Rollins, Inc.

Greetings and welcome to the Rollins, Inc. Third 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 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, Lindsey Burton. 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 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 exceptional third quarter results. Overall, we continue to see solid growth across all major service lines with total revenue growth of 12%. and organic growth of 7.2%. Growth from acquisitions was bolstered by the performance of CELA, which continues to exceed our expectations. The integration of CELA has progressed very smoothly, thanks to the efforts of our collective teams. As you know, we believe in 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 SALA further strengthens these competitive advantages for us. Our investments in strategic M&A opportunities are also complemented by ongoing investments to drive organic growth. We've made a number of investments on the commercial side of the business and remain encouraged by the momentum we're seeing at the results. 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 growth in the third quarter. As a reminder, while commercial takes a little more upfront investment to drive growth, it's also the highest retention business amongst our service lines, making the lifetime value of these customer relationships very attractive. 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 were pleased with our margin performance in the quarter, which was supported by some favorability related to insurance and claims, as well as leverage in other key cost areas. Encouragingly, we continue to see tremendous improvements in teammate retention as a result of our ongoing initiatives, which benefits us from a people cost perspective. We also leverage sales and marketing expenses despite ongoing investments we continue to make in support of long-term growth objectives. We're also proud of the significant investments we're making in our people to support the future growth of our company and establish consistent leadership behaviors across the enterprise. Our talent and development team has designed a program called the CoLab, a three and a half day experience for all people managers. our teammates meet in cross-branded groups for best practice sharing and networking. Servant leadership is the foundation of these sessions, which are designed to help leaders enhance skills for personal development, team development, and business growth. After the initial session, leaders participate in additional guided practice, peer coaching, and ongoing learning. Our efforts here are intended to create a marketplace of cross-brand, cross-functional talent where teammates can seamlessly transfer between brands, divisions, our home office, and field operations. This will further enhance career opportunities for our teammates and create a robust pipeline of future leaders that will not only sustain our growth, but also help us reach our full potential. The CoLab initiative began this summer and will continue well into next year as we put over 2,000 additional people leaders through this development experience. In closing, We're excited about where our business stands today. As we look to close out 2025, we remain well positioned for continued growth, both organically and through acquisitions, and are focused on continuous improvement initiatives to develop our people and enhance profitability throughout our business. I want to thank each of our teammates for their ongoing commitment to their customers. I'll now turn the call over to Ken. Ken? Thanks, Jerry, and good morning, everyone.