ATLANTA — Rollins, Inc. reported unaudited financial results for its second quarter and six months ended June 30.
The company recorded record second quarter 2022 revenues of $714 million, an increase of 11.9 percent over second quarter 2021 revenues of $638.2 million, with organic revenues increasing 8.7 percent to $693.6 million.
The company’s second quarter 2022 reported net income was $100.3 million or $0.20 per diluted share, compared to $98.9 million or $0.20 per diluted share for second quarter of 2021.
Net income for the quarter was impacted by an increase in revenues offset by cost increases related to people, advertising, fleet and materials and supplies. Revenues are impacted by the seasonal nature of the company’s pest and termite control services, the company said.
Residential, commercial, termite and ancillary services each experienced double-digit revenue percentage growth. People costs and materials and supplies increased in conjunction with the increase in revenues, and fleet costs were driven by an increase in fuel costs.
Advertising costs are up due to a combination of an increase in advertising campaigns in reaction to the late arrival of spring, combined with the impact of a change in the company’s quarterly process for estimating and accruing advertising expenses. However, Rollins reported it expects total advertising expense to be consistent as a percentage of revenue year over year.
Adjusted net income and adjusted earnings per diluted share for the second quarter ended June 30, 2021, were $98.5 million and $0.20 per diluted share, respectively. Second quarter 2021 results have been adjusted to exclude the gain related to the disposition of properties received through the 2019 acquisition of Clark Pest Control of Stockton of $0.5 million ($0.3 million, net of tax).
For the six months ended June 30, 2022, the company’s revenues rose 11.2 percent to $1.305 billion, compared to $1.174 billion for the prior year, with organic revenues increasing 8 percent to $1.267 billion.
The company reported net income of $172.7 million or $0.35 per diluted share compared to $191.5 million or $0.39 per diluted share for the prior year. Net income for the six months was impacted by an increase in revenues offset by cost increases related to people, fleet, advertising and materials and supplies.
Adjusted net income and adjusted earnings per diluted share for the six months ended June 30, 2021, were $168.3 million and $0.34, respectively. The results for 2021 have been adjusted for the gain related to the disposition of the properties received through the 2019 acquisition of Clark Pest Control of Stockton of $31.5 million ($23.2 million net of tax).
Gary W. Rollins, chairman and chief executive officer of Rollins, said, “We are proud of our second quarter results and believe we are well positioned for the remainder of 2022. Our employees have displayed a strong level of commitment and drive towards taking care of our customers. We are confident in our continued strategic growth and profitability moving forward.”