On February 12, 2025, Rollins Inc (ROL, Financial), a global leader in pest-control services, released its 8-K filing detailing the financial results for the fourth quarter and full year of 2024. The company, known for its extensive operations across North America, South America, Europe, Asia, Africa, and Australia, reported significant revenue growth, driven by both organic and acquisition-related activities.
Rollins Inc (ROL, Financial) reported fourth-quarter revenues of $832 million, marking a 10.4% increase compared to the same period in 2023. This figure exceeded the analyst estimate of $817.64 million. The company's organic revenues grew by 8.5%, while acquisition-related revenues contributed an additional 2.4%. Despite these gains, the net income for the quarter decreased by 2.9% to $106 million, with a GAAP EPS of $0.22, which was flat compared to the previous year. However, the adjusted EPS rose by 9.5% to $0.23, aligning with analyst expectations.
For the full year 2024, Rollins Inc (ROL, Financial) achieved revenues of $3.4 billion, a 10.3% increase from 2023, surpassing the annual revenue estimate of $3.376.99 billion. The company's operating income rose by 12.7% to $657 million, with an operating margin improvement of 40 basis points to 19.4%. These achievements underscore Rollins' robust position in the personal services industry, particularly in pest control, where consistent revenue growth is crucial for maintaining market leadership.
Rollins Inc (ROL, Financial) reported an adjusted EBITDA of $181 million for the fourth quarter, a 9.0% increase from the previous year, with a margin of 21.8%. For the full year, adjusted EBITDA reached $771 million, up 11.6%, with a margin of 22.8%. Operating cash flow for the year increased by 15.0% to $608 million, highlighting the company's strong cash generation capabilities, which are vital for funding acquisitions and capital expenditures.
Our team delivered a strong finish to the year, exceeding our own revenue expectations and delivering healthy earnings growth for the full year," said Jerry Gahlhoff, Jr., President and CEO.
Rollins Inc (ROL, Financial) reported a gross profit of $426.7 million for the fourth quarter, representing an 11.2% increase from the previous year, with a gross profit margin of 51.3%. The company's total assets grew to $2.82 billion, up from $2.60 billion in 2023, driven by increases in goodwill and operating lease right-of-use assets. Total liabilities stood at $1.49 billion, with a notable reduction in long-term debt from $490.8 million to $395.3 million, reflecting the company's efforts to strengthen its balance sheet.
| Metric | Q4 2024 | Q4 2023 | Change (%) |
|---|---|---|---|
| Revenue | $832 million | $754 million | 10.4% |
| Net Income | $106 million | $109 million | -2.9% |
| GAAP EPS | $0.22 | $0.22 | 0% |
| Adjusted EPS | $0.23 | $0.21 | 9.5% |
Rollins Inc (ROL, Financial) demonstrated strong financial performance in 2024, driven by strategic acquisitions and organic growth. The company's ability to exceed revenue expectations and maintain robust cash flow positions it well for future expansion and investment opportunities. However, the slight decline in net income and flat GAAP EPS highlight potential challenges in managing costs and maintaining profitability. As Rollins continues to focus on operational execution and strategic acquisitions, its financial health and market position are expected to remain strong.
Explore the complete 8-K earnings release (here) from Rollins Inc for further details.
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