Rollins, Inc.(NYSE: ROL) rose over 5.5% on Jan 25th, 2018 (as of 4:11PM EST; Source: Google finance) leading to a total increase of over 48.3% in the last one year.
The revenue enhanced 7.5% to $414.7 million during the fourth quarter of 2017 from $385.6 million in pcp. Income before taxes enhanced 30.5% to $68.5 million, against $52.5 million for the fourth quarter of 2016. For fiscal year of 2017, Revenues enhanced 6.4% to $1.673 billion from $1.573 billion in pcp. Net income enhanced 7% to $179.1 million with earnings per share reaching $0.82 per diluted share, from a net income of $167.4 million or $0.77 per diluted share for the prior period.
The residential rose 6.9% during the fourth quarter while the commercial pest control enhanced 5% while termite and ancillary increased 15.6%. In 2017, ROL had 12 international franchises to their network as they continue to enhance their presence around the world while advanced their acquisition strategy having added Northwest Exterminating. The group also enhanced the routing and scheduling capabilities leading to the implementation of BOSS and its virtual route management features. Canada expanded margin at the fastest rate in the last several years. In the U.K the Safeguard name continues to gain recognition and has enabled them to continue a pace of a major growth.
The overall gross margin was flat to last year at 50% against pcp as they incorporated Northwest Exterminating into their firm. As a result, they are focusing on cost control improving their gross margin inserted salaries as they continue to enhance efficiency and productivity from their technicians with the use of BOSS.The gains in productivity were offset by rise in materials and supplies as the group is spending more on termite product with their revenue growth, fleet expenses on the back of gasoline price increases and leased vehicle cost.
The group spent $130.2 million on acquisitions and a $122 million on dividends, which is a rise of 12%. They had $24.7 million capital expenditures which fell 25.4% against 2016 mainly from finishing the BOSS project and ended with a $107.1 million in cash, falling 25% from last year. They paid a regular cash dividend of $0.14 per share which is a rise of 21.7% against pcp.