Rollins Inc. Achieves Record $3.1 Billion Revenue in 2023
2024-02-20
Rollins Inc., a prominent provider of pest control services, convened its fourth-quarter and full-year 2023 earnings call on February 15, 2024. Throughout the meeting, the company delved into various financial and operational facets of its business.
In the fiscal year 2023, Rollins Inc. showcased robust financial performance, achieving a significant milestone with revenue hitting $3.1 billion. The company experienced a sturdy revenue growth of 14%, primarily fueled by double-digit increases across all service offerings. Organic growth played a pivotal role, accounting for 8% of the total revenue surge, while acquisitions contributed approximately 6%. Moreover, there were notable enhancements in profitability, with gross margins benefiting from a favorable price-cost dynamic and improvements in key cost categories. The adjusted operating margin closed the year at 19.7%, marking a 140 basis points improvement. GAAP EPS surged by over 18% for the year, and adjusted earnings per share witnessed a 20% increase.
In 2023, Rollins Inc. executed various strategies to bolster market share and support organic growth. These strategies encompassed digital marketing, cross-selling, service bundling, and door-to-door sales approaches. Leveraging the scale of its Orkin brand across North America, the company efficiently catered to commercial clients nationwide in both the U.S. and Canada, resulting in approximately 11% commercial revenue growth for the year.
Regarding acquisitions, Rollins Inc. welcomed 24 new businesses into its fold in 2023. Notably, the addition of Fox Pest Control marked the second-largest acquisition in the company's history. Additionally, the company divested its lawn care business, realizing a pre-tax gain of around $15 million.
Throughout 2023, Rollins Inc. placed a strong emphasis on enhancing its recruitment processes by dedicating substantial efforts to onboard the right talent in support functions and customer-facing roles. The company also prioritized safety measures and ensuring the well-being of its drivers and the communities they served.
Looking towards the future, Rollins Inc. has outlined key priorities for 2024, including strategic pricing management, price adjustments, effective management of rate cards, cross-selling endeavors, a focus on termite and ancillary services, and driving growth in the commercial segment. The company remains steadfast in its commitment to dividend funding and anticipates continuing its disciplined approach to mergers and acquisitions.
In conclusion, Rollins Inc. showcased robust financial performance in 2023, underpinned by organic growth, strategic acquisitions, and targeted initiatives. The company's unwavering focus on safety, customer satisfaction, and employee retention positions it favorably for sustained success in the competitive pest control services industry.