Rollins Q1 Results Surpass Street Expectations

  • Rollins, Inc. ROL reported first-quarter FY22 sales growth of 10.3% year-over-year to $590.7 million, +7% on an organic basis, beating the consensus of $575.93 million.
  • The gross margin contracted by 120 bps to 50% for the quarter.
  • The operating income increased 3.9% Y/Y to $91.67 million, and the margin contracted by 95 bps to 15.5%.
  • Adjusted EPS improved to $0.15 from $0.14 in 1Q21, beating the consensus of $0.14.
  • Adjusted EBITDA was $117.79 million (+4.2% Y/Y), and the margin contracted by 116 bps to 19.9%.
  • Rollins generated cash from operating activities of $87.53 million, compared to $119.49 million a year ago. Free cash flow was $79.54 million.
  • Rollins held cash and equivalents of $258.34 million as of March 31, 2022.
  • Price Action: ROL shares are trading higher by 3.91% at $34 on the last check Wednesday.
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