{
  "docId": "019dd923-622c-750b-8b99-6874fa144d61",
  "docSlug": "addbfd9bdf8e",
  "documentTitle": "Rollins Inc. (ROL)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-10-04 00:00:00",
  "orientation": "landscape",
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  "pageNumber": 35,
  "pageCount": 89,
  "prevPage": 34,
  "nextPage": 36,
  "slideType": "problem_statement",
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  "density": "dense",
  "nDataPoints": 35,
  "notes": "The slide uses a combination of financial data and qualitative evidence (Glassdoor reviews) to support the thesis of underinvestment.",
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      "kind": "callout",
      "text": "The Company's capex to depreciation ratio is well below 1x which indicates underinvestment in the business.",
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      "kind": "metric",
      "text": "Capex / Depreciation: 0.80x",
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      "kind": "paragraph",
      "text": "While the bulls like Rollins' low capital expenditure (capex) business model, we believe it is exceedingly low and may introduce unique business risks. The Company's capex to depreciation ratio is well below 1x which indicates underinvestment in the business. The largest component of PP&E is computer equipment and systems and internal use software. Net internal use software has been declining and the Company recently experienced a cybersecurity incident. At least two former Senior Accounting Managers on Glassdoor recently commented that Rollins is behind time regarding its software and working systems were old.(1)",
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      "kind": "quote",
      "text": "At least two former Senior Accounting Managers on Glassdoor recently commented that Rollins is behind time regarding its software and working systems were old.",
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      "kind": "source-note",
      "text": "Source: Rollins 10-K and 10-Q filings\n1) Glassdoor Reviews 1 and 2",
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      "kind": "table",
      "text": "Rollins Capital Spending And Depreciation table",
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      "kind": "title",
      "text": "We Believe Rollins Is Underinvesting In The Business",
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      "evidence": "Using capex/depreciation ratio to diagnose underinvestment",
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      "name": "Cost Of Inaction",
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      "evidence": "The document emphasizes the potential risks and consequences of not selling Rollins stock.",
      "position": 1,
      "objective": "To highlight the potential costs of inaction for investors who fail to sell Rollins stock.",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
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      "description": "Quantify what happens if the audience does nothing"
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