Slide 1: Fourth Quarter 2022 Earnings Webcast
Fourth Quarter 2022 Earnings Webcast February 16, 2023
Slide 2: Safe Harbor
SAFE HARBOR Our earnings release discusses our business outlook and contains certain forward-looking statements. These particular forward-looking statements and all other statements that have been made on our earnings call, excluding historical facts, are subject to a number of risks and uncertainti
Slide 3: Management Team
MANAGEMENT TEAM Jerry Gahlhoff, Jr. President and CEO John Wilson Ken Krause Vice Chairman EVP, CFO and Treasurer
Slide 4: Rollins Overview
ROLLINS OVERVIEW Rollins is a premier global consumer and commercial services company. We have consistently grown through challenging economic cycles while focusing on providing exceptional customer service. Our services are aimed at controlling pests and helping our customers protect their brands a
Slide 5: Long Term Annual Highlights
LONG TERM ANNUAL HIGHLIGHTS REVENUE $2,424 $2,696 OPERATING CASH FLOW $436 $402 $466 ($ in millions) ($ in millions) $2,161 $2,015 $1,822 $320 $1,573 $1,674 $286 $1,412 $1,485 $227 $235 $194 $196 12.2% 11.2% 10.6% 8.8% 7.2% 5.5% 5.2% 5.9% 6.4% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2014 2015 2
Slide 6: Q4 and Full Year Income Statement Highlights
Q4 AND FULL YEAR INCOME STATEMENT HIGHLIGHTS A solid finish to a strong year in revenue • Balanced growth across all major service categories in both the Q4 2022 Full Year 2022 quarter and full year • Residential was softer but we saw improvements to start 2023 • Pricing remains a focus and expect t
Slide 7: Quarterly Revenue Growth
QUARTERLY REVENUE GROWTH $M Balanced growth across all major service lines 1These amounts are non-GAAP measures (see Appendix)
Slide 8: Annual Revenue Growth
ANNUAL REVENUE GROWTH $M Balanced growth across all major service lines 1These amounts are non-GAAP measures (see Appendix)
Slide 9: Cash Flow from Operations and Use of Operating Cash Flows
CASH FLOW FROM OPERATIONS USE OF OPERATING CASH FLOWS OBSERVATIONS Fourth Quarter 2022 Acquisitions $8M CAPEX • 31 acquisitions in 2023; 4 $9M ACQUISITIONS made in fourth quarter $64M • Pipeline is robust and expect DIVIDENDS to be acquisitive in 2023 +20% $123M $70M NET DEBT $103M Dividends REPAYME
Slide 10: Appendix: Reconciliation of GAAP and non-GAAP Financial Measures
Appendix Reconciliation of GAAP and non-GAAP Financial Measures The Company has used the non-GAAP financial measures of organic revenues, adjusted EBITDA, adjusted net income and adjusted earnings per share (“EPS”) in this earnings release, and the non-GAAP financial measures of organic revenues by
Slide 11: Appendix
Appendix Thre e Months Ende d Ye ar Ende d De ce mbe r 31, De ce mbe r 31, Variance Variance 2022 2021 $ % 2022 2021 $ % Re conciliation of Ne t Income to Adjuste d Ne t Income and EPS Net income $ 84,269 $ 66,807 $ 17,462 26.1 $ 368,599 $ 356,565 $ 12,034 3.4 Property disposition gains (net of tax
Slide 12: Appendix
Appendix Thre e Months Ende d Ye ar Ende d De ce mbe r 31, De ce mbe r 31, Variance Variance 2022 2021 $ % 2022 2021 $ % Re conciliation of Re ve nue s to O rganic Re ve nue s Revenues $ 661,390 $ 600,343 61,047 10.2 $ 2,695,823 $ 2,424,300 271,523 11.2 Revenue growth from acquisitions (19,743) — (1
Slide 13: Appendix
Appendix Thre e Months Ende d Ye ar Ende d De ce mbe r 31, De ce mbe r 31, Variance Variance 2021 2020 $ % 2021 2020 $ % Re conciliation of Re ve nue s to O rganic Re ve nue s Revenues $ 600,343 $ 536,292 64,051 11.9 $ 2,424,300 $ 2,161,220 263,080 12.2 Revenue growth from acquisitions (15,910) — (1
Slide 14: Appendix: Calculation of Incremental Margins
Appendix Thre e Months Ende d Thre e Months Ende d Half Ye ar Ende d De ce mbe r 31, Se pte mbe r 30, De ce mbe r 31, 2022 2021 Incremental 2022 2021 2022 2021 Incremental Calculation of Incre me ntal Margins Adjusted EBIT DA $ 145,946 $ 122,157 $ 23,789 $ 169,945 $ 150,911 $ 315,891 $ 273,068 $ 42,
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