Rollins Inc (ROL) Reports Q3 2023 Financial Results: Revenue Grows by 15.2%
Rollins Inc (NYSE:ROL) reported a 15.2% increase in Q3 revenues, reaching $840 million.
Operating income for the quarter was $177 million, marking a 21.8% increase over Q3 2022.
GAAP EPS improved by 18.2%, while Adjusted EPS saw a 27.3% improvement.
The company invested $21 million in acquisitions and repurchased $300 million of its stock during the quarter.
On October 25, 2023, Rollins Inc (NYSE:ROL), a leading global consumer and commercial services company, released its unaudited financial results for the third quarter of 2023. The company reported significant growth in revenue and improvements in GAAP EPS and Adjusted EPS.
Financial Highlights
Rollins Inc (NYSE:ROL) reported third-quarter revenues of $840 million, marking a 15.2% increase over the third quarter of 2022. The company's operating income for the quarter was $177 million, a 21.8% increase over the same period in the previous year. The operating margin was 21.1% of revenue, an increase of 120 basis points over Q3 2022.
The company's net income for the quarter was $128 million, a 17.3% increase over the prior year. The GAAP EPS was $0.26 per diluted share, an 18.2% increase over the prior year EPS of $0.22. The Adjusted EPS was $0.28 per diluted share, marking a 27.3% increase over the prior year.
Rollins Inc (NYSE:ROL) also reported an Adjusted EBITDA of $209 million for the quarter, a 22.7% increase. The Adjusted EBITDA margin was 24.8% of revenue, an increase of 150 basis points over the third quarter of 2022.
Investments and Share Repurchases
The company's operating cash flow for the quarter was $127 million. During the quarter, Rollins Inc (NYSE:ROL) invested $21 million in acquisitions and $7 million in capital expenditures. The company also paid dividends totaling $64 million and repurchased $300 million of its stock.
Management Commentary
The team delivered a strong third quarter with record revenue and an improving margin profile," said Jerry Gahlhoff, Jr., President and CEO. "As we look to close out 2023, we are well positioned for continued growth, both organically, as well as through acquisitions, and remain focused on continuous improvement initiatives to enhance profitability across our business Mr. Gahlhoff added.
It was encouraging to see the strong growth in revenue and profitability in the quarter, as the team delivered double-digit revenue growth and 150 basis points of improvement in adjusted EBITDA margins" said Kenneth Krause, Executive Vice President, CFO and Treasurer. Additionally, we continued to execute a very balanced capital allocation program with a focus on investing for growth while returning cash to shareholders through a growing dividend and a share repurchase program, Mr. Krause concluded.
Looking Ahead
Rollins Inc (NYSE:ROL) remains focused on driving growth and enhancing profitability. The company's robust pipeline for acquisitions and solid demand for its services suggest a promising outlook for the remainder of 2023.
Explore the complete 8-K earnings release (here) from Rollins Inc for further details.
This article first appeared on GuruFocus.
