Slide 1: First Quarter 2024 Earnings Webcast Presentation
First Quarter 2024 Earnings Webcast Presentation Rollins, Inc. April 25, 2024
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: Q1 2024 Results
Q1 2024 Results Other Revenue of Q1 Highlights $748M up 14% • • Double-digit growth across all major service lines Organic growth1 of 7.5% despite unfavorable weather $0.20 in January; acquisitions drove remaining growth Adjusted EPS1 of up 18% • Growth accelerated through the quarter with organic g
Slide 5: Balanced 2024 Outlook
Balanced 2024 Outlook WHAT WE ARE SEEING WHAT WE EXPECT Organic Growth Continued Growth Healthy market growth and solid execution Focused on delivering solid growth and healthy driving strong organic growth with good incremental margins in 2024, further performance across all major service areas; co
Slide 6: Q1 Revenue Growth
Q1 Revenue Growth +11.7% +13.7% +11.4% $748 +16.5% $13M organic1 $3M acquisition1 $23M organic1 $5M acquisition1 ($2M) impact of $12M organic1 divestiture1 $38M acquisition1 ($3M) impact of divestiture1 Double-Digit Revenue Growth Across All Three Service Lines Note: Figures may not foot due to roun
Slide 7: Q1 Adjusted EBITDA Margin
Q1 Adjusted EBITDA Margin1 HIGHLIGHTS Gross Profit • Gross margin 51.2% Adj. SG&A(1) +20 bps • Fox accretive by ~40 bps, 50 bps of organic improvement • Leverage from people costs, fleet, and materials & supplies +100 bps Adj. SG&A(1) • Benefits from leverage on 21.5% people costs offset headwinds f
Slide 8: Cash Flow and Use Of Liquidity
Cash Flow and Use Of Liquidity HIGHLIGHTS Cash Generation Q1 2024 Free Cash Flow1 Q1 2024 Uses of Cash Flow • Q1 Free Cash Flow & Liquidity Conversion1 was ~127% • Strong balance sheet with CAPEX ($7M) modest levels of debt +29% DIVIDENDS Acquisitions ($73M) • Closed 12 acquisitions in Q1 $120M Divi
Slide 9: Key Takeaways
Key Takeaways Focus on Modernization Exceptional Performance Hiring key talent across the organization to Healthy pipeline of acquisitions accelerate modernization efforts Robust organic growth across all service areas Focused on upgrading technology and executing Essential nature of services provid
Slide 10: Appendix
APPENDIX 10
Slide 11: Reconciliation Of GAAP And Non-GAAP Financial Measures
Reconciliation Of GAAP And Non-GAAP Financial Measures Set below are reconciliations of non-GAAP financial measures used in this investor presentation and conference call with their most directly comparable GAAP measures. (1) Consists of expenses resulting from the amortization of certain intangible
Slide 12: Reconciliation Of GAAP And Non-GAAP Financial Measures
Reconciliation Of GAAP And Non-GAAP Financial Measures Set below are reconciliations of non-GAAP financial measures used in this investor presentation and conference call with their most directly comparable GAAP measures. Three Months Ended March 31, Variance (unaudited, in thousands, except per sha
Slide 13: Reconciliation Of GAAP And Non-GAAP Financial Measures
Reconciliation Of GAAP And Non-GAAP Financial Measures Set below are reconciliations of non-GAAP financial measures used in this investor presentation and conference call with their most directly comparable GAAP measures. Three Months Ended March 31, Variance (unaudited, in thousands) 2024 2023 (1)
Slide 14: Reconciliation Of GAAP And Non-GAAP Financial Measures
Reconciliation Of GAAP And Non-GAAP Financial Measures Set below are reconciliations of non-GAAP financial measures used in this investor presentation and conference call with their most directly comparable GAAP measures. Three Months Ended March 31, Variance (unaudited, in thousands) 2023 (1) 2022
Slide 15: Reconciliation Of GAAP And Non-GAAP Financial Measures
Reconciliation Of GAAP And Non-GAAP Financial Measures Set below are reconciliations of non-GAAP financial measures used in this investor presentation and conference call with their most directly comparable GAAP measures. Period Ended (unaudited, in thousands) March 31, 2024 Reconciliation of Long-t
Slide 16: Reconciliation Of GAAP And Non-GAAP Financial Measures
Reconciliation Of GAAP And Non-GAAP Financial Measures Set below are reconciliations of non-GAAP financial measures used in this investor presentation and conference call with their most directly comparable GAAP measures. Three Months Ended March 31, Variance (unaudited, in thousands) 2024 2023 % Re