Rollins, Inc.

Greetings, and welcome to the Rollins, Inc. Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief 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. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Lindsay Burton, Vice President of Investor Relations. Thank you, Ms. Burton. 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 uncertainty. 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 factor 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 and Chief Financial Officer. Management will make some opening remarks, and then we'll open the line for your questions. 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 second quarter was highlighted by an increase in revenue of 8.7% to $892 million and we delivered healthy organic growth of 7.7% in the quarter. Overall, we continue to see solid revenue growth across all major service lines as total residential revenue increased 6.3%, commercial rose 9.9%, and termite ancillary was up 11.8% this quarter. We continue to invest in growing our business. As you would expect, we made strategic investments in incremental sales staffing and marketing activities during the quarter. We will continue to invest throughout Q3 to ensure that we remain top of mind and well positioned for share gains as peak pet season continues. We are well staffed on the technician and customer support front so that our people are onboarded, extensively trained, and ready to provide an exceptional level of service for our customers. This also means that we are positioned to convert our marketing and sales investments into new customer growth. Our team continuously challenges itself to think of new and different ways to enhance the relevance of our brand with current and future customers. Earlier in the summer, our creative team at Orkin partnered with Emmy nominated composer Brian Rudd to compose a seven-act symphony crafted entirely around the historic emergence of two broods of cicadas. We hosted the orchestra symphony live in Springfield, Illinois with curated music composed to accompany the recorded songs and rhythms of trillions of cicadas. The event garnered hundreds of millions of impressions for the Orkin brand and support for this unique initiative continues as the symphony is currently available on all streaming platforms. In fact, I listened to it again just the other day on a flight and found it to be very relaxing. I encourage you to check it out. On the commercial side of the business, investments we've made to capitalize on a multi-billion dollar growth opportunity in the B2B space continue to pay dividends. Our new commercial division continues to strategically add feet on the street to our sales force, and we are leveraging data analytics and training to better enable their success. Investments to drive organic growth are complemented by strategic M&A. We closed 26 tuck-in deals in the first six 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, but 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. In Q2, we enhanced our onboarding program for new teammates by providing more robust safety training with an emphasis on how we equip our new drivers with the technical skills, awareness, and courtesy needed to be safe on our roads and in the neighborhoods we serve. Our efforts continue to yield solid driver safety scores and further reinforce the culture of safety we strive to promote throughout our company. We continue to look for ways to modernize our company, and to that end, our board of directors recently amended and restated our bylaws to transition from a classified board structure to a declassified one. Going forward, board members that are up for reelection will be elected to one-year terms. This step aligns with corporate governance best practices. In closing, we're excited about where our business stands today. Demand from our customers remains strong with over 7% organic growth in the quarter and for the first half of the year. 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 20,000 plus teammates around the world for their ongoing commitment to our customers. I'll now turn the call over to Ken.