ROLLINS INC [ROL] Filings

10-Q 1 rol-20220930x10q.htm 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

Commission File Number 1-4422

ROLLINS, INC.

(Exact name of registrant as specified in its charter)


Delaware	51-0068479
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2170 Piedmont Road, N.E., Atlanta, Georgia

(Address of principal executive offices)

30324

(Zip Code)

(404) 888-2000

(Registrant’s telephone number, including area code)

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	ROL	NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐
Yes	☐	No	☒

Rollins, Inc. had 492,472,436 shares of its $1 par value Common Stock outstanding as of October 17, 2022.

ROLLINS, INC. AND SUBSIDIARIES

PART 1 FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF SEPTEMBER 30, 2022, AND DECEMBER 31, 2021

(in thousands except share data)

(unaudited)


	September 30,		December 31,
	2022		2021
ASSETS
Cash and cash equivalents	$	121,876	$	105,301
Trade receivables, net of allowance for expected credit losses of $13,783 and $13,885, respectively		170,274		139,579
Financed receivables, short-term, net of allowance for expected credit losses of $1,779 and $1,463, respectively		32,253		26,152
Materials and supplies		28,572		28,926
Other current assets		45,981		52,422
Total current assets		398,956		352,380
Equipment and property, net of accumulated depreciation of $330,173 and $315,891, respectively		130,362		133,257
Goodwill		772,325		721,819
Customer contracts, net		319,382		325,929
Trademarks & tradenames, net		114,016		108,976
Other intangible assets, net		9,807		11,679
Operating lease right-of-use assets		270,365		244,784
Financed receivables, long-term, net of allowance for expected credit losses of $3,121 and $2,522, respectively		58,634		47,097
Other assets		38,636		34,949
Total assets	$	2,112,483	$	1,980,870
LIABILITIES
Accounts payable	$	42,874	$	44,568
Accrued insurance - current		40,424		36,414
Accrued compensation and related liabilities		95,694		97,862
Unearned revenues		166,866		145,122
Operating lease liabilities - current		82,611		75,240
Current portion of long-term debt		15,000		18,750
Other current liabilities		66,300		73,206
Total current liabilities		509,769		491,162
Accrued insurance, less current portion		35,257		31,545
Operating lease liabilities, less current portion		191,565		172,520
Long-term debt		109,878		136,250
Other long-term accrued liabilities		69,463		67,345
Total liabilities		915,932		898,822
Commitments and contingencies (see Note 11)
STOCKHOLDERS’ EQUITY
Preferred stock, without par value; 500,000 shares authorized, zero shares issued		—		—
Common stock, par value $1 per share; 800,000,000 shares authorized, 492,472,436 and 491,911,087 shares issued and outstanding, respectively		492,472		491,911
Additional paid in capital		113,995		105,629
Accumulated other comprehensive loss		(43,566)		(16,411)
Retained earnings		633,650		500,919
Total stockholders’ equity		1,196,551		1,082,048
Total liabilities and stockholders’ equity	$	2,112,483	$	1,980,870

The accompanying notes are an integral part of these condensed consolidated financial statements.

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(in thousands except per share data)

(unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
REVENUES
Customer services	$	729,704	$	650,199	$	2,034,433	$	1,823,957
COSTS AND EXPENSES
Cost of services provided (exclusive of depreciation and amortization below)		348,158		305,474		980,316		864,888
Sales, general and administrative		213,581		194,261		612,353		539,951
Depreciation and amortization		24,282		23,617		73,454		70,519
Total operating expenses		586,021		523,352		1,666,123		1,475,358
OPERATING INCOME		143,683		126,847		368,310		348,599
Interest expense, net		846		222		2,294		1,334
Other (income), net		(1,980)		(447)		(5,170)		(33,598)
CONSOLIDATED INCOME BEFORE INCOME TAXES		144,817		127,072		371,186		380,863
PROVISION FOR INCOME TAXES		37,195		33,219		90,820		95,513
NET INCOME	$	107,622	$	93,853	$	280,366	$	285,350
NET INCOME PER SHARE - BASIC AND DILUTED	$	0.22	$	0.19	$	0.57	$	0.58
Weighted average shares outstanding - basic		492,316		492,069		492,285		492,058
Weighted average shares outstanding - diluted		492,430		492,069		492,398		492,058
DIVIDENDS PAID PER SHARE	$	0.10	$	0.08	$	0.30	$	0.24

The accompanying notes are an integral part of these condensed consolidated financial statements.

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(in thousands)

(unaudited)


	Three Months Ending				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
NET INCOME	$	107,622	$	93,853	$	280,366	$	285,350
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(12,417)		(7,207)		(26,203)		(6,924)
Unrealized loss on available for sale securities		—		—		(952)		—
Change in derivatives		—		632		—		356
Other comprehensive income (loss), net of tax		(12,417)		(6,575)		(27,155)		(6,568)
Comprehensive income	$	95,205	$	87,278	$	253,211	$	278,782

The accompanying notes are an integral part of these condensed consolidated financial statements.

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(in thousands)

(unaudited)


						Accumulated Other
	Common Stock			Paid-in-		Comprehensive		Retained
	Shares	Amount		Capital		Income / (Loss)		Earnings		Total
Balance at June 30, 2022	492,417	$	492,417	$	109,070	$	(31,149)	$	575,229	$	1,145,567
Net Income	—		—		—		—		107,622		107,622
Other comprehensive income / (loss), net of tax:
Foreign currency translation adjustments	—		—		—		(12,417)		—		(12,417)
Cash dividends	—		—		—		—		(49,201)		(49,201)
Stock compensation	55		55		4,902		—		—		4,957
Employee stock buybacks	—		—		23		—		—		23
Balance at September 30, 2022	492,472	$	492,472	$	113,995	$	(43,566)	$	633,650	$	1,196,551


						Accumulated Other
	Common Stock			Paid-in-		Comprehensive		Retained
	Shares	Amount		Capital		Income / (Loss)		Earnings		Total
Balance at June 30, 2021	492,079	$	492,079	$	98,842	$	(10,890)	$	470,653	$	1,050,684
Net Income	—		—		—		—		93,853		93,853
Other comprehensive income / (loss), net of tax:
Foreign currency translation adjustments	—		—		—		(7,207)		—		(7,207)
Change in derivatives	—		—		—		632		—		632
Cash dividends	—		—		—		—		(39,945)		(39,945)
Stock compensation	(22)		(22)		3,942		—		—		3,920
Employee stock buybacks	(8)		(8)		(300)		—		—		(308)
Balance at September 30, 2021	492,049	$	492,049	$	102,484	$	(17,465)	$	524,561	$	1,101,629


						Accumulated Other
	Common Stock			Paid-in-		Comprehensive		Retained
	Shares	Amount		Capital		Income / (Loss)		Earnings		Total
Balance at December 31, 2021	491,911	$	491,911	$	105,629	$	(16,411)	$	500,919	$	1,082,048
Net Income									280,366		280,366
Other comprehensive income / (loss), net of tax:
Foreign currency translation adjustments	—		—		—		(26,203)		—		(26,203)
Unrealized losses on available for sale securities	—		—		—		(952)		—		(952)
Cash dividends	—		—		—		—		(147,635)		(147,635)
Stock compensation	786		786		15,128		—		—		15,914
Employee stock buybacks	(225)		(225)		(6,762)		—		—		(6,987)
Balance at September 30, 2022	492,472	$	492,472	$	113,995	$	(43,566)	$	633,650	$	1,196,551


						Accumulated Other
	Common Stock			Paid-in-		Comprehensive		Retained
	Shares	Amount		Capital		Income / (Loss)		Earnings		Total
Balance at December 31, 2020	491,612	$	491,612	$	101,757	$	(10,897)	$	358,888	$	941,360
Net Income									285,350		285,350
Other comprehensive income / (loss), net of tax:
Foreign currency translation adjustments							(6,924)				(6,924)
Change in derivatives							356				356
Cash dividends									(119,677)		(119,677)
Stock compensation	728		728		11,034				—		11,762
Employee stock buybacks	(291)		(291)		(10,307)				—		(10,598)
Balance at September 30, 2021	492,049	$	492,049	$	102,484	$	(17,465)	$	524,561	$	1,101,629

The accompanying notes are an integral part of these condensed consolidated financial statements.

ROLLINS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(in thousands)

(unaudited)


	Nine Months Ended
	September 30,
	2022		2021
OPERATING ACTIVITIES
Net income	$	280,366	$	285,350
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		73,454		70,519
Stock-based compensation expense		15,914		11,762
Provision for expected credit losses		13,593		8,522
Gain on sale of assets, net		(5,170)		(33,598)
Provision for deferred income taxes		2,210		2,221
Changes in operating assets and liabilities:
Trade accounts receivable and other accounts receivable		(40,872)		(34,294)
Financing receivables		(21,021)		(13,041)
Materials and supplies		295		3,780
Other current assets		(3,580)		(11,426)
Accounts payable and accrued expenses		(669)		(8,564)
Unearned revenue		19,655		20,685
Other long-term assets and liabilities		8,362		(3,005)
Net cash provided by operating activities		342,537		298,911
INVESTING ACTIVITIES
Acquisitions, net of cash acquired		(110,418)		(39,692)
Capital expenditures		(22,921)		(20,031)
Proceeds from sale of assets		9,822		70,967
Other investing activities, net		139		(140)
Net cash (used in) provided by investing activities		(123,378)		11,104
FINANCING ACTIVITIES
Payment of contingent consideration		(11,663)		(19,413)
Borrowings under term loan		252,000		—
Borrowings under revolving commitment		11,000		82,500
Repayments of term loan		(175,000)		(83,000)
Repayments of revolving commitment		(118,000)		(134,500)
Payment of dividends		(147,635)		(119,677)
Cash paid for common stock purchased		(6,987)		(10,598)
Net cash used in financing activities		(196,285)		(284,688)
Effect of exchange rate changes on cash		(6,299)		(6,149)
Net increase in cash and cash equivalents		16,575		19,178
Cash and cash equivalents at beginning of period		105,301		98,477
Cash and cash equivalents at end of period	$	121,876	$	117,655
Supplemental disclosure of cash flow information:
Cash paid for interest	$	3,229	$	681
Cash paid for income taxes, net	$	104,974	$	88,350
Non-cash additions to operating lease right-of-use assets	$	92,365	$	101,720

The accompanying notes are an integral part of these condensed consolidated financial statements.

ROLLINS, INC. AND SUBSIDIARIES

NOTE 1.BASIS OF PREPARATION

Basis of Preparation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, the instructions to Form 10-Q and applicable sections of SEC regulation S-X, and therefore do not include all information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. There have been no material changes in the Company’s significant accounting policies or the information disclosed in the notes to the consolidated financial statements included in the Annual Report on Form 10-K of Rollins, Inc. (including its subsidiaries unless the context otherwise requires, “Rollins,” “we,” “us,” “our,” or the “Company”) for the year ended December 31, 2021. Accordingly, the quarterly condensed consolidated financial statements and related disclosures herein should be read in conjunction with the 2021 Annual Report on Form 10-K.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses and certain financial statement disclosures. Estimates and assumptions are used for, but not limited to, accrued insurance, revenue recognition, right-of-use ("ROU") asset and liability valuations, accounts and financing receivable reserves, income tax contingency accruals and valuation allowances, contingency accruals and goodwill and other intangible asset valuations. Although these estimates are based on management's knowledge of current events and actions it may undertake in the future, actual results may ultimately differ from these estimates and assumptions.

The Company’s condensed consolidated financial statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and related disclosures as of the date of the condensed consolidated financial statements. The Company considered the impact of COVID-19 and other economic trends on the assumptions and estimates used in preparing the condensed consolidated financial statements. In the opinion of management, all material adjustments necessary for a fair presentation of the Company’s financial results for the quarter have been made. These adjustments are of a normal recurring nature but complicated by the continued uncertainty surrounding COVID-19 and other economic trends. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of results for the entire year. The severity, magnitude and duration of certain economic trends, as well as the economic consequences of COVID-19, continue to be uncertain and are difficult to predict. Therefore, our accounting estimates and assumptions may change over time in response to COVID-19 and other economic trends and may change materially in future periods.

The Company operates as one reportable segment and the results of operations and its financial condition are not reliant upon any single customer.

NOTE 2.RECENT ACCOUNTING PRONOUNCEMENTS

Recently adopted accounting standards

In November 2021, the FASB issued Accounting Standards Update (“ASU”) 2021-10, “Government Assistance (Topic 832) – Disclosures by Business Entities about Government Assistance.” The amendments in this Update require disclosures about transactions with a government that have been accounted for by analogizing to a grant or contribution accounting model to increase transparency about (1) the types of transactions, (2) the accounting for the transactions, and (3) the effect of the transactions on an entity’s financial statements. The amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2021. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

ROLLINS, INC. AND SUBSIDIARIES

Accounting standards issued but not yet adopted

In March 2022, the FASB issued ASU 2022-02, “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The amendments in this Update eliminate the accounting guidance for troubled debt restructurings (TDRs) by creditors in Subtopic 310-40, Receivables-Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, for public business entities, the amendments in this Update require that an entity disclose current-period gross write-offs by year of origination for financing receivables. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements.

In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurements of Equity Securities Subject to Contractual Sale Restrictions.” The amendments in this Update clarify the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security. This Update also introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. These amendments are effective for fiscal years beginning after December 15, 2023 and interim periods within those fiscal years. The Company does not currently own any equity securities and therefore the adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements.

NOTE 3.ACQUISITIONS

The Company made 27 acquisitions during the nine-month period ended September 30, 2022, and 39 acquisitions for the year ended December 31, 2021. For the 27 acquisitions completed through September 30, 2022, the preliminary values of major classes of assets acquired and liabilities assumed recorded at the dates of acquisition, as adjusted during the valuation period, are included in the reconciliation of the total consideration as follows (in thousands):


	September 30, 2022
Accounts receivable, net	$	2,926
Materials and supplies		439
Equipment and property		6,245
Goodwill		60,962
Customer contracts		44,377
Trademarks & tradenames		5,615
Other intangible assets		1,393
Current liabilities		(4,285)
Other assets and liabilities, net		(1,384)
Total consideration	$	116,288
Less: Acquisition holdback liabilities		(8,978)
Total cash purchase price	$	107,310

The Company also made a final payment of $3.1 million for a 2021 acquisition in 2022.

Goodwill from acquisitions represents the excess of the purchase price over the fair value of net assets of businesses acquired. The factors contributing to the amount of goodwill are based on strategic and synergistic benefits that are expected to be realized. For the nine months ended September 30, 2022, $61.0 million of goodwill was added related to the 27 acquisitions noted above. The recognized goodwill is expected to be deductible for tax purposes. The purchase price allocations for these acquisitions are preliminary until the Company obtains final information regarding these fair values.

ROLLINS, INC. AND SUBSIDIARIES

NOTE 4.REVENUE

The following tables present our revenues disaggregated by revenue source (in thousands).

Sales and usage-based taxes are excluded from revenues. No sales to an individual customer or in a country other than the United States accounted for 10% or more of the sales for the periods listed in the following table.

Revenue, classified by the major geographic areas in which our customers are located, was as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
(in thousands)
United States	$	676,408	$	602,336	$	1,884,571	$	1,686,371
Other countries		53,296		47,863		149,862		137,586
Total Revenues	$	729,704	$	650,199	$	2,034,433	$	1,823,957

Revenue from external customers, classified by significant product and service offerings, was as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2022		2021		2022		2021
Residential revenue	$	337,878	$	307,747	$	922,448	$	835,871
Commercial revenue		243,478		218,648		683,748		618,183
Termite completions, bait monitoring, & renewals		139,668		117,423		406,155		350,791
Franchise revenues		4,068		4,128		11,960		11,698
Other revenues		4,612		2,253		10,122		7,414
Total Revenues	$	729,704	$	650,199	$	2,034,433	$	1,823,957

The Company records unearned revenue when we have either received payment or contractually have the right to bill for services in advance of the services or performance obligations being performed. Deferred revenue recognized in the three and nine months ended September 30, 2022 and 2021 was $51.6 million and $47.3 million, respectively and $152.5 and $139.6, respectively. Changes in unearned revenue were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
(in thousands)
Beginning balance	$	192,972	$	172,951	$	168,607	$	149,224
Deferral of unearned revenue		54,946		49,060		180,209		165,094
Recognition of unearned revenue		(51,553)		(47,316)		(152,451)		(139,623)
Ending balance	$	196,365	$	174,695	$	196,365	$	174,695

As of September 30, 2022, and December 31, 2021, the Company had long-term unearned revenue of $29.5 million and $18.4 million, respectively, recorded in other long-term accrued liabilities. Unearned short-term revenue is recognized over the next 12-month period. The majority of unearned long-term revenue is recognized over a period of five years or less with immaterial amounts recognized through 2033.

ROLLINS, INC. AND SUBSIDIARIES

NOTE 5.ALLOWANCE FOR CREDIT LOSSES

The Company is exposed to credit losses primarily related to accounts receivables and financed receivables derived from customer services revenue. To reduce credit risk for residential pest control accounts receivable, we promote enrollment in our auto-pay programs. In general, we may suspend future services for customers with past due balances. The Company’s credit risk is generally low with a large number of individuals and entities comprising Rollins’ customer base and dispersion across many different geographical regions.

The Company manages its financing receivables on an aggregate basis when assessing and monitoring credit risks. The Company’s established credit evaluation and monitoring procedures seek to minimize the amount of business we conduct with higher risk customers. The credit quality of a potential obligor is evaluated at the loan origination based on an assessment of the individual’s Beacon/credit bureau score. Rollins requires a potential obligor to have good credit worthiness with low risk before entering into a contract. Depending upon the individual’s credit score, the Company may accept with 100% financing, require a significant down payment or turn down the contract. Delinquencies of accounts are monitored each month. Financing receivables include installment receivable amounts, some of which are due subsequent to one year from the balance sheet dates.

The Company’s allowances for credit losses for trade accounts receivable and financed receivables are developed using historical collection experience, current economic and market conditions, reasonable and supportable forecasts, and a review of the current status of customers’ receivables. The Company’s receivable pools are classified between residential customers, commercial customers, large commercial customers, and financed receivables. Accounts are written off against the allowance for credit losses when the Company determines that amounts are uncollectible, and recoveries of amounts previously written off are recorded when collected. The Company stops accruing interest to these receivables when they are deemed uncollectible. Below is a roll forward of the Company’s allowance for credit losses for the three and nine months ended September 30, 2022 and 2021 (in thousands).

ROLLINS, INC. AND SUBSIDIARIES



	Allowance for Credit Losses
	Trade		Financed		Total
	Receivables		Receivables		Receivables
Balance at June 30, 2022	$	13,666	$	4,554	$	18,220
Provision for expected credit losses		3,842		1,316		5,158
Write-offs charged against the allowance		(5,095)		(970)		(6,065)
Recoveries collected		1,370		—		1,370
Balance at September 30, 2022	$	13,783	$	4,900	$	18,683


	Allowance for Credit Losses
	Trade		Financed		Total
	Receivables		Receivables		Receivables
Balance at June 30, 2021	$	13,863	$	4,341	$	18,204
Provision for expected credit losses		3,526		323		3,849
Write-offs charged against the allowance		(5,163)		(657)		(5,820)
Recoveries collected		1,247		—		1,247
Balance at September 30, 2021	$	13,473	$	4,007	$	17,480


	Allowance for Credit Losses
	Trade		Financed		Total
	Receivables		Receivables		Receivables
Balance at December 31, 2021	$	13,885	$	3,985	$	17,870
Provision for expected credit losses		9,396		4,195		13,591
Write-offs charged against the allowance		(13,561)		(3,280)		(16,841)
Recoveries collected		4,063		—		4,063
Balance at September 30, 2022	$	13,783	$	4,900	$	18,683


	Allowance for Credit Losses
	Trade		Financed		Total
	Receivables		Receivables		Receivables
Balance at December 31, 2020	$	16,854	$	3,231	$	20,085
Provision for expected credit losses		5,760		2,762		8,522
Write-offs charged against the allowance		(12,912)		(1,986)		(14,898)
Recoveries collected		3,771		—		3,771
Balance at September 30, 2021	$	13,473