Rollins Inc. (NYSE:ROL) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 25, 2018 • 10:00 am ET

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Rollins Inc. (NYSE:ROL) Q1 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, good day and welcome to the Rollins Incorporated First Quarter 2018 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 question-and-answer session and instructions will be given at that time. (Operator Instructions)

Executive
Marilyn 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) 203-1112 with the passcode 1244009. Additionally, the call is being webcast at www.viavid.com, and a replay will be available for 90 days.

On the line with me today and presenting are Gary Rollins, Vice Chairman and Chief Executive Officer; John Wilson, Rollins' Vice President and Chief Operating Officer; and Eddie Northen, Vice President, Chief Financial Officer and Treasurer. Management will make some opening remarks and then we'll open up the line for your questions.

Gary, would you like to begin?

Executive
Gary Rollins

Yes. Thank you, Marilyn, and good morning. We appreciate all of you joining us for our first quarter of 2018 conference call. Eddie will read our forward-looking statement and disclaimer and then we will begin.

Executive
Eddie Northen

Our earnings release discusses our business outlook and contains certain forward-looking statements. These particular forward-looking statements and all other statements that have been made on this call, excluding historical facts, are subject to a number of risks and uncertainties, and actual risks may differ materially from any statement we make today. Please refer to today's press release and our SEC filings, including the Risk Factors section of our Form 10-K for the year ended December 31, 2017, for more information and the risk factors that could cause actual results to differ.

Executive
Gary Rollins

Thank you, Eddie. For the quarter, our revenues grew 8.9% to $408.7 million compared to $375.2 million for the same period last year. Net income increased 20.5% to $48.5 million or $0.22 per diluted share compared to $40.3 million or $0.18 per diluted share for the same quarter last year. Eddie, will provide greater detail on the impact of our recently announced enhanced employee benefits, the tax rate changes, and other financial numbers in a few minutes.

All of our business lines experienced good growth in the quarter, with residential up 8.4%, commercial pest control grew 5.6% and, termite and ancillary rose 16. 2%. We're continuing to expand our global footprint and are extremely pleased with the growing international presence for the Orkin brand. We're accomplishing this to both company-owned acquisitions and our extensive and expanding franchise network.

During the quarter, we announce the addition of four international franchises in South America, Europe, the Middle East, and Latin America. All of these locations