Slide 1: Third Quarter 2022 Earnings Webcast
Third Quarter 2022 Earnings Webcast October 26, 2022 1
Slide 2: Safe Harbor
Safe Harbor Our earnings release discusses our business outlook and contains certain forward-looking statements. These particular forward-looking statements and all other statements that have been made on this call, excluding historical facts, are subject to a number of risks and uncertainties, and
Slide 3: Management team presenters
Add KK picture Gary Rollins Jerry Gahlhoff Jr Chairman and CEO President and COO John Wilson Ken Krause Vice Chairman EVP, CFO and Treasurer 3
Slide 4: Rollins Overview
Rollins Overview Rollins is a premier global consumer and commercial services company. We have Key Metrics1 consistently grown through challenging economic cycles while focusing on providing exceptional customer service. Our services are aimed at controlling pests $2.6B 51.6% 21.6% and helping our c
Slide 5: Key Messages
Key Messages • The team had another strong quarter, consisting of double-digit sales and earnings increase • Total sales were up 12.2% in the quarter with broad based growth across all major service offerings that drove 14.7% growth in GAAP net income • Operating cash flow was strong, well in excess
Slide 6: Q3 2022 Financial Results
Q3 2022 Financial Results $M, except per share data Revenues Adjusted EBITDA1 GAAP Net Income +12.2% +12.6% +14.7% • Revenue growth offset by casualty reserve increase • Effective tax rate was 25.7% compared to • Double digit revenue growth across all driven by certain asserted claims that evolved d
Slide 7: Revenue Growth
Revenue Growth $M Balanced growth across all major service lines 7 1These amounts are non-GAAP measures (see Appendix)
Slide 8: Cash Flows and Balance Sheet
Cash Flows and Balance Sheet Cash flow from operations ($M) Balance sheet highlights1 ($M) Cash and cash equivalents $122 Trade receivables $170 Financing receivables, short term $32 +15% Materials and supplies $29 Total assets $2,112 +60% Accounts payable $43 Total liabilities $916 • Continued stro
Slide 9: Effective Capital Allocation
Effective Capital Allocation Total capital deployed Key observations Q3’22: $227M YTD 22: $311M Acquisitions • $107M for 27 acquisitions YTD • Pipeline of potential acquisitions is robust • Funding acquisitions in 2022 through Free Cash Flow Capital Expenditures (Capex) • $23M Capex YTD Dividends •
Slide 10: Appendix: Reconciliation of GAAP and non-GAAP Financial Measures
Appendix Reconciliation of GAAP and non-GAAP Financial Measures The Company has used the non-GAAP financial measures of organic revenues, adjusted EBITDA, adjusted net income, adjusted earnings per share (“EPS”), organic revenues by type, and free cash flow in this presentation. Organic revenue is c
Slide 11: Appendix
Appendix (unaudited in thousands except share data) Three Months Ended Nine Months Ended ‘Three Months Ended September 30, September 30, December 31, Variance Variance 2022 2021 s % 2022 2021 s % 2021 Reconciliation of Net income to Adjusted Net Income and EPS Net income s 107,622 $ 93,853 13,769 47
Slide 12: Appendix
Appendix (unaudited in thousands) ‘Three Months Ended. Nine Months Ended September 30, September 30, Variance 2022 2021 s 2022 2021 $ Reconciliation of Revenues to Organic Revenues Revenues S$ 729,708 «$650,199 79,505 122 2,034,433 1,823,957 210,476 us Revenue growth from acquisitions (23,709) = (23
Slide 13: Appendix
Appendix (unaudited in thousands) ‘Three Months Ended Nine Months Ended September 30, September 30, Variance 2021 2020 s % 2021 2020 s % Reconciliation of Revenues to Organic Revenues Revenues s 650,199 $ 583,698 66,501 114 $ (1,823,957 $1,624,928 199,029 12.2 Revenue growth from acquisitions (12,68