Click Free Pest Control Quote
to fill in a form to obtain a free pest control quote today.
Rollins (NYSE:ROL) reported second-quarter financial results on July 26. The parent company of Orkin and other pest-management businesses posted its 45th consecutive quarter of improved revenue and earnings.
Earnings per share
Data source: Rollins Q2 2017 earnings press release.
Revenue grew 5.5% year over year to $433.6 million, including 0.6% from acquisitions and 4.9% in organic growth — Rollins’ highest Q2 organic growth in five years.
Rollins saw growth in all of its business lines, including residential pest control (up 5.9%), commercial pest control (up 5.1%), and the termite segment (up 6.1%).
The company continues to expand both domestically and internationally. On July 25, Rollins announced an agreement to acquire Northwest Exterminating Co., Inc. — the 17th-largest pest control operator in the United States with reported revenue of more than $50 million in 2016. Rollins also made moves to grow its non-U.S. business, as explained by CEO Gary Rollins during a conference call with analysts:
During the quarter, we were also pleased to have expanded Orkin’s presence internationally by adding six new franchises in Central America, South America, and Southeast Asia. These franchises are located in Nicaragua; Lima, Peru; Sao Paulo and Rio de Janeiro, Brazil; and in Jakarta, Indonesia. We now have 76 franchises located around the world, building our Orkin brand.
The Orkin man is in high demand. Image source: Rollins Inc.
Moreover, Rollins is becoming more profitable as it expands. The company’s investments in routing and scheduling technology helped gross margin improve to 52.8%, up from 52.3% in the prior-year quarter. Additionally, sales, general, and administrative expenses as a percent of revenue decreased to 29.9% from 30.8%, mainly due to lower payroll expenses. Together, these improvements helped net income before taxes rise 11.9% to $86.1 million.
All told, net income rose 12.4% to $53.7 million, and earnings per share increased 13.6% to $0.25.
As is typically the case, Rollins declined to offer financial guidance. CFO Eddie Northen did, however, note that the company remains on the hunt for value-creating acquisitions:
A large portion of our cash balance will be used for the Northwest acquisition, but by no means would this limit our ability or appetite to continue to pursue good-quality pest-control and wildlife companies like Northwest as we move forward. As you’re probably aware, we hold $175 million line of credit and a $75 million credit sub facility that we would be willing and ready to use for the right opportunity.
Northen went on to note that privately owned businesses in the U.S. and — increasingly — international markets would remain an attractive hunting ground for further deals:
For many years Rollins has been considered the acquirer of choice for many family-owned companies. We feel that we are in a great position to continue to deploy capital to get the best return for our shareholders.
Joe Tenebruso has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Rollins. The Motley Fool has a disclosure policy.
See the rest here:
Rollins, Inc. Enjoys Broad-Based Growth — The Motley Fool – Motley Fool
- Termite Spray | Termite Poison & Control Chemicals ... - March 6th, 2019
- Smithfield | Clegg's Termite and Pest Control - March 2nd, 2019
- The Best Termite Companies Near Me (with Free Estimates) - February 28th, 2019
- Pest Control Services in Indiana | Yes Pest Pros, Inc. - February 13th, 2019
- Charlotte | Clegg's Termite and Pest Control - February 12th, 2019
- Seattle Pest Control & Exterminators 206-736-7378 Guardian ... - February 3rd, 2019
- Termite Pest Control in Santa Clara County, CA - January 30th, 2019
- Ashburn, VA Exterminator, Pest Control & Termite Inspector - January 14th, 2019
- Grayson Termite & Pest Control - 109 Reviews - Pest ... - January 9th, 2019
- Bellevue Termite Exterminator - Bellevue Pest Control Pros - September 29th, 2018
- Southlake Termite Exterminator - Southlake Pest Control Pros - September 29th, 2018
- Peoria Termite Exterminator - Peoria Pest Control Pros - September 29th, 2018
- Columbus Termite Exterminator - Columbus Pest Control Pros - September 29th, 2018
- Termite Control Panama City | Termite Treatment Enterprise ... - September 29th, 2018
- 24 Best Pest Control Companies - South Plainfield NJ ... - September 19th, 2018
- How Much Does It Cost To Get Rid Of Termites? - September 16th, 2018
- Pest Control & Termite Extermination on the Delmarva Peninsula - September 6th, 2018
- Hawkeye Exterminators - Pest Control, Bed Bugs and Termite ... - May 10th, 2018
- Termites: How to Identify and Control Them | US EPA - February 5th, 2018
- Subterranean Termite Control Products - Pestmall.com - December 3rd, 2017
- Termite Control - Arrow Exterminators - November 21st, 2017
- Senate Pest Control - Senate Termite Control - November 17th, 2017
- Termite Inspection Cost - Do My Own - November 17th, 2017
- Termite Control, Extermination & Bonds by Nader's Pest Raiders - November 5th, 2017
- Termite Treatment Equipment | Shop at QSpray.com - November 5th, 2017
- Termite Control with The Termite Inspector Company - September 1st, 2017
- Su Named UF Foundation Term Professor for Outstanding Termite Research - Newswise (press release) - September 1st, 2017
- IPM Experience House Features Sentricon System - PCT Magazine - September 1st, 2017
- Termite Treatment Cost (INSPECTION & EXTERMINATION) - August 9th, 2017
- Margaret Kuo's restaurant reopens - Main Line - August 1st, 2017
- How Francis Mallmann feeds the rich and famous with food from the fire - Telegraph.co.uk - July 30th, 2017
- Tiger Termite & Pest Control | Eco-Friendly Pest Solutions - July 12th, 2017
- Intensive Pest Control Offers Free Termite Inspections in Fountain Valley and surrounding areas - Digital Journal (press release) - June 30th, 2017
- Termite-Tented Homes Targeted By Burglar - Patch.com - June 26th, 2017
- Marin Termite Control - Diamond Certified - June 23rd, 2017
- Cummings Termite & Pest - 480-994-9599 | #1 Pest Control Provider - June 23rd, 2017
- Milwaukee Pest Control Pros Redesigns Their Website - Digital Journal - June 20th, 2017
- Can't Tent for Termites - 7News - WSVN-TV - June 15th, 2017
- Fundraiser to be held Saturday for repairs to Oostanaula School Community Club - Northwest Georgia News - June 14th, 2017
- Lighthouse Point Termite Control - Termite Pest Control - June 12th, 2017
- Keller @ Large: Don't Mess With The Big Blue Bug - CBS Boston / WBZ - June 7th, 2017
- Digital Journal: A Global Digital Media Network - Digital Journal - June 6th, 2017
- Why Choose Pest Control Singapore - Good Herald - June 4th, 2017
- Man accused of burglarizing tented home skips out on arraignment - fox5sandiego.com - June 1st, 2017
- Termite Structural Damage - Heavy Damage from Termite ... - June 1st, 2017
- Termite & Bed Bugs Perspicacious Institute | Cockroach ... - June 1st, 2017
- Industry Mourns Loss of Norm Cooper - PCT Magazine - May 31st, 2017
- Pest Control Singapore Experts Are Opening a New Branch: Welcoming Perth Pest Control Australia - Digital Journal - May 31st, 2017
- Termite Tented Home in Carlsbad Broken Into - Times of San Diego - May 28th, 2017
- Escondido Man Burglarized Home During Termite Extermination: Police - Patch.com - May 27th, 2017
- Caught On Video: Burglar in gas mask breaks into tented home - CBS 8 San Diego - May 25th, 2017
- Burglar wearing respirator breaks into tented home - fox5sandiego.com - May 25th, 2017
- Note from the field: Bedbugs likely to continue biting - News Sentinel - May 25th, 2017
- Ipswich Pest Control Professionals Expands Service Area - MilTech - May 23rd, 2017
- Termite Control & Termite Treatment | Solutions Pest & Lawn - May 22nd, 2017
- Facts about Termites - A1 Exterminators - May 22nd, 2017
- Termite Control Gilbert / Chandler / Phoenix Metro | Magic ... - May 22nd, 2017
- Termite Control - PermaTreat Pest Control - May 21st, 2017
- Termite Control & Extermination - Arrow Exterminators - May 21st, 2017
- - www.PrimeTermite.com - May 20th, 2017
- Shawville school still waiting for answers on mystery bug bites ... - Ottawa Sun - May 20th, 2017
- Shawville school remains open despite bug bites - Ottawa Sun - May 19th, 2017
- Kellyanne Conway is a collaborator in the US's disgrace. Feminists must criticise her actions - The Guardian - May 17th, 2017
- Rollins, Inc. (ROL) Reaches $40.16 High on May, 11; Assembly Biosciences (ASMB) Shorts Down By 14.81% - NormanObserver.com - May 11th, 2017
- Carpenter Ants Infiltrating Greater Seattle Area Homes and commercial business buildings - MENAFN.COM - May 10th, 2017
- Bigfoot Pest Control Services Area Expands To Chicago and Surroundings - Digital Journal - May 8th, 2017
- Action Pest Management Is 30 Years Strong / iBerkshires.com - The ... - iBerkshires.com - May 8th, 2017
- Danielle Goh - The Middle Ground - May 8th, 2017
- Termite Extermination | Termite Control - May 7th, 2017
- Termite and Pest Control services - primetermite.com - May 7th, 2017
- The Weirdest Alternate Versions of the Guardians of the Galaxy - CBR (blog) - May 7th, 2017
- Police: 10 arrested after marijuana found by teacher in child's Easter egg basket - KOKH FOX25 - May 6th, 2017
- It pays to do work for the Workers' Party - The Middle Ground - May 6th, 2017
- Google Technology Is Helping Exterminators Kill Bugs Faster - BuzzFeed News - May 4th, 2017
- Self-made rebel takes on $13 billion Japan giant - Salt Lake Tribune - April 26th, 2017
- Termite Control Services Featuring The Sentricon System - April 24th, 2017
- 01 - Termite Control Overview | Mississippi State University ... - April 24th, 2017
- Home Termite Pest Control | Termite Inspections & Removal - April 24th, 2017
- 09 - Methods of Termite Control | Mississippi State ... - April 23rd, 2017
- Reviews - Los Angeles Termite Control, Los Angeles Pest Control - April 23rd, 2017
Click Free Exterminator Quote
to fill in a form to obtain a free exterminator quote today.