Rollins Reports 2023 Third Quarter Revenues Up 9 Percent YOY

ATLANTA - Rollins reported third quarter revenues were $916 million, an increase of 9 percent over the third quarter of 2023,

Jerry Gahlhoff, Jr., president and CEO of Rollins, said the company delivered a strong third quarter with organic revenue growth of 7.7 percent, despite some disruption to operations from Hurricane Helene.

"Our thoughts are with all of those that have been impacted by recent hurricanes,” said Gahlhoff. “Our teams have worked together to support our teammates and communities in the aftermath of these natural disasters, and our efforts will continue in the days, weeks, and months ahead. I would like to thank our team for their ongoing commitment to our customers and to each other.”

Kenneth Krause, executive vice president and CFO, Rollins, added, "We continue to invest in our team and other resources aimed at capitalizing on a healthy market environment to drive further growth in our business. The 20 basis points of leverage in our gross margin was offset by growth investments that tempered our overall margin performance in the quarter but will support our long-term objectives. We are on track to deliver healthy margin improvement and double-digit earnings growth for the year.”

The company also announced that effective Jan. 1, 2025, Gary W. Rollins will transition from executive chairman of the board to executive chairman emeritus in accordance with its long-planned leadership succession goals. Rollins will be succeeded by John F. Wilson, the current vice chairman, as executive chairman of the board.  "I have had the pleasure of working closely with John since he joined our company in 1996. I look forward to supporting him as he transitions to this important leadership role, as I will remain an active and engaged member of our exceptional Board of Directors," said Rollins.

Other highlights include:

• Quarterly operating income was $192 million, an increase of 8.3 percent over the third quarter of 2023. Quarterly operating margin was 20.9 percent, a decrease of 20 basis points versus the third quarter of 2023. Adjusted operating income was $196 million, an increase of 4.5 percent over the prior year.
• Quarterly net income was $137 million, an increase of 7.1 percent over the prior year. Adjusted net income was $140 million, an increase of 3.3 percent over the prior year.
• Operating cash flow was $147 million for the quarter, an increase of 15.4 percent compared to the prior year. The Company invested $24 million in acquisitions, $8 million in capital expenditures, and paid dividends totaling $73 million.

Source: PR Newswire