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Rollins Shares Drop Post Q2 Results; Reveals CEO Succession Plan

Benzinga · 07/27/2022 14:03
  • Rollins, Inc. (NYSE:ROL) reported second-quarter FY22 sales growth of 11.9% year-over-year to $714.05 million, +8.7% on an organic basis, beating the consensus of $686.33 million.
  • Rollins' residential, commercial, and termite and ancillary services each experienced double-digit revenue percentage growth.
  • Adjusted EPS was $0.20, in line with the consensus of $0.20.
  • The operating income decreased 0.45% Y/Y to $132.96 million, and the margin contracted by 231 bps to 18.6%.
  • Adjusted EBITDA was $159.19 million (+1.2% Y/Y), and the margin contracted by 235 bps to 22.3%.
  • Rollins generated cash from operating activities year-to-date of $214.82 million, compared to $219.21 million a year ago. Free cash flow was $198.94 million.
  • Rollins held cash and equivalents of $220.96 million as of June 30, 2022.
  • Separately, Rollins announced its long-term leadership succession plan, effective January 1, 2023.
  • The company's current President and COO, Jerry Gahlhoff Jr., will become President and CEO.
  • Current Chairman and CEO Gary W. Rollins is expected to remain Chairman of the Board of Directors.
  • Price Action: ROL shares are trading lower by 5.16% at $34.35 on the last check Wednesday.