The following is a summary of the Rollins, Inc. (ROL) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Rollins, Inc. reported an increase in Q1 revenue by nearly 14% to $748 million.

• The company saw growth in all major service lines, with Residential revenue rising by 16.5%, Commercial by 11.4%, and Termite by 11.7% this quarter.

• Rollins closed 12 deals in the first quarter and expects to deliver at least 2% of growth from M&A activity in 2024.

• Adjusted operating margins improved by 130 basis points to 18.4%.

• The company reported Q1 GAAP net income of $94 million or $0.19 per share, an increase from $0.18 per share in the same period a year ago.

• Rollins' free cash flow grew 29%, showcasing strong liquidity.

Business Progress:

• Strategically using analytics has contributed to another quarter of double-digit commercial growth.

• Rollins continues to invest in its sales force and maintains aggressive organic growth along with strategic M&A.

• The board of directors has been restructured, and safety training has been emphasized leading to fewer recorded incidents.

• Investments have been more intensive in Q1 to bolster growth, and the same strategy is planned for Q2.

• Despite increased carrying costs primarily related to employee compensation, the company effectively implemented a price increase of 3% to 4%.

• Rollins has been facing challenges in hiring and training but is formulating strategies to overcome this.

• SG&A improved by 20 basis points as a percentage of sales despite 50 basis points being spent on growth-related investment.

More details: Rollins IR

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