Sep 30, 2024

Rollins Q3 2024 Earnings Report

Rollins reported a strong third quarter with revenue growth and increased profitability, tempered by growth investments.

Key Takeaways

Rollins, Inc. reported a 9.0% increase in third-quarter revenues to $916 million, with organic revenues increasing by 7.7%. Operating income increased by 8.3% to $192 million. Net income increased by 7.1% to $137 million, and EPS increased by 7.7% to $0.28 per diluted share. The company continues to invest in growth initiatives and manage the impact of recent hurricanes.

Third quarter revenues increased by 9.0% year-over-year to $916 million, with organic revenues up 7.7%.

Operating income for the quarter rose by 8.3% to $192 million.

Net income increased by 7.1% to $137 million compared to the same period last year.

EPS increased by 7.7% to $0.28 per diluted share.

Total Revenue
$916M
Previous year: $840M
+9.0%
EPS
$0.29
Previous year: $0.28
+3.6%
Gross Profit
$494M
Previous year: $452M
+9.4%
Cash and Equivalents
$95.3M
Previous year: $142M
-33.0%
Free Cash Flow
$139M
Previous year: $120M
+15.7%
Total Assets
$2.82B
Previous year: $2.64B
+6.7%

Rollins

Rollins

Forward Guidance

Rollins is on track to deliver healthy margin improvement and double-digit earnings growth for the year.

Positive Outlook

  • Team delivered a strong third quarter with organic revenue growth of 7.7 percent.
  • Continue to invest in our team and other resources aimed at capitalizing on a healthy market environment.
  • On track to deliver healthy margin improvement
  • On track to deliver double-digit earnings growth for the year
  • Continue efforts to support teammates and communities impacted by recent hurricanes.

Challenges Ahead

  • Some disruption to operations from Hurricane Helene during the last week of the quarter.
  • Growth investments tempered overall margin performance in the quarter.
  • Adjusted operating income margin decreased by 90 basis points compared to the prior year.
  • Adjusted EBITDA margin decreased by 80 basis points versus the third quarter of 2023.
  • Recent hurricanes have impacted teammates and communities.