First Quarter 2025 Earnings Webcast Presentation Rollins, Inc. April 24, 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 proj ...

Financial Data and Key Metrics Changes - Rollins reported total revenue growth of nearly 10% and organic growth of 7.4% for Q1 2025, despite one less business day [6][17] - Gross margin reached 51.4%, the highest first-quarter gross margin recorded in recent history, with EBITDA of $173 million, up 8.1% year-over-year [18][24] - Operating cash flow increased by 15% to $147 million, and free cash flow rose by 17% to $140 million [20][26] Business Line Data and Key Metrics Changes - Residential revenue increased by 8.2%, commercial pest control rose by 10.2%, and termite and ancillary services increased by 13.2% [20] - Organic growth rates were 5.7% in residential, 7.4% in commercial, and 11.1% in termite and ancillary services [20] - The recurring base of commercial business saw organic growth of nearly 10% [21] Market Data and Key Metrics Changes - The company experienced a 40 basis point headwind from foreign currency, impacting overall organic growth [17] - Demand trends in the residential and termite segments were characterized as stable, with no significant slowdown observed despite macroeconomic uncertainties [41][44] Company Strategy and Development Direction - Rollins continues to focus on strategic M&A opportunities, recently acquiring Saela Pest Control, which is expected to add $45 million to $50 million in revenue for 2025 [6][30] - The company emphasizes a multi-brand strategy to enhance customer acquisition and operational efficiency [8][61] - Investments in sales staffing and marketing are ongoing to prepare for peak season and drive organic growth [10][12] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the strength of the market and the company's recession-resilient business model, expecting organic growth in the range of 7% to 8% for the year [32][33] - The addition of Saela is anticipated to enhance growth from M&A to 3% to 4% for the year [33] - Management highlighted the importance of maintaining strong customer relationships and adapting strategies based on market conditions [135][136] Other Important Information - The effective tax rate for the quarter was 23.5%, lower than the expected 26% for the year due to timing of certain tax benefits [25] - The company executed a $500 million bond offering and established a $1 billion commercial paper program [28] Q&A Session Summary Question: Demand trends in consumer-facing businesses - Management noted that demand was stable, with improvements seen in March after a tougher January and February [41][44] Question: Impact of investments on commercial business margins - Management confirmed that investments in the commercial division are correlated with the strong performance observed [46][48] Question: Drivers of top-line growth and margin resilience - Management highlighted pricing, volume growth, and M&A contributions as key drivers of growth, with a focus on maintaining a high variable cost model [56][60] Question: Organic revenue growth moderation in residential and termite businesses - Management attributed the moderation to one less business day and foreign currency headwinds, expressing confidence in the overall business health [70][71] Question: Synergies from the Saela acquisition - Management discussed a pragmatic approach to integration, focusing on leveraging existing technologies and best practices to drive growth [78][81] Question: Employee retention efforts - Management reported significant improvements in first-year technician retention, leading to fewer new hires needed [152][154]

Financial Data and Key Metrics Changes - The company reported total revenue growth of nearly 10% and organic growth of 7.4% despite one less business day in the quarter [5][12] - Gross margin improved to 51.4%, the highest first quarter gross margin recorded in recent history, up 20 basis points year over year [13][15] - Operating cash flow was $147 million and free cash flow was $140 million, representing increases of 15% and 17% respectively compared to the previous year [18][19] Business Line Data and Key Metrics Changes - Residential revenue increased by 8.2%, commercial pest control rose by 10.2%, and termite and ancillary services increased by 13.2% [14] - Organic growth rates were 5.7% in residential, 7.4% in commercial, and 11.1% in termite and ancillary services [14] - The commercial division saw double-digit recurring revenue growth, indicating strong performance in that segment [9][12] Market Data and Key Metrics Changes - The company experienced a 40 basis point headwind from foreign currency, impacting overall organic growth [13] - The company remains optimistic about its market position, citing strong demand and a recession-resilient business model [21][22] Company Strategy and Development Direction - The acquisition of Sala Pest Control is expected to add $45 million to $50 million in revenue for 2025, with approximately $15 million in Q2 [20] - The company emphasizes a multi-brand strategy as a competitive differentiator, allowing for diverse customer acquisition opportunities [7][46] - Continued investments in sales staffing and marketing are aimed at driving organic growth ahead of peak season [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties, highlighting limited exposure to tariffs [21][22] - The company anticipates organic growth in the range of 7% to 8% for the year, with M&A growth expected to contribute an additional 3% to 4% [22] - Management noted that the business remains resilient, with no significant demand signals indicating a slowdown [30][32] Other Important Information - The company executed a $500 million bond offering, establishing a $1 billion commercial paper program to support capital allocation strategies [19][20] - The effective tax rate for the quarter was 23.5%, lower than the expected 26% for the year due to timing of certain tax benefits [17] Q&A Session Summary Question: Demand trends in consumer-facing businesses - Management noted that January and February were tougher, but demand improved in March, with no significant demand signals indicating a slowdown [28][30] Question: Impact of investments on commercial margins - Management confirmed that investments in the commercial business are correlated with the strong performance, and they expect continued benefits from these investments [34][36] Question: Drivers of top-line growth and resilience - Management highlighted pricing, volume growth, and M&A activity as key drivers of growth, emphasizing the company's labor-intensive model as a lever during downturns [42][45] Question: Organic revenue growth moderation - Management acknowledged the impact of one less business day and foreign currency headwinds but expressed confidence in the overall business performance [51][53] Question: Synergies from the Sala acquisition - Management discussed a pragmatic approach to integration, focusing on leveraging technologies and best practices to drive growth [60][62] Question: Employee retention efforts - Management reported significant improvements in first-year technician retention, leading to fewer new hires compared to the previous year [116][118]

Core Viewpoint - Rollins reported quarterly earnings of $0.22 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.20 per share a year ago [1] - The company achieved revenues of $822.5 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 0.78% and up from $748.35 million year-over-year [2] Financial Performance - Rollins has not surpassed consensus EPS estimates in the last four quarters, but has topped revenue estimates four times during the same period [2] - The current consensus EPS estimate for the upcoming quarter is $0.30, with expected revenues of $970.89 million, and for the current fiscal year, the EPS estimate is $1.09 on revenues of $3.69 billion [7] Stock Performance - Rollins shares have increased approximately 20.1% since the beginning of the year, contrasting with a -10.1% decline in the S&P 500 [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for outperformance in the near future [6] Industry Outlook - The Building Products - Maintenance Service industry, to which Rollins belongs, is currently ranked in the top 2% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Q1 2025 Financial Performance Overview](index=1&type=section&id=ROLLINS%2C%20INC.%20REPORTS%20FIRST%20QUARTER%202025%20FINANCIAL%20RESULTS) Rollins, Inc. reported its financial results for the first quarter of 2025 [Q1 2025 Key Highlights](index=1&type=section&id=Key%20Highlights) Rollins reported strong Q1 2025 results with a 9.9% increase in revenue to $823 million and a 15.8% rise in GAAP EPS to $0.22. Organic revenue grew by 7.4%, demonstrating solid underlying business performance despite a negative currency impact. The company also saw a 15.3% increase in operating cash flow, reaching $147 million Q1 2025 Financial Highlights (in millions) | Metric | Q1 2025 | Change vs. Q1 2024 | | :--- | :--- | :--- | | **Revenues** | $823 | +9.9% | | **Organic Revenues*** | - | +7.4% | | **Operating Income** | $143 | +7.7% | | **Adjusted Operating Income*** | $147 | +6.7% | | **Net Income** | $105 | +11.5% | | **Adjusted Net Income*** | $108 | +9.7% | | **EPS (Diluted)** | $0.22 | +15.8% | | **Adjusted EPS*** | $0.22 | +10.0% | | **Operating Cash Flow** | $147 | +15.3% | - The stronger dollar had a negative impact on revenues, reducing them by **40 basis points** during the quarter[7](index=7&type=chunk) - During the quarter, the company invested **$27 million** in acquisitions, **$7 million** in capital expenditures, and paid **$80 million** in dividends[7](index=7&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted the company's resilient business model and focus on operational excellence as key drivers for the strong start to the year. They emphasized continued investment in organic growth and strategic M&A, such as the recent Saela acquisition. The CFO noted that despite one less business day, organic growth was solid and markets remain healthy, positioning the company for continued strong results - CEO Jerry Gahlhoff, Jr. credited the results to the company's resilient business model and focus on operational excellence[5](index=5&type=chunk) - The company continues to invest in organic demand generation and strategic M&A, highlighted by the recent acquisition of Saela[5](index=5&type=chunk) - CFO Kenneth Krause noted that organic growth of **7.4%** was at the midpoint of their range, even with one less business day in the quarter[6](index=6&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) This section provides a comprehensive breakdown of Rollins' financial performance, including detailed statements and expense analysis [Financial Highlights Summary](index=2&type=section&id=Three%20Months%20Ended%20Financial%20Highlights) For the three months ended March 31, 2025, Rollins reported revenues of $822.5 million, a 9.9% increase year-over-year. GAAP net income grew 11.5% to $105.2 million. While gross profit margin improved slightly to 51.4%, GAAP operating margin decreased by 40 basis points to 17.3%. Non-GAAP adjusted operating margin also saw a decline of 50 basis points to 17.9% GAAP Financial Highlights (in thousands) | GAAP Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $822,504 | $748,349 | 9.9% | | Gross Profit | $422,370 | $382,791 | 10.3% | | Operating Income | $142,648 | $132,424 | 7.7% | | Net Income | $105,248 | $94,394 | 11.5% | | EPS | $0.22 | $0.19 | 15.8% | | Net Cash (Operating) | $146,892 | $127,433 | 15.3% | Non-GAAP Financial Highlights (in thousands) | Non-GAAP Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Adjusted Operating Income | $146,861 | $137,689 | 6.7% | | Adjusted Net Income | $107,868 | $98,357 | 9.7% | | Adjusted EPS | $0.22 | $0.20 | 10.0% | | Adjusted EBITDA | $171,857 | $160,783 | 6.9% | | Free Cash Flow | $140,111 | $120,262 | 16.5% | [Expense Analysis](index=3&type=section&id=Expense%20Analysis) In Q1 2025, total cost of services provided was 48.6% of revenue, a slight improvement from 48.8% in the prior year. However, total sales, general, and administrative (SG&A) expenses increased to 30.5% of revenue from 29.8%, driven primarily by higher selling and marketing expenses, which rose from 11.1% to 11.9% of revenue Expense Categories as Percentage of Revenue | Expense Category (% of Revenue) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Cost of Services Provided | 48.6% | 48.8% | | Total Sales, General & Administrative | 30.5% | 29.8% | | - Selling and marketing expenses | 11.9% | 11.1% | | - Administrative employee expenses | 9.9% | 10.1% | | Depreciation and amortization | 3.6% | 3.6% | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show a healthy financial position. As of March 31, 2025, total assets stood at $2.95 billion. The income statement reflects strong revenue and net income growth. The cash flow statement highlights a significant increase in cash from operations, which funded acquisitions, dividends, and capital expenditures [Statement of Financial Position (Balance Sheet)](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20POSITION) As of March 31, 2025, total assets increased to $2.95 billion from $2.82 billion at year-end 2024. This was primarily driven by a significant increase in cash and cash equivalents to $201.2 million and a rise in goodwill. Total liabilities grew to $1.59 billion, mainly due to an increase in long-term debt to $485.5 million Condensed Consolidated Statements of Financial Position (in thousands) | Balance Sheet Item (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$2,948,558** | **$2,819,695** | | Cash and cash equivalents | $201,177 | $89,630 | | Goodwill | $1,178,704 | $1,161,085 | | **Total Liabilities** | **$1,592,806** | **$1,489,102** | | Long-term debt | $485,451 | $395,310 | | **Total Stockholders' Equity** | **$1,355,752** | **$1,330,593** | [Statement of Income](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) For Q1 2025, Rollins generated $822.5 million in revenue, up from $748.3 million in Q1 2024. Operating income rose to $142.6 million, and net income increased to $105.2 million. This resulted in a diluted net income per share of $0.22, a 15.8% increase from $0.19 in the prior-year quarter. Dividends paid per share also increased to $0.165 from $0.150 Condensed Consolidated Statements of Income (in thousands) | Income Statement Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $822,504 | $748,349 | | Operating Income | $142,648 | $132,424 | | Net Income | $105,248 | $94,394 | | Net Income Per Share - Diluted | $0.22 | $0.19 | | Dividends Paid Per Share | $0.165 | $0.150 | [Statement of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20CASH%20FLOW%20INFORMATION) Net cash provided by operating activities in Q1 2025 was $146.9 million, a 15.3% increase from $127.4 million in Q1 2024. The company used $27.2 million for acquisitions and $6.8 million for capital expenditures. Financing activities included net borrowings of $95.2 million and dividend payments of $79.9 million, resulting in a net increase in cash of $111.5 million for the quarter Condensed Consolidated Cash Flow Information (in thousands) | Cash Flow Activity (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $146,892 | $127,433 | | Net cash used in investing activities | ($32,567) | ($52,465) | | Net cash used in financing activities | ($4,612) | ($64,254) | | **Net increase in cash and cash equivalents** | **$111,547** | **$9,146** | [Non-GAAP Financial Measures & Reconciliations](index=8&type=section&id=APPENDIX) This section details the company's non-GAAP financial measures and provides reconciliations to their most directly comparable GAAP measures [Definition of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20and%20non-GAAP%20Financial%20Measures) The company utilizes several non-GAAP financial measures, such as organic revenues, adjusted operating income, adjusted EBITDA, and free cash flow. Management believes these metrics are useful for investors to understand current business trends and compare performance over time by excluding items like acquisition impacts, restructuring costs, and certain amortization expenses - Organic revenues are used to compare performance excluding the impact of acquisitions and divestitures within the prior **12 months**[25](index=25&type=chunk) - Adjusted operating income, adjusted net income, and adjusted EPS are calculated by adding back expenses like amortization of certain intangibles and costs related to the Fox Pest Control acquisition[26](index=26&type=chunk)[27](index=27&type=chunk) - Free cash flow is calculated as cash from operating activities minus capital expenditures and is used to demonstrate the company's ability to generate cash from operations[29](index=29&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20the%20non-GAAP%20financial%20measures) The appendix provides detailed reconciliations of GAAP results to the non-GAAP metrics used in the report. Key adjustments include removing the impact of recent acquisitions to calculate organic growth and excluding specific expenses, such as those related to the Fox acquisition, to arrive at adjusted income and EBITDA figures [Revenue Reconciliation](index=10&type=section&id=Reconciliation%20of%20Revenues%20to%20Organic%20Revenues) Total reported revenue grew 9.9% to $822.5 million. After excluding $18.6 million in revenue from recent acquisitions, the organic revenue growth was 7.4%. Organic growth was led by the Termite and ancillary segment at 11.1%, followed by Commercial at 7.4% and Residential at 5.7% Revenue Growth (Q1 2025 vs Q1 2024) | Revenue Growth (Q1 2025 vs Q1 2024) | Total Growth | Organic Growth | | :--- | :--- | :--- | | **Total Revenue** | **9.9%** | **7.4%** | | Residential | 8.2% | 5.7% | | Commercial | 10.2% | 7.4% | | Termite and ancillary | 13.2% | 11.1% | [Operating & Net Income Reconciliation](index=11&type=section&id=Reconciliation%20of%20Operating%20Income%20and%20Net%20Income) GAAP operating income of $142.6 million was adjusted for $4.2 million in Fox acquisition-related expenses, resulting in an adjusted operating income of $146.9 million (6.7% growth). Similarly, GAAP net income of $105.2 million was adjusted for the same expenses and tax impacts, yielding an adjusted net income of $107.9 million (9.7% growth) and an adjusted EPS of $0.22 (10.0% growth) Operating and Net Income Reconciliation (in thousands) | Reconciliation (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Operating Income (GAAP)** | **$142,648** | **$132,424** | | Fox acquisition-related expenses | $4,213 | $5,265 | | **Adjusted Operating Income** | **$146,861** | **$137,689** | | **Net Income (GAAP)** | **$105,248** | **$94,394** | | Adjustments (net of tax) | $2,620 | $3,963 | | **Adjusted Net Income** | **$107,868** | **$98,357** | [EBITDA Reconciliation](index=11&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA) EBITDA for Q1 2025 was $172.5 million, an 8.1% increase from the prior year. After adjustments, including the gain on sale of assets, adjusted EBITDA was $171.9 million, a 6.9% increase. The adjusted EBITDA margin was 20.9%, a decrease of 60 basis points from 21.5% in Q1 2024 EBITDA Reconciliation (in thousands) | EBITDA Metric (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $105,248 | $94,394 | | EBITDA | $172,549 | $159,673 | | Adjusted EBITDA | $171,857 | $160,783 | | Adjusted EBITDA Margin | 20.9% | 21.5% | [Cash Flow Reconciliation](index=11&type=section&id=Reconciliation%20of%20Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Free%20Cash%20Flow) Free cash flow for Q1 2025 increased by 16.5% to $140.1 million. This was calculated by taking the net cash from operating activities of $146.9 million and subtracting capital expenditures of $6.8 million. The free cash flow conversion rate improved to 133.1% from 127.4% in the prior year Free Cash Flow Reconciliation (in thousands) | Free Cash Flow (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $146,892 | $127,433 | | Capital expenditures | ($6,781) | ($7,171) | | **Free cash flow** | **$140,111** | **$120,262** | | Free cash flow conversion | 133.1% | 127.4% | [Leverage Ratio Reconciliation](index=12&type=section&id=Reconciliation%20of%20Long-term%20Debt%20and%20Net%20Income%20to%20Leverage%20Ratio) The company's leverage ratio remained stable at 0.8x at the end of Q1 2025, unchanged from the end of the previous year. The calculation is based on adjusted net debt of $744.5 million and adjusted EBITDAR of $956.7 million for the trailing twelve months - The leverage ratio was **0.8x** as of March 31, 2025, consistent with December 31, 2024[38](index=38&type=chunk) - Adjusted net debt was calculated at **$744.5 million**, and adjusted EBITDAR for the period was **$956.7 million**[38](index=38&type=chunk)

• Rollins, Inc. achieved annual savings of approximately $7.7 million, allowing the company to reinvest in strategic business initiatives and employee wellness, including on-site clinics. • Analysis included members across 47 states. Rising healthcare costs are posing a major challenge for self-funded employers, with PwC forecasting an 8% increase in 2025 – the highest rate in thirteen years. Imagine360 achieves measurable cost savings and industry- leading member satisfaction by delivering a fundamentally ...

Core Viewpoint - Rollins, Inc. (ROL) is expected to report its first-quarter 2025 results on April 23, with a history of mixed earnings surprises, averaging a negative surprise of 0.8% over the past four quarters [1]. Group 1: Q1 Expectations - The Zacks Consensus Estimate for ROL's revenue is $816.2 million, indicating a 9% year-over-year growth, driven by improved revenues in commercial, residential, and termite services [2]. - Residential revenues are estimated at $365.3 million, reflecting a 10.9% increase from the previous year, while commercial revenues are projected to rise by 6.4% to $274.7 million [3]. - Revenues from Termite Completions, Bait Monitoring & Renewals are expected to reach $156.4 million, suggesting a 5.1% year-over-year growth, and franchise revenues are estimated at $4.1 million, up 2.8% from the prior year [3]. Group 2: Earnings Expectations - The Zacks Consensus Estimate for adjusted EPS is 22 cents, representing a 10% increase from the same quarter last year, supported by revenue growth across segments and strong margins [4]. - The current model indicates that ROL does not conclusively predict an earnings beat, with an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [5].

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].