Rollins Announces Q4 and Full Year 2017 Results

Rollins Announces Q4 and Full Year 2017 Results

For the full-year that ended on Dec. 31, 2017, Rollins' revenues rose 6.4% to $1.674 billion compared to $1.573 billion for the prior year.

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February 2, 2018
Edited by the PCT Staff
Companies
ATLANTA — Rollins, Inc., announced unaudited financial results for its fourth quarter and year ended December 31, 2017.

On December 22, 2017, the Tax Cuts & Jobs Act ("TCJA") was signed into law.  The fourth quarter 2017 and full year 2017 results reflect the estimated negative impact of the enactment of the TCJA, which resulted in an $11.6 million decrease in net income, ($8.0 million from transition tax on foreign earnings, $2.9 million from the revaluation of deferred tax assets, and $0.7 million from reductions in tax benefits on stock compensation).  This resulted in a $0.06 per diluted share decrease in net income for the quarter and $0.05 per diluted share decrease for the year.  Net income and diluted earnings per share excluding significant items are non-GAAP financial measures.  Management believes these measures help investors understand the effect of these on reported results.

The Company recorded fourth quarter revenues of $414.7 million, an increase of 7.5% over the prior year's fourth quarter revenue of $385.6 million.  Rollins reported net income of $33.7 million or $0.15 per diluted share.  Excluding significant items Rollins' net income increased 19.2% to $45.3 million or $0.21 per diluted share for the fourth quarter ended December 31, 2017, compared to $38.0 million or $0.17 per diluted share for the same period in 2016. 

For the full-year ended December 31, 2017, Rollins' revenues rose 6.4% to $1.674 billion compared to $1.573 billion for the prior year.  The Company reported net income of $179.1 million.  Excluding significant items Rollins' net income for the year rose 13.9% to $190.7 million, or $0.87 per diluted share, compared to net income of $167.4 million, or $0.77 per diluted share last year.

Gary W. Rollins, Vice Chairman and Chief Executive Officer of Rollins, Inc. stated, "We are pleased to have delivered solid financial results for the fourth quarter and for the year.  These results reflect the underlying strength of our business and our initiatives that have benefitted our customers, employees, and shareholders."

Mr. Rollins concluded, "Our strong balance sheet has allowed us to continue to make strategic acquisitions.  Northwest Exterminating has been a great addition to our Company and we are extremely pleased with the contributions that they have made to our revenues and profits.  We look forward to all of our acquisitions having a significant role in the company going forward."

Eddie Northen, Vice President, Chief Financial Officer and Treasurer of Rollins, Inc. stated, "For Fiscal 2018, we believe the Tax Cuts & Jobs Act will result in an all-in book tax rate for the Company in the mid 20 percent range.  Our first quarter 2018 will have the additional tax benefit from share-based compensation, further reducing that quarter's tax rate.