Rollins Inc (ROL) 2022 Q2 法說會逐字稿

Greetings. Welcome to Rollins Inc. Second Quarter 2022 Earnings Conference Call.

問候。歡迎來到羅林斯公司 2022 年第二季度收益電話會議。

(Operator Instructions)

（操作員說明）

As a reminder, this conference is being recorded. It is now my pleasure to introduce Joe Calabrese. Thank you. You may begin.

提醒一下，本次會議正在錄製中。現在我很高興介紹 Joe Calabrese。謝謝你。你可以開始了。

Thank you. By now, you should have all received a copy of the press release. However, if anyone is missing a copy and would like to receive one, please contact our office at (212) 827-3746, and we'll send you a release and make sure you're on the company's distribution list.

謝謝你。到目前為止，你們應該都收到了新聞稿的副本。但是，如果有人遺失了一份副本並希望收到一份，請致電 (212) 827-3746 聯繫我們的辦公室，我們將向您發送一份新聞稿，並確保您在公司的分發名單上。

There will be a replay of the call, which will begin 1 hour after the call and run for 1 week. The replay can be accessed by dialing (877) 660-6853 with the pass code 137-31-028. Additionally, the call is being webcast at www.rollins.com and a replay will be available for 90 days.

將在通話後 1 小時開始重播通話，並持續 1 週。可以通過使用密碼 137-31-028 撥打 (877) 660-6853 訪問重播。此外，此次電話會議正在 www.rollins.com 上進行網絡直播，並在 90 天內提供重播。

The company is also offering investors a supporting slide presentation, which can be found on Rollins website at www.rollins.com. We'll be following that slide presentation on our call this morning and encourage you to view that with us.

該公司還為投資者提供支持幻燈片演示，可在羅林斯網站 www.rollins.com 上找到。我們將在今天早上的電話會議上關注該幻燈片演示，並鼓勵您與我們一起查看。

On the line with me today and speaking are Gary Rollins, Rollins Chairman and Chief Executive Officer; John Wilson, Vice Chairman; Jerry Gahlhoff Jr., President and Chief Operating Officer; and Julie Bimmerman, Interim Chief Financial Officer, Group Vice President and Treasurer.

今天與我在線並發言的是羅林斯董事長兼首席執行官加里羅林斯；約翰·威爾遜，副主席； Jerry Gahlhoff Jr.，總裁兼首席運營官；以及臨時首席財務官、集團副總裁兼財務主管 Julie Bimmerman。

Management will make some operating remarks, and we'll open the line for your questions. Gary, would you like to begin?

管理層將發表一些運營評論，我們將為您的問題打開熱線。加里，你想開始嗎？

Yes. Thank you, Joe, and good morning. We appreciate all of you joining us for our second quarter 2022 investor call. Julie will read our forward-looking statement disclaimer, and then we'll begin.

是的。謝謝你，喬，早上好。我們感謝大家加入我們的 2022 年第二季度投資者電話會議。朱莉將閱讀我們的前瞻性聲明免責聲明，然後我們將開始。

Our earnings release discusses our business outlook and contains certain forward-looking statements. These particular forward-looking statements and all other statements that have been made on this call, excluding historical facts, are subject to a number of risks and uncertainties and actual results may differ materially from any statement we make today. Please refer to today's press release and our SEC filings, including the Risk Factors section of our Form 10-K for the year ended December 31, 2021, for more information and the risk factors that could cause actual results to differ.

我們的收益發布討論了我們的業務前景並包含某些前瞻性陳述。這些特定的前瞻性陳述和在本次電話會議上做出的所有其他陳述，不包括歷史事實，都受到許多風險和不確定性的影響，實際結果可能與我們今天做出的任何陳述存在重大差異。請參閱今天的新聞稿和我們提交給 SEC 的文件，包括我們截至 2021 年 12 月 31 日止年度的 10-K 表格的風險因素部分，了解更多信息以及可能導致實際結果不同的風險因素。

Thank you, Julie. I'm very pleased to report that Rollins delivered a very strong financial performance in the second quarter and remains well positioned to deliver on our long-term business objectives. On today's call, I'm excited to share our strategic management succession plan that has been unanimously approved by our Board of Directors. We firmly believe that this is the right time to initiate this important leadership transition.

謝謝你，朱莉。我很高興地報告說，羅林斯在第二季度實現了非常強勁的財務業績，並且仍然處於實現我們長期業務目標的有利位置。在今天的電話會議上，我很高興分享我們董事會一致批准的戰略管理繼任計劃。我們堅信，現在正是啟動這一重要領導層交接的正確時機。

Effective January 1, 2023, Jerry Gahlhoff, the Rollins Chief Operating Officer and President, will be elevated to the position of Chief Executive Officer or CEO. I'll remain Chairman of the Board, and Jerry will continue in his current role as President of Rollins. The following 5 months will be transitional while Jerry becomes more familiar with the areas involving his future responsibilities.

自 2023 年 1 月 1 日起，羅林斯首席運營官兼總裁 Jerry Gahlhoff 將被提升為首席執行官或首席執行官。我將繼續擔任董事會主席，而傑里將繼續擔任目前的羅林斯總裁一職。接下來的 5 個月將是過渡期，而 Jerry 將更加熟悉涉及他未來職責的領域。

The company is well positioned financially and operationally. We have a proven management team, leading brands and a very strong culture. I'm extremely confident in the future of Rollins and look forward to working closely with Jerry to ensure a smooth transition of responsibilities.

該公司在財務和運營方面處於有利地位。我們擁有成熟的管理團隊、領先的品牌和非常強大的文化。我對羅林斯的未來充滿信心，期待與傑里密切合作，確保職責的順利交接。

While I'll be moving away from the day-to-day operations, as I continue serving as our company Chairman of the Board, I will remain active and focused on our business goals and strategic plans. As many of you know, Jerry has been with Rollins since the 2008 acquisition of HomeTeam. And he's been instrumental in our success. What most don't know is that Jerry grew up in an Orkin household as his father worked for the company for 26 years. His dad was a great employee. Jerry is an exceptional leader with great vision and a deep understanding of our industry and our customers. His years of service to Rollins has been marked by outstanding performance and accomplishments. He was promoted to Rollins President and Chief Operating Officer in 2020 and has had a unique opportunity to be intimately involved in most every facet of our organization.

雖然我將離開日常運營，但在繼續擔任公司董事會主席的同時，我將繼續保持活躍並專注於我們的業務目標和戰略計劃。眾所周知，自 2008 年收購 HomeTeam 以來，傑里一直在羅林斯工作。他在我們的成功中發揮了重要作用。大多數人不知道的是，Jerry 在一個 Orkin 家庭長大，因為他的父親在公司工作了 26 年。他的父親是一位出色的員工。 Jerry 是一位傑出的領導者，具有遠見卓識，對我們的行業和客戶有著深刻的理解。他多年為羅林斯服務的特點是出色的表現和成就。他於 2020 年晉升為羅林斯總裁兼首席運營官，並有一個獨特的機會密切參與我們組織的幾乎每個方面。

In 2021, Jerry joined the Rollins Board of Directors. His business acumen, leadership experience, strong sense of duty and his devotion to our company make him a natural fit to assume our President and Chief Executive Officer role. I have the utmost confidence that Jerry will continue to foster our strong company heritage record of accomplishments and promote the culture of Rollins.

2021 年，傑瑞加入了羅林斯董事會。他的商業頭腦、領導經驗、強烈的責任感和對我們公司的奉獻精神使他非常適合擔任我們的總裁兼首席執行官一職。我非常有信心傑里將繼續培養我們強大的公司傳統成就記錄並促進羅林斯的文化。

Let me now turn the call over to John Wilson, our Vice Chairman, who will provide some business updates. John?

現在讓我把電話轉給我們的副主席約翰威爾遜，他將提供一些業務更新。約翰？

Thank you, and good morning, everyone. On behalf of all of us here at Rollins, I would like to congratulate Jerry on his long successful tenure as Rollins CEO. Gary's 56-year career with our company has been marked by superior achievements and an unrelenting focus on our customers, our shareholders and our employees. He's a tremendous leader. And in addition to his impressive business results over the multiple decades, he has been steadfast in leading Rollins' high-performance culture. But the best part about this change is that he isn't going anywhere and will continue to be a valuable resource to all of us.

謝謝大家，大家早上好。我代表羅林斯的所有人，祝賀傑里在擔任羅林斯首席執行官期間取得的長期成功。 Gary 在我們公司 56 年的職業生涯以卓越的成就和對客戶、股東和員工的不懈關注為標誌。他是一位了不起的領袖。除了幾十年來令人印象深刻的業務成果外，他還堅定地領導著羅林斯的高績效文化。但這種變化最好的部分是他不會去任何地方，並將繼續成為我們所有人的寶貴資源。

Turning to our performance. We are pleased with our second quarter financial results with revenue increasing to $714 million and net income totaling $100 million or $0.20 per share. Overall, we experienced solid growth across our numerous pest management brands and continue to achieve strong levels of customer growth.

談到我們的表現。我們對第二季度的財務業績感到滿意，收入增加到 7.14 億美元，淨收入總計 1 億美元或每股 0.20 美元。總體而言，我們在眾多害蟲管理品牌中實現了穩健增長，並繼續實現強勁的客戶增長水平。

Finally, you've heard me say this many times, we regard our employees as our most important asset. They are an integral part of our success. As we continue to grow, we recognize the talented people have choices, and we want the Rollins brands to be a leading contender for that talent. Consistent with that approach, we're continually looking to improve our employee benefits and I'm pleased to announce that Rollins has partnered with Everside Health to offer an on-site health center located at our Atlanta home office.

最後，您已經多次聽到我說過，我們將員工視為我們最重要的資產。它們是我們成功不可或缺的一部分。隨著我們的不斷發展，我們認識到有才華的人有選擇，我們希望羅林斯品牌成為這些人才的主要競爭者。與這種方法一致，我們一直在尋求改善我們的員工福利，我很高興地宣布，Rollins 已與 Everside Health 合作，在我們亞特蘭大的總部提供一個現場健康中心。

This new health center offers convenient primary care services for everything from screenings and prevention to chronic disease management and urgent care for several thousand of our employees in the area. There are multiple benefits and features to this program, including same-day and next-day appointments, on-site lab draws, medications and immunizations, mental health services and the ability to reach a care team 24/7 for urgent needs.

這個新的健康中心為我們在該地區的數千名員工提供從篩查和預防到慢性病管理和緊急護理的各種便利的初級保健服務。該計劃有多種好處和特點，包括當日和次日預約、現場實驗室抽籤、藥物和免疫接種、心理健康服務以及24/7全天候聯繫護理團隊以解決緊急需求的能力。

In addition to our Atlanta facility, our U.S. employees have access to over 70 Everside Health clinics, and we are live in 37 states for virtual primary care. The safety and well-being of our employees is a top priority, and we believe offering this new benefit will lead to better health outcomes, allowing employees to live healthier lives.

除了我們在亞特蘭大的設施外，我們的美國員工還可以使用 70 多家 Everside Health 診所，我們在 37 個州提供虛擬初級保健服務。我們員工的安全和福祉是重中之重，我們相信提供這項新福利將帶來更好的健康結果，讓員工過上更健康的生活。

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

現在讓我將電話轉給 Jerry，他將提供有關我們業務的更多詳細信息。祝賀你，傑瑞。

Thank you, John. Hello, everyone. Before I get into our second quarter operating review, I would like to say a few words about Gary. As Gary mentioned, I came to Rollins through the HomeTeam acquisition in 2008. As many of you know, those can be tensed in uncertain times for those being acquired. Gary talked with me personally. His words and subsequent actions reassured me that I had found a home at Rollins and my experience here has been meaningful and worthwhile.

謝謝你，約翰。大家好。在進行第二季度的運營審查之前，我想對 Gary 說幾句。正如加里所說，我是在 2008 年通過 HomeTeam 收購來到羅林斯的。你們中的許多人都知道，對於那些被收購的人來說，在不確定的時期，這些可能會很緊張。加里親自與我交談。他的話和隨後的行動讓我確信我在羅林斯找到了一個家，我在這裡的經歷是有意義和值得的。

Over the past 14 years, I've learned so much from Gary, and there's one thing I'm sure of, he has an unwavering commitment to our company, our customers and our employees. The proof of this is in his actions and results. It's truly an honor to succeed Gary as CEO and lead this incredible company of more than 17,000 exceptional employees, each of whom brings a commitment to deliver the best for our customers every day. With Gary and John's continued guidance, I look forward to continuing to build on our great success as we begin this new chapter of the company's future.

在過去的 14 年裡，我從 Gary 那裡學到了很多東西，我確信一件事，他對我們的公司、我們的客戶和我們的員工有著堅定不移的承諾。他的行動和結果就是證明。能夠接替 Gary 擔任 CEO 並領導這家擁有 17,000 多名傑出員工的令人難以置信的公司，每一位員工都承諾每天為我們的客戶提供最好的服務，這真是一種榮幸。在 Gary 和 John 的持續指導下，我期待在我們開啟公司未來的新篇章時繼續取得巨大成功。

I'd now like to walk through our 2022 second quarter performance, focusing on items that directly impacted our operations during the period. Julie will address the non-GAAP adjustments a little later.

我現在想回顧一下我們 2022 年第二季度的業績，重點關注在此期間直接影響我們運營的項目。 Julie 稍後將討論非 GAAP 調整。

Looking at our financial results. Rollins second quarter 2022 was highlighted by revenue growth of 11.9% to $714 million compared to $638 million in last year's second quarter. Net income was $100.3 million or $0.20 per diluted share. This is compared to $98.9 million or $0.20 per diluted share for the same period in 2021. As mentioned, Julie will review GAAP and non-GAAP results as well as organic revenue growth numbers shortly. Operationally, during the quarter, all our business lines continued to experience solid growth. In fact, we grew double digits in all service lines. Residential pest control increased 11%, commercial pest control was up 11.2% and termite increased 15%. Keep in mind that this level of growth came on top of our company's highest historical recorded growth in Q2 last year of 15.3%.

看看我們的財務業績。羅林斯 2022 年第二季度的收入增長 11.9% 至 7.14 億美元，而去年第二季度為 6.38 億美元。淨收入為 1.003 億美元或每股攤薄收益 0.20 美元。相比之下，2021 年同期為 9890 萬美元或每股攤薄收益 0.20 美元。如前所述，朱莉將很快審查 GAAP 和非 GAAP 結果以及有機收入增長數字。在運營方面，本季度，我們所有的業務線繼續實現穩健增長。事實上，我們在所有服務領域都實現了兩位數的增長。住宅害蟲控制增加了 11%，商業害蟲控制增加了 11.2%，白蟻增加了 15%。請記住，這一增長水平高於我們公司去年第二季度 15.3% 的最高歷史記錄增長。

On the expense side, we continue to feel inflationary pressures during the second quarter from fleet-related costs like fuel and vehicle repairs and materials and supplies. I'll give insight on these as well as provide an update on the actions we've been implementing to mitigate these pressures.

在費用方面，我們在第二季度繼續感受到來自車隊相關成本（如燃料和車輛維修以及材料和供應）的通脹壓力。我將就這些問題提供見解，並提供我們為減輕這些壓力而採取的行動的最新情況。

While we're efficiently navigating through this period and believe that our proactive initiatives have helped, we're keeping a watchful eye on inflationary pressures, fuel costs and supply chain costs and how they may affect Rollins. Management of fuel expense is a notable example. As we grow, we improved customer density. And when coupled with our routing and scheduling technology initiatives, we continue to reduce our overall mileage between service visits, which lowers our fuel requirements. We saved over 5.8 million miles driven in the quarter or $1.3 million. This savings was slightly offset by increased average price per gallon over Q2 2021 of over $400,000, equating to net fuel savings of $875,000. This has also helped manage labor costs as our technicians have less unproductive windshield time, plus we've created a better job for them along the way.

雖然我們正在有效地度過這段時期，並相信我們的積極舉措有所幫助，但我們正在密切關注通脹壓力、燃料成本和供應鏈成本，以及它們可能如何影響羅林斯。燃料費用管理就是一個顯著的例子。隨著我們的成長，我們提高了客戶密度。再加上我們的路線和調度技術計劃，我們將繼續減少服務訪問之間的總里程，從而降低我們的燃料需求。我們在本季度節省了超過 580 萬英里的行駛里程或 130 萬美元。這一節省被 2021 年第二季度每加侖平均價格上漲超過 400,000 美元略微抵消，相當於淨燃料節省 875,000 美元。這也有助於管理勞動力成本，因為我們的技術人員減少了非生產性擋風玻璃的時間，而且我們在此過程中為他們創造了更好的工作。

As we move through the second half of 2022, we expect we'll see the ongoing benefits of these improvements. Furthermore, looking ahead, we're committed to enhancing the overall efficiency of our fleet while also reducing carbon emissions. In June, we announced that BMW Group ranked Rollins 15th out of the top 50 green fleets in the United States. This primarily reflects Rollins use of hybrid sedans that are being driven by our sales and management personnel. However, we recently began testing the use of light-duty hybrid trucks. Given their excellent fuel economy, we are focused on having a sizable uptick in our hybrid truck fleet by 2024.

隨著我們進入 2022 年下半年，我們預計我們將看到這些改進帶來的持續好處。此外，展望未來，我們致力於提高車隊的整體效率，同時減少碳排放。 6 月，我們宣佈在美國 50 強綠色車隊中，寶馬集團將羅林斯排在第 15 位。這主要反映了羅林斯使用由我們的銷售和管理人員推動的混合動力轎車。然而，我們最近開始測試輕型混合動力卡車的使用。鑑於其出色的燃油經濟性，我們的目標是到 2024 年大幅增加我們的混合動力卡車車隊。

Additionally, given recent technology advancements, we've been testing the use of battery-powered application equipment going from gas power to battery provides us with a compelling opportunity to reduce emissions without sacrificing the effectiveness of our service. We look forward to updating you on these initiatives in the quarters ahead.

此外，鑑於最近的技術進步，我們一直在測試從燃氣動力到電池的電池供電應用設備的使用，這為我們提供了一個在不犧牲服務有效性的情況下減少排放的令人信服的機會。我們期待在未來幾個季度向您更新這些舉措。

As you may recall from prior conference calls, we've been proactively addressing increased supply chain costs in our residential and commercial pest control materials and supplies. This includes termite and ancillary service offerings as well. We have solid long-term working relationships with our manufacturers and have deep visibility into the supply process, often a few levels up in the supply chain. In doing so, we're often able to achieve greater operational efficiencies and overall flexibility by not only having materials shipped quickly but also having real-time insights advising us when we need to order materials. We continue to seek opportunities to diversify through alternative suppliers and actively seek shipping and freight efficiencies.

您可能還記得之前的電話會議，我們一直在積極解決住宅和商業害蟲防治材料和用品中供應鏈成本增加的問題。這也包括白蟻和輔助服務產品。我們與製造商建立了穩固的長期合作關係，並且對供應過程有深入的了解，通常是供應鏈中的幾個層次。通過這樣做，我們通常能夠實現更高的運營效率和整體靈活性，不僅可以快速運送材料，還可以在需要訂購材料時獲得實時洞察建議。我們繼續尋求通過替代供應商實現多元化的機會，並積極尋求運輸和貨運效率。

On the subject of pricing, we successfully implemented our annual price increase programs earlier this year. As mentioned on our last conference call, aggressive service price increases were initiated within all our brands during April and May as compared to historical timing of the early summer months and prior years. We are already realizing a notable benefit from this initiative more than doubling our traditional 1% to 2% net growth levels from our past price increase programs. Overall, we saw little resistance from our customers on the higher price increases put into place, which is a confirmation of service satisfaction.

在定價方面，我們在今年早些時候成功實施了年度提價計劃。正如我們在上次電話會議中提到的，與初夏和前幾年的歷史時間相比，我們所有品牌在 4 月和 5 月都開始大幅提高服務價格。我們已經從這一舉措中實現了顯著收益，超過了過去提價計劃中傳統的 1% 至 2% 的淨增長水平的兩倍多。總體而言，我們看到客戶對更高的價格上漲幾乎沒有抵抗，這是對服務滿意度的確認。

Next, on our acquisition pipeline, it remains strong, and we have plenty of potential opportunities that we are actively pursuing. So far in 2022, we have completed 22 strategic acquisitions within the U.S., United Kingdom and Australia. In the U.K., we achieved an important milestone during the quarter with the acquisition of Europest. In addition to expanding our geographic footprint within the U.K., it is also our first location in Wales. Strategically, we now have full coverage within the United Kingdom, as this tuck-in transaction comes on the heels of another recent U.K. acquisition, NBC Environment, which provided our first locations within Scotland.

接下來，在我們的收購渠道上，它仍然很強勁，我們有很多我們正在積極尋求的潛在機會。到 2022 年為止，我們已經在美國、英國和澳大利亞完成了 22 次戰略收購。在英國，我們在本季度通過收購 Europest 實現了一個重要的里程碑。除了擴大我們在英國的地理足跡外，它也是我們在威爾士的第一個地點。從戰略上講，我們現在在英國境內進行了全面覆蓋，因為這次收購交易是在最近另一項英國收購 NBC Environment 之後進行的，NBC Environment 為我們在蘇格蘭提供了第一個地點。

Moving forward, Strategic acquisitions will continue to be an important component in our initiatives to further grow and expand our business.

展望未來，戰略收購將繼續成為我們進一步發展和擴大業務舉措的重要組成部分。

Before I turn it over to Julie, I want to emphasize how pleased we are with Rollins second quarter results and that we remain well positioned for 2022.

在我把它交給朱莉之前，我想強調我們對羅林斯第二季度的業績感到非常高興，並且我們在 2022 年保持良好的狀態。

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

我現在將把電話轉給朱莉。朱麗葉？

Thank you, Jerry. First, I would like to congratulate both Gary and Jerry on reaching the next pinnacles in their careers. Gary, your extraordinary impact on Rollins has been legendary. Jerry, you definitely have large shoes to fill as CEO. Jerry, also watching your career grow from our early days at HomeTeam to President of Rollins has been exciting, and I have no doubt that you will excel in this new role. I appreciate your trust and leadership through the years and cannot wait to see what the future holds.

謝謝你，傑瑞。首先，我要祝賀加里和傑里在他們的職業生涯中達到了下一個頂峰。加里，你對羅林斯的非凡影響是傳奇的。傑瑞，作為 CEO，你肯定有很多工作要做。傑里，看著你從早期在 HomeTeam 到羅林斯總裁的職業生涯也令人興奮，我毫不懷疑你會在這個新角色中表現出色。我感謝您多年來的信任和領導，迫不及待地想看看未來會怎樣。

So now on to the numbers. We delivered a strong second quarter highlighted by significant growth across many key financial metrics. As a reminder, we are including a slide deck on our website, which presents the numbers we discussed during today's earnings presentation. To view the deck, please go to rollins.com, click on News and Events and presentation. Our second quarter revenues of $714 million represented an increase of 11.9% actual exchange rate, 8.7% organic. For the constant exchange rate, the total revenue growth totaled 10.7% with 7.5% organic.

所以現在談談數字。我們實現了強勁的第二季度，許多關鍵財務指標的顯著增長突出了這一點。提醒一下，我們在我們的網站上包含了一個幻燈片，其中展示了我們在今天的收益演示中討論的數字。要查看該套牌，請訪問 rollins.com，單擊新聞和事件和演示文稿。我們第二季度的收入為 7.14 億美元，實際匯率增長 11.9%，有機增長 8.7%。對於固定匯率，總收入增長總計 10.7%，其中有機增長 7.5%。

As Jerry mentioned, residential, commercial and termite all presented strong double-digit growth for the quarter. Residential grew 11%, 7% organic. Commercial grew 11.2%, 9.3% organic. Lastly, we have termite, which grew 15% with 11.2% organic.

正如 Jerry 所說，住宅、商業和白蟻在本季度都呈現出強勁的兩位數增長。住宅增長 11%，有機增長 7%。商業增長 11.2%，有機增長 9.3%。最後，我們有白蟻，它增長了 15%，有機增長了 11.2%。

Now on to our income. For the second quarter and year-to-date, we are presenting adjusted EBITDA for 2021 for comparison purposes due to the impact of our gain on sale of several of our Clark properties of $450,000 in Q2 of last year, and $31.5 million year-to-date in 2021. Second quarter EBITDA of 2022 was $159.2 million or 1.2% over 2021 adjusted EBITDA of $157.3 million. Second quarter 2022 EPS was $0.20 per diluted share equal to 2021 adjusted EPS.

現在談談我們的收入。對於第二季度和年初至今，我們將提供 2021 年調整後的 EBITDA 以進行比較，因為我們在去年第二季度出售了 450,000 美元的克拉克物業收益和年初至今的 3150 萬美元的影響。 -日期為 2021 年。2022 年第二季度 EBITDA 為 1.592 億美元，比 2021 年調整後的 EBITDA 1.573 億美元增長 1.2%。 2022 年第二季度每股攤薄收益為 0.20 美元，等於 2021 年調整後每股收益。

Second quarter 2022 gross margin decreased to 52.8% or 0.5 point below last year. As mentioned, fleet created another quarter of strong headwinds in Q2 2022 primarily from fuel presenting an increase of $6.8 million and vehicle repairs of $1.7 million over last year. Fuel increases were driven by over a 50% increase in our average price paid per gallon in Q2 2022 over 2021. Vehicle repairs were up due to the continued delay in receipt of new vehicles from the manufacturers. We keep our trucks longer, forcing repairs outside of our norm. Combined, these fleet expenses -- these fleet expense increases equated to 0.9 point in additional cost, taking these fleet-related increases out of the equation, gross margin increased over last year.

2022 年第二季度毛利率下降至 52.8%，比去年低 0.5 個百分點。如前所述，車隊在 2022 年第二季度又造成了四分之一的強勁逆風，主要來自燃料，與去年相比增加了 680 萬美元和車輛維修 170 萬美元。與 2021 年相比，我們在 2022 年第二季度支付的每加侖平均價格上漲了 50% 以上，推動了燃料價格的上漲。由於持續延遲從製造商處收到新車，車輛維修量增加。我們讓我們的卡車更長，迫使維修超出我們的標準。綜合起來，這些車隊費用——這些車隊費用增加相當於額外成本的 0.9 個百分點，將這些與車隊相關的增加排除在外，毛利率比去年有所增加。

Sales, general, administrative, or SG&A as a percentage of revenue for Q2 2022 increased over 2021 by 2.1% to 30.8%. Travel was a contributor as this increased 65.7% over Q2 2021. This was due to a return to normalized levels for leadership travel to branch locations along with overall increased cost in air travel and rental cars. We also saw an increase in advertising from a combination of an increase in our advertising campaign to counteract the late arrival of spring along with the impact of a change in our process for estimating and accruing our advertising expenses. Aligning these costs with our high Q2 sales equated to an increase in advertising of 2% of revenues over Q2 2021. For the full year, we expect overall normalized historical spend levels for advertising.

2022 年第二季度銷售、一般、行政或 SG&A 佔收入的百分比比 2021 年增長 2.1% 至 30.8%。旅行是一個貢獻者，因為這比 2021 年第二季度增長了 65.7%。這是由於領導層前往分支機構的旅行恢復到正常水平，以及航空旅行和租車的總體成本增加。我們還看到廣告活動的增加，這是因為我們增加了廣告活動以抵消春天的遲到，以及我們估算和應計廣告費用的過程發生變化的影響。將這些成本與我們第二季度的高銷售額相結合，相當於廣告收入比 2021 年第二季度增加了 2%。對於全年，我們預計廣告的整體標準化歷史支出水平。

Now for a few notes regarding our cash flow. Our dividends Q2 2022, totaled $49.2 million or an increase of 22% over 2021, while cash used for acquisitions increased 218.7% to $36.4 million for 2022. We ended the current period with $221 million in cash, of which, $62.9 million was held by our foreign subsidiaries. Our free cash flow for Q2 was $119.4 million or an increase of 26.6% over last year. This increase was primarily driven by timing of income tax payments.

現在就我們的現金流做一些說明。我們 2022 年第二季度的股息總額為 4920 萬美元，比 2021 年增長 22%，而 2022 年用於收購的現金增長 218.7% 至 3640 萬美元。我們在本期結束時有 2.21 億美元現金，其中 6290 萬美元由我們的外國子公司。我們第二季度的自由現金流為 1.194 億美元，比去年增長 26.6%。這一增長主要是由所得稅支付的時間推動的。

Last, I'm pleased to share that yesterday, our Board of Directors approved a regular cash dividend of $0.10 per share that will be paid on September 9, 2022, to shareholders of record at the close of business August 10, 2022. This represents a 25% increase over the dividend paid in September 2021. The dividend increase reflects our strong performance in the second quarter of 2022, it situates our financial strength and the Board's confidence in our continued growth. Gary, I'll turn it back over to you.

最後，我很高興地分享，昨天，我們的董事會批准了每股 0.10 美元的定期現金股息，該股息將於 2022 年 9 月 9 日支付給在 2022 年 8 月 10 日營業結束時登記在冊的股東。這代表比 2021 年 9 月支付的股息增加 25%。股息增加反映了我們在 2022 年第二季度的強勁表現，它決定了我們的財務實力和董事會對我們持續增長的信心。加里，我會把它還給你。

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

謝謝你，朱莉。我們很樂意在這個時候回答任何問題。

(Operator Instructions)

（操作員說明）

Our first question is from Tim Mulrooney with William Blair.

我們的第一個問題來自 Tim Mulrooney 和 William Blair。

First, I just want to say to Gary, congratulations. Very few CEOs can boast the same level of tenure and success that you can and I look forward to staying in touch [regardless].

首先，我只想對 Gary 表示祝賀。很少有 CEO 能擁有與您相同的任期和成功水平，我期待與您保持聯繫 [無論如何]。

Thank you.

謝謝你。

First one, EBITDA margins were down a little bit more this quarter than I was expecting. And what was helpful last quarter as you guys bucketed these things for us. The primary buckets being fuel or I don't know if you want to call it, fleet, another major cost bucket is labor and another one is materials, if you were going to rank those headwinds in terms of the things that impacted your EBITDA margins the most and if there's any way to quantify it. I think that would be really helpful for investors, it certainly was very helpful for us last quarter.

首先，本季度的 EBITDA 利潤率比我預期的要低一些。當你們為我們收集這些東西時，上個季度有什麼幫助。主要成本桶是燃料，或者我不知道您是否想稱它為車隊，另一個主要成本桶是勞動力，另一個是材料，如果您要根據影響 EBITDA 利潤率的因素對這些不利因素進行排名最多，如果有任何方法可以量化它。我認為這對投資者來說真的很有幫助，上個季度對我們當然很有幫助。

Sure. Tim, this is Julie. So I'll jump in. So I would say the -- our largest impact was getting back to the advertising expenses we said, which was gain -- or excuse me, an increase of 2% of our revenues. And I do want to go ahead and go over this. This is where we updated our quarterly processes for estimating and accruing our advertising expenses to better reflect our shift to digital advertising.

當然。蒂姆，這是朱莉。所以我會加入。所以我想說 - 我們最大的影響是回到我們所說的廣告費用，這是收益 - 或者對不起，增加了我們收入的 2%。我確實想繼續討論這個問題。在這裡，我們更新了估算和累積廣告費用的季度流程，以更好地反映我們向數字廣告的轉變。

I do want to make a point on this, though, and this is the key point is this, we will maintain the normalized historical percentage of revenue spend for the advertising when you look at the year as a whole. So we are dealing with timing there. The next largest item would have been our fuel and the fuel itself was a $6.8 million increase over last year. So that was significant over Q2 of last year.

不過，我確實想就此說明一點，這是關鍵點，當您查看整個年度時，我們將保持廣告收入支出的正常化歷史百分比。所以我們正在處理那裡的時間安排。下一個最大的項目是我們的燃料，燃料本身比去年增加了 680 萬美元。因此，這比去年第二季度意義重大。

I would add that from a labor standpoint, we did a pretty good job of keeping service wages, in particular, relatively flat year-over-year. That really wasn't a significant driver of everything. It's heavily on what Julie mentioned.

我要補充一點，從勞工的角度來看，我們在保持服務工資方面做得很好，特別是與去年同期相比相對持平。這真的不是一切的重要驅動因素。這在很大程度上取決於朱莉提到的內容。

Okay. So I mean that's very consistent with what you said last quarter. I guess, labor had more disruption in January. But you were saying that, that wouldn't be as much of an issue going forward. It sounds like it's not, it's mostly fleet and advertising expense. So that's really helpful.

好的。所以我的意思是這與你上個季度所說的非常一致。我猜，勞動力在一月份受到了更多的干擾。但你說的是，這不會是一個很大的問題。聽起來不是，主要是車隊和廣告費用。所以這真的很有幫助。

January, it was driven by the COVID situation, which is just seems to be ramping back up again, but we're managing through it a little better right now.

1 月份，它是由 COVID 情況驅動的，這種情況似乎又在回升，但我們現在的管理情況要好一些。

Our next question is from Ashish Sabadra with RBC Capital Markets.

我們的下一個問題來自加拿大皇家銀行資本市場的 Ashish Sabadra。

Congrats to both of you, Gary and Jerry. My first question would be on the revenue growth, pretty strong momentum there across all businesses. I was wondering if you could help parse out -- you obviously talked about a more aggressive price increase, but also if you can talk about the improved retention as well as on the sales momentum side, can you talk about how the improved ad campaign helped you more on the inbound, but also the technicians being appropriately staffed? How is that helping you drive sales momentum. So if you could just parse out some of the growth drivers and quantify some of those tailwinds?

恭喜你們，加里和傑瑞。我的第一個問題是收入增長，所有業務的增長勢頭都非常強勁。我想知道您是否可以幫助分析-您顯然談到了更激進的價格上漲，但如果您可以談論提高的保留率以及銷售勢頭方面，您能否談談改進的廣告活動如何幫助您更多的是入站，而且技術人員是否配備了適當的人員？這如何幫助您推動銷售勢頭。那麼，如果你能分析出一些增長動力並量化其中一些順風呢？

Well, I think on the -- Julie, on the revenue growth side, we certainly got some additional lift from the price increase part that helped us quite a bit. We were lapping a pretty big second quarter last year, in particular, our -- the month of April and in 2021 was really difficult to lap from a growth standpoint, but we managed through it pretty well, and things picked up quite a bit in May and June to help recover from there.

好吧，我認為在朱莉，在收入增長方面，我們肯定從價格上漲部分獲得了一些額外的提升，這對我們有很大幫助。去年第二季度我們經歷了相當大的第二季度，特別是從增長的角度來看，我們的 4 月和 2021 年真的很難完成，但我們做得很好，事情在5 月和 6 月有助於從那裡恢復。

Retention remains -- customer retention remains strong, and our team is doing a pretty good job on service delivery. We're staffed better than we were a year ago from a technician standpoint, being able to get to new customers, service our existing customers. So that's all good. We've gotten a lot of positive response to, in particular, Orkin's transition to -- with their new ad campaigns. Especially with the Orkin Pro, we've received a lot of very strong feedback. Our -- the people that work at Orkin, our team members at Orkin really like it. It's getting a lot of attention. I know it's good when I hear about it from my children because they're seeing it on TikTok. And so they see those ads on TikTok and seem to have a lot of fun with them.

保留率仍然存在——客戶保留率仍然很高，我們的團隊在服務交付方面做得很好。從技術人員的角度來看，我們的人員配備比一年前更好，能夠接觸到新客戶，為現有客戶提供服務。所以這一切都很好。我們已經得到了很多積極的回應，特別是 Orkin 的過渡——他們的新廣告活動。尤其是使用 Orkin Pro，我們收到了很多非常強烈的反饋。我們——在 Orkin 工作的人們，我們在 Orkin 的團隊成員非常喜歡它。它越來越受到關注。我知道當我從我的孩子那裡聽到這件事時，這很好，因為他們正在 TikTok 上看到它。因此，他們在 TikTok 上看到了這些廣告，並且似乎從中獲得了很多樂趣。

Yes. And then to add on to that, just as a reminder, I think Jerry commented on his section of the script is our price increase that brought in over double what we typically see from our annual price increase. So that was a part of that growth as well.

是的。然後補充一點，提醒一下，我認為 Jerry 對他的劇本部分的評論是我們的價格上漲帶來了我們通常從年度價格上漲中看到的兩倍以上。所以這也是增長的一部分。

Our next question is from Hamza Mazari with Jefferies.

我們的下一個問題來自 Hamza Mazari 和 Jefferies。

This is Hans Hoffman filling in for Hamza. Could you just give us a sense of how much capacity you have in your sales force and what your hiring plans are going forward?

這是漢斯霍夫曼為哈姆扎填補的。您能否告訴我們您的銷售人員有多少能力以及您的招聘計劃是什麼？

We're pretty well staffed on the sales side, both in the commercial and residential side. we can always -- there's always room for improvements to drive -- when you have a salesperson at full capacity or selling high levels monthly, the next step to do is hire another and build them back up and continue to drive that incremental growth and get improvements.

在商業和住宅方面，我們在銷售方面的人員配備非常好。我們總是可以——總是有改進的空間——當你有一個滿負荷的銷售人員或每月銷售高水平的銷售人員時，下一步要做的就是僱傭另一個人並建立他們的支持，繼續推動增量增長並獲得改進。

So we always -- there's always a little bit of capacity there to do better. But as we get closer to capacity, we look to add staffing where it makes sense. And we're always -- that's just kind of a numbers game and math game that we play.

所以我們總是 - 總是有一點能力可以做得更好。但隨著我們越來越接近產能，我們希望在有意義的地方增加人員配置。我們總是——這只是我們玩的一種數字遊戲和數學遊戲。

Yes. And that's where we really worked hard at the end of last year is when we started doing the heavy staff up on our commercial side of our sales force just so that we could be prepared for this year and be able to honestly be able to close the deals that we're closing today.

是的。這就是我們去年年底真正努力工作的地方，那時我們開始在我們的銷售團隊的商業方面增加繁重的員工，這樣我們就可以為今年做好準備，並且能夠誠實地關閉我們今天要完成的交易。

And certainly, the commercial results that we're getting are a result of those -- the increased staffing and the increased productivity for sales rep that we're seeing.

當然，我們獲得的商業成果是這些結果的結果——我們看到的員工人數增加和銷售代表生產力的提高。

(Operator Instructions)

（操作員說明）

Our next question comes from Seth Weber with Wells Fargo Securities.

我們的下一個問題來自 Wells Fargo Securities 的 Seth Weber。

Congratulations, guys. I just had a question on, I think fuel prices started picking up last June, June 2021. So is it -- so now that we have kind of an apples-to-apples compare going forward, should we expect gross margin to be up year-over-year for the rest of the year or is that the right way to think about it?

恭喜，伙計們。我剛問了一個問題，我認為燃料價格從去年 6 月，也就是 2021 年 6 月開始回升。是這樣 - 所以現在我們有一種蘋果對蘋果的比較，我們是否應該預期毛利率會上升在今年剩下的時間裡年復一年，或者這是正確的思考方式？

I'll start, and then I'm sure Jerry will want to jump in as well. Everything -- we're all reading the same thing when it comes to fuel is we -- a lot of things -- areas say that the fuel prices are going to be going down, but then we see things that are happening on the other side of the globe that gives the impression that it could go up. So, so much depends on that. So if you're assuming that fuel does not keep on having that variability, we'll definitely -- that's one thing to keep in mind.

我會開始，然後我確定 Jerry 也想加入。一切——關於燃料，我們都在讀相同的東西是我們——很多事情——地區說燃料價格將會下降，但隨後我們看到其他地區正在發生的事情地球的一側，給人的印像是它可以上升。所以，很大程度上取決於這一點。因此，如果您假設燃料不會繼續具有這種可變性，我們肯定會 - 這是要記住的一件事。

But I also want to address materials and supplies. Jerry commented on this as well. And I'm going to jump in and use the phrase that Jerry has commented on in the Board meeting yesterday. He said that sometimes we feel like we're playing whack-a-mole with the materials and supplies because we have different vendors and different that are looking at -- they have to make increases to cover either their shipping or cover their supply costs themselves. And we keep on having to jump in. We're having to look every single day and see in our purchasing group is saying, where do we need to go. Where should we be purchasing. And really monitoring these relationships.

但我也想談談材料和用品。傑瑞也對此發表了評論。我要插入並使用 Jerry 在昨天的董事會會議上評論過的短語。他說，有時我們覺得我們正在與材料和供應品打地鼠，因為我們有不同的供應商和不同的關注點——他們必須增加費用以支付他們的運費或自己支付他們的供應成本.而且我們必須繼續參與進來。我們每天都必須查看並看到我們的採購團隊在說，我們需要去哪裡。我們應該在哪裡採購。並真正監控這些關係。

It's a long way of saying it depends what's going to happen with our vendors. It depends what's going to happen with our suppliers. And honestly, the fuel prices. All of that being said, if that calms down, then yes, margins would improve. Do you want to add to that?

說這很長，這取決於我們的供應商會發生什麼。這取決於我們的供應商會發生什麼。老實說，燃油價格。綜上所述，如果情況平靜下來，那麼是的，利潤率會提高。你想補充嗎？

I would agree that those are the 2 main variables. It's going to be what happens with fuel and fleet and can we get our -- the trucks on time that we are expecting to be delivered to us. Can we get -- they can get delivered and we can start heading off some of these repair expenses that we're having. And then plus we have the ongoing benefit of offsetting some of these costs over the coming months with routing and scheduling, more of the technology adoption and advancement that we can get out there and increase usage of the tools they have, especially during busy season, that will help us with those offsets.

我同意這是兩個主要變量。這將是燃料和車隊發生的事情，我們能否按時獲得我們期望交付給我們的卡車。我們能得到 - 他們可以交付，我們可以開始減少我們所擁有的一些維修費用。此外，在接下來的幾個月中，我們還可以通過路由和調度來抵消其中一些成本，更多的技術採用和進步，我們可以在那裡進行並增加他們擁有的工具的使用，特別是在旺季，這將幫助我們進行這些抵消。

Not too concerned about the labor side. I think we'll manage the labor. But certainly, fuel and vehicle repairs and materials supplies. Those are the wildcards that were basically managed through a very -- it seems like every week, we're getting notified about some other price increase that we're having to make adjustments to from suppliers. So that's why Julie said it's like playing whack-a-mole. So as long as we remain vigilant on that, and we'll see what happens from a fuel standpoint. That's the wildcard.

不太關心勞工方面。我想我們會管理勞動力。但可以肯定的是，燃料和車輛維修以及材料供應。這些通配符基本上是通過非常管理的 - 似乎每週，我們都會收到有關我們必須從供應商那裡進行調整的其他一些價格上漲的通知。所以這就是為什麼朱莉說這就像打地鼠。因此，只要我們對此保持警惕，我們就會從燃料的角度看到會發生什麼。那是通配符。

Our final question is from Brian Butler with Stifel.

我們的最後一個問題來自 Stifel 的 Brian Butler。

Just to follow up, I guess, on pricing and inflation. If inflation continues to move higher or even accelerate, is there a potential another rate increase the back half of 2022 or maybe a surcharge that would be used to offset that? Or would Rollins wait until maybe next year to catch up and then address the higher costs?

我猜只是為了跟進定價和通貨膨脹。如果通脹繼續走高甚至加速，是否有可能在 2022 年下半年再次加息，或者可能會使用附加費來抵消這一影響？或者羅林斯會等到明年趕上然後解決更高的成本嗎？

We've done quite a bit of research as far as our price increases are concerned. And certainly, we would be opposed to having another price increase this year. We really studied the frequency and the amount very carefully. And it's been our experience that you really need to have some time in between and don't get greedy.

就我們的價格上漲而言，我們已經做了很多研究。當然，我們會反對今年再次漲價。我們真的非常仔細地研究了頻率和數量。根據我們的經驗，您確實需要在兩者之間留出一些時間並且不要貪婪。

Thank you. I would like to turn the conference back over to management for closing comments.

謝謝你。我想將會議交回管理層以結束評論。

Okay. Well, thank you all for joining us today. We appreciate your interest in our company, and we look forward to updating you next quarter on our progress. And thanks again.

好的。嗯，謝謝大家今天加入我們。感謝您對我們公司的興趣，我們期待在下個季度向您更新我們的進展。再次感謝。

Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

謝謝你。今天的會議到此結束。此時您可以斷開線路，感謝您的參與。