Rollins, Inc. · NYSE:ROL
Rollins — Baird 2024 Global Industrial Conference
14 slides from Rollins's conference presentation, Nov 14, 2024
Slide 1: Baird 2024 Global Industrial Conference
Baird 2024 Global Industrial Conference 2 Rollins, Inc. Ken Krause, EVP & Chief Financial Officer November 14, 2024 1 © 2024 Rollins, Inc. All rights reserved.
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation as well as other written or oral statements by the Company may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our cu
Slide 3: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures The Company has used the non-GAAP financial measures of organic revenues, organic revenues by type, adjusted operating income, adjusted operating margin, adjusted net income, adjusted earnings per share (“EPS”), earnings before interest, taxes,
Slide 4: Long-Term Compounder
Long-Term Compounder 2000-2023 Adj. EBITDA 1 Annual TSR Operating Cash Flow Adj. EBITDA 1 Revenue +7% +14% +18% +21% CAGR CAGR CAGR Average 1 This is a non-GAAP measure (see Appendix). 4 © 2024 Rollins, Inc. All rights reserved.
Slide 5: Successful Track Record
Successful Track Record 20+ YEARS ~8% >75% +800BPS 2008-2023 OF CONSECUTIVE 2008-2023 RECURRING Adj. EBITDA1 MARGIN GROWTH REVENUE CAGR REVENUE EXPANSION RESILIENT FINANCIAL PERFORMANCE ACROSS CYCLES REVENUE GROWTH ADJ. EBITDA GROWTH 1 ~6% ~11% GREAT FINANCIAL CRISIS 2008 – 2010 ~6% ~8% INDUSTRIAL S
Slide 6: Disciplined Capital Deployment
Disciplined Capital Deployment Free Cash Flow1 ($MM) HOW IT WAS SPENT ~13% CAGR Free Cash Flow1 Allocated to M&A, Dividends & Share Repurchases ~$496 Share Repurchases 14% M&A 47% Dividends 39% ~$272 M&A Dividends Share Repurchases $1.2B $1.0B $0.4B • High-Quality, Profitable • Dividend Increased 45
Slide 7: Platform Poised for Strong and Continued Growth
Platform Poised for Strong and Continued Growth Organic Revenue Growth Accretive M&A Margin Expansion SG&A Gross Margin Continued Centralization of Accretive M&A select back-office International Strategic pricing services, platform Expansion and procurement technology Product optimization spend, and
Slide 8: Q3 2024 Results
Q3 2024 Results Other Revenue $916M +9% Q3 Highlights • Healthy growth across all major service lines • Organic growth1 of 7.7%; acquisitions Adj. EPS $0.29 +4% drove remaining growth, offset by divestitures in Q3 2024 • Gross margin of 54% and pressure in SG&A from incremental sales staffing and ma
Slide 9: Growth Algorithm
Growth Algorithm 9 © 2024 Rollins, Inc. All rights reserved.
Slide 10: Key Takeaways
Key Takeaways 1 2 3 4 5 Rollins is a scaled player We operate in a large We continue to invest for We strongly embrace our We are a compounder in the core North and highly fragmented growth, both organically culture of continuous and will continue to American pest control industry with significant a
Slide 11: Appendix
Appendix 11 © 2024 Rollins, Inc. All rights reserved.
Slide 12: Non-GAAP Reconciliation
Non-GAAP Reconciliation Q1 Q2 Q3 $MM 2000 2008 2010 2013 2015 2016 2018 2020 2021 2022 2023 2024 2024 2024 Revenue $647 $1,021 $1,137 $1,337 $1,485 $1,573 $1,822 $2,161 $2,424 $2,696 $3,073 $748 $892 $916 Adj. EBITDA GAAP Net Income $9.6 $68.9 $90.0 $123.3 $152.1 $167.4 $231.7 $266.8 $356.6 $368.6 $
Slide 13: Non-GAAP Reconciliation
Non-GAAP Reconciliation $MM 2019 2021 2022 Q1 2023 2023 Q1 2024 Q2 2024 Q3 2024 Adj. SG&A SG&A $629.4 $727.5 $802.7 $196.4 $915.2 $223.1 $271.5 $274.9 Minus: Clark Pest Control acquisition-related expenses (2.7) - - - - - - - Minus: SEC Matter - (8.0) - - - - - - Minus: Fox Acquisition-related expen
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation $MM Q3 2024 Q3 2023 Variance Organic Revenues $ % Revenues $916.3 $840.4 75.8 9.0 Revenues from Acquisitions (17.3) - (17.3) 2.1 Revenues of Divestitures - (5.8) 5.8 (0.8) Organic Revenues1 $898.9 $834.6 64.3 7.7 $MM Q3 2024 Q3 2023 Adj. Operating Income & Adj. Operating Inco