Rollins Inc (ROL) 2025 Q1 法說會逐字稿

Greetings. Welcome to the Rollins First Quarter 2025 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce Lyndsey Burton, President, Investor Relations.

問候。歡迎參加羅林斯 2025 年第一季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。現在我很高興介紹投資者關係總裁林賽伯頓 (Lyndsey Burton)。

Thank you. You may begin.

謝謝。你可以開始了。

Thank you, and good morning, everyone. In addition to the earnings release that we issued on today, the company has also prepared a supporting slide presentation. The earnings release and presentation are available on our website at www.rollins.com. We have included certain non-GAAP financial measures as part of our discussion this morning. The non-GAAP reconciliations are available in the appendix of today's presentation as well as in our earnings release.

謝謝大家，早安。除了我們今天發布的收益報告外，該公司還準備了一份支援幻燈片簡報。收益報告和簡報可在我們的網站 www.rollins.com 上查閱。我們在今天上午的討論中納入了某些非公認會計準則財務指標。非公認會計準則對帳表可在今天的簡報附錄以及我們的收益報告中查閱。

The company's earnings release discusses the business outlook and contains certain forward-looking statements. These particular forward-looking statements and all other statements that have been made on this call, including 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 yesterday's press release and the company's SEC filings, including the Risk Factors section of our Form 10-K for the year ended December 1, 2024. On the line with me today and speaking are Jerry Gahlhoff, President and Chief Executive Officer; and Ken Krause, Executive Vice President and Chief Financial Officer. Management will make some opening remarks, and then we'll open the line for your questions.

該公司的收益報告討論了業務前景並包含某些前瞻性陳述。這些特定的前瞻性陳述以及本次電話會議上所做的所有其他陳述（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所做的任何陳述有重大差異。請參閱昨天的新聞稿和該公司向美國證券交易委員會 (SEC) 提交的文件，包括截至 2024 年 12 月 1 日的 10-K 表格中的「風險因素」部分。今天與我通電話並發言的是總裁兼執行長 Jerry Gahlhoff；以及執行副總裁兼財務長 Ken Krause。管理層將致一些開場白，然後我們將開始回答您的問題。

Jerry, would you like to begin?

傑瑞，你想開始嗎？

Thank you, Lyndsey. Good morning, everyone. I'm pleased to report Rollins delivered strong first quarter results. Overall, we continue to see solid growth across all major service lines with total revenue growth of nearly 10% and organic growth of 7.4% despite 1 less business day.

謝謝你，林賽。大家早安。我很高興地報告羅林斯第一季取得了強勁的業績。總體而言，儘管工作日減少了 1 個，但我們繼續看到所有主要服務線都實現穩健增長，總收入增長近 10%，有機增長 7.4%。

Earlier this month, we announced our acquisition of Saela's Pest Control. We have known and admired Saela's business for a number of years. In fact, [Mic-Smith] Saela's President is a former [Orkin] Division President, so we're happy to welcome him and the rest of our sale teammates to the Rollins family. Ken will share more of the financial details associated with the transaction in a moment. The Saela is a wonderful addition to the Rollins family of brands for several reasons.

本月初，我們宣布收購 Saela's Pest Control。我們已經了解並欽佩 Saela 的業務很多年了。事實上，[Mic-Smith] Saela 總裁曾任 [Orkin] 分部總裁，因此我們很高興歡迎他和我們其他銷售團隊成員加入 Rollins 大家庭。Ken 稍後將分享更多與該交易相關的財務細節。由於多種原因，Saela 成為 Rollins 品牌家族的絕佳補充。

First and foremost, the heavy strong culture that is focused on people. People who deliver amazing service. Second, Saela has a scaled operation with a strong track record enabled by their focus on operational execution. Third, their presence in key geographies, including the Pacific Northwest, Mountain West and the Midwestern United States provides a platform for us to more effectively deploy our multi-brand strategy. As you know, we believe the combination of Orkin and our strong group of regional brands is a competitive differentiator for Rollins, giving us multiple bites at the apple with potential customers while also providing some balance and diversification with respect to customer acquisition.

首先，以人為本的厚重文化。提供優質服務的人。其次，Saela 著重營運執行，擁有規模化營運和良好的業績記錄。第三，他們在太平洋西北部、山區西部和美國中西部等主要地區的存在為我們更有效地部署多品牌策略提供了平台。如您所知，我們相信奧肯與我們強大的區域品牌集團的結合是羅林斯的競爭優勢，讓我們能夠多次接觸潛在客戶，同時也在客戶獲取方面提供一定的平衡和多樣化。

The addition of Saela further strengthens these competitive advantages. Earlier this month, I was able to meet many of Saela's teammates in Utah and Colorado, and I was really impressed. I'm proud to welcome them all to Rollins and I'm confident that Saela's business is well aligned to our strategy for sustainable, profitable growth. Our investments in strategic M&A opportunities are also complemented by ongoing investments to drive organic growth. As expected, we continued our investments in incremental sales staffing and marketing activities ahead of peak season to ensure that we are positioned top of mind for the consumer as pet season begins.

Saela 的加入進一步增強了這些競爭優勢。本月初，我有幸在猶他州和科羅拉多州見到了 Saela 的許多隊友，我印象非常深刻。我很榮幸地歡迎他們加入羅林斯，我相信 Saela 的業務與我們可持續獲利成長的策略非常契合。我們對策略併購機會的投資也得到了持續投資的補充，以推動有機成長。正如預期的那樣，我們在旺季之前繼續對增量銷售人員和行銷活動進行投資，以確保在寵物季節開始時我們能夠成為消費者最關心的品牌。

We are well staffed on the sales, technician and customer service support front with our teammates onboarded, extensively trained and ready to provide an exceptional level of service for our customers. On the commercial side of the business, we are encouraged by our momentum. Overall, we delivered solid double-digit commercial growth for the first quarter despite some softness of commercial onetime special services such as commodity fumigation. Over the last year, we have strategically added resources to support our dedicated commercial division within Orkin. These resources are paying off as Orkin Commercial delivered double-digit recurring revenue growth in the first quarter.

我們在銷售、技術人員和客戶服務支援方面擁有充足的人員，我們的團隊成員都經過了廣泛的培訓，隨時準備為我們的客戶提供卓越的服務。在商業業務方面，我們的發展動能令我們感到鼓舞。總體而言，儘管商品熏蒸等商業一次性特殊服務有所疲軟，但我們在第一季仍實現了穩健的兩位數商業成長。在過去的一年裡，我們策略性地增加了資源來支持奧肯內部專門的商業部門。這些資源正在產生回報，Orkin Commercial 在第一季實現了兩位數的經常性收入成長。

Beyond growth, our dedication to operational efficiency and continuous improvement is part of our strategy and culture. Ken will discuss in more detail, but we saw gross margin in the quarter as we executed our pricing strategy leveraged our cost structure and drove efficiencies throughout the business. This is somewhat offset by ongoing investments we have made to support long-term growth objectives, but we remain confident in our ability to yield a strong return on these investments in the quarters and years ahead. And finally, before I turn it over to Ken, I would like to take a moment to welcome [Paul Donahue], who is elected to our Board of Directors at our Annual Shareholder Meeting earlier this week. Paul serves as Nonexecutive Chairman of Genuine Parts Company and was previously CEO and Chairman there as well.

除了成長之外，我們對營運效率和持續改善的奉獻也是我們策略和文化的一部分。Ken 將進行更詳細的討論，但我們在本季度看到了毛利率，因為我們執行了定價策略，利用了我們的成本結構並提高了整個業務的效率。這在一定程度上被我們為支持長期成長目標而進行的持續投資所抵消，但我們仍然有信心在未來幾個季度和幾年內從這些投資中獲得豐厚的回報。最後，在將時間交給肯之前，我想花點時間歡迎保羅·多納休 (Paul Donahue)，他在本週早些時候的年度股東大會上當選為董事會成員。保羅 (Paul) 擔任 Genuine Parts Company 的非執行董事長，之前也曾擔任該公司的執行長和董事長。

His extensive leadership experience, business expertise and commitment to the community, bring great value to Rollins. And we look forward to the impact he will have on our company. In closing, we're excited about where our business stands today. The year is off to a solid start and demand from our customers remain strong. Our teams in the field are ready to support our customers as peak season ramps up, and I want to thank each of our 20,000-plus team members around the world for their ongoing commitment to our customers.

他豐富的領導經驗、商業專業知識和對社區的承諾為羅林斯帶來了巨大的價值。我們期待他對我們公司產生的影響。最後，我們對目前的業務狀況感到非常興奮。今年開局良好，客戶需求依然強勁。隨著旺季的到來，我們一線團隊已準備好為客戶提供支持，我要感謝我們遍布全球的 20,000 多名團隊成員對客戶的持續承諾。

I'll turn the call over to Ken.

我會把電話轉給肯。

Thanks, Jerry, and good morning, everyone. The first quarter reflects continued strong execution by the Rollins team. A few highlights to start. Growth was robust the start of the year. We delivered revenue growth of 9.9% year-over-year.

謝謝，傑瑞，大家早安。第一季體現了羅林斯團隊持續強勁的執行力。首先介紹幾個亮點。今年年初成長強勁。我們的營收年增了 9.9%。

Organic growth was 7.4% despite 40 basis points of headwind from foreign currency as well as an impact from 1 less business day in the quarter versus last year. Organic growth would have exceeded the high end of our 7% to 8% range were it not for these two factors. On the profitability side, we continue to make progress gross margin of 51.4% is the highest first quarter gross margin that we have recorded in recent history. As expected, strategic growth investments did temper EBITDA margins a bit in the quarter but we continue to anticipate an improving margin profile as we move through the back half of the year. And finally, we delivered operating cash flow of $147 million and free cash flow of $140 million, up 15% and 17%, respectively, versus last year, enabling a balanced capital allocation strategy.

儘管受到外匯阻力 40 個基點以及本季與去年相比工作日減少 1 個的影響，有機成長率仍達到 7.4%。如果不是這兩個因素，有機成長率將會超過我們 7% 至 8% 的上限。在獲利方面，我們持續取得進展，51.4%的毛利率是我們近期歷史上第一季的最高毛利率。正如預期的那樣，策略成長投資確實在本季度稍微抑制了 EBITDA 利潤率，但我們仍然預計，隨著下半年的到來，利潤率將會有所改善。最後，我們實現了 1.47 億美元的營運現金流和 1.4 億美元的自由現金流，分別比去年增長 15% 和 17%，實現了平衡的資本配置策略。

Diving further into the quarter, we saw good growth across each of our service offerings. In the first quarter, residential revenue increased 8.2%, commercial pest control rose 10.2%, and termite and ancillary increased by 13.2%. Organic growth was also healthy across the portfolio, with growth of 5.7% in residential, 7.4% commercial and 11.1% in the termite and ancillary area. Importantly, our organic growth rate on our recurring base of commercial business grew at nearly 10%. We remain encouraged that our investments in this area are paying off.

深入研究本季度，我們發現每項服務均實現了良好的成長。第一季度，住宅收入成長8.2%，商業蟲害防治成長10.2%，白蟻及輔助防治成長13.2%。整個投資組合的有機成長也十分健康，其中住宅領域成長 5.7%，商業領域成長 7.4%，白蟻及輔助領域成長 11.1%。重要的是，我們經常性商業業務的有機成長率成長了近 10%。我們仍然感到鼓舞的是，我們在該領域的投資正在獲得回報。

Turning to profitability. Our gross margins were healthy at 51.4%, up 20 basis points versus last year. We continue to be positive on the price cost equation and saw good performance across several plus categories. Looking at our 4 major buckets of service costs, people, fleet, materials and supplies as well as insurance and claims, we saw improvements in margins associated with people costs, materials and supplies as well as the insurance and claim area, which was somewhat offset by higher fleet expense. Quarterly SG&A costs as a percentage of revenue increased by 70 basis points versus last year.

轉向盈利能力。我們的毛利率達到 51.4%，比去年同期成長了 20 個基點，表現十分健康。我們繼續對價格成本方程式持樂觀態度，並看到多個附加類別的良好表現。縱觀我們的四大服務成本，即人員、車隊、材料和供應品以及保險和索賠，我們發現與人員成本、材料和供應品以及保險和索賠領域相關的利潤率有所提高，但被更高的車隊費用所抵消。季度銷售、一般及行政費用佔收入的百分比比去年增加了 70 個基點。

We saw healthy leverage on administrative people costs which enabled reinvestment in incremental advertising and selling expenses associated with the growth initiatives that we've discussed previously. First quarter GAAP operating income was $143 million, up 7.7% year-over-year. Adjusted operating income was $147 million, up 6.7% versus prior year. First quarter EBITDA was $173 million, up 8.1% and representing a 21% margin. Interest expense was $2 million lower year-over-year due to lower average debt balances and a lower average rate versus last year.

我們看到行政人員成本的健康槓桿作用，這使得我們能夠對與我們之前討論過的成長計劃相關的增量廣告和銷售費用進行再投資。第一季 GAAP 營業收入為 1.43 億美元，較去年同期成長 7.7%。調整後的營業收入為 1.47 億美元，較上年增長 6.7%。第一季 EBITDA 為 1.73 億美元，成長 8.1%，利潤率為 21%。由於平均債務餘額較低且平均利率低於去年，利息支出較去年同期減少 200 萬美元。

We expect interest expense for the remainder of the year to be slightly elevated compared to last year due to higher debt levels associated with our recent M&A activity. Notably, we expect interest expense to be $8 million to $10 million in Q2 on the higher borrowings. The effective tax rate was 23.5% in the quarter, lower than the 26% we expect for the year due to timing of certain tax benefits associated with the vesting of restricted shares. We expect the second quarter tax rate to approximate 26%. Quarterly GAAP net income was $105 million or $0.22 per share, increasing from $0.19 per share in the same period a year ago.

由於我們最近的併購活動導致債務水準上升，我們預計今年剩餘時間的利息支出將比去年略有上升。值得注意的是，我們預計第二季借款增加導致的利息支出將達到 800 萬至 1,000 萬美元。本季有效稅率為 23.5%，低於我們預期的全年 26%，原因是限制性股票歸屬相關的某些稅收優惠的時間安排。我們預計第二季稅率約為26%。季度 GAAP 淨收入為 1.05 億美元，即每股 0.22 美元，高於去年同期的每股 0.19 美元。

For the first quarter, we had non-GAAP pretax adjustments associated with the Fox acquisition-related items totaling approximately $4 million of pretax expense in the quarter. Accounting for these expenses, adjusted net income was $108 million or $0.22 per share, increasing 10%. Turning to cash flow and the balance sheet. Operating cash flow increased 15% in the quarter to $147 million. We generated $140 million of free cash flow, a 17% increase versus last year.

第一季度，我們與福斯收購相關項目相關的非公認會計準則稅前調整總計約 400 萬美元。計入這些費用後，調整後的淨收入為 1.08 億美元，即每股 0.22 美元，成長 10%。轉向現金流和資產負債表。本季經營現金流成長 15%，達到 1.47 億美元。我們產生了 1.4 億美元的自由現金流，比去年增長了 17%。

And cash flow conversion, the percent of income that was converted into operating cash flow was very strong at well above 130% for the quarter. As a reminder, our second quarter cash flow will be impacted by deferred tax payment associated with the disaster relief measure granted to those with operations impacted by Hurricane Helene that we discussed on our fourth quarter call. We made acquisitions totaling $27 million, and we paid $80 million in dividends in the first quarter. During the quarter, we executed our inaugural bond offering, issuing $500 million (inaudible) with the tightest bond IPO credit spread for any industrial company since 2016. We also established a $1 billion commercial paper program, which will generate ongoing savings as short-term funding needs arise.

現金流轉換方面，本季轉換為經營現金流的營收百分比非常強勁，遠高於 130%。提醒一下，我們第二季度的現金流量將受到遞延稅款支付的影響，該稅款支付與我們在第四季度電話會議上討論過的向受颶風海倫影響的人員提供的救災措施有關。我們進行了總額為 2700 萬美元的收購，並在第一季支付了 8000 萬美元的股息。在本季度，我們進行了首次債券發行，發行金額為 5 億美元（聽不清楚），是自 2016 年以來工業公司債 IPO 信用利差最窄的一次。我們還建立了一個 10 億美元的商業票據計劃，當短期融資需求出現時，該計劃將產生持續的儲蓄。

Our leverage ratio stands at 0.8 times. Our balance sheet is very healthy and positions us well to continue to execute on our balanced capital allocation strategies. As Jerry mentioned, we closed the Saela acquisition earlier in April and are excited about the strategic growth opportunities this acquisition will provide us. Let me share a few financial details on the acquisition. We expect it to add between $45 million to $50 million of revenue in 2025 was approximately $15 million in Q2.

我們的槓桿率為0.8倍。我們的資產負債表非常健康，使我們能夠繼續執行平衡的資本配置策略。正如傑瑞所提到的，我們在 4 月初完成了對 Saela 的收購，並對此次收購將為我們帶來的策略成長機會感到非常興奮。讓我分享一些有關此次收購的財務細節。我們預計，到 2025 年，其收入將增加 4,500 萬至 5,000 萬美元，而第二季的收入約為 1,500 萬美元。

From an EBITDA standpoint, Saela's margin profile is neutral to ours, and we anticipate the deal to be accretive to earnings in the first full year of ownership. We are in the process of finalizing our purchase accounting and we'll provide an update on this during our Q2 call in July. As we look to the remainder of 2025, we remain encouraged by the strength of our markets our recession-resilient business model and the execution of our teams. We are fortunate to have limited exposure with respect to tariffs. To give you some perspective, our greatest area of potential impact from tariffs could be in our fleet.

從 EBITDA 的角度來看，Saela 的利潤率狀況與我們的一樣，我們預計該交易將在擁有的第一年增加收益。我們正在完成採購會計核算，並將在 7 月的第二季電話會議上提供最新資訊。展望 2025 年剩餘時間，我們仍然對市場的強勁表現、抵禦經濟衰退的商業模式以及團隊的執行力感到鼓舞。我們很幸運，關稅方面受到的影響有限。為了讓您了解情況，我們受關稅影響最大的領域可能是我們的船隊。

Fleet costs in total represent just over 5% of our income statement, and it's important to dissect that further and recognize that automobile lease costs represent roughly 3% of our income statement. We are positioned extremely well to deliver on our financial objectives despite uncertainty in the current macroeconomic environment. We continue to expect organic growth in the 7% to 8% range for the year but expect that the addition of the Saela business will take anticipated growth from M&A to 3% to 4% for the year versus the 2% to 3% we discussed previously. We remain focused on improving our incremental margin profile while investing in growth opportunities. And we anticipate that cash flow will continue to convert at a rate that is above 100% in 2025.

車隊總成本僅占我們損益表的 5% 多一點，進一步分析並認識到汽車租賃成本約占我們損益表的 3% 非常重要。儘管當前宏觀經濟環境存在不確定性，但我們仍處於非常有利的位置，能夠實現我們的財務目標。我們繼續預計今年的有機成長率將在 7% 至 8% 之間，但預計 Saela 業務的加入將使今年的併購預期成長率達到 3% 至 4%，而我們之前討論的是 2% 至 3%。我們將繼續致力於提高增量利潤率，同時投資成長機會。我們預計，到 2025 年，現金流的轉換率將繼續維持在 100% 以上。

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

說完這些，我就把電話轉回給傑瑞。

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

謝謝你，肯。我們很樂意回答您的任何問題。

(Operator Instructions)

（操作員指示）

Tim Mulrooney, William Blair.

提姆·馬爾羅尼、威廉·布萊爾。

And very good morning Tim. Okay, a couple of questions. So first, just in terms of your -- I guess, this would be more your consumer-facing businesses, resi and termite. We've heard from some other industry participants that lead volumes in North America have been a little bit weaker to start the year. I'm curious what you're seeing in the market as it pertains to demand trends. Obviously, everything sounds good.

早安，提姆。好的，有幾個問題。首先，就您的而言——我想，這將更多地涉及您的面向消費者的業務、住宅和白蟻。我們從其他一些行業參與者那裡獲悉，今年年初北美鉛產量略有下降。我很好奇您在市場上看到了哪些與需求趨勢相關的情況。顯然，一切聽起來都很好。

But is there anything in the data to suggest that things are slowing down at all maybe towards the end of the quarter or after the quarter as macro uncertainty continues to ramp up here?

但是，數據中是否有任何跡象表明，隨著宏觀不確定性繼續加劇，經濟成長可能在本季末或本季之後放緩？

Ken, I guess I'll kick off. January and February were certainly a little tougher, it got better in March. I would characterize demand was still pretty good. We did see also some uptick in our technician sales efforts and things along those lines that also help drive the residential creative selling on the termite and ancillary side of the business. Those helped in that area.

肯，我想我可以開始了。一月和二月確實有些艱難，但三月情況有所改善。我認為需求仍然相當良好。我們確實也看到技術人員的銷售力道上升，類似的事情也有助於推動白蟻和輔助業務的住宅創意銷售。這些在那個領域提供了幫助。

I would -- for us, at least, we didn't see any type of demand signals or changes that gave us pause.

我會——至少對我們來說，我們沒有看到任何讓我們停下來的需求訊號或變化。

Yes. The only thing I would add, Jerry, is when you look across the business, the residential business continues to perform well. We're happy with the recurring revenue growth we're seeing in that business. When you look at the commercial area, I pointed out in my prepared comments that, that business, the recurring organic growth was close to 10%. And then the termite and ancillary business continues to be a strong contributor.

是的。傑瑞，我唯一想補充的是，當你縱觀整個業務時，住宅業務繼續表現良好。我們對該業務的經常性收入成長感到滿意。當你看商業領域時，我在準備好的評論中指出，該業務的經常性有機成長接近 10%。白蟻及輔助業務持續發揮重要作用。

The teammate -- and the team across the organization is just doing an exceptional job navigating an uncertain economic environment, but again, our business remains very recession resilient. And we've seen that through a number of cycles in the past, and we're seeing that now. As we go through April, we're executing well. We're seeing good results continue to see and continue to expect to be able to deliver on our organic growth commitments.

隊友——以及整個組織的團隊在應對不確定的經濟環境方面做得非常出色，但我們的業務仍然具有很強的抵禦經濟衰退的能力。我們在過去的多個週期中都看到過這種情況，現在我們仍然看到這種情況。進入四月，我們的表現良好。我們看到了良好的結果，並繼續期待能夠兌現我們的有機成長承諾。

Okay. That's very clear. You guys aren't seeing it at all. And if anything, it sounds like things got better as you move through the quarter. So that's all very clear.

好的。這非常清楚。你們根本沒看到。如果有的話，聽起來隨著本季的推進，情況會變得更好。一切都非常清楚。

And just to build on that comment that you were making there, Ken, on your commercial business. I think, and please correct me if I'm wrong, but I think a lot of the investments that have been weighing on margins the last couple of quarters are in work -- in commercial specifically. So this really strong result that you're seeing in your commercial business, do you think that, that's a direct result of these investments that you're making, adding feet on the street, splitting up the branches, those kind of things? Do you think you're starting to see the benefit of those investments that those are paying off? Or is it too early there?

肯，我只是想基於你剛才對你的商業業務所做的評論來進一步闡述。我認為，如果我錯了，請糾正我，但我認為過去幾季對利潤率造成影響的許多投資都在發揮作用——特別是在商業領域。那麼，您在商業業務中看到的如此強勁的業績，您是否認為這是您所做的投資的直接結果，例如增加門市數量、分割分行等？您是否認為您開始看到這些投資的收益並開始看到回報？還是那裡還太早？

No, I think it is. I mean, when I look at the business and think about what [Scott Weaver] is doing with leading that business the performance we're seeing, it certainly is correlated, I believe, to the level of focus and the emphasis and the investments we're making in that business. And we feel like they're paying off. We continue to be bullish on that segment. But we're also -- when you step back and look across the business, we're bullish in the other areas as well.

不，我認為是的。我的意思是，當我審視這項業務並思考 [Scott Weaver] 在領導該業務方面所做的工作以及我們所看到的業績時，我相信這肯定與我們在該業務上的關注程度、重點和投資有關。我們感覺到他們的努力得到了回報。我們繼續看好該領域。但當你回顧整個業務時，你也會發現我們對其他領域也樂觀。

You look at the termite and ancillary business and what we're seeing there. Dissecting that and looking at some of the ancillary growth we're seeing gives us a sense of optimism when we think about the -- how healthy our customer base might be because those are larger ticket items. But we think, generally, across the board, we're seeing good returns on the investments we're making.

你看看白蟻和輔助業務以及我們在那裡看到的情況。透過分析這一點，並觀察我們所看到的一些輔助成長，當我們想到我們的客戶群可能會多麼健康時，我們會感到樂觀，因為這些都是大件商品。但我們認為，總體而言，我們所進行的投資獲得了良好的回報。

And I would add, Ken, that it takes -- the sales cycle on the B2B side is longer. So those investments that we make in the back half of last year really don't start paying off until the middle of this year unlike residential that tends to have a little quicker ramp up, things like that. So these investments in the commercial business take time. It takes focus. It takes a commitment to really stick with it and keep driving away at it, and we'll focus heavily this year on productivity of the of the sales force that we built much of the last couple of years, and now we can focus on productivity.

肯，我想補充一點，B2B 方面的銷售週期更長。因此，我們在去年下半年進行的投資實際上要到今年年中才能開始獲得回報，而住宅投資則往往會有更快的成長。因此，這些商業業務的投資需要時間。這需要集中註意力。這需要我們真正堅持下去並不斷努力的決心，今年我們將重點放在過去幾年來建立的銷售隊伍的生產力，現在我們可以專注於生產力了。

Got it, thanks guys.

明白了，謝謝大家。

Manav Patnaik, Barclays.

巴克萊銀行的馬納夫·帕特奈克（Manav Patnaik）。

Hi, good morning. This is [Ronan Kennedy] on for Manav. I think it'd be fair to say that you guys have been remarkably resilient throughout the cycle. Could you just touch on for, I guess, a high-level standpoint, the drivers of the top line growth, if you see contributions from new up cross pricing and inorganic change, the drivers of margins in, say, a downturn? And then anything to note for our resiliency by segment if there's any nuances there?

嗨，早安。我是 [Ronan Kennedy]，代表 Manav 報道。我認為可以公平地說，你們在整個週期中都表現出了非凡的韌性。您能否從高層次的角度談談營收成長的驅動因素？您是否看到新的交叉定價和無機變化的貢獻，以及在經濟低迷時期利潤率的驅動因素？那麼，如果存在任何細微差別，我們按部分劃分的彈性需要注意什麼嗎？

A number of different questions. I'll try to take them and make sure I address them. But when you look at the resiliency of the business and you look at the contributors to growth, I have to start with pricing. We continue to see good pricing in our business. CPI plus level of pricing, 3% to 4% price increases.

許多不同的問題。我會盡力接受它們並確保解決它們。但是，當你考慮業務的彈性和成長的貢獻因素時，我必須從定價開始。我們的業務繼續保持良好的定價。CPI加上物價水平，物價上漲3%到4%。

It's not just -- every customer is not seeing the same price increase. It certainly is market specific, but we're seeing good traction on that side. Volume growth continues to be healthy. When you look at all of the various segments I pointed out previously and the contributions in those segments, certainly feel like we're seeing good volume growth and share gain. When you think about the M&A environment remains very healthy, as you saw us execute on Saela, a great business and with a lot of great people that we've acquired and really looking forward to the contributions of that business, but we continue to remain active and looking at a number of additional opportunities.

這不僅是──每個顧客看到的價格上漲幅度並不相同。這當然是針對特定市場的，但我們看到了這方面的良好發展勢頭。銷售成長持續健康。當您查看我之前指出的所有各個部分以及這些部分的貢獻時，您肯定會感覺到我們看到了良好的銷售成長和份額成長。當您考慮到併購環境仍然非常健康時，正如您所看到的那樣，我們在 Saela 上執行了一項偉大的業務，並且我們收購了許多優秀的人才，我們非常期待該業務的貢獻，但我們繼續保持活躍並尋找許多其他機會。

And so we continue to build the pipeline on the M&A. So generally, across all of that, we feel pretty good. And when you look at downturn, what do you do in a downturn? We're -- we're a very labor-intensive business. So we have a very high variable cost model in the business.

因此，我們繼續建立併購管道。所以整體來說，我們感覺非常好。當您看到經濟低迷時，您會做什麼？我們是勞力密集型企業。因此，我們的業務中有一個非常高的變動成本模型。

And so if the business , we don't see it, I have to say that, we're not seeing a slowdown. But if it were, that would certainly be a lever that one would address. But today, we see -- we're very much in a growth mode. We're investing in our business. We're investing in our teammates, and we're excited about the future.

因此，如果我們沒有看到業務放緩，我不得不說，我們並沒有看到業務放緩。但如果確實如此，那肯定會成為人們需要解決的問題。但今天，我們看到——我們正處於成長模式。我們正在投資我們的業務。我們正在投資我們的隊友，我們對未來充滿興奮。

And Ken, I would add to that when we talk about our revenue drivers and what keeps the gas in engine, it's our multi-brand strategy. that's what when we have -- our eggs are in a lot of different baskets, and we have so many ways to go to market and capitalize on the opportunities that are there. that's really the -- probably the single biggest difference maker as it relates to how do we drive consistent revenue across all of these categories. It's our multi-brand approach that gets us there.

肯，我想補充一點，當我們談論我們的收入驅動因素以及推動我們前進的動力時，那就是我們的多品牌策略。這就是當我們把雞蛋放在許多不同的籃子裡時，我們有很多方法進入市場並利用那裡的機會。這確實是——可能是最大的區別因素，因為它關係到我們如何在所有這些類別中推動穩定的收入。正是我們的多品牌策略讓我們實現了這個目標。

That's very helpful. Thank you for taking the multifaceted question. On M&A, can I just ask that you reconfirm how the pipeline looks? I know with the Saela execution or acquisition, some upside from M&A there. But also if you are seeing with the uncertain market environment, if that puts potential pressure on competitors and potentially valuations, and therefore, you may be inclined to do a more sizable transaction?

這非常有幫助。感謝您回答這個多方面的問題。關於併購，我可否請您再確認一下通路的狀況？我知道 Saela 的執行或收購會帶來一些併購好處。但是，如果您看到市場環境不確定，這會對競爭對手和估值造成潛在壓力，因此，您可能傾向於進行更大規模的交易？

When we look at the M&A pipeline, the pipeline is healthy. But as I've said a number of times, there's no urgency to chase any one individual asset or opportunity. We remain in a very enviable position when it comes to M&A. We're very strategic but also very pragmatic when we think about the steps we take in the M&A side. The market remains healthy.

當我們查看併購管道時，我們發現該管道是健康的。但正如我多次說過的，沒有必要急於追逐任何一項資產或機會。在併購方面，我們仍然處於令人羨慕的地位。當我們考慮在併購方面採取的措施時，我們非常具有策略性，但也非常務實。市場依然健康。

But the one thing, even though we do have a significant amount of financial bandwidth, we're always looking at the pace that we're acquiring these businesses because it's a lot of work to integrate and to bring new businesses and new brands and new teammates on. So we're going to continue to be pragmatic and take the step approach when it comes to M&A.

但有一件事，儘管我們確實擁有大量的財務頻寬，但我們始終專注於收購這些業務的速度，因為整合和引入新業務、新品牌和新隊友需要做大量工作。因此，在併購方面，我們將繼續採取務實的態度並採取逐步的方式。

Thank you, appreciate it.

謝謝，感激不盡。

George Tong, Goldman Sachs.

高盛的喬治通 (George Tong)。

Hi, thanks. Good morning. If I look at organic revenue growth for the residential and termite businesses, it looks like it stepped down a little bit residential organic growth take down about 1 point, and then termite organic growth tick down about 3.5 points going from 4Q to 1Q. So I know there was 1 fewer working day in the quarter, but what were some other factors that may have contributed to this growth moderation in residential and termite?

你好，謝謝。早安.如果我看一下住宅和白蟻業務的有機收入成長，似乎住宅有機收入成長略有下降，下降了約 1 個百分點，而白蟻有機收入成長從第四季到第一季下降了約 3.5 個百分點。所以我知道本季的工作日減少了 1 天，但還有哪些因素可能導致住宅和白蟻數量的成長放緩？

Yes. It's not something that we're overly concerned with, George. We feel good about the contribution of those businesses. We continue to see good demand in those businesses. As you point out, we had 1 less business day.

是的。喬治，這不是我們過度擔心的事情。我們對這些企業的貢獻感到滿意。我們繼續看到這些業務的良好需求。正如您所指出的，我們的工作日減少了 1 個。

We also had roughly a 40 basis point headwind on currencies that impacted our business across the board. And so -- but when we step back and we look at it, we feel good about how we exited Q1, but also how we're starting Q2. We feel like the business is very much intact.

我們也面臨約 40 個基點的貨幣逆風，這對我們的業務產生了全面影響。所以——但是當我們退一步來看時，我們對如何退出第一季以及如何開始第二季感到滿意。我們感覺業務非常好。

And George, I would add that with the impact in the first quarter, when you lose that day, there are a lot of onetime -- there's a lot of onetime business that may not get -- you're losing a full day of onetime -- your recurring basis there, and we're finding ways to get that work done. But you do lose a lot of that onetime business and a lot of that termite and ancillary work certainly could fit into that category. So some of it is just attributed to that.

喬治，我想補充一點，由於第一季的影響，當你損失了那一天，就會有很多一次性業務——有很多一次性業務可能無法獲得——你會損失一整天的一次性業務——你的經常性業務，我們正在尋找方法來完成這項工作。但你確實會失去很多一次性業務，而且很多白蟻和輔助工作肯定都屬於這一類。所以部分原因就在這裡。

The heaviest area of onetime is definitely termite and ancillary. So that's a great point, Jerry.

一次最嚴重的區域肯定是白蟻和輔助物。傑瑞，這是一個很好的觀點。

That's helpful color. And then with your acquisition of Saela that you closed in early April, can you confirm what the commercial and residential mix is?

這是很有幫助的顏色。那麼，您在 4 月初完成了對 Saela 的收購，您能否確認商業和住宅組合是怎樣的？

It's high 95% range residential. They're largely a residential company. They do some commercial, but it's not significant.

其住宅覆蓋率高達 95%。他們主要是一家住宅公司。他們做了一些商業廣告，但並不重要。

Got it. Okay. Thank you.

知道了。好的。謝謝。

Jason Haas, Wells Fargo.

富國銀行的傑森·哈斯。

Hey, good morning and thanks for taking my question. In light of the Saela acquisition, can you talk about your playbook for driving synergies of the businesses you acquired? And I'm curious if there's a similar opportunity to what you saw with Fox.

嘿，早上好，感謝您回答我的問題。鑑於對 Saela 的收購，您能否談談推動所收購業務綜效的策略？我很好奇是否存在與福克斯類似的機會。

Thank you.

謝謝。

When we look at these businesses, we certainly do look at integration, but we're buying really good businesses, businesses that are very attractive from a financial perspective. So we very much take a pragmatic approach to integration. With that said, we do help them on fleet, we do help them on materials and supplies and a number of other measures.

當我們審視這些企業時，我們當然會考慮整合，但我們收購的是真正優秀的企業，從財務角度來看非常有吸引力的企業。因此，我們採取非常務實的整合方法。話雖如此，我們確實在艦隊、材料和供應品以及其他一些措施方面幫助他們。

And when you look at the things we're doing around our modernization and our back office, looking at our finance and accounting and HR and IT teams, I think there's an opportunity to do even more as we go forward. So it's very much pragmatic approach (inaudible) how we can help them improve their business -- and how we might learn from them as well.

當你看到我們在現代化和後台辦公室所做的事情，看到我們的財務和會計以及人力資源和 IT 團隊時，我認為我們在未來還有機會做得更多。因此，這是一種非常務實的方法（聽不清楚），我們如何幫助他們改善業務 - 以及我們如何向他們學習。

Yes. A perfect example of a synergy that could be gained there quickly. As I mentioned, [Mitch Smith], who worked for us at one point in time in his career, he's familiar with the technologies that we have that enable our sales force, like our business suite and our [HomeSuite] apps that are powerful tools for our sales team. And he -- if we can help him mobilize those types of technologies and put those into the Saela business, we can help them accelerate their growth. So those are the types of maybe not traditional synergies, but it's the way that we share best practices, share technology, share things to how we make the business better. It's not always just about how we cut costs, right?

是的。這是可以快速實現協同效應的完美例子。正如我所提到的，[Mitch Smith] 曾在職業生涯的某個階段為我們工作過，他熟悉我們為銷售團隊提供支援的技術，例如我們的商務套件和 [HomeSuite] 應用程序，這些都是我們銷售團隊的強大工具。如果我們能夠幫助他調動這些技術並將其應用到 Saela 業務中，我們就能幫助他們加速成長。所以這些可能不是傳統的協同效應，但這是我們分享最佳實踐、分享技術、分享如何讓業務變得更好的方式。這並不總是僅僅關乎我們如何削減成本，對嗎？

Right? And very much when you look at the Fox acquisition, a lot of that was revenue growth and how we were able to see an improvement in the -- or the multiple that we paid on that. And so the things Jerry just articulated are very much aimed at growth enablers.

正確的？當你回顧福克斯的收購時，你會發現其中很大一部分是收入成長，以及我們如何能夠看到我們為此支付的倍數的提高。因此，傑瑞剛才闡述的內容主要是為了促進成長。

That's great. And as a follow-up, can you talk about what incremental margins might have looked like in 1Q, if you exclude some of these onetime impacts from the less -- 1 less workday, the FX and the investments you're making in the business, excluding those, would you have been at your long-term target? And then how are you thinking about incremental margins? How should they trend through the remainder of the year?

那太棒了。作為後續問題，您能否談談第一季的增量利潤率可能會是什麼樣子，如果您排除一些一次性影響，例如減少 1 個工作日、外匯和您在業務上進行的投資，排除這些影響，您會達到您的長期目標嗎？那麼您如何考慮增量利潤？今年剩餘時間他們的趨勢會如何？

Great question, Jason, and thank you for that. When we look at incremental margins, a couple of things, you're right to talk about the growth, if it's 40 basis points of FX and maybe another 30 to 40 basis points associated with the the the one or the loss of the business day, that's meaningful. But what's more meaningful is the investments we made and especially in the selling and marketing and advertising area.

傑森，這個問題問得好，謝謝你。當我們考慮增量利潤率時，有幾件事，您正確地談論增長，如果外匯為 40 個基點，並且可能與一個工作日或一個工作日的損失相關的另外 30 到 40 個基點，那就有意義了。但更有意義的是我們所做的投資，特別是在銷售、行銷和廣告領域的投資。

We pulled forward some advertising, every other year we'd go out and shoot new television ads. We did that in the quarter, incurred that expense. If you set aside the selling and marketing expenses, you would have been in that 25% to 30% margin profile.

我們提前了一些廣告，每隔一年就會出去拍攝新的電視廣告。我們在本季做了這件事，並產生了這筆費用。如果除去銷售和行銷費用，您的利潤率將達到 25% 至 30%。

With that improving gross margin, it Enables us to be able to deliver that, but we did invest as we think about the future, as we said at the end of last year, as we did the call for Q4, we expect that that incremental margin to improve as we go throughout the year as we start to lap some of these more significant investments as we see the growth come on, but we'll continue to update that as we go throughout this year.

隨著毛利率的提高，我們能夠實現這一目標，但我們在考慮未來時確實進行了投資，正如我們在去年年底所說的那樣，正如我們在第四季度電話會議上所做的那樣，我們預計隨著全年的推進，隨著我們開始進行一些更重要的投資，隨著我們看到增長的到來，增量利潤率將會提高，但我們會在今年全年繼續更新這一情況。

Great, thank you.

太好了，謝謝。

Toni Kaplan, Morgan Stanley.

摩根士丹利的東尼卡普蘭。

Thanks so much. I wanted to sort of go back to the marketing and investments. Just wanted to ask how you're thinking about your strategy in terms of marketing, just in the current period. I know you talked -- you haven't seen any impact yet. So I imagine you're still in a business-as-usual mode and maybe gearing the spend based on traditional seasonality. But just wanted to get a sense of like what would change the trajectory dialing up or down the marketing spend.

非常感謝。我想回到行銷和投資領域。只是想問一下，在當前時期，您是如何考慮行銷策略的。我知道您已經說過了——但您尚未看到任何影響。所以我想你仍然處於一切照舊的模式，也許根據傳統的季節性來調整支出。但只是想了解什麼會改變增加或減少行銷支出的軌跡。

Really, it's business related. It's related to what we're seeing in our markets and the strategic initiatives that we talked about. And so nothing outside of that, I think, would cause us to change our approach when it comes to the selling and marketing side. But it's more about the health -- how healthy our markets are and then execution of our strategy.

確實，這與業務有關。這與我們在市場上看到的情況以及我們談論的策略性舉措有關。因此，我認為除此之外沒有什麼能夠導致我們改變銷售和行銷方面的方法。但它更重要的是健康——我們的市場有多健康，以及我們的策略的執行情況。

I mean, gosh, Ken, something kind of crazy happened in the digital side and costs went dramatically up, which we've never seen happen that we could mitigate or control or adjust. We just pivot, right? So we'll take those dollars and use them in other ways and through other perhaps other channels and repurpose those dollars into perhaps more efficient ways if there were some of those dynamics that occurred that cause prices to go up.

我的意思是，天哪，肯，數字方面發生了一些瘋狂的事情，成本急劇上升，這是我們從未見過的，我們可以緩解、控製或調整。我們只是轉向，對嗎？因此，如果出現一些導致價格上漲的動態，我們將利用這些資金，透過其他方式和其他管道使用它們，並將這些資金重新用於更有效的方式。

And that gets to the point you raised with the previous question, this multi-brand strategy. We've got so many different ways that we market to our customers and we focused on that as part of our Investor Day last May, where we showed various brands and how some are more reliant on digital, some are more relying on billboards, some are more reliant on door-to-door and homebuilders. And so we very much have a diversified approach to marketing and capturing customers.

這涉及到您在上一個問題中提出的觀點，即多品牌策略。我們向客戶行銷的方式有很多種，去年 5 月，我們在投資者日上重點介紹了這種方式，展示了各種品牌，並說明了有些品牌更依賴數位行銷，有些品牌更依賴廣告牌，有些品牌更依賴挨家挨戶推銷和房屋建築商。因此，我們採用非常多樣化的方式來行銷和吸引客戶。

Great. And just as a follow-up, I wanted to ask about sort of a longer-term picture on termite. You've had double-digit organic growth there the last 4 quarters. and at least high single to low double, and basically for years. And so when you sort of just think about the main factors that have driven that high level of growth, do you find that taking share over the past 5 years or so, are you able to command more pricing in that market? Like, I guess, what are just long-term factors that are really driving the elevated growth there? Thanks.

偉大的。作為後續問題，我想詢問白蟻的長期狀況。過去四個季度，你們的有機成長率都達到了兩位數。並且至少從高單到低雙，基本上持續數年。因此，當您思考推動這種高水準成長的主要因素時，您是否發現在過去 5 年左右的時間裡佔據了市場份額，您是否能夠在該市場上獲得更高的價格？我想，真正推動那裡經濟快速成長的長期因素是什麼？謝謝。

To us, Toni, it has to do with the relationships that we have with our existing customer base and being able to cross-sell additional services to them. If they know you, if they trust you and you're in their homes, if you're in their attics and you're in their cross basis, doing inspections on a regular basis, and you notice things that they need to take care of. They trust on you to do that. It's really as simple as that. And then if we have cost structures or things that go up with materials and supplies, we just have to adjust our pricing.

東尼，對我們來說，這與我們與現有客戶群的關係以及能夠向他們交叉銷售附加服務有關。如果他們認識你，如果他們信任你，如果你在他們的家裡，如果你在他們的閣樓裡，如果你在他們的交叉基礎上定期進行檢查，你會注意到他們需要處理的事情。他們相信你能做到這一點。確實就是這麼簡單。然後，如果我們的成本結構或材料和供應品價格上漲，我們就必須調整定價。

We have an incredible opportunity. It's why you see this continuing to grow. This sort of creative selling, we're not relying on digital leads to drive this business especially in termite. These are creative type of benefits that we have by having such a strong recurring customer base with good relationships, high net promoter scores, customers that trust us, trust our brands and that's what really drives the business. So that's why I think you have seen it be such a sustainable number going historically.

我們有一個難得的機會。這就是為什麼你會看到它持續成長。對於這種創意的銷售，我們並不依賴數位線索來推動業務，尤其是白蟻業務。這些都是我們擁有的創意優勢，因為我們擁有如此強大的回頭客群，他們與我們建立了良好的關係，擁有較高的淨推薦值，客戶信任我們，信任我們的品牌，而這才是真正推動業務發展的動力。所以我認為這就是為什麼你會看到它在歷史上如此可持續的數字。

The relationships are there, Toni, and the opportunities there. And so when you look again back at May of last year, we showed in its hockey playoff season. So we showed nine shots on goal with the customer, I believe. And so there's so many different opportunities that we can go after as long as we're providing the services. We're investing in the relationship. We've got that -- if we have that intact, we have an opportunity to grow the business.

東尼，關係就在那裡，機會就在那裡。因此，當你回顧去年五月時，我們展示了其曲棍球季後賽的實力。所以我相信，我們向客戶展示了九次投籃。只要我們提供服務，我們就可以抓住許多不同的機會。我們正在投資這種關係。我們已經擁有了這一點——如果我們能保持這一點，我們就有機會發展業務。

(Operator Instructions)

（操作員指示）

Josh Chan, UBS.

瑞銀的 Josh Chan。

Hi, good morning, Jerry, congrats on a very strong quarter. I guess two commercial questions for me. First one, just strategically, as you make these investments what's kind of your strategy in picking up new accounts? I assume you're going to have to displace existing competitors. And so I was just wondering how you're going about gaining the new accounts on commercial?

嗨，早上好，傑瑞，恭喜你本季業績強勁。我想問兩個商業問題。首先，從策略上講，當您進行這些投資時，您獲取新帳戶的策略是什麼樣的？我認為你必須取代現有的競爭對手。所以我只是想知道您打算如何在商業上獲得新帳戶？

Thank you.

謝謝。

So I give you a little bit of color here, but obviously, I don't want to say too much about what our strategies are competitively. But when you have clearly defined territories, trained teammates that know what verticals they like to sell in, where the opportunities are, what those opportunities are and you point them in the right direction. You got to have really strong sales management processes, sales management tools, sales management disciplines. That's really more of what it's about. And when you have people, you have the brand, you have scale, we can handle just about any type of thing that anybody could throw at us.

所以我在這裡給你一點點介紹，但顯然，我不想談太多我們的競爭策略。但是，當你有明確界定的區域，訓練有素的隊友知道他們喜歡在哪些垂直領域銷售，機會在哪裡，這些機會是什麼，並且你為他們指明了正確的方向。你必須擁有真正強大的銷售管理流程、銷售管理工具和銷售管理紀律。這才是它真正要表達的意思。當你有了人才、有了品牌、有了規模，我們就能處理任何人交給我們的任何類型的事情。

It's just a come-- that's our competitive advantage is our people. Other than that, I wouldn't say there's anything magical competitively out there in the market that is going on, (inaudible) dynamic there. It's just a function of looking at what we do, investing in our people, investing in our teams, investing in our technology that helps us in that regard and just going after the business. And yes, you're displacing others. Some people may be don't have a service if it's maybe there's an office building or something like that, that hasn't considered pest control yet and we happen to show up and present what we have to offer, cold calling and those types of things that your presence gets expanded with feet on the street, and that's the investment that we've made.

這就是我們的競爭優勢——我們的員工。除此之外，我不會說市場上正在發生的具有神奇競爭力的事情，（聽不清楚）存在動態。這只是審視我們所做的事情，投資我們的員工，投資我們的團隊，投資在這方面幫助我們的技術，並追求業務。是的，你正在取代其他人。有些人可能沒有服務，例如辦公大樓或類似的地方，還沒有考慮蟲害控制，而我們恰好出現並展示我們能提供的服務，電話行銷和諸如此類的事情，您的存在感隨著街道的擴大而擴大，這就是我們所做的投資。

That makes a lot of sense. And then on the -- maybe more numbers question on commercial. I know, Ken, you mentioned Orkin recurring organic growth was almost 10% in the segment with [7]. So could you just kind of bridge us? Are there any other pieces there between Orkin and the onetime, how the 10% gets to 7% and then how you expect kind of these pieces to kind of flow going forward?

這很有道理。然後——也許還有更多關於商業的數字問題。我知道，肯，你提到奧肯的經常性有機成長率幾乎達到了 10%，[7]。那你能為我們搭建橋樑嗎？Orkin 和一次性之間還有其他部分嗎？ 10% 如何達到 7%？然後您預計這些部分未來會如何發展？

Thank you.

謝謝。

Certainly. And that close to 10% was across the business. So it's not just the Orkin in area, but it's across the business. The team is doing a really good job driving that level of performance. But we do have a onetime part of the business.

當然。這接近 10% 是整個業務範圍內的。因此，這不僅發生在奧肯地區，也影響整個產業。該團隊在推動這一績效水準方面做得非常出色。但我們確實有一次性業務的一部分。

There is a onetime aspect of commercial fumigation work, other work that is more onetime oriented. We just saw a little bit weaker onetime business in the quarter. That 1 less day certainly has an impact when it comes to that -- with the contribution. And so when I think about it, that's probably the single largest contributor is having one less day in that part of our business and drawing that down.

商業熏蒸工作具有一次性性，其他工作則更注重一次性。我們只是看到本季的一次性業務略有疲軟。從貢獻的角度來說，少一天肯定會產生影響。因此，當我考慮這一點時，這可能是最大的單一因素，即我們業務的這一部分減少了一天，並減少了這一部分。

Great, thanks for the color and good luck in the rest of the year.

太好了，謝謝你的色彩，祝你今年餘下的時間好運。

Thank you, Josh.

謝謝你，喬希。

Ashish Sabadra, RBC Capital Markets.

加拿大皇家銀行資本市場 (RBC Capital Markets) 的 Ashish Sabadra。

This is David Paige on for Ashish. I had a question. I know you mentioned the fleet was maybe less than 5% of cost. But I was curious to know how much of the fleet has been actually refreshed or how much will be needed to be refreshed over, let's say, the next like 1 to 2 years?

這是 David Paige 為 Ashish 主持的節目。我有一個問題。我知道您提到艦隊的成本可能還不到 5%。但我很好奇，想知道有多少艦隊實際上已經更新，或者在未來 1 到 2 年內需要更新多少艦隊？

Thank you.

謝謝。

You know it's hard to give a precise number on how much of our fleet's going to get refreshed over the next 12 months, but what I would say, and the reason I think we have some confidence is we feel good about our level of fleet in 25 here.

您知道，很難給出未來 12 個月內我們的機隊將更新多少的精確數字，但我想說的是，我認為我們有信心的原因是我們對這裡的 25 架飛機的機隊水平感到滿意。

We'll continue to evaluate 26 and beyond. But we're, we'll continue to look at that. We have an opportunity to keep trucks longer if we need to. We have an opportunity, we continue to look at a number of different sources, but we feel pretty good about our position in that area.

我們將繼續評估 26 及以後的版本。但我們會繼續關注這個問題。如果需要的話，我們有機會讓卡車停駛更久。我們有機會，我們繼續尋找許多不同的來源，但我們對自己在該領域的地位感到非常滿意。

Yes, we have to do the math to say, what are we -- what's the potential exposure to increase repair and maintenance cost by keeping some trucks longer versus the in of, say, truck and tariffs and things like that. So but at the same time, we also need to be looking for maybe lighter duty, smaller utility vehicles that we can -- maybe there are some options that we have can find out there that we can get less expensively and offset some of those costs as well. So we're looking at all those opportunities and levers.

是的，我們必須進行計算，看看我們——延長一些卡車的使用時間與卡車、關稅等因素相比，增加維修和保養成本的潛在風險是多少。所以，但同時，我們還需要尋找更輕、更小的多功能車輛——也許我們可以找到一些選擇，以更低的成本獲得它們，並抵消其中的一些成本。因此，我們正在尋找所有這些機會和槓桿。

Okay. Makes sense. Just as a follow-up, in terms of like big ticket items or nonrecurring revenue, you have a slide in the deck here, Slide 9 of the past slowdown, GFC, industrial slowdown, COVID, et cetera. How has those nonrecurring or big ticket items? How did they fared during those downturns? Just as a reminder.

好的。有道理。作為後續行動，就大件商品或非經常性收入而言，這裡有一張幻燈片，第 9 張幻燈片介紹了過去的經濟放緩、全球金融危機、工業放緩、COVID 等等。那些非經常性項目或大件項目的情況如何？在經濟低迷時期他們過得怎麼樣？只是提醒一下。

Thank you.

謝謝。

So it's always hard to compare our business today to the great financial crisis because it's just so different. We have so many different brands today than we had back in 2008 and '09. And so the business has continued to evolve. If anything, we have a much more defensive business. We've got more diversification in the base.

因此，我們很難將今天的業務與金融危機時期的業務進行比較，因為它們有很大不同。與 2008 年和 2009 年相比，我們今天擁有的品牌種類繁多。因此業務一直在不斷發展。無論如何，我們的業務防禦性更強。我們的基礎更加多元。

And when we look at our performance, it's interesting we were seeing great performance across those onetime areas, notably in the termite area, which is the largest. And so that's an area that we certainly see good demand levels for continue to see good levels of interest. We also provide opportunity for customers to access our [Acceptance Corp.] for credit. We certainly have pretty tight credit standards when it comes to that, but we also have an opportunity to provide our customer with and our [sales] folks with another tool in the toolbox to sell those products, but -- or sell those services.

當我們回顧我們的表現時，有趣的是，我們看到了這些曾經的區域的出色表現，特別是在最大的白蟻區域。因此，我們確實看到了該領域良好的需求水平，並且繼續保持良好的興趣水平。我們也為客戶提供向我們的 [Acceptance Corp.] 申請信貸的機會。在這方面，我們的信用標準確實非常嚴格，但我們也有機會為我們的客戶和銷售人員提供另一種工具來銷售這些產品或服務。

But generally, when we look at it, we feel good about the onetime business. And the one area we look at, again, is the termite and ancillary and how that [performing] and continues to perform very well.

但總的來說，當我們回顧它時，我們對一次性業務感覺良好。我們再次關注的一個領域是白蟻和輔助設備，以及它們的[表現]如何並繼續表現良好。

David, this is my perspective on the reality of this is, if my attic at my house had rodent infestation with rodent droppings and rodent urine throughout and in the installation, I can assure you that no matter what the economy is, I'm going to find a way to figure that out and remediate that situation because I don't want to live like that. And then on top of it, you add our financing options, how you can pay over time or finance that type of work over time. That's -- those are tools that we have to help us navigate these types of events because the reality is quality of life being what it is today, people don't want to live like that. And we have a -- we offer a very valuable and essential service to people that's what makes us, I think, as resilient as you've seen in those charts.

大衛，這是我對現實情況的看法，如果我家的閣樓在安裝過程中和安裝過程中出現鼠患，到處都是鼠糞和鼠尿，我可以向你保證，無論經濟狀況如何，我都會找到辦法解決這個問題並改善這種情況，因為我不想那樣生活。然後在此基礎上，您可以新增我們的融資選項，以了解如何分期付款或分期為此工作融資。那是——那些是我們必須用來幫助我們應對此類事件的工具，因為現實是，人們今天的生活品質就是這樣，人們不想那樣生活。我們為人們提供非常有價值和必要的服務，我認為這就是我們如此有韌性的原因，正如你在圖表中看到的那樣。

Yes, couldn't agree more. Thank you very much.

是的，完全同意。非常感謝。

Stephanie Moore, Jefferies.

史蒂芬妮摩爾，傑富瑞集團。

Hi, good morning. Appreciate it. I guess continuing on the theme of potential recession here. It's been a while since I think we've -- and to your point, the business has evolved quite a bit since the last recession. But as you think about maybe the recurring side of the residential business, which I think from a relative standpoint, it's probably maybe less defensive than commercial or as we just described, some of these that are definitely necessities. But can you talk about maybe levers that you pull to maintain client retention in a recessionary environment? And also, maybe your perspective about customers' willingness to potentially trade down or reduce their monthly bill and what levers you can pull just to kind of maintain kind of status quo?

嗨，早安。非常感謝。我想這裡繼續討論潛在經濟衰退的主題。我認為我們已經有一段時間了——正如你所說，自上次經濟衰退以來，業務已經有了很大的發展。但是，當你考慮住宅業務的經常性方面時，我認為從相對的角度來看，它的防禦性可能不如商業業務，或者正如我們剛才所描述的，其中一些肯定是必需品。但是您能否談談在經濟衰退的環境下，您採取了哪些手段來維持客戶保留率？此外，您是否了解客戶降低消費或減少每月帳單的意願，以及您可以採取哪些措施來維持現狀？

Thank you.

謝謝。

So Ken, I'll try to take this. I'm going to put it in perspective of -- I remember in 2008, I was with the HomeTeam brand, and we were completely tied to homebuilding. We captured customers, and it was predominantly a residential business, and you had people losing their homes, people upside down in their homes, people walking away from their homes. And yet, if customers were still in their house, our customer retention rate was still pretty solid, and it's because of the relationships that we have with our clients. Our customers had personal relationships with their technicians.

所以肯，我會盡力接受這件事。我要從這個角度來看這個問題——我記得 2008 年，我當時在經營 HomeTeam 品牌，我們完全與房屋建築業緊密相關。我們抓住了客戶，這主要是住宅業務，有人失去了家園，有人在家裡倒塌，有人離開家園。然而，如果顧客仍然在家，我們的客戶保留率仍然相當穩定，這是因為我們與客戶的關係。我們的客戶與他們的技術人員有著私人關係。

And from a share of wallet standpoint, it wasn't -- just wasn't a lot of money for folks during those periods of times. There were some markets that I remember -- gosh, this is going back a while now, but there were some markets I remember having to -- we would look at a customer. It's been with us a while, that was struggling financially and maybe we put them on a hold for a month or 2 months or we'd work with them or we'd work on -- back in those days, we didn't have monthly building plans. We would convert them, try to convert them to monthly billing plans, so they didn't have a larger outlay of cash say every quarter. We try to work with our customers because we know the cost to reacquire customers far greater than some costs to keep them.

從錢包份額的角度來看，在那些時期，對人們來說，這並不是很多錢。我記得有些市場——天哪，這已經是很久以前的事了，但我記得有些市場必須——我們會關注客戶。它已經和我們合作了一段時間，當時經濟上很困難，我們可能會讓他們暫停一個月或兩個月，或者我們會與他們合作，或者我們會繼續合作——在那些日子裡，我們沒有每月的建設計劃。我們會轉換它們，嘗試將它們轉換為按月計費計劃，這樣他們就不會每季都有較大的現金支出。我們盡力與客戶合作，因為我們知道重新獲得客戶的成本遠高於留住客戶的成本。

So we -- our brands can easily put in playbooks to learn from the past and make those kinds of adjustments. But it's usually a market-by-market kind of branch to branch kind of a situation based on what's going on there, household income, how hard a certain market is hit. So for example, back in 2008, there were markets like California, where it was -- in Florida that were hit way harder than, say, Texas was, right? So we had to pull those levers differently from market to market. So we're able to do that.

因此，我們的品牌可以輕鬆地採用劇本來吸取過去的教訓並做出此類調整。但這通常是根據各個市場的情況、家庭收入以及某個市場受到的打擊程度，在各個分支機構之間逐一實施的。舉例來說，早在 2008 年，加州、佛羅裡達州等市場受到的打擊就比德州嚴重得多，對嗎？因此，我們必須針對不同的市場採取不同的措施。所以我們可以做到這一點。

We give our field autonomy to make those decisions, especially with customers that have been with us for a long time.

我們賦予我們的領域自主權來做出這些決定，特別是對於與我們合作了很長時間的客戶。

Got it. No, that's really helpful. And then maybe talk about given the uncertainty in the market and maybe risk of recession or gosh, who knows at this point. Do you think this actually could be an enabler of your M&A strategy, willing sellers looking to just kind of throw in the towel in this more challenging environment, something you can take advantage of?

知道了。不，這真的很有幫助。然後也許會談論市場中的不確定性以及可能出現的經濟衰退風險，天哪，誰知道呢。您是否認為這實際上可以成為您併購策略的一個推動因素，即在這種更具挑戰性的環境中，賣家願意放棄，而您可以利用這一點？

Thank you.

謝謝。

I don't know. I don't necessarily think that because I think in this business, they'll have a lot of the same headwinds and tailwinds as we do. What's great about this entire industry. And we're going to have fleet challenges -- they're going to have fleet challenges. I don't think there's anything that's suddenly facing them.

我不知道。我並不必然這麼認為，因為我認為在這個行業中，他們會像我們一樣面臨許多相同的逆風和順風。整個產業有什麼優點？我們將面臨艦隊挑戰——他們也將面臨艦隊挑戰。我認為他們並沒有突然面臨什麼事情。

Maybe there's some market-to-market differences or some customers they serve that are impacted or something along those lines. But I haven't thought about that much, but I wouldn't think it would cause a bunch of people to suddenly want to sell their [business].

也許存在一些市場差異，或者他們服務的一些客戶受到了影響，或者類似情況。但我還沒想那麼多，但我不認為這會導致一群人突然想賣掉他們的[商業]。

A lot of these businesses, Stephanie, are family-owned, multi-generation. They've been around for a very long time through a lot of different cycles. And they're not basing their selling decision. The ones that we like to buy aren't basing their selling decisions based upon a short-term macroeconomic of that. We're buying good businesses that have been around for decades, if not longer.

史蒂芬妮，這些企業中有很多都是家族企業，由多代人經營。它們已經存在很長時間了，經歷了許多不同的週期。他們也沒有以此為基礎做出銷售決定。我們喜歡買的股票不會根據短期宏觀經濟狀況做出出售決定。我們收購的是已經存在幾十年甚至更長的優秀企業。

Sure, there's other businesses that maybe haven't been around as long. But generally, our preferred approach is to buy those businesses that are looking at it through a long-term lens.

當然，其他一些企業可能成立的時間還不長。但一般來說，我們傾向於收購那些具有長遠眼光的企業。

Understood. Thank you guys.

明白了。謝謝你們。

Brian McNamara, Canaccord Genuity.

Canaccord Genuity 的 Brian McNamara。

Hey, good morning, guys. Thanks for taking the questions. I'm curious if you have an idea of how fast the industry as a whole is growing kind of particularly in Q1. You guys have had pretty strong organic growth for some time now. And your larger peer clearly is lagging you in that regard. So there's share gains there. But any more color on maybe some of the smaller players would be helpful.

嘿，大家早安。感謝您回答這些問題。我很好奇您是否知道整個行業的成長速度有多快，尤其是在第一季。一段時間以來，你們已經實現了相當強勁的有機成長。而你的體格更大的同行在這方面明顯落後於你。因此，那裡的份額有所增長。但也許對一些較小球員的更多了解會有所幫助。

I don't think we have a strong sense of how others are doing other than what you see, I guess, maybe in a public market. I would say, wait for [Tim Mill Rooney's] pest index report that come probably be out in the next month or so. They'll have a pretty good sense of -- of what that looks like, but that's probably one of the better tools out there. to help with that.

我認為，除了你在公開市場上看到的情況之外，我們對其他人的表現並沒有很強的了解。我想說，等待 [Tim Mill Rooney] 的害蟲指數報告，該報告可能在下個月左右發布。他們會對它的樣子有很好的認識，但這可能是目前更好的工具之一。來幫助解決這個問題。

Market continues to be good. We feel like it's a good market, continues to be healthy. Market share and market data is very much art more than it is science. But we just feel like from where we sit, we're growing and probably gaining a little bit of share.

市場持續向好。我們覺得這是一個好的市場，並且持續健康發展。市場佔有率和市場數據與其說是科學，不如說是藝術。但我們只是覺得，從目前的情況來看，我們正在成長，並且可能會獲得一點份額。

And then secondly, I was hoping you guys could provide some kind of update on your employee retention efforts, particularly with the first year tax and how you think that evolves in a potentially softening labor market environment? I'm assuming that's probably beneficial there.

其次，我希望你們能夠提供一些關於員工保留工作的最新信息，特別是第一年的稅收，以及您認為在可能疲軟的勞動力市場環境中這將如何發展？我認為這可能有益。

We've made some -- I'm really proud of the -- we've just spent this last week reviewing those numbers from the first quarter. I'm really proud of our operations teams. They've made [marked] improvement in our first year retention, double-digit improvements percentage-wise in what we call the short-term retention, making sure the folks that have been with us for less than a year are staying longer. So I'm really proud of that. And as a result of that, we'd make far fewer new hires in the first quarter than we did a year ago.

我們做了一些——我對此感到非常自豪——我們剛剛花了上週的時間回顧了第一季的數據。我對我們的營運團隊感到非常自豪。他們在我們第一年的保留率方面取得了[顯著]的提高，在我們所謂的短期保留率方面，百分比提高了兩位數，確保與我們共事不到一年的員工能夠留任更長時間。所以我對此感到非常自豪。因此，我們第一季新招聘的人數比去年同期少得多。

and that's proof that of the improvements that we've made in that regard. We're really proud of that. Certainly still work to do. Still have plenty of work to do on that front, but we are beginning to see light at the end of the tunnel on that one and maybe the [fiber market] is helping with some of that, too.

這也證明我們在這方面取得了進步。我們對此感到非常自豪。當然還有工作要做。在這方面仍有許多工作要做，但我們開始看到隧道盡頭的曙光，也許[光纖市場]也在其中提供了一些幫助。

Yeah, [Pastornowski], the Head of our Orkin business, actually sent me a note this morning, and he was talking about that as one of his highlights the significant improvements in first year PC pro technician was led by the head of his HR and all of the divisional directors seeing really good engagement and results.

是的，我們 Orkin 業務的主管 [Pastornowski] 今天早上確實給我發了一封郵件，他強調說，第一年 PC 專業技術員的顯著進步是由他的人力資源主管領導的，所有部門主管都看到了非常好的參與度和成果。

Great, thanks a lot.

太好了，非常感謝。

With no further questions, I would like to turn the conference back over to management for closing remarks.

如果沒有其他問題，我想將會議交還給管理階層結束語。

Thank you, everyone, for joining us today. We appreciate your interest in our company and look forward to speaking with you on our Q2 earnings call later this summer.

感謝大家今天加入我們。感謝您對我們公司的關注，並期待在今年夏天晚些時候的第二季財報電話會議上與您交談。

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

謝謝。今天的會議到此結束。現在您可以斷開您的線路了，感謝您的參與。