Rollins, Inc. · NYSE:ROL
Rollins — Q1 2023 Earnings Presentation
15 slides from Rollins's earnings presentation, Apr 27, 2023
Slide 1: First Quarter 2023 Earnings Webcast Presentation
First Quarter 2023 Earnings Webcast Presentation Rollins, Inc. April 27, 2023
Slide 2: Safe Harbor
SAFE HARBOR Statements in this presentation may contain forward- looking statements that involve risks and uncertainties concerning the business and financial results of Rollins, Inc. We have based these forward-looking statements largely on our current opinions, expectations, beliefs, plans, object
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, EBITDA, EBITDA margin, incremental margin and free cash flow in this earnings release. Organic revenue is calculated as revenue less acquisition
Slide 4: Rollins Overview
ROLLINS OVERVIEW Driven by a Service First and Revenue by Service Offering Key Metrics1 People Focused Culture Rollins is a premier global consumer and commercial services company. $2.8B 51.5% Gross Margin Revenues (excluding depreciation We have consistently grown through 21% & amortization) ch
Slide 5: Strong Business Model Driving Strong Results
STRONG BUSINESS MODEL DRIVING STRONG RESULTS Consistent Execution Driving Strong Results
Slide 6: Q1 2023 Income Statement Highlights
Q1 2023 INCOME STATEMENT Highlights A Solid Start to the Driving Incremental Outlook Year in Revenue Margins1 in Excess of 30% Positioned well to Q1 2023 Balanced growth deliver a strong year across all major Positive on price/cost in 2023 service categories in in Q1 Revenue Growth the quarter F
Slide 7: Quarterly Revenue Growth
QUARTERLY REVENUE GROWTH $M +14% $14M organic1 +12% $3M acquisition1 $21M organic1 +9% $4M acquisition1 $18M organic1 $6M acquisition1 Q1 2022 Residential Commercial Termite and Other Q1 2023 Revenue Ancillary Revenue Balanced Growth Across All Service Lines 1These amounts are non-GAAP measures (see
Slide 8: Quarterly EBITDA Margin
QUARTERLY EBITDA MARGIN $M +60 bps 21.2% +40 bps +30 bps 19.9% Q1 2022 Gross Profit SG&A Other Q1 2023 EBITDA Margin1 (excl D&A) Income EBITDA Margin1 EBITDA Margin Improvement Driven by Leverage Across the Income Statement 1These amounts are non-GAAP measures (see Appendix)
Slide 9: A Focus on Driving Strong Cash Flow
A FOCUS ON DRIVING STRONG CASH FLOW Observations Acquisitions 6 acquisitions in Q1 with total investment CASH FLOW FROM OPERATIONS USE OF OPERATING CASH FLOWS of $15 million Closed on Fox acquisition in April 2023 $8M CAPEX Dividends $15M ACQUISITIONS 30% increase vs. the same period a year ag
Slide 10: Fox Acquisition
FOX ACQUISITION Strategic Rationale Transaction • Closed on $350 million, inclusive of $32 million of contingent Overview consideration acquisition of Fox Pest Control Attractive financial profile Highly complementary end • Expect to provide $90-100 million of sales and $18-22 million of EBITDA
Slide 11: Key Takeaways
KEY TAKEAWAYS Talented and Engaged Team Exceptional Performance to Start Margins Remain a Focus Balance Sheet Provides Flexibility Delivers Strong Results the Year Healthy organic growth across Focus on pricing and Strong balance sheet Recognized as a top all major service lines productivity
Slide 12: Appendix
APPENDIX
Slide 13: Reconciliation of GAAP and non-GAAP Financial Measures
Reconciliation of GAAP and non-GAAP Financial Measures APPENDIX 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. (unaudited in thousands) Three Months Ended Twelve M
Slide 14: Reconciliation of GAAP and non-GAAP Financial Measures
Reconciliation of GAAP and non-GAAP Financial Measures APPENDIX 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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