ROL - Earnings call transcript Q3 2024

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Operator

Greetings, and welcome to the Rollins, Inc.

Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Lyndsey Burton, vice President of Investor Relations. you. Thank

begin. may You

Lyndsey Burton

good and morning, you, everyone. Thank

our to the company addition The release available the supporting earnings yesterday, issued earnings on are presentation we that and at has presentation. www.rollins.com. release slide In website also a prepared

and financial today. on of certain The refer release the are press the historical risks discussion as the reconciliations statements as part in made may our in to certain as company's facts, well the company's discusses number appendix contains and our We and this including December non-GAAP the of for XX-K outlook statements SEC uncertainties, of These to year The make release. actual morning. earnings XXXX. statements. have section results release a ended particular any business excluding all Risk measures XX, Please and included call, and presentation Form that from Factors differ earnings yesterday's are this materially non-GAAP available be filings, our forward-looking subject will of today's forward-looking we statement other

Executive some line President Officer. we'll and with me Krause, Jerry Chief for are President and open Chief opening your make remarks, the line Executive and and Management the Ken speaking will and Financial Officer; On Gahlhoff, today Vice then questions.

you would Jerry, to begin? like

Jerry Gahlhoff

we together We the our to the encouragement team our and am begin by aftermath to worked everyone. like of I these discussion offering would been Good in communities of all disasters. teammates way to and proud of morning, those our hurricanes. support our the by Thank support you, who has serve Lyndsey. recent the impacted today have

and Fund emergency we necessities teammates Relief other processed need, water to truckloads direct grants Rollins and for of areas. impacted XXX food, has The continue to in over

these ahead to Our days, and communities continue as efforts in the months weeks begin will recover.

our financial results. to Turning

improvement continuous strategies execution reflecting in of our delivered and another consistent quarter, solid team our Our operating business.

week these quarter. which delivered caused operational Hurricane team of the despite results some disruption by last Helene, Our the during occurred

Our in we to financial revenue across growth million, lines. healthy quarter to in the all Overall, quarter. highlighted see was X% delivered and of organic solid an we increase for growth the $XXX continue third of major performance by service X.X% revenue

We our continue significantly in customer new to remain our growth, to strong. which and markets our growing invested and the serve well staffed customer and leads reflect. business as QX, in invest in to and staffing into adding incremental we convert quarter base sales quality activities results efforts in We we're sales marketing the

commercial the to opportunities the investments long-term side BXB growth in On of multibillion-dollar the to market. we a continue capitalize on business, make

feet strategically training data are Our better their add and the success. and street enable commercial division analytics on continues force, leveraging we sales our to to to

least X% Investments are healthy. internationally year, both to the in by deliver first in M&A. of remains organic actively opportunities X the pipeline track drive XX and strategic at deals domestically from to of on activity the growth M&A complemented and acquisition remain tuck-in and We evaluating M&A months XXXX. growth We're closed

quarter, margins we growth, efficiency more year. operational margin to on but part important support track made Ken culture. temper improvement will deliver is detail, Beyond our bit remain our for strategy growth a of in discuss dedication and healthy we long-term continuous but profitability to improvement did objectives and and an in the investments to the

Chairman Chairman Wilson of of at transition and Rollins announced Board. our yesterday's accordance release, will Emeritus, the long-term In leadership a as succeed Executive to the Chairman transition Executive planned Board company's In with him Gary John also leadership succession Directors. will we Executive plan, from

been to forward look to over active our rest our years. the an in Annual role responsibility. Board I've the CEO transitioned to Meeting I term future. the guidance work has the increasing in have to continued X-year and engaged of last Board. John, been X positions XX to experience a have with of as known as our for elected of we XXXX continuing invaluable with for XXXX and company our during our me various will of since was member John Gary be years, and and I to success company Gary position John his continue and

business our where about excited we're stands closing, In today.

each around solid, on their continuous teammates commitment healthy are and staffing profitable for is want ongoing team improvement levels driving to of thank our Our are the focused XX,XXX-plus world markets our customers. I to and growth. our

turn now Ken? to the call Ken. over I'll

Kenneth Krause

Thank and you, Jerry, everyone. good morning,

delivered X delivered investments in We the and we've we've points up metrics across now year-over-year results. EBITDA basis double-digit solid margin significant all despite months into here major improvement Year-to-date, XXXX, and financial QX. making XX P&L in improvement are business

to of our we in while a and our of is dividend, nearly our approximately Cash the to we commitment XXXX earlier free capital have with disciplined enabling meaningfully reflection week. business. XX% since shareholders have to XX% invest our flow increase by year-to-date, continues increase, of beginning a our the dividend this future. With continuing ongoing be regular and to balanced allocation, this our growing XX% in to the cash announced which flow we strong raised confidence growth to return approach This capital

Looking the third closer at quarter.

Organic In team range service revenues termite of residential, also in and the revenue exceptionally portfolio Our of high growth We ancillary and well growth control residential with XX.X%. of of delivered the termite X.X% year-over-year, growth X.X% increased executed X.X% of the healthy by good end and our discussed increased X.X%, this X% across with was quarter, and third commercial growth area in the to at of year. QX and growth X% rose we've XX.X% our across ancillary organic business. X% offerings. delivered commercial in pest X.X%, the each

Turning to profitability.

versus points XX last basis up year. XX%, were margins gross Our

were This materials and as people as costs in revenue of leverage SG&A well offset as Quarterly investments last our positive was previously equation. earnings driven uptick primarily growth to price in adjusted our versus year. XXX basis and advertising discussed supplies call. We initiatives and continue the the expected cost incremental during by to we be fleet. increased from in people QX percentage support by by on that Pressures spend a incremental investments points

operating GAAP up quarter X.X% income $XXX down Operating XX.X%, million, were Third was XX points margins year-over-year. basis year-over-year.

up were year, for X% and approximately and fourth people incremental ETR an incremental EBITDA quarter the for quarter, just a XX EBITDA effective the Margins to representing quarter, was a investments which margin. margins last tax Third in XX% million, and approximately adjusted reflecting over XX.X% points down expect basis versus quarter. in were $XXX XX.X% and the implies in growth rate we was continue programs during the over quarter. The of XX% is year, rate that XX% the adjusted

interest the ago and track and growth from investments solid despite $X.XX the income million quarter the ago. X.X% share, same to income initiatives. per per making adjustments, for adjusted profile. or share period full margin certain remain from the per was $XXX growth-oriented X% are period Quarterly $X.XX a same nearly was share, a $XXX profitability year deliver million the net increasing we on a costs for higher an $X.XX improving level healthy or net driven GAAP We in and year Accounting year by of for non-GAAP increasing

to focus in attractive business continue on markets. while in our capturing and our growth investing improvements We further end very driving

dividends XXX% Turning the We flow the million flow to healthy to quarter cash $XX $XXX have million, made $XXX paid was made the balance quarter. Quarterly returned million Free very in sheet. for cash $XX year. up dividend. flow was conversion XX% Year-to-date, and shareholders last our XXX% a and cash and year-to-date. million, we in acquisitions versus totaling and acquisitions million through of we $XXX

consecutive represents Additionally, dividend this decades increase just increases dividend had X announced payments. we to XX% a in annual This earlier over week. of our

to well gross Xx below and Debt leverage is net level. on EBITDA a

sheet and allocation. our approach committed and are to balance balanced positioned is continue Our capital maintain healthy, we to to well

continuous investing modernization we In continue to while our growth closing, on executing and focus initiatives. improvement on for

customers with quarter we last We are healthy our to and organic experience. our year committed the customer investing the demand, providing of with starting in people and the remain best

call I'll that, Jerry. back the to over turn With

Jerry Gahlhoff

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

Operator

Our the Instructions] with Tim William Blair. of question first Mulrooney line comes [Operator from

Timothy Mulrooney

I a healthy wanted of about Still that. I over that, So the market, to residential ask X organic, It's maybe indicative year-to-date. X% slightly -- years. last but guess we've recognize seen I several what below

could would I'm health just you maybe of consumer So characterize stream recurring between growth onetime sales? And revenue today? that your break down how curious, and the you the

Kenneth Krause

you talked We for very X% remain also pretty organic business, business. Thanks at in the and business, with we're When here quarter we When Tim. the confident look recurring and at it's dive appreciate the we to we that. revenue We the growth optimistic, residential X%. X.X% very look to of the our overall closer X.X% delivered in in outlook. the year-to-date. when continue that an at question. Sure, especially We in area growth we the performance, about look the pleased

And on spoke we've through part public residential been webcast That's and growth for X-plus we that's the we about that fact September, coming the better revenue sector. we seeing a in Back the recurring of where percent year. talked were where the finished.

the look the business residential pretty sector. in quarter, in that of effects the quarter. pleased with pointed hurricane the the level in we the out of the revenue to had that late fact unfortunately all deal so we're recurring Jerry And growth, I especially When at with

hurricane, so and growth. impact happened But if result you of that million had probably on set $X that look what a as about at revenue or you aside a it

And have been about X.X%, higher the have X% that the high the we slightly to business. probably talked that would the growth end, so delivered have we in than closer would organic

exceptional overall, pleased is delivering quarter. with performance. team an doing The So yet at job the very remain another we

Jerry Gahlhoff

other a health acceptance see appear residential strong in cross-sell our and the and still of us. to the growth termite does ancillary, good consumer things. And campaigns good of We

that's So in if with marketing, really trying that's residential it's onetime the drive we're leads. there's the anything And recurring, what more inconsistent, piece. quality to investing been

of of any with is type That's what the go fourth quarter try next of the streams. the base to door-to-door, we back year we other investments off in quarter And the year. the into create us first third head end in and we we our as to invest to revenue in that the as is channel bigger recurring made will quarter and for customer pay

Timothy Mulrooney

having to gears when really a because, a I you're from it lot just helpful of I'm any like ago That's LTM switch we're remember an you basis, of really at on margins, looking standpoint. Okay. you're really more right? Ken, like months if think the at incremental color. target going about trying that's with I a conversation business, thinking it quickly analyzing that particular about of look quarter but not that So that in how hit range, to kind you couple

So incremental the I guess different basis, my to at an line Or essentially target incremental be question you your that year? given might margins is, on the look year in range full for with expect we this investments? if them be do LTM

Kenneth Krause

question, the Tim. for Thanks

bit you is little more you the you and on that's that fact, XX% bit level. in a peel With selling in see XX%, unpack little confident at incremental margins remain we like should the margins spent or to gross a a we look that and continue And quarter closer, the our at look the contribution in you and We of generating outlook performance, back incremental marketing. the approximating it when business margins. performance feel be what

saw We Jerry grow alluding just opportunity market to in about. spoke our attractive what and to a and an business, just very growth invest

a So spent little we there. bit more

If have aside, we rate of along start you on with see we be the made the an investments in margin that XX% side some tech here that the accelerate quarter. our would right you'd around business, that in to the set incremental

XX% our deliver in So longer term. incremental margins plus continue confident remain we to ability to

Jerry Gahlhoff

quarter this of issue more the is of at Yes, we timing anything QX. more a end as indicated than

Kenneth Krause

Yes.

Operator

Our next of Toni question comes from Stanley. Kaplan Morgan with the line

Toni Kaplan

ask wanted about margin. to also I

the where a just of could more hiring investing And expect in would if we the further up and be mentioned and to That want great. people. of that Or you investment about be to be? most in you quarters? which was this growth future catch investments talk more would segments best. You you're Should

Kenneth Krause

growth is Thanks a question, business. investments, Sure. the Toni. for look we It's at market. a the this growth When

We see continue growth opportunities. great to

we made to this going -- business. out our When service of certainly getting unpack would have our lead One into service the side continue importance look technicians. side our X invest Because know starting leads and converted or our our we the business. and we we're in starts, X is back the of the invested go service I getting and in lenses. So on through them investments I to quarter, at

point headwind a That's probably gross quarter. XX margins in about basis on the

sales sales that made here our of our fact our second the The and people. commercial combined area engine we that area business residential. a talked in remains We've our business sales investments is about very and our with our important

investing with here the we're disproportionately end that the we increased that about the in and the tune of you spend through along quarter come our so basis points. And had business, sales to of in saw XXX advertising

see So of May. business at various don't we invest talked about you level in investment quarter, going Investor probably but this that back us following Day expect to that in single back strategic every our the you're initiatives

Jerry Gahlhoff

compared thinking XXXX just XXXX add color back just Orkin in And when -- a to back staffing of QX just itself. look little that, to our on levels, to peeling I to at

are the where to invest think we and If market, difficult data for slow where coverage continue to do data and hey, need to we we that opportunity we've have opportunities commercial the You at on are, that certainly have side, the penetration given places penetrated -- say, to gets we're people the right the or looking got and is adequate the there. that that it where right the we sets going good the will down. scale,

consumer cross-sell, we and to our long find we the so continue those that staffing in from investments then investment, a then business, things, double services, there, the the standpoint a that up continue selling to as commercial to digits we're And is help And is the of side the But data that. very you results. we'll and let that opportunities services we'll holds the kinds make there. the buying those doing market dictate us the worthwhile is as be see like residential and side, will termite, scalability taking And on do operationally as it. just how ancillary

Toni Kaplan

your And pricing the wanted to about about as of into year. year we next strategy Perfect. the ask I end thinking approach and

I couple years bit been the last inflation it's and unique think had in terms little of environment the we've been a of a we of then in in cooling.

continuing bit price I on stuff of you past on into you know when level of little Just So we've been thinking side about at the your XXXX that? the price Do it? see are higher of you're couple higher-than-normal a years. like in sort and that increases how looking data

Jerry Gahlhoff

Yes.

be in we service. for continuing that, our scares -- well. us from rewarded Ken there's that be in room and a see I and understand a price our of should reward And we get from in in off just what So increase data our what and year, we're -- recently hours that there spent price this a been field anything if together for should to about reviewing we the consumer not that good job, those fair data the rewarded results as doing technicians for and the

change us we've in from indicated seen anything you. the cause would we've anything not course to already to that that data So

Kenneth Krause

we've to able an but with internally should We And recently also consistently look at CPI, should in couple rewarded. no of gives reason step level pricing pare back. CPI be both talked plus seen pricing and is of this we've we you the essential about that last to reward back be No, be X.X% When back to able And roughly CPI technicians and the service feel years. on pricing. coming externally. we service, like the us our that

Operator

Fargo. the Our Wells line Jason Haas next from of question comes with

Unknown Analyst

side. ask is on commercial the wanted Jason I to on for This [indiscernible] Hass.

adding able a the eventual to single brands channel? there I us and there's of Just terms being any plans And force? capitalize can the there the just on division. margin of sales across the a think create strategy second around update to digital splitting branches multiple in you to remind opportunity media

Jerry Gahlhoff

we're probably the margin appealing to and on customer even some opening from on we're we a to commercial -- business, on just drive X your how point new another We of possible types the And going Yes. side, long what's runway pretty continue or to in and branches. tends stickier And side business. first still things, the have side innings structure -- that in margin those and standpoint, division, in opportunity there we a to commercial of very those still invest a commercial the open X of to continue base and the side there well as about opportunities. how that

early commercial the we So but like still the just, see I And good we're future nothing in stages. that from on things said, strategy.

Unknown Analyst

maybe And of the that wondering the relative seeing similarities advertising hear. just call in maybe commercial accounts and That's side national take to the you to great guys out just Awesome. SMEs can there? And you're then between for on differences about trends SMEs. the of you resi if talk your would the business, or

Jerry Gahlhoff

strategy standpoint, space don't strategy I on been that within brand shift been making I to more of do in standpoint dollars into from we've any those -- the in think that space there. from sort a an commercial marketing anything how lines allocated to commercial environment that. any I there's effort, Orkin the along think or But we've a competitive the think significant competitive or -- the significant we've been focus and side anything there's And shift seen. a especially our go-to-market don't conservative more advertising ourselves

Kenneth Krause

in Orkin Canadian we're we're is performance But out good to results continues talking and Canada, heading up side business I our just in our was seeing The and seeing about at up of Rob Scott nice coming also our talking there. Weaver business and... Quinn to business team do commercial the commercial well. yesterday leader, he's the

Jerry Gahlhoff

business. commercial a Mostly

Kenneth Krause

Substantially all commercial.

markets. of good across results those both so really And

Operator

from with of Markets. question the comes Our Ashish line RBC next Sabadra Capital

David Paige Papadogonas

David untapped residential just is in have. on that to A guess, maybe on the the results. on outside -- Congrats or question Paige current I you potential termite that for space company looking This ancillary good of is capitalize Ashish. that the the other operators and you

Jerry Gahlhoff

We're that looking always home to. and Yes. for expand opportunities around services new maybe the we can new and in

construction nature of the are certain things house in and pests that. like And type on those of or types based some geographic of

of to there -- of one that sales nothing staff there's continuation than adding for seen So number revolutionary service anything other been with more haven't us. the more we've increase the than customers

so adding those home ancillary to our that's of inspectors continue recurring why be another to And successful we selling opportunity sales services. more And termite. offer types is great

We to lot continue termite of cross-selling have campaigns. that through control a have customers have offer to that control that pest that service can we don't cross-marketing,

So we're of that we're works. business. to drive pretty opportunity continuing invest the good and to much at so There's just what part sticking there, and

David Paige Papadogonas

cash Great. targeting? Anything generation, just Okay. robust the inorganic terms low And we terms on or that be -- geographies the investment, a in free should follow-up mind for there debt verticals in keep of in given you'd leverage. of

Kenneth Krause

there M&A. to going nothing we're to noteworthy capital other continue deploy than No, and

so continue been we us difference growing brands. to X% delivering It's ourselves and large a you X% to M&A in bring do remain how teams for such we've fragmented, that market, treat area. the from we markets, of each meaningful from But committed into treat continue the an and we're market, remain so able to incredibly a of much markets. we market, on to competition fold terms to And certainly growth the that we control revenue and the opportunity. that separate But to We acquisitions a very pest see by new such how going in focus our attractive that's the have time. have to a time healthy, Markets year.

Operator

question Tong of Sachs. from next Our line the with George comes Goldman

Keen Fai Tong

Hurricane which operations discuss XQ? to disruptions week whether in quarter. the this during of parts Can the and of any expect seeing mentioned business Helene the the spillover most You last from effect you you impacted

Jerry Gahlhoff

Northwest, of up through parts Coast presence, the had the pushed the of of part tornadoes really coastal the Southeast obviously, Coast Florida. like southeast Florida the brands in we areas of in -- storm had the brands both too States, as So central of Coast Florida, well United that HomeTeam strong and Orkin have the all Eastern a it Florida West was as as the East and of in where

a days. lot there a So going was lot there. We of had closures several on branch for

get they're on as prepared sure the we focus if storms prepare, work and prepare. a faster our know letting making We are people place are good more that the and to themselves. can back we the for in people We people coming respond

on more of then closures several up We feet back So Helene. get challenges. after days. And a significantly our that for you we lot another had one branch caused got

in Talking the in it fourth very number -- field, early to one, happened in quarter people our the the quarter.

respond time recover. us at But future, October of So anything there, I'm U.S. immediate that's pause a severe gives be gives and really -- We've too about it I the from. the and will of losses to we've sure looked recover that customer forecast the some quarter, don't seen us there? plenty that and coast. coastal fourth in there's can't lot along there think Ken, the the is nothing our that Southeast for we

Kenneth Krause

the impacting of have to we quarter question To the growing But impact earlier because seen in not of regions one coming of Southeast, the last of think probably at slower probably the that even the hurricane the through did impact in organic would the as we quarter. days, really that not do outlook. call, if late No, opposed we on I couple you outlook stronger the growth it the the have the quarter, all had was the that Not much. X.X%. hurricane look

as said, have time in in like, us. think it to make we up here enough what But October. Jerry had this quarter we for left we So we did the outlook, impact feel about as

Keen Fai Tong

step the helpful. will growth up spend? can levels would XQ saw if elaborate investments market it. investments, support remain you going to forward it assess elevated on you to your conditions then at And what you relates growth possibility That's it? the Got as this How quarter that you prompted that

Kenneth Krause

the were Market organic Leads hope through. us I thing gave X% the that think healthy. coming fact was the very that seeing growth was most we were strong.

we continue to confidence that of that, at see brands it's the pace, leaders, business the same the identify Pat single to certain investments provided were able and invest. So and one it's investing certain And our in but we Stanford, level I and of did areas Jerry make areas. more we're not and to and certainly significant in every

And what so that's came through. really

the invest As what firmly yes, most and outlook going we're our to continue this this a a far order And and steps pace This successful, opportunity. be at invest. we're is believe to certainly market. next to capturing going go, point, customers. but additional We as people growth to going we -- say we've got are we is can't in growth in in invest to to

Jerry Gahlhoff

quarter ringing the think is near to much I phones the of Because as do aren't the quarter acquire your they And the in the build you part want third quarter, base. in that fourth first algorithm second as season. customers in and peak and

comfortable bread significantly serve. me quarter knowing with higher very base into to QX the strong. and That butter is you that in quarter QX, grow in having your outlook customer healthy where in So first which and a and that's your as is you the base, makes base and customer of customer XXXX, go recurring the and the is so -- fourth

Operator

Aadit with of line Stifel. Shrestha comes next question from Our the

Aadit Shrestha

'XX? price. of alone? on XQ expect FY XQ to trend what would in the let's a And trend back in from you 'XX? would say, of cost 'XX going versus, spread How that you sort expect price sort expansion recurring did similar And a margin spread just Just basis,

Kenneth Krause

of this when we If at our points I XX basis invested and But improve. in you're you will increase say area. of in the gross in price and terms XXXX this X% in X% spread. opportunity points just margin. be should at the basis getting to to quarter, quarter, what point Hard service unpacked improvement yet margin But see we look business, XX had I margins

good set of able XX to quarter-to-quarter we'll aside, in that I you improvement of basis, had And to about continue So can know do leverage when It that hopeful a margin. from forward. points in pace as to that well coming you going things that be we're the basis was see. shift. as gross quarter deliver But you through

Aadit Shrestha

just All you growth see single growth right. investing of done been and that in XXXX the as well, this into the high what you've you've follow-up. spend a organic making. digits of pretty business? sales has of that investments growth Commercial already, sort been And do been just of -- because as And sort you've strong because

Kenneth Krause

communicated would I a Day answer in at we at is question, to really our look think grow business. overall that our see plan to than and faster Investor what we hope back And May. our business rate commercial at

profile of think business should to the overall little You growth investments be the to might see commercial business as we near we're making. and resi a bit slower time organic term about from time, the but the overall your accretive

Operator

[Operator Josh Our the Instructions] of next from Chan line comes with question UBS.

Unknown Analyst

[indiscernible].

you people season? next people of be juncture to a the timing Just little of for at this of trying Or hiring, to terms you could decision trying address bit your are time get up to Were you timing? just hire In that talk maybe year, would a about shortage? unpack to great. the ramp of the the

Jerry Gahlhoff

Yes.

on don't front? you a from I talking more sales staffing, the sales are staffing think when the or -- you about So technician

Unknown Analyst

maybe the quarter both, third It in to something as like you of that. curious hiring in kind on opposed invested in your people Yes. spring, like so would the sounds thoughts be

Jerry Gahlhoff

Yes.

number that we'll quarter and And you occur third more have always those technicians. you're the route, and things that And time were could of things maintain towards balance end lines. where those like of toward if like splits add the usually, amount you along say, -- trying to the growth those of technician's or So that, that's customers we the that's season, -- route in -- do add add. route have right the openings right customers service a and on, right the splits things that, and and branch of to

hired one of On the fast several the the cognizant how to. you of how fast year-round sales and can you right years can and I we What side, like taken we're continuing train last the things is over have scale, really is amount. mentioned,

So we're train. of hiring trying a approach trying onetime a to take year, to bunch a than rather balanced

that easier that people year you're a X, is XX a the in need is you in and a adding rate hiring because and Let's -- to putting say, it little versus X it's your success add more a ramp in challenging. XX train XXX hiring try it time XX and up XX you class and than and classes of quarter to to them to have attention

hiring. a quarter, the more And fourth the before again home will tend those making -- strategically year. head that the season. do we we there's a and I lot hires inspectors balanced when say how add we how to usually frame sales into residential time less be we So in speaking, time taken that will February will we side, we generally means hires time. throughout approach the It to on of on the especially January, begin though, in onboard we've and get over

year-round it's the of type bit a event. on commercial a side, of While more little

Kenneth Krause

in look that, just you leverage that at you what in saw gained interesting It's because Jerry, say was quarter, with areas we you finish we the and if those September.

earlier much significant you through in see made as in the And our August. as and -- July in were investments significant We coming of did third September didn't so quarter. investment more more

Jerry Gahlhoff

of QX. front-end a in the down, a ken, lot was in it good loaded quarter the And early that point, of of very wind part then yes. kind we That's because

Unknown Analyst

lot on those And the the talk do months advertising spend? returns kind about of of returns there. advertising or Okay. have related spending, really then track sense. over XX metric appreciate of kind last, That could color And Some you on you to changed it, advertising? a call to makes the I metrics so? whether X the

Jerry Gahlhoff

particular so measure key and we or look off. the what the little Yes. on when channel, you We return spent makes that's do at metric. And in That's dynamic, QX, where spend a roll -- a less. ad digital if

and space to in the You're at leads making looking drive looking you're adjustments. the cost at you're digital market, the the

hold decide may You to off.

I'm and -- some this may regional You wait to competitors some while have back a for doing off and just settle little you hey, down. to things, for maybe local going say, there's

to in the season -- later quarter on a customer going then a can lower cost of and where little more then invest you're going you into we're to your And little drive and the spend. bit ad third a return on better acquisition

at amount years, say, we a going said of continue record, like again, well committed And our going -- that. such too have to percent point we're for looking to been be in broken we've still similar always manage those well, to I revenue this on as to that pretty advertising we're of been spend have as Orkin but to disciplined a the able revenue, that know that costs a a percent very a spend amount. of to percent as revenue that of brand, they're we So

to to do lower that, do a it's little strive But we've the those in always with got to year-to-year got dollars, order do So at more to we've more -- acquire cost. dollars customers a business grows. in as

-- that team decisions is our metric that on metric spend behind. makes return So on a and that's is very a that focused

Operator

Our Jefferies. line Moore next of Stephanie the with question from comes

Unknown Analyst

you for Salmon modernization ] you guys SG&A a calling curious, Stephanie if context guys in is just little cost-cutting Moore. little specifically making. more expenses bit Peter could M&A I progress initiatives This curious I developing you XQ. a how give those are and I'm know talked bit on are of was about [ the expenses,

Kenneth Krause

make to good that the look progress. see side at you administrative presentation, to improve. continue we continues earnings the Yes, When you'll

as to can see pleased the look that sales, with we at performance. terms But modernization it to continue in in business. pretty area. ways of We're improvements of we continue that percentage our we continue in of slight so invest a And to the

pretty seen And dollars the so restructuring -- the little we've a ago happy with we over a overall, year on but now. returns we're spent

Operator

comes Redburn Our line Atlantic. of from next question Davies the Oliver with

Oliver Davies

to it you've investments made, into to organic Just becoming growth kind rates? the Or to fair given would expect and thinking those kind be of is more it above-market year, guess X% of to assume the from accelerate next maintain I costly range? X% growth you'd

Kenneth Krause

level closer it's and comment. growth, I'm for ready the X%. in seeing to up seeing. going opposed that we're growth growth the to growth as into to with I'm from X% trending sure we're especially increased happy that of not or our you a the pretty pretty you're pace -- of quarter look organic sign with pretty It's we're returns a of But X% not I'm question But happy we're of when business. to sure X%, standpoint a at if year. next with we're happy the

Jerry Gahlhoff

drive need I that invested order of that more should us business at would I some cost the those levels sort there's wouldn't that we in in that advertising in selling to would be don't to think And growth this that maintain those increase rates. expense growth. to see of or anticipate point achieving

Oliver Davies

Great. on side? on, guess, of you both in of back sort the that sales mentioned and Okay. end quarter. of I eased just the investment digital then following kind advertising is And true the the

Kenneth Krause

generally through. big we we that. that we investing. leverage and we in when fact the saw, what why saw about Yes, more the through investment on were what talked more than of that July in might we we is is September mid-September, what were big why And and just true. see board, here webcast reason We What is you come August. in looking public come because saw A model reason our in that's August. numbers the checking across July saw and the the you But at saw

Operator

to the at questions And back to floor management we further would turn have this closing I time. no the like remarks. for

Jerry Gahlhoff

our you look call company speaking appreciate and you, us We our fourth for on early forward quarter in your joining Thank to with next earnings everyone, interest year. today.

Operator

teleconference. your today's thank conclude We does This you you. participation. for Thank

time. lines You may disconnect at your this

Rollins (ROL) 24 Oct 242024 Q3 Earnings call transcript