ATLANTA - Rollins, Inc. provided an update regarding its current business operations related to the COVID-19 pandemic.
Rollins and its family of pest control and wildlife control brands have remained active during the pandemic because the company has been deemed an "essential service" by the Department of Homeland Security. Even as operations have been negatively impacted by the pandemic, Rollins says its domestic and global facilities remain operational; however, customer retention and sales demand have been impacted depending on the market.
Rollins has been required to increase its cost in one very critical area to safely operate. It has purchased and provided personal protective equipment (PPE) for all of its technicians (masks, booties, gloves, coveralls, etc.). This will keep both its employees and customers safe and their health protected, Rollins reports.
Gary W. Rollins, vice chairman and CEO of Rollins, Inc. stated, "Our employees are and remain our most valuable asset. Their safety and that of our customers has been and will always be our highest priority and must be safeguarded during this challenging time."
Rollins says its residential pest control segment is positive as it enters into its higher demand months, which is also aided by the start of its mosquito services. Rollins says its commercial pest control business has been most adversely impacted, as it crosses multiple verticals such as healthcare, food processing, logistics, grocery, retail and hospitality. Each of these industries is being impacted differently due to the pandemic. Additionally, Rollins recently announced the launch of our brand-new commercial disinfectant service, Orkin VitalClean which should be a positive revenue and profit contributor.
As a result of the impact and challenges related to COVID-19, Rollins has taken many proactive and defensive actions, including temporarily furloughing a number of employees in both field operations and our home offices. The furloughs will allow us to rehire the employees as demand improves. Rollins is providing full employee benefits for those affected.
Additionally, Rollins has suspended merit increases for the corporate office staff, along with management salary reductions in both field and home office positions. Rollins Chairman, Chief Executive Officer, and Chief Operating Officer have taken a reduction to their base pay of 35%, Senior executives 20-25% and our remaining corporate management 5-10%. Non-management employees have not been impacted by these salary reductions. Rollins has also taken actions to reduce discretionary spending, cancelled all non-essential capital expenditures, travel, meetings, training, contractor and temporary services.
"Lower revenue and higher costs related to COVID-19 have caused the company to take these and other steps to aggressively cut company costs, while minimizing the necessary expense related to selling and servicing our customers," stated Eddie Northen, Rollins Chief Financial Officer.
Source: PRNewswire