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Rollins
ISIN: US7757111049
WKN: 859002
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Rollins · ISIN: US7757111049 · PR Newswire (ID: 20240724CL69043)
24 July 2024 10:05PM

ROLLINS, INC. REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS


Solid Revenue Growth and Margin Improvement Drives Double-Digit Earnings Growth

ATLANTA, July 24, 2024 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL) ("Rollins" or the "Company"), a premier global consumer and commercial services company, reported unaudited financial results for the second quarter of 2024.

Key Highlights

  • Second quarter revenues were $892 million, an increase of 8.7% over the second quarter of 2023 with organic revenues* increasing 7.7%.



  • Quarterly operating income was $182 million, an increase of 17.8% over the second quarter of 2023. Quarterly operating margin was 20.4%, an increase of 150 basis points over the second quarter of 2023. Adjusted operating income* was $187 million, an increase of 16.6% over the prior year. Adjusted operating income margin* was 20.9%, an increase of 140 basis points over the prior year.



  • Adjusted EBITDA* was $210 million, an increase of 15.3% over the prior year. Adjusted EBITDA margin* was 23.6%, an increase of 140 basis points over the second quarter of 2023.



  • Quarterly net income was $129 million, an increase of 17.5% over the prior year. Adjusted net income* was $132 million, an increase of 16.7% over the prior year.



  • Quarterly EPS was $0.27 per diluted share, a 22.7% increase over the prior year EPS of $0.22. Adjusted EPS* was $0.27 per diluted share, an increase of 17.4% over the prior year.



  • Operating cash flow was $145 million for the quarter. The Company invested $35 million in acquisitions, $9 million in capital expenditures, and paid dividends totaling $73 million.

*Amounts are non-GAAP financial measures. See the schedules below for a discussion of non-GAAP financial metrics including a reconciliation of the most directly comparable GAAP measure.

Management Commentary

"Our team delivered a strong second quarter with organic growth of 7.7 percent and an improving margin profile," said Jerry Gahlhoff, Jr., President and CEO. "Demand for our services remains strong and our pipeline for acquisitions is robust. Our results through the first six months of the year position us to deliver another year of healthy growth in 2024 and we are focused on continuous improvement to enhance profitability across our business. I would like to thank our team for their ongoing commitment to our customers," Mr. Gahlhoff added.

"It was encouraging to see solid performance in revenue and profitability in the quarter," said Kenneth Krause, Executive Vice President and CFO. "In addition to the growth Jerry mentioned, our team delivered strong improvement in margins, with a 140 basis point improvement in EBITDA margins and a strong incremental EBITDA margin performance. We continue to invest in our team and other resources aimed at capitalizing on a healthy market environment to drive further growth in our business," Mr. Krause concluded.

Three and Six Months Ended Financial Highlights





Three Months Ended June 30,



Six Months Ended June 30,











Variance











Variance

(in thousands, except per share data)

2024



2023



$

%



2024



2023



$

%

GAAP Metrics



























Revenues

$ 891,920



$ 820,750



$  71,170

8.7 %



$  1,640,269



$  1,478,765



$  161,504

10.9 %

Gross profit (1)

$ 481,635



$ 436,559



$  45,076

10.3 %



$   864,426



$   767,732



$    96,694

12.6 %

Gross profit margin (1)

54.0 %



53.2 %





80 bps



52.7 %



51.9 %





80 bps

Operating income

$ 182,377



$ 154,789



$  27,588

17.8 %



$   314,801



$   267,029



$    47,772

17.9 %

Operating income margin

20.4 %



18.9 %





150 bps



19.2 %



18.1 %





110 bps

Net income

$ 129,397



$ 110,143



$  19,254

17.5 %



$   223,791



$   198,377



$    25,414

12.8 %

EPS

$      0.27



$      0.22



$      0.05

22.7 %



$        0.46



$        0.40



$        0.06

15.0 %

Operating cash flow

$ 145,115



$ 147,413



$    (2,298)

(1.6) %



$   272,548



$   248,186



$    24,362

9.8 %





























Non-GAAP Metrics



























Adjusted operating income (2)

$ 186,596



$ 160,050



$  26,546

16.6 %



$   324,285



$   272,290



$    51,995

19.1 %

Adjusted operating margin (2)

20.9 %



19.5 %





140 bps



19.8 %



18.4 %





140 bps

Adjusted net income (2)

$ 132,229



$ 113,299



$  18,930

16.7 %



$   230,586



$   198,026



$    32,560

16.4 %

Adjusted EPS (2)

$      0.27



$      0.23



$      0.04

17.4 %



$        0.48



$        0.40



$        0.08

20.0 %

Adjusted EBITDA (2)

$ 210,088



$ 182,275



$  27,813

15.3 %



$   370,871



$   317,017



$    53,854

17.0 %

Adjusted EBITDA margin (2)

23.6 %



22.2 %





140 bps



22.6 %



21.4 %





120 bps

Free cash flow (2)

$ 136,419



$ 140,638



$    (4,219)

(3.0) %



$   256,681



$   233,775



$    22,906

9.8 %



(1) Exclusive of depreciation and amortization

(2) Amounts are non-GAAP financial measures. See the appendix to this release for a discussion of non-GAAP financial metrics including a reconciliation of the most directly comparable GAAP measure.

About Rollins, Inc.:

Rollins, Inc. (ROL) is a premier global consumer and commercial services company.  Through its family of leading brands, the Company and its franchises provide essential pest control services and protection against termite damage, rodents, and insects to more than 2.8 million customers in North America, South America, Europe, Asia, Africa, and Australia, with more than 20,000 employees from more than 800 locations. Rollins is parent to Orkin, HomeTeam Pest Defense, Clark Pest Control, Northwest Exterminating, McCall Service, Trutech, Critter Control, Western Pest Services, Waltham Services, OPC Pest Services, The Industrial Fumigant Company, PermaTreat, Crane Pest Control, Missquito, Fox Pest Control, Orkin Canada, Orkin Australia, Safeguard (UK), Aardwolf Pestkare (Singapore), and more. You can learn more about Rollins and its subsidiaries by visiting www.rollins.com

Cautionary Statement Regarding Forward-Looking Statements

This press release 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 current opinions, expectations, intentions, beliefs, plans, objectives, assumptions and projections about future events and financial trends affecting the operating results and financial condition of our business. Although we believe that these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions, or expectations. Generally, statements that do not relate to historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. The words "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "should," "will," "would," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, statements regarding: expectations with respect to our financial and business performance; demand for our services; our pipeline of acquisitions; continuous improvement initiatives enhancing profitability; and a balanced capital allocation program.

These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts, and assumptions, and involve a number of judgments, risks and uncertainties. Important factors could cause actual results to differ materially from those indicated or implied by forward-looking statements including, but not limited to, those set forth in the sections entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and may also be described from time to time in our future reports filed with the SEC.

Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required by law.

Conference Call

Rollins will host a conference call on Thursday, July 25, 2024 at 8:30 a.m. Eastern Time to discuss the second quarter 2024 results. The conference call will also broadcast live over the internet via a link provided on the Rollins, Inc. website at www.rollins.com. Interested parties can also dial into the call at 1-877-869-3839 (domestic) or +1-201-689-8265 (internationally) with conference ID of 13747513. For interested individuals unable to join the call, a replay will be available on the website for 180 days.

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(in thousands)

(unaudited)





June 30,

2024



December 31,

2023

ASSETS







Cash and cash equivalents

$      106,697



$      103,825

Trade receivables, net

205,183



178,214

Financed receivables, short-term, net

39,959



37,025

Materials and supplies

37,925



33,383

Other current assets

84,528



54,192

Total current assets

474,292



406,639

Equipment and property, net

129,115



126,661

Goodwill

1,116,215



1,070,310

Intangibles, net

545,979



545,734

Operating lease right-of-use assets

371,018



323,390

Financed receivables, long-term, net

85,498



75,909

Other assets

44,385



46,817

Total assets

$   2,766,502



$   2,595,460

LIABILITIES







Accounts payable

$        54,075



$        49,200

Accrued insurance – current

49,246



46,807

Accrued compensation and related liabilities

107,606



114,355

Unearned revenues

196,690



172,380

Operating lease liabilities – current

105,905



92,203

Other current liabilities

96,428



101,744

Total current liabilities

609,950



576,689

Accrued insurance, less current portion

57,602



48,060

Operating lease liabilities, less current portion

267,639



233,369

Long-term debt

502,043



490,776

Other long-term accrued liabilities

93,210



90,999

Total liabilities

1,530,444



1,439,893

STOCKHOLDERS' EQUITY







Common stock

484,314



484,080

Retained earnings and other equity

751,744



671,487

Total stockholders' equity

1,236,058



1,155,567

Total liabilities and stockholders' equity

$   2,766,502



$   2,595,460

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except per share data)

(unaudited)





Three Months Ended June 30,



Six Months Ended June 30,



2024



2023



2024



2023

REVENUES















Customer services

$      891,920



$      820,750



$   1,640,269



$   1,478,765

COSTS AND EXPENSES















Cost of services provided (exclusive of

depreciation and amortization below)

410,285



384,191



775,843



711,033

Sales, general and administrative

271,547



255,331



494,604



451,762

Depreciation and amortization

27,711



26,439



55,021



48,941

Total operating expenses

709,543



665,961



1,325,468



1,211,736

OPERATING INCOME

182,377



154,789



314,801



267,029

Interest expense, net

7,775



4,785



15,500



5,250

Other income, net

(412)



(1,019)



(351)



(5,733)

CONSOLIDATED INCOME BEFORE INCOME

TAXES

175,014



151,023



299,652



267,512

PROVISION FOR INCOME TAXES

45,617



40,880



75,861



69,135

NET INCOME

$      129,397



$      110,143



$      223,791



$      198,377

NET INCOME PER SHARE - BASIC AND

DILUTED

$           0.27



$           0.22



$           0.46



$           0.40

Weighted average shares outstanding - basic

484,244



492,700



484,187



492,593

Weighted average shares outstanding - diluted

484,419



492,891



484,356



492,764

DIVIDENDS PAID PER SHARE

$           0.15



$           0.13



$           0.30



$           0.26

 

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED CASH FLOW INFORMATION

(in thousands)

(unaudited)





Three Months Ended June 30,



Six Months Ended June 30,



2024



2023



2024



2023

OPERATING ACTIVITIES















Net income

$      129,397



$      110,143



$      223,791



$      198,377

Depreciation and amortization

27,711



26,439



55,021



48,941

Change in working capital and other operating

activities

(11,993)



10,831



(6,264)



868

Net cash provided by operating activities

145,115



147,413



272,548



248,186

INVESTING ACTIVITIES















Acquisitions, net of cash acquired

(34,522)



(312,412)



(81,654)



(327,892)

Capital expenditures

(8,696)



(6,775)



(15,867)



(14,411)

Other investing activities, net

2,062



1,155



3,900



10,681

Net cash used in investing activities

(41,156)



(318,032)



(93,621)



(331,622)

FINANCING ACTIVITIES















Net (repayments) borrowings

(9,000)



275,000



11,000



285,000

Payment of dividends

(72,578)



(63,943)



(145,167)



(127,996)

Other financing activities, net

(28,054)



220



(39,719)



(16,809)

Net cash (used in) provided by financing activities

(109,632)



211,277



(173,886)



140,195

Effect of exchange rate changes on cash and

cash equivalents

(601)



1,586



(2,169)



2,642

Net (decrease) increase in cash and cash

equivalents

$        (6,274)



$        42,244



$          2,872



$        59,401

APPENDIX

Reconciliation of GAAP and non-GAAP Financial Measures

The Company has used the non-GAAP financial measures of organic revenues, organic revenues by type, adjusted operating income, adjusted operating margin, adjusted net income, adjusted earnings per share ("EPS"), earnings before interest, taxes, depreciation and amortization ("EBITDA"), EBITDA margin, Adjusted EBITDA, adjusted EBITDA margin, incremental EBITDA margin, adjusted incremental EBITDA margin, free cash flow, free cash flow conversion, net debt, net leverage ratio, and adjusted sales, general and administrative expenses ("SG&A") in this earnings release. Organic revenue is calculated as revenue less the revenue from acquisitions completed within the prior 12 months and excluding the revenue from divested businesses. Acquisition revenue is based on the trailing 12-month revenue of our acquired entities. Adjusted operating income and adjusted operating income margin are calculated by adding back to the GAAP measures those expenses resulting from the amortization of certain intangible assets and adjustments to the fair value of contingent consideration resulting from the acquisition of Fox Pest Control ("Fox"). Adjusted net income and adjusted EPS are calculated by adding back to the GAAP measure amortization of certain intangible assets and adjustments to the fair value of contingent consideration resulting from the acquisition of Fox and excluding gains and losses on the sale of non-operational assets and by further subtracting the tax impact of those expenses, gains, or losses. Adjusted EBITDA and adjusted EBITDA margin are calculated by adding back to the GAAP measures those expenses resulting from the adjustments to the fair value of contingent consideration resulting from the acquisition of Fox and excluding gains and losses on the sale of non-operational assets. Incremental margin is calculated as the change in EBITDA divided by the change in revenue. Adjusted incremental margin is calculated as the change in adjusted EBITDA divided by the change in revenue. Free cash flow is calculated by subtracting capital expenditures from cash provided by operating activities. Free cash flow conversion is calculated as free cash flow divided by net income. Net debt is calculated as total long-term debt less cash and cash equivalents. Net leverage ratio is calculated by dividing net debt by trailing twelve-month EBITDA. Adjusted SG&A is calculated by removing the adjustments to the fair value of contingent consideration resulting from the acquisition of Fox. These measures should not be considered in isolation or as a substitute for revenues, net income, earnings per share or other performance measures prepared in accordance with GAAP.

Management uses adjusted operating income, adjusted operating income margin, adjusted net income, adjusted EPS, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, incremental EBITDA margin, adjusted incremental EBITDA margin, and adjusted SG&A as measures of operating performance because these measures allow the Company to compare performance consistently over various periods. Management also uses organic revenues, and organic revenues by type to compare revenues over various periods excluding the impact of acquisitions and divestitures. Management uses free cash flow to demonstrate the Company's ability to maintain its asset base and generate future cash flows from operations. Management uses free cash flow conversion to demonstrate how much net income is converted into cash. Management uses net debt as an assessment of overall liquidity, financial flexibility, and leverage. Net leverage ratio is useful to investors because it is an indicator of our ability to meet our future financial obligations. Management believes all of these non-GAAP financial measures are useful to provide investors with information about current trends in, and period-over-period comparisons of, the Company's results of operations. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP.

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 most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.

Set forth below is a reconciliation of the non-GAAP financial measures used in this earnings release with their most directly comparable GAAP measures.

(unaudited, in thousands, except per share data and margins)





Three Months Ended June 30,



Six Months Ended June 30,











Variance











Variance



2024



2023



$



%



2024



2023



$



%

Reconciliation of Operating Income to Adjusted Operating Income and Adjusted Operating Income Margin

































Operating income

$   182,377



$   154,789











$   314,801



$  267,029









Fox acquisition-related expenses (1)

4,219



5,261











9,484



5,261









Adjusted operating income

$   186,596



$   160,050



26,546



16.6



$   324,285



$  272,290



51,995



19.1

Revenues

$   891,920



$   820,750











$  1,640,269



$  1,478,765









Operating income margin

20.4 %



18.9 %











19.2 %



18.1 %









Adjusted operating margin

20.9 %



19.5 %











19.8 %



18.4 %









































Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS (5)

































Net income

$   129,397



$   110,143











$   223,791



$  198,377









Fox acquisition-related expenses (1)

4,219



5,261











9,484



5,261









Gain on sale of assets, net (2)

(412)



(1,019)











(351)



(5,733)









Tax impact of adjustments (3)

(975)



(1,086)











(2,338)



121









Adjusted net income

$   132,229



$   113,299



18,930



16.7



$   230,586



$  198,026



32,560



16.4

EPS - basic and diluted

$        0.27



$        0.22











$        0.46



$        0.40









Fox acquisition-related expenses (1)

0.01



$        0.01











0.02



0.01









Gain on sale of assets, net (2)



$           —













(0.01)









Tax impact of adjustments (3)



$           —





















Adjusted EPS - basic and diluted (4)

$        0.27



$        0.23



0.04



17.4



$        0.48



$        0.40



0.08



20.0

Weighted average shares outstanding

– basic

484,244



492,700











484,187



492,593









Weighted average shares outstanding

– diluted

484,419



492,891











484,356



492,764









































Reconciliation of Net Income to EBITDA, Adjusted EBITDA, EBITDA Margin, Incremental EBITDA Margin, Adjusted EBITDA

Margin, and Adjusted Incremental EBITDA Margin
 (5)

































Net income

$   129,397



$   110,143











$   223,791



$  198,377









Depreciation and amortization

27,711



26,439











55,021



48,941









Interest expense, net

7,775



4,785











15,500



5,250









Provision for income taxes

45,617



40,880











75,861



69,135









EBITDA

$   210,500



$   182,247



28,253



15.5



$   370,173



$  321,703



48,470



15.1

Fox acquisition-related expenses (1)



1,047











1,049



1,047









Gain on sale of assets, net (2)

(412)



(1,019)











(351)



(5,733)









Adjusted EBITDA

$   210,088



$   182,275



27,813



15.3



$   370,871



$  317,017



53,854



17.0

Revenues

$   891,920



$   820,750



71,170







$  1,640,269



$  1,478,765



161,504





EBITDA margin

23.6 %



22.2 %











22.6 %



21.8 %









Incremental EBITDA margin









39.7 %















30.0 %





Adjusted EBITDA margin

23.6 %



22.2 %











22.6 %



21.4 %









Adjusted incremental EBITDA margin









39.1 %















33.3 %





































Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow and Free Cash Flow Conversion

































Net cash provided by operating activities

$   145,115



$   147,413











$   272,548



$  248,186









Capital expenditures

(8,696)



(6,775)











(15,867)



(14,411)









Free cash flow

$   136,419



$   140,638



(4,219)



(3.0)



$   256,681



$  233,775



22,906



9.8

Free cash flow conversion

105.4 %



127.7 %











114.7 %



117.8 %











(1) Consists of expenses resulting from the amortization of certain intangible assets and adjustments to the fair value of contingent consideration resulting from the acquisition of Fox. While we exclude such expenses in this non-GAAP measure, the revenue from the acquired company is reflected in this non-GAAP measure and the acquired assets contribute to revenue generation.

(2) Consists of the gain or loss on the sale of non-operational assets.

(3) The tax effect of the adjustments is calculated using the applicable statutory tax rates for the respective periods.

(4) In some cases, the sum of the individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.

(5) In the first quarter of 2024, we revised the non-GAAP metrics adjusted net income, adjusted EPS, and adjusted EBITDA to exclude gains and losses related to non-operational asset sales. These measures are of operating performance and we believe excluding the gains and losses on non-operational assets allows us to better compare our operating performance consistently over various periods. Refer to our first quarter 2024 press release for fully revised quarterly metrics.





Three Months Ended June 30,



Six Months Ended June 30,











Variance











Variance



2024



2023 (6)



$



%



2024



2023 (6)



$



%

Reconciliation of Revenues to Organic Revenues

































Revenues

$ 891,920



$ 820,750



71,170



8.7



$  1,640,269



$  1,478,765



161,504



10.9

Revenues from acquisitions

(14,153)





(14,153)



1.7



(60,140)





(60,140)



4.1

Revenues of divestitures



(5,924)



5,924



(0.7)





(10,677)



10,677



(0.8)

Organic revenues

$ 877,767



$ 814,826



62,941



7.7



$  1,580,129



$  1,468,088



112,041



7.6

































Reconciliation of Residential Revenues to Organic Residential Revenues

































Residential revenues

$ 408,414



$ 384,087



24,327



6.3



$   737,752



$   666,844



70,908



10.6

Residential revenues from acquisitions

(6,977)





(6,977)



1.8



(44,686)





(44,686)



6.7

Residential revenues of divestitures



(3,373)



3,373



(0.9)





(6,405)



6,405



(1.0)

Residential organic revenues

$ 401,437



$ 380,714



20,723



5.4



$   693,066



$   660,439



32,627



4.9

































Reconciliation of Commercial Revenues to Organic Commercial Revenues

































Commercial revenues

$ 287,770



$ 261,900



25,870



9.9



$   545,884



$   493,607



52,277



10.6

Commercial revenues from acquisitions

(6,066)





(6,066)



2.3



(11,022)





(11,022)



2.2

Commercial revenues of divestitures



(2,551)



2,551



(1.0)





(4,272)



4,272



(0.9)

Commercial organic revenues

$ 281,704



$ 259,349



22,355



8.6



$   534,862



$   489,335



45,527



9.3

































Reconciliation of Termite and Ancillary Revenues to Organic Termite and Ancillary Revenues

































Termite and ancillary revenues

$ 186,024



$ 166,398



19,626



11.8



$   338,084



$   302,529



35,555



11.8

Termite and ancillary revenues from

acquisitions

(1,110)





(1,110)



0.7



(4,432)





(4,432)



1.5

Termite and ancillary organic revenues

$ 184,914



$ 166,398



18,516



11.1



$   333,652



$   302,529



31,123



10.3





Three Months Ended June 30,



Six Months Ended June 30,











Variance











Variance



2023 (6)



2022 (6)



$



%



2023 (6)



2022 (6)



$



%

Reconciliation of Revenues to Organic Revenues

































Revenues

$ 820,750



$ 714,049



106,701



14.9



$  1,478,765



$  1,304,729



174,036



13.3

Revenues from acquisitions

(51,147)





(51,147)



7.2



(64,302)





(64,302)



4.9

Organic revenues

$ 769,603



$ 714,049



55,554



7.7



$  1,414,463



$  1,304,729



109,734



8.4

































Reconciliation of Residential Revenues to Organic Residential Revenues

































Residential revenues

$ 384,087



$ 323,695



60,392



18.7



$   666,844



$   581,164



85,680



14.7

Residential revenues from acquisitions

(42,089)





(42,089)



13.0



(48,092)





(48,092)



8.3

Residential organic revenues

$ 341,998



$ 323,695



18,303



5.7



$   618,752



$   581,164



37,588



6.5

































Reconciliation of Commercial Revenues to Organic Commercial Revenues

































Commercial revenues

$ 261,900



$ 236,539



25,361



10.7



$   493,607



$   443,514



50,093



11.3

Commercial revenues from acquisitions

(3,038)





(3,038)



1.3



(7,232)





(7,232)



1.6

Commercial organic revenues

$ 258,862



$ 236,539



22,323



9.4



$   486,375



$   443,514



42,861



9.7

































Reconciliation of Termite and Ancillary Revenues to Organic Termite and Ancillary Revenues

































Termite and ancillary revenues

$ 166,398



$ 146,361



20,037



13.7



$   302,529



$   265,730



36,799



13.8

Termite and ancillary revenues from

acquisitions

(6,020)





(6,020)



4.1



(8,978)





(8,978)



3.4

Termite and ancillary organic revenues

$ 160,378



$ 146,361



14,017



9.6



$   293,551



$   265,730



27,821



10.4



(6) Revenues classified by significant product and service offerings for the three and six months ended June 30, 2023 and 2022 were misstated by an immaterial amount and have been restated from the amounts previously reported to correct the classification of such revenues. There was no impact on our condensed consolidated statements of income, financial position, or cash flows.





Three Months Ended June 30,



Six Months Ended June 30,



2024



2023



2024



2023

Reconciliation of SG&A to Adjusted SG&A





















SG&A

$                  271,547



$                  255,331



$                  494,604



$                  451,762

Fox acquisition-related expenses (1)



1,047



1,049



1,047

Adjusted SG&A

$                  271,547



$                  254,284



$                  493,555



$                  450,715

















Revenues

$                  891,920



$                  820,750



$               1,640,269



$               1,478,765

Adjusted SG&A as a % of revenues

30.4 %



31.0 %



30.1 %



30.5 %







Period Ended

June 30, 2024



Period Ended

December 31, 2023

Reconciliation of Long-term Debt to Net Debt and Net Leverage Ratio



















Long-term debt (7)



$                  504,000



$                  493,000

Less: cash



106,697



103,825

Net debt



$                  397,303



$                  389,175

Trailing twelve-month EBITDA



$                  753,534



$                  705,064

Net leverage ratio



0.5x



0.6x



(7) As of June 30, 2024, the Company had outstanding borrowings of $504.0 million under the Credit Facility. Borrowings under the Credit Facility are presented under the long-term debt caption of our condensed consolidated balance sheet, net of $2.0 million in unamortized debt issuance costs as of June 30, 2024.



For Further Information Contact

Lyndsey Burton (404) 888-2348

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SOURCE Rollins, Inc.

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