ROL - Earnings call transcript Q4 2021

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Operator

Greetings, and welcome to Rollins Inc. Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. pleasure your my Mr. now is to host, introduce It Joe Calabrese. Please ahead. go

Joe Calabrese

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

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

We'll being to the call The on presentation at Additionally, view investors which website you replay a this be will call also a www.rollins.com. found is available is and and that days. following webcast XX that be we www.rollins.com, slide us. encourage presentation, Roland's can and slide for supporting with morning, offering be on company at

Bimmerman, for make Management speaking Chief President Chairman, you remarks. open for we'll your Chief today Gary, Rollins, Jerry Treasurer. John like Julie remarks, Wilson, Jr. Operating Julie we'll Financial with Management the line then Gary Operating line Officer Gahlhoff, Chief and like Vice Officer, Vice Chief opening Rollins' today would Bimmerman, Vice some President will Jr., with begin? Interim make will to line questions. the you and Wilson, and Treasurer. to and begin? the are Officer; And open John Chairman; On Vice and me speaking would are some President Gary, Interim then and and your and Financial Chairman Jerry and the Officer; Chief Officer, On me and questions, President line opening Gahlhoff Executive

Gary Rollins

appreciate then call. good will us read statement forward-looking Yes. morning. begin. you investor quarter and fourth our we all Thank joining you, and Julie and yearend will XXXX Joe, of and our disclaimer, for We

Julie Bimmerman

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

John Wilson

you, Thank Julie.

to going call missing and I and our it's all, growth. very that both quarter's great the experienced revenue of a pleased call especially operationally, with this to knee you well regret Nonetheless, be First we has report financially EPS and successful my year, therapy discussion. I'm on been last with replacement morning.

our term deliver Rollins as New XXXX, As on we that to objectives. poised our we Year began forward term look is and long with to you the unfolds. sharing We believe short progress

the the As previously we SEC is at to disclosed, Commission our discussion resolve with Security staff US and the investigation. in Exchange company

settlement. potential the we $X a quarter, accrual increased matter related this million fourth to the to for During

business will answer me Given the in is this during investigation near we of that over process, who the John? Q&A, With very our out some for and future. we provide resolving the updates. inquiry focused cannot any the that, ongoing on are John respect to call let of but our questions turn

John Wilson

good Thank everyone. you morning, and

that our levels achieve performance we very a year-over-year with of also across we and men extremely posting of realized performance are propelled us pleased termite each XX.X%. very of of our again brands. growth the pleased line, to double-digit to women XXXX record of mentioned, our in our strong growth revenue company that hardworking I'm Gary and As service proud note

specific, a row by damage year in been has received be history new business recent any claims the To damage litigation claims termite several declined well as in past to claims XXXX. of as year. have received growing declined lowest double-digit high now, termite our during related year our this low level XXX termite more While reaching of by years from X,XXX have for a

our While our at time, building expanded leadership service allowed that and revised revised be our training meetings had our protocols a training our due various modules up series our and experiencing obviously of team We genesis came treating same customers. a treatment Success could mandatory many before of The sales state exceeded from regional construction culture, changes managers story and assurance termite members initiated in great large. to problem we a a termite-specific has resolve quality to the tripled. were in you processes. several training significantly that training, and serious address improved problem our new hundreds of were field our solve multitude treatment team developed. held clean training wouldn't requirements. situations started commitment service years, We loan that of These with practices and a in our treatment of protocols protocols from to a by to cases, We evolving revenue been this to markets. part made for

claims our response went assurance a to done needed. new branch This inspected most our quality immediately. claim and quick that took our Additionally, and our group to things the that to team team's created being to each requiring work when were customers control according requirements. offices the verified field we treating process a report QA insured This nationwide of also

our culture. and the was most important, Finally, maybe change most difficult to

to follow Those quality failing our to forward visit president adjust division to Change to brought to visit had up due QA As company. the an example, under adhere that didn't commitments trip receive inspections I'm have the commitments Fast our for the time proud for new service believe technical reputation. and customers and our our strong the practices of a and are the to and as trip. to Operationally, a and location, very that is group as or return by acquired by led quickly brands, a failed possible. us. very those our standards companies all newly customers, are level today these company practices. team. exceed quickly work to dedicated occurred, services came our offering a these protect made termite expectations to a a these meet assurance service team service make has experienced We any important

on the to our Now who call let over me will business. more provide turn details Jerry

Jerry Gahlhoff

most the year. This John. for that SEC a diluted the to control compared the to accrual the address on was Thank morning, and then impacted for Net you, brands. XXXX Good impacted year QX the the rose Rollins' revenues quarter $X.XX or notably year. XXXX. adjustments, and XX.X% million income that productive fourth same will share previous directly I'm family focus morning, million $XX.X or of strong $X.XX in increased items million $XX.X our diluted Julie period operations going per everybody. $XXX.X pest in million share per to to $XXX.X compared to non-GAAP

residential share Net Our billion the full year compared the were billion, for million year. or per million diluted increased for full to $X.XX XX% year $XXX.X period revenues $X.XXX last XX.X% to $XXX.X to $X.XXX our same of comparable lines realizing for an year. the growth income will our increase XX.X%. compared diluted pest Julie GAAP or business period termite $X.XX Again, for All growth the XX.X% solid review share last control with experienced and year results and full per up of shortly. non-GAAP

by revenue Additionally, XX.X% detailed growth an Julie over breakdown commercial fourth a impressive moments. year. organic more the delivered of a pest on will in few control service you growth last quarter give line

want emphasize rates address Before I move year. how in we to quarter the on for I are and revenue from of the the we proud expenses, and fourth achieved growth

up of All reached celebrated our contributed their best by Orkin operating anniversary results. grew greatly putting coincidentally, to year brands one years. performances XXX the During our and and their in

fleet are expense you side, I'll of On areas on largest these margin additional three impacted and supplies some in payroll, give QX. and each expense materials how the color items and

been last year that rates payroll our start On basis, to above growth margin while achieve in margins revenue QX. a able average Let's to we've Remarkably, XXXX. expense flat labor. date year below keeping to is service expense with

continue payroll administrative XXXX to also productivity. over Our as we improve margins improved

for payroll payroll last ago. in sales our If minutes reflective Rollins sales we in are shortages. ability by our XX a investment team's months. made to an virtual practices upstaffing teams best However, it's This there's top sales sales planned slight meeting investment proud as over is we Most yielded mentioned a the Last the high not expense. our caused I of us leadership few levels is we payroll retaining recruiting than growth I'm topics mind growing revenue payroll despite labor of long over focus The of about held our of do commercial margin will sales challenges the huge recruiting area and manage I This to, our in so up leaders. our our increase with giving of did item XXXX. expense experience residential were we payroll a week, and trend XXX people. expense the faster in margin.

supplies costs, to M&S. move or Let's materials and

headwind quarter, the more where issues and we've ancillary offerings cost supply M&S Our for had chain service in were latter a year. of in the the part slight particularly termite our

fuel impactful us up QX of materials needed fuel. our working $X.X team upward, fuel while XX.X% in cost. to analyzed to alternate the rate QX of in to equated these in QX our has cost seeking operations rise in over Compared increased most by this is Probably the impact XXXX the were That particularly counteract expense, of Our, to pricing quarter. hard in adjusting procurement fleet in our is million for where costs team area products increases card XXXX.

costs also increases digits. rose for maintenance, addition, In fleet double basic tires repair like items and in

we're helping past, between productive increases and which impacts As the scheduling fuel, contributed a first This saves these making either in technologies, QX of driven us routing manner. miles we've We enabling an but fuel Since to us us of bigger expense more also in with reducing progress discussed some systems the only technology and began manage BOSS mitigate fuel customers cost significant increases. efficient our time. operating help not in by reach the in XXXX. services to way our service to even payroll significant of feel our

item put to others our Related are we I'd fleet other concerns of about accelerating types for and Due a first attacks colonial enhance experience headwind a in significant costs cybersecurity winds cybersecurity quarter $X multiyear spotlight pipeline expenses QX, by tracked will to by against we in protections these our is cybersecurity threats cybersecurity issues, the on million expenditure. be that a mention. strategy threats. to So continue and that recently fast solar year. familiar us like anticipate Most of to with one this to the

our pleased year employees, customers briefly months in our We have to our teams a their quarter. ahead, and that companies initiatives to identifying companies our domestic shared for revenue XX continue further cybersecurity to dedicated grow the successfully the to the we expect brands. our now and of trailing and cyber acquiring team occurring international Shifting fourth and to will I'll landscape, enhanced business. and be we our brands ended over call acquisition We're an high to looking values. XX% controls these welcome continue of strategic family to Julie? acquired Julie. Last component in of acquisitions over implementing turn very Rollins important the culture our quality with operations strategy strong and to execute with acquisition protect

Julie Bimmerman

growth metrics. significant Thank fourth by financial We key highlighted many an you, Jerry. across delivered outstanding quarter

As cash we organic several to ensure we that revenue quarter quarter, performance present and we they business. we discussed report metrics in articulate measure To previously free our the end, each discuss Rollins' best additional measurements total calls, including EBITDA, conference assess we growth. third

revenue this including will that termite. are addition, have Also, residential, we our revenue further and growth measurements. a presents deck then lot presentation. In over everything and We today call revenue now we believe To including we're organic to resource we within information to commercial on will are slide discuss this transparency by website, our events, presentation. which bring a covered. type, We rollins.com, click give news realized what review growth the specifically numbers the and you on deck, to a view earnings of going the please believe go we

growth, to exchange XX.X% now fourth numbers, revenues So of rate of the organic. was increase million quarter our on actual an X.X% $XXX

calculated the For is an exchange percentage organic. to growth revenue rate, X.X% with XX% constant total the

XX.X% equaled of For XXXX, revenues billion $X.X the exchange over total increase XXXX, full year organic. an of X.X% rate, The constant year XX.X%, growth X.X% full with for revenue organic. XXXX

not same grew the for quarter previously, XXXX double double full over Jerry and mentioned tell all three year. As XXXX. also did commercial What over residential you was grew quarter all year digits the digits termite last this that

the residential XX.X%, X.X% grew X.X% quarter organic. grew For Commercial growth over organic. last year, XX.X%, fourth

Lastly, XX.X% with we have XX.X% termite which organic. grew

residential commercial XX.X% For at with organic, the XX.X%, organic XXXX, that XX% closed X.X% grew full XXXX we year organic. over grew XX.X% and termite XX.X%, growth,

our X.X% was to XXXX. income, stock or diluted first over quarters gain and are purposes the the comparison Fourth of adjusted quarter The per we XXXX XX.X% over impact our SEC the the the date, improvement super year XXXX quarter six to related third Clark of EBITDA chairman's potential our of late the grants vesting settlement or to XXXX. and of of recorded matter in one in was months Fourth XXXX. adjusted Now for of share XXXX for of EPS fourth presenting million $XXX.X quarter of in third quarter our time fourth due $X.XX our the adjusted several properties on XXXX. accrual sale to and EBITDA

year the diluted year. over $XXX.X or For or Year $X.XX XX.X% EBITDA last XXXX. share XXXX, was adjusted over full million with date per EPS our adjusted XX.X% XXXX to

margins addition for increase This million. XX.X% overcoming our quarter in year. margin in increased Without resolution. cooperate was two the X.X accrued million to expenses, the QX. federal over increased headwinds $X strong in one we SG&A $X and towards the or million improvement an of in Jerry, of fourth fourth These Related to point quarter That XXXX increased our last by fleet and fourth taxes. XXXX, tenth quarter Sales, presented or third margin XXXX. the recorded of along fuel of SEC by over salaries quarter working an over potential For to and a after quarter. with company items, are with mentioned continues termite year. The these specifically amount in SEC gross settlement, the for previously a fourth $X.X final accrual last M&F accrual. This was amounts sales administrative million deductible state not we tax was SEC general driven the X.X

reporting chief management's including we strengthened the of SEC over significant and During internal those supporting reporting related efforts addition including improving procedures while the controls we officer, external director. processes, attorney and remediation financial and and our estimates. completed SEC accounting year documentation, judgment to Also, a reevaluated related

XXXX XX% period cash declined for our over Now for foreign flow, a few XXXX. notes held We million used for $XXX.X million a of regarding which or our cash current XXXX by the our of was an year X.X% dividends while $XXX.X in increase full subsidiary. for with cash million $XX.X acquisitions to ended $XXX

cash foreign increased acquisitions. This XXXX. you've for make We're be time, in foreign operations, the completed the noted As in entities to exception with later of cash over held available. has of readily used restructuring our probably from process more foreign our should

regular March February XXXX. item. you. paid operating This position dividend board's or a XXXX financial of cash a last I'll data part shareholders share decrease regular year. from on of $XX free primarily of XX, The paid of at of approved happy increase close cybersecurity of properties, our Cares Full share performance growth. Now Act million XX% the or was capital for paid the cash from the to increase strength, to cash free $XX.X our March represents free $XX $XX will record gain outlook increase which reflects an a flow that XX, of capital that in accentuates XXXX X.X% that our was decrease dividend of strong The year of to our to cash back our upgrading dividend of XXXX out. am expenditure due was million decline XXXX as Clark is it and our flow, decline sale cash latter and Last, cash million in and center initiative. facility This the the the Gary, business, XXXX, our million fourth for confidence and $XXX a to was of $X.XX reconciling the board continued quarter turn the taxes the due solid yesterday our million. XXXX per to I directors over be

Gary Rollins

Thank this you, at questions happy any time. Julie. We're take to

Operator

floor questions. Mulrooney The is Tim ahead. you. from coming open instructions] [Operator of Our now is Blair. Thank question for go Please first William

Tim Mulrooney

John. Thanks for termite that excellent service. history of your

John Wilson

welcome. You're

Tim Mulrooney

A couple questions on organic growth.

to last towards quarter, commercial of that your So, the Can growth, it the more little in one, fourth helping with maybe All organic instead business picked bit difficult bit despite continue range, up picked kind more else expected comparison equal, back but historical about on what's a to drive first business, your your commercial commercial acceleration? talk pests you normalize up your a pest we little it here. year. a

on? So just curious, going what's

Jerry Gahlhoff

a This year the business the the ready be to is began still been ramped over that. Tim. and that opportunity team investment growth in of rough, in we were on our that things able to we've made getting the that ago the and the people investing capitalize rebound we sales up just to we've staffing. a during lot would is when basically upstaffing and an rebound speed in for capitalize Jerry, saw up A on We were we amongst so commercial sales and result commercial of

John Wilson

was I our feed add categories. Tim, mean, John. of both this our Yeah, And and off memory. also going both, with commercial branches sales accounts national I by street, I'm local local sales but that efforts, and when success that's accounts, adding is our the I driven say might on

sales effort lot close of account let up start So XX% for XX%. we it. new That for year. But being forgive or but me were to that little forbid business to month up the if bit, in a a out little one December I'm by some national indicates our was off

So pretty with that. pleased

Tim Mulrooney

Thanks there's question, That's I and right now. of guys. helpful lot really a numbers And perhaps color. for next misinformation this thrown around apologize but being

So want clarify. I just to

You guys revised growth your organic estimates.

half between excellent it you it, revised also the gave and Is a by growth definition like acquisitions the growth and our the old not revenue your difference you looks new about table math, first half to of it thing? significant the the and have of XXXX, of both and definition that to For organic us XXXX, all in you you release press first percentage acquisitions, exclude the how is see do about for one in that that which those periods X% point we think bolt-ons the only numbers. added typical that just that's

Julie Bimmerman

say of is when sizes X% it closing? to your depends is front. that the I'd honestly that they there's The are the many see closing? it are What on would high be how saying agree large on you're times lower. acquisitions always, as So A acquisition, anything that I'd acquisitions not it, as and only closing. Clark. lot be are would of the, like, far when numbers the it When yes, what know typical, time we many a

John Wilson

it would that. typical it's Yeah, this for always add that was it, I maybe like year, not Tim, but

So, we just know. just never -- we

-- all the think extracted. is with kind benefit I it of

a it Now us clearer gives picture.

Operator

you. Thank

question go of next coming Jefferies. from Cortellacci is ahead. Our Mario Please

Mario Cortellacci

maybe labor Is XXXX the paying is just through talk you're impacting more, but guess added and the I maybe just around labor but something obviously it. the maybe call, the have potentially you I I on if is you the guys also time. misheard the higher could availability people the your it the where for forgive about to of some me how you're, your know completions, margins? at you color are impact, talk around you service appreciate beginning availability. business Really these of can the And my can Hi. just question how wages working business this but

John Wilson

take add. me a it stab let Jerry Mario, first. maybe And have something to at So will

most are driven. issue. our talked So you'll productivity this pay of plans as maybe recall a was in previous quarters about building We

work more produce, the earn. So more they they the

over more than we're we are more are And getting people so well the placed. and turning certainly pretty norm our paid still while our

have And the share to through of the so we very that's fallen little lion it our getting of work, cracks.

environment. doubt, tough no it's So a

Our in rocks term people, leadership find best to happy not is of But and you're meeting, that I've And referenced lot right? used new lose then replacing of week, of that course about not to first turn in a we the keep rocks a the the bearing place, cost our lot them to Jerry action as engaged, turnover, them our not Keep of lose over them. are having talked before people people. them them.

jobs, but, pay to seeing most technicians, some the those and we to notably work. people our are, to, markets, few rates up of inflation our on we're So getting had we're of a pressure typically still some and termite hourly our in our service line, are share we've are getting and but

Jerry Gahlhoff

on I about manager, it's, of our efforts. recruiting a would solution as to and two in a we we have time we big of to on spend -- our spend and we more we're And of add emphasizing really spend really big you look, be may look spend much our efforts if environment. coming a of our how part forward handle to day, in at hiring have it every to managers what that's the as It's recruiting look managers year. to how hiring focused to time may have this and as adjustment to changing that's your XXXX, you day, our need hours an on-boarding how as they that this that's part

Mario Cortellacci

but I have a and managing same I with thinking guys But think points of cycle. XXXX, XXXX can with the margin just you just understand for And through do performance in you think historical guys you the and seeing expansion? continue don't done different Yeah. I that guide, about expansion margin cost guess guys you type job good

John Wilson

expectation. our certainly That's

Mario Cortellacci

Got then it. the, just And

Jerry Gahlhoff

get this we Always go is better. ahead. I'm was I strive just that's say what to sorry, that, what said, to to -- looking I Jerry. do; that's

Mario Cortellacci

side me going last get guys large have just if guess heard doesn't the completed whether it or I you guys in you, business. Obviously if the are within dynamics for the Okay. Salesforce it from the in new larger invested competitive guys it about over execution you sets I space completed, the ability past one on of probably and opportunity a if any have you year, on around thinking And their about you through deal but creates gets how that the your go thoughts impact know impact, they win shift competition player how heavily better, does your the but don't then up but kind the the space? to and deal and goes just obviously maybe through?

Gary Rollins

a we been think we've opportunity. done provides to be with, merger of to size, of that work We Well going competing that a lot on there's which both concerns. with be really

typically And oil as certainly turnover employees really has will the generated relationships, are far many will not. concerned. others As enjoy are as term concerned new customers the but

our take really it, we eye what doesn't off end that at but of matters. really opportunity, in Cause an as it So our business. that's look the

Jerry Gahlhoff

Yeah. the efforts. -- results Mr. of lot not and do high end talking time we on screen. it, put we? It's We the getting radar of Rollins at focus where a been what we that haven't spent that's get, it our is our about and on have we the, we

Gary Rollins

And it works.

Jerry Gahlhoff

right. That's

Operator

you. Thank

of Sabra RBC coming is question Ashish from please go ahead. next Markets, Our

Ashish Sabra

flex trending wondering opportunity to is into you my talk an about if taking to I pricing a could reference There is Thanks. the to business. there for higher how than rate as question. for card was and XXXX? the go X% we was a your X% traditional Thanks increase termite

Jerry Gahlhoff

that unlike customer flexibility increase that recurring we this is beauty a The fairly in a a price The a Jerry. of lot beauty rate of increases -- is just of adjust to can time. that card real with

saw just also so some increase pretty if we our rate can moving week that we adjustments material challenges make in can doing of and if expenses labor in but out. those in we a necessary. cost not deem use within experiencing we to And whatever quickly or can, percent, our in that and increase rate the analysis increase a same, we card or So us X supplies, those cover entire forward, only card, by whatever, we're those adjustments and figuring the materials or make usually and

or recurring, as revenue, a bit different different our It's increase. So a it's like sort control price some contract little than say based of model.

Ashish Sabra

up talk have I, color. on Maybe Can just card? what if that about you point other helpful just businesses ask similar follow you, which really cards? businesses mentioned where termite all obviously are can itself. also I but may rate you quick have a That's there a you the

Jerry Gahlhoff

has Everything right card. a

John Wilson

a want bring we doesn't, logic in pretty put we If kind do, and one business acquire we and We pricing that to our everything quickly. structure of to

Gary Rollins

I at like pretty the simple, the charging they've is John sophisticated customer increases an what gotten over and years, but currently, sounds where yeah, currently how, we the if fairly the had they're so that's it's this is we've market, rate in Gary, It add last look our cards forth. and could forth. our when increase competition price and so

first historically, rates the and as a had when the we mean, are make added slow over John we competitors great good Company a think a made And raise I rates. when at same data do And we we but are, margin acquisition. their really the situation, years we we it's and I were sophistication really the it. So, address thing we've probably point. Typically and buy increased an That's contributor to been that

Ashish Sabra

a of in or your inflationary you around turnover I in about color. presence. if employee Orkin's affecting the, very brand That's brand ask as strong the helpful is some is question given my second could the talked the everyone And industry, obviously

how industry or tail fragmented be to given long than better able private been manage a it the and is, maybe affecting Orkin's. You've more might smaller the best it players much the potentially versus lot control the players

players of Orkin's, pressures? M&A that opportunities that been terms it these or more handle these open perspective? in so there it from does help your as for to has unable smaller Does some tailor help And -- potential, are Thanks. inflationary a growth of my M&A but also how was up does question you that a positive private

Jerry Gahlhoff

the a that that -- certainly the This an say is their from you of presence, We, because certainly those doubt well, our industry. the and on television, maybe recognition get, Choice along There's make see they such easier, small and There's there. have social And have have definitely them of has we easier a, to to Company, as they Jerry. employment that tailwind go that, have not strong time saying I'm amount an Employer to strong brand they Orkin advantages something time, they brand they easy no that how helped standpoint. an employment doubt, lines. of but they marketing there's in compared little media, do market, no such various brand some on a a of Mom-and-Pop bit type brand brand

Ashish Sabra

then helpful. inflation from you M&A, are about struggling if That's could private environment? of talk And some to an be ability acquire just, the helping M&A which with perspective is these may of you the helpful the this you how of smaller that companies,

John Wilson

Yeah.

to What a I that is to of their factor in would decision certainly kind may say or is not this that sell sell. this, So process John. be making

what year, last saw was happen taxes that. we more going was with over concern what and think to than I anything

So, I bigger that say a that that factor. was think would

Ashish Sabra

you. That's Thank color. very helpful

Operator

question next from Hoffman Please Our Instructions] ahead. go [Operator Michael is coming Stifel. of

Michael Hoffman

Hi questions morning. this everybody. the for Thank taking you

should in help organic line a you composes can you, the you going think So, and but cross underlying every trade perfect world about share roughly. a back what the customer and what X% we with growth, is the how have you new and understand of to growth us price, groups, the up growth by of to us the it's sense give all business, be breaking say mine and comes ads, where underlying industry on rate selling between I'm and growth that will

So you've substantially substantially that. organically, been growing than greater

Now and for towards back it to years, that, XXX% a or where's not more understand Company. a easing several little of I'm you're start as XX% at it high-end why? does that sustainability the is trying like

John Wilson

this So, Michael, is John.

we'll from me then there. take and a of go what asking stab at you're Let kind

of design. terms of been termite years. slow So going base with long that by termite had I'll Part in we had our customer a of start been was And many for the in down business. slide kind

As issues, -- during moved we business. of piece, the of, the some mix the claims of we experienced that mentioned I that my termite

up termite XX% termite, started last XX around customer So, base And The but years, two we're we're think customer now that at I our our has we were when increasing. for base. to over started. adding

control happening And We're just forget so customers, new as exactly I alone. or, number piece some, from And, same the as residential for it pest and added in, our the that's, a in commercial. driving new adding it big XXXX, all XX,XXX for is customers of we group but segments. has there our of

And that So X% new the helps that Jerry, so or we're don't… just well. always I longer, lion share them at it's to Anything still point [indiscernible] as we say, the is, is then can to new additions. of Keeping price. with of customer kind add and historically

Jerry Gahlhoff

and improved a the customer you say had your main if you the, really we are at retention get. would than you of Those the then higher adding are that when kind is, rate, you're you're at looking drivers. I what difference growth historically, rates get difference, it's customers the the

Michael Hoffman

business. fair investment and to Okay, people enough. done I run a get the better you've underlying wide gap this and in market a you sustain can of that the to make what How And, long training growth?

Jerry Gahlhoff

going to on to keep trying, it. we're keep We're working going

John Wilson

for our Hey, in 'XX. is better on plan did doing built XXXX what we Michael, than we,

keep guess to chipping it's at So, it's we probably easy don't it. certainly answer, don't, the we intention know, but I our

Michael Hoffman

you Okay. taxes inference Gary thought to so make have you was been taxes did that put Gary, made And M&A, bed. then think an it drove in, I an

I think gridlocks. that much appear we've got would it pretty

catalyst around what pace challenges 'XX? an you outlook create or and inflation have therefore promising as was the the to expect M&A you labor and does slow incremental in do and it So is remains the

Jerry Gahlhoff

Yeah, Michael.

hopefully So we're gridlock that but that. law the may at you're that maybe year wore tax I mentioned it on Hopefully, didn’t that and with it that I as would but, subject that, it. John right. on that less And was change. and that's me, other mean, and less products They'll add kind the got that's some day all of going costs, different it's on happen things, buying whether well up business of or think running that, to and that challenges, We continued market. whatever. the to case. and the inflation, the the that's a just acquisition certain day

Gary Rollins

with we in acquisition potential year deals the the hopper. out And started

a So as that's well. good sign

Operator

At like floor time, for closing management comments. the turn to you. Thank to this I would over back

Gary Rollins

We you. thank Well, appreciate your interest support in Rollins. and

with and Before firm, of myself, about sharing I entire conference will I'd behalf recognize our done missed decided and he's current Thank for our you on And to for over the XX and he's Rollins service last first team board at in his be our like service again, for mirror is Dr. organization we And Emory. on during call Tom, quarter contribution's growth our we to everything look like excited of close, we'd to board ever the our don't meeting. Lawley opportunities retire that share Tom that XXXX. Dr. April. to is years. in our you distinction his distinguished our has believe end Lawley missed. thank from forward progress a

Operator

gentlemen, today's Ladies and this concludes event.

You off log webcast time rest the may and your your lines of day. or this enjoy the at disconnect

Rollins (ROL) 26 Jan 222021 Q4 Earnings call transcript