Terminix Global Holdings, Inc.

and CXP are the current issues that will impact each of these four pillars in meaningful ways as we roll them out over the next several quarters. First and foremost, we must enhance our teammate experience. Our teammates are the most important asset of our business, and our work to enhance the tools and training they use in over 50,000 customer touchpoints per day forms the basis of DetermineX Way. We have found that our best technicians deliver excellent service and share their expertise effectively with customers to drive deeper customer penetration. We have pockets of excellence in these key capabilities across our business, and bringing that talent together to develop improved standards to drive operational excellence is the first step to determine the next wave. To that end, we have built a team that is focused on this initiative from our own ranks. The assembled team has over 120 years of test and term line experience, over 100 of those years which came while working at Terminix. This team understands what it takes to deliver a superior customer experience and will build a century of combined learning into enhanced playbooks for all positions in the company, from route technicians to branch managers. Ultimately, standards are only as good as our ability to train to those standards, and this team will lead the rollout of an improved training curriculum through a new Terminex University platform. Terminex University is all about preparing teammates to succeed in their current role while developing their skills for future jobs as they develop in their careers. While our efforts are in the early stages, and there is clearly a lot of work that remains over the rest of 2021 and into 2022, we are confident that the Terminex wave will improve teammate performance, engagement, and ultimately satisfaction. As expected, given the current state of the labor markets, we did see an increase in turnover year over year. While we remain ahead of 2019 turnover rates, we clearly have work to do to become the employer of choice in the industry. We believe enhancing playbooks and training support in Terminix University in conjunction with more clearly defined teammate growth plans, this will improve our value proposition for prospective teammates and help us become a desired place to build a career. We also remain keenly focused on improving our customer acquisition and penetration capabilities in order to drive better organic growth. Our focus remains on improving our digital marketing capabilities. We are making progress on local search optimization, which will be accelerated by a new and enhanced website experience. Winning the local search experience so we are relevant when prospective customers are searching for pest management is a priority and a key to growing our customer base. These areas take time to develop, but I'm confident we are on the right track. While we make strides in digital, it is imperative we leverage our brand strength and pest expertise to do a better job of penetrating our existing customers, both with core pest and termite offerings and with adjacent products like mosquito and wildlife exclusion. As a part of the Terminex way, we are developing a robust technician cross-selling playbook, enhancing our abilities to grow the business by maximizing the selling potential of all of our technicians. CXP is instrumental to enabling our technicians with this capability. CXP will provide the competence needed to share our expertise with the customer by guiding technicians through a robust service inspection process designed to identify additional ways we can protect homes and businesses. A seamless process to diagnose potential problems before they occur will unlock additional sales opportunities and allow us to reinforce our pest expertise and deepen our relationships with our customer base. While technicians are performing these inspections today, enhanced technology will create consistent and improved selling performance across all of our teammates. As we mentioned last quarter, we recently rolled out our commercial customer sales management tool to our commercial sales teams. We have been pleased by the visibility gained in this area. While it's still early, the team is energized, and we are happy to have this portion of CXP now in flight. The broader CRM rollout of CXP remains on track for late in the year as we get past the peak pest season. The other avenue of growth is customer retention. We continue to make progress in this area, delivering trailing 12-month retention improvements in residential pest management and termite in the quarter. We also saw improvement in our local commercial accounts, with cancel rates improving 23% in the quarter over the heavily COVID-impacted prior year comparison. Retention improvements will accelerate with both DXP and DetermineX Way. The Terminex way will standardize service delivery by improving our ability to meet the needs of all of our customers, from residential customers to our most sophisticated commercial customers in verticals with the highest quality standards. Improved customer satisfaction will ultimately drive retention gains. CXP will give our technicians the tools they need to deliver a consistent experience with automated checklists that will guide technicians through the non-negotiables of every service we deliver. This week, we have over 50 teammates in Memphis to go through a simulation of the process flow of a CXP platform. This important step in the process will allow us to gather real-life feedback from end users that will be incorporated as we finalize the platform design. Similar to the rollout of commercial customer sales management last quarter, we were able to deliver additional enhancements to our teammates this quarter. We recently enhanced our commercial quality assurance program by extending the case management elements of the CXP platform to branch management throughout the country. The addition of over 1,000 users will allow us to move away from managing client service concerns through spreadsheets and emails to an automated dashboard that provides immediate visibility from local branch management to executive leadership that will streamline and coordinate our customer response resolution efforts going forward. This process will provide real-time operational insights to ensure we are exceeding our customers' expectations. And finally, all these priorities are designed to improve our profitability and expand our profit margins. In the quarter, we saw strong productivity in both fleet management and chemical costs as we had lower vehicle maintenance expenses and improved chemical costs through the purchasing power of our product sales division. This productivity was offset with higher labor year-over-year, partially due to revenue mix. As we have been expecting, turnover is elevated compared to 2020 as the labor markets improve and competition for labor increases. As mentioned earlier, our people are a vital part of our business, and making strides to improve the Terminex team-made value proposition through better tools, training, and technology will help us continue to improve our turnover rates in the future. We have also seen strong productivity gains in our international businesses with margins up in Canada and the UK as we move past the impact of the pandemic as well as UK integration efforts in the prior year. We are encouraged by opportunities we see internationally in both growth and margin expansion and are investing in systems and growth in areas where we already have a significant presence. Termite damage claims are slightly behind our expectations at this point in the year, driven by higher costs per non-litigated claim due in part to elevated costs for building materials and contractor labor. Despite a cost per claim increase in non-litigated claims, we are encouraged by the continuing downward trends we are seeing in the Mobile Bay area in the second quarter, with new non-litigated claim counts down 24% year-over-year and outstanding non-litigated claim counts down 38%. We didn't see elevated litigated cases this quarter, but the cost per case continues to decrease as the cases are coming on lower-value properties. As we have always said, timing of litigated cases is difficult to predict quarter to quarter, but with the value of the cases continuing to decline, we remain encouraged we are on the right track. Outstanding litigated case counts in Mobile Bay were down 24% and cost per outstanding case in Mobile Bay and the rest of the country was down year over year by 8% and over 30% respectively. As we have seen from the progress we are making in Mobile Bay, I'm confident as we scale best practices and incorporate them into the Terminix Way playbooks nationwide, we can reduce our damage claims expenses to historical norms and beyond over time. Overall, we made progress in Q2 executing on our priorities. We will continue to take steps on the Terminix Way and CXP over the course of the year, And despite some of the headwinds we will face with strong industry competition, we are in position to continue to drive consistency across the business that will accelerate growth, expand our margins, and ultimately create value for our shareholders. I'm energized by the opportunity we have with this team and excited to deliver on our commitments. And with that, I will turn it over to Bob to discuss the financial specifics of the quarter. I will return with some closing thoughts in a few moments.

Thanks, Brett. Let's start with a detailed review of our top line performance. Overall, we delivered revenue growth of $26 million, primarily driven by $19 million of organic growth, or 4%. Beginning with the termite home services column on the left side of slide six, reported revenue decreased by $3 million, or 2%, in the quarter. Breaking down the components of growth further, Termite and home services completions were up 1% in the quarter, with core termite completions down 1%, and home services completions up 3% year-over-year. Core termite completions made up 59% of the $113 million completion revenue in the quarter. Termite completions were impacted by lapping 14% growth in completions in the second quarter of 2020, as we saw strong growth from the introduction of our monthly pay products. Termite completions were also impacted by staffing challenges in our outside sales professionals as the labor market has impacted hiring rates and turnover in this very competitive labor pool. As Brent mentioned, we are making strides in our digital marketing and cross-selling capabilities that will improve growth in future quarters. Termite renewals were down 5%, driven by approximately $5 million in headwinds from a change in revenue recognition for our monthly pay products. Adjusting for the revenue recognition change, termite renewals would have been up by 1%, and total termite growth would have also been up 1% in the quarter. For the full year, we remain on track for unadjusted growth in termite, despite lapping strong completion growth and the impact of our monthly pay product moving into the renewal period. Residential pests grew 5% in the second quarter, with organic revenue growth of 4%. We continue to see benefits executing our pricing strategy as well as improvements in customer retention. Growth in residential PEST was negatively impacted by lower than expected summer sales to the lower staffing at our sales partners driven by the competitive labor market. Revenue growth was strong in the second quarter, but we continue to monitor increased cancellations year over year by an uptick in customer moves in this historically strong housing market, and we are tracking labor staffing difficulties and door-to-door salespeople at our sales partner that may impact future periods. Commercial pests, which now includes our European pest businesses, grew 14 percent, including 10 percent organically. On a constant currency basis, the service line grew 7 percent in the quarter. The benefit from foreign exchange translated to less than 1% of the total organic growth of the company in the quarter. Growth in commercial tests was highlighted by double-digit growth internationally and continued sequential improvement in the U.S. market. Looking to the back half of the year, we expect growth to moderate to more normalized levels as the severe prior year impact of the pandemic lessens. In the other revenue line, product sales were up about 8% organically over the prior year as we lapped the impact of COVID. Overall, the second quarter saw a strong rebound in the commercial business and consistency in residential pests, while termite was impacted by the timing of revenue recognition. Normalized for currency impacts and termite revenue recognition, organic growth would have been approximately 4%. With advancement in digital marketing capabilities as well as progress on the Terminex Way and CXP, we are confident we can continue to make meaningful progress towards sustainable organic growth rates in the mid-single digits. Turning to slide seven, you can see the financial summary and the detail on adjusted EBITDA drivers for the quarter. On the P&L at the top left of the page, you can see the $26 million or 5% revenue growth we covered on the previous slide leads to a $4 million or 3% increase in adjusted EBITDA. Adjusted EBITDA growth and lower interest expense after the debt pay down from the sales service master brands drove a $13 million or 24% increase in adjusted net income. And finally, the net income increase and continued aggressive share repurchases in the quarter led to an 11 cent or 28% improvement in adjusted EPS to 51 cents per share. Across the bottom of the slide, you can see the adjusted EBITDA drivers for the quarter. Revenue growth added $13 million of adjusted EBITDA in the quarter. Labor increased $16 million in the quarter, primarily driven by higher turnover year over year from the competitive labor markets, as well as a revenue mix shift towards commercial pests. As we discussed last quarter, we expect these headwinds are likely to continue as we lap historic improvements in turnover in 2020 that were partially aided by impacts from COVID-19. Direct cost productivity and fleet management and chemical purchasing generated $4 million of prior adjusted EBITDA. Key investments in Terminex Way and CXP were approximately $2 million in the second quarter. These costs are timing related and are offset in the full year by favorability we saw in the back office in the first quarter. Sales and marketing costs are up from prior year by about $3 million. As discussed earlier, we are investing in digital marketing capabilities to improve lead generation while maintaining total marketing spend as a percent of revenue roughly flat. Increases in sales commissions are largely driven by increases in commercial revenue and the impact of prior year sales growth of the monthly paid termite product. Termite damage claims expense increased $1 million in the quarter, with increases in non-litigated costs per claim from inflationary pressures partially offset by lower litigated costs and approximately $2 million from lower mitigation expense than the prior year. Total termite damage claims expense was $20 million in the second quarter, about $13 million over the baseline of 4% of termite revenue. As Brett mentioned, termite revenue claims expense came in higher than expected due in part to inflationary pressures on cost per non-litigated claim and an uptick in new litigated cases in the quarter. While it remains difficult to predict case counts on a quarter-to-quarter basis, we remain confident we are taking the right steps. Best practices for Mobile Bay are being incorporated into the Terminix way, and we will continue our progress in termite damage claims as these near-term pressures are resolved. In total, adjusted EBITDA margins of 22% contracted 40 basis points year-over-year. However, it is important to remember that we are absorbing approximately $5 million in both revenue and adjusted EBITDA in the period from the timing impact of revenue recognition and termite renewals. When adjusted for this impact, margins would have been 22.7% and expanded by approximately 30 basis points. As we will touch in on the outlook in a few slides, we remain largely on track with our full year adjusted EBITDA and margin outlook and are still targeting full year margin expansion to approximately 19% annually. Turning to slide eight, you'll see the cash flow summary for the quarter. Working capital has been a use of cash year to date and is expected to be a use for the full year as we unwind payroll tax deferrals from 2020 work through the termite damage claims reserves we have on the balance sheet, and absorb the cash flow impact from our move to the monthly paid termite product. CapEx remains on track for between $30 and $40 million for the full year. Year-to-date free cash flow conversion of 65% was in line with expectations, and we remain on track for conversion in the mid to high 50% range for the full year. Shifting the uses of cash, we have completed $45 million worth of M&A and remain active with small tuck-in deals in the pipeline. We made scheduled debt payments on lease vehicles and completed the deferred payment obligation on the 2018 CopaSan acquisition in Q2. And finally, the primary use of cash so far this year has been through the Share Repurchase Program. Under the program, we have purchased $350 million worth of shares this year. Including purchases from last year, we have approximately $43 million left in the existing $400 million authorization. Our capital allocation priorities remain unchanged. With our leverage at the very manageable level, we are targeting accretive M&A and believe we have additional capacity to continue to return cash to shareholders. We ended the quarter with $313 million in cash and $691 million in available liquidity with a net debt leverage ratio of 1.5 times. This cash position and balance sheet flexibility allows us ample ability to invest in long-term growth through the Terminix way, the CXP implementation, and accretive M&A as we progress towards our longer-term leverage target of about 2.5 times. Moving to 2021 outlook on slide nine, our guidance remains unchanged as we remain firmly on track with our plans for the year. We expect full year revenue between $2 billion, $25 million, and $2 billion, $50 million, with organic revenue growth between 3% and 4%. Residential pest is expected to grow with strong pricing realization and improved retention. Commercial pest is expected to moderate slightly from the strong growth in the second quarter as the prior year impacts of COVID subside. Termites and home services are expected to grow as we absorb an approximately $2 million impact in the third quarter from the change in the timing of revenue recognition in our new monthly subscription-based termite offering. Adjusted EBITDA is expected between $380 and $390 million, with margin between 18.8 and 19%. Organic revenue growth is expected to contribute approximately 30% incrementally. We expect to see headwinds in labor expenses, job markets open up, and plan to make investments in sales and marketing, as well as the key operational initiatives of Terminex Way and CXP that will drive future growth and consistency in our business model. We remain encouraged by what we've seen as we make progress on improving the fundamental operations of the business. We are confident investments in standardized playbooks, training, tools, and technology in the back half of 2021 are going to be key enablers of profitable growth in our business and are excited for the hard work ahead of us to deliver these capabilities to our dedicated teammates serving our customers every day. And with that, I will turn it back over to Brett for some closing comments.

Thanks, Bob. In closing, I'm excited to have the full team on board and aligned behind the same business priorities and strategic initiatives. I am proud of how the team has come together over the last few quarters and I'm encouraged with our progress and direction. We are committed to making the investments necessary in the Terminex way to improve our teammate value proposition by improving the standards, developing the training, and enhancing the tools needed to deliver a consistent customer experience from branch to branch, teammate to teammate, and customer to customer. Overlaying improved sales and service quality from the Terminix way with the CXP technology platform will create a seamless and easy inspection process for technicians who will be able to more effectively share our trusted expertise and offer additional solutions to our customers' problems. These investments are critical to returning to industry-level growth and profitability and ultimately bridging the gap to our competitors in the marketplace. Digital marketing capabilities and a refreshed e-commerce platform are also on track and will deliver a frictionless experience when customers find us and buy from us on the web. CXP and Terminix Way are the initiatives that will drive progress on our priorities to improve the team-made experience, enhance customer acquisition and penetration, improve customer retention, and expand profit margins. I am proud of the work we have already done and believe we are on the right track to deliver considerable shareholder value as we progress towards our goal to become the best-in-class pest management provider. And with that, I will hand it over to Jesse to lead us through the Q&A. Thanks, Brett.