Rollins Reports Q1 Revenue Up 11 Percent Year-Over-Year

ATLANTA - Rollins announced first quarter revenue of $658 million, an 11 percent increase year-over-year, with organic revenues* increasing 9.2 percent.

"Our first quarter results reflect our resilient business model and strong focus on execution by our team," said Jerry Gahlhoff, president and CEO, Rollins. "The demand environment is healthy and our pipeline for acquisitions remains robust to start the second quarter. We continued to see strong demand for our services in the quarter and remain very well positioned to continue to deliver strong results in 2023 and beyond. Our team remains focused on driving strong growth, improving margins and cash flows."

Kenneth Krause, executive vice president and CFO or Rollins said the company started the year strong with very healthy growth on both the top and bottom line. “We continue to focus on driving strong growth through both organic and inorganic investments like the Fox acquisition we made in April while delivering strong incremental margins," he added. "Cash flow generation was strong, and our balance sheet positions us well to continue to invest in profitable growth while maintaining our balanced approach to capital allocation," he said.

In an email update, Tim Mulrooney, equity research analyst at William Blair, wrote that “all three [Rollins] segments outperformed our expectations, with commercial revenue in particular well above our forecast. We suspect the strong consolidated revenue growth was supported by warmer temperatures (particularly across the Southeast) and a previously telegraphed pull-forward in price increases from April/May to early March.”

Also as part of Rollins’ reporting, the company announced that its acquisition of FPC Holdings, LLC (Fox Pest Control) in April 2023 for $318 million excludes $32 million of contingent consideration based upon the attainment of future growth and profitability levels

Source: PRNewswire