On July 23, 2014, the Company reported its 33rd consecutive quarter of improved
revenue and earnings with net income of $40.9 million for the quarter ended June
30, 2014, as compared to $36.0 million for the prior year quarter, a 13.5%
improvement. Revenues increased by 5.3% to $369.4 million for the second
quarter 2014 as compared to $350.8 million for the prior year second quarter.
Earnings for the quarter ended June 30, 2014 increased to $0.28 per diluted
share, as compared to $0.25 per diluted share for the same period in 2013.
Rollins continues its solid financial performance generating $90.0 million in
cash from operations year to date.
Results of Operations:
THREE MONTHS ENDED JUNE 30, 2014
COMPARED TO THREE MONTHS ENDED JUNE 30, 2013
Revenues for the second quarter ended June 30, 2014
increased $18.6 million
5.3% to $369.4 million
compared to $350.8 million
for the quarter ended June 30,
. Most of the change was due to an increase in lead closure in most
service line categories and due to acquisitions. The higher sales resulted in
growth across all service lines. The Company implemented its traditional price
increase program in June 2013
and 2014 which impacted revenue by less than 2%
for the quarter. Additional pricing action may occur in the third quarter.
Nearly 80% of the Company's revenue is recurring.
The Company has three primary service offerings. Commercial pest control revenue
approximated 40% of the Company's revenues during the second quarter ended June
, residential pest control revenue approximated 41% of revenues, and
termite and ancillary service revenue made up approximately 19% of the Company's
revenues. Comparing second quarter 2014 to second quarter 2013, the Company's
commercial pest control revenue grew 7.3%, residential pest control revenue grew
3.9%, and termite and ancillary services revenue grew 4.2%.
Foreign operations accounted for approximately 9% and 7% of total revenues
during the second quarter of 2014 and 2013, respectively.
Revenues are impacted by the seasonal nature of the Company's pest and termite
control services. The increase in pest activity, as well as the metamorphosis of
termites in the spring and summer (the occurrence of which is determined by the
change in seasons), has historically resulted in an increase in the Company's
revenues as evidenced by the following chart: