Rollins, Inc. Reports Fourth Quarter And Full-Year 2019 Financial Results – PRNewswire

Posted: January 29, 2020 at 12:45 pm

ATLANTA, Jan. 29, 2020 /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, 2019.

The Company recorded fourth quarter revenues of $506.0 million, an increase of 13.8% over the prior year's fourth quarter revenue of $444.6 million. Rollins reported net income of $50.8 million or $0.16 per diluted share in the fourth quarter that ended December 31, 2019, compared to $51.0 million or $0.16 per diluted share for the same period in 2018.

For the full-year ended December 31, 2019, Rollins' revenues rose 10.6% to $2.015 billion compared to $1.822 billion for the prior year. The Company reported net income of $203.3 million, or $0.62 per diluted share in 2019, compared to net income of $231.7 million, or $0.71 per diluted share in the prior year. Net income was negatively impacted in 2019 by a $49.9 million one-time expense for discontinuing the pension plan, $2.7 million in acquisition expenses related to Clark Pest Control, and foreign currency exchange rate fluctuations. Rollins' adjusted earnings per share (EPS)* removing these costs increases 2019 full year Adjusted EPS* by $0.11 to $0.73 per diluted share compared to 2018 Adjusted EPS* of $0.72 per diluted share.

Eddie Northen, Senior Vice President, Chief Financial Officer and Treasurer of Rollins, Inc. stated, "We continue to invest in innovative technology as well as seeking out strong acquisitions that fit well into the Rollins family of brands. As a result of these investments, we have experienced record amounts of amortization and depreciation that will deliver positive results for years to come."

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "The Company is well-positioned for 2020, and our team is optimistic and feels that we have plans and programs in place to achieve our desired results. As we move into a new decade, we are committed to continued improvement on all key elements of our business, for the benefit of our customers, employees and shareholders."

On January 28, 2020, Rollins increased its regular quarterly cash dividend to shareholders 14.3% to $0.12 per share. This marks the 18th consecutive year the Board has increased its dividend a minimum of 12.0% or more.

Rollins, Inc. is a premier global consumer and commercial services company. Through its wholly owned subsidiaries, Orkin, HomeTeam Pest Defense, Clark Pest Control, Orkin Canada, Western Pest Services, Northwest Exterminating, Critter Control, The Industrial Fumigant Company, Trutech, Orkin Australia, Waltham Pest Services, OPC Pest Services, PermaTreat, Crane Pest Control, Safeguard, and Aardwolf Pestkare, the Company provides essential pest control services and protection against termite damage, rodents and insects to more than two million customers inthe United States,Canada,Central America,South America, theCaribbean, theMiddle East,Asia, the Mediterranean,Europe,Africa,Mexico, andAustraliafrom more than 700 locations. You can learn more about Rollins and its subsidiaries by visiting our web sites atwww.orkin.com, http://www.pestdefense.com, http://www.clarkpest.com,www.orkincanada.ca, http://www.westernpest.com, http://www.callnorthwest.com, http://www.crittercontrol.com, http://www.indfumco.com, http://www.trutechinc.com, http://www.orkinau.com, http://www.walthamservices.com, http://www.opcpest.com, http://www.permatreat.com, http://www.safeguardpestcontrol.co.uk, http://www.aardwolfpestkare.com, http://www.cranepestcontrol.comand http://www.rollins.com. You can also find this and other news releases at http://www.rollins.comby 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 continued investment in innovative technology as well as seeking strong acquisitions; the expectation that we will deliver positive results for years to come, and the Company's belief that it is well-positioned for 2020 and has the team and plan to achieve its desired results. 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; changes in various government laws and regulations, including environmental regulations; and the impact of the U. S. Government shutdown. 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, 2018.

ROL-Fin

*"Adjusted" amounts presented in this release are non-GAAP financial measures. See the appendix to this release for a discussion of non-GAAP financial metrics, including a reconciliation to the most closely correlated GAAP measure.

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At December 31, (unaudited)

2019

2018

ASSETS

Cash and cash equivalents

$ 94,276

$ 115,485

Trade accounts receivables, net

122,766

104,016

Financed receivables, net

22,267

18,454

Materials and supplies

19,476

15,788

Other current assets

48,198

32,278

Total Current Assets

306,983

286,021

Equipment and property, net

195,533

136,885

Goodwill

572,847

368,481

Customer contracts, net

273,720

178,075

Trademarks and tradenames, net

102,539

54,140

Other intangible assets, net

10,525

11,043

Operating lease, right-of-use assets

200,727

-

Financed receivables, long-term, net

30,792

28,227

Benefit plan assets

21,565

-

Prepaid pension

-

5,274

Deferred income tax assets

-

6,915

Other assets

24,161

19,063

Total Assets

$ 1,739,392

$ 1,094,124

LIABILITIES

Accounts payable

$ 35,234

$ 27,168

Accrued insurance, current

30,441

27,709

Accrued compensation and related liabilities

81,943

77,741

Unearned revenue

122,825

116,005

Operating lease liabilities, current

66,117

-

Current portion of long-term debt

12,500

-

Other current liabilities

59,682

50,406

Total Current Liabilities

408,742

299,029

Accrued insurance, less current portion

34,920

33,867

Continued here:
Rollins, Inc. Reports Fourth Quarter And Full-Year 2019 Financial Results - PRNewswire

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