Slide 1: First Quarter 2022 Earnings Webcast
First Quarter 2022 Earnings Webcast April 27, 2022 1
Slide 2: Forward Looking Statement
Forward Looking Statement 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 this call, excluding historical facts, are subject to a number of risks and unce
Slide 3: Management speakers
Gary Rollins Jerry Gahlhoff Jr Chairman and CEO President and COO John Wilson Julie Bimmerman Vice Chairman Interim CFO and Treasurer 3
Slide 4: Summary Income Statement including certain Non-GAAP Metrics
Summary Income Statement including certain Non-GAAP Metrics Summary Income Statement including certain Non-GAAP Metrics (000's) Q1 / YTD 2022 Q1 / YTD 2021 $ Change % Change Revenue $590,680 $535,554 $55,126 10.3% Net Income $72,445 $92,643 $ (20,198) (21.8%) EBITDA $117,796 $144,054 $ (26,258) (18.
Slide 5: Revenue Growth
Revenue Growth Actual Exchange Rate Residential Q1 / YTD 2022 Acquisition 4.4% Organic 5.8% Total 10.2% Commercial Q1 / YTD 2022 Acquisition 1.2% Organic 7.9% Total 9.1% Termite Q1 / YTD 2022 Acquisition 4.8% Organic 8.5% Total 13.3% Constant Exchange Rate Total Q1 / YTD 2022 Q1 / YTD 2022 Acquisiti
Slide 6: Cost of Services Key Drivers and Gross Margin
Cost of Services Key Drivers and Gross Margin Gross Margin (000's) Q1 2022 Q1 2021 Pt Change Revenue $590,680 $535,554 Cost of Services provided exclusive of depreciation and amortization $295,378 $261,551 Gross Margin 50.0% 51.2% (1.2) Fleet Key Drivers Q1 2022 Covid Impact Q1 2022 Q1 2022 Q1 2022
Slide 7: Sales, General & Administrative (SG&A)
Sales, General & Administrative (SG&A) SG&A as a % of Revenue (000's) Q1 / YTD 2022 Q1 / YTD 2021 Pt Change SG&A Expense $178,785 $162,208 Revenue $590,680 $535,554 SG&A % of Revenue 30.3% 30.3% 0.0% 7
Slide 8: Cash Related
Cash Related Cash Related (000's) Q1 2022 Q1 2021 % Change Dividends Dividends $49,205 $39,389 25% Per Share % Increase Cash used for Acquisitions $13,223 $16,978 (22%) All Cash ended 2022 $258,338 Approved Dividends $ 0.10 25% Cash held by foreign subsidiaries $86,052 Free Cash Flow (000's) Q1 2022
Slide 9: 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 adjusted net income and adjusted earnings per share (“EPS”) in this earnings release, and the non- GAAP financial measures of organic revenues, organic revenues by type, organic re
Slide 10: Appendix: Net Income to Adjusted Net Income and EBITDA
Appendix (unaudited in thousands except EPS) Three Months Ended March 31, Variance 2022 2021 $ % Reconciliation of Net Income to Adjusted Net Income and EPS Net income s 72,445 § 92,643 $ (20,198) (21.8) Property disposition gains (net of tax $22,893) = (31,058) 31,058 = Adjusted income taxes on exc
Slide 11: Appendix: Revenues to Organic Revenues Reconciliation
Appendix Three Months Ended March 31 Variance 2022 2021 $ % Reconciliation of Revenues to Organic Revenues and Organic Revenues in Constant Dollars Revenues $ 590,680 $ 535,554 $ 55,126 103 Revenue growth from acquisitions (17,567) = (17,567) = Organic revenues 373,113 535,554 37,559 7.0 Adjustment