Rollins Inc. (NYSE:ROL) Q4 2018 Earnings Conference Call Transcript

Jan 23, 2019 • 10:00 am ET

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Rollins Inc. (NYSE:ROL) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Rollins Incorporated Fourth 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)

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

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 7939620. 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' President and Chief Operating Officer; and Eddie Northen, Senior Vice President, Chief Financial Officer and Treasurer. Management will make some opening remarks, and then we'll open the line for your questions.

Gary, would you like to begin?

Executive
Gary Rollins

Yes, Marilyn. Thank you, and good morning. We appreciate all of you joining us for our fourth quarter and year-end 2019 conference call. Eddie will read our forward-looking statement and disclaimer, and then we'll begin.

Executive
Paul Northen

Our conference call 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.

This conference call also includes certain non-GAAP financial measures of performance. These non-GAAP measures should be used as a supplement and not a substitute for net income, loss computed in accordance with GAAP.

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 31st, 2017 for more information and the risk factors that could cause actual results to differ.

Executive
Gary Rollins

Thank you, Eddie. We're pleased to report our 51st consecutive quarter of improved revenue and earnings. Revenues for the quarter grew 7.2% to $444.6 million, compared to $414.7 million for the fourth quarter last year. Net income increased 51.1% to $51 million or $0.16 per diluted share, compared to $33.7 million or $0.10 per diluted for the same quarter of 2017.

Revenues for the full year rose 8.8% to $1.822 billion, compared to $1.674 billion for the same period last year. Net income increased 29.3% to approximately $231.7 million with earnings per diluted share of $0.71 compared to net income of $179.1 million or $0.55 per diluted share for the full year 2017. We experienced good growth in