Core Insights - Rollins, Inc. (ROL) has outperformed the industry with a stock gain of 14% while the industry declined by 36% over the past year [1] Financial Performance - The company has shown a strong commitment to shareholder returns, paying dividends of $298 million in 2024, $264.3 million in 2023, $211.6 million in 2022, and $208.7 million in 2021 [2] - Revenue growth for Rollins was 10.3% year over year in Q3 2023, with residential, commercial, and termite business lines growing by 9%, 10%, and 13.6% respectively [3] Business Development - Acquisitions play a crucial role in Rollins' growth strategy, with 99 acquisitions completed to date, including 44 in 2024, enhancing brand recognition and geographical reach [4] - The proprietary Branch Operating Support System aids in service tracking and payment processing, improving route efficiency and customer retention through enhanced service response [5] Market Position - Rollins holds a Zacks Rank of 3 (Hold), indicating a stable market position [6] - Comparatively, AppLovin Corporation (APP) has a Zacks Rank of 1 (Strong Buy) with a long-term earnings growth expectation of 20% and an average earnings surprise of 23.5% over the last four quarters [6] - ABM, with a Zacks Rank of 2 (Buy), anticipates long-term earnings growth of 5.2% and has delivered an average earnings surprise of 11.6% over the last four quarters [7]

Core Insights - Rollins has delivered total returns of 12,700% since 2000, making it a 128-bagger investment [1] - The company is positioned for continued growth in the pest control industry, which is essential and non-discretionary [3] Group 1: Industry Dominance - Rollins has grown its sales nearly sixfold since 2000, becoming the largest operator in the pest control niche [4] - The brand Orkin, owned by Rollins, has the highest brand awareness in the U.S. pest control market, contributing to revenue growth of 8% over the last 15 years, compared to the industry average of 3% [5] - Long-term growth drivers include the rise of do-it-for-me services, increasing pet ownership, and stricter sanitation regulations [6] Group 2: M&A Strategy - Rollins has a successful track record of acquisitions, having completed hundreds of deals, including 44 tuck-in acquisitions in 2024 [7] - The company targets profitable businesses that complement its operations, consolidating a fragmented industry where over half of revenue comes from small operators [8] - Recent investment-grade ratings from Fitch and S&P Global enhance Rollins' access to cheaper credit for future acquisitions [9] Group 3: Financial Performance - Rollins has a cash return on invested capital (ROIC) averaging 34% since 2005, ranking in the top 10% of S&P 500 stocks [12] - The company has maintained a dividend yield of 1.2%, with an investor who bought $1,000 in 2000 now receiving $750 annually in dividends due to consistent payout increases [13] Group 4: Valuation - Rollins trades at a high price-to-earnings (P/E) ratio of 55, but its price-to-free cash flow (P/FCF) ratio of 44 is more relevant, reflecting its historical performance [14] - Despite a premium valuation, Rollins has doubled the market's returns over the past decade, justifying its price [15] - The company is expected to continue justifying its premium valuation through consistent sales growth of 8% to 10% annually [16] Group 5: Future Outlook - The pest control industry remains highly fragmented, providing Rollins with ample opportunities for growth through acquisitions [17]

Core Viewpoint - Rollins, Inc. has announced the pricing of $500 million in 5.25% Senior Notes due 2035, with the offering expected to close on February 24, 2025, subject to customary closing conditions [1]. Group 1: Financial Details - The Senior Notes will mature on February 24, 2035, and are being offered to qualified institutional buyers under Rule 144A and to certain non-U.S. persons under Regulation S [1]. - The net proceeds from the offering are primarily intended to repay existing indebtedness under the Company's senior credit facility and for general corporate purposes, which may include dividends, share repurchases, acquisitions, working capital, and capital expenditures [1]. Group 2: Company Overview - Rollins, Inc. is a global consumer and commercial services company providing essential pest control services to over 2.8 million customers across multiple continents, employing more than 20,000 individuals from over 800 locations [4]. - The company operates under various brands, including Orkin, HomeTeam Pest Defense, and Clark Pest Control, among others [4].

Core Insights - Rollins (ROL) reported revenue of $832.17 million for the quarter ended December 2024, marking a year-over-year increase of 10.4% and exceeding the Zacks Consensus Estimate by 1.95% [1] - The company's EPS for the same period was $0.23, unchanged from the consensus estimate, indicating no EPS surprise [1] Revenue Breakdown - Commercial revenues reached $280.45 million, surpassing the estimated $277.77 million, reflecting a year-over-year increase of 9.3% [4] - Revenues from termite completions, bait monitoring, and renewals totaled $172.43 million, exceeding the average estimate of $163.90 million, with a year-over-year growth of 16.6% [4] - Residential revenues amounted to $369.06 million, slightly above the estimated $365.27 million, representing an 8.4% increase year-over-year [4] - Franchise revenues were reported at $4.25 million, below the estimated $4.49 million, but still showing a year-over-year increase of 3.7% [4] - Other revenues reached $5.99 million, exceeding the estimate of $5.21 million, with a significant year-over-year growth of 17.7% [4] Stock Performance - Over the past month, Rollins shares have returned +6.6%, outperforming the Zacks S&P 500 composite's +3.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file No. 1-4422 _____________________________ ROLLINS, INC. (Exact name of registrant as specified in its c ...

ATLANTA, Feb. 13, 2025 /PRNewswire/ -- Rollins, Inc. (NYSE:ROL) ("Rollins" or the "Company"), a premier global consumer and commercial services company, today announced that Fitch Ratings ("Fitch") and S&P Global Ratings ("S&P") have issued inaugural investment grade credit ratings for the Company.Fitch has assigned a Long-Term Issuer Default Rating of BBB+ to the Company with a Stable outlook, while S&P has assigned an Issuer Rating of BBB to the Company with a Stable outlook."Over the last few years, we h ...

February 13, 2025 1 © 2024 Rollins, Inc. All rights reserved. Cautionary Statement Regarding Forward-Looking Statements This presentation as well as other written or oral statements by the Company may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current opinions, expectations, intentions, beliefs, plans, objectives, assumptions and projections about future events and financial trends affecting t ...

Rollins (ROL) came out with quarterly earnings of $0.23 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this operator of Orkin and other pest and termine control services would post earnings of $0.30 per share when it actually produced earnings of $0.29, delivering a surprise of -3.33%.Over the last four quarters, the company has not been able to surpass conse ...

Rollins outperformed revenue expectations in its Q4 2024 earnings, though net income saw a slight decline due to increased operational costs.Rollins (ROL 0.32%), a pest control services provider operating globally under well-known brands like Orkin, reported its Q4 and fiscal year 2024 earnings on Feb. 12, 2025. The headline from this release was the revenue topping estimates at $832 million against the expected $817 million, marking a 10.4% increase compared to Q4 2023's $754 million. Although adjusted ear ...

Revenue Performance - Revenues for Q4 2024 were $832 million, a 10.4% increase year-over-year, with organic revenues up 8.5% and acquisition-related revenues up 2.4%[3] - Full year revenues reached $3.4 billion, a 10.3% increase from the previous year, with organic revenues increasing by 7.9% and acquisition-related revenues increasing by 3.1%[3] - Rollins, Inc. reported Q4 2024 revenues of $832.2 million, a 10.3% increase from $754.1 million in Q4 2023[18] - For the full year 2024, total revenues reached $3.39 billion, up 10.3% from $3.07 billion in 2023[18] - Revenues for the three months ended December 31, 2024, were $832,169,000, representing a 10.4% increase from $754,086,000 in 2023[34] - Organic revenues for the same period were $813,946,000, an 8.5% increase from $750,026,000 in 2023[34] - Residential organic revenues increased by 6.5% to $360,334,000 compared to $338,224,000 in the previous year[34] - Commercial organic revenues grew by 7.2% to $273,442,000 from $254,889,000 in 2023[34] - Termite and ancillary organic revenues rose by 14.9% to $169,937,000 compared to $147,868,000 in the prior year[34] - Total revenues for the twelve months ended December 31, 2024, reached $3,388,708,000, a 10.3% increase from $3,073,278,000 in 2023[34] Income and Profitability - Operating income for Q4 2024 was $151 million, an 8.3% increase year-over-year, while full year operating income was $657 million, a 12.7% increase[3] - Adjusted EBITDA for Q4 2024 was $181 million, a 9.0% increase year-over-year, and for the full year, it was $771 million, an 11.6% increase[3] - Net income for Q4 2024 was $106 million, a decrease of 2.9% year-over-year, while full year net income was $466 million, a 7.2% increase[3] - Operating income for Q4 2024 was $150.6 million, compared to $139.1 million in Q4 2023, reflecting an increase of 10.3%[18] - Net income for Q4 2024 was $105.7 million, slightly down from $108.8 million in Q4 2023, resulting in a net income per share of $0.22[18] - Net income for the full year 2024 was $466.4 million, compared to $435.0 million in 2023, marking a 7.5% increase[37] - Adjusted net income for the full year 2024 was $479.2 million, up 10.4% from $434.1 million in 2023[36] Cash Flow and Financial Health - Operating cash flow for Q4 2024 was $188 million, a 23.1% increase year-over-year, and for the full year, it was $608 million, a 15.0% increase[3] - Rollins, Inc. reported a net cash provided by operating activities of $188.2 million for Q4 2024, compared to $152.8 million in Q4 2023[20] - Free cash flow for Q4 2024 was $184.0 million, a significant increase of 29.9% from $141.6 million in Q4 2023[36] - The leverage ratio improved to 0.8x in 2024 from 0.9x in 2023, indicating a stronger balance sheet[37] Expenses and Margins - Adjusted EPS for Q4 2024 was $0.23, a 9.5% increase year-over-year, while full year adjusted EPS was $0.99, an 11.2% increase[3] - SG&A expenses for Q4 2024 were $245.5 million, compared to $218.6 million in Q4 2023, reflecting an increase in operational costs[37] - Adjusted SG&A as a percentage of revenues was 29.5% in Q4 2024, slightly higher than 28.8% in Q4 2023[37] - Adjusted operating income increased to $154.8 million in Q4 2024 from $144.3 million in Q4 2023, reflecting an 11.7% growth[36] Strategic Focus and Future Outlook - The company plans to focus on pricing, modernization efforts, and continuous improvement to support healthy incremental margins in 2025[6] - Management expects solid demand for services and a robust acquisition pipeline for 2025, building on the momentum from 2024[4] - The company invested $52 million in acquisitions and $4 million in capital expenditures during Q4 2024, with total dividends paid amounting to $80 million[3] - Rollins, Inc. has a robust pipeline for acquisitions and continues to focus on operational execution and pricing strategies to support growth[11] - Adjusted EBITDA and adjusted EBITDA margin are key performance measures used by management to assess operating performance consistently over various periods[27] - Free cash flow is a critical financial measure for evaluating the company's liquidity, calculated by subtracting capital expenditures from cash provided by operating activities[28] - The leverage ratio, an assessment of overall liquidity and financial flexibility, is calculated by dividing adjusted net debt by adjusted EBITDAR[30] - Adjusted SG&A is utilized to compare SG&A expenses consistently over various periods, excluding adjustments related to the acquisition of Fox[29]