In the field of pest control, Rollins has the chemical equivalent of a killer app. Its subsidiaries, led by famous bug killer Orkin, serve more than 2 million customers, mainly in the Americas but also in Asia and in the Middle East. The founding family-controlled company provides residential and commercial pest control and termite control services. With more than 500 company-owned and franchised locations operating under various brands, Rollins offers inspections, baits, traps, and crack and crevice treatments. Other major brands include PCO Services (in Canada) and The Industrial Fumigant Company (serving the food market).
In 2011 Rollins had 76 franchises around the world, serving customers in Africa, Asia, the Caribbean, Central America, Europe, the Mediterranean, the Middle East, and North America. That year Rollins generated 92% of its revenues from the US.
In 2011 the company reported a 6% growth in revenues thanks to an increase in organic growth in its commercial pest control, residential pest control, and termite control businesses. Net income grew by 12% thanks to stronger revenues and a decrease in sales, general, and administrative expenses in 2011. During 2011, Rollins' subsidiaries acquired several small companies totaling $11.4 million, compared to $34.8 million in acquisition spending in 2010.
Once a highly diversified company with businesses ranging from security services to broadcasting, Rollins has shed its noncore interests over the years in order to concentrate on extermination. It also aims to expand in key regions and market segments through the use of acquisitions.
In 2011, through Orkin, it established a new international franchise in Shanghai, China to grab opportunities for growth in the booming commercial market in China. It also formed a partnership with the University of Kentucky to conduct extensive bed bug research to address a growing issue in the US Midwest and East Coast markets.
In mid-2010 Rollins acquired Waltham Services, a pest control firm with annual revenues of $17 million serving customers in New England and New York. Also in 2010, Rollins expanded its international scope by extending its Orkin presence throughout Turkey. Earlier that year, it opened franchises in Jamaica, Lebanon, and Ireland.
Rollins has seen its revenues pass $1 billion for several years, reaching this milestone for the first time in its history in 2008. It attributes an expanded sales force, a focus on customer retention, an increase in its prices, and acquisitions for this revenue growth.
Success for Rollins comes when returning customers find fewer returning pests. Orkin's "every other month" program, which promotes ongoing pest-control maintenance, is used by a majority of the company's existing residential customers. In regards to its commercial customers, Rollins continues to zero in on the food processing, restaurant, hotel, and health care industries, which are mandated by the government to adhere to stringent health standards and will always find a need for the kind of services Rollins provides.
The Rollins family, including chairman R. Randall Rollins and CEO Gary Rollins, controls a majority stake in the company.
Rollins has taken on several education initiatives. The company partners with the Centers for Disease Control in efforts to teach the public about pest-related illnesses, and its O. Orkin Insect Zoo at the Smithsonian Museum of Natural History in Washington, DC, remains a popular exhibit. – less