Rollins, Inc. · NYSE:ROL
Rollins — Baird 2022 Global Industrial Conference
14 slides from Rollins's conference presentation, Nov 9, 2022
Slide 1: Rollins, Inc. Baird 2022 Global Industrial Conference
Rollins, Inc. Baird 2022 Global Industrial Conference Kenneth Krause, EVP and CFO November 9, 2022
Slide 2: Safe Harbor
Safe Harbor Except for historical information, certain statements in this presentation may contain forward-looking statements that involve risks and uncertainties concerning the business and financial results of Rollins, Inc. Forward-looking statements include, without limitation, all projections an
Slide 3: Rollins Overview
Rollins Overview Rollins, Inc. is a premier global consumer Key Metrics1 and commercial services company. We have consistently grown through challenging economic cycles while focusing on providing exceptional customer service. $2.6B 51.5% 21.6% ~$20B Our services are aimed at controlling pests and h
Slide 4: Protecting where we live, work and play with our strong brands
Protecting where we live, work and play with our strong brands RESIDENTIAL • Market Leadership in Residential Pest Control globally Residential • Focused on health, safety and protection of property Pest Control • Recession resistant – contract-based revenue and non- discretionary purchase COMMERCIA
Slide 5: Strong Business Model and Disciplined Execution
Strong Business Model and Disciplined Execution Consistent Revenue Growth Focus on Value Creation Double digit revenue growth across all major Focused on driving strong incremental margins service lines YTD September 2022 and margin expansion 50% + Potential for Improved ~80% 7% Gross Margin Margin
Slide 6: Resilient Business Model
Resilient Business Model 2000 – 2021 Revenue Performance 000’s $2,500,000 20+ Years of Revenue Growth – approximate 7% CAGR with similar growth over the past 5 years $2,000,000 Consistent performance through all cycles $1,500,000 Great Recession 2008-2009 5.2% Growth $1,000,000 Industrial Recession
Slide 7: Free Cash Flow Conversion
A Consistent Focus on Cash Generation Consistently Growing Free Cash Flow at Double Digit Pace Generating Free Cash Flow In Excess of Net Income 180% $400,000 158% 160% $350,000 144% 15.5% CAGR Free Cash Flow Conversion1 140% $300,000 118% Free Cash Flow1 (000s) 112% 114% 120% 107% $250,000 15.5% CA
Slide 8: Balanced Capital Allocation
Balanced Capital Allocation Total Capital Deployed Consistent Focus on Acquisitions 2017 -2021: $1.9B YTD Q3 2022: $281M • $110M for 27 acquisitions YTD • Pipeline of potential acquisitions is robust • Funding 2022 acquisitions through Free Cash Flow A focus on Paying a Growing Dividend • 2022 cash
Slide 9: Q3 2022 Performance Update
Q3 2022 Performance Update Q3 2022 Highlights $730M $170M $108M $120M Revenues Adjusted EBITDA1 GAAP Net Income Free Cash Flow1 +12.2% growth 23.3% margin | +10 bps +14.7% growth 60+% growth • Strong growth across all major service lines • Margin improvement despite higher casualty reserves • Double
Slide 10: Why Invest in Rollins?
Why Invest in Rollins? • 20+ Years of consistent growth; Regardless of economic cycle • Reliable mid-high single digit growth • ~80% recurring revenue in pest control • M&A – Strong track record of successfully acquiring in a fragmented market with over 20,000 competitors in the United States alone
Slide 11: Appendix
Appendix Reconciliation of GAAP and non-GAAP Financial Measures The Company has used the non-GAAP financial measures of gross margin (excluding depreciation & amortization), adjusted EBITDA, adjusted EBITDA margin, organic revenues, free cash flow, and free cash flow conversion in this presentation.
Slide 12: Appendix
{unaudited in thousands) Reconciliation of Operating Income to Gross Margin (excluding depreciation & amortization) Operating income Sales, general and administrative Depreciation and amortization Gross Profit excluding depreciation & amortization) Revenues Gross Margin (excluding depreciation & amo
Slide 13: Appendix
(unaudited in thousands) Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Net cash provided by operating activities Capital expenditures Free Cash Flow Net income Free Cash Flow Conversion Appendix Twelve Months Ended Nine Months Ended Three Months Ended Twelve Months En
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