ROL - Earnings call transcript Q1 2019

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Operator

Good day, and welcome to the Rollins Incorporated First Quarter 2019 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. [Operator Instructions] I would now like to introduce your host for today's call, Marilyn Meek. Ms. begin. may you Meek,

Marilyn Meek

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

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

Additionally, webcast days. replay call www.viavid.com XX will and the a is being for be available at

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

Gary Rollins

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

Eddie Northen

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

Gary Rollins

Eddie. you, Thank

you demand our our quarter most leads season. a As transitional pest is first higher that quarter know of into

to what unkind, nature year say But over Although, decades. on weather it country prefer increase some of the however. polar with sometimes earlier, pest be that much it's the We trained we and around have parts confirmed is this activity temperatures our particularly the phone seasonal it's about that talk as we measured it staff was business, But and this earlier and sales spring referred vortex later. April in some unleashing comes This early of significantly. we lead here, rarely increasing mother arriving comes always always to coldest sometimes the as news meet good pest delivering higher digital March to impact activity. of and two is The comes begin service by to and to added can will demand flow. and already spring the demand.

important result Although, our we customers. employees several many the we were our with coldest past had the successes. first previous were and years that investments of These in hampered quarter the operational will benefit

This achieved retention. both quarter employee and we major in improvements customer

dividends, Eddie compared $XXX.X the first of was these details in paying $X.XX for through XXX(k) both you Our developed I'll grew last on and share benefits. million, service enhanced will a new our our million quarter results. income as $XX.X X% $XXX.X diluted further greater the routing first to to minute. and million per scheduling million diluted Net the explain in other actions provide $X.XX and These delivery compared XXXX. our recall quarter per to or or share, to quarter Revenues and technologies customer for improve we are year. $XX.X

additional increased up our faster other staffing than X.X%. lines Regrettably employee business residential in grew pest ancillary cost, at vehicle pest commercial X.X%; control Looking and the termite and quarter, grew control season-related X.X%; revenue. our expense, our rose expenses was

employee improved on wanted our a and I benefits I take earlier. promised elaborate to minute XXX(k) to to referred As other enhanced plan

opportunity company, asset. the important a long And a effect of and a last employees year, with would better As the Act, Tax our service company. as Cut most positive result that recognized that our are by and elected provide our provided have benefits their have employees for we long-term Jobs our to them we and families

employees Prior One on now benefits the we help most time our and of to more up X, the plan. In of and their match to important the for the this their their many for XX% to with enrolled our these has contributions we contribution goals XXX(k) X% X%. expectations, XXXX, Rollins employee program XX% exceeded to contributions in on increasing increasing contribution XXX(k) employee the up first contribution. change matched far now match We of many XXX% selected was achieve their response January X% first program. to benefit the to

we promise We As future. a now is our higher cost it are also and however, in more The incremental Other million percentage the indicates future confidence it approximately quarter of our we families. plan. participating Rollins that has in for believe result, them of that this confirms have their a investing employees in a and their benefits. that employees $X the their

anticipating to is magazine. a California. and the college scholarships, acquisition management of increased Control, has company selected regulatory Clark Pest excellent California clearance Northwest loyal Nevada. a company throughout management company number of paid a many It service to and PCT doubled pest time-off employees. Lodi, day tenured largest in residents XX eighth businesses company Any stock also Clark for located according history of very we and nation's We pest Clark operates customer locations. base. the provided leading and are our serves The in

Rollins. that history and our acquisition be will to them confident major This a contributor team the and join our continue are We largest to Clark to to are in is have grow date. thrilled company's

call to John. over Let me turn now the

John Wilson

Thank you, Gary.

highlights so how to these already our are that not While first expected, most thought Gary what of operations. the this around were benefit members. reasons have helping celebrate year recapped and centers enhancements, improvements our of we we report team to results our quarter employee that our has I

the we saves XXX saw separated that a for dollars XX% retention. For time as people. spent hires. Orkin replacement spent training This This alone, brand Orkin meant for team searching most in new those our from important well employee we improvement as members metric fewer

other similar a saw improvements nearly our we labor also in retention market. is one brands tough employee We know very of every and what all

Atlanta and a During having the that -- survey. was by marked were year XXth deserve and business achieving more survey companies. control the connection, about and pest to recognized and midsized pleased Northwest seventh Rollins thanks program the based management through this and in has participated we again experience. list time, surveyed This this their ranks the received employees were than been XXth the also pleased third top year this XX,XXX honor X,XXX of including measures this Orkin this category, The consecutive pest satisfaction top and by execution, We marks year engagement in training leadership XXXX, Journal-Constitution. Many their rank to companies Atlantic large employees award workplace in only aspects credit XXth go the XXX since either of acknowledgment. ranks Rollins workplace and been of who team, the that world. for announce were for Rollins award, recognition. the quarter, and year this workplaces a Northwest we leadership XXXX alignment, honor. seventh still our Rollins Metro also as for as This is The that Rollins of several for the honored or company gathered has Northwest awarded culture This on the feedback Magazine one honor, organizations have in Rollins Training third-party achieved solely to consecutive

know is our important a training to careers. As successful their past, to retention company to us we It receive not to a in is that have our times the vitally know employees they job. that said many future launch just in have important their the experience they and

Over employees few. customer improvements President commercial Jerry development, Specialty Rollins our Human or new VP quite processes, Rollins training and Clark residential and have join equipped it Gahlhoff, customers support of Resources the in leadership it's customers. with well few believes, service of to Gary past who at development, family. to are relationships core employee curriculum are developing Rollins sums just and service year, to a employees, multi-unit introduced our we those leadership ensuring of serve component of name are well. and critical and is we up a for noted Rollins enhanced Brands a the excited how

largest aware, the previous time our those who the the -- than U.S. was acquisition, acquisition At fourth may company largest the decade For pest HomeTeam, the acquisition they control were ago. of more not that you in be of

growth a financial performs branches to thrive continued From Over over the members, standard. years, growing well. by HomeTeam X,XXX perspective, and team quite XX to a any HomeTeam extremely has accomplishment

past industry and five grown in HomeTeam's the nearly revenue for X% years, both on Rollins has total. faster the Over than average,

Additionally, than company Homes partners. our fine -- brands is pest profits years. of will for the XX servicing homes. years. and also number Taexx operating of performs business of overall, for HomeTeam homebuilders having Partner to in your of the its Award focus of to cities example in one rate conducts top well. for customer have exceptional homebuilders and over over Eddie. a faster operating grown and service Thank to have is call faster base services its where than several growing of family to that Weekley at XX their the currently and HomeTeam control the I the and of time the HomeTeam HomeTeam's Rollins business are top-notch provides Choice improvements as these XX Quality one to all David we HomeTeam thousands the one the Weekley you been for turn recipient providing installed is it David on past testimony has the added just across the Pest companies coveted recognized a work highly million quality awards nation. Management been the quality the system They more have services

Eddie Northen

one-time to and results California to a for coupled a materialize the much quarter. Thank John. between and The the items fashion. of extreme all substantial rain uncharacteristic in provide best-in-class our well-staffed several did We in the polar late first you, pest service not and contributed normal spring demand vortex publicized weather with Midwest, were

a good days many was March and April Pasadena with was For that Vegas. were late more with start. month in difficult very February snow January -- the Las month. snow several in was there see places favorable month February to normal difficult unlikely areas a of off like a example we a Even a country, and impacted in is

our retention, that in the mentioned, several as both items of quarter employee service all bottom-line and one-time included lines and continued customer showed of patterns, impacts extreme profitability. quarter, growth the weather peak For improvements of and impacted

of prepared increase faster Income an income the most EBITDA the was year's earnings revenue taxes over and in this XXXX. million $XX.X share delayed numbers, million, $XX.X of X% compared revenues of $XX.X at impacted $XXX.X down the was subsequent X.X% decreased $XXX.X Looking million This share per quarter from share for over than XXXX. per $X.XX to as before of in revenue financial as $XX.X grew to of first we QX Expense fell million. $X.XX year. quarter quarter per diluted spring X.X% the to metrics to X.X% diluted first that the season XXXX. was income well. prior our Net decreased million million first X.X% of

family As brands. add Clark more customer more we as speak we will we Rollins to to amortization forward, and EBITDA the move

our material services that may not being take Clark look coupled impact. margin. demand, expenses incurred pest gross of the the quarter of items The as unexpected But affected to overall and these Commission professional quarter. items several were; lower material Let's of with Federal items one-time were for the weather-related Trade one a work a $XXX,XXX through A at see was process these impacted the acquisition. this normal

QX by Moving expect involved expense impact amount. have a $XXX,XXX in to similar an QX. $XXX,XXX future additional de-lease with accounting in forward change quarters the fast by Contractors we impacted will and

$X.X million. our dollar foreign operations the of difference the by year-over-year international With growth was currency, U.S. strong coupled the against

compared Our the And last million. XX% vesting. over impacted by to increase in of XXXX $X the bottom-line rate last tax XX% to note in year item stock and XXX(k) the is equity

planned bringing on Gary popularity that rate not rate a any participating our difference benefits more see enhanced we in based XX.X% began XXXX. participation were the very to pleased additional employees year-over-year, up participating XXX have at we employees program, While material in XXX(k) the mentioned. higher see of to to our

last and items year XXX(k) Additionally, impacted awards increase increased well. $X.X the overall per vesting the and contribution of combinations SG&A by CSP person as quarter. an The impacted equity These the of granted additional for both million. quarter

we last Clark. the what sharing As about John of excited and employees And while he of some pending learned Gary time visiting quarter, Jerry spent this company. acquisition mentioned, are great very

very in tenure time us. first the at Rollins, the my happy For bankers with are

We using transactions cash term loan will be the a to $XXX LIBOR for and remainder $XXX out using tied say million complete of credit close purchases. we I line purchases separate taking because our million deal. two to for the will the

close which of of equated owned will business estate the and properties, portion on Clark. on real first XX pest then close We to the the about Clark portion properties

back as this next loans as year off within intent early We paid years. of will begin to the with these have July paying loans two an all

will complete, not but add financial profitable. be impact. between depreciation, significant increase As EPS of I But amortization our quarter, in additional loan more year will we that XX% flow. XX% will interest, cash contracts and valuation generating and of in is Clark to with very the able the one, Clark know Once to goodwill customer the mentioned specifics last overall be year-over-year But amortization we share will amortization XXXX. is

Rollins the related our will impact this on forward. total to of moving anticipated results We more share deal

through a lines Rollins look service by for quarter. first Let's revenue the take the

up salaries, pricing which our earlier, total, included of control acquisitions revenue weather. discussed made X.X%. Again, and termite was severe And up approximately from gross were pest control, was X.X% revenue the was and down acquisitions revenue, total, grants the and our X% X.X% increase amortize X.X%. was in provided slightly an margin share up total and employee-restricted up increased -- revenue Both grew X.X% residential As up pest to and several made was as the up services, was prior Commercial less commercial up ancillary increased residential total experienced most from impacted our that, X.X%. of commercial and of revenue control, our In termite by increase remaining pest X.X%, quarter. In from which made X.X%. X.X%. administrative XX% quarter XX.X% growth. organic XX% year's XX.X% pest control termite control that And residential XX% up The pest year. from ancillary which was last of we

which quarter the the fleet new XXXX. decreased of percentage contractor a full of Additionally, million revenues contracts first Sales, XX.X% million and expenses in decrease and X.X $XXX,XXX the related we for general administrative up and complete of to of increased and quarter $XXX.X increases up due administrative as amortization is accounting XXXX, million, once leased change These X.X%. my XX.X% discussed. due pronouncement in up expense the revenue first for of of as expenses higher $XXX.X the to increases in to decreased will that revenues, XXX(k) for percent sales expenses intangible I substantially the $XX of due to in acquisitions. Depreciation vehicle or were increased increase match million expenses salaries were associated with from from were personnel-related XX.X% grants acquisitions the to that salaries, mentioned points Depreciation assets increased restricted expenses due $XXX,XXX amortization to to share or as as of the of quarter the from $XX.X lease customer during or sales well period equipment employee Clark. The purchases, primarily acquisition amortization several I the while amortization numbers $XXX,XXX opening.

the new there used increases professional standard. to accounting leases to in contractors the related for Additionally, update were services,

$X over last Canada $X.X we capital which million year, compared million the on upgrade million the XX, planned We $XX.X as period per and be stockholders of of expenditures, As the OPC. X.X% dividend to of to rollout. up at XXXX, the had did which of year. in March million of BOSS by a prior XX, minimum $XXX.X We with year such period was from to acquisitions of XXXX paid cash cash $XX.X on XXXX. a period for on will XX, the business for the foreign dividend Board our same XXXX, by include Yesterday, the share Board $X.XXX The marks spent million $XX.X Directors million which regular close a ended dividend the increase This IT declared ending related subsidiaries. cash consecutive primarily increased our that cash held paid June has XX%. record is of position our XX.X% is XXth dividend May our

Before I I months made want books we XX of our ago. wrap derisk to our pension up, it decision to the about move remind do and off that you

to We charge process. significant related closer more this At are that turn we the finalize finalization one-time the we third you. non-cash this on to back Gary, time, details the quarter. as will for a call process. will get have I end QX of in in over share the to schedule this I'll accounting to of

Gary Rollins

Thank take Well, at to this questions your time. happy Eddie. we're you,

Operator

take go will with [Operator from Please Sean question first Instructions] our Nomura. We Kennedy ahead.

Sean Kennedy

morning Good everyone.

Eddie Northen

morning. Good

Gary Rollins

Good morning Sean.

Sean Kennedy

a So touched called it's that backs I operating still quarter. on this back this about know add I the question on Eddie XX% margin. the million out around but press to even $X getting it, release, adding you of margins operating had back

and wondering, other describe you some maybe was pressures and could detail of they Thank you. if just whether recurring or I then So the are see one-time?

Eddie Northen

– to the because in season, staffed Revenues there of across anticipate is well put the that the of caused that I as that well. will the quantified. would of to don't demand quarter board well. point come that on of on typically pressure going We slowness not Yes. as some have that's softness without some the did those spring but staffing based weather the the We're a weather. from back but the softness you of particularly which perspective we as revenue necessarily

Sean Kennedy

one expected weaker And on weather? to call due follow-up it. that Got was to question Or then was out little is a anything else there? commercial than there

Eddie Northen

You roller-coaster faster over slower. little the last a you'll you know, faster you perspective, kind I four a see little you'll it from the you'll that slower at then bit it see think if of look at and see then bit look rolling years if commercial

a what the I bit little off just of quarter previous had that from we in was think years. we've seen a some

some XXXX and had in you pretty commercial saw. back If numbers we even XXXX, we look that strong

Sean Kennedy

luck it rest with That's year. me. of Great. for the the Good

Eddie Northen

that. for you Thank

Operator

Instructions] Michael Thank our Stifel. [Operator next you. take We'll with question from Hoffman

Michael Hoffman

Hi. quarter fourth in Thank In tax you the of XX% rate very the XX%. the much. for given that the think the year about for the do How about gave tax playing out you guidance year of the cadence remainder I us at XQ?

Eddie Northen

Yes.

the So similar year XXXX numbers. and in get us brought that back four the that XX% to the year. QX for fashion and the QX quarters to will subsequent that rate where around then tax full was had was for we lowest total we

subsequent I know was that we that rate for to lower than now XX% last a year level rate would year higher and right full out year. last the XX%. course, should quarters But we So in XX%, again XX% full tax but be to tax believe still than would up everything the this year that the nature the some that at cadence the And of that. that extraordinary items on similar anticipate impacted based with

Michael Hoffman

was that shortfall didn't going do couldn't and you that a work much And it's Okay. versus customer maybe of but understand this the you shows we yourself have and that How in close done get branch service to done? you for – was XQ? didn't the quantified – get much we revenues up closing new branches number so then get how

Eddie Northen

phones to it's the see through taken and going not is that be aggressively a as That stuff – more We've really to about in it's down. that we its break time and much the we'll seen upcoming demand earlier, talked of A months. pent-up. the - And that Yes. grow the Gary least ringing

come and off and ready April is that. the team comes us to good good mentioned they that well-trained weather a are I demand as prepared well-staffed news for will are is through. to John warm The for well that and go start As

Michael Hoffman

balance that Right. can kind And may borrowing your happen of I own so we and and when Clark our of what's do squeeze sheet? one analysis all closed get we and on can what's figure costs out other the

Eddie Northen

Yes.

finish the want have follow-up, do and line just more will loan give slightly we'll that. and some details to on than the we tied one then credit will higher But that. we but LIBOR So we be you close term once

Michael Hoffman

what? plus LIBOR

Eddie Northen

close. We'll you What? we give when more

Michael Hoffman

Thanks. Okay.

Operator

Thank take William from Please with our next Blair. Tim go ahead. you. question We'll Mulrooney

Tim Mulrooney

Yes. Good morning.

Gary Rollins

Good morning.

Eddie Northen

Good morning.

Tim Mulrooney

one and it line quarter? much each to How going your impact top So, Mike time. in asked the I'm Sean the more ask question, did weather just try results first

Eddie Northen

weather we it's Well, and say kind opened don't Gary of to the with like word that, reality. the

mother we the are being year. normal example is by coldest was Las the her this California a the Pasadena was case, that And quarter. rain does snowing, Angeles far that relative We an Southern As is years. during in that more I gave. -- as in and first quarters in good it's there we've involved Los with There still than in for Seattle as Vegas like different snowing. appropriate and as as nature concerned far staffed in seen at in are And several thing.

then just When we Southern it's do can can't day those a cold snowing it's rains we're termite when polar We was it's in anomalies that that pest or we're types digging it So, when in Chicago we for accustomed And termite XX to. XX, situations. trenches can't places just degrees. minus every in occurred work. of vortex of lot not minus do not work do California, in that

any that. to longer this going us. is seen than several of Gary years. that's in different It's very have than quantify So, we we past don't the what just a number in

more So may it? on put some color you

Gary Rollins

of thing on, quarterly plans developing people plans also pull add still but The our bonus this out to they leaders. checker, it mean, of you a our it's have we back because bad been I first game. quarter. helpful. I'd the -- spent and annual but quarter. a in size to that's when settled I is not. had I'm our time mean, stumbled lot the the the And for news if one can is, and it's it you like do But painful managers of are good have one get so our quarter, very and the is an

So, not of suicidal. have or a business. just situation having hard very trying anybody of not difficult important of impact imagine the and I get is mathematical determine to we a would have leads don't which It's depressed would being the part even matter just to our bad it's that to the out. really I time that customers mean, genius a figure and

Tim Mulrooney

Yes. Thanks additional Garry, That that. the makes color. sense. I appreciate for

Just good said off start, my is a other to one, April -- Eddie right? you

Eddie Northen

That's correct.

Tim Mulrooney

looking spring year I'm a that know remembering for year? I last potentially this correctly you season? I if So, a tailwind be second critical which had is guys, at you. delayed quarter period pest the Am weather a Thank could

Eddie Northen

pest weigh ask a enough thing once for that good I'll warmer as weather to John this up dries as long proliferate. would there is that as add pest side. creates as it moisture, the in And extreme for Well, demand on is on up -- dries the whenever significant the us the are to I long But wet well.

this benefits it's would that that would snow I quarter, in in significant the those we'll especially So, moisture I would say, areas trailing, whether quarter rain and see have that the other of say first opportunities, the following. we or have

John Wilson

Yes.

those sales things, XXXX. hadn't had in I Tim I a or early April on think $X our had of demand. Monday. handles one since pent-up we're for us this We all mean in seeing those which day call million residential of center, pest We

So plenty pent-up to demand, our are handle that. well prepared of teams

be quarter it'll us, think I a for much doubt. better no

Gary Rollins

of encouraging me, is employee talked with our us part improvement. retention which significant improvement, customer retention which his The to part during significant John is helped has the call. about The

going be technicians and this So the well-trained higher with demand now we're is time and period ready employee demand to we rock retention, go that into to with there. roll pent-up

me the or we what's prepared that's now. happen right about for part to well So encouraging how happening is what's to are

Tim Mulrooney

and you, the Great. Thank good luck spring. in

Gary Rollins

Thank you.

Operator

you. Thank

from our Chris ahead. go next question with will We McGinnis take Capital. Sidoti Please

Chris McGinnis

Thanks my morning. taking Good for question.

Gary Rollins

Morning.

Chris McGinnis

that. the weaker all kind that trends might be follow-up maybe positioned Can stress in QX? how the pent-up maybe system? better Just puts to highlight on given that the demand just on Does of at you you

Eddie Northen

Well, situation we're from going have increase. to where demand you and new as to additional have continues people then a have hire trained to don't me this

the talked retention, about and that again employee had. we've With John that

and strongly I believe We to to that able us the already to -- able will the in have network the productivity be enable digest believe I efficiency easily. be to it

up -- this So having were time maybe the are I people think train it's efficient more them speed. add and to that we them we're we if still to than is would having during increasing the they're already go. and These period. and get not be demand new stuff to we'll people trained, they already are what on And be to ready adding payroll,

Gary Rollins

retention. thing, to is Eddie, also like which the add one I'd about important

certain as through I think and consideration, Although that takes that's time. time training, important And you do on and training as and of go save save energy a to it also an you because amount far the in management the sourcing search training. management

So work they'll time our businesses have forward. on more to really

Chris McGinnis

Thanks. talk that. versus the just you acquisitions business of as for maybe just in legacy the how as want XXXX. quarter? maybe about in Can those a then just call are businesses well And you lot Thanks trending

Eddie Northen

year a had together to the acquisitions go come From once we a have perspective, Yes. we've for all through to summit acquisition years. an the previous

happy. in we make are point a should seeing we the sure monthly time that At see. basis this that So benefits to those track on we're we very

we If and U.S. very operations they you look going break operation, outside Brands and footprint our -- they we're has us. anything. you Orkin, OPC us have anything were of performed well newer going the and Northwest to some acquisitions, very far very give at for well as the newer for increased of performed for think our not don't all our cases overall And in Specialty performed We've not profitability. we look of for that out, QX, I we're last in -- seeing well international what just year, But specifics those as the And to revenue the acquisition newer us. distribution acquisition, newer those U.K., Singapore have acquisition. any helped

far think good I I in So, we're spot for as in think a future. overall as spot growth and the great a

Chris McGinnis

good Great. QX. for and luck color Thanks that in

Eddie Northen

Thanks.

Operator

[Operator James Please next our Research. from question Buckingham Instructions] with ahead. We'll take go Clement

James Clement

gentlemen. morning good Hey,

Gary Rollins

morning. Good

James Clement

hear me? you Can

Gary Rollins

Yes. Go ahead.

James Clement

-- long I Okay, TV, great. baby I was different I the like a tone saw it's bit commercials thought than Guys of kind terms one how I I know don't want in been of of but that ask featuring little the saw you holding nursery. on ad kind Orkin some more to bit thing. vibe of in a years which whether that a there? wearing intents change past were in guy bug your a behind outrageous, costume Any of the sort a box little and it's the campaigns of other and pizza

Eddie Northen

Well.

an and live create. how free by the of think way. what different think we're our we are supportive is breakfast I the ads their they They that, outside that customary our were if of out people house, was be and of scenarios of kids with and it's give the creating really part me, you the and them with I there, homework Orkin a to I of -- by think that different they intent part of customers the it our part to we having just support And in that is John technician more their show to a her an lives think support. And customers. for favorite get the trying all extension let lifestyle. what are that customary is of creating this, And to was And environment to different need making I but be trying pull of to on their home the I'll at And lots they part where family types that's help show were one female -- of show different to the think people's family. our we about of family. enable and in a the many mosquito help environment consider are trying her talk her out we and help I to a look her with a in safe that stuff. And we most what

James Clement

Okay.

John Wilson

Yes, Jamie add. would I

control box the necessity about opposed messaging is your point as of the an pizza To emergency is pest that... all holding bug So the type about an big situation. ongoing to

James Clement

to Which way absolutely by see now. love the I it that I loved

John Wilson

to a calling it Whereas No the healthy need, call about pest have a is in need. of to control only messaging necessity doubt, was now happy right. when you really the when opposed -- messaging kind and order a about that but as have about was a only us is lifestyle, maintain you

by was about with the large muffled, all the adults commercial. I up ending what after going And of the television of sound kind all on of And a looked ad a then coming a the kind much time from the looked channel Orkin talking So Chicago it's and new which ads hotel deck me of told one I and up. one other to the we're showed the the up and mean, and there messaging had was in and a of went wasn't piece having back sudden the up to the logo I they in they the that's it news the and a see in of then silent. was was look on attention getting. our it And I the advertising is television seconds was on few I and party. and

attention pay it a think it's quarter We've trying -- off move. it for I it's successful grab got proven that went get of with so people's early will lot on us -- some And we're reviews really to good it. And on.

Gary Rollins

Okay.

add do if I testing. might We I lot think of a thing. one

watching to can message, initiatives deliver And message be just matter television best that situation is. what and would cable advertisers. if a grab just if the we them, similar you you're commercials grab the stopped their audience it your the with whatever, are be discontinued They looking but you we is and see major doesn't can't so, there or one or feel or were or what select several and going creative to

and we're time tell. hopeful So will

James Clement

growth about range only appreciate annualized intangible in of Eddie your meaning basis? talking fact I an back that. Or you were the were around you did that quick, eight comments like to months XXXX? you're the amortization, real it of giving on

Eddie Northen

be the that would acquisition be a that impacts will will So the impact a the of on -- we impact, once make quarterly be the range basis. there

James Clement

Okay.

basis? year-over-year a like So

Eddie Northen

Correct.

James Clement

okay. Okay,

very I much. it. great. appreciate Okay, Thanks

Eddie Northen

you. Thank welcome. You're

Operator

Hoffman Michael with question Our will Please ahead. come Stifel. next go from

Michael Hoffman

Hi.

Just, bunch on up phone breaking was data, which you a gave the unfortunately. of

whether growth know -- didn't I rates. it gave you So was big

the the next us X.X%, gave organic, that you X.X% X.X% was X.X%, res, that the comm group, and totals, think termite? and X.X%, I X.X%,

Eddie Northen

That is correct.

Michael Hoffman

phones were unfortunately. couldn't. I breaking The Okay. up

the that customer numbers, disruptions, all that X.X% business retained -- weather plus those and the of to inside adds? and add-on of all new services, virtually versus is because So and prices

Eddie Northen

country. in Well, adds parts we'll have of new customer certain the

from majority there's of you mean I customer I probably where that weather were than that would they of the come you impacted Midwest, by of parts followed -- country impacted, But think have California less others. if I then certain there new the the mentioned. and categories it the that the come probably is impacted we were will look But less are the that at country were here. will growth other say there most from kind were areas would that. the

Michael Hoffman

the the leads. worry the because you new part saying -- improve biz retention why too, right, disruption businesses all you the quality year-over-year, in three because to number that in segments, had each given retention of growth that's the organic getting you're across of of And you're -- number, improved the

Eddie Northen

That’s right.

Michael Hoffman

Okay.

to I All was So trying why it get that’s right. right.

Eddie Northen

Yes.

for between the healthy a -- some again, so a correlation John is seen the quarters -- the great of believe tie in So always improvement. we employee us that talked couple the where and row, retention, we improvement customer a we've now pretty seen we've that that about and again, retention on

Michael Hoffman

Thank Okay, you. great.

Operator

will our turn Thank speakers. the to call over back now you. I

Gary Rollins

you. Thank Great.

and We progress you joining our Thanks, forward today. updating for us Okay. in Thank look quarter you appreciate your the to call. company again. interest second on in our

Operator

Ladies your a thank lines conference have joining day. today's disconnect has call. call great for and concluded. gentlemen, Please and you now The

Rollins (ROL) 24 Apr 192019 Q1 Earnings call transcript