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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 25, 2023
ROLLINS, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-4422 51-0068479
(State or other jurisdiction of incorporation)
(Commission File Number) (I.R.S. Employer Identification No.)
2170 Piedmont Road, N.E., Atlanta, Georgia 30324
(Address of principal executive offices) (Zip code)
Registrant’s telephone number, including area code: (404) 888-2000
Not Applicable
(Former name of former address, if changes since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $1.00 Par Value Per Share ROL NYSE
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company    o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o On October 25, 2023, Rollins, Inc. issued a press release announcing its unaudited financial results for the third quarter ended September 30, 2023. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.



Item 2.02. Results of Operations and Financial Condition.
The information in this Item 2.02, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such a filing or document.
Item 9.01. Financial Statements and Exhibits.
Exhibit No. Description
99.1
104 Cover Page Interactive Data File (embedded with the Inline XBRL document)



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Rollins, Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ROLLINS, INC.
Date: October 25, 2023
By: /s/ Kenneth D. Krause
Name: Kenneth D. Krause
Title:
Executive Vice President, Chief Financial Officer and Treasurer
(Principal Financial Officer)

EX-99.1 2 rol-20231025xex991.htm EX-99.1 Document

Exhibit 99.1
For Further Information Contact
Lyndsey Burton (404) 888-2348
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FOR IMMEDIATE RELEASE
ROLLINS, INC. REPORTS THIRD QUARTER 2023 FINANCIAL RESULTS

15% growth in revenue drives an 18% improvement in GAAP EPS and 27% improvement in Adjusted EPS
ATLANTA, GEORGIA, October 25, 2023: Rollins, Inc. (NYSE:ROL) (“Rollins” or the “Company”), a premier global consumer and commercial services company, reported unaudited financial results for the third quarter of 2023.
Key Highlights

•Third quarter revenues were $840 million, an increase of 15.2% over the third quarter 2022 with organic revenues* increasing 8.4%. The stronger dollar versus foreign currencies in countries where we operate reduced revenues by 10 basis points during the quarter.
•Quarterly operating income was $177 million, an increase of 21.8% over the third quarter of 2022. Quarterly operating margin was 21.1% of revenue, an increase of 120 basis points over the third quarter of 2022. Adjusted operating income* was $188 million, an increase of 29.0% over the prior year. Adjusted operating income margin* was 22.3%, an increase of 240 basis points over the prior year.
•Quarterly net income was $128 million, an increase of 17.3% over the prior year net income. Adjusted net income* was $136 million, an increase of 24.4% over the prior year.
•Quarterly EPS was $0.26 per diluted share, an 18.2% increase over the prior year EPS of $0.22. Adjusted EPS* was $0.28 per diluted share, an increase of 27.3% over the prior year.
•Adjusted EBITDA* was $209 million for the quarter, an increase of 22.7%. Adjusted EBITDA margin* was 24.8% of revenue, an increase of 150 basis points over the third quarter of 2022.
•Operating cash flow was $127 million for the quarter and was $376 million for the first nine months of the year. The slower growth in operating cash flow in Q3 was due to the timing of payments related to certain payables. The Company invested $21 million in acquisitions, $7 million in capital expenditures, paid dividends totaling $64 million, and repurchased $300 million of its stock during the quarter. Year to date, the Company has invested $349 million in acquisitions, $21 million in capital expenditures, paid dividends totaling $192 million and repurchased $315 million of its stock.

*Amounts are non-GAAP financial measures. See the schedules below for a discussion of non-GAAP financial metrics including a reconciliation of the most closely correlated GAAP measure.
Management Commentary
"The team delivered a strong third quarter with record revenue and an improving margin profile," said Jerry Gahlhoff, Jr., President and CEO. "Organic growth remains healthy while we continue to be active on the acquisition front. The demand for our services is solid and our pipeline for acquisitions is robust. As we look to close out 2023, we are well positioned for continued growth, both organically, as well as through acquisitions, and remain focused on continuous improvement initiatives to enhance profitability across our business” Mr. Gahlhoff added.

"It was encouraging to see the strong growth in revenue and profitability in the quarter, as the team delivered double-digit revenue growth and 150 basis points of improvement in adjusted EBITDA margins" said Kenneth Krause, Executive Vice President, CFO and Treasurer. Additionally, we continued to execute a very balanced capital allocation program with a focus on investing for growth while returning cash to shareholders through a growing dividend and a share repurchase program,” Mr. Krause concluded.
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Three and Nine Months Ended Financial Highlights

Three Months Ended September 30, Nine Months Ended September 30,
Variance Variance
(in thousands, except per share data) 2023 2022 $ % 2023 2022 $ %
GAAP Metrics
Revenues $ 840,427  $ 729,704  $ 110,723  15.2  % $ 2,319,192  $ 2,034,433  $ 284,759  14.0  %
Gross profit (1)
$ 451,894  $ 381,546  $ 70,348  18.4  % $ 1,219,626  $ 1,054,117  $ 165,509  15.7  %
Gross profit margin (1)
53.8  % 52.3  % 150 bps 52.6  % 51.8  % 80 bps
Operating income $ 177,124  $ 145,404  $ 31,720  21.8  % $ 444,153  $ 373,471  $ 70,682  18.9  %
Operating income margin 21.1  % 19.9  % 120 bps 19.2  % 18.4  % 80 bps
Net income $ 127,777  $ 108,943  $ 18,834  17.3  % $ 326,154  $ 284,329  $ 41,825  14.7  %
EPS $ 0.26  $ 0.22  $ 0.04  18.2  % $ 0.66  $ 0.58  $ 0.08  13.8  %
Operating cash flow $ 127,355  $ 127,285  70  0.1  % $ 375,541  $ 342,537  $ 33,004  9.6  %
Non-GAAP Metrics
Adjusted operating income (2)
$ 187,582  $ 145,404  $ 42,178  29.0  % $ 459,872  $ 373,471  $ 86,401  23.1  %
Adjusted operating margin (2)
22.3  % 19.9  % 240 bps 19.8  % 18.4  % 140 bps
Adjusted net income (2)
$ 135,558  $ 108,943  $ 26,615  24.4  % $ 337,849  $ 284,329  $ 53,520  18.8  %
Adjusted EPS (2)
$ 0.28  $ 0.22  $ 0.06  27.3  % $ 0.69  $ 0.58  $ 0.11  19.0  %
Adjusted EBITDA (2)
$ 208,531  $ 169,945  $ 38,586  22.7  % $ 531,281  $ 446,934  $ 84,347  18.9  %
Adjusted EBITDA margin (2)
24.8  % 23.3  % 150 bps 22.9  % 22.0  % 90 bps
Free cash flow (2)
$ 120,487  $ 119,399  $ 1,088  0.9  % $ 354,262  $ 319,616  $ 34,646  10.8  %
(1) Exclusive of depreciation and amortization
(2) Amounts are non-GAAP financial measures. See the appendix to this release for a discussion of non-GAAP financial metrics including a reconciliation of the most closely correlated GAAP measure.
About Rollins, Inc.:
Rollins, Inc. (ROL) is a premier global consumer and commercial services company. Through its family of leading brands, the Company and its franchises provide essential pest control services and protection against termite damage, rodents, and insects to more than 2.8 million customers in North America, South America, Europe, Asia, Africa, and Australia, with more than 19,000 employees from more than 800 locations. Rollins is parent to Orkin, HomeTeam Pest Defense, Clark Pest Control, Northwest Exterminating, McCall Service, Trutech, Critter Control, Western Pest Services, Waltham Services, OPC Pest Services, The Industrial Fumigant Company, PermaTreat, Crane Pest Control, Missquito, Fox Pest Control, Orkin Canada, Orkin Australia, Safeguard (UK), Aardwolf Pestkare (Singapore), and more. You can learn more about Rollins and its subsidiaries by visiting www.rollins.com.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Statements made in this press release and on our earnings call, may contain forward-looking statements that involve risks and uncertainties concerning the Company’s business and financial results. We have based these forward-looking statements largely on our current opinions, expectations, beliefs, plans, objectives, assumptions and projections about future events and financial trends affecting the operating results and financial condition of our business. Such forward-looking statements include, but are not limited to, statements regarding the Company's belief that the demand environment is healthy, the Company’s pipeline for acquisitions remains robust to start the fourth quarter, the Company remains well positioned to continue to drive growth through acquisition, the Company is focused on driving growth while evaluating several initiatives aimed at improving productivity, the Company is well positioned to continue to deliver strong results, the Company is focused on executing additional programs that it believes will improve the efficiency of its business model, and the Company’s improvement in gross margin and current demand environment provides a sense of optimism.
Our actual results could differ materially from those indicated by the forward-looking statements because of various risks, timing and uncertainties including, without limitation, the failure to maintain and enhance our brands and develop a positive client reputation; our ability to protect our intellectual property and other proprietary rights that are material to our business and our brand recognition; actions taken by our franchisees, subcontractors or vendors that may harm our business; general economic conditions; the effects of a pandemic, such as the COVID-19 pandemic, or other major public health concern on the Company's business, results of operations, accounting assumptions and estimates and financial condition; adverse economic conditions, including, without limitation, market downturns, inflation and restrictions in customer discretionary expenditures, increases in interest rates or other disruptions in credit or financial markets, increases in fuel prices, raw material costs or other operating costs; potential increases in labor costs; labor shortages and/or our inability to attract and retain skilled workers; competitive factors and pricing practices; changes in industry practices or technologies; the degree of success of our termite process reforms and pest control selling and treatment methods; our ability to identify, complete and
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successfully integrate potential acquisitions; unsuccessful expansion into international markets; climate change and unfavorable weather conditions; a breach of data security resulting in the unauthorized access of personal, financial, proprietary, confidential or other personal data or information about our customers, employees, third parties, or of our proprietary confidential information; damage to our brands or reputation; new or proposed regulations regarding climate change; any noncompliance with, changes to, or increased enforcement of various government laws and regulations, including environmental regulations; possibility of an adverse ruling against us in pending litigation, regulatory action or investigation; the adequacy of our insurance coverage to cover all significant risk exposures; the effectiveness of our risk management and safety program; general market risk; management's substantial ownership interest and its impact on public stockholders and the availability of the Company's common stock to the investing public; and the existence of certain anti-takeover provisions in our governance documents, which could make a tender offer, change in control or takeover attempt that is opposed by the Company's Board of Directors more difficult or expensive. All of the foregoing risks and uncertainties are beyond our ability to control, and in many cases, we cannot predict the risks and uncertainties that could cause our actual results to differ materially from those indicated by the forward-looking statements. The Company does not undertake to update its forward-looking statements.
Conference Call
Rollins will host a conference call on Thursday, October 26, 2023 at 8:30 a.m. Eastern Time to discuss the third quarter 2023 results. The conference call will also broadcast live over the internet via a link provided on the Rollins, Inc. website at www.rollins.com. Interested parties can also dial into the call at 1-877-869-3839 (domestic) or +1-201-689-8265 (internationally) with conference ID of 13741391. For interested individuals unable to join the call, a replay will be available on the website for 180 days.

3


ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands)
(unaudited)
September 30,
2023
December 31,
2022
ASSETS
Cash and cash equivalents $ 142,247  $ 95,346 
Trade receivables, net 198,540  155,759 
Financed receivables, short-term, net 38,104  33,618 
Materials and supplies 33,223  29,745 
Other current assets 64,676  34,151 
Total current assets 476,790  348,619 
Operating lease right-of-use assets 301,774  277,355 
Financed receivables, long-term, net 73,925  63,523 
Other assets 1,787,468  1,432,531 
Total assets $ 2,639,957  $ 2,122,028 
LIABILITIES
Accounts payable 44,421  42,796 
Accrued insurance – current 46,631  39,534 
Accrued compensation and related liabilities 99,228  99,251 
Unearned revenues 183,389  158,092 
Operating lease liabilities – current 88,668  84,543 
Current portion of long-term debt —  15,000 
Other current liabilities 119,359  54,568 
Total current liabilities 581,696  493,784 
Accrued insurance, less current portion 43,912  38,350 
Operating lease liabilities, less current portion 217,861  196,888 
Long-term debt 596,642  39,898 
Other long-term accrued liabilities 97,003  85,911 
Total liabilities 1,537,114  854,831 
STOCKHOLDERS’ EQUITY
Common stock 484,038  492,448 
Retained earnings and other equity 618,805  774,749 
Total stockholders’ equity 1,102,843  1,267,197 
Total liabilities and stockholders’ equity $ 2,639,957  $ 2,122,028 

4


ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
REVENUES
Customer services $ 840,427  $ 729,704  $ 2,319,192  $ 2,034,433 
COSTS AND EXPENSES
Cost of services provided (exclusive of depreciation and amortization below) 388,533  348,158  1,099,566  980,316 
Sales, general and administrative 244,906  213,581  696,668  612,353 
Restructuring costs 5,196  —  5,196  — 
Depreciation and amortization 24,668  22,561  73,609  68,293 
Total operating expenses 663,303  584,300  1,875,039  1,660,962 
OPERATING INCOME 177,124  145,404  444,153  373,471 
Interest expense, net 5,547  846  10,797  2,294 
Other (income), net (493) (1,980) (6,226) (5,170)
CONSOLIDATED INCOME BEFORE INCOME TAXES 172,070  146,538  439,582  376,347 
PROVISION FOR INCOME TAXES 44,293  37,595  113,428  92,018 
NET INCOME $ 127,777  $ 108,943  $ 326,154  $ 284,329 
NET INCOME PER SHARE - BASIC AND DILUTED $ 0.26  $ 0.22  $ 0.66  $ 0.58 
Weighted average shares outstanding - basic 490,775 492,316 491,980 492,285
Weighted average shares outstanding - diluted 490,965 492,430 492,158 492,398
Certain consolidated financial statement amounts relative to prior periods have been revised, the effects of which are immaterial. See the appendix to this release for a discussion of this revision.
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ROLLINS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED CASH FLOW INFORMATION
(in thousands)
(unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
OPERATING ACTIVITIES
Net income $ 127,777  $ 108,943  $ 326,154  $ 284,329 
Depreciation and amortization 24,668  22,561  73,609  68,293 
Change in working capital and other operating activities (25,090) (3,784) (24,222) (10,085)
Net cash provided by operating activities 127,355  127,720  375,541  342,537 
INVESTING ACTIVITIES
Acquisitions, net of cash acquired (21,420) (60,838) (349,312) (110,418)
Capital expenditures (6,868) (7,040) (21,279) (22,921)
Other investing activities, net (2,424) 6,532  8,257  9,961 
Net cash (used in) investing activities (30,712) (61,346) (362,334) (123,378)
FINANCING ACTIVITIES
Net borrowings (repayments) 259,000  (110,000) 544,000  (30,000)
Payment of dividends (63,809) (49,201) (191,805) (147,635)
Other financing activities, net (301,643) (6,444) (318,452) (18,650)
Net cash (used in) provided by financing activities (106,452) (165,645) 33,743  (196,285)
Effect of exchange rate changes on cash and cash equivalents (2,691) 183  (49) (6,299)
Net (decrease) increase in cash and cash equivalents $ (12,500) $ (99,088) $ 46,901  $ 16,575 
Certain consolidated financial statement amounts relative to prior periods have been revised, the effects of which are immaterial. See the appendix to this release for a discussion of this revision.
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APPENDIX
Reconciliation of GAAP and non-GAAP Financial Measures
The Company has used the non-GAAP financial measures of organic revenues, organic revenues by type, adjusted operating income, adjusted operating margin, adjusted net income, adjusted earnings per share (“EPS”), earnings before interest, taxes, depreciation and amortization (“EBITDA”), EBITDA margin, Adjusted EBITDA, adjusted EBITDA margin, incremental EBITDA margin, adjusted incremental EBITDA margin, and free cash flow in this earnings release. Organic revenue is calculated as revenue less acquisition revenue. Acquisition revenue is based on the trailing 12-month revenue of our acquired entities. Adjusted operating income and adjusted operating income margin are calculated by adding back to the GAAP measures those expenses resulting from the amortization of certain intangible assets and adjustments to the fair value of contingent consideration resulting from the acquisition of Fox Pest Control and restructuring costs related to restructuring and workforce reduction plans. Adjusted EBITDA and adjusted EBITDA margin are calculated by adding back to the GAAP measures those expenses resulting from the adjustments to the fair value of contingent consideration resulting from the acquisition of Fox Pest Control and restructuring costs related to restructuring and workforce reduction plans. Adjusted net income and adjusted EPS are calculated by adding back those acquisition-related expenses and restructuring costs to the GAAP measures and by further subtracting the tax impact of those expenses. Incremental margin is calculated as the change in EBITDA divided by the change in revenue. Adjusted incremental margin is calculated as the change in adjusted EBITDA divided by the change in revenue. Free cash flow is calculated by subtracting capital expenditures from cash provided by operating activities. These measures should not be considered in isolation or as a substitute for revenues, net income, earnings per share or other performance measures prepared in accordance with GAAP.
Management uses adjusted operating income, adjusted operating income margin, adjusted net income, adjusted EPS, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, incremental EBITDA margin, and adjusted incremental EBITDA margin as measures of operating performance because these measures allow the Company to compare performance consistently over various periods. Management also uses organic revenues, and organic revenues by type to compare revenues over various periods excluding the impact of acquisitions. Management uses free cash flow to demonstrate the Company’s ability to maintain its asset base and generate future cash flows from operations. Management believes all of these non-GAAP financial measures are useful to provide investors with information about current trends in, and period-over-period comparisons of, the Company's results of operations. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP.
A non-GAAP financial measure is a numerical measure of financial performance, financial position, or cash flows that either 1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows, or 2) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented.
Set forth below is a reconciliation of the non-GAAP financial measures used in this earnings release with their most comparable GAAP measures.
(unaudited, in thousands, except per share data and margins)
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Three Months Ended September 30, Nine Months Ended September 30,
Variance Variance
2023
2022 (5)
$ % 2023
2022 (5)
$ %
Reconciliation of Operating Income to Adjusted Operating Income and Adjusted Operating Income Margin
Operating income $ 177,124  $ 145,404  $ 444,153  $ 373,471 
Fox acquisition-related expenses (1)
5,262  —  10,523  — 
Restructuring costs (2)
5,196  —  5,196  — 
Adjusted operating income $ 187,582  $ 145,404  42,178  29.0  $ 459,872  $ 373,471  86,401  23.1 
Revenues $ 840,427  $ 729,704  $ 2,319,192  $ 2,034,433 
Operating income margin 21.1  % 19.9  % 19.2  % 18.4  %
Adjusted operating income margin 22.3  % 19.9  % 19.8  % 18.4  %
Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS
Net income $ 127,777  $ 108,943  $ 326,154  $ 284,329 
Fox acquisition-related expenses (1)
5,262  —  10,523  — 
Restructuring costs (2)
5,196  —  5,196  — 
Tax impact of adjustments (3)
(2,677) —  (4,024) — 
Adjusted net income $ 135,558  $ 108,943  26,615  24.4  $ 337,849  $ 284,329  53,520  18.8 
EPS - basic and diluted $ 0.26  $ 0.22  $ 0.66  $ 0.58 
Fox acquisition-related expenses (1)
0.01  $ —  0.02  $ — 
Restructuring costs (2)
0.01  $ —  0.01  $ — 
Tax impact of adjustments (3)
(0.01) $ —  (0.01) $ — 
Adjusted EPS - basic and diluted (4)
$ 0.28  $ 0.22  0.06  27.3  $ 0.69  $ 0.58  0.11  19.0 
Weighted average shares outstanding - basic 490,775  492,316  491,980  492,285 
Weighted average shares outstanding - diluted 490,965  492,430  492,158  492,398 
Reconciliation of Net Income to EBITDA, Adjusted EBITDA, EBITDA Margin, Incremental EBITDA Margin, Adjusted EBITDA Margin, and Adjusted Incremental EBITDA Margin
Net income $ 127,777  $ 108,943  $ 326,154  $ 284,329 
Depreciation and amortization 24,668  22,561  73,609  68,293 
Interest expense, net 5,547  846  10,797  2,294 
Provision for income taxes 44,293  37,595  113,428  92,018 
EBITDA $ 202,285  $ 169,945  32,340  19.0  $ 523,988  $ 446,934  77,054  17.2 
Fox acquisition-related expenses (1)
1,050  —  2,097  — 
Restructuring costs (2)
5,196  —  5,196  — 
Adjusted EBITDA $ 208,531  $ 169,945  38,586  22.7  $ 531,281  $ 446,934  84,347  18.9 
Revenues $ 840,427  $ 729,704  110,723  $ 2,319,192  $ 2,034,433  284,759 
EBITDA margin 24.1  % 23.3  % 22.6  % 22.0  %
Incremental EBITDA margin 29.2  % 27.1  %
Adjusted EBITDA margin 24.8  % 23.3  % 22.9  % 22.0  %
Adjusted incremental EBITDA margin 34.8  % 29.6  %
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Net cash provided by operating activities $ 127,355  $ 127,285  $ 375,541  $ 342,537 
Capital expenditures (6,868) (7,886) (21,279) (22,921)
Free cash flow $ 120,487  $ 119,399  1,088  0.9  $ 354,262  $ 319,616  34,646  10.8 
(1) Consists of expenses resulting from the amortization of certain intangible assets and adjustments to the fair value of contingent consideration resulting from the acquisition of Fox Pest Control during the quarter. While we exclude such expenses in this non-GAAP measure, the revenue from the acquired company is reflected in this non-GAAP measure and the acquired assets contribute to revenue generation.
(2) Restructuring costs consist of costs primarily related to severance and benefits paid to employees pursuant to restructuring and workforce reduction plans.
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(3) The tax effect of the adjustments is calculated using the applicable statutory tax rates for the respective periods.
(4) In some cases, the sum of the individual EPS amounts may not equal total non-GAAP EPS calculations due to rounding.
(5) Certain condensed consolidated financial statement amounts relative to the prior period have been revised as detailed in our annual report on Form 10-K for the year ended December 31, 2022. The impact of this revision on the Company's previously reporting condensed consolidated financial statements for the three and nine months ended September 30, 2022 includes a decrease to depreciation and amortization expense of $1.7 million and $5.2 million, respectively, and an increase in the provision for income tax expense of $0.4 million and $1.2 million, respectively. This revision affects these specific line items and subtotals within the consolidated statements of income and cash flows.
Three Months Ended September 30, Nine Months Ended September 30,
Variance Variance
2023 2022 $ % 2023 2022 $ %
Reconciliation of Revenues to Organic Revenues
Revenues $ 840,427  $ 729,704  110,723  15.2  $ 2,319,192  $ 2,034,433  284,759  14.0 
Revenues from acquisitions (49,971) —  (49,971) —  (114,273) —  (114,273) — 
Organic revenues $ 790,456  $ 729,704  60,752  8.4  $ 2,204,919  $ 2,034,433  170,486  8.4 
Reconciliation of Residential Revenues to Organic Residential Revenues
Residential revenues $ 404,305  $ 337,878  66,427  19.7  $ 1,073,575  $ 922,448  151,127  16.4 
Residential revenues from acquisitions (42,974) —  (42,974) —  (91,067) —  (91,067) — 
Residential organic revenues $ 361,331  $ 337,878  23,453  7.0  $ 982,508  $ 922,448  60,060  6.5 
Reconciliation of Commercial Revenues to Organic Commercial Revenues
Commercial revenues $ 272,207  $ 243,478  28,729  11.8  $ 762,573  $ 683,748  78,825  11.5 
Commercial revenues from acquisitions (3,456) —  (3,456) —  (10,688) —  (10,688) — 
Commercial organic revenues $ 268,751  $ 243,478  25,273  10.4  $ 751,885  $ 683,748  68,137  10.1 
Reconciliation of Termite and Ancillary Revenues to Organic Termite and Ancillary Revenues
Termite and ancillary revenues $ 155,099  $ 139,668  15,431  11.0  $ 458,527  $ 406,155  52,372  12.9 
Termite and ancillary revenues from acquisitions (3,541) —  (3,541) —  (12,518) —  (12,518) — 
Termite and ancillary organic revenues $ 151,558  $ 139,668  11,890  8.5  $ 446,009  $ 406,155  39,854  9.8 
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Three Months Ended September 30, Nine Months Ended September 30,
Variance Variance
2022 2021 $ % 2022 2021 $ %
Reconciliation of Revenues to Organic Revenues
Revenues $ 729,704  $ 650,199  79,505  12.2  $ 2,034,433  $ 1,823,957  210,476  11.5 
Revenues from acquisitions (23,709) —  (23,709) —  (61,748) —  (61,748) — 
Organic revenues $ 705,995  $ 650,199  55,796  8.6  $ 1,972,685  $ 1,823,957  148,728  8.2 
Reconciliation of Residential Revenues to Organic Residential Revenues
Residential revenues $ 337,878  $ 307,747  30,131  9.8  $ 922,448  $ 835,871  86,577  10.4 
Residential revenues from acquisitions (13,909) —  (13,909) —  (35,818) —  (35,818) — 
Residential organic revenues $ 323,969  $ 307,747  16,222  5.3  $ 886,630  $ 835,871  50,759  6.1 
Reconciliation of Commercial Revenues to Organic Commercial Revenues
Commercial revenues $ 243,478  $ 218,648  24,830  11.4  $ 683,748  $ 618,183  65,565  10.6 
Commercial revenues from acquisitions (3,693) —  (3,693) —  (9,857) —  (9,857) — 
Commercial organic revenues $ 239,785  $ 218,648  21,137  9.7  $ 673,891  $ 618,183  55,708  9.0 
Reconciliation of Termite and Ancillary Revenues to Organic Termite and Ancillary Revenues
Termite and ancillary revenues $ 139,668  $ 117,423  22,245  18.9  $ 406,155  $ 350,791  55,364  15.8 
Termite and ancillary revenues from acquisitions (6,107) —  (6,107) —  (16,073) —  (16,073) — 
Termite and ancillary organic revenues $ 133,561  $ 117,423  16,138  13.7  $ 390,082  $ 350,791  39,291  11.2 
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