Slide 1: Third Quarter 2023 Earnings Webcast Presentation
Third Quarter 2023 Earnings Webcast Presentation Rollins, Inc. October 26, 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 before interest, taxes, depreciation and amortization (“EBITDA”), EBITDA
Slide 4: Third Quarter Overview
THIRD QUARTER OVERVIEW Q3 2023 FINANCIALS1 HIGHLIGHTS Revenue Revenue Growth Delivered double-digit revenue growth across all service lines, organic revenue1 was up over 8% and M&A drove $840M 15.2% 7% growth 150 bps improvement in gross margin. Organic and Gross Adjusted inorganic contributions Mar
Slide 5: Balanced 2023 Outlook
BALANCED 2023 OUTLOOK WHAT WE ARE SEEING WHAT WE EXPECT Organic Growth Continued Growth Healthy market growth and strong execution Focused on delivering strong growth in Q4 driving strong organic growth with good performance across all major service areas Margin Expansion Opportunities Continued exe
Slide 6: Revenue Growth Trends
REVENUE GROWTH TRENDS HIGHLIGHTS Resilient business that has grown YOY REVENUE GROWTH COVID Pandemic through economic cycles Great Financial Crisis Industrial Slowdown Growth acceleration began pre- COVID and has continued • Consistently delivered HSD organic growth over the last 11 quarters Leverag
Slide 7: Quarterly Revenue Growth
QUARTERLY REVENUE GROWTH +11.0% +15.2% +11.8% +19.7% $840 $12M organic1 $25M organic1 $4M acquisition1 $4M acquisition1 $23M organic1 $43M acquisition1 Double-Digit Revenue Growth Across All Three Service Lines 1These amounts are non-GAAP measures (see Appendix)
Slide 8: Quarterly Adjusted EBITDA Margin
QUARTERLY ADJUSTED EBITDA MARGIN 1 HIGHLIGHTS Gross Profit • Gross margin 53.8% +150 bps • Pricing continues to outpace inflation +50 bps 24.8% • More favorable auto claims experience drives +70 bps • Fox acquisition +30 bps accretive SG&A • Benefits from leverage on people costs and improved auto c
Slide 9: Cash Flow and Use of Liquidity
CASH FLOW AND USE OF LIQUIDITY HIGHLIGHTS Cash Generation CASH FLOW FROM CASH FLOW AND • Free Cash Flow Conversion was ~94% OPERATIONS LIQUIDITY • Strong balance sheet with CAPEX ($7M) modest levels of debt $128M $127M DIVIDENDS ($64M) Acquisitions • Closed 4 acquisitions in Q3 and 19 year to date S
Slide 10: Key Takeaways
KEY TAKEAWAYS Focus on Modernization Exceptional Performance Broadened banking relationships and expanded Healthy pipeline of acquisitions, Fox acquisition revolver from $200 million to $1 billion in early 2023 leading to robust growth from M&A Executed restructuring program in home office to improv
Slide 11: Appendix
APPENDIX
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. (1) Consists of expenses resulting from the amortization of T
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. Three Months Ended September 30, Nine Months Ended September
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. Three Months Ended September 30, Nine Months Ended September
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 our earnings release and conference call with their most comparable GAAP measures. Three Months Ended September 30, Nine Months Ended September
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 our earnings release and conference call with their most comparable GAAP measures. Period Ended September 30, (unaudited, in thousands) 2023 Rec
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