Core Viewpoint - Rollins, Inc. will release its first quarter results for the period ended March 31, 2025, on April 23, 2025, after market close, followed by a conference call on April 24, 2025, at 8:30 a.m. Eastern Time to discuss financial and operating results [1]. Group 1 - The conference call can be accessed by calling 1-877-869-3839 domestically or +1-201-689-8265 internationally, with a conference ID of 13752677 [2]. - The conference call will also be available via live broadcast on the Rollins, Inc. website, and a replay will be accessible for 180 days for those unable to join [2]. Group 2 - Rollins, Inc. is a global consumer and commercial services company providing pest control services to over 2.8 million customers across multiple continents, employing more than 20,000 staff from over 800 locations [3]. - The company operates under various brands, including Orkin, HomeTeam Pest Defense, and Clark Pest Control, among others [3].

Core Insights - Rollins, Inc. has acquired Saela Holdings, LLC, enhancing its position in the pest management industry [1][3] - Saela is recognized as the 23rd largest pest management company with over $65 million in annual revenue [1][2] - The acquisition aims to accelerate Rollins' long-term growth strategy and expand its geographical presence [3][7] Company Overview - Rollins, Inc. is a global consumer and commercial services company providing pest control services to over 2.8 million customers across multiple continents [5] - Saela, founded in 2008, operates in nine states and employs over 250 people, utilizing diverse customer acquisition strategies [2][4] Strategic Implications - The acquisition will allow Rollins to strengthen its service offerings in the Pacific Northwest, Mountain West, and Midwestern United States [3][7] - Saela will continue to operate as a standalone brand, complementing Rollins' existing portfolio [3][7] Financial Aspects - The transaction is financed through cash on hand and commercial paper, with a pro forma leverage ratio not expected to exceed 1.0x [8]

Core Viewpoint - Rollins, Inc. (ROL) is experiencing a surge in demand driven by strong construction activity, supported by its competitive advantages in service tracking and customer communication technologies, while facing challenges from rising costs and low liquidity [1][7][8]. Financial Performance - In Q4 2024, ROL reported adjusted earnings of 23 cents per share, meeting consensus estimates and reflecting a 9.5% year-over-year increase [2]. - Revenues reached $832.2 million, exceeding consensus by 2% and showing a 10.6% year-over-year improvement, with organic revenues of $814 million up by 8.5% [2]. Business Growth Drivers - Strong construction activity has led to a 10% year-over-year increase in ROL's top line, with growth across all business lines: residential, commercial, and termite [3]. - The company has developed an operating platform that enhances cross-selling opportunities and cost-effectiveness, facilitating quick customer service delivery [3]. Competitive Advantages - ROL's real-time service tracking and customer internet communication technologies provide a competitive edge, with its Branch Operating Support System improving service tracking and payment processing [4]. Acquisition Strategy - Acquisitions are a significant catalyst for ROL's business development, expanding its global brand recognition and geographical footprint, with 44 acquisitions completed in 2024 [5]. Capital Return to Investors - The company has consistently returned capital to investors through dividends, with payouts increasing from $208.7 million in 2021 to $298 million in 2024, reflecting its commitment to shareholders [6]. Cost Challenges - ROL is facing rising costs due to acquisitions and IT-related expenses, with operating costs increasing by 11.1% in 2022, 13.1% in 2023, and 9.7% in 2024 [7]. Liquidity Concerns - The current ratio at the end of Q4 was 0.69, below the industry average of 0.91, indicating potential inefficiencies in short-term debt coverage [8].

Core Points - Rollins, Inc. has nominated Paul D. Donahue for election to the Board of Directors at the upcoming 2025 Annual Meeting of Shareholders [1] - Mr. Donahue has over 21 years of experience at Genuine Parts Company, including roles as CEO and Chairman, and has held various leadership positions in other companies [2] - The Executive Chairman of the Board, John F. Wilson, expressed confidence in Mr. Donahue's leadership experience and community commitment, highlighting the value he will bring to Rollins [3] Company Overview - Rollins, Inc. is a global consumer and commercial services company providing pest control services to over 2.8 million customers across multiple continents, employing more than 20,000 staff at over 800 locations [4]

Core Viewpoint - Rollins (ROL) shares have decreased by approximately 2.3% since the last earnings report, although this performance has outpaced the S&P 500 [1] Group 1: Earnings Report Insights - The last earnings report for Rollins indicated a need to analyze the key drivers affecting the stock's performance [1] - No earnings estimate revisions have been made by analysts in the past two months, indicating a period of stability in expectations [2] Group 2: VGM Scores - Rollins currently holds a Growth Score of B, but has a low Momentum Score of D, and a Value Score of D, placing it in the bottom 40% for value investment strategy [3] - The overall aggregate VGM Score for Rollins is C, which is relevant for investors not focused on a single strategy [3] Group 3: Outlook - Rollins has a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [4]

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 ...