Slide 1: Fourth Quarter and Full Year 2024 Earnings Webcast Presentation
Fourth Quarter and Full Year 2024 Earnings Webcast Presentation Rollins, Inc. February 13, 2025 1 © 2024 Rollins, Inc. All rights reserved.
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 A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the mos
Slide 4: Full Year 2024 Results
Full Year 2024 Results Other 2024 Highlights $3.4B 10.3% • Solid growth across all major service Revenue up lines. • Organic growth of 7.9%, $0.99 11.2% acquisitions drove remaining Adjusted up growth, partially offset by EPS1 divestitures of 0.7%. • Healthy gross margin and $580M 17.0% Free improve
Slide 5: Q4 2024 Results
Q4 2024 Results Other Q4 Highlights Revenue $832M up 10.4% • Strong growth across all major service lines • Organic growth of 8.5%, Adjusted EPS1 $0.23 up 9.5% acquisitions drove remaining growth, partially offset by divestitures of 0.5%. $184M 29.9% Free • Gross margin improvement of 40 Cash up bps
Slide 6: FY 2024 Revenue Growth
FY 2024 Revenue Growth +5.2% organic1 +8.3% organic1 +12.2% organic1 +4.5% acquisition1 +2.4% acquisition1 +1.4% acquisition1 (in millions) -0.8% divested1 +10.3% -0.8% divested1 +13.6% total +8.9% total +9.9% total $83 $6 $3,389 $102 $125 $3,073 $74M organic1 $86M organic1 $74M organic1 $24M acquis
Slide 7: Q4 Revenue Growth
Q4 Revenue Growth +7.2% organic1 +14.9% organic1 (in millions) +2.7% acquisition1 +1.7% acquisition1 +6.5% organic1 +10.4% -0.7% divested1 +16.6% total +2.6% acquisition1 +9.2% total -0.7% divested1 $25 $1 $832 +8.4% total $24 $29 $22M organic1 $754 $19M organic1 $2M acquisition1 $7M acquisition1 $2
Slide 8: FY 2024 Adjusted EBITDA Margin
FY 2024 Adjusted EBITDA Margin1 HIGHLIGHTS Gross Profit • Gross margin of 52.7% • Pricing continues to outpace inflation 0.2% +30 bps • Improvement across several key cost 0.5% categories 0.0% 22.8% -0.4% Adj. SG&A1 22.5% • Leverage in administrative costs, offset by incremental investments in Selli
Slide 9: Q4 Adjusted EBITDA Margin
Q4 Adjusted EBITDA Margin1 HIGHLIGHTS Gross Profit 0.2% • Gross margin 51.3% • Leverage from people and materials & 0.4% supplies offset pressure from higher insurance-related costs due to developments on legacy auto claims -20 bps in December 22.0% Adj. SG&A1 -0.7% 0.1% 21.8% • Leverage on administ
Slide 10: Free Cash Flow and Capital Allocation
Free Cash Flow and Capital Allocation Q4 & FY 2024 Free Cash Flow FY 2024 Uses of Cash Flow +17% Share Capex $28 $580M Repurchases $12 +30% $184M $496M $142M M&A $157 Dividends $298 Q4 2023 Q4 2024 FY 2023 FY 2024 ~130% ~174% ~114% ~124% Cash Generation Acquisitions • FY Free Cash Flow Conversion wa
Slide 11: Investment-Grade Corporate Credit Ratings
Investment-Grade Corporate Credit Ratings As part of our modernization journey, we have received BALANCEDinvestment-grade corporate CAPITAL ALLOCATION credit FRAMEWORK ratings from Fitch and S&P Fitch S&P BBB+ BBB Provides Access Point to Debt Capital Markets as We Execute Our Growth Strategy 11 © 2
Slide 12: Investment-Grade Financial Policy
Investment-Grade Financial Policy INVESTMENT GRADE FINANCIAL POLICY BALANCED CAPITAL ALLOCATION FRAMEWORK LEVERAGE M&A Committed to a Solid Investment Grade Rating Through Focus on Using Free Cash Flow to Fund Growth, Disciplined Growth & Conservative Leverage Complemented by Access to Credit Market
Slide 13: Key Takeaways
Key Takeaways Focus on Modernization Exceptional Performance Margins Remain a Focus Balance Sheet Provides Flexibility Hiring key talent across the Full year 2024 organic growth of Focus on pricing and Healthy balance sheet positions organization to accelerate 7.9% driven by robust organic productiv
Slide 14: Growth Algorithm
Growth Algorithm Last 3 Years 2025E Medium-Term Outlook Above-Market ~7% to 8% Organic Revenue Growth 12% ~2% to 3% M&A Organic Growth + M&A Adj. Incremental Approaching 24% ~30-35% EBITDA Margin1 ~30% FCF Conversion1 119% >100% >100% 14 1 These amounts are non-GAAP measures (see Appendix) © 2024
Slide 15: Appendix
Appendix 15 © 2024 Rollins, Inc. All rights reserved.
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. 1) Consists of expenses resulting from the ( amortization of certain intangibl
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 December 31, Twelve Months Ended December 31, Variance Vari
Slide 18: 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 December 31, Twelve Months Ended December 31, Variance Vari
Slide 19: 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. Twelve Months Ended (unaudited, in thousands) December 31, 2024 (1) As of Dece
Slide 20: 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. 20 © 2024 Rollins, Inc. All rights reserved.