Q4 2020 Rollins Inc Earnings Call
Greetings and welcome to the Rollins, Inc. Fourth quarter 2020 earnings Conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star Zero and your telephone keypad. Please note. This conference is being recorded and I'll now.
Turn the conference over to your host Joe Calabrese, Ladies and kids.
Okay.
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Although why with me today, and presenting are Gary Rollins, Rollins, Chairman and Chief Executive Officer.
John Wilson, Rollins, Vice Chairman Joerg, Yellow Junior President and Chief operating Officer, Eddie Northen, Senior Vice President and Chief Financial Officer, and Treasurer, Joe We've been moving Vice President Finance and Investor Relations.
Management will make some opening remarks and well then open the wife of your questions Gary would you like to begin.
Yes, Joe Thank you and good morning, we appreciate all of the joining us for our fourth quarter and year end 2020 conference call.
Julie will read our forward looking statement and disclaimer and then we'll begin.
Our earnings release discusses our business outlook and contains certain forward looking statements. These particular forward looking statements and all other statements that have been made on this call. Excluding historical facts are subject to a number of risks and uncertainties and actual risks may differ materially from any state.
And we make today.
Please refer to today's press release, and our SEC filings, including the risk factors section of our form 10-K for the year ended December 31st 2019 for more information and the risk factors that could cause actual results to differ.
Thank you Julie while we faced unprecedented and the obstacles. This past year I am pleased to report.
And that Rollins has performance and 2020 is marked by continued growth and solid financials. Rollins of results are a testament to the strength of our business are exceptional and focus on customer service and the commitment to program execution by our people.
And we're especially proud of our employees' dedication and adaptability through this difficult year, they've continued to provide vital services to our customers.
Very challenging situations on.
The enabling the continuation of our long term success.
Our people are truly our most important asset as they protect our customers' property.
Health and peace of mind.
We're extremely appreciative of their efforts during this unprecedented time.
At Rollins, we also have an unwavering commitment to keeping our employees safe and this has never been more important and this past year, where we face the threat of the COVID-19 virus.
New stringent safety protocols and were promptly created and even today remain a priority.
While we continue to have employee health risk from the virus.
As a result of working safely through the pandemic. We've also benefited from the trust we have built with our customers.
This was confirmed by the strong performance that we had and our residential services segment.
Looking ahead, we remain confident and our business and the importance of the service we provide.
Before I wrap up on behalf of the entire team at Rollins and I'd like to acknowledge and thank.
Our two retiring directors, Jimmy Williams, who joined the board of $19 78.
And Bill does mute, who joined the board and 1984.
Their insightful guidance and service to the company has been and valuable and we wish them well.
And the retirement, let me now turn the call over to John who will provide an overview of the quarter and the year John.
Thank you Gary turning to our performance we are pleased with our fourth quarter results, which capped off a great year in 'twenty and 'twenty.
Revenue for the quarter grew 6% to $536 3 million compared to 506 million for the same quarter in 2019 day.
Net income rose to $562 6 million or 13 cents per diluted share compared to $15 8 million or 10 cents per diluted share for the fourth quarter last year.
Revenue for the full year totaled 2.161 billion and increase of seven 2% compared to two point of one 5 billion for 2019.
Net income for the full year increased to $260 8 million or 53 cents per diluted share compared to $203 3 million or <unk> 41 per diluted share for the same period last year.
And they will review the GAAP and non-GAAP results. Shortly is there are two adjustments impacting our financials.
Overall, our team members and the various businesses continue to perform well, we experienced strong growth and residential pest control during the fourth quarter, increasing 11%, while termite and ancillary services grew eight 7%.
Year over year of commercial revenue was down as commercial pest control was negatively impacted by the COVID-19 virus due to the varying levels of government driven shutdowns. However.
We have continued to narrow the revenue shortfall GAAP each month since April.
For the fourth quarter commercial growth all of the 0.6% below last year.
We're pleased with the steady progress we have achieved under the circumstances.
I am very proud of our team and the commitment they show each day in and take care of our customers.
Their dedication and determination and we're very evident this year as they.
And many thousands of customers during a challenging time.
We believe our fourth quarter, and 'twenty and 'twenty full year results reflect both the resilience of our company and our people.
I would now like to take a moment to talk about Rollins, ESG or environmental social and governance.
Commitment, we hold ourselves accountable to a high standard of sustainability, social responsibility and good corporate governance.
ESG is not just and an important part of our business because it's become part of our culture.
We also have launched the new diversity equity and inclusion or D I initiative and.
Internally focused on advancing our culture of inclusion where all employees feel respected and traded fairly with the negligible opportunity to excel.
This effort of sponsored by Freeman Elliot, our Orca and U S President.
Freeman is working in close partnership with the newly formed Advisory Council made up of employees from across all brands to drive the improvements.
The council is actively reviewing all policies conducting campaign and awareness, creating listening forums and providing the training with much more to come.
We're committed to this vision and the journey, we will all take together.
I'm also pleased to note. The we have further strengthened our board of directors, adding to and already experienced and strong board with the additions of Susan and Bell.
Gunning and Jerry Nix.
As background, both Susan Bill and Patrick Dunne and have recently retired from distinguished careers and public accounting 36, and 39 years respectively.
Both are qualified as financial experts for U S Securities and Exchange Commission public companies.
Jerry Nix comes to our board is the former Vice Chairman and Chief Financial Officer of genuine parts company.
They're all seasoned executives and accomplished leaders and their diverse experience will be invaluable to help shape Rollins future.
Now, let me turn the call over to Jerry who will provide more details on our business.
Yeah.
Thanks, John and good morning, everybody.
Although I've been with Rollins companies since 1999 and have had the opportunity over the years to interact with many of the investors on today's call.
This is my first time speaking with you as Chief operating officer.
And do so with the strong sense of responsibility to our company our employees our customers and our shareholders.
I'm excited to be here.
I would also like to thank all of our colleagues for the smooth transition over the last few months and look forward to enhancing shareholder value through the execution of our business strategy.
During the fourth quarter, we continued to expand the company's presence not only in the U S, but yet globally as well.
We added 10 strategic acquisitions within the United States, Canada, Australia, the United Kingdom and Singapore.
We are very pleased to welcome these companies and their teams to the Rollins family of brands and as we enter 2021, we expect the strategic acquisitions will continue to be an important component and our initiatives to further grow our business.
This past week, we completed our first virtual companywide leadership meeting with all of our top leaders across all of our global business units.
While we miss being in the same room together, we still found an opportunity to gather and zoom for productive discussions on the items that will be critical for our success in 'twenty and 'twenty one.
As an example, one focus area, we discussed that has been significant to our growth as mosquito service.
This continues to be and excellent add on service for many customers and an increase greater than 30% over the prior year.
We know this will continue to be of great opportunity in 2021.
As we have discussed in the past mosquito borne diseases continue to be and increasing threat around the world and his family self quarantine many of you're spending more time and their yards recognizing the need for mosquito control.
The overall emphasis of our leadership meeting was about executing our plans in 'twenty and 'twenty, one and I have great confidence and our leadership team to make this happen.
Now, let me turn the call over to Eddie to discuss our financials.
Thank you Jerry.
The obstacles that impacted Q2, and Q3 continued to decrease throughout the quarter and our operations and non operations groups continue to make tremendous adjustments to the new life that we are all leading.
We're utilizing mostly remote workforces, which has forced us to continue to evaluate processes and become more efficient.
And these changes have made us a better company.
We're also thankful that we've invested and technology the way that we have over the last four to five years.
Dealing with the increased demand on the residential side of our business and the disruption of routes and the commercial side of our business would've been and extreme challenge to handle without these tools in place.
For the quarter, our residential pest control and termite service lines showed growth and keys to the quarter included a <unk>.
And fourth year, and a row of metric improvement through our routing and scheduling initiative.
Safety improvement the translated to expense reductions.
And successful continued cost containment implemented to drive margin improvements year over year.
As John referenced I will be reporting both GAAP financials for the quarter and GAAP and non-GAAP financials for the full year that were impacted by accelerated vesting of shares and the third quarter of this year and the impact of the pension plan moving off of our Rollins books and 2019.
Looking at the numbers the fourth quarter revenues of $536 3 million with an increase of 6% over the prior year's fourth quarter revenue of $506 million.
Our income before income taxes was $86 9 million or 27% above 2019.
Net income was $62 6 million up 23, 4% compared to 2019.
Our EPS of 13 cents per diluted share.
Looking at the full year revenue of 2.161 billion was an increase of seven 2% over the prior year's revenue of two point of $1 5 billion.
Our GAAP income before taxes was $354 7 million or 35, 8% above 2019.
Our net income was $260 8 million up 28, 3% compared to 2019.
Our GAAP earnings per share were <unk> 53 per diluted share.
For the full year looking at our non-GAAP financials, taking into account the accelerated stock vesting that occurred in the third quarter of this year and the pension plan moving off of our books and 2019 income before taxes was $361 4 million and was up 16, 2% and net income was 200.
And $67 $5 million this year compared to $229 $9 million and 2019 of 16, 3% increase and our non-GAAP EPS were <unk> 54 compared to <unk> 47.
Which is the 14, 9% improvement.
Jerry mentioned, our 2021 leadership meeting.
And while our gathering online instead of in person and look different than the previous years, our focus on messaging and alignment for the year to come continue to be the same.
One of the sessions over the three days was inside of items to make you successful and 2021.
During the segment, we discussed several different topics that will impact our journey of sustainability through environmental social and governance or ESG.
These topics.
All focused on actionable items that each and every operation can impact as we move forward and the new year.
And that we discussed our routing and scheduling and how it saves mile improves margin and helps to reduce our carbon footprint.
Next we discussed our launch of the diversity equity and inclusion of <unk> initiatives, the John mentioned earlier.
Frame and did an excellent job sharing hell of a more diverse group will help lead our decision, making and the future.
And and Gerry spent time and discuss our safety journey and how this positively impacts our workforce and our financial performance.
The advantage the hosting these sessions online and yes, I am looking for silver linings here is that we get a chance to read comments and real time as the speaker is leading the session.
There was a very positive energy around all of these topics and others that will support our sustainability for years to come.
Let's take a look through the Rollins revenue by service line for the fourth quarter.
Our total revenue increase of 6% included one 5% from acquisitions and the remaining four 5% was from pricing and new customer growth.
In total residential pest control, which made up 45% of our revenue was up 11%.
Commercial excluding fumigation commercial pest.
And as control, which made up 34% of our revenue was down five tenths of a percent and termite and ancillary services, which made up approximately 19% of our revenue was up eight 7%.
One item of note is that our wildlife service grew at the fastest rate since Q1 of 2018.
Again total revenue less acquisition was up four 5% and from that residential was up nine 3% from.
<unk> ex fumigation decreased two 4% and termite and ancillary grew by eight 4%.
Our residential business continues to perform well and our commercial pest control business has seen steady improvements each month since April.
While we continue to manage our cost of appropriately it's difficult to know how the revenue levels will look as we move through the pandemic with restrictions continuing to change throughout the world.
And total gross margin increased to 53% from 49, 7% from the prior year's quarter.
The quarter was positively impacted by lower service salary expense as well as the lower fleet expense through continued improvements from our routing and scheduling efficiencies.
These gains were offset by higher materials and supplies costs related to our personal protective equipment inventory.
Depreciation and amortization expenses for the quarter decreased 203000 to $22 4 million a decrease of nine tenths of a percent dip.
Depreciation decreased 57000, and amortization of intangible assets decreased 148000 as intangibles from previous acquisitions, such as home team and western became fully amortized.
Sales general and administrative expenses for the fourth quarter increased $4 3 million or two 8% to of $159 1 million or 29, 7% of revenues. This was down two 9% compared to 2019, and the quarter produced savings and salaries and benefits and.
Our bad debt through better collection efforts.
As for our cash position for the period ended December 31, 2020, we spent $147 4 million on acquisitions compared to $436 million. The same period last year, which included our initial Clark pest control acquisition.
We paid $160 5 million on dividends and had $23 2 million of capital expenditures, which was slightly lower compared to 2019.
We ended the period with $98 5 million and cash of which $71 3 million is held by our foreign subsidiaries the.
These numbers all include a reduction in debt of $88 5 million for the year.
As you May remember, we kicked off the reporting of our ESG activities at the beginning of the year and 2020 with our first ever 2019 sustainability report.
In March of 'twenty and 'twenty, one we will produce our second edition, which will include more updates and goals and the areas that will impact our company over the next five years.
Yes.
Yesterday, the board of directors approved the regular cash dividend of <unk> <unk> per share, which was the 50% increase and the pre split numbers from last year that will be paid on March 10, 2021 to stockholders of record at the close of business February 10 2021.
Gary I'll turn the call back over to you.
Thank you Eddie and we're happy to take your questions at this time.
Yes.
And at this time and will be conducting the question and answer session. If you'd like to ask the question. Please press star one on your telephone keypad. The confirmation tone will indicate your line is and the question in queue.
You May press star two if you'd like to remove your question from the queue from participants using speaker equipment and may be necessary to pick up of your handset before pressing the star and keys.
All participants asking the question are only limited to one question and one follow up question. If you have any more questions and you may place yourself back into the queue.
And we'll be pleased when we pull for questions.
Our first question is from Tim Mulrooney with William Blair. Please proceed with your question.
Good morning, everybody.
Moving on another nice quarter.
Thank you.
So okay only two questions. So here, we go I'm going to stick on the pricing and gross margin. So so first of all on pricing.
Eddie can you.
I need just how that trended through 2020, I know a lot of folks took a pause on pricing during the pandemic I'm curious how pricing looked in 2020 and and what you guys are planning or thinking about for the next past selling season here in 2021.
Yeah, Tim we decided to for most of our brands to take that same pause.
As you know typically we will roll that.
We will roll of that price increase out around mid year, we decided based on the current economic conditions that it was not the best time to move that forward. So most of our brands did in fact take that pause.
For 2021, we do have plans to move forward with the price increase.
And we would be prepared as we move forward over the next quarter or two to be able to to be able to provide more details having to do with that but we've gone through our tech. We've continued to go through the testing on the marketing side and.
And we're prepared for that for 2021.
Okay. Okay. Thank you that's that's broadly what we're hearing from others as well so that makes sense.
And I'm thinking about gross margin next year and we saw some nice gross margin expansion this year, but and I am thinking about it next year with increases and route density from new accounts and additional M&A plus the potential price increases.
Is there any reason that gross margins wouldn't the expected to continue to expand further in 2021, I guess are there any other considerations that investors should keep in mind when thinking about your margin.
I would believe and and I believe Jerry and John would believe the same that we will have an opportunity to expand in 2021.
We have invested as we talked in Q2 and Q3 on all of them.
Our inventory of protective equipment for our employees, our customer facing employees, our hopes would be as we move through 2021 that that would subside.
And that that would be somewhat of a support for us.
We continue to have good positive momentum as we talked about a couple of times, having to do with our routing and scheduling.
And we will continue to see and reap the benefits of that and I think.
To your point of the density as as commercial were to continue to incrementally get better as we're all hoping as we move through 2021 that density will improve and make those improvements potentially even better. So we believe we have a few different areas that would be supportive of us in addition to what.
We would normally do as far as our incremental improvements on a year over year basis.
Yeah.
This is John Wilson and then.
Eddie touched on a couple of things that I would've.
Had the offer and that was the routing and scheduling and the account density based.
But related to the selling of our new accounts you had already asked the question about the price increase that will roll with we didn't see any backup and our.
The ability to get price for our new accounts and so we expect that to continue to grow for 2021, and and and that will help as well.
Understood. Thanks, John Thanks, Eddie.
Thank you.
Yeah.
And our next question is from Mario and quite a lot you would Jefferies. Please proceed with your question.
Hi, Thanks for the time.
Could you maybe update us on how sustainable you think that revenue growth is.
And at these levels.
And we get into 2021, and obviously, there is going to be tougher comps and.
And potentially and people head back to work with the vaccine maybe you see.
And the less demand.
Wanted to get a sense for if you think that could put a damper on 2021 resi growth.
So I would say a couple of things one is that.
We don't know what the return to work is going to look like and you're exactly right and make comping as we move throughout the year will be more difficult and what it would be during a normal year.
Q1.
It will be.
And we've not lapped yet.
And as things really didn't make a make a change until the end of March So Q1, and I think we'll probably still see what we've seen as people word of return will that will that reduce the demand and I think that's kind of yet to be seen at this point the positive for us is and Jerry talked about this as the sale of our mosquito product as we continue to do that.
That product continues to grow at a 30% plus clip on a on a growing base.
And and probably the exciting thing for me is that we've really expanded the opportunity for growth with this particular.
With this particular service to many of our different brands.
And so early on we had a few of our brands that really we're concentrating on this and this has really expanded the others. So we believe this is going to be of good residential opportunity for us as we move forward, but Mario and I think I think we're all kind of guessing right now and what that impact of the state from home is going to look at look like as we kind of move throughout the year.
Great and then lastly, just mentioned.
Piggyback off of the mosquito comment.
I guess, maybe if you can talk about some of the biggest opportunities you had it sounds like mosquito is obviously one of them, we know about that Bob and we know that you guys launched that the disinfecting the service.
Would you be able to give us maybe an update on penetration on the services and then also is there anything else that debt.
And its infancy oriented and early innings debt. We should also maybe keep an eye on.
So I would say that I made the comment about wildlife our wildlife.
Continues to grow I think the infrastructure that we put in place over the last two to three years with Steve <unk>, leading the charge there with our emerging opportunities.
Group has really made a positive impact for I'll call. It a nice add on so we get those calls and our call center.
And now we have a broader reach to be able to service those customers that have those types of wildlife needs. So I think we're going to continue to have opportunities. There mosquito we've already talked about in the past we talked some about about bedbug bedbug revenue is down year over year part of that is.
As our own decision on pricing and looking at the profitability of that compared to us putting the energy behind the mosquito product, which is which is the.
Much higher margin product.
But then I would shift over to the to the termite and ancillary side and say we have continued opportunities to grow there.
As we have entered the premises and a lot of cases, having to do with the with.
The termite support and then and then providing those ancillary services and other parts of the home.
And we've had good growth in these areas over the last few years and I would say that will continue to be and opportunity.
Yes.
All right.
Mario Let me and this is John let me add the opportunities of couple.
Multiple services.
With our current customer base.
It's really pretty pretty high we have less and 20% of our customers that have multiple services and so when we can when we can do that and we've had good success, adding mosquito.
And he mentioned wildlife and and some other things.
That opportunity there is there for us in 'twenty and 'twenty, one to really build off.
Thank you for that.
I'd add to that we also have seen and opportunity for our friend of mosquito and the commercial sector.
More and more people are eating outdoors wanting to spend time and restaurants, not being cooped up inside per say more outside and so we have opportunity on commercial to also drive mosquito business as well.
Thank you so much for your time.
Yeah.
Yeah.
And just as a reminder, if and I can ask a question you mean.
Press Star one on the telephone from pad doing so low and you answered the question and cube.
And our next question is from Michael Hoffman of Stifel. Please proceed with your question.
Okay.
Yes.
Yeah.
Michael Please make sure of your line is now and you're right.
Oops Yep.
And I'll have to learn about that this year don't we.
Thank you for taking the questions.
What I'd like to ask about is disaggregated and the organic part of residential both in the quarter and for the year to understand the mix of our new customer add as a proportion of the <unk>.
Nine three and the quarter and $8 seven for the year versus the cross sell.
And that sort of ties into the comment of less than 20 per cent of the customer base today has more than one service from turned out understand.
How much was.
And the 93 was adding of service versus <unk>.
Adding of customer.
Okay.
Uh huh.
So I think the way that I would.
The answer that question is kind of like the growth of our international volume as a percentage of our total we continue to add new geographies internationally, we continue to add new companies as we did most recently in Australia.
And our international operations, but our percent of our international to our total continues to hover around that same 7% or 8% no matter, what we do internationally because of the growth that we have and the U S. Those numbers of kind of stayed intact and I would just use that analogy Michael the kind of say, we're kind of doing the same thing here. So we're adding.
A significant number of new customers, but at the same time, we are adding new services to existing customers.
And so.
And as much as we continue to look for those penetration opportunities.
It's the it's a good problem to have that that number necessarily is and improving significantly as far as those that have more than one service because we are adding new customers each and every quarter. So we will continue once we have our foot in the door to continue to add those new services and as we've shared.
And this call before anytime we have more than one service the light.
Hood of that customer retaining and staying with us is significantly higher.
We will continue to pursue that on the on the second or third or more services, but we're also happy on the new customer growth as well.
Okay.
I'll have to ask a clarification there, but I wanted to ask my second question. It makes try and get it and so can you help us with cadence.
So everybody appreciates the way things flowed in 'twenty, and total and things that we ought to be aware of as we progress through 'twenty, one and you alluded to we haven't we.
We haven't anniversaried, the negative headwinds through <unk>, but can.
Without it being percentage numbers can you help us.
<unk> positive and one meaningfully positive and two and then it settles back. This is all of the organic side into sort of a normal course, and three and four is that the right way to think about it.
I would I would say the things that in my mind are the most impactful and then.
Jerry and John and Gary May have some of the thoughts of the things that I would say our most impactful were.
The Q end of Q1 into Q2 with our headwind of materials and supplies that occurred in 2020 that we feel will not be a.
The headwind as we're moving through 2021 based on everything that we know today.
And feel like that we have made those purchases as we talked about in Q3, we actually had to write down our inventory because in Q2, we purchased at a very high price and some cases to be able to get that protective equipment and place.
Which was the right thing to do at the time and continue to move of our business forward, but we feel as though that will be a good tailwind for us, especially as we move Q Q2 Q3 Q4.
I'd say on the residential side Mario already asked the question on what that looks like for US Q1, and we really don't have a comp for that because really things didn't go.
With us there until the end of March, but I think the stay at home from there we will continue to be a play and.
And we will continue to drive demand.
Well as the continued concentration on the other of the <unk>.
Services that we talked about and I would think that incrementally we may see a little bit.
More of a headwind on that as we move to Q3 into Q4 of 2021. However, the offset of that would be if if things are getting back to normal and if people are going back to work that would mean that the commercial product should in fact be going the other way and the commercial products should be improving incrementally as we move Q2 and.
The Q3 into Q4, when we look at this year over year.
So for all of those times, when we had investors ask us why we didn't concentrate only on the commercial product.
And I said I was very happy with the with.
With the different products that we had to be able to sell because of the diversification I think Michael we're going to see a little bit of that as we move through this debt that if in fact the stay at home.
Does does kind of subsides and the commercial should should see good improvements as we move forward.
Does that help yes. It does thank you.
Yeah.
And our next question is from Tim Mulrooney with William Blair. Please proceed with your question.
Thanks, Chris Thanks for squeezing me back in I, just wanted to talk about M&A for a second so if we step back and look at the full year of 2020.
Can you talk about how many acquisitions did you complete and total I'm just curious of.
The peso is greater or lower relative to prior years, given the disruption from the pandemic upfront was pretty similar.
It was I'm going to let Jerry and John way and with with any specifics they had but it was similar in nature as far as the number.
Our concern of course of the 2019 number as I mentioned was would be significantly skewed with our initial Clark pest control purchase that we made but I think the number and even taking a look kind of generally at a spread of.
Of international end of or can tuck in acquisitions and others like that I think we're relatively in line with what we've seen.
As with previous years, that's correct.
Flat to prior year, Okay alright.
Perfect and then.
And have valuations and pulled back at all given all of this disruption or are the have they all kind of been on par with what you typically see.
But Tim Tim This is John and David not hold back there.
Things are still pretty frothy from from that that side of.
And we're.
We're kind of pick and choose the ones, we really want to go after Hart.
As a result of that we want to we want to buy really good businesses with great reputation and the market and and the Mccall business and Jacksonville.
The most recent example.
Yeah, I saw that the that looks like a good one.
Can I squeeze one more in for Gary.
And you get one follow up question. So there you go ex.
Excellent Gary.
Gary this one's for you.
Do you still plan to use free cash flow.
To further delever the balance sheet in 2021 or does having some debt on the balance sheet and makes sense.
Yes.
Well I think we take on more debt and if we.
We had to with the right acquisition strength.
And that's been our practice and the past.
We've retired.
And the 80 to $88 5 million just this last year, we retired $80 million of our debt.
But certainly if the right acquisition came along.
We need to incur more debt if we had to.
Okay.
That's very helpful. Thanks, so much guys.
I do need to clarify one thing before we before we turn it over to Gary to wrap up and my statement and my prepared statement when I talked about our quarterly dividend increasing price.
Statements should've been and our quarterly dividend increased over and over the fourth quarter dividend that we had so if you. If you remember back to 2020, we actually reduced our dividend from our from our first quarter of 2020 down for the remainder of the year. So the improvement that I that I mentioned should of referenced the fact that it was compared to the Q4.
The dividend, so I hope that clarifies and I apologize.
<unk> from misstating that earlier.
And our next question is from Michael Hoffman from Stifel. Please proceed with your question. Thank you for Atlanta, and the follow up and I.
And you have to keep letting the fellow from Jefferies ask the first and then I can do the fall of the him. Some of the M&A question. I had was can you tell us what the dollar of revenue that rolls into 'twenty. One from deals you did and 'twenty. So we get that accurate.
So we don't we don't break that out and Mike, Yes, Mike We don't we don't break that out.
Okay.
And then the dividend what's the take for the dividend and go back to 12 cents a quarter post split.
Well that was the confusion and I think partially that I just are.
Are you, saying post split yeah. So.
I mean, if you cut it from after you'd split it it would have been 12 cents. So we cut it from 12 day, if I've done my math correctly.
What's the take for you to return it back to 12.
I mean, the board would have to review our current cash of opportunities to be able to use that cash and in the past back onto the back onto the.
Holders and the compared to where we were in Q4 and then we split our shares.
It's an increase from there.
Okay. Thank you.
Mhm.
Alright, Gary any of them.
And the question.
We have reached the end of the question and answer session I will now turn the call over to the management for closing remarks.
Okay. Thank you all for joining US today, we appreciate your interest and our company.
And we enter 2021 and optimistic about our opportunities and.
And look forward to updating you on our progress on our next earnings call.
Thank you again.
This concludes today's conference.
Okay.