- 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.
Read at Benzinga