NYSE$ROL

Rollins Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Rollins reported strong revenue growth, leading to a 14.7% increase in quarterly net income.

Rollins, Inc. reported a 12.2% increase in third-quarter revenue, reaching $729.7 million. Net income increased by 14.7% to $107.6 million, with EPS rising to $0.22 per diluted share. The company invested $60.8 million in acquisitions and saw a 60.2% increase in operating cash flow.

  • Third quarter revenues increased 12.2% to $729.7 million, with organic revenues increasing 8.6% to $706.0 million.
  • Operating income rose 13.3% to $143.7 million, with an operating margin of 19.7%.
  • Net income increased 14.7% to $107.6 million, and EPS increased to $0.22 per diluted share.
  • Operating cash flow increased 60.2% to $127.7 million.

Headline financials

Total Revenue

$730M

Previous: $650M+12.2%
EPS (adj)

$0.22

Previous: $0.19+15.8%
Operating Margin

19.7%

No prior period
Adjusted EBITDA

$170M

Previous: $151M+12.6%
Capital Expenditures

-$22.9M

Previous: -$20M-14.4%
Free Cash Flow

$84.7M

Previous: $73.8M+14.7%
Net Income

$108M

Previous: $93.9M+14.7%
Operating Income

$144M

Previous: -$545M+126.4%
Gross Profit

-$372M

Previous: $345M-208.0%
Cash & Equivalents

$122M

Previous: $118M+3.6%
Total Assets

$2.11B

Previous: $1.9B+10.9%
Stock-Based Comp

$4.96M

Previous: $3.92M+26.4%

Revenue & EPS history

Rollins · Revenue · Quarterly

$730M

Q3 2022+12.2%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Rollins · $581M total across 2 segments · Q3 2022

  • Residential Revenue
    $338M
  • Commercial Revenue
    $243M

Forward guidance

Rollins anticipates continued strong performance in the fourth quarter of 2022 and beyond, driven by sustained demand and focused execution.

Tailwinds

  • Favorable demand for services continues.
  • Double-digit growth across all major service lines.
  • Employees committed to deliver exceptional customer service.
  • Strong cash flow generation.
  • Balance sheet positions the company well to drive growth through acquisitions.

Headwinds

  • The stronger dollar versus foreign currencies reduced revenues by 50 basis points during the quarter.
  • Higher losses stemming from asserted claims associated with automobile accidents reduced EBITDA margins by 140 basis points.
  • Potential increases in labor costs.
  • Labor shortages and/or our inability to attract and retain skilled workers.
  • Competitive factors and pricing practices.

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 2022

Historical avgQ3 2022

+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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