Analyst’s Disclosure: I/we have a beneficial long position in the shares of ROL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any in ...

Rollins (ROL) reported $916.27 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 9%. EPS of $0.29 for the same period compares to $0.28 a year ago.The reported revenue represents a surprise of +0.88% over the Zacks Consensus Estimate of $908.27 million. With the consensus EPS estimate being $0.30, the EPS surprise was -3.33%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...

Rollins, Inc. (ROL) reported mixed third-quarter 2024 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same.See Zacks Earnings Calendar to stay ahead of market-making news.Adjusted earnings of 29 cents per share missed the consensus estimate by 3.3% but increased 3.6% year over year. Revenues of $916.3 million beat the consensus mark by a slight margin and improved 9% year over year. Organic revenues of $898.9 million increased 7.7% year over year. Rollins’ performance in ...

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for the period ended September 30, 2024 [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents Rollins, Inc.'s unaudited condensed consolidated financial statements for the three and nine-month periods ended September 30, 2024, including balance sheet, income statement, and cash flows, highlighting revenue and net income growth [Condensed Consolidated Statements of Financial Position](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20POSITION) As of September 30, 2024, total assets increased to $2.82 billion from $2.60 billion at year-end 2023, driven by growth in goodwill and current assets, while total liabilities rose to $1.50 billion from $1.44 billion, and total stockholders' equity grew to $1.32 billion from $1.16 billion Condensed Consolidated Balance Sheet (in thousands) | Account | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | $486,502 | $406,639 | | **Goodwill** | $1,135,122 | $1,070,310 | | **Total assets** | **$2,816,198** | **$2,595,460** | | **Total current liabilities** | $622,068 | $576,689 | | **Long-term debt** | $445,176 | $490,776 | | **Total liabilities** | **$1,498,421** | **$1,439,893** | | **Total stockholders' equity** | **$1,317,777** | **$1,155,567** | [Condensed Consolidated Statements of Income](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) For Q3 2024, revenues increased to $916.3 million from $840.4 million in Q3 2023, leading to a net income of $136.9 million, while for the nine months ended September 30, 2024, revenues reached $2.56 billion, up from $2.32 billion year-over-year, with net income rising to $360.7 million Income Statement Highlights (in thousands, except per share data) | Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $916,270 | $840,427 | $2,556,539 | $2,319,192 | | **Operating Income** | $191,796 | $177,124 | $506,597 | $444,153 | | **Net Income** | $136,913 | $127,777 | $360,704 | $326,154 | | **EPS (Basic & Diluted)** | $0.28 | $0.26 | $0.74 | $0.66 | - Dividends paid per share increased to **$0.15** in Q3 2024 from **$0.13** in Q3 2023, and to **$0.45** for the nine-month period from **$0.39** in the prior year[6](index=6&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the nine months ended September 30, 2024, net cash from operating activities was $419.5 million, an increase from $375.5 million in the prior year, while investing activities used $123.6 million, significantly less than the $362.3 million used in 2023, and financing activities used $305.5 million, primarily for dividend payments and debt repayment Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $419,495 | $375,541 | | **Net cash used in investing activities** | ($123,560) | ($362,334) | | **Net cash (used in) provided by financing activities** | ($305,506) | $33,743 | | **Net (decrease) increase in cash** | ($8,543) | $46,901 | - Cash used for acquisitions decreased significantly to **$105.5 million** in the first nine months of 2024 from **$349.3 million** in the same period of 2023[12](index=12&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) The notes provide detailed disclosures on accounting policies, acquisitions, revenue recognition, debt, and other financial items, highlighting 32 acquisitions made in 2024, detailed revenue breakdowns showing growth across all segments, and information on the company's $1.0 billion credit facility - The company made **32 acquisitions** during the first nine months of 2024 for a total consideration of **$119.9 million**, adding **$61.7 million** in goodwill[19](index=19&type=chunk) Revenue by Service - Nine Months Ended Sep 30 (in thousands) | Service Offering | 2024 | 2023 | | :--- | :--- | :--- | | Residential revenue | $1,166,042 | $1,069,403 | | Commercial revenue | $845,517 | $767,472 | | Termite & ancillary | $515,758 | $457,664 | - On October 22, 2024, the Board of Directors declared a quarterly cash dividend of **$0.165 per share**, an increase from the previous quarter[56](index=56&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=19&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the financial results for Q3 and the first nine months of 2024, highlighting a 9.0% revenue increase in Q3 driven by 7.7% organic growth, and reaffirms 2024 growth targets despite macroeconomic uncertainties [Results of Operations - Q3 2024 vs Q3 2023](index=20&type=section&id=Results%20of%20Operations%20-%20Q3%202024%20vs%20Q3%202023) In Q3 2024, revenues grew 9.0% to $916.3 million, with 7.7% organic growth across all service lines, while operating income increased 8.3% to $191.8 million, though operating margin slightly decreased by 20 basis points to 20.9% due to growth investments and higher insurance costs Q3 2024 vs Q3 2023 Performance (in thousands) | Metric | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | **Revenues** | $916,270 | $840,427 | 9.0% | | **Gross profit** | $494,378 | $451,894 | 9.4% | | **Operating income** | $191,796 | $177,124 | 8.3% | | **Net income** | $136,913 | $127,777 | 7.1% | - Q3 organic revenue growth was strong across service offerings: **4.9%** in residential, **8.1%** in commercial, and **13.7%** in termite and ancillary services[65](index=65&type=chunk) - Gross margin improved by **20 basis points** to **54.0%**, as pricing offset inflation, with leverage in fleet and material costs, however, SG&A as a percentage of revenue increased from **29.1%** to **30.0%** due to investments in growth and higher insurance costs[67](index=67&type=chunk)[69](index=69&type=chunk) [Results of Operations - Nine Months 2024 vs 2023](index=23&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%202024%20vs%202023) For the first nine months of 2024, revenues grew 10.2% to $2.6 billion, with 7.7% organic growth across all service lines, while operating income rose 14.1% to $506.6 million, and operating margin improved by 60 basis points to 19.8%, driven by pricing and leverage on fleet and material costs YTD 2024 vs YTD 2023 Performance (in thousands) | Metric | YTD 2024 | YTD 2023 | % Change | | :--- | :--- | :--- | :--- | | **Revenues** | $2,556,539 | $2,319,192 | 10.2% | | **Gross profit** | $1,358,804 | $1,219,626 | 11.4% | | **Operating income** | $506,597 | $444,153 | 14.1% | | **Net income** | $360,704 | $326,154 | 10.6% | - YTD organic revenue growth was **7.7%**, with acquisitions contributing **3.3%**, and by service line, organic growth was **4.9%** in residential, **8.9%** in commercial, and **11.4%** in termite[76](index=76&type=chunk) - Gross margin for the nine-month period improved by **60 basis points** to **53.2%** compared to **52.6%** in 2023, as pricing outpaced inflationary pressures[77](index=77&type=chunk) [Non-GAAP Financial Measures](index=26&type=section&id=Non-GAAP%20Financial%20Measures) The company provides several non-GAAP metrics, including organic revenue, adjusted operating income, adjusted EBITDA, and free cash flow, to offer a clearer view of operating performance by excluding items like acquisition-related amortization and restructuring costs, with detailed reconciliations to GAAP measures - Management uses non-GAAP measures such as **organic revenues**, **adjusted operating income**, **adjusted EBITDA**, and **free cash flow** to compare performance consistently over various periods, excluding the impact of acquisitions, divestitures, and other specific items[83](index=83&type=chunk)[84](index=84&type=chunk) Reconciliation of Operating Income to Adjusted Operating Income (in thousands) | Description | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | **Operating income (GAAP)** | **$191,796** | **$177,124** | **$506,597** | **$444,153** | | Fox acquisition-related expenses | $4,216 | $5,262 | $13,689 | $10,523 | | Restructuring costs | $0 | $5,196 | $0 | $5,196 | | **Adjusted operating income (Non-GAAP)** | **$196,012** | **$187,582** | **$520,286** | **$459,872** | [Liquidity and Capital Resources](index=30&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company ended Q3 2024 with $95.3 million in cash and a $1.0 billion revolving credit facility with $447.0 million outstanding, while operating cash flow for the first nine months was strong at $419.5 million, which management believes is sufficient to fund operations and growth - The company has a **$1.0 billion** revolving credit facility maturing in February 2028, with **$447.0 million** outstanding as of September 30, 2024[97](index=97&type=chunk)[98](index=98&type=chunk) - Net cash from operating activities increased by **11.7%** to **$419.5 million** for the nine months ended Sep 30, 2024, driven by strong operating results[99](index=99&type=chunk)[100](index=100&type=chunk) - The company has a share repurchase program with **11.4 million shares** remaining for purchase as of September 30, 2024[103](index=103&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company reports no material changes to its market risk exposure during the nine months ended September 30, 2024, from what was disclosed in its 2023 Form 10-K - There were no material changes to the company's market risk exposure during the first nine months of 2024[111](index=111&type=chunk) [Controls and Procedures](index=33&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the principal executive and financial officers, concluded that the company's disclosure controls and procedures were effective as of September 30, 2024, with no material changes in internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2024[112](index=112&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[113](index=113&type=chunk) [PART II OTHER INFORMATION](index=34&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides additional information including legal proceedings, risk factors, equity sales, and exhibits [Legal Proceedings](index=34&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in various claims and litigation in the normal course of business, including an investigation by local governmental authorities in California regarding environmental regulations, though management does not believe any pending matter will have a material adverse effect on the company's financial position - The company is under investigation by local California governmental authorities regarding compliance with environmental regulations for hazardous waste and pesticide disposal[115](index=115&type=chunk) - Management does not believe that any pending legal proceeding, including the California investigation, will have a material adverse effect on the company's financial position, results, or liquidity[116](index=116&type=chunk) [Risk Factors](index=34&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes have been made to the risk factors disclosed in the 2023 Annual Report on Form 10-K[117](index=117&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During Q3 2024, the company did not repurchase any shares under its publicly announced repurchase plan, though a small number of shares were withheld to satisfy employee tax obligations upon equity award vesting, and the company has authorization to repurchase an additional 11.4 million shares under its existing plan - No shares were purchased as part of the publicly announced repurchase plan in Q3 2024[118](index=118&type=chunk) - As of September 30, 2024, the company has a remaining authorization to repurchase **11.4 million shares** of its common stock under its 2012 plan[119](index=119&type=chunk) [Other Information](index=36&type=section&id=ITEM%205.%20OTHER%20INFORMATION) During the fiscal quarter ended September 30, 2024, none of the company's directors or officers adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No directors or officers adopted, modified, or terminated any Rule 10b5-1 trading plans during the third quarter of 2024[122](index=122&type=chunk) [Exhibits](index=37&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO, and XBRL data files - The report includes CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, as well as Inline XBRL documents[122](index=122&type=chunk)

Core Viewpoint - Rollins reported quarterly earnings of $0.29 per share, slightly missing the Zacks Consensus Estimate of $0.30 per share, but showing an increase from $0.28 per share a year ago, indicating a -3.33% earnings surprise [1] Financial Performance - The company posted revenues of $916.27 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 0.88% and up from $840.43 million year-over-year [1] - Over the last four quarters, Rollins has consistently surpassed consensus revenue estimates [1] Stock Performance - Rollins shares have increased by approximately 13.4% since the beginning of the year, compared to a 22.7% gain in the S&P 500 [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $811.82 million, while the estimate for the current fiscal year is $1 on revenues of $3.36 billion [4] - The estimate revisions trend for Rollins is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [4] Industry Context - The Building Products - Maintenance Service industry, to which Rollins belongs, is currently in the top 1% of over 250 Zacks industries, indicating strong overall performance potential [5] - Another company in the same industry, Limbach, is expected to report quarterly earnings of $0.57 per share, reflecting a year-over-year decline of 6.6%, with revenues projected at $135 million, up 5.7% from the previous year [5]

Exhibit 99.1 For Further Information Contact Lyndsey Burton (404) 888-2348 FOR IMMEDIATE RELEASE ROLLINS, INC. REPORTS THIRD QUARTER 2024 FINANCIAL RESULTS Investing in Growth to Capitalize on Healthy Market ATLANTA, GEORGIA, October 23, 2024: Rollins, Inc. (NYSE:ROL) ("Rollins" or the "Company"), a premier global consumer and commercial services company, reported unaudited financial results for the third quarter of 2024. Key Highlights • Third quarter revenues were $916 million, an increase of 9.0% over th ...

Rollins, Inc. (ROL) is scheduled to report its third-quarter 2024 results on Oct. 23, after the bell. See Zacks Earnings Calendar to stay ahead of market-making news. ROL has had an impressive earnings surprise history. It outperformed the Zacks Consensus Estimate in one of the trailing four quarters and matched thrice, with an average surprise of 4.2%. Q3 Expectations The Zacks Consensus Estimate for the top line is pegged at $908.3 million, suggesting 8% growth on a yearover-year basis. Improved commercia ...

Core Viewpoint - Rollins, Inc. (ROL) has shown strong stock performance with a 33% appreciation over the past year and is expected to maintain this momentum, making it a compelling addition to investment portfolios [1]. Group 1: Stock Performance and Rankings - Rollins currently holds a Zacks Rank of 2 (Buy), indicating attractive investment opportunities, especially for stocks with a Zacks Rank of 1 (Strong Buy) or 2 [2]. - The company has a positive earnings surprise history, having outpaced consensus estimates in one of the last four quarters and matched them three times, with an average earnings beat of 4.2% [3]. Group 2: Growth Prospects - The Zacks Consensus Estimate for Rollins' 2024 earnings is projected at $1, reflecting an 11.1% year-over-year growth, with an overall expected earnings growth of 10% in 2024 [3]. - Rollins has enhanced its operating platform to boost cross-selling opportunities and cost efficiency, which has improved customer service delivery [4]. Group 3: Revenue Growth - The demand environment for Rollins is strong across all business lines, with revenues increasing by 8.7% year-over-year in Q1 2024. The residential, commercial, and termite business lines experienced growth rates of 6.3%, 9.9%, and 11.8%, respectively [5]. Group 4: Dividend Payments - Rollins has consistently paid dividends, demonstrating its commitment to shareholders and business confidence, with dividends of $264.3 million, $211.6 million, and $208.7 million paid in 2023, 2022, and 2021, respectively [6].

Editor's note: Seeking Alpha is proud to welcome Dividendos Portugal as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access. Click here to find out more » Bill Oxford/E+ via Getty Images Current State and Business Overview Rollins, Inc. (NYSE:ROL) is an American company based in Atlanta, Georgia, that provides essential pest and wildlife control services, as ...

ATLANTA, Sept. 10, 2024 /PRNewswire/ -- Rollins, Inc. (NYSE: ROL) ("Rollins" or the "Company"), a premier global consumer and commercial services company, today announced that Jerry Gahlhoff, President and Chief Executive Officer, and Kenneth Krause, Executive Vice President, Chief Financial Officer and Treasurer, will present at the J.P. Morgan 15th Annual U.S. All Stars Conference at the London J.P. Morgan Headquarters, September 18, 2024, from 9:00 a.m. – 9:45 a.m. E.T. This event will be webcast live an ...