Rollins Inc. Announces Settlement of SEC Investigation

Rhea-AI Summary

Rollins Inc. (NYSE: ROL) announced a settlement with the U.S. SEC on April 18, 2022, resolving an investigation regarding adjustments to accruals that affected earnings per share in Q1 2016 and Q2 2017. The company will pay an $8 million civil penalty, already accrued in its 2021 financial statements. Elizabeth Chandler, the Vice President, noted that Rollins has since strengthened its internal financial controls. Importantly, there will be no restatement of past financial results, and individuals responsible during the relevant period are no longer with the company.

Positive

• Settlement with SEC avoids further legal complications.
• No restatement of historical financial results, preserving investor confidence.
• Strengthened internal financial controls may enhance compliance and reduce future risks.

Negative

• Payment of an $8 million civil penalty reduces available capital.
• Investigation may raise concerns about past financial practices.

ATLANTA, April 18, 2022 /PRNewswire/ -- Rollins Inc. (NYSE: ROL), a premier global consumer and commercial services company, announced today it has reached a settlement with the U.S. Securities and Exchange Commission (SEC) to fully resolve an investigation into the impact of certain adjustments to accruals and reserves on reported earnings per share in the first quarter of 2016 and the second quarter of 2017. Under terms of the settlement, Rollins neither admits nor denies the SEC's findings and will pay an $8 million civil penalty, which was fully accrued in the third and fourth quarters of 2021.

"Since the Company first learned of this investigation, we have taken this matter very seriously, conducting an internal review and taking proactive steps to address the findings," said Elizabeth Chandler, Vice President, General Counsel and Corporate Secretary at Rollins. "We have also reevaluated and strengthened our internal controls over financial reporting, and improved processes, procedures and supporting documentation, including those related to management's judgments and estimates impacting reported financial results. Rollins remains committed to doing the right thing on behalf of our employees, investors and customers and we are pleased to have reached a resolution to this matter."

The individuals who were leading the accounting department at the time are no longer employed by the Company and there will be no restatement of the Company's historical financial results related to the SEC's investigation.

About Rollins, Inc. 
Rollins, Inc. is a premier global consumer and commercial services company. Through its family of leading brands, Orkin, HomeTeam Pest Defense, Clark Pest Control, Northwest Exterminating, McCall Service, Trutech, Critter Control, Western Pest Services, Waltham Services, OPC Pest Services, The Industrial Fumigant Company, PermaTreat, Crane Pest Control, Missquito, Orkin Canada, Orkin Australia, Safeguard (UK), Aardwolf Pestkare (Singapore), and more, the Company and its franchises provide 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 800 locations. You can learn more about Rollins and its subsidiaries by visiting our website at www.rollins.com, where you can also find this and other news releases by accessing the news releases button.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts. The Company cautions that its forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. A list and description of these factors (all of which risks may be amplified by the COVID-19 pandemic) can be found in our Annual Report on Form 10-K and certain subsequent filings we make with the SEC. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements except as required by law.

Media Contact:
Jeff Gaunt
jgaunt@lambert.com 
847-714-4014

View original content:https://www.prnewswire.com/news-releases/rollins-inc-announces-settlement-of-sec-investigation-301527498.html

SOURCE Rollins Inc.

FAQ

What was the settlement amount Rollins Inc. agreed to pay to the SEC?

Rollins Inc. agreed to pay an $8 million civil penalty to the SEC.

Did Rollins Inc. admit to SEC findings in the settlement?

No, Rollins Inc. did not admit nor deny the SEC's findings in the settlement.

What financial adjustments were investigated by the SEC at Rollins Inc.?

The SEC investigated adjustments to accruals and reserves that impacted earnings per share for Q1 2016 and Q2 2017.

What steps did Rollins Inc. take following the SEC investigation?

Rollins Inc. conducted an internal review and strengthened its internal controls over financial reporting.

Are there any changes to Rollins Inc.'s historical financial results due to the SEC investigation?

No, there will be no restatement of Rollins Inc.'s historical financial results.