Rollins, Inc. (ROL): history, ownership, mission, how it works & makes money

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Rollins, Inc. (ROL) Information


A Brief History of Rollins, Inc.

Rollins, Inc. has established itself as a leader in the pest control industry, primarily through its subsidiary, Orkin. Founded in 1964, the company has grown significantly through a series of strategic acquisitions and organic expansion. As of 2024, Rollins, Inc. operates in over 70 countries, providing a wide range of pest control services.

Financial Performance Overview

As of September 30, 2024, Rollins, Inc. reported total revenues of $2.56 billion for the nine months ending on that date, an increase from $2.32 billion in the same period for 2023, reflecting a year-over-year growth of approximately 10.2%.

Financial Metrics 2024 (9 months) 2023 (9 months)
Total Revenues $2,556,539,000 $2,319,192,000
Net Income $360,704,000 $326,154,000
Net Income per Share (Basic) $0.74 $0.66
Dividends Paid per Share $0.45 $0.39

Acquisitions and Growth Strategy

In 2023, Rollins, Inc. made a significant acquisition by purchasing Fox Pest Control for approximately $339.5 million. This acquisition included cash payments of $302.8 million and contingent consideration valued at $28.0 million based on Fox's financial performance over the following year.

Market Presence and Revenue Breakdown

Rollins, Inc. has a diverse revenue stream, with significant contributions from both residential and commercial services. The breakdown of revenues for the three months ended September 30, 2024, is as follows:

Revenue Source Amount (3 Months Ended Sept 30, 2024)
Residential Revenue $428,290,000
Commercial Revenue $299,633,000
Termite Completions, Bait Monitoring, & Renewals $177,674,000
Franchise Revenues $4,282,000
Other Revenues $6,391,000

Cash Flow and Capital Expenditures

For the nine months ended September 30, 2024, Rollins, Inc. generated net cash from operating activities amounting to $419.5 million, compared to $375.5 million in 2023. The company’s cash used in investing activities was $123.6 million, a significant decrease from $362.3 million in the prior year.

Stockholder Equity and Dividends

As of September 30, 2024, Rollins, Inc. reported total stockholders’ equity of $1.32 billion, reflecting an increase from $1.16 billion as of the same date in 2023. The company has maintained a consistent dividend policy, paying $218.0 million in dividends during the nine months of 2024.

Stockholder Equity Components 2024 (Sept 30) 2023 (Sept 30)
Common Stock $484,306,000 $484,080,000
Paid-in Capital $145,489,000 $131,840,000
Accumulated Other Comprehensive Income (Loss) $(21,137,000) $(26,755,000)
Retained Earnings $709,119,000 $566,402,000
Total Stockholders’ Equity $1,317,777,000 $1,155,567,000

Debt and Financing Activities

As of September 30, 2024, Rollins, Inc. had long-term debt of $447.0 million, down from $493.0 million at the end of 2023. The company’s net leverage ratio stood at 0.5x, indicating strong financial stability.

Overall, Rollins, Inc. has demonstrated robust financial growth and stability as of 2024, leveraging strategic acquisitions and a diversified revenue model to enhance its market position.



A Who Owns Rollins, Inc. (ROL)

Major Shareholders

As of 2024, the ownership structure of Rollins, Inc. (ROL) is diverse, with a mix of institutional and individual investors. The table below outlines the major shareholders and their respective ownership percentages:

Shareholder Ownership Percentage Type of Ownership
Rollins Family 48.7% Insider Ownership
The Vanguard Group, Inc. 7.1% Institutional Investor
BlackRock, Inc. 6.5% Institutional Investor
State Street Corporation 4.3% Institutional Investor
Wellington Management Company, LLP 3.9% Institutional Investor
Other Institutional Investors 29.5% Various

Stock Performance

Rollins, Inc. (ROL) has shown consistent performance in the stock market. The following table summarizes key stock performance metrics as of 2024:

Metric Value
Current Stock Price $37.50
Market Capitalization $11.5 billion
52-Week High $39.00
52-Week Low $32.00
Year-to-Date Return 12.5%
Dividend Yield 1.6%

Recent Financial Performance

For the nine months ended September 30, 2024, Rollins, Inc. reported the following financial metrics:

Metric Value
Total Revenue $2.56 billion
Net Income $360.7 million
Operating Income $520.3 million
Earnings Per Share (EPS) $0.76
Operating Cash Flow $419.5 million

Insider Transactions

Insider trading activity has been relatively stable, with no significant changes in the ownership percentage of major insiders. The Rollins family continues to hold a substantial portion of shares, reinforcing their commitment to the company.

Conclusion

The ownership landscape of Rollins, Inc. reflects a strong commitment from both family stakeholders and institutional investors, contributing to the company's stability and growth potential in the pest control industry.



Rollins, Inc. (ROL) Mission Statement

Rollins, Inc. is committed to providing superior pest control services through a combination of innovative practices and customer-focused solutions. The company aims to enhance the quality of life for its customers while maintaining a strong commitment to environmental stewardship and community involvement.

Corporate Vision

Rollins, Inc. envisions being the leading pest control provider in the world, recognized for its exceptional service and commitment to sustainable practices.

Key Principles

  • Customer Satisfaction: Focus on delivering unparalleled service to ensure customer loyalty and satisfaction.
  • Employee Empowerment: Invest in employee training and development to foster a skilled workforce.
  • Innovation: Continuously seek and implement innovative pest control solutions.
  • Environmental Responsibility: Prioritize eco-friendly practices in all operations.

Financial Overview

As of September 30, 2024, Rollins, Inc. reported significant financial metrics that reflect its operational success and growth trajectory:

Metric Q3 2024 Q3 2023 Variance (%)
Revenues $916.3 million $840.4 million 9.0%
Gross Profit $494.4 million $451.9 million 9.4%
Operating Income $191.8 million $177.1 million 8.3%
Net Income $136.9 million $127.8 million 7.1%
Adjusted EBITDA $219.5 million $208.0 million 5.5%
EPS (Diluted) $0.28 $0.26 7.7%

Strategic Goals

Rollins, Inc. is focused on achieving the following strategic goals in 2024:

  • Organic revenue growth of 7% to 8%
  • Inorganic revenue growth contributing 2% to 3%
  • Continued investment in employee training and customer service initiatives
  • Enhancing operational efficiency to improve margins

Market Position and Competitiveness

Rollins, Inc. operates in a competitive environment, facing challenges such as inflation and fluctuating market conditions. However, the company has maintained a strong market position through strategic acquisitions and a robust service offering.

Recent Acquisitions

In 2024, Rollins, Inc. completed the acquisition of Fox Pest Control for a total consideration of $339.5 million, which included:

Consideration Type Amount (in millions)
Cash Payments $302.8
Contingent Consideration $28.0
Holdback Liabilities $8.7

Operational Efficiency

Rollins, Inc. has focused on improving operational efficiency by leveraging technology and optimizing service delivery. As of September 30, 2024, the company reported:

Efficiency Metric Q3 2024 Q3 2023
Operating Cash Flow $146.9 million $127.4 million
Free Cash Flow $139.4 million $120.5 million

Commitment to Sustainability

Rollins, Inc. prioritizes sustainability in its operations, ensuring that pest control practices are safe for customers, employees, and the environment. The company actively seeks to reduce its carbon footprint and improve resource efficiency.



How Rollins, Inc. (ROL) Works

Business Overview

Rollins, Inc. operates as a premier global consumer and commercial pest control company, serving residential and commercial customers through its subsidiaries, which include Orkin, Terminix, and others. The company focuses on providing pest control services, termite control, and other related services. Its revenue model relies on both organic growth and acquisitions to expand its market presence and enhance service offerings.

Financial Performance

As of September 30, 2024, Rollins, Inc. reported significant financial metrics:

Metric Q3 2024 Q3 2023 Change (%)
Net Income $136.9 million $127.8 million 7.1%
EPS (Diluted) $0.28 $0.26 7.7%
Operating Cash Flow $146.9 million $127.4 million 15.4%
Revenues $916.3 million $840.4 million 9.0%
Gross Profit $494.4 million $451.9 million 9.4%
Operating Income $191.8 million $177.1 million 8.3%

Revenue Breakdown

For the nine months ending September 30, 2024, Rollins generated revenues totaling $2.6 billion, marking an increase of $237.3 million, or 10.2%, from the previous year. The growth was attributed to:

  • Organic revenue growth of 7.7%
  • Acquisitions contributing an additional 3.3%
  • Divestitures accounting for a reduction of 0.8%

Service Offering Performance

The company reported robust performance across its various service offerings:

Service Offering Revenue Growth (%)
Residential Pest Control 9.0%
Commercial Pest Control 10.2%
Termite and Ancillary Services 12.7%

Cost Structure

For the quarter ended September 30, 2024, Rollins faced the following cost dynamics:

  • Sales, General and Administrative (SG&A) expenses were $274.9 million, up 12.3% from the previous year.
  • SG&A as a percentage of revenue increased to 30.0% from 29.1%.
  • Depreciation and amortization rose by 12.1% to $28.0 million.

Balance Sheet Highlights

As of September 30, 2024, Rollins reported:

Metric Amount
Long-term Debt $447.0 million
Cash and Cash Equivalents $95.3 million
Net Debt $351.7 million
Net Leverage Ratio 0.5x

Market Trends and Strategy

Rollins continues to invest in growth initiatives, including technology enhancements and marketing strategies, to capitalize on the increasing demand for pest control services. The company aims to achieve an organic revenue growth target of 7% to 8% while leveraging acquisitions to enhance its service portfolio.

Dividend Policy

In Q3 2024, Rollins paid cash dividends totaling $72.8 million, or $0.15 per share, compared to $63.8 million, or $0.13 per share in Q3 2023. For the nine months ending September 30, 2024, total dividends paid were $218.0 million, or $0.45 per share.



How Rollins, Inc. (ROL) Makes Money

Revenue Streams

Rollins, Inc. generates revenue primarily through pest control services. The following table outlines the revenue by significant product and service offerings for the three and nine months ended September 30, 2024, compared to 2023:

Revenue Source Three Months Ended September 30, 2024 (in thousands) Three Months Ended September 30, 2023 (in thousands) Nine Months Ended September 30, 2024 (in thousands) Nine Months Ended September 30, 2023 (in thousands)
Residential Revenue $428,290 $402,559 $1,166,042 $1,069,403
Commercial Revenue $299,633 $273,865 $845,517 $767,472
Termite Completions, Bait Monitoring, & Renewals $177,674 $155,135 $515,758 $457,664
Franchise Revenues $4,282 $4,292 $12,688 $12,386
Other Revenues $6,391 $4,576 $16,534 $12,267
Total Revenues $916,270 $840,427 $2,556,539 $2,319,192

Growth Metrics

For the nine months ended September 30, 2024, Rollins, Inc. experienced a revenue increase of $237.3 million, or 10.2%, compared to the same period in 2023. Key growth metrics include:

  • Organic revenue growth of 7.7%.
  • Acquisitions contributed an additional 3.3% to revenue growth.
  • Divestitures accounted for a decrease of 0.8% in revenue.

Gross Profit and Margins

Gross profit for the quarter ended September 30, 2024, was $494.4 million, reflecting an increase of $42.5 million, or 9.4%, compared to $451.9 million in the same quarter of 2023. The gross margin improved to 54.0%, up from 53.8% in 2023.

Operating Income

Operating income for the quarter ended September 30, 2024, was reported at $191.8 million, an increase of 8.3% over the same period in 2023. The operating margin for this period was 20.9%, down from 21.1% in 2023.

Expenses

Sales, General, and Administrative (SG&A) expenses reached $274.9 million for the quarter ending September 30, 2024, marking an increase of $30.0 million, or 12.3%, from $244.9 million in Q3 2023. As a percentage of revenue, SG&A expenses increased to 30.0% from 29.1% in the prior year.

Net Income

Net income for the quarter ended September 30, 2024, was $136.9 million, a 7.1% increase from $127.8 million in the same quarter of the previous year. The earnings per share (EPS) was $0.28, compared to $0.26 in Q3 2023.

Cash Flow and Investments

Cash from operating activities for the nine months ended September 30, 2024, was $419.5 million, an increase of $43.9 million or 11.7% compared to $375.5 million in 2023. The company invested $105.5 million in acquisitions during this period, primarily for the acquisition of Fox Pest Control.

Debt and Interest Expense

As of September 30, 2024, Rollins, Inc. had long-term debt of $447.0 million. The net interest expense for the quarter was $7.15 million, compared to $5.55 million in the same quarter of the previous year.

Tax Information

The effective tax rate for the nine months ended September 30, 2024, was 25.6%, slightly down from 25.8% in 2023.

Market Presence

Revenue by geographic area shows that for the three months ended September 30, 2024, the U.S. accounted for $850.3 million of total revenues, while international revenues were $66.0 million.

Geographic Area Three Months Ended September 30, 2024 (in thousands) Three Months Ended September 30, 2023 (in thousands)
United States $850,253 $782,073
Other Countries $66,017 $58,354
Total Revenues $916,270 $840,427

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Article updated on 8 Nov 2024

Resources:

  • Rollins, Inc. (ROL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Rollins, Inc. (ROL)' financial performance, including balance sheets, income statements, and cash flow statements.
  • SEC Filings – View Rollins, Inc. (ROL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.