Slide 1: Fourth Quarter 2021 Earnings Webcast
Fourth Quarter 2021 Earnings Webcast January 26, 2022 1
Slide 2: Forward Looking Statements
Forward Looking Statements 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: 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 Interim CFO and Treasurer 3
Slide 4: Revenue Growth
Revenue Growth Actual Exchange Rate Residential Q4 2021 YTD 2021 Acquisition 3.5% 2.9% Organic 8.4% 10.0% Total 11.9% 12.9% Commercial Q4 2021 YTD 2021 Acquisition 2.1% 2.8% Organic 9.3% 7.4% Total 11.4% 10.2% Termite Q4 2021 YTD 2021 Acquisition 3.5% 2.4% Organic 10.1% 11.9% Total 13.6% 14.3% Const
Slide 5: 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) Q4 2021 Q4 2020 $ Change % Change YTD 2021 YTD 2020 $ Change % Change Revenue $600,343 $536,292 $64,051 11.9% $2,424,300 $2,161,220 $263,080 12.2% Net Income $65,337 $62,61
Slide 6: Cost of Services Key Drivers and Gross Margin
Cost of Services Key Drivers and Gross Margin Cost of Services provided exclusive of depreciation and amortization (000's) Q4 2021 Q4 2020 $ Change % Change Cost of Services provided exclusive of depreciation and amortization $ 297,729 $ 266,344 $ 31,385 11.8% Gross Margin (000's) Q4 2021 Q4 2020 %
Slide 7: Sales, General & Administrative (SG&A) Key Drivers
Sales, General & Administrative (SG&A) Key Drivers SG&A as a % of Revenue (000's) Q4 2021 Q4 2020 % Change SG&A Expense $ 187,538 $ 159,086 Revenue $ 600,343 $ 536,292 SG&A % of Revenue 31.2% 29.7% 1.57% Key Drivers Q3 2021 Q4 2021 YTD 2021 SEC Settlement $3M $5M $8M Incremental Cybersecurity $3M $3
Slide 8: Cash Related and Certain Non-GAAP Metrics
Cash Related and Certain Non-GAAP Metrics Cash Related (000's) YTD 2021 YTD 2020 % Change Dividends $ 208,655 $ 160,487 30.0% Cash used for Acquisitions $ 139,007 $ 147,613 (5.8%) Gain related to the disposition of Clark properties $ (31,517) 2020 Cares Act Tax $ (30,347) All Cash ended 2021 $ 105,3
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 EPS in this earnings release, and the non-GAAP financial measures of organic revenues, organic revenues by type, organic revenues in constant dolla
Slide 10: Appendix: Net Income to Adjusted Net Income and EBITDA
Appendix (unaudited in thousands except EPS) Three Months Ended ‘Year Ended December 31, December 31, ‘Bete ‘Bowed 2021 2020 (Worse) % 2021 2020 (Worse) % Reconciliation of Net Income to Adjusted Net Income and EPS Net income S 68337 $ 2619 $ 2718, 43% S 350,687 $ 260,824 $ 89.863 345 % Property dis
Slide 11: Appendix: Revenues to Organic Revenues Reconciliation
Appendix VID 4th Quarter 3rd Quarter Ind Quarter__‘Ist Quarter Reconciliation of Revenues to Organic Revenues and Organic Revenues in Constant Dollars Revenues $ 2,424,300 S$ 600,343 $ 650,199 $ 638,204 $535,554 Revenue growth from acquisitions (58,587) 5,910) (12.689) (13.832) (16.156) Organic reve