilities
and Stockholders' Equity
|
$
804,589
|
|
$
737,069
|
|
|
|
|
ROLLINS, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(in thousands except
per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Second Quarter
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
REVENUES
|
|
|
|
|
|
|
|
Customer
services
|
$ 369,357
|
|
$ 350,798
|
|
$ 682,745
|
|
$ 650,512
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
Cost of services
provided
|
182,642
|
|
174,361
|
|
343,950
|
|
329,967
|
Depreciation and
amortization
|
10,608
|
|
9,768
|
|
20,822
|
|
19,662
|
Sales, general and
administrative
|
110,522
|
|
109,518
|
|
211,106
|
|
208,652
|
Interest
(income)/expense
|
(86)
|
|
(127)
|
|
(162)
|
|
(172)
|
|
303,686
|
|
293,520
|
|
575,716
|
|
558,109
|
INCOME BEFORE
INCOME TAXES
|
65,671
|
|
57,278
|
|
107,029
|
|
92,403
|
PROVISION FOR
INCOME TAXES
|
24,811
|
|
21,284
|
|
40,403
|
|
33,230
|
NET
INCOME
|
$ 40,860
|
|
$ 35,994
|
|
$ 66,626
|
|
$ 59,173
|
|
|
|
|
|
|
|
|
NET INCOME PER
SHARE - BASIC
|
$
0.28
|
|
$
0.25
|
|
$
0.46
|
|
$
0.40
|
NET INCOME PER
SHARE - DILUTED
|
$
0.28
|
|
$
0.25
|
|
$
0.46
|
|
$
0.40
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
145,875
|
|
146,210
|
|
145,933
|
|
146,224
|
Weighted average
shares outstanding - diluted
|
145,875
|
|
146,210
|
|
145,933
|
|
146,224
|
|
|
|
|
|
|
|
|
CONFERENCE CALL ANNOUNCEMENT
Rollins, Inc.
(NYSE: ROL)
Management will hold a conference call to
discuss
Second Quarter and Six Months 2014 results
on:
Wednesday, July 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 888-801-6504 domestic;
913-312-0639 international
at least 5 minutes before start time.
REPLAY: available through July 30, 2014
Please dial 888-203-1112/719-457-0820, Passcode:
9319923
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.