Slide 1: Second Quarter 2024 Earnings Webcast Presentation
Second Quarter 2024 Earnings Webcast Presentation Rollins, Inc. July 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: Q2 2024 Results
Q2 2024 Results Other Revenue $892M +9% Q2 Highlights • Healthy growth across all major service lines • Organic growth1 of 7.7%; acquisitions drove remaining $0.27 +23% growth, offset by divestitures in Q4 2023 EPS of • Record gross margin of 54% and further leverage in SG&A drove 140 basis points o
Slide 5: Q2 Revenue Growth
Q2 Revenue Growth +11.8% +8.7% +9.9% $892 +6.3% $19M organic1 $22M organic1 $1M acquisition1 $21M organic1 $6M acquisition1 $7M acquisition1 ($3M) impact of divestiture1 ($3M) impact of divestiture1 Total Organic Revenue Growth of 7.7% Year-Over-Year Note: Figures may not foot due to rounding. © 202
Slide 6: Q2 Adj. EBITDA Margin
Q2 Adj. EBITDA Margin1 HIGHLIGHTS +140 bps Gross Profit 23.6% • Gross margin 54% • Positive on price cost equation • Healthy leverage across several cost categories, with the most notable contributions coming from insurance & claims, as well as fleet Adj. SG&A1 +60 bps Adj. SG&A1 • Saw leverage from
Slide 7: Cash Flow and Use of Liquidity
Cash Flow and Use of Liquidity HIGHLIGHTS Cash Generation Q2 & YTD 2024 Free Cash Flow1 YTD 2024 Uses of Cash Flow • Q2 Free Cash Flow +10% & Liquidity Conversion1 was ~105% • Strong balance sheet with $257M modest levels of debt -3% $234M ACQUISITIONS $141M ($82M) Acquisitions $136M • Closed 14 acq
Slide 8: 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 9: 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 10: Growth Algorithm
Growth Algorithm Last 3 Years 2024E Medium-Term Outlook Above-Market ~7% to 8% Organic Organic Growth Revenue Growth 12% ~2% to 3% M&A + ~9% to 11% M&A Adj. Incremental EBITDA Margin 1 ~27% ~30% ~30-35% FCF Conversion 1 ~112% Average > 100% > 100% © 2024 Rollins, Inc. All rights reserved. 1These amo
Slide 11: Appendix
APPENDIX 11
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 June 30, Six Months Ended June 30, (1) Consists of expenses
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 June 30, Six Months Ended June 30, Variance Variance (unaud
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 June 30, Six Months Ended June 30, Variance Variance (unaud
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. Three Months Ended June 30, Six Months Ended June 30, Variance Variance (unaud
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. Period Ended (unaudited, in thousands) June 30, 2024 Reconciliation of Long-te
Slide 17: 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 June 30, Variance Six Months Ended June 30, Variance (unaud