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Sep 30, 2023
Rollins Q3 2023 Earnings Report
Rollins reported a strong third quarter with record revenue and an improving margin profile, driven by a 15% increase in revenue and healthy organic growth.
Key Takeaways
Rollins, Inc. reported strong third-quarter 2023 financial results, with a 15.2% increase in revenue to $840 million. The company saw improvements in GAAP EPS (18%) and Adjusted EPS (27%). Organic revenues increased by 8.4%.
Third quarter revenues increased by 15.2% to $840 million, with organic revenues increasing 8.4%.
Operating income increased by 21.8% to $177 million, with an operating margin of 21.1%.
EPS increased by 18.2% to $0.26 per diluted share, and Adjusted EPS increased by 27.3% to $0.28 per diluted share.
Adjusted EBITDA increased by 22.7% to $209 million.
Rollins
Rollins
Rollins Revenue by Segment
Revenue by Segment
Residential Revenue
CapyFin.comCommercial Revenue
CapyFin.com Forward Guidance
Rollins is well positioned for continued growth, both organically and through acquisitions, and remains focused on continuous improvement initiatives to enhance profitability across its business. The company continued to execute a very balanced capital allocation program with a focus on investing for growth while returning cash to shareholders through a growing dividend and a share repurchase program.
Positive Outlook
- Healthy organic growth
- Active on the acquisition front
- Solid demand for services
- Robust pipeline for acquisitions
- Focused on continuous improvement initiatives
Challenges Ahead
- Failure to maintain and enhance brands
- Actions taken by franchisees, subcontractors or vendors that may harm business
- General economic conditions
- Potential increases in labor costs
- Labor shortages and/or inability to attract and retain skilled workers
Revenue & Expenses
Visualization of income flow from segment revenue to net income