Rollins, Inc.

Greetings. Welcome to Rawlings Inc's first quarter 2024 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 on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Lindsay Burton, Vice President of Investor Relations. Thank you. You may begin.

Thank you, and good morning, everyone. In addition to the earnings release that we issued yesterday, the company has also prepared a supporting slide presentation. The earnings release and presentation are available on our website at www.rollins.com. We have included certain non-GAAP financial measures as part of our discussion this morning. The non-GAAP reconciliations are available in the appendix of today's presentation, as well as in our earnings release. The company's earnings release discusses the 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 results may differ materially from any statement we make today. Please refer to yesterday's press release and the company's SEC filings, including the risk factors section of our Form 10-K for the year ended December 31st, 2023. On the line with me today and speaking are Jerry Galoff, President and Chief Executive Officer, and Ken Krause, Executive Vice President, Chief Financial Officer and Treasurer. Management will make some opening remarks and then we'll open the line for your questions. Before I turn it over to Jerry, I want to remind everyone of our upcoming Investor Day on May 17th in New York City. We're looking forward to hosting the investment community and discussing our strategies for growing our business and driving value for our stakeholders. Jerry, would you like to begin?

Thank you, Lindsay. Good morning, everyone. I'm pleased to report that Rollins delivered another good quarter of growth and profitability, reflecting consistent execution of our operating strategies and continuous improvement in our business. Our financial performance for the first quarter was highlighted by an increase in revenue of nearly 14% to $748 million. We delivered healthy organic growth of 7.5% in the quarter. despite some unfavorable and erratic weather in January compared to last year, which Kim will discuss in more detail. Overall, we continue to see double-digit revenue growth across all major service lines, as total residential revenue increased 16.5%, commercial rose 11.4%, and termite was up 11.7% this quarter. We continue to invest in growing our business. As you would expect, we invested in incremental sales staffing and marketing activities ahead of peak season to ensure that we are well positioned and top of mind for the consumer as past season begins. We are well staffed on the technician and customer support front so their people are onboarded, extensively trained, and ready to provide an exceptional level of service for our customers. On the commercial side of the business, we are leveraging analytics to identify areas in the market where opportunity warrants additional resources, and this continues to pay dividends as evidenced by another quarter of double-digit commercial growth. We continue to strategically add feet on the street to our sales force and are leveraging our training and sales tools to better enable their success as well. Investments to drive organic growth are complemented by strategic M&A. April 1st marked the one-year anniversary of closing the Fox acquisition, and that team has performed exceptionally well. We anticipate that FOX will continue to positively impact organic growth and profitability as we go forward. We closed 12 tuck-in deals in the first three months of the year, and the M&A pipeline remains healthy. We're actively evaluating acquisition opportunities, both domestically and internationally, and remain on track to deliver at least 2% of growth from M&A activity in 2024. Beyond growth, our dedication to operational efficiency and continuous improvement is an important part of our strategy and culture. Kim will discuss in more detail what we saw healthy margin improvement in the quarter as we executed our pricing strategy, leveraged our cost structure, and drove efficiencies throughout the business. Safety remains an important area of focus for us, and efforts to enhance safety coaching, training, and protocols resulted in higher driving safety scores and fewer recorded safety incidents when compared to a year ago. In closing, we're excited about where our business stands today. This year is off to a solid start, and demand from our customers remains strong, with over 7% organic growth in the first quarter. Our markets are solid, staffing levels are healthy, and our team is focused on driving continuous improvement and profitable growth. I want to thank each of our 19,000 plus team members around the world for their ongoing commitment to our customers. Before I hand it over to Ken, I'd like to announce a few changes to our board of directors. First, we would like to thank Jerry Nix, who recently retired from our board, for his service to our company. We've been so fortunate to have Jerry as our lead director for the past several years. His experience, wisdom, and guidance helped us navigate uncharted waters for our company, and we're incredibly grateful for the significant contributions he's made along the way. Second, we would like to welcome Dale Jones, who was elected to our board at a recent shareholder meeting. Additionally, Louise Sams has been appointed as our new lead independent director. We're excited about the level of expertise and experience that both Dale and Louise will bring to our board in their new roles. Ken, I'll now turn the call over to you.