Rollins, Inc. · NYSE:ROL

Rollins — Stifel 2024 Cross Sector Insight Conference

13 slides from Rollins's conference presentation, Jun 5, 2024

  1. Slide 1: Stifel 2024 Cross Sector Insight Conference

    Stifel 2024 Cross Sector Insight Conference 2 Rollins, Inc. June 5, 2024 1 © 2024 Rollins, Inc. All rights reserved.

  2. 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

  3. 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,

  4. 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.

  5. 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

  6. 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

  7. 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

  8. Slide 8: Q1 2024 Results

    Q1 2024 Results Revenue of Other $748M up 14% Q1 Highlights • Double-digit growth across all major service lines 18% • Organic growth1 of 7.5% despite unfavorable weather Adjusted EPS1 of $0.20 up • in January; acquisitions drove remaining growth Growth accelerated through the quarter with organic g

  9. Slide 9: 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

  10. Slide 10: Appendix

    Appendix 10 © 2024 Rollins, Inc. All rights reserved.

  11. Slide 11: Non-GAAP Reconciliation

    Non-GAAP Reconciliation $MM 2000 2008 2010 2013 2015 2016 2018 2020 2021 2022 2023 Q1 2024 Revenue $647 $1,021 $1,137 $1,337 $1,485 $1,573 $1,822 $2,161 $2,424 $2,696 $3,073 $748 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 $435.0 $94.4 Plus: Income T

  12. Slide 12: Non-GAAP Reconciliation

    Non-GAAP Reconciliation $MM 2019 2021 2022 Q1 2023 2023 Q1 2024 Adj. SG&A SG&A $629.4 $727.5 $802.7 $196.4 $915.2 $223.1 Minus: Clark Pest Control acquisition-related expenses (2.7) - - - - - Minus: SEC Matter - (8.0) - - - - Minus: Fox Acquisition-related Expenses - - - - (3.1) (1.1) Adj. SG&A1 $62

  13. Slide 13: Non-GAAP Reconciliation

    Non-GAAP Reconciliation $MM Q1 2024 Q1 2023 Variance Organic Revenues $ % Revenues $748.3 $658.0 90.3 13.7 Revenues from Acquisitions (46.0) - (46.0) 7.0 Revenues of Divestitures - (4.8) 4.8 (0.8) Organic Revenues1 $702.3 $653.2 49.1 7.5 $MM Q1 2024 Q1 2023 Adj. Operating Income & Adj. Operating Inc

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