Slide 1: Second Quarter 2022 Earnings Webcast
Second Quarter 2022 Earnings Webcast July 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 uncer
Slide 3: Gary Rollins, Jerry Gahlhoff Jr, John Wilson, Julie Bimmerman
Gary Rollins Jerry Gahlhoff Jr Chairman and CEO President and COO John Wilson Julie Bimmerman Vice Chairman GVP Finance and IR, 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) Q2 2022 Q2 2021 $ Change % Change YTD 2022 YTD 2021 $ Change % Change Revenue $714,049 $638,204 $75,845 11.9% $1,304,729 $1,173,758 $130,971 11.2% Net Income $100,299 $98,8
Slide 5: Revenue Growth
Revenue Growth Actual Exchange Rate Residential Q2 YTD 2022 Acquisition 4.0% 4.1% Organic 7.0% 6.6% Total 11.0% 10.7% Commercial Q2 YTD 2022 Acquisition 1.9% 1.5% Organic 9.3% 8.7% Total 11.2% 10.2% Termite Q2 YTD 2022 Acquisition 3.8% 4.3% Organic 11.2% 9.9% Total 15.0% 14.2% Constant Exchange Rate
Slide 6: Cost of Services Key Drivers and Gross Margin
Cost of Services Key Drivers and Gross Margin Fleet Key Drivers in Q2 2022 Miles % Increase $ Increase Pt Increase Fuel Costs 60.5% $6.8M 0.77 Vehicle Repairs 36.7% $1.7M 0.16 Average Price per Gallon 50.6% Miles Reduced 5.8+ M ($1.3M) Average Price per Gallon Increase on Miles Reduced $400K Net Fue
Slide 7: Sales, General & Administrative (SG&A)
Sales, General & Administrative (SG&A) SG&A as a % of Revenue (000's) Q2 2022 Q2 2021 % Change SG&A Expense $219,987 $183,482 Revenue $714,049 $638,204 SG&A % of Revenue 30.8% 28.7% 2.1% Q2 2022 Key Drivers % Increase Pt Change Travel 65.7% (0.1) Advertising (2.0) 7
Slide 8: Cash Related
Cash Related Free Cash Flow (000's) Q2 2022 Q2 2021 $ Change % Change Net Cash Provided by Operating Activities* $127,285 $99,719 $27,566 27.6% Capital Expenditures ($7,886) ($5,403) ($2,483) (45.9%) Free Cash Flow $119,399 $94,316 $25,083 26.6% * This increase was primarily driven by timing of inco
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 organic revenues, adjusted net income and adjusted earnings per share (“EPS”) in this earnings release, and the non-GAAP financial measures of organic revenues by type, organic rev
Slide 10: Appendix: Reconciliation of Net Income to Adjusted Net Income and EBITDA
Appendix (unaudited in thousands except EPS) ‘Three Months Ended Six Months Ended June 30, June 30, Variance Variance 2022 2021 s % 2022 2021 8 % Reconciliation of Net Income to Adjusted Net Income and EPS Net income $ 100299 $ 98854 $ 1,445 15 $ 172,744 $ 191497 $ (18,753) 0.8) Property disposition
Slide 11: Appendix
Appendix Certain immaterial changes have been made to the constant currency growth calculation from the initial presentation. 11