PR Newswire | Jul 29, 2020 07:30AM EDT

07/29 06:30 CDT

Rollins, Inc. Reports Second Quarter And Six Months 2020 Financial Results ATLANTA, July 29, 2020

ATLANTA, July 29, 2020 /PRNewswire/ --

* Total revenue increased 5.6% for the quarter despite a worldwide economic downturn * Residential revenues increased 14.8% with multiple record setting days of new customer sales * Net Income grew 17.2% and EPS increased to $0.23

Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, reported strong unaudited financial results for its second quarter and six months ended June 30, 2020.

The Company recorded second quarter revenues of $553.3 million, an increase of 5.6% over the prior year's second quarter revenue of $524.0 million. Rollins' reported net income of $75.4 million or $0.23 per diluted share for the second quarter ended June 30, 2020, compared to $64.3 million or $0.20 per diluted share for the same period in 2019.

Going into this quarter, we were faced with the global economic downturn from COVID-19 and responded with numerous operational adjustments to address the economic challenges. These included new COVID-related procedures, modified customer service and related protocols, daily health screenings before entering shared offices, and a transition to remote work locations to reduce concentrations of personnel in offices where appropriate.

Cost containment efforts included furloughs, layoffs, elimination of non-essential travel and capital expenditures, and temporary salary reductions for upper management, among other things. These cost savings were offset by increased spending for personal protective equipment (PPE). These timely actions coupled with lower fuel prices and our routing and scheduling enhancements contributed to our profit improvement.

Our commercial customers' operations were most heavily impacted by the various governmental shelter-in-place mandates and their effect on small to medium size businesses, but the well-timed launch of our new VitalClean sanitation services helped businesses reopen and protect their employees and customers.

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "We are pleased with our leadership and their reaction to the new operational challenges we have faced as we continue to meet the needs of our customers and employees."

Rollins, Inc. is a premier global consumer and commercial services company. Through its family of leading brands, Orkin, HomeTeam Pest Defense, Clark Pest Control, Orkin Canada, Western Pest Services, Northwest Exterminating, Critter Control, The Industrial Fumigant Company, Trutech, Orkin Australia, Waltham Services, OPC Services, PermaTreat, Rollins UK, Aardwolf Pestkare, 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 North America, South America, Europe, Asia, Africa, 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.clarkpest.com,www.orkincanada.ca, www.westernpest.com, www.callnorthwest.com,www.crittercontrol.com, www.indfumco.com, www.trutechinc.com, www.orkinau.com, www.walthamservices.com, www.opcpest.com, www.permatreat.com, www.safeguardpestcontrol.co.uk, www.aardwolfpestkare.com,www.cranepestcontrol.com 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 STATEMENTSThis release contains a statement that constitutes a "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. This forward-looking statement includes a statement about the Company continuing to meet the needs of its customers and employees. 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, the extent and duration of the coronavirus (COVID-19) pandemic and its potential impact on the financial health of the Company's business partners, customers, supply chains and suppliers, global economic conditions and capital and financial markets, changes in consumer behavior and demand, the potential unavailability of personnel or key facilities, modifications to the Company's operations, and the potential implementation of regulatory actions; 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 te 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, 2019.

ROL-Fin

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

At June 30, (unaudited) 2020 2019

ASSETS

Cash and cash equivalents 134,829 $ 98,466

Trade accounts receivables, net 129,297 130,696

Financed receivables, net 23,285 21,598

Materials and supplies 34,064 17,579

Other current assets 41,626 51,506

Total Current Assets 363,101 319,845

Equipment and property, net 191,141 201,196

Goodwill 602,310 563,075

Customer contracts, net 275,782 283,309

Trademarks and tradenames, net 104,760 102,986

Other intangible assets, net 10,176 11,228

Operating lease, right-of-use assets 214,874 191,183

Financed receivables, long-term, net 38,281 30,611

Benefit plan assets 9,312 -

Prepaid pension - 5,274

Deferred income tax assets 2,105 -

Other assets 24,540 21,070

Total Assets $ 1,836,382 $ 1,729,777

LIABILITIES

Accounts payable 48,037 37,644

Accrued insurance, current 31,230 30,265

Accrued compensation and related liabilities 87,050 77,377

Unearned revenue 139,541 133,672

Operating lease liabilities, current 71,494 62,195

Current portion of long-term debt 12,500 12,500

Other current liabilities 88,321 60,688

Total Current Liabilities 478,173 414,341

Accrued insurance, less current portion 35,520 34,705

Operating lease liabilities, less current portion 144,846 129,373

Long-term debt 242,500 335,375

Deferred income tax liabilities 14,482 475

Long-term accrued liabilities 58,031 63,244

Total Liabilities 973,552 977,513

STOCKHOLDERS' EQUITY

Common stock 327,759 327,486

Retained earnings and other equity 535,071 424,778

Total stockholders' equity 862,830 752,264

Total Liabilities and Stockholders' Equity $ 1,836,382 $ 1,729,777

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)

Three Months Ended Six Months Ended

June 30, June 30,

2020 2019 2020 2019

REVENUES

Customer services $553,329 $523,957 $1,041,230 $953,026

COSTS AND EXPENSES

Cost of services provided 255,622 253,333 506,774 470,591

Depreciation and 21,925 20,132 43,522 36,815amortization

Sales, general and 171,253 161,886 329,115 301,416administrative

Gain on sale of assets, (451) (252) (726) (433)net

Interest expense, net 1,460 1,899 3,625 1,625

449,809 436,998 882,310 810,014

INCOME BEFORE INCOME 103,520 86,959 158,920 143,012TAXES

PROVISION FOR INCOME 28,162 22,664 40,294 34,491TAXES

NET INCOME $ 75,358 $ 64,295 $ 118,626 $108,521

NET INCOME PER SHARE - $ 0.23 $ 0.20 $ 0.36 $ 0.33BASIC AND DILUTED

Weighted average sharesoutstanding - basic and 327,763 327,506 327,723 327,506diluted

CONFERENCE CALL ANNOUNCEMENTRollins, Inc.(NYSE: ROL)

Management will hold a conference call to discussSecond Quarter 2020 results on

Wednesday, July 29, 2020 at:10:00 a.m. Eastern9:00 a.m. Central8:00 a.m. Mountain7:00 a.m. Pacific

TO PARTICIPATE:Please dial 877-407-9716 domestic;201-493-6779 internationalwith conference ID of 13705813at least 5 minutes before start time.

REPLAY: available through August 5, 2020Please dial 844-512-2921 / 412-317-6671, Passcode 13705813THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT

www.rollins.com

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

For Further Information Contact: Eddie Northen (404) 888-2242

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SOURCE Rollins, Inc.