Rollins, Inc. Reports Fourth Quarter And Full Year 2016 Record Financial Results
Wednesday, January 25, 2017 7:30:00 AM ET
Rollins, Inc. (ROL ), a premier global consumer and commercial services company, reported strong unaudited financial results for its fourth quarter and year ended December 31, 2016.
The Company recorded fourth quarter revenues of $385.6 million, an increase of 6.4% over the prior years fourth quarter revenue of $362.5 million. Rollins net income increased 19.7% to $38.0 million or $0.17 per diluted share for the fourth quarter ended December 31, 2016, compared to $31.7 million or $0.15 per diluted share for the same period in 2015.
For the full-year ended December 31, 2016, Rollins revenues rose 5.9% to $1.573 billion compared to $1.485 billion for the prior year. The Companys net income for the year rose 10.0% to $167.4 million, or $0.77 per diluted share, compared to net income of $152.1 million, or $0.70 per diluted share last year.
Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "The positive performance we achieved in our fourth quarter and for the full year reflects the success of our 2016 initiatives. We were especially pleased that this year we again exceeded our revenue and profit plans, and we surpassed the $1.5 billion revenue milestone. The Fourth Quarter results represent our 43rd consecutive quarter of improved revenues and earnings."
Mr. Rollins concluded, "We are excited about our Companys opportunities for 2017. The Rollins culture of continuous improvement enables us to generate aggressive plans and new programs that should provide another successful year. We are very proud of our people who made 2016 possible and who will likewise be working diligently to achieve our 2017 objectives."
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, Critter Control, Inc., The Industrial Fumigant Company, Trutech LLC., Rollins Australia, Waltham Services LLC., PermaTreat, Rollins UK, 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.westernpest.com, www.orkincanada.ca, www.crittercontrol.com, www.indfumco.com, www.trutechinc.com, www.allpest.com.au, www.walthamservices.com, www.permatreat.com, www.cranepestcontrol.com, www.murraypestcontrol.com.au, www.statewidepestcontrol.com.au, www.safeguardpestcontrol.co.uk, 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 Companys being excited about its opportunities for 2017; and the expectation of another successful year and the achievement of the 2017 objectives. 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 Companys business; the degree of success of the Companys pest and termite process, and pest control selling and treatment methods; the Companys ability to identify and integrate potential acquisitions; climate and weather trends; competitive factors and pricing practices; the Companys 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 Companys Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2015.
ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
At December 31, (unaudited) 2016 2015
Cash and cash equivalents $ 142,785 $ 134,574
Trade accounts receivables, net 88,490 79,864
Financed receivables, net 15,968 13,830
Materials and supplies 13,724 12,801
Other current assets 29,204 28,365
Total Current Assets 290,171 269,434
Equipment and property, net 133,477 121,356
Goodwill 255,665 249,939
Customer contracts and other intangible assets, net 161,776 138,931
Deferred income taxes, net 41,877 40,665
Financed receivables, long-term, net 16,748 13,636
Other assets 16,824 14,690
Total Assets $ 916,538 $ 848,651
Accounts payable $ 30,284 $ 24,919
Accrued insurance, current 26,201 24,874
Accrued compensation and related liabilities 75,839 73,607
Unearned revenue 99,820 96,192
Other current liabilities 44,847 33,394
Total Current Liabilities 276,991 252,986
Accrued insurance, less current portion 32,023 30,402
Accrued pension 2,880 9,735
Long-term accrued liabilities 36,099 31,499
Total Liabilities 347,993 324,622
Common stock 217,792 218,553
Retained earnings and other equity 350,753 305,476
Total stockholders equity 568,545 524,029
Total Liabilities and Stockholders Equity $ 916,538 $ 848,651
ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2016 2015 2016 2015
Customer services $ 385,614 $ 362,500 $ 1,573,477 $ 1,485,305
COSTS AND EXPENSES
Cost of services provided 192,995 182,235 772,348 735,976
Depreciation and amortization 13,829 11,340 50,902 44,522
Sales, general and administrative 126,321 117,601 490,528 463,742
Gain on sale of assets, net (57) (449) (777) (1,953)
Interest income, net (4) (26) (160) (160)
333,084 310,701 1,312,841 1,242,127
INCOME BEFORE INCOME TAXES 52,530 51,799 260,636 243,178
PROVISION FOR INCOME TAXES 14,523 20,050 93,267 91,029
NET INCOME $ 38,007 $ 31,749 $ 167,369 $ 152,149
NET INCOME PER SHARE - BASIC AND DILUTED $ 0.17 $ 0.15 $ 0.77 $ 0.70
Weighted average shares outstanding - basic and diluted 217,819 218,585 218,244 218,583
CONFERENCE CALL ANNOUNCEMENTRollins, Inc.(ROL )
Management will hold a conference call to discuss Fourth Quarter and Twelve Months 2016 results on
Wednesday, January 25, 2017 at:10:00 a.m. Eastern9:00 a.m. Central8:00 a.m. Mountain7:00 a.m. Pacific
TO PARTICIPATE: Please dial 800-533-7619 domestic; 785-830-1923 international at least 5 minutes before start time.
REPLAY: available through February 1, 2017Please dial 888-203-1112/719-457-0820, Passcode: 2262830THIS 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 firstname.lastname@example.org
For Further Information ContactEddie Northen (404) 888-2242
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SOURCE Rollins, Inc.