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Sep 30, 2020

Rollins Q3 2020 Earnings Report

Reported strong financial results driven by residential revenue growth and cost containment efforts.

Key Takeaways

Rollins, Inc. reported a revenue increase of 4.9% to $583.7 million in Q3 2020. Net income increased to $79.6 million, or $0.24 per diluted share, compared to $44.1 million, or $0.13 per diluted share, for the same period in 2019. Adjusted net income for the third quarter was $86.3 million, or $0.26 per diluted share, compared to $70.6 million, or $0.22 per diluted share, for the same quarter in 2019.

Third quarter revenues increased by 4.9% to $583.7 million year-over-year.

Net income for the third quarter was $79.6 million, or $0.24 per diluted share.

Adjusted net income for the third quarter reached $86.3 million, or $0.26 per diluted share.

Strong residential revenue growth helped offset the negative impact of the pandemic on commercial customers.

Total Revenue
$584M
Previous year: $556M
+4.9%
EPS
$0.17
Previous year: $0.15
+13.3%
Gross Profit
$308M
Previous year: $288M
+7.1%
Cash and Equivalents
$95.4M
Previous year: $104M
-8.5%
Free Cash Flow
$101M
Previous year: $88.1M
+14.2%
Total Assets
$1.81B
Previous year: $1.76B
+2.3%

Rollins

Rollins

Forward Guidance

This release contains statements that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.

Positive Outlook

  • Company’s continued strong residential revenue growth
  • Success of the Company’s new VitalClean sanitation services
  • The impact such services have on the ability of the Company’s customers to reopen
  • The impact such services have on the ability of the Company’s customers to protect their own employees and customers.
  • Company’s ability to identify and integrate potential acquisitions

Challenges Ahead

  • The extent and duration of the coronavirus (COVID-19) pandemic and its potential impact on the financial health of the Company’s business partners, customers, supply chains and suppliers
  • Global economic conditions and capital and financial markets
  • Changes in consumer behavior and demand
  • The potential unavailability of personnel or key facilities
  • Modifications to the Company's operations, and the potential implementation of regulatory actions