ROLLINS, INC. REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS

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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.

Released July 24, 2024