Rollins(ROL) - 2022 Q2 - Quarterly Report

FORM 10-Q Filing Information This section provides essential registration and filing details for Rollins, Inc.'s quarterly report Registrant and Filing Details | Detail | Value | | :--- | :--- | | Registrant Name | ROLLINS, INC. | | Commission File Number | 1-4422 | | Quarterly Period Ended | June 30, 2022 | | State of Incorporation | Delaware | | Trading Symbol | ROL | | Exchange | NYSE | | Filer Status | Large Accelerated Filer | | Common Stock Outstanding (July 15, 2022) | 492,417,332 shares | PART I FINANCIAL INFORMATION This part presents the company's unaudited condensed consolidated financial statements and related notes for the reporting period ITEM 1. FINANCIAL STATEMENTS This section presents the unaudited condensed consolidated financial statements of Rollins, Inc. and its subsidiaries, including the Statements of Financial Position, Income, Comprehensive Income, Stockholders' Equity, and Cash Flows for the periods ended June 30, 2022, and December 31, 2021 (for balance sheet) or June 30, 2021 (for income/cash flow statements). These statements provide a snapshot of the company's financial health, performance, and cash movements. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Condensed Consolidated Statements of Financial Position (in thousands) | ASSETS | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $ 220,964 | $ 105,301 | | Trade receivables, net | 162,755 | 139,579 | | Financed receivables, short-term, net | 29,822 | 26,152 | | Materials and supplies | 29,515 | 28,926 | | Other current assets | 63,942 | 52,422 | | Total current assets | 506,998 | 352,380 | | Equipment and property, net | 130,424 | 133,257 | | Goodwill | 742,019 | 721,819 | | Customer contracts, net | 318,015 | 325,929 | | Trademarks & tradenames, net | 111,040 | 108,976 | | Other intangible assets, net | 10,004 | 11,679 | | Operating lease right-of-use assets | 252,355 | 244,784 | | Financed receivables, long-term, net | 52,961 | 47,097 | | Other assets | 43,666 | 34,949 | | Total assets | $2,167,482 | $ 1,980,870 | | LIABILITIES | | | | Accounts payable | $ 50,702 | $ 44,568 | | Accrued insurance | 37,724 | 36,414 | | Accrued compensation and related liabilities | 95,948 | 97,862 | | Unearned revenues | 165,220 | 145,122 | | Operating lease liabilities - current | 77,867 | 75,240 | | Current portion of long-term debt | 15,000 | 18,750 | | Other current liabilities | 75,283 | 73,206 | | Total current liabilities | 517,744 | 491,162 | | Accrued insurance, less current portion | 32,470 | 31,545 | | Operating lease liabilities, less current portion | 178,021 | 172,520 | | Long-term debt | 219,858 | 136,250 | | Other long-term accrued liabilities | 73,822 | 67,345 | | Total liabilities | 1,021,915 | 898,822 | | STOCKHOLDERS' EQUITY | | | | Common stock | 492,417 | 491,911 | | Additional paid in capital | 109,070 | 105,629 | | Accumulated other comprehensive loss | (31,149) | (16,411) | | Retained earnings | 575,229 | 500,919 | | Total stockholders' equity | 1,145,567 | 1,082,048 | | Total liabilities and stockholders' equity | $2,167,482 | $ 1,980,870 | CONDENSED CONSOLIDATED STATEMENTS OF INCOME Condensed Consolidated Statements of Income (in thousands, except per share data) | | Three Months Ended June 30, | | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | 2022 | 2021 | 2022 | 2021 | | REVENUES | | | | | | Customer services | $714,049 | $638,204 | $1,304,729 | $1,173,758 | | COSTS AND EXPENSES | | | | | | Cost of services provided | 336,780 | 297,862 | 632,158 | 559,414 | | Sales, general and administrative | 219,987 | 183,482 | 398,772 | 345,690 | | Depreciation and amortization | 24,325 | 23,306 | 49,172 | 46,902 | | Total operating expenses | 581,092 | 504,650 | 1,080,102 | 952,006 | | OPERATING INCOME | 132,957 | 133,554 | 224,627 | 221,752 | | Interest expense, net | 880 | 506 | 1,448 | 1,112 | | Other (income), net | (1,911) | (891) | (3,190) | (33,151) | | CONSOLIDATED INCOME BEFORE INCOME TAXES | 133,988 | 133,939 | 226,369 | 253,791 | | PROVISION FOR INCOME TAXES | 33,689 | 35,085 | 53,625 | 62,294 | | NET INCOME | $100,299 | $ 98,854 | $172,744 | $191,497 | | NET INCOME PER SHARE - BASIC AND DILUTED | $ 0.20 | $ 0.20 | $ 0.35 | $ 0.39 | | DIVIDENDS PAID PER SHARE | $ 0.10 | $ 0.08 | $ 0.20 | $ 0.16 | CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Condensed Consolidated Statements of Comprehensive Income (in thousands) | | Three Months Ending June 30, | | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | 2022 | 2021 | 2022 | 2021 | | NET INCOME | $100,299 | $ 98,854 | $172,744 | $191,497 | | Other comprehensive income (loss), net of tax: | | | | | | Foreign currency translation adjustments | (16,913) | 704 | (13,786) | 283 | | Unrealized loss on available for sale securities | (362) | — | (952) | — | | Change in derivatives | — | (439) | — | (276) | | Other comprehensive income (loss), net of tax | (17,275) | 265 | (14,738) | 7 | | Comprehensive income | $ 83,024 | $ 99,119 | $158,006 | $191,504 | CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Condensed Consolidated Statements of Stockholders' Equity (in thousands) - Key Changes for Six Months Ended June 30, 2022 | Item | Amount (Six Months Ended June 30, 2022) | | :--- | :---