Q3 2024 Rollins Inc Earnings Call Transcript
Key Points
- Rollins Inc (ROL) reported a 9% increase in revenue for the third quarter, reaching $916 million, with healthy organic growth of 7.7%.
- The company continues to see solid revenue growth across all major service lines, including residential, commercial pest control, and termite and ancillary services.
- Rollins Inc (ROL) has made significant investments in sales staffing and marketing activities, which are expected to drive new customer growth.
- The company closed 32 tuck-in deals in the first nine months of the year, maintaining a healthy M&A pipeline.
- Rollins Inc (ROL) announced a 10% increase in its dividend, reflecting its disciplined approach to capital allocation and confidence in future growth.
- Operational disruptions caused by Hurricane Harvey impacted the company's performance, particularly in the Southeast United States.
- Investments in growth initiatives tempered margins in the quarter, with adjusted EBITDA margins down 80 basis points year-over-year.
- The company faced higher interest costs, which affected net income growth.
- Incremental investments in people and growth programs led to an increase in SG&A costs as a percentage of revenue.
- Despite strong revenue growth, the residential organic growth rate was slightly below historical levels, indicating potential challenges in consumer demand.
Greetings, and welcome to the Rollins, Inc. third quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Dan Bergman, Vice President of Investor Relations. thank, you may begin.
Thank you and good morning, everyone. In addition to the earnings release that we issued yesterday, the company has also prepared a supporting slide presentation. The earnings release and presentation are available on our website at www.randon.com. We have included certain non-GAAP financial measures as part of our discussion this morning. The non-GAAP reconciliations are available in the appendix of today's presentation. As well as in our earnings release. The Company's earnings release discusses the business outlook
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