Rollins, Inc.

Greetings. Welcome to the Rollins Inc. First Quarter 2025 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, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce 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 31, 2024. 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 Rollins delivered strong first quarter results. Overall, we continue to see solid growth across all major service lines, with total revenue growth of nearly 10% and organic growth of 7.4%, despite one less business day. Earlier this month, we announced our acquisition of Sayla Pest Control. We have known and admired Sayla's business for a number of years. In fact, Mitch Smith, Selah's president is a former Orkin division president, so we're happy to welcome him and the rest of our Selah teammates to the Rollins family. Kim will share more of the financial details associated with the transaction in a moment, but Selah is a wonderful addition to the Rollins family of brands for several reasons. First and foremost, they have a strong culture that is focused on people, people who deliver amazing service. Second, Selah has a scaled operation with a strong track record enabled by their focus on operational execution. Third, their presence in key geographies, including the Pacific Northwest, Mountain West, and the Midwestern United States, provides a platform for us to more effectively deploy our multi-brand strategy. As you know, We believe the combination of Orkin and our strong group of regional brands is a competitive differentiator for Rollins, giving us multiple bites at the apple with potential customers, while also providing some balance and diversification with respect to customer acquisition. The addition of CELA further strengthens these competitive advantages. Earlier this month, I was able to meet many of CELA's teammates in Utah and Colorado, and I was really impressed. I'm proud to welcome them all to Rollins, and I'm confident that Sayla's business is well aligned to our strategy for sustainable, profitable growth. Our investments in strategic M&A opportunities are also complemented by ongoing investments to drive organic growth. As expected, we continued our investments in incremental sales, staffing, and marketing activities ahead of peak season to ensure that we are positioned top of mind for the consumer as pest season begins. We are well staffed on the sales, technician, and customer service support front, with our teammates onboarded, extensively trained, and ready to provide an exceptional level of service for our customers. On the commercial side of the business, we are encouraged by our momentum. Overall, we delivered solid, double-digit commercial growth for the first quarter, despite some softness of commercial one-time special services, such as commodity fumigation. Over the last year, we have strategically added resources to support our dedicated commercial division within Orkin. These resources are paying off as Orkin Commercial delivered double-digit recurring revenue growth in the first quarter. 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 gross margin improvement in the quarter as we executed our pricing strategy leveraged our cost structure, and drove efficiencies throughout the business. This is somewhat offset by ongoing investments we have made to support our long-term growth objectives, but we remain confident in our ability to yield a strong return on these investments in the quarters and years ahead. And finally, before I turn it over to Ken, I would like to take a moment to welcome Paul Donahue, who was elected to our board of directors at our annual shareholder meeting earlier this week. Paul serves as non-executive chairman of Genuine Parts Company and was previously CEO and chairman there as well. His extensive leadership experience, business expertise, and commitment to the community bring great value to Rollins, and we look forward to the impact he'll have on our company. In closing, we're excited about where our business stands today. The years off to a solid start and demand from our customers remain strong. Our teams in the field are ready to support our customers as peak season ramps up, and I want to thank each of our 20,000-plus team members around the world for their ongoing commitment to our customers. I'll now turn the call over to Ken.