Rollins, Inc. Reports First Quarter 2021 Financial Results

Rhea-AI Summary

Rollins, Inc. (NYSE:ROL) reported a strong first quarter for 2021, with total revenues reaching $535.6 million, a 9.8% increase from $487.9 million in Q1 2020. The earnings per share (EPS) was $0.19, including $0.05 from non-recurring property dispositions, while the adjusted EPS was $0.14. Residential revenues saw a significant growth of 14.9%, boosted by a 12.2% increase in termite services. The sale of properties from the acquisition of Clark Pest Control contributed $31.1 million in gains.

Positive

• Total revenue increased by 9.8% to $535.6 million.
• Residential revenue growth reached 14.9%.
• EPS rose to $0.19, including $0.05 from non-recurring gains.
• Adjusted EPS was $0.14, reflecting strong underlying performance.

Negative

• None.

ATLANTA, April 28, 2021 /PRNewswire/ --

• Total Revenue increased 9.8% for the quarter; Total Revenue less Significant Acquisitions grew 7.9%
• Residential revenues increased 14.9% for the quarter, with Termite increasing 12.2%
• Earnings Per Share of $0.19 for the quarter included $0.05 from non-recurring property disposition gains of $31.1 million
• Adjusted Earnings Per Share* of $0.14 for the quarter excluded property disposition gains

Rollins, Inc. (NYSE:ROL), a premier global consumer and commercial services company, reported strong unaudited financial results for its first quarter ended March 31, 2021.

The Company recorded first quarter revenues of $535.6 million, an increase of 9.8% over the prior year's first quarter revenue of $487.9 million.  Rollins' reported net income was $92.6 million or $0.19 per diluted share for the first quarter ended March 31, 2021, compared to $43.3 million or $0.09 per diluted share for the same period in 2020.  Adjusted net income* for the first quarter ended March 31, 2021 was $69.8 million or $0.14 per diluted share.

The Company, as planned, disposed of the majority of the properties received through the 2019 acquisition of Clark Pest Control of Stockton, Inc. The gain related to the disposition of these properties in the quarter ended March 31, 2021 was $31.1 million pre-tax.

Gary W. Rollins, Chairman and Chief Executive Officer of Rollins, Inc. stated, "We are extremely proud of our first quarter results and believe we are well positioned for 2021. Our employees have displayed a strong level of commitment and drive towards taking care of our customers who have shown their trust in our services throughout this pandemic. We are confident in our continued strategic growth and profitability moving forward."

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, McCall Service, Inc., Critter Control, The Industrial Fumigant Company, Trutech, Orkin Australia, Waltham Services, OPC Services, PermaTreat, Rollins UK, Aardwolf Pestkare, Crane Pest Control and MissQuito, 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.mccallservice.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,  www.missquito.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 STATEMENTS This release contains statements that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements include statements about the Company's belief that it is well positioned for 2021 and the Company's confidence in its continued strategic growth and profitability moving forward.  The actual results of the Company could differ materially from those indicated 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; the results of the SEC's investigation of the Company; 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. 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, 2020.

ROL-Fin

 

	ROLLINS, INC. AND SUBSIDIARIES
	CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
	(in thousands)
	At March 31, (unaudited)	2021		2020
	ASSETS
	Cash and cash equivalents	$               117,322		$                 92,582
	Trade accounts receivables, net	122,445		123,166
	Financed receivables, net	22,402		22,209
	Materials and supplies	32,645		21,527
	Other current assets	39,229		45,346
	Total Current Assets	334,043		304,830
	Equipment and property, net	143,899		194,854
	Goodwill	659,795		596,067
	Customer contracts, net	297,288		279,361
	Trademarks and tradenames, net	108,761		104,863
	Other intangible assets, net	10,198		10,314
	Operating lease, right-of-use assets	252,343		207,975
	Financed receivables, long-term, net	38,105		33,952
	Benefit plan assets	1,167		15,639
	Deferred income tax assets	2,649		1,961
	Other assets	28,632		21,663
	Total Assets	$            1,876,880		$            1,771,479
	LIABILITIES
	Accounts payable	$                 66,586		$                 36,844
	Accrued insurance, current	31,709		30,739
	Accrued compensation and related liabilities	78,357		68,289
	Unearned revenue	140,378		129,352
	Operating lease liabilities, current	75,822		69,094
	Current portion of long-term debt	18,750		12,500
	Other current liabilities	96,186		71,050
	Total Current Liabilities	507,788		417,868
	Accrued insurance, less current portion	36,062		34,921
	Operating lease liabilities, less current portion	178,508		140,152
	Long-term debt	96,250		307,300
	Deferred income tax liabilities	9,005		14,257
	Long-term accrued liabilities	60,332		56,610
	Total Liabilities	887,945		971,108
	STOCKHOLDERS' EQUITY
	Common stock	492,124		491,651
	Retained earnings and other equity	496,811		308,720
	Total stockholders' equity	988,935		800,371
	Total Liabilities and Stockholders' Equity	$            1,876,880		$            1,771,479

 

ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
	Three Months Ended
	March 31,
	2021		2020
REVENUES
Customer services	$  535,554		$   487,901
COSTS AND EXPENSES
Cost of services provided	261,552		251,152
Depreciation and amortization	23,596		21,597
Sales, general and administrative	162,208		157,862
(Gains)/losses on sale of assets, net	(32,260)		(275)
Interest expense, net	606		2,165
	415,702		432,501
INCOME BEFORE INCOME TAXES	119,852		55,400
PROVISION FOR INCOME TAXES	27,209		12,132
NET INCOME	$    92,643		$     43,268
NET INCOME PER SHARE - BASIC AND DILUTED	$        0.19		$        0.09
Weighted average shares outstanding - basic and diluted	492,003		491,524

 

APPENDIX

Reconciliation of GAAP and non-GAAP Financial Measures

The Company has used the non-GAAP financial measures of adjusted net income and adjusted EPS in today's earnings release.  These measures should not be considered in isolation or as a substitute for net income, earnings per share or other performance measures prepared in accordance with GAAP.

The Company uses adjusted net income and adjusted EPS as a measure of operating performance because it allows it to compare performance consistently over various periods without regard to the impact of the property disposition gains.

A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.

Set forth below is a reconciliation of adjusted net income and adjusted EPS with net income, the most comparable GAAP measure.

(unaudited in thousands except EPS)

	Three Months Ended
	March 31,
	2021		2020		Better/ (Worse)		%
Net income	$   92,643		$ 43,268		$    49,375		114.1	%
Property disposition gains	(31,058)		-		(31,058)		-
Adjusted income taxes on excluded gains	8,165		-		8,165		-
Adjusted net income	$   69,750		$ 43,268		$    26,482		61.2	%
Adjusted net income per share - basic and diluted	$        0.14		$     0.09		$        0.05		55.6	%
Weighted average participating shares outstanding - basic and diluted	492,003		491,524		479		0.1	%

 

CONFERENCE CALL ANNOUNCEMENT
Rollins, Inc.
(NYSE: ROL)

Management will hold a conference call to discuss
First Quarter 2021 results on

Wednesday, April 28, 2021 at:
10:00 a.m. Eastern
9:00 a.m. Central
8:00 a.m. Mountain
7:00 a.m. Pacific

TO PARTICIPATE: 
Please dial 877-407-9716 domestic;
201-493-6779 international
with conference ID of 13717965
at least 5 minutes before start time.

REPLAY: available through May 5, 2021
Please dial 844-512-2921 / 412-317-6671, Passcode 13717965
THIS CALL CAN ALSO BE ACCESSED THROUGH THE INTERNET AT
www.rollins.com

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

View original content:http://www.prnewswire.com/news-releases/rollins-inc-reports-first-quarter-2021-financial-results-301278756.html

SOURCE Rollins, Inc.

FAQ

What were Rollins' Q1 2021 earnings results?

Rollins reported Q1 2021 revenues of $535.6 million and an EPS of $0.19.

How did residential revenues perform for Rollins in Q1 2021?

Residential revenues increased by 14.9% in Q1 2021.

What was the significance of the property dispositions for Rollins in Q1 2021?

The property dispositions from the Clark Pest Control acquisition generated $31.1 million in pre-tax gains.

What is Rollins' adjusted EPS for Q1 2021?

The adjusted EPS for Rollins in Q1 2021 was $0.14.

How does Rollins' Q1 2021 financial performance compare to the previous year?

In Q1 2020, Rollins reported revenues of $487.9 million and an EPS of $0.09.