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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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