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Sep 30, 2022
Rollins Q3 2022 Earnings Report
Rollins reported strong revenue growth, leading to a 14.7% increase in quarterly net income.
Key Takeaways
Rollins, Inc. reported a 12.2% increase in third-quarter revenue, reaching $729.7 million. Net income increased by 14.7% to $107.6 million, with EPS rising to $0.22 per diluted share. The company invested $60.8 million in acquisitions and saw a 60.2% increase in operating cash flow.
Third quarter revenues increased 12.2% to $729.7 million, with organic revenues increasing 8.6% to $706.0 million.
Operating income rose 13.3% to $143.7 million, with an operating margin of 19.7%.
Net income increased 14.7% to $107.6 million, and EPS increased to $0.22 per diluted share.
Operating cash flow increased 60.2% to $127.7 million.
Rollins
Rollins
Rollins Revenue by Segment
Revenue by Segment
Residential Revenue
CapyFin.comCommercial Revenue
CapyFin.com Forward Guidance
Rollins anticipates continued strong performance in the fourth quarter of 2022 and beyond, driven by sustained demand and focused execution.
Positive Outlook
- Favorable demand for services continues.
- Double-digit growth across all major service lines.
- Employees committed to deliver exceptional customer service.
- Strong cash flow generation.
- Balance sheet positions the company well to drive growth through acquisitions.
Challenges Ahead
- The stronger dollar versus foreign currencies reduced revenues by 50 basis points during the quarter.
- Higher losses stemming from asserted claims associated with automobile accidents reduced EBITDA margins by 140 basis points.
- Potential increases in labor costs.
- Labor shortages and/or our inability to attract and retain skilled workers.
- Competitive factors and pricing practices.
Revenue & Expenses
Visualization of income flow from segment revenue to net income