Revenue grew 4.9% to $583.7 million compared to $556.5 million for the same quarter in 2019.
Net income rose to $79.6 million or $0.24 per diluted share compared to $44.1 million or $0.13 per diluted share for the third quarter of last year.
Revenues for the first nine months of the year were $1.62 billion, an increase of 7.6% compared to $1.51 billion for the same period last year.
Net income for the first nine months increased to $198.2 million or $0.60 per diluted share compared to $152.6 million or $0.47 per diluted share for the comparable period last year.
Residential pest control grew 10.5% during the quarter, reflecting the resiliency of this service and its strong demand.
John joined the company in 1996 and has been an integral part in developing and executing Rollins strategic initiatives over the years.
Jerry started his career in the pets control industry in 1991 and came to Rollins in the HomeTeam acquisition in 2008.
And I've watched him over the last 13 years improve every operation he has touched.
Looking at the numbers, the third quarter revenues of $583.7 million was an increase of 4.9% over the prior year's third quarter revenue of $556.5 million.
Our GAAP income before income taxes was $108.9 million or 136% above 2019.
Net income was $79.6 million, up 80.6% compared to 2019.
Our GAAP earnings per share were $0.24 per diluted share.
On a non-GAAP basis, our income before taxes was $115.6 million this year compared to $96 million last year, a 20.4% increase.
Our 2020 income before taxes was impacted by $6.7 million for the vesting of our late Chairman's Rollins shares.
Additionally, 2019 was reduced by $49.9 million for our divesting of the pension plan off of our Rollins books.
Our non-GAAP net income was $86.3 million this year compared to $70.6 million in Q3 of 2019, a 22.1% increase.
Looking at the first nine months revenue of $1.625 billion, that was an increase of 7.6% over the prior year's third quarter revenue of $1.509 billion.
Our GAAP income before income taxes was $267.8 million or 41.6% above 2019.
Net income was $198.2 million, up 29.9% compared to 2019.
Our GAAP earnings per share were $0.60 per diluted share.
Our non-GAAP financials, taking the share vesting and pension plan into consideration, were income before taxes of $274.5 million, up 14.8% and net income was $204.9 million this year compared to $179.2 million in 2019, a 14.4% increase.
Our non-GAAP earnings per share for the nine months were $0.63 compared to $0.55, which is a 14.5% increase.
As the cost of these materials have moved lower from the peak, we took a $2 million onetime charge to revalue our inventory.
With pricing moving lower, we anticipate spending $1 million per quarter, down from the $2 million that we shared on previous calls.
Our total revenue increased 4.9%.
That included 1.4% from acquisitions and the remaining 3.5% was from pricing, which was a small portion of that, but mostly from organic and new customer growth.
In total, residential pest control, which made up 47% of our revenue, was up 10.5%; commercial, ex-fumigation pest control, which made up 34% of our revenue, was down 1.9%; and termite and ancillary services, which made up approximately 18% of our revenue, was up 6.2%.
Again, total revenue less acquisitions was up 3.5% and from that, residential was up 9%; commercial, ex-fumigation, decreased 3.7%; and termite and ancillary grew by 5.9%.
In total, gross margin increased to 52.8% from 51.7% in the prior year's quarter.
Depreciation and amortization expenses for the quarter increased $714,000 to $22.4 million, an increase of 3.3%.
Depreciation increased $1 million due to acquisitions, vehicles acquired and equipment purchases, while amortization of intangible assets decreased $286,000 due to the full amortization of customer contracts from several acquisitions, including HomeTeam and tuck-ins related to Orkin.
Sales, general and administrative expenses for the third quarter increased $838,000 or 0.5% to $168 million or 28.8% of revenues, down from 30% last year.
As for our cash position for the 9-month period ended September 30, 2020, we spent $79.9 million on acquisitions compared to $431.2 million in the same period last year, which included the acquisition of Clark Pest Control.
We paid $91.7 million on dividends and had $17.7 million of capital expenditures, which was slightly lower compared to 2019.
We ended the period with $95.4 million in cash, of which $62.9 million is held by our foreign subsidiaries.
Yesterday, the Board of Directors approved a large regular cash dividend of $0.08 per share plus a special dividend of $0.13 that will be paid on December 20, 2020, to stockholders of record at the close of business November 10, 2020.
In addition, they also announced a 3-for-2 stock split that will take effect December 10, 2020, for stockholders of record at the close of business on November 10, 2020.

Summary:
Revenue grew 4.9% to $583.7 million compared to $556.5 million for the same quarter in 2019.
Net income rose to $79.6 million or $0.24 per diluted share compared to $44.1 million or $0.13 per diluted share for the third quarter of last year.
Our GAAP earnings per share were $0.24 per diluted share.