NYSE$ROL

Rollins Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported strong financial results driven by residential revenue growth and cost containment efforts.

Rollins, Inc. reported a revenue increase of 4.9% to $583.7 million in Q3 2020. Net income increased to $79.6 million, or $0.24 per diluted share, compared to $44.1 million, or $0.13 per diluted share, for the same period in 2019. Adjusted net income for the third quarter was $86.3 million, or $0.26 per diluted share, compared to $70.6 million, or $0.22 per diluted share, for the same quarter in 2019.

  • Third quarter revenues increased by 4.9% to $583.7 million year-over-year.
  • Net income for the third quarter was $79.6 million, or $0.24 per diluted share.
  • Adjusted net income for the third quarter reached $86.3 million, or $0.26 per diluted share.
  • Strong residential revenue growth helped offset the negative impact of the pandemic on commercial customers.

Headline financials

Total Revenue

$584M

Previous: $556M+4.9%
EPS (adj)

$0.17

Previous: $0.15+13.3%
Capital Expenditures

-$17.7M

Previous: -$18.7M+5.4%
Free Cash Flow

$61.9M

Previous: $25.4M+144.0%
Net Income

$79.6M

Previous: $44.1M+80.6%
Operating Income

$50M

Previous: $110M-54.7%
Gross Profit

$308M

Previous: $288M+7.1%
Cash & Equivalents

$95.4M

Previous: $104M-8.5%
Total Assets

$1.81B

Previous: $1.76B+2.3%
Stock-Based Comp

$10.5M

Previous: $3.31M+218.0%

Revenue & EPS history

Rollins · Revenue · Quarterly

$584M

Q3 2020+4.9%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Rollins · $677M total across 2 segments · Q3 2023

  • Residential Revenue
    $404M+19.7%
  • Commercial Revenue
    $272M+11.8%

Forward guidance

This release contains statements that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.

Tailwinds

  • Company’s continued strong residential revenue growth
  • Success of the Company’s new VitalClean sanitation services
  • The impact such services have on the ability of the Company’s customers to reopen
  • The impact such services have on the ability of the Company’s customers to protect their own employees and customers.
  • Company’s ability to identify and integrate potential acquisitions

Headwinds

  • The extent and duration of the coronavirus (COVID-19) pandemic and its potential impact on the financial health of the Company’s business partners, customers, supply chains and suppliers
  • Global economic conditions and capital and financial markets
  • Changes in consumer behavior and demand
  • The potential unavailability of personnel or key facilities
  • Modifications to the Company's operations, and the potential implementation of regulatory actions

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.3%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.6%

Avg return

30 days after

60%

41 / 68 earnings

Positive

+14.1%

Q3 2022

Best reaction

-11.5%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%+0.8%-3.3%
Q4 2025-10.5%-8.4%-16.0%
Q3 2025+7.3%+10.7%+14.1%
Q1 2025+1.0%+2.6%+3.5%
Q4 2024+3.6%-0.2%+2.6%
Q3 2024-6.2%-4.6%+2.2%
Q2 2024-6.4%-4.7%+0.4%
Q1 2024+3.8%+5.0%+8.3%
Q4 2023-4.9%-6.4%+5.7%
Q3 2023+6.1%+9.5%+19.2%
Q2 2023-8.9%-8.9%-12.2%
Q1 2023+4.7%+3.9%-1.0%
Q4 2022+1.5%+1.9%+1.2%
Q3 2022+14.1%+17.1%+11.3%
Q2 2022+6.5%+8.0%-4.8%
Q1 2022+5.2%+1.5%+11.9%
Q4 2021-7.3%-1.3%+2.8%
Q3 2021-11.5%-13.0%-9.8%
Q2 2021+1.8%+3.7%+3.9%
Q1 2021+4.0%+5.1%-5.1%
Q4 2020-2.9%-2.2%-10.4%
Q3 2020-0.2%-1.9%-3.8%
Q2 2020+5.7%+8.4%+12.6%
Q1 2020-1.7%+0.0%+2.8%
Q4 2019+4.0%+4.8%+1.9%
Q3 2019+7.3%+5.6%-1.4%
Q2 2019-10.8%-11.2%-16.2%
Q1 2019-10.6%-11.1%-15.4%
Q4 2018-1.6%-2.7%+2.7%
Q3 2018+0.6%+1.7%+6.3%
Q2 2018+1.2%-1.6%+5.7%
Q1 2018-3.0%-4.3%-1.1%
Q4 2017+5.5%+4.9%+6.9%
Q3 2017-6.6%-8.3%-4.1%
Q2 2017+4.0%+4.3%+7.6%
Q1 2017+2.7%+2.8%+13.0%
Q4 2016+4.8%+3.8%+8.9%
Q3 2016+9.1%+9.5%+15.8%
Q2 2016-4.6%-3.3%-3.7%
Q1 2016+0.4%
Q4 2015-0.3%
Q3 2015-0.7%
Q2 2015+3.3%
Q1 2015-1.6%
Q4 2014+1.0%
Q3 2014+3.1%
Q2 2014+0.7%
Q1 2014+0.0%
Q4 2013+2.0%
Q3 2013+0.2%
Q2 2013-5.8%
Q1 2013+1.4%
Q4 2012+1.7%
Q3 2012+0.9%
Q2 2012+3.9%
Q1 2012+2.4%
Q4 2011-2.6%
Q3 2011-7.1%
Q2 2011-0.7%
Q1 2010-0.7%
Q1 2011+2.3%
Q4 2008+2.7%
Q4 2010+2.7%
Q3 2009-0.2%
Q3 2010-0.2%
Q2 2010+0.5%
Q2 2009+0.5%
Q4 2009+0.5%

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