rollins earnings call transcriptespn conference usa football teams 2023

We feel like that's - when we think about synergies and we think about integration as we started the call, we certainly are taking a pragmatic approach with respect to synergies and synergy capture. Most of these price increases will be initiated beginning in early March and some were already implemented in January. Free cash flow increased by over 17% in the most recent period. It was good to see the improvements in SG&A as a percentage of revenue to finish the year. Acquisitions drove approximately 2% of the total revenue growth in the quarter. Rollins, Inc. (NYSE: ROL) Q4 2022 Earnings Call Transcript February 16, 2023 Operator: Greetings, and welcome to the Rollins Inc. Fourth Quarter 2022 Earnings Call. Thanks. However, we feel like the investments we're making in our people, in our technicians and our sales folks, the focus we're making on cross-selling and driving cross-sell and a wider share of wallet with each and every individual customer, is paying off. Thanks, Jerry, and thanks, Ken. Our commercial line has also presented a strong year for us with 10.3% growth over the prior year. Turning to profitability. First training remains crucial for keeping our customers out of harm's way. So we feel confident in our ability to continue to grow our business over the long term at that mid to high single-digit sort of growth rate all the while continuing to be very active on the acquisition front. This is certainly good to see. 28, 2021 2:14 PM ET Rollins, Inc. (ROL) SA Transcripts 130.6K Follower s Q1:. And so we're -- and Ken's finding some ways to help us do that. Greetings and welcome . Thank you, Jerry, and good morning, everyone. Got it. Our 2020 . Corporate Executives. Share . Ken will address the financials in more detail in a moment, but I'd like to highlight three key areas of progress in the quarter. Thank you, everyone for joining us today, and we appreciate your interest in our company. While we successfully completed four acquisitions during the fourth quarter we proactively remain on the sidelines during the last few months of 2022 and turned our attention to 2023 deals in our pipeline. At this time, all participants are in a listen-only mode. And we feel very optimistic and bullish about our opportunity to continue to grow our position with our really important residential customers into the future. Today's Change (0.27%) $0.11 Current Price $41.27 Price as of May 19, 2023, 11:06 a.m. Stay tuned on this front, but know, we are focused on taking action that will help improve performance in this area in years to come. Complementing our existing guidelines and protocols we continue to implement new initiatives designed to empower our employees and enable an accountable, safety-driven culture. Not only does this lower our fuel requirements, it also has a direct impact on our labor costs. So we feel confident in our ability to continue to grow our business over the long term at that mid- to high single-digit sort of growth rate, all the while continuing to be very active on the acquisition front. I want to begin by welcoming P. Russell Hardin as Rollins newest board member. Image source: The Motley Fool. That's helpful. 27, 2023 2:11 PM ET Rollins, Inc. (ROL) SA Transcripts 138.23K Follower s Follow Play Earnings Call Rollins, Inc. ( NYSE: ROL) Q1 2023 Earnings Conference Call April 27, 2023. So for example, the number of people searching for the category or words like pest control. The cost of replacing just a single tire remains sky high. Our dividends Q2 2022, totaled $49.2 million or an increase of 22% over 2021, while cash used for acquisitions increased 218.7% to $36.4 million for 2022. During 2022 in light of the ongoing inflationary challenges, we brought forward our annual price increase program to earlier in the year. Let's look at the quarterly results in more detail. President, Chief Financial Officer and Treasurer; and Julie Bimmerman, Group Vice President Finance and Investor Relations. Thank you. Thank you very much for taking the questions. That's why we believe that cross-selling will continue to increase. I just wondered if you could talk about some of those trends in the industry more broadly. We are happy to take any questions at this time. We saw good performance on gross profit as pricing more than offset inflationary pressures. We don't break out the termite business from the ancillary, so it's hard to report that. I don't know, John, you have anything to add to that? This is actually John filling in for Seth. And Jerry if I may add as it relates to cross-selling, a critical aspect of that is being well-staffed in both your sales management arena and your sales team. Across all the service lines I just discussed, a key driver of growth is pricing. Most of these price increases will be initiated beginning in early March, and some were already implemented in January. We expect to make progress on this in the first quarter. Apr. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. And so, that's why with these acquisitions, we don't go into looking to rock their world and go so carefully on the integration and/or assimilation. With that, I look forward to answering your questions in a few moments. GAAP operating income was $120 million or 18.1% of revenue. Now turning to the Fox Pest Control acquisition, I'm very excited about this recent event. On our year-end call, we discussed our intention to initiate an earlier price increase this year, and that certainly helped us, particularly in March. While still strong, we realized slower growth in the residential sector. At this time, all participants are in a listen-only mode. Thank you. Please. Second, quarterly adjusted EBITDA margins were a healthy 22.1%, up approximately 180 basis points versus the same period a year ago. We're hopeful that -- I mean we've got a number of levers that we're pulling to continue to maintain our margin profile. Tim Mulrooney -- William Blair -- Analyst. Please proceed with your question. By making this change, historical earnings increased by $0.01 per share per year. We feel like that $90 million to $100 million would probably come into our business very similarly to how our business is reported. Yes, this is Jerry. We are actively evaluating options to refinance our credit facilities that are set to expire in April of 2024. Operationally, we have strong momentum in our markets. That'll carry through for the remainder of the year. We used a combination of existing cash balances and borrowings to pay for this strategic acquisition. Please proceed with your question. I mean it sounds like you're pulling forward the pricing increases even earlier this year which was surprising. So that's our aim. Year-to-date we have made acquisitions totaling just over $119 million and paid dividends of approximately $212 million. Thank you very much for taking the questions. And then maybe just a broader question on organic growth. Yes, certainly. Image source: The Motley Fool. Let me repeat we understated historical reported earnings by $0.01 per share per year. We continue to see tremendous opportunities that will enable us to continue to drive growth through acquisition in the quarters and years to come. We expect to see meaningful improvement in growth from acquisitions for the remainder of the year, stemming from the acquisition of Fox we announced earlier this month. A large percentage of that business is resi sector. We saw improvements in margins associated with people costs, as well as fleet costs. Ladies and gentlemen, that concludes our question-and-answer session. And we do continue to ramp up our sales staffing even in our 2023 plans are to continue to ramp up our sales team volume to be able to handle and be out there talking to our existing customers about adding services to their programs. Thank you. Please proceed with your question, Grant. If you recall, we adjusted the prior year quarterly EBITDA margin by the impact of the non-recurring SEC matter. We did not have any non-GAAP adjustments to operating income or EBITDA this year. Looking closer at the financial results and the growth we delivered. Thanks. I'll now turn the call over to Ken. Let me begin by saying that, we're extremely pleased with our fourth quarter and full year results, and I'm also equally proud of the hard-working men and women of our company that continue to drive our growth through great customer service. One more just a question on pricing. Please refer to yesterday's press release and the company's SEC filings, including the risk factors section of our Form 10-K for the year ended December 31, 2022, for more information, and the risk factors that could cause actual results to differ. In 2023, we are bringing this forward even earlier. Thank you very much. As you know, Ashish, we don't provide guidance. Or still above that historical average level? As I said in my prepared comments, the second quarter, you're going to see a little bit more investment in customer acquisition costs. Both brands have seen an improvement in their on-time delivery metrics since implementation started. Jerry and Ken will provide greater detail, but all credit goes to our tremendous team who continue to overcome many obstacles. There's always challenges. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Corporate Executives. Quarterly revenue was $661 million, up just over 10% on a reported basis. And it's just an estimation, but that's what we're estimating, that our underlying growth rate is without price. I will speak about incremental margins shortly, but as Jerry indicated, they were a bright spot. So that's good news for us. So my first question is on the residential side. Thanks. We had a lot less of the impact of COVID than we did the prior year in January. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. The cost of replacing just a single tire remains sky high. All earnings call transcripts on Rollins, Inc. (ROL) stock. By now, you should have all received a copy of the press release. It was just an overall better environment that helped with demand. On the M&A kind of rollover into 2023, any color on what's already embedded in there from deals that you closed in 2022? First one, just on the organic growth. I was just wondering if you can talk about what's really driving it. Thanks for taking the questions. Yeah, Tim, this is Jerry. Additionally, all our brands are increasing their rate cards. It was just an overall better environment that helped with demand. Acquisitions drove 3% of revenue growth in the quarter and for the year. Thanks for the question. And while we are managing through the challenges associated with higher interest rates, we're seeing good growth come through that business. Thank you.Our next question comes from the line of Ashish Sabadra with RBC Capital Markets. As we begin 2023, the company remains well positioned to deliver on our long-term business objectives. We remain focused on providing our customers with the best customer experience and driving growth through acquisition. Also, during the quarter, we corrected immaterial misstatements in the financial statements. Entering text into the input field will update the search result below, this call, excluding historical facts, are subject to a number of risk and strategies and actual results made differ materially from any statement we make today. Thank you. There are no further questions at this time. Let me begin with a few financial highlights for the first quarter of 2023. In 2023, we are bringing this forward even earlier. Reflecting solid execution of our operating strategies, Rollins delivered another strong performance in the fourth quarter, highlighted by total revenue growth of over 10% in the fourth quarter and over 11% for the full year. [Operator instructions] As a reminder, this conference is being recorded. I'll turn the floor back to management for final comments. We're very optimistic about what's in store for the New Year as leveraging strategic acquisitions remains a focus of our growth strategy. Large customer wins, new programs you've established, a pick-up in cross-selling, anything you can highlight as what contributed to that unexpected strength in that commercial piece? However, before I turn the call over to Ken, I want to emphasize that our team at Rollins had a successful year in 2022, and we are confident in our ability to continue driving growth and improving profitability in our business. [Operator Instructions] Our next question comes from the line of Oliver Davies with Redburn. At this time, all participants are in a listen-only mode. And it's just an estimation, but that's what we're estimating that our underlying growth rate is without price. We appreciate all of you joining us for our fourth quarter 2022 earnings call. Greetings, and welcome to the Rollins, Inc. fourth quarter 2022 earnings call. If you have an ad-blocker enabled you may be blocked from proceeding. In the quarter, on an as-reported basis, we generated incremental adjusted EBITDA margins that we're approaching 40%. When we look at the business, there's two or three broad buckets of costs. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. We generated $93 million of free cash flow on $88 million of earnings. Our press release and our 10-K that we expect to file later today will include more information on these changes. Detailed price information for Rollins Inc (ROL-N) from The Globe and Mail including charting and trades. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. However, if anyone is missing a copy, and would like to receive one, please contact our office at 212-827-3746, and we'll send you a release and make sure you're on the company's distribution list. Thank you. Just a point of clarification, however, if I may. And then I guess on the termite side, I'm assuming a decent amount of that grows from ancillary sales. Please proceed with your question. So, Tim, this is Jerry. We're trying to stay ahead of the inflationary cycle that we're all feeling and trying to pass along that price and price our the value of the services that we're providing to our customers. In the third quarter, we talked about that. Brian Butler -- Stifel Financial Corp. -- Analyst. We're very optimistic about what's in store for the new year as leveraging strategic acquisitions remains a focus of our growth strategy. Hi, guys. For the year, we saw elevated costs associated with casualty reserves up $12 million for the year with $10 million of that in the third quarter alone. We appreciate all of you joining us for our fourth quarter 2022 earnings call. We delivered approximately 32% incremental margins and grew GAAP earnings per share 20%. Our earnings release discusses our business outlook and contain certain forward-looking statements. And last but not least, quarterly free cash flow was very healthy with operating cash flow growing over 20% versus the same period a year ago. We continue to focus on execution and driving long-term profitable growth for our shareholders. As many of you are aware, Rollins has a long-standing companywide focus on personal safety. Kenneth Krause -- Executive Vice President, Chief Financial Officer. So you could see that the rollover may not be at or above 3% like, it has been the last couple of years, it might be slightly lower than that. As you know, approximately 80% of our business is recurring. Theres always puts, and there's takes, and there might be one quarter where you might be below that, but you might have one quarter where you exceed that. Each of these brands are making meaningful progress at improving efficiency. Yes, Tim, this is Jerry. Julie Bimmerman -- Group Vice President, Finance and Investor Relations. We saw a good performance on gross profit as pricing more than offset inflationary pressures. We're happy to take any questions at this time. We continue to see tremendous opportunities that will enable us to continue to drive growth through acquisition in the quarters and years to come. Yes, thank you Joe, and good morning. But with the consumer outlook may be a little bit murkier as we turn the corner into '23, I'm curious how you're thinking about the level of pricing this year. While a month is not a long-term trend it was good to see solid demand to start the year. And we've just got no relief there. Through consistent growth and expansion, Fox now provides general pest control services for homeowners from 32 locations in 13 States. We'll continue to deploy capital internationally, but I have to remind you also that the U.S. is our largest market, it's our fastest-growing market and it's highly fragmented. And we do continue to ramp up our sales staffing, even in our 2023 plans are to continue to ramp up our sales team volume to be able to handle, and be out there talking to our existing customers about adding services to their programs. And so, we feel like it's very realistic in achieving that $90 million to $100 million this year as we think about the remainder of the year. We'll continue to look for tuck-in acquisitions, bolt-on acquisitions. However, we certainly continue to look at a number of opportunities to continue to improve our cost structure going forward. It's hard to parse it down into that level of detail. We're trying to stay ahead of the inflationary cycle that we're all feeling and trying to pass along that price and price our -- the value of the services that we're providing to our customers. John, would you like to begin? First, training remains crucial for keeping our customers out of harm's way. There's people, there's materials and then there's fleet. Thank you, Julie. We're going to keep going. Thank you very much. To me, it's pretty simple. And Jerry, if I may add, as it relates to cross-selling, a critical aspect of that is being well-staffed in both your sales management arena and your sales team. That's just the seasonality of our business. ET. While we successfully completed four acquisitions during the fourth quarter, we proactively remain on the sidelines during the last few months of 2022 and turned our attention to 2023 deals in our pipeline. Pricing remains at the top of our agenda and we are evaluating opportunities to implement further price increases in the first quarter of 2023. And so, that'll come through our residential segment of our business. Our partnership with Fox was an 18-month process. GAAP earnings per share were $0.17, up from $0.14 in the same period a year ago. The replay can be accessed by dialing 201-612-7415 with the passcode 13735127. The replay can be accessed by dialing 201-612-7415 with the passcode 13735127. There will be a replay of the call, which will begin one hour after the call and run for one week. Thank you, Ken. We made acquisitions totaling $9 million, and we paid $64 million in dividends during the quarter. So what are you seeing on just the sort of the termite business? Since Ken's been here, it's one of the hot topics on his radar screen is our SG&A and how can we get better and how can we improve, and Ken has challenged us and brought that equation to the table. Where we haven't seen any relief is in repairs and maintenance. And so, you'll probably see a little bit more investment, a little heavier investment come through in that area as we think about the second quarter, but we feel very good about long-term value creation from those customers that will help us deliver that incremental margin profile of 30 plus percent. But what we've reiterated in our prepared comments is, we are incredibly active with respect to acquisitions. Thank you, John, and thank you all for joining our call today. We delivered improvements in SG&A expense as well. We expect the transaction to be accretive to earnings and cash flow in the first full year of ownership, and will provide meaningful long-term financial benefits as well. There are multiple benefits to tying Fox closely with HomeTeam, who have also been utilizing door-to-door campaigns to activate Taexx customers in their predominantly residential business for over 20 years. Thank you. Can you provide maybe some color on how much maybe was cross-selling versus price and how that opportunity for cross-selling looks going into 2023? Free cash flow increased by over 20% in the quarter and was up a very healthy 16% for the entire year. EBITDA margin was 21.2%, up a strong 130 basis points over the prior year EBITDA margin. Thank you, Ken. And we've just got no relief there. We made acquisitions totaling $15 million, and we paid $64 million in dividends. We believe these initiatives will help ensure our workforce returns home to their family safely each and every day. We're also working on a new employee-level program to incentivize the highest levels of safe-driving behaviors. Stay tuned on this front because it's an area that Jerry and I are spending a lot of our time. The company is also offering investors a supporting slide presentation, which can be found on Rollins' website at www.rollins.com. Hi, this is Hans on for Stephanie. Our next question comes from the line of Stephanie Moore with Jefferies. We had a really good performance in the fourth quarter with respect to our cost control programs and SG&A. Over the years, we've built a very successful playbook for their smooth transitions into our company, and we are extremely excited about our path ahead with Fox. Thank you, Ken. Rollins Q3 2021 Earnings Call Transcript Wed., October 27, 2021 | AlphaStreet. That's great color. [Operator Instructions]. Please proceed with your question. Part of that's related to COVID. By making this change historical earnings increased by $0.01 per share per year. Full Article So that's our aim. Fox Pest Control was formally established in 2012, initially marketing through the door-to-door sales effort in historically underserved pest control markets. And last but certainly not least, our people costs, we continue to manage that very closely. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. And from the customer perspective these service offerings are from a trusted partner. We're also working on a new employee-level program to incentivize the highest levels of safe-driving behaviors. In addition to enabling us to reach our customers in a more efficient and productive manner, we found these initiatives can meaningfully reduce both our overall mileage between service visits and drive time for the technician. The Motley Fool has positions in and recommends Rollins. Or is it even better than that? National Head of Investment, Fiduciary and Banking Services. These particular forward-looking statements, and all other statements that have been made on this call, excluding historical facts, are subject to a number of risk and strategies and actual results made differ materially from any statement we make today. We very good take rates on that. We ended the current period with $221 million in cash, of which, $62.9 million was held by our foreign subsidiaries. We -- you got to keep in mind that as we wound down 2022 November, December, we reduced marketing -- some of our marketing spend or advertising spend in the back half of the year and so that softened the end of the fourth quarter of last year. Thanks. As you know, we had poor experience last year. So my first question is on the residential side. We see an opportunity to go after and get customers that are going to create long-term value for our business. Please proceed with your question. Bringing new business in at the volume they're bringing in, that's what's making the difference. John Wilson. Returns as of 06/28/2023. Last quarter, I know you reduced marketing spend for the quarter year-over-year. So we actually saw a little bit more of pricing not only from pulling it forward, but because we were passing along a higher pricing -- price inflation to our customers. Organic growth came in at 6.9% compared with 7.8% for the full year. Thank you. Second, quarterly adjusted EBITDA margins were a healthy 22.1%, up approximately 180 basis points versus the same period a year ago. So that's about 120 basis points of the improvement. I would now like to turn the call over to your host, Joe Calabrese. Thank you for taking my questions, and congratulations on the strong quarter. Rollins Q2 2021 Earnings Call Transcript Wed., July 28, 2021 | AlphaStreet. We're not committing to necessarily a specific margin target, but we do see an opportunity to continue to improve our margin profile over the long term. Hi. And so we continue to be very active on this front. Rollins Inc. (ROL) CEO Gary Rollins on Q2 2022 Results - Earnings Call Transcript | Seeking Alpha Ooops. Looking closer at the financial results and the growth we delivered. Turning to profitability, we realized 30 basis points improvement in gross profit margin. You mentioned Fox Pest Control, about one-third of the customers are acquired through digital channels. Just adding on to what Jerry had mentioned, the integration efforts are certainly really important to us. Please help me welcome Russ Hardin. So on the -- really on the Orkin side, we are looking to very similar levels to what we did in prior year, where we've actually gotten more aggressive in our other brands than we were at prior year. I don't know John you have anything to add to that? And last, but certainly not least, our people costs, we continue to manage that very closely. Just a couple of quick ones for me. Just wanted to dig in a bit more on the resi business in Q4. Quarterly free cash flow was very strong to finish the year. We made acquisitions totaling $9 million and we paid $64 million in dividends during the quarter. That's helpful. And if you look at the business over the long-term and eliminating some of the fluctuations and volatility that you saw during COVID and recovery from COVID, this market has the opportunity to continue to grow at that mid to high single digits. We will be following that slide presentation on our call this morning, and encourage you to view that with us. SG&A improved 40 basis points when stated as a percentage of revenue during the most recent quarter. We were better staffed and a better staff position. Rollins remains very well-positioned to drive ancillary growth within this business. Or are there perhaps further synergies we should be expecting in 2024 or later? HomeTeam should complete their implementation and be at full utilization by the end of the second quarter. It's hard to provide an estimate on that as we think about the next quarter or two. But as Ken said, on the M&S side, we've got those margins back in line. We remain focused on providing our customers with the best customer experience and driving growth through acquisition. We discussed these charges with you back in October and continue to focus on implementing a number of key programs that Jerry mentioned previously that are aimed at improving in this area. Across the board, I think, we had pretty good weather. We are making good progress on a number of general financial housekeeping issues that will help position us best as we continue to grow our business. At just under 30% of revenue, we feel there are opportunities to drive improvement. With that, I'll turn the call back over to Jerry. As we begin 2023, the company remains well positioned to deliver on our long-term business objectives. By now, you should have all received a copy of the press release. We closed on our new facility before the banking crisis in March, and we were able to successfully secure a more modernized facility, that, in addition to other benefits, provides us with the opportunity to incorporate sustainability metrics into the revolver in the future. Looking at four major buckets of costs, people, fleet, materials and supplies, and insurance and claims. Yes, thank you for the question. We did not have any non-GAAP adjustments to operating income or EBITDA this year. Please proceed with your question. We discussed our intent to do this on our year-end call, and it was good to see the impact of the steps we took on revenue and profitability. But how should we think about that level of pricing increase? Hi, good morning. Rollins ( ROL -0.17%) Q1. I would add, we're in a really good position to take advantage of strong demand in the marketplace as it's there. But in summary these are non-cash-related items that reduced what we originally reported for earnings by an immaterial amount. During 2022, we successfully completed 31 acquisitions, representing a total of $119 million invested. You got to keep in mind that as we wound down 2022, November, December, we reduced marketing -- some of our marketing spend or advertising spend in the back half of the year, and so that softened the end of the fourth quarter of last year. While market data indicates this to be consistent across the industry, we started 2023 with strong residential revenue performance in January. Greetings, and welcome to the Rollins Inc. Fourth Quarter 2022 Earnings Call. As the case in the prior year, we expect to see SG&A tick up slightly in Q2 as we invest more heavily in customer acquisition-related costs across the business during the start of our more busy season in the second quarter. Do you expect it to be more in line with the historical average, or still above that historical average level? Complementing our existing guidelines and protocols, we continue to implement new initiatives designed to empower our employees and enable an accountable, safety-driven culture. Income before income taxes was $55.4 . We're also continuing to add to our sales force and emphasizing bundling of multiple services like pest and mosquito through our call center operations.

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