Slide 1: Second Quarter 2023 Earnings Webcast Presentation
Second Quarter 2023 Earnings Webcast Presentation Rollins, Inc. July 27, 2023
Slide 2: Safe Harbor
SAFE HARBOR Statements made in this earnings presentation may contain forward-looking statements that involve risks and uncertainties concerning the Company’s business and financial results. We have based these forward-looking statements largely on our current opinions, expectations, beliefs, plans,
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 net income, --.-% adjusted earnings per share (“EPS”), earnings Gross before interest, taxes, depreciation and amortization (“EBITDA”),
Slide 4: Second Quarter Overview
SECOND QUARTER OVERVIEW Q2 2023 FINANCIALS1 HIGHLIGHTS Revenue Revenue Growth Delivered double-digit revenue growth across all service lines, $821M 14.9% organic revenue1 was up 8% and M&A drove 7% growth Pricing outpaced inflation driving 40 bps improvement in Adjusted gross margin; Fox acquisition
Slide 5: Balanced 2023 Outlook
BALANCED 2023 OUTLOOK WHAT WE ARE SEEING WHAT WE EXPECT Organic Growth Continued Growth Healthy organic growth with good performance Focused on delivering strong growth in the second across all major service areas half Acquisitions Margin Expansion Opportunities Fox Acquisition completed in April wa
Slide 6: Quarterly Revenue Growth
QUARTERLY REVENUE GROWTH +13.7% +10.9% $14M organic1 $6M acquisition1 $22M organic1 $3M acquisition1 +18.5% $18M organic1 $42M acquisition1 Q2 2022 Double-Digit Revenue Growth Across All Service Lines 1These amounts are non-GAAP measures (see Appendix)
Slide 7: Quarterly Adjusted EBITDA Margin
QUARTERLY ADJUSTED EBITDA MARGIN 1 HIGHLIGHTS Gross Profit +40 bps -20 bps • Gross margin 53.2% • Pricing continues to outpace inflation -20 bps SG&A Insurance and • Insurance and claims was a 22.3%1 claims –40 bps 22.3%1 40-bps headwind Lower gains on • Invested more heavily in Pricing continues to
Slide 8: Cash Flow and Use of Liquidity
CASH FLOW AND USE OF LIQUIDITY HIGHLIGHTS CASH FLOW AND Cash Generation CASH FLOW FROM • Both Operating and Free OPERATIONS LIQUIDITY Cash Flow Conversion was $147M >125% CAPEX ($7M) • Strong balance sheet with DIVIDENDS ($64M) modest levels of debt post +15.8% Fox acquisition in April. NET DEBT BOR
Slide 9: Key Takeaways
KEY TAKEAWAYS Focus on Modernization Exceptional Performance Broadened banking relationships and expanded Robust organic growth across all service areas revolver from $200 million to $1 billion in early 2023 Healthy pipeline of acquisitions, Fox acquisition Filed Shelf in second quarter to provide l
Slide 10: Appendix
APPENDIX
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 our earnings release and conference call with their most comparable GAAP measures. (1) Consists of expenses resulting from the amortization of c
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 our earnings release and conference call with their most comparable GAAP measures.
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 our earnings release and conference call with their most comparable GAAP measures.
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 our earnings release and conference call with their most comparable GAAP measures.
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