Rollins Inc. (NYSE:ROL) Q4 2015 Earnings Conference Call Transcript

Jan 27, 2016 • 10:00 am ET

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Rollins Inc. (NYSE:ROL) Q4 2015 Earnings Conference Call Transcript

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Presentation
Operator
operator

Good morning, and welcome to the Rollins Incorporated Fourth Quarter 2015 Earnings Conference Call. Today's conference is being recorded. At this time all participants are in a listen-only mode. Later we will be conducting a Q&A session and instructions will be given at that time. (Operator Instructions)

I would now like to introduce your host for today's call, Marilynn Meek. Ms. Meek, you may begin.

Executive
Marilynn Meek

Thank you. By now, you should have all received a copy of the press release. However, if anyone is missing a copy and would like to receive one, please contact our office at 212-827-3746, and we will send you a release and make sure you are on the company's distribution list. There will be a replay of the call which will begin one hour after the call, and run for one week. The replay can be accessed by dialing 1-888-203-112 with the passcode 8962426. Additionally, the call is being webcast at www.viavid.com, and the replay will be available for 90 days.

On the line with me today are Gary Rollins, Vice Chairman and CEO; and Eddie Northen, VP, CFO, and Treasurer. Management will make some opening remarks, and then we'll open up the line for your question.

Gary, would you like to begin?

Executive
Gary Rollins

Sure. Thank you, Marilynn, and good morning. We appreciate all of you joining us for our fourth quarter and year end 2015 conference call. Eddie will read our forward-looking statement and disclaimer, and then we'll begin.

Executive
Eddie Northen

(Forward-Looking Cautionary Statements).

Executive
Gary Rollins

Thank you, Eddie. Before I begin, I want to introduce John Wilson. We have another attendee at today's investor call. John is President and COO of Rollins. He is new to our investor calls, but certainly not new to Rollins. You may recall that John was promoted in 2013 to President and COO. Prior to that, John had been President of Orkin USA. He began his career as a technician and sales inspector while in college, and joined the company full time in 1996 as a branch manager trainee. He's had various positions of increasing responsibility, beginning as a branch manager, region manager, VP, and President of the Southeast division. He attended the University of Tennessee, and has completed the Executive Program at the University of Virginia Darden School of Business. Rollins' Board of Directors named John an Officer and Vice President in 2011. John is doing a terrific job as an important part of our success and our future.

We were extremely pleased to have posted record results for the quarter, as well as our 18th consecutive year of improved revenues and profits. For the quarter, revenue grew 5.4% to $362.5 million compared to $344 million in last year's fourth quarter. Income before taxes rose 11.3% to $51.8 million compared to $46.5 million for the prior-year period. Net income rose 6.1% to $31.7 million or $0.15 per share, compared to net income of $29.9 million or $0.14 per diluted share for the same quarter last year.

Revenues for the full year rose 5.2%