ROL - Earnings call transcript Q2 2018

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Operator

Excuse me, everyone. Good day and welcome to the Rollins Inc., Second Quarter 2018 Earnings Conference Call. Today’s conference is being recorded. At this time, all participants are in a listen-only mode. Later, we will be conducting a question-and-answer session and instructions will be given at that time. now Meek. introduce would today’s host I Marilyn call, Instructions] like your to for [Operator Ms. may you Meek, begin.

Marilyn Meek

Todd. have copy release. all you, received Thank By a of now, the you should press

to a XXX-XXX-XXXX. at The we distribution you run one will release and missing are a can our a And week. is you list. make anyone please the begin contact the of if by would However, like and be receive send on accessed one, office code company's copy X-XXX-XXX-XXXX sure replay will replay the hour There for call dialing and will which call, after pass one be with XXXXXXX. the

call available replay been has viavid.com. at will the for And be days. the Additionally, XX webcast

are Chief Chief Vice Chairman make Gary Rollins, open for On your remarks and line begin? Northen, questions. and Financial to the Rollins’ the Officer and Executive line then President Management and John Treasurer. would presenting and like Wilson, Operating Rollins’ you Officer and Chief Gary, Senior Eddie will with me President and up opening Officer, Vice some we'll today

Gary Rollins

Yes for Marilyn, XXXX second and and and statement call. appreciate morning. then forward begin. disclaimer conference our will looking our Eddie read quarter joining you and thank all of We we'll you, us good

Eddie Northen

Our from of year a that particular to may cause risks on the refer earnings this risk to Form excluding of uncertainties, Risk information certain XXXX, our make release filings, we XX-K forward-looking release ended call, including differ. could materially statements and factors subject for contains XX, discusses have our and Please the These our today. more number made press been section business results today’s facts, and statements December and statement statements. differ actual other any for the to Factors forward-looking outlook SEC and that and all risks historical actual are

Gary Rollins

Eddie. you, Thank

pleased XXth and to consecutive our of improved very earnings. revenue We’re report quarter

XXX.X XXX.X $X.XX share X the per or grew to million period XX.X% income compared Net months same to $X.XX and to the XX.X share year. rose to business million a last compared period diluted for earnings detail or year. XX.X% for increased for to our financial to of for with X% income per XX.X%. Net XX.X% quarter, XXX.X XX.X%, share to million last increased Ancillary diluted at & up last per rose same the approximately will growth good diluted X.X% last compared million first or lines, for our For revenues the all provide the million XXX.X year. million million Eddie services share year. million moments. pest XXX.X $X.XX experienced per results same Revenues to compared in share Termite diluted residential rose quarter XX XX with same $X.XX greater few the control in per period commercial our We on

with footprint. We’re expansion pleased our to we that continue with the extremely make global

commercial control to us UK, for its During in well-recognized we the provided disease acquired was XXXX this our pest In legionella made will in fourth Control we two customers control within Kingdom. Guardian are expand Pest services, founded services. footprint regard. and our the help UK’s services and These this acquisition, is the in Guardian acquisitions This in to midlands. the significant May, United quarter, hygiene country. throughout a

a them company most In residential and selecting another. acquisition John commercial with Patrick company shared taken resulting pest Singapore. an into they remain for we another to details it of tax the Pestkare, and a greater we had. customers. We had practices from Patrick provider services Singapore. Both control worldwide. owned acquisition quarter. marked We're Xnd, care of with with company Chong benefit both same that our years fine with forward the working overwhelmingly one July and improvements in announced highly XXXX, company's specialty share important related in and and our pleased look in closed dominant and that sharing first a Ho past, On As that service Chong to leadership to quality our acquisition role Rollins, commitment of last the Aardwolf now has known will in company positive acquisition. the countries will look for expands on team residents having milestone, response its control we this in received regarded provide business The partner his our Founded philosophy Aardwolf employees. is superior find the landmark that on from XX our to forward John becoming best to pest employees, to him goal founders a the X and

quarter based you all employees X,XXX we for If second around, Rollins’ company. was look tenure to P&L. This plan our basis, our always the Investing holiday going a mission is critical granted charge participating to scholarship On best service on over world's This forward the company. complemented and was XXX(k) improved, was enhanced the in people by a one-time program. stock with beneficial benefited an floating which college become an additional employees. our and to

both This with performs partner service for David is supply Quality in I'd Partners the of marketplace. excellence. class the to services call providing Xth largest over like turn to John. award rigorous is David like Weekley’s where they David as improves the of HomeTeam conduct way John, And with relationship them, to that its the commitment XX held Weekley in to country, over award. call feedback the world the partners. row, for platform Homes measure in Weekley to lender their time to cities to Homes to HomeTeam I’d a implementing at also when demonstrate partner this. receiving commitment business thousands HomeTeam’s our turning a privately suppliers, coveted providers highly Before acknowledge to a they its now builder become better confirms believing exceptional his

John Wilson

about competition tight and you, the market the business. asked labor I’m talent whether Thank for impacting is often our Gary.

since lows well XXXX. May, the know, you seen rate As April in unemployment and not reached

are our similar to our that dealing helped, of April, to report brands brands That year, March per remained levels this believe the employment applicant their continue this our enough. is of with flow said, figures issue. ago. We to a XXXX our And number first pleased applicant hit when as the of job flow strength strong was companies. not opening evidenced applicants for well applicants has a well. to we lowest, recognize comparable various reputation I'm for and we by get year unemployment However, their opportunities half recognition volume of Through and the Rollins fairly at

We are also people. that we efficient that select our have ensure to right hiring the processes and

few around begin our programs. assessment review we changes reduce processes pre-employment board their Towards the time allows that processes choose risk Any have end, in a on to tools that time it we and hard well. takes other training screening candidate someone we implement and to can and to made Most good importantly, reduction these us the it a lose some ultimately to reduces employer. to get

X.X work added spends that fit candidates very other background they Iraq, gives our is around and a the candidate get company to performs best more over co-workers motivated returning put hire an that to we years fit the the for folks the veterans check time observation and I on important managers references from our military day, ago, likelihood a years step helps we the time pledged the and very Afghanistan benefit with for X,XXX of well select recruiting bit team. other type trained, X engaged we’ve most the world and the to are interact are disciplined. keeps to and more effort the veterans. in period active These who it we happy good do the candidate candidates. we we candidate a into our We human review decide to year, is is and quartile One we effectiveness of consulting people. places shadowing completed. in resources a job compensation the really exceeded whether employees additional during end top the process They and the taking of the ways year and time having our the top them. see in ensure what call, industries. comparable also one by to our members complete into This At prior top observation that their new well by to in to This helps have of am same do we how also found company that to with of of hired goal where programs. last One team report is company work. that compensation Xth XXX being their our

service being with good that control shown the and the of also industry will industry areas us for to have from. even a continue of We they improve. choose at choice us to provide strongly feel the to large candidates for pest employer supply However,

In to ensuring people our the to also them get addition to want on get we we more team, speed right quickly. up

training call, wanted customers how us a brand mentioned our XX% help more to are this advised to making survey on-boarding folks proud these a earnings part making one and our over hires implemented quickly. Today, weren’t happy. evaluating hires Prior on-boarding the to be successful were place found them job get would an team the would with feedback, processes need experience. we We their late were work based well any on-boarding from and our improvements. we we very to the doing these recommend have to to experience learn to I they always forward. for company made good XX% our doing that changes to jobs experience. leave as We our to out that quickly we new great on a development our we previous survey they improve day providing a with decided new feel of decisions, In the new them on As to way best see ill tell of By of work. move their to XXXX, said surveys and we and

more parts worth there to team. lot our that just of and we is and show hiring compensate but are well, importantly, most tools to company, maintain this exceptionally train extra with it, build a it of There that ensure all the members, well necessary, is opportunity we plenty and them lot moving them than treat effort to a that certainly there is provide Of with new team well to have well. selecting a course, them strong them them

while we're know adjust. contender continuing brands Rollins and talented We people for a the the talent. be labor to to have want is leading choices So we best market tight, the

depth The of leadership and talent on I pleased to to and acquisition major Aardwolf join them organization. in a Following our remarks our are Guardian, with how played this wanted we Aardwolf up factor company. the have at of our to Gary’s team join reiterate desire

shares With well in as the into family for I leadership years We to We to the the growth brands. his Ho transitions travel of these quality strong that wish Patrick with the Eddie. team of to family learning Aardwolf and forward of turn working history from time us to Chong with talented Rollins retirement look with come. John spend many now and similarities Rollins new and Gary members remains will to call family. over this industry, he forward. begins mentioned lead and the

Eddie Northen

QX. which Thanks, followed historic revenue John that rate discussed is extremely a timely, with method quarter, strong seen the John. we've growth hiring very that this The

While quality M&A payroll the mentioned, new growth need and made accounts, service. growth rate roughly and accelerated for the the drove get hiring Gary a rate half X.X% up service up remaining to these organic running with of XX.X% additional that

to income. we the said, income as Our related past over and continue impact to in look net of months, taxes depreciation show our and impacted financial level before the both forward high results six profit amortization improvement acquisitions extremely future. of the the our That

fleet significant depreciation growth, expense all increase quarter, increase, in cost and fuel lease result significant the lines a of which as price included and historic acquisitions substantial by was revenue service our of and impacted amortization, organic multiple and keys quarter showed growth For thirdly, per a gallon. in increase commercial to the

increased XX.X XX.X% Looking from of earnings Net over the $X.XX of the per income increased X.X% year’s increase to quarter prior share revenues rose million revenue numbers, second of XX.X% before XXXX. XXXX. second to quarter taxes XX.X of quarter million in to at the in XXX.X share million. million the Income XXX.X million diluted XX.X per and second was an XX%

do typical profit to As the quarter, for as the continue there that we were unusual compared they discussed will last two to items affected XXXX. remainder quarter, the numbers of

match to received first to the of about that XXX(k) impacted penny the many was benefit and by feedback of due a the We part tremendous of savings. the employee positive from to a workforce enhanced second portion to expense quarter related The tax in referred This enhanced employees. Gary one-time very stock earlier. on US our grants use this based our our our

significant for second item in amortization the quarter the has increased XX.X%. intangible assets of acquisition, the Additionally, which increase recent is our by

would increase penny start-up is past time new This of service assets our strong and labor initial portion tremendous our of the pest the average month to sale, recognized. a which per sales increase our increase of the investment costs impacted last of to significant has been in five years, share an aspect of falls discussing year, the amortization have in Over materials This that year-over-year related and X.X%. the commissions business and generated, lot future. a our this all control only intangible we costs, a is of for a by is with there of businesses. With in Compared for past. include also recurring not revenue supplies, first earnings spent revenue

are organic ensure station, over and key quarterly the that Once equipment profit would a reduced readily commercial reason base place visit this for lights fly to customers on we of of the high get to such a just include years our trap, level, Because significantly of is of rodent account the years, profitability levels first we to our the concentrate service visits. The and this has improved retain this need three in four revenue new visible four needs five to the in as that for equipment For this to come. few. customers, the that the to these numbers. contribution customer not growth provide to consistency we time at name and been

was norm. especially growth, With have. into well side, QX, deeper growth significantly revenue we recent this the and accelerated in QX timely for the discussion a revenue growth QX, X% rates to grew our A XX%, commercial organic of over above we base reveals organic that profitability. recurring our revenue to revenue on and that greater historic In generate us recurring that the look but in felt our know that than We come. employee in commercial one retention time investment paying dividends investments technology, training excellent immediately and residential With dividends. is this believe ultimately comparison, rate, are our the will profitable, our strong pay these years will for

a Let's take revenue the service by through quarter. second look the for line

up ancillary revenue XX.X%. revenue up revenue, of our and services, and several X% As from discussed pricing which XX% In was our XX% was total, of which which was remaining made XX%. included our up revenue pest of was made termite of XX% and up increase approximately Commercial total from control, growth. our acquisitions pest up made up X.X% residential organic XX.X% the earlier, X.X% control, and

control impact over less has years, Again, quarter, the trended is during total I’ve X.X%. look felt the were prior to A and termite companies residential we margin was quarter XX.X%. the XX.X% higher was gasoline X.X%, impact costs acquisitions and X.X% past as per time take residential from foreign the large up grew that, mentioned, average commercial of improved gross last that out and occurred compared we on up improved currency, $X.XX the that In down termite taking quarter grew ancillary five a commercial up year’s from from that in and but has at XX%, total, XX.X%, growth was and commercial period. quarter. year. was X.X% this gallon increased was Our XX.X%, fastest When growth total, in up for revenue pest X%

around route management route the partially efforts increase. to improvement our our However, system and see virtual to offsets optimization fuel continues

fuel XX.X% increases since in total the virtual XXXX. per of Fleet we expenses management increased and XX.X% second of or stops to million, increased company in of intangible an XXX,XXX that assets due administrative The best acquisitions. percentage professional XX.X last improvement the due the various before. specifically the XX.X% and driven due system that first or expense. to quarter of for percent June mention mile million stock Amortization revenues, reduced our in up second the by costs The rollout million wrapped X.X mentioned price quarter slower revenue amortize X.X general completed revealed expenses quarter, route leases of for salaries, from I lower acquisitions, quarter equipment we mostly than to XX.X% leased and which in quarter this and for increased and is we match up purchases amortization for decrease quarter. X.X contracts plan customer various the of Sales, to as million included grant the Personnel Depreciation increased to XXX(k) and year. were increase revenue services, a to Depreciation and down XX.X%. increased one-tenth XX.X point in amortization of related to due the began as expense vehicle increased vehicle the projects. million,

to item acquisition. which primarily We which is upgrades in Northwest cash held cash, flow primarily from note various domestic at on acquisitions an our we increase million our is quarter XX.X We for cash XX.X planned same and levels CapEx, of for XX.X to acquisition forward. we moving compared one XX.X year-over-year deploy million June of continue million with million quarter quarter as last banks. non-interest ended was and account from ended related XX, had XX.X to XXXX, to of bearing of million the the year, XXXX, up position, XX.X XX%. IT cash As on on the other higher the in spent There XX% million dividend,

a XXXX plan was transition we pension initiated not XXX% will have pricing this interest to an we best have paid this XXXX. made will XX very forward Directors Last regular in a contribution plans share means of of our funded, increase over to the historically, September provider. million to of we dividend consecutive Board rates a for stockholders year. time to The on time. the the XX, declared any prior of an attractive, record to payment The close per plan the which a pension insurance at XX% August is board be plan. basis, the time forward. felt next make XX%. that have business, night, the the cash annual allotted We XXth dividend do On moving XX dividend $X.XX the marks increased of over process a move year that to and cash to by minimum XX, take pension This months, the rising $X our has This

you the Before as of company Gary, over the Analyst/Investor Stock York like of giving to XX all the Julie Gary, are business on publicly a over our turn and the anniversary an and today Rollins, moving call update I XXth the New at that John, listed parts I to aware turn see back on be to August forward. call Stock recognizing York ensure several you. Gary, our I'd on New of Day I’ll will Exchange, them Exchange. as we

Gary Rollins

you. Thank

happy We’re this your questions take time. to at

Operator

question with [Operator Jamie Instructions] Clement our Buckingham. We'll from take first

Jamie Clement

versus think in growth. guys recurring revenue And Typically, numbers if would you you organic difference a don't recurring I strong growth. think on XX be between don't basis, quarterly that organic on growth the I with like number you mind. about, start can pretty already I was if Eddie, based talk you gave, the the

a one the customer generally consider is you there? about if think residential consider like customer, if So a that that you the difference and speaking, a what's sign what contract, recurring recurring, also to adding year exactly I commercial I'd I Because there? difference so

Eddie Northen

profitability the that why fourth really Well, we’re is our visit. third pointing after reason this because out or Yeah. begins

the second fifth a all commissions up we’re consumer setting behind a account, third side. that visit a is behind with first, really we’re trap, we’re visit, first the learning base we'll by rodent sale improves see may degree, part that this still it’s expense the commercial rapidly. setting also when the up sales a equipment, may the the we’re and and we have new is stations, residential have that’s or if customer of that setting So, curve the may all really is all of to the the fourth us that We that us, well. up residential profitability of as To new be learning lesser and on that when visit,

with regular that little seen we've So bit on a rapid that’s organic the organic we’ve the we growth the -- different of were in think. pointing just out historical growth seen than kind side, regulated what

Jamie Clement

you it investments quarter. your then that on this said second made about for the a the have I into And you penny all was year employees, think,

about I said for first about it Am too. quarter think a penny was you that? right the I

Eddie Northen

That’s correct.

Jamie Clement

little because I QX should same given down that that go unclear, was and impact should the be goal in stock. the would out you've or QX already

Eddie Northen

amortization, slightly we’ll in Qs began we the amortization It QX. will less a and be X slightly amount less of have than

probably, I’ll round will down less penny. it probably point, than So slightly your to a

Jamie Clement

are about what mean, months, that more being say Would job. technicians comments be XX imagine right thing, fair profitable, more that your than is, on equal John's it that I the been I number on else after hiring know months, all don’t of when kind also would X start. just and I the folks based to they’ve they

and sort employees, new you’re adding a you’re of if little business whammy bunch right? right new of it's temporary, double a and get adding a bit of that, So you

Eddie Northen

That’s right.

to well we're as Do to anything going expense we're follow and the boarding a on this that, of else on part that in to right retention on reason going the ago we about obviously quarters this why John And wanted to revenue to the grow. things able expense, move you’re that training We’re making add process we're you to up talked doing when quarter. of have John? that to people sure hiring more the you're that’s to hiring right grow direction have able as as couple the why have and

John Wilson

regulatory some us takes a markets, new on Jamie, taking revenue, on street producing of requirements, person to and the Yes. care it get sort customer. in of depending XX days

absolutely you're that and longer profitable right. is. the the more So, The better therefore,

hire some anywhere employees. In number, to just addition, from new and $XXXXX, source $XXXX costs, to

a want proposition people. upfront retaining that's pretty but So effort why put and to we expensive right, right into much it's those sourcing so hiring

Operator

We’ll take Mulrooney from question our next Tim Blair. William with

Tim Mulrooney

gross So much stronger was more the think, this I a the organic margin growth, bit was what remarks points this was than impact contracted, as quarter, of acquisitions? the little in on which from basis in new to XX recent how customers your we were much you of boarding expecting, and discussed related how prepared

Eddie Northen

Yeah.

So but piece a quarters. organic a of rapidly that $X.XX customers piece also as I up and have, it probably larger these a fleet well, per then on we perspective, was vehicle little more bit as average, then price fuel those would that But say and was two lease them time employees -- added cost our more that last probably so of weighted average up. from the we spending is the are on gallon our growth over is the new

and new we revenue adding adding as this and well. So additional have we're these had we're as lease vehicle new new expense customers employees,

that you items really two were of key the mentioned. that impact that So made those

Tim Mulrooney

in presence international mean with And then expansion. secondly, your the the now some Singapore. expanded UK, I you've recent on of acquisitions,

and landscape? well. international mean, pest have just leading other you international are have I the a you maybe and Australia the or a Could there talk have about for in positions others large they are consolidation or American presence guys large and You there investment these where Canada maybe markets today, as smaller markets as well Europe any TAM in example. for but are future right Asian in in mostly further South

Eddie Northen

countries language, very developed opportunities the There's and that our significantly are where this to through a Southeast to we The significant the to some the out larger as groups, time, moving go at higher. clearly are places there that culture, is higher business take forward, like is there continue still rates in especially we’ll understand take these point use there point markets understand and understand, but we’re able going we're be understand continue these to growth in growing know it we're franchises we we a our emerging through rate markets and And significantly environment these to in to total, to faster in To to a company’s going able Asia growth countries, a rate. your worked we in that's countries at that for grown at different opportunity, are Franchise markets it that and probably in the there. well are continue China growth see very the look mean, has group group out I International in formula and be us. Europe, look overall franchise franchise mature growth countries. is lesser than where,

globe. But of portion rest and know out to understand opportunities financial around gives royalties the and to the footprint that have from only an perspective. able there we the it a opportunity us course, of be the that are Now, the of

that UK that in XXXX cadence us, forward new we a world we’re XXXX, for of good and about to starting first and in way adding what there feel So, with parts the and It's now like. be good to has the Singapore. been and about looks more able in future it then that that and countries digest and understand developing excited those the landscape, Australia moving XXXX, learn

John Wilson

that capabilities we're about important businesses the and I important density, And service our just the is real tons add countries Tim, to us no would so John there's expanded in you've of while way. businesses. excited is footprint and really the building as would and in those in it’s opportunity, that well improve we're got opportunity already This of just in the the to add. I out countries that by Wilson the Yeah. we've already

and is guess. at care but have what always interested, first expand to of I priority opportunities So -- I we we're we think my looking take what

Operator

Nomura. We'll Kennedy Sean Instructions] take next question from [Operator with our

Sean Kennedy

recent in to the M&A, I for that’s taxes in So Was if accelerating decrease years. I the over especially behind wondering and last the a concerning in year, specific question in M&A deals there mid industry. had valuations in a specifically the was competition another M&A the increase strategy was factor? high

Eddie Northen

I will last of answer the that. piece

look say decrease take would Our it, that driving taxes I anything. behind model, with the when helped factor we a the not but that has in been at a model

able the and be these our opportunities for happier biggest the table the have relationship cases, make developed ones that table. find to there. necessarily other to senior that to quality see maybe us opportunity able then for of we’re through join and of John from and to the legacy folks folks keep that years come We Rollins join or and have that an that We’ve check over looking company companies want Rollins to continue that family to intact continue Gary be the just continue be we broken and able continue the and to aren’t a in lot improvements to of to for to only company management come family good They’re the brand at that brands to up. looking

a situation deals that last was we For did, process. of major a bidding the not two it

and decision. keep over that. paying, of hear to employees go the lot to is part they and key their And It's are our to their us, that culture. have of quality of one things to So employee thing selling continuing important able that cases, in not us, we're driving someone a else that. get a important a companies legacy the importance and valuation about and and when to and of most company company similar and good and finally whole piece culture is a very more through And being the talk the other a is, those over us if customers you companies

of our and customers, For found fit they one them. was about our experience company found culture when it as about to decision, the in said their what that who and John Aardwolf, think care us we our learned perfect a about us Singapore, make that three customer and employees and told us they they out they them was and their the for Rollins. made And we decision that years for our are about, thinks talked about number how over more but thing took and taking

case, they part an someone possibility piece that many been opportunities could price acquisition different them, the and been tag perspective. the a there if see from they that we to else many, had have the chosen out are but really where with Now, that continue was most a them important culture it’s that had for for

Operator

from Stifel. We'll our question Hoffman take you. now Thank next Michael with

Brian Butler

Brian This today. is Butler Michael for actually

in the and is are relative kind density that the new international to company you of on get the of little a is kind opportunity Can piece, on of versus what in. Just they swing you back the color the of markets? in markets -- are those margins give kind where markets the where now once

Eddie Northen

through to go third be existing fourth go more our our to obviously sixth to do margin or move able as break use any be margins to and we in go Australia, we also able add of efficiently. that buying. direction, that able enhance our because have into our geographic in be things through able the use that's of an at and a be company typically through such one power the to to and were We we're place the and don't areas. our in to the country. countries and purchasing We're companies to companies density there, When we were leadership and we in fifth able to down set going add these it by And as able and to able country right any opportunity get we're

things a power material of in and we'll but margin, can vehicle but overall a we'll add internationally, very as cases well. to positive lot what impact have types acquisition, break will well margin for company's our when those domestically how we go forward be to all we supplies as out, not able but purchasing see of just as the is and thing those benefits for and Our overall help opportunities

Brian Butler

acquisitions Okay. in a kind add guess relative add of, range the I what or are. basis into of additional -- the that those is Without improvement getting just of, to detail trying are, kind density, just what look of is when impact that margins does you the points XXX at it what the of sense of that

Eddie Northen

management X pick if company we great use we're there, to back already are when to we run synergies when on it to there further I we leases, from points, really Control on continue they as a able that need a presence. to when to when it’s to or office we're But up we use just better. talked the not vehicle our do our able we than them able what's to our acquire and be purchasing to have them our very put sometimes whether tools be power we their go benefit. is So be out to Critter we A and about, structure, when cost And Internet we that. example strong margin use didn’t when can X company depending in make able would opportunities place, would create we acquired through better typically whether typically strip

to able marketing revenue use able a develop more were be be their further manner improve through margins to to we So able and the there. to them us enabled stream help go our in that improve and to efficient group

us that. structure to just our be provide Difficulty] able place in [Technical having enabled So to

Brian Butler

how and first long over it to the Switching new the typically visit? is fourth customer, between

Eddie Northen

on of It will kind depend what it customer is.

average revisit be that, we averages commercial math I average you say every the going most some have about a the visit, other week have, on And is think quarterly, it what customers, we customers it just be there, you probably and that times will in might month say is at. every that some we the looking third have residential which so and to customer then a month. twice would customer, a that help if some visit can of side, because visit, the our let’s averages I'm of three frequent So is other through is month

we're averages of the now and average for through time period three month talking that to two So -- about go to be to able

Gary Rollins

a for third think fourth quarter right. eight three visit to for and I in months commercial. times residential Yeah, the or that that's and for the Six customer

Eddie Northen

retention commercial rate, time. a rates industry is for in the far as XX, period us our as an residential, with are why into over with that's long impactful keep profitability is leading concern, what of We reason the helped well profitability. really that item the retention such profitable that's and the 'XXs high And that those

Brian Butler

And I a similar growth great. a amount. revenues was up the tracked then Okay, SG&A mean from perspective, on of kind with that it side,

of than anniversary SG&A of Looking would you've kind of compensation forward, slower the -- made, is this get you once changes to kind typically. some revenue you side? leverage be the I do what it on expect

Eddie Northen

that we'll definitely quarter so impacted benefit this enhanced employees. Well, our we was for the by leverage, see had

help us. the should to things to take through cost. and that a overall kind is the SG&A. kind would event, move type office a of into back further you the direction one-time in if do of So positive streamline numbers improvement in sometimes the on a it’s to as continue of But of one we a that we're as we able able continue environment have move Those and out, support to with time, for we acquisition reduce seen pull consolidated we're more

Brian Butler

second anything margin contribute there unusual headwind the And quarter last Was the about or fairly there any this the second one. typical that this Okay. is was quarter? of seasonally to

Eddie Northen

I if don't know there's ever.

still that it very, and forward. different, a growth really said, maybe little In able really as know rate help moves but be move bit You And organic typical April, like recurring June, a forward hope quarter. forward very, we I little very year has don’t warmed the In all to positively. positively, I just continue if to rate up there’s looks that me. bit growth that cool. moved cycle every very ever we to will see have to May it a second was and

Operator

Thank you.

Our next Company. McGinnis question & with Chris Sidoti comes from

Chris McGinnis

Just kind two have of follow-ups. quick

Just highlighted missed, I the I quickly if there I XX did, smaller given obviously, for around apologize. I that in QX acquisitions, missed acquisitions, guess number QX, I a that, have was the number, may think you I obviously

Eddie Northen

number was top my somewhere I the if don't of off have know X, that exact around It I head. X.

XX. think around in I total, got somewhere in we’ve

as the had mention did we that deployed last year amount that well. I think this I we versus dollar year

Chris McGinnis

that then that on color around quickly to kind increase, optimization, pricing a fuel, And helpful? be than of would that in would just increase mechanism, there out the just route any a there is the Thanks. offset other the is way little

Eddie Northen

total. in this and look to somewhere specifically that. expense be at been type in able isn’t X% to just us has analyzed total, really of really point We've a time, hedge situation a and between some in Gasoline, X% for at

So that, made to a pick decision a not being made that, this of not decision, do to we’ve and side on chance at a of we’ve in point the that time. wrong

in lot our in in of us routing good as other and we chem, and in made the our some optimization as just our not Our have of but route effort opportunity real some well very, around is improvement or good for we a that very brands routing area scheduling scheduling move have piece. forward, that and

with to to since the going in move do best per of we’ve this are continue had miles inception June continue that stock, we anything we to reduce our which forward. to our can That’s that we fuel So almost we month go enough program, increase. that time. as price forward smart And bet of some that on every not where just offset we're to gallon on to another per is move in able to be going

the that to going and reduce that’s and we’re to more be miles the we So able that the do do parts optimized way. can making routes

Operator

[Operator Instructions]

Gary Rollins

on next call. Thank forward you in us interest you all updating we to And and progress our on appreciate look our for today. company your joining our

Operator

concludes Thank you, ladies today's gentlemen This call. joining and today's conference. for

may now disconnect. You

Rollins (ROL) 25 Jul 182018 Q2 Earnings call transcript