Rollins Inc (ROL) 2025 Q2 法說會逐字稿

Greetings, and welcome to the Rollins Inc., second-quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

大家好，歡迎參加羅林斯公司2025年第二季財報電話會議。 （操作員指示）提醒一下，本次會議正在錄音。

It's now my pleasure to turn the call over to your host, Lyndsey Burton, Vice President, Investor Relations. Lindsey, please go ahead.

現在，我很高興將電話轉給主持人、投資者關係副總裁林賽伯頓 (Lyndsey Burton)。林賽，請開始。

Thank you, and good morning, everyone. In addition to the earnings release that we issued yesterday, 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。除了我們昨天發布的財報外，公司還準備了一個配套的幻燈片簡報。財報和演示可在我們的網站 www.rollins.com 上取得。我們在今天早上的討論中納入了某些非公認會計準則 (Non-GAAP) 財務指標。非公認會計準則 (Non-GAAP) 對帳表可在今天的演示附錄以及我們的財報中取得。

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, 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 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 31, 2024.

本公司的獲利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中所做的所有其他陳述（不包括歷史事實）均受諸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。請參閱昨日的新聞稿以及公司向美國證券交易委員會 (SEC) 提交的文件，包括我們截至 2024 年 12 月 31 日的 10-K 表格中的「風險因素」部分。

On the line with me and speaking today 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.

今天與我通話並發言的有總裁兼執行長傑瑞‧加爾霍夫 (Jerry Gahlhoff) 和執行副總裁兼財務長肯‧克勞斯 (Ken Krause)。管理層將致開幕詞，然後我們將開始回答大家的提問。

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 second-quarter results. Overall, we continue to see solid growth across all major service lines with total revenue growth of 12.1% and organic growth of 7.3%.

謝謝Lyndsey。大家早安。我很高興地報告，羅林斯第二季業績強勁。整體而言，我們所有主要服務線持續保持穩健成長，總收入成長12.1%，有機成長7.3%。

The growth was healthy, but a little choppier movie through the quarter due to some seasonality, particularly in parts of the country where we saw a cold and wet start to peak season. Demand picked up in June, resulting in a strong backlog of work going into July, which is made for a busy start to Q3 for our team.

本季成長穩健，但由於季節性因素，尤其是在美國部分地區，旺季開始天氣寒冷潮濕，波動較大。 6月份需求回升，導致7月積壓了大量工作，這為我們的團隊在第三季的開局奠定了堅實的基礎。

I'm thrilled with the progress we're making thus far with the Saela acquisition that we announced in April. The integration has gone smoothly, and their performance is exceeding our expectations. Thanks to the efforts of our collective teams, we've ensured that Saela can remain focused on their customers and teammates without disruption. I'd like to express my gratitude to the Saela team and to all of our Rollins teammates that have worked so hard to make this happen.

我對我們在四月宣布收購Saela以來的進展感到非常興奮。整合過程進展順利，他們的業績超出了我們的預期。感謝我們團隊的共同努力，確保Saela能夠專注於服務客戶和團隊成員，不會受到任何干擾。我要向Saela團隊以及所有為實現這一目標而辛勤工作的Rollins團隊成員表示感謝。

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.

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，讓我們有機會與潛在客戶進行多次接觸，同時也在客戶獲取方面提供了一定的平衡和多樣化。

The addition of Saela further strengthens these competitive advantages for us. 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 the season began.

Saela 的加入進一步增強了我們的競爭優勢。我們對策略併購機會的投資也與持續的投資相輔相成，旨在推動有機成長。正如預期的那樣，我們在旺季來臨之前繼續投資於增量銷售人員配置和行銷活動，以確保我們在旺季開始就成為消費者最青睞的品牌。

We are well staffed on the sales, technician and customer support front with our teammates onboarded, extensively trained and ready to provide an exceptional level of service for our customers.

我們在銷售、技術人員和客戶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。

On the commercial side of our business, we are encouraged by our momentum. 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 growth in the second quarter.

在商業業務方面，我們對其發展勢頭感到鼓舞。過去一年，我們策略性地增加了資源，以支持奧肯旗下專門的商業部門。這些資源正在帶來回報，奧肯商業部門在第二季度實現了兩位數的持續性成長。

As a reminder, while commercial takes a little more upfront investment to drive growth, it's also the highest retention business among our service lines, making the lifetime value of these customer relationships very attractive.

提醒一下，雖然商業需要更多的前期投資來推動成長，但它也是我們服務線中保留率最高的業務，這使得這些客戶關係的終身價值非常有吸引力。

And I'm excited to announce that we recently promoted Scott Weaver to Chief Operating Officer of Commercial Operations for Orkin. Scott has been incremental in leading our commercial efforts over the past few years and will help to drive further alignment and focus in his elevated role.

我很高興地宣布，我們最近晉升斯科特·韋弗 (Scott Weaver) 為奧肯商業營運首席營運長。過去幾年，史考特在領導我們的商業工作方面一直發揮著重要作用，他的新職位將進一步促進團隊的協調和專注。

Beyond growth, our dedication to operational efficiency and continuous improvement is an important part of our strategy and culture. Ken will discuss in more detail, but we did see some headwinds to our margin performance in the quarter. Most notably from insurance claims and less vehicle gains in our fleet versus last year.

除了成長之外，我們對營運效率和持續改善的執著追求是我們策略和文化的重要組成部分。 Ken 將進行更詳細的討論，但我們在本季的利潤率表現確實面臨一些阻力。最明顯的是保險理賠和車隊車輛增幅較去年同期下降。

Encouragingly, we did leverage our people costs despite ramping up staffing to align with our peak season. Our team also made tremendous improvements in teammate retention, especially with new hires, which helped as well. We also leveraged sales and marketing expenses despite ongoing investments we continue to make in support of our long-term growth objectives.

令人鼓舞的是，儘管為了配合旺季而增加了人員，我們仍然有效利用了人力成本。我們的團隊在團隊成員留任率方面也取得了顯著提升，尤其是在新員工留任方面，這也起到了一定作用。儘管我們持續投入資金以支持長期成長目標，但我們仍然有效地利用了銷售和行銷費用。

In closing, we're excited about where our business stands today. The year is off to a solid start, and demand from our customers remains strong. Our teams in the field are ready to support our customers through the peak season and I want to thank each of our teammates around the world for their ongoing commitment to our customers.

最後，我們對目前的業務狀況感到興奮。今年開局良好，客戶需求依然強勁。我們的第一線團隊已做好準備，在旺季為客戶提供支援。我要感謝我們遍佈全球的每一位團隊成員，感謝他們對客戶的持續承諾。

I'll now turn the call over to Ken.

我現在將電話轉給肯。

Thanks, Jerry, and good morning, everyone. The second quarter reflects continued strong execution by the team. A few highlights to start. Growth was robust for the second quarter. We delivered revenue growth of 12.1% year over year with organic growth of 7.3% versus last year.

謝謝，傑瑞，大家早安。第二季度體現了團隊持續強勁的執行力。首先介紹幾個亮點。第二季成長強勁。我們的營收年增12.1%，有機成長率與去年同期相比成長7.3%。

Gross margins remain very healthy. Gross margin of 53.8% is one of the highest quarterly gross margins that we've reported despite some meaningful headwinds from insurance claims and less vehicle gains, which are included in fleet costs versus a year ago.

毛利率依然非常健康。儘管保險理賠和車輛收益（已計入車隊成本）與去年同期相比有所下降，但本季毛利率仍達到53.8%，是我們報告的最高季度毛利率之一。

Our GAAP earnings were $0.29 per share, and excluding certain purchase accounting expenses, primarily associated with larger acquisitions like Fox and Saela, earnings were $0.30 per share. And finally, we delivered a 21% improvement in operating cash flow, while free cash flow was up over 23% versus the same period a year ago.

我們的GAAP每股收益為0.29美元，扣除主要與Fox和Saela等大型收購相關的某些收購會計費用後，每股收益為0.30美元。最後，我們的營運現金流成長了21%，而自由現金流則是年增了23%以上。

Diving further into the quarter, we saw double-digit growth across each of our service offerings. In the second quarter, resi revenues increased 11.6%, commercial pest control rose 11.4% and termite and ancillary increased by 13.9%. Organic growth was also healthy across the portfolio, with growth of 4.9% in residential, 8.4% in commercial, and 10.3% in termite and ancillary.

縱觀本季度，我們各項服務均實現了兩位數成長。第二季度，住宅服務收入成長11.6%，商業蟲害防治收入成長11.4%，白蟻及輔助服務收入成長13.9%。整個產品組合的有機成長也十分穩健，其中住宅服務收入成長4.9%，商業服務收入成長8.4%，白蟻及輔助服務收入成長10.3%。

Turning to profitability. Our gross margins were healthy at 53.8%, but down 20 basis points versus last year. We saw improvements in margins associated with direct costs, which represent over 85% of our cost of services and include our people, materials and supplies, and fleet expenses, excluding our vehicle gains. This was offset by the headwinds from insurance and claims that we previously discussed.

談到盈利能力。我們的毛利率保持健康，達到53.8%，但較去年下降了20個基點。直接成本相關的利潤率有所提高，這些成本占我們服務成本的85%以上，包括我們的人員、材料和物資以及車隊費用（不包括車輛收益）。這部分利潤被我們之前討論過的保險和理賠帶來的不利因素所抵銷。

Quarterly SG&A costs as a percentage of revenue increased by 40 basis points versus last year. We saw leverage on sales and marketing costs while fleet and administrative costs were neutral, and insurance and claims were a headwind.

本季銷售、一般及行政費用佔營收的百分比較去年同期上升了40個基點。銷售和行銷成本出現槓桿效應，車隊和管理成本保持中性，保險和理賠則面臨阻力。

Second-quarter GAAP operating income was $198 million, up 8.7% year over year, while adjusted operating income was $206 million, up 10.3% versus the prior year. Second-quarter EBITDA was $230 million, up 9.4% and representing a 23% margin. Our adjusted EBITDA was $231 million, up 10% and representing a 23.1% margin.

第二季GAAP營運利潤為1.98億美元，年增8.7%；調整後營運利潤為2.06億美元，年增10.3%。第二季EBITDA為2.3億美元，年增9.4%，利潤率為23%。調整後EBITDA為2.31億美元，較去年成長10%，利潤率為23.1%。

As previously mentioned, we made an adjustment of approximately $6 million to our reserve at the end of the quarter to account for developments on a handful of legacy auto claim cases, which weighed on incremental margins in the quarter.

如前所述，我們在本季末對我們的儲備金進行了約 600 萬美元的調整，以應對少數遺留汽車索賠案件的發展，這對本季度的增量利潤產生了影響。

Excluding this, our incremental margins would have approximated 25%. On a sequential basis, incremental margins from Q1 to Q2 were north of 30%, and we continue to anticipate an improving margin profile as we move through the back half of the year.

不計入此因素，我們的增量利潤率約為25%。環比來看，第一季至第二季的增量利潤率超過30%，我們預計下半年利潤率將持續改善。

The effective tax rate was 26% in the quarter, in line with our rate from a year ago. The quarterly GAAP net income was $141 million or $0.29 per share, increasing from $0.27 per share in the same period a year ago. For the second quarter, we had non-GAAP pretax adjustments primarily associated with the Fox and Saela acquisition-related items, totaling approximately $7 million of pretax expense in the quarter. Accounting for these expenses, adjusted net income for the quarter was $147 million or $0.30 per share, increasing 11.1% from the same period a year ago.

本季有效稅率為26%，與去年同期持平。季度GAAP淨利為1.41億美元，即每股0.29美元，高於去年同期的每股0.27美元。第二季度，我們進行了非GAAP稅前調整，主要與Fox和Saela收購相關項目有關，本季稅前支出總計約700萬美元。在計入這些支出後，本季調整後淨利為1.47億美元，即每股0.30美元，較去年同期成長11.1%。

And turning to cash flow and the balance sheet. Operating cash flow increased 21% in the quarter to $175 million. We generated $168 million of free cash flow, a 23% increase versus the same period a year ago. Cash flow conversion, the percent of net income that was converted into operating cash flow, was strong at 119% for the quarter. For the first half of 2025, we converted 125% of income into operating cash flow.

再來看看現金流和資產負債表。本季營運現金流成長21%，達到1.75億美元。我們創造了1.68億美元的自由現金流，較去年同期成長23%。現金流轉換率（即淨收入轉化為營運現金流的百分比）在本季表現強勁，達到119%。 2025年上半年，我們將125%的收入轉化為營運現金流。

We made acquisitions totaling $226 million, and we paid $79 million in dividends in the second quarter. Dividends increased 10% from the prior year and are at a very healthy and sustainable rate of approximately 45% of operating cash flow in Q2 and less than 50% of operating cash flow year-to-date.

我們完成了總計2.26億美元的收購，並於第二季支付了7,900萬美元的股息。股息較上年同期增長了10%，目前處於非常健康且可持續的水平，第二季度的股息約佔營運現金流的45%，年初至今的股息佔營運現金流的不到50%。

As you know, earlier in the year, we accessed the public debt markets and established a $1 billion commercial paper program. Despite higher debt balances associated with the Saela acquisition, our interest costs have declined by approximately 15% on a year-to-date basis. Our leverage ratio stands at a healthy 0.9 times, and our balance sheet remains very healthy, and it positions us well to continue to execute on our capital allocation priorities.

如您所知，今年早些時候，我們進入了公共債務市場，並建立了一個10億美元的商業票據計劃。儘管收購Saela導致債務餘額增加，但我們的利息成本年初至今已下降約15%。我們的槓桿率保持在健康的0.9倍，資產負債表也保持非常穩健，這使我們能夠繼續執行資本配置重點。

As Jerry mentioned, we closed the Saela acquisition earlier in April and are very excited about the strategic growth opportunities this acquisition will provide us. Saela performed exceptionally well in the second quarter, growing double digits versus last year, while margins were accretive to our margin profile.

正如Jerry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。 Saela在第二季表現優異，年增兩位數，利潤率也顯著提升了我們的利潤率。

As we look to the remainder of 2025, we remain encouraged by the strength of our markets, our exceptional resilient business model, and the execution by our teams. We are positioned extremely well to deliver on our financial objectives despite uncertainty in the current macroeconomic environment.

展望2025年剩餘時間，我們依然對強勁的市場、卓越的韌性業務模式以及團隊的執行力感到鼓舞。儘管當前宏觀經濟環境充滿不確定性，但我們仍處於非常有利的位置，能夠實現財務目標。

We continue to expect organic growth in the 7% to 8% range for the year, with growth from M&A of 3% to 4%. We remain focused on improving our incremental margin profile while investing in growth opportunities. And we anticipate that cash flow will continue to compound and convert at a rate that is above 100% in 2025.

我們預計今年的有機成長率將維持在7%至8%之間，併購帶來的成長將達到3%至4%。我們將繼續專注於提升增量利潤率，同時投資成長機會。我們預計，到2025年，現金流將繼續以超過100%的複合和轉換率成長。

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.

謝謝肯。我們很樂意回答任何問題。

(Operator Instructions) Tim Mulrooney, William Blair.

（操作員指示）蒂姆·穆爾羅尼、威廉·布萊爾。

I was hoping you could unpack the residential performance a little bit in the quarter. It looks like organic growth was 4.9%. Can you maybe unpack that between the recurring component and onetime services? And maybe touch on residential lead volumes as you were moving through the second quarter, exiting the second quarter and the first couple of weeks here in the third quarter?

我希望您能稍微分析一下本季住宅業務的表現。看起來有機成長率是4.9%。您能否分析一下經常性業務和一次性服務之間的差異？此外，您能否談談第二季、第二季結束以及第三季前幾週住宅業務的銷售線索量？

Certainly, Tim. Thank you for the question. Overall, as Jerry had indicated in the prepared commentary, a little bit choppy. We started the quarter, April was pretty healthy. May was weak, but then June came back very strongly. And in fact, we exited June with a very strong backlog.

當然，提姆。謝謝你的提問。總的來說，正如傑瑞在準備好的評論中提到的那樣，情況有點波動。本季伊始，4月份的業績相當健康。 5月份表現疲軟，但6月的業績強勁反彈。事實上，6月底我們積壓訂單非常充足。

We had a number of high points for us as we think about the quarter. And our growth, quite frankly, was accretive in June to the overall quarter. And so we continue to see really good robust level of demand. It provides us a sense of optimism as we start the second half.

回顧本季，我們取得了不少佳績。坦白說，6月份的成長對整個季度而言是積極的。因此，我們持續保持強勁的需求。這讓我們對下半年的開始充滿樂觀。

When I step back and I look at the growth that we posted in the first half of this year, we posted 5.2% residential revenue growth. And I compare that to what we saw for the full year last year. We delivered 5.2% in the full year last year. So it gives you a sense is things aren't really falling off; things are holding in there. And we feel like at that level, we can continue to deliver on our financial commitments and our growth profile.

回顧我們今年上半年的成長情況，我們發現住宅收入成長了5.2%。我將其與去年全年的增速進行了比較。去年全年的成長速度是5.2%。這讓我們感覺到，情況並沒有真正下滑，而是保持了穩定。我們認為，在這個水平上，我們可以繼續履行我們的財務承諾，並保持成長勢頭。

Tim, this is Jerry. I'm certainly not concerned about what we saw on the residential side because it's still pretty strong. And it was, as Ken mentioned, in May, May was the tougher months as it was just rainy, cold, productivity was hard, it was definitely a challenge.

提姆，我是傑瑞。我當然不擔心住宅市場的情況，因為它仍然相當強勁。正如肯所提到的，五月是比較艱難的月份，因為陰雨連綿、寒冷刺骨，生產效率低下，這無疑是一個挑戰。

The second part of your question, you asked about lead volumes and what we're seeing in terms of lead volumes. And that entire -- when you think about Orkin, which is lead volumes driven, especially in the digital channel, the team at Orkin did a fantastic job navigating some changes.

你問題的第二部分是關於潛在客戶數量以及我們目前看到的潛在客戶數量。說到Orkin，它完全是由潛在客戶數量驅動的，尤其是在數位管道，Orkin的團隊在應對一些變化方面做得非常出色。

You think about what's happened with Google and Google's AI agent and AI overviews and the shift that that's had, our marketing team has had to make some adjustments in this environment. And the reality of what happens is you start seeing some softening on the lead side; however, what we do get and what the team has adjusted for is -- their adjustments have allowed us to get higher quality leads. Those higher-quality leads, then we get a lot fewer -- what we noticed, we get a lot fewer window shoppers. and we get more real serious buyers.

想想Google、Google的人工智慧代理和人工智慧概覽以及由此帶來的轉變，我們的行銷團隊不得不在這種環境下做出一些調整。實際情況是，你開始看到潛在客戶方面出現一些疲軟；然而，我們確實獲得了一些線索，團隊也做出了相應的調整——他們的調整讓我們獲得了更高品質的線索。在這些高品質的線索之後，我們獲得的線索少了很多——我們注意到，那些只是隨便看看的顧客少了很多，而真正認真的買家越來越多。

When you have that, you're driving higher close rates and some efficiency in the process there by closing more, which also translates into higher start rates. So we're able to close new customers at a higher rate, get them started at a higher rate because there are people that really truly wanted to service and that then causes us to net nice sales increases.

當你擁有這些能力時，你就能提高成交率，並透過成交更多客戶來提高流程效率，這也會轉化為更高的啟動率。因此，我們能夠以更高的速度成交新客戶，並以更高的速度讓他們開始交易，因為有些人確實想要服務，這最終會讓我們實現可觀的銷售額成長。

And in fact, when you go into June, we were sitting in the process of -- by the second week of June, just setting daily sales records over and over again. Day after day, I was hearing the stories from Pat and team at Orkin about the sales increases they were saying. So those adjustments that the marketing team made, they just did a fantastic job in what on paper looks like a softening of lead volume, which is really a bit of a quality improvement that we've been seeing along the way.

事實上，進入6月，我們正處於不斷刷新日銷售記錄的階段——6月的第二週，我們不斷刷新日銷售記錄。日復一日，我聽到帕特和奧肯團隊講述他們所說的銷售成長的故事。所以，行銷團隊所做的那些調整，在紙上看起來似乎減少了銷售線索量，實際上他們做得非常出色，這實際上是我們一路走來看到的品質提升。

And then the other aspect that you mentioned about was recurring versus onetime. Both were similar, both trended similarly through the quarter. Onetime was good. We've noticed a lot of -- a big pickup, I think, because of the slightly cooler May. Some of the stinging pests and those kinds of things are really starting to peak now, whereas in the past, they may have started to peak earlier in June. Now they're starting to peak in July. So there's a little bit of a different shift there. It seems like we're maybe three to four weeks off of what I would say a normal cycle would be.

然後，您提到的另一個方面是反覆發生的和一次性發生的。兩者相似，整個季度的趨勢也相似。一次性發生的比較好。我們注意到了很大的回升，我想是因為5月氣溫略有下降。一些蜇人害蟲之類的現在真的開始達到高峰了，而過去它們可能在6月初就開始達到高峰了。現在它們在7月就開始達到高峰了。所以，這其中存在著一些不同的變化。看起來我們可能比正常的周期晚了三到四週。

Does that help, Tim?

這有幫助嗎，提姆？

Yes. That's all great color. And I do want to dig in a little bit more on one thing that you had mentioned there, Jerry. It's something I've been wanting to ask for a while around generative AI and its impact on your business, both on the revenue and cost side. Because on the revenue side, I'm wondering if you're taking any steps to optimize how Rollins appears on generative AI searches for pest control solutions.

是的，顏色真漂亮。 Jerry，我想進一步探討你提到的一件事。我一直想問一下生成式人工智慧及其對您的業務（包括收入和成本方面）的影響。在收入方面，我想知道您是否正在採取任何措施來優化Rollins在害蟲防治解決方案生成式人工智慧搜尋中的顯示方式。

I mean I know today, SEO is standard practice in the industry. But at one point, that was a novel approach, right? So it sort of feels like generative AI search optimization might be that at some point. And also then on the cost side, I'm curious if you're seeing any areas where you could leverage this technology, particularly as it relates -- we've seen how fast the functionality has expanded for chat bots and AI voice over the last couple of years.

我知道，如今搜尋引擎優化 (SEO) 已成為業界標準做法。但曾經，這是一種新穎的方法，對吧？所以感覺生成式人工智慧搜尋優化在未來某個時候可能也會成為一種新方法。此外，在成本方面，我很好奇您是否看到了可以利用這項技術的領域，尤其是在相關領域——我們已經看到，在過去幾年裡，聊天機器人和人工智慧語音的功能擴展速度非常快。

Yes, so maybe if you wanted to take the cost side, Ken. On the sales side, to me for competitive reasons, I don't want to get into the details of what we do other than to say our teams have certainly made some adjustments, and it's caused us to make some adjustments. And while, at first, we see that and just kind of go, oh, there's been a major shift, then like with anything, when Google went to LSA and other things, we've had to just change. We don't -- we shift where we put our marketing dollars, we shift our processes in the marketing side. It also affects how we think about the sales process.

是的，肯，如果你想從成本方面來說的話，或許可以。至於銷售方面，出於競爭原因，我不想詳細談論我們的工作，只想說我們的團隊確實做了一些調整，這也促使我們做出一些調整。雖然一開始我們看到了這些變化，會覺得“哦，這是一個重大的轉變”，但後來就像其他事情一樣，當谷歌轉向LSA（輕量級衛星導航）和其他一些業務時，我們也不得不做出改變。我們改變了行銷資金的投放方向，改變了行銷流程。這也影響了我們對銷售流程的思考。

So I would just say it has shifted how our marketing teams are looking at the overall picture. It has definitely had an impact. And the key is, can you be ahead of the game and making the changes that you need to stay with the times and adjust and allocate resources sometimes a little differently than maybe we have in the past.

所以我想說，這改變了我們行銷團隊看待整體情勢的方式。這確實產生了影響。關鍵在於，你能否走在時代前沿，做出必要的改變，與時俱進，調整和分配資源，有時可能與過去略有不同。

And again, I think our marketing team, particularly in the Orkin side, that does a lot of the performance marketing on the digital side, they just navigated that exceptionally well. And I would just leave it at that.

再說一次，我認為我們的行銷團隊，尤其是奧肯那邊的團隊，他們在數位領域做了很多績效行銷，他們在這方面做得非常好。我就不多說了。

Yes. On the growth side, the only thing I would add, too, is if we overly index too much on the digital or on the AI aspect of this, we miss the big part of the story and the big part of the story is the diversification across our portfolio.

是的。關於成長方面，我唯一想補充的是，如果我們過度依賴數位化或人工智慧，我們就會錯過故事的重點，而故事的重點就是投資組合的多元化。

And when you look at the quarter, for example, when you think about some of the brands that did exceptionally well, brands like Fox, brands like Saela, relatively new brands to the portfolio, different ways of marketing gives us a sense of optimism and confidence and that we've positioned the portfolio in the right manner to capitalize on growth trends regardless of what's occurring outside of our industry.

例如，當你回顧本季時，當你想到一些表現異常出色的品牌時，比如像 Fox 這樣的品牌、Saela 這樣的品牌，以及投資組合中相對較新的品牌，不同的營銷方式給了我們一種樂觀和信心的感覺，並且我們已經以正確的方式定位了投資組合，以便利用增長趨勢，而不管我們行業之外發生什麼。

The other thing on the cost side, I would say, yes, there's certainly opportunities there, but there's even more lower hanging fruit that we're going after. We, as a team and ELT, are really looking at our cost structure across the board and really challenging ourselves on what we can do better, how can we continue to improve our business. That's a core value of ours here at Rollins. And we're continuing to execute on that core value from the top, clear down through the organization.

關於成本方面的另一點，我想說，是的，這方面確實存在機會，但我們正在追求更多更容易實現的目標。我們作為團隊和ELT，正在認真審視我們的整體成本結構，並不斷挑戰自己，看看哪些方面可以做得更好，如何繼續改善我們的業務。這是我們羅林斯的核心價值。我們將繼續從上到下，在整個組織內實踐這項核心價值。

Manav Patnaik, Barclays.

巴克萊銀行的馬納夫·帕特奈克（Manav Patnaik）。

This is Ronan Kennedy on for Manav. I don't think you typically quantify contributions from the organic growth algo, but could you please provide context or some color on the contributions from pricing, volume, and your momentum from the multi-brand strategy?

我是 Ronan Kennedy，代表 Manav 進行報告。我認為您通常不會量化有機增長演算法的貢獻，但您能否提供一些背景信息，或者稍微解釋一下定價、銷量以及多品牌戰略帶來的增長動力的貢獻？

Certainly, I'll provide that, Ron, and thank you for the question. It's Ken. When you look at the pricing strategy, we continue to price at a CPI plus level. I think CPI recently printed just south of 3%. We're targeting price at the 3% to 4% sort of range.

當然，我會提供，Ron，謝謝你的提問。我是Ken。就定價策略而言，我們繼續以CPI+的水平定價。我認為CPI最近的漲幅略低於3%。我們的目標物價區間在3%到4%之間。

It's certainly not consistent across every one of our brands or every one of our geographies. But generally, that's the type of growth that we're -- or type of contribution from pricing that we're looking for. The remainder of that is volume.

當然，我們每個品牌或每個地區的情況並非都一致。但總的來說，這就是我們所追求的成長類型——或者說，我們期望的定價貢獻類型。剩下的就是銷量。

And it's hard to quantify how much of that volume is coming from additional services, cross-sell or things like that. But I can tell you is that we feel like the volume that we're getting coming through on the organic side is certainly outpacing the underlying market. We feel really good about that 7.3% organic growth that we posted, especially considering that June's growth was north of that. And so we continue to have a level of confidence in our ability to deliver on our financial algorithm.

很難量化其中有多少來自附加服務、交叉銷售或類似業務。但我可以告訴你，我們感覺到有機成長的量肯定超過了基礎市場。我們對7.3%的有機成長率感到非常滿意，尤其是考慮到6月的成長速度遠高於這個數字。因此，我們仍然對自己實現財務目標的能力充滿信心。

And if I may, a multifaceted question on margins, please. You talked about the benefit of pricing productivity, leverage across key cost categories for the peak season spend, the legacy auto claims. What was the impact of investments? And what would the adjusted incremental margins have been?

如果可以的話，請問一個關於利潤率的多面向問題。您談到了定價效率的益處、在關鍵成本類別中應對旺季支出的槓桿作用以及遺留的汽車索賠。投資的影響是什麼？調整後的增量利潤率是多少？

And then lastly, can you provide context on the update to the guided incrementals of approaching -- It was previously approaching 30%. And now I think it's the range of 25% to 30%. So some context around that, please?

最後，您能否提供一些關於指導增量更新的背景資訊？之前是接近30%。現在我認為是在25%到30%之間。請您提供一些相關的背景信息，好嗎？

Certainly. So when you look at the business and you think about the incremental margin in the quarter, excluding the insurance and claims, it was roughly 25%. If you recall, last year in the second half, we certainly ramped up investments in selling and marketing. In the second quarter of this year, we started to see a little bit of leverage, about 10 basis points, I want to say, of leverage associated with selling and marketing costs coming through the model.

當然。所以，當你審視我們的業務，並考慮到本季的增量利潤率（不包括保險和理賠）時，它大約是25%。如果你還記得的話，去年下半年，我們確實增加了對銷售和行銷的投資。今年第二季度，我們開始看到一些槓桿，我想說，大約10個基點，與銷售和行銷成本相關的槓桿透過這個模式體現出來。

If you set that aside and you look at -- or you set some of the additional investments aside, it's probably not unreasonable to think that those incremental margins were probably 28% to 30% when you eliminate some of that increased spend in selling and marketing.

如果您將其放在一邊並查看 - 或將一些額外投資放在一邊，那麼當您消除部分增加的銷售和行銷支出時，這些增量利潤率可能為 28％ 至 30％，這可能並非不合理。

When you step back and look at the business, this business should be a 30% incremental margin business. And we have confidence in our ability to deliver that. But what we will try to do is just provide a range on how we're looking at the business, the range of 25% to 30%. But I think what's more important is when you step back and look at the business, we delivered 7.3% organic growth in the quarter on revenue. We delivered 11% growth in adjusted earnings per share.

回顧我們的業務，這項業務的增量利潤率應該達到30%。我們有信心實現這個目標。但我們會盡力提供一個我們對此業務的預期範圍，也就是25%到30%之間。但我認為更重要的是，回顧一下我們的業務，我們本季實現了7.3%的有機收入成長。調整後每股收益成長了11%。

And we delivered 20%-plus growth in cash flow. Those metrics are very much in line with the historical trends of outperformance and compounding that we've continued to perform and deliver. And our focus is to continue to do that.

我們的現金流成長了20%以上。這些指標與我們一直以來維持的優異績效和複合成長率的歷史趨勢非常一致。我們的重點是繼續保持這種成長。

Toni Kaplan, Morgan Stanley.

摩根士丹利的東尼卡普蘭。

This is Yehuda Silverman on for Toni Kaplan. I had a quick question on M&A in the quarter. Decent amount of transactions [line], including Saela headlining. Just curious how you're seeing valuations and the competitive market in general?

我是耶胡達·西爾弗曼 (Yehuda Silverman)，接替托尼·卡普蘭 (Toni Kaplan)。我有個關於本季併購的簡短問題。交易數量相當可觀，包括塞拉 (Saela) 領銜。我只是好奇您如何看待估值和整個市場的競爭？

It's still a competitive marketplace. There's still a lot of PE in the space in particular, on smaller kind of tuck-in size deals, a little more competition there. I wouldn't characterize anything radically different in terms of valuations as a result of that. I think everybody has a -- there are different places and different geographies that certain people are willing to invest in, and we're right there in the mix looking at those deals that are strategic for us, that makes sense to us. And the pipeline continues to be very healthy, and we haven't seen any significant shift in that regard.

市場競爭依然激烈。私募股權投資（PE）在這個領域仍然有很多，尤其是在規模較小的小型交易中，競爭會更加激烈一些。我不認為估值會因此發生任何根本性的變化。我認為每個人都有自己的選擇——不同的地區和地理都有人願意投資，而我們正積極參與其中，尋找那些對我們具有戰略意義、對我們有意義的交易。而且，我們的投資管道仍然非常健康，我們在這方面沒有看到任何重大變化。

The only thing I would add to is, I think, Saela a great example of an acquisition that we recently completed that continues to hit on all five of the metrics that we commonly refer to. The business is growing strong double digits organically year over year. It's accretive to our margin profile in the first quarter of owning it. When you look at the earnings per share from a non-GAAP basis, it was about $0.01 in the quarter, and it's neutral to GAAP earnings. That's really hard to do in today's interest rate environment.

我唯一想補充的是，我認為Saela是我們最近完成的一項收購的一個很好的例子，它持續達到了我們通常提到的所有五項指標。該業務的有機成長率逐年保持兩位數的強勁成長。在收購Saela的第一季度，它提升了我們的利潤率。如果以非公認會計準則（Non-GAAP）計算，其每股收益約為0.01美元，與公認會計準則（GAAP）收益持平。在當前的利率環境下，這確實很難做到。

And we continue to see good cash flow, and we expect to lever or to exceed our cost of capital in a relatively near time frame. So that gives you an example that the multiples are healthy. We're paying the right value, and we're seeing really good returns on these investments.

我們持續保持良好的現金流，並預計在相對較短的時間內實現槓桿率或超過資本成本。這說明市盈率處於健康水平。我們支付的價格合理，這些投資也獲得了非常好的回報。

Great. And just a follow-up on what you mentioned before about the stronger demand in June flowing into July. Is that mainly in residential or across all segments?

好的。關於您之前提到的6月需求強勁，7月的需求會延續下去，我想問一下。這主要體現在住宅領域，還是所有領域都如此？

It's really all segments. All aspects of our business really took off strong in June, and there was certainly no shortage of work that carried over into the first week of July.

各部門都如此。我們業務的各個方面在6月份都取得了強勁成長，而且7月第一週的工作量也相當可觀。

George Tong, Goldman Sachs.

高盛的喬治通 (George Tong)。

Can you elaborate on the legacy auto claims that impacted margins this quarter? How predictable are these? And do you expect future margins to be affected?

您能否詳細說明一下影響本季利潤率的遺留汽車理賠情況？這些遺留理賠的可預測性如何？您預計未來的利潤率會受到影響嗎？

Thank you, George, for the question. I'll tell you, it's a really difficult area. We do our best. We work with an outside actuary. We have specialists that are involved in this and provide the best view that we can every time we close the books on a quarterly basis.

謝謝喬治的提問。我告訴你，這是一個非常棘手的領域。我們盡力了。我們與外部精算師合作。我們有專家參與其中，並在我們每季結帳時提供最佳意見。

But inevitably, things change, and that's what we saw this quarter. And we see that from time to time. Some of these claims are three, four, five years old, and they just matured during the course of a quarter. And as a result, we have to respond to the changing fact pattern that occurs during the quarter and adjust our financials.

但不可避免的是，情況會發生變化，而這就是我們本季所看到的。這種情況時有發生。有些索賠已經是三、四、五年前的了，它們只是在一個季度內到期。因此，我們必須根據本季不斷變化的情況模式做出反應，並調整我們的財務狀況。

What I would say is we're doing a lot on worker safety. We're doing a lot on automobile safety and driver safety and implementing a number of technologies. That's having an impact on the overall number of claims that we're seeing, but this is a very long tail sort of liability. And it oftentimes takes several years for these things to work out.

我想說的是，我們在工人安全方面做了很多工作。我們在汽車安全和駕駛員安全方面也做了很多工作，並實施了一系列技術。這對我們收到的索賠總數產生了影響，但這是一種長期責任。這些事情通常需要幾年時間才能解決。

And so we're going to continue probably to face this from time to time. We'll isolate it and identify this. We do put our best, most comprehensive reserve on the books every quarter with the help of our specialists. But we certainly understand that sometimes these are difficult to predict.

因此，我們可能還會時不時地面臨這種情況。我們會將其隔離並識別出來。我們確實會在專家的幫助下，每季將我們最優質、最全面的儲備金納入帳簿。但我們當然明白，有時這些情況很難預測。

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 was wondering if you could elaborate on some of the trends in commercial, how you're executing against your, I guess, midterm targets there? It seems like solid growth in the quarter. And then just as a follow-up, I was wondering if there was any tariff issues to call out in material supplies or even just fleet experience. So anything on that front or even demand also on tariffs?

我是 David Paige，負責 Ashish 的節目。我想請您詳細談談商業領域的一些趨勢，以及您如何實現中期目標？本季看起來成長穩健。接下來，我想問一下，在材料供應方面，或者只是機隊經驗方面，是否存在需要注意的關稅問題。請問在這方面有什麼問題嗎？或對關稅有什麼要求嗎？

Ken, I'll let you tackle the tariff thing, and I'll start with the commentary on the commercial side. Commercial has just been such a strong opportunity. We just continue to make investments in the staffing and growing our sales force, identifying where the opportunities are, the verticals we want to be in and the markets where we feel like we are underserved currently and adding resources and staffing, feet on the streets to go after it.

肯，我請你先處理關稅問題，然後我先從商業方面開始評論。商業領域一直是非常好的機會。我們將繼續在人員配置和銷售團隊建立方面進行投資，確定機會所在，我們想要涉足的垂直領域，以及我們認為目前服務不足的市場，並增加資源和人員，積極投入市場。

The playbook hasn't changed dramatically over the last two years, except that we just keep an intense focus on it. We're getting better at it. The marketing team is really aligning well as well with the commercial leaders of the business, knowing how to put our marketing and advertising resources on the commercial side.

過去兩年，我們的策略沒有太大變化，只是我們一直高度重視它。我們正在做得越來越好。行銷團隊與業務的商業領袖也配合得很好，知道如何將我們的行銷和廣告資源投入商業領域。

So it's just humming and we're going to continue to be committed. It's just a tremendous opportunity for us. And as I mentioned in my opening remarks, that's where the stickiest of the customers are. So when you look at lifetime value of a customer and the investment you're making, this commercial service will have a really long tail on the profitability side long term.

所以它發展勢頭強勁，我們將繼續致力於此。這對我們來說是一個巨大的機會。正如我在開場白中提到的，那裡擁有最忠實的客戶。所以，當你考慮到客戶的終身價值和你所做的投資時，這項商業服務在長期獲利方面將產生非常顯著的長遠影響。

Yes, it's a great business, a great long-term customer, great lifetime value, probably slightly higher margin profile. The commercial is a great business. Moving into the tariffs, we really don't see any impact on tariffs, especially when it comes to materials and supply. As you saw in the quarter, we leveraged our materials and supply spend. You saw a little bit of deleveraging in the fleet cost.

是的，這是一項很棒的業務，擁有優秀的長期客戶，擁有很高的終身價值，利潤率可能略高一些。商用飛機業務也很棒。說到關稅，我們確實沒有看到任何影響，尤其是在材料和供應方面。正如您在本季度所看到的，我們充分利用了材料和供應支出。您看到機隊成本略有去槓桿。

That's primarily associated with some gains that we recognized last year when we were turning vehicles back in. We built a lot of vehicles up during the course of COVID and we turned a number of those vehicles back in, and we saw some gains on that.

這主要與我們去年交還車輛時認識到的一些收益有關。在 COVID 期間，我們生產了大量車輛，並將其中一些車輛交還給我們，我們看到了一些收益。

It started really in the second quarter. Third quarter last year was probably the peak. The fourth quarter, we saw it slow down a little bit. So that's what we saw in the gross margin. But as far as the macro and the tariffs and the cross-border flow of goods, we really don't see a lot of that. And it's not a major concern for us when we think about our business.

它實際上是從第二季度開始的。去年第三季可能是峰值。第四季度，我們看到它略有放緩。這就是我們在毛利率方面看到的。但就宏觀經濟、關稅和跨境貨物流動而言，我們確實沒有看到太多這樣的情況。考慮到我們的業務，這對我們來說不是一個主要問題。

That's helpful. Just one quick follow-up. So that could go up for Saela. I was curious to think how you're balancing paying down debt, putting money towards M&A, either bolt-on or larger deals and just capital return in general.

這很有幫助。我只想快速跟進一下。所以Saela的業績可能會上升。我很好奇，您是如何平衡償還債務、投資併購（無論是附加交易還是更大的交易）以及整體資本回報的？

Certainly. We feel like we're positioned extremely well. Our financial policies provide flexibility up 2 times on a lease adjusted leverage basis. We're currently at 0.9 times. If you set aside the lease obligations, we're probably 0.6 to 0.7 times. So we're positioned extremely well.

當然。我們覺得自己的定位非常好。我們的財務政策提供了高達2倍的靈活性，以租賃調整後的槓桿率為基礎。目前我們的槓桿率是0.9倍。如果不考慮租賃義務，我們的槓桿率大概是0.6到0.7倍。所以，我們的定位非常好。

But what I would say is we're going to maintain a lot of discipline. We've added some debt in the last two or three years. But we're going to remain very disciplined, very balanced and continue to execute the strategy that we've executed for some time now. We do have the opportunity to enter the investment-grade bond market. We are investment grade, as you might recall from September.

但我想說的是，我們將保持高度自律。過去兩三年我們增加了一些債務。但我們將繼續保持高度自律、非常平衡的策略，並繼續執行我們已經實施了一段時間的策略。我們確實有機會進入投資等級債券市場。正如你們九月所記得的那樣，我們是投資等級債券。

Our new Treasurer led us through that process. And really, it was a phenomenal process. But again, I would go back and say we're going to remain very disciplined, we're going to remain very balanced. We're investing in growth, but we also will continue to provide the right return to our shareholders.

我們的新任財務主管帶領我們完成了這個過程。這真的是一個非常了不起的過程。但我還是要說，我們將保持高度自律，保持高度平衡。我們投資於成長，但我們也將繼續為股東提供合理的回報。

Peter Keith, Piper Sandler.

彼得·基思、派珀·桑德勒。

I wanted to ask about the growth investments. So I think you started this about four quarters ago. Are you now lapping growth investments so that that pace of spend comes down? And then now that you're sort of a year to this, how do you feel about those investments driving some returns and perhaps some increased sales?

我想問一下成長投資。我記得您大約在四個季度前就開始了。現在您是否正在逐步增加成長投資，以便支出速度有所下降？現在距離成長投資已經過去一年了，您覺得這些投資如何帶來回報，甚至可能帶來銷售額的成長？

Yes. We feel good about the investments we're making and the returns we're seeing. And Jerry alluded to the commercial investments, but I'd also allude to some of the things we're doing on the residential side and the termite and ancillary side. We continue to see robust levels of growth coming through the termite and ancillary area. We are lapping that here as we go into the third quarter. So we would expect probably an improving margin profile as we go into the second half as we lap those.

是的。我們對正在進行的投資和看到的回報感到滿意。傑瑞提到了商業投資，但我也想提一下我們在住宅、白蟻及輔助服務上的一些投資。我們持續看到白蟻及輔助服務領域保持強勁成長。進入第三季度，我們正在延續這一勢頭。因此，我們預計，隨著這些業務的推進，下半年的利潤率可能會有所改善。

But what I would also say is we're going to continue to invest. We see opportunities to grow the business. We're going to continue to invest. If we can continue to show double-digit earnings growth and 15% to 20% sort of cash flow compounding, that's the right algorithm for us. And so we're going to continue to do that and continue to pursue growth in this really resilient, attractive market.

但我想說的是，我們將繼續投資。我們看到了業務成長的機會。我們將繼續投資。如果我們能夠持續維持兩位數的獲利成長和15%到20%的現金流複合成長率，那對我們來說就是正確的策略。因此，我們將繼續這樣做，並繼續在這個極具韌性、極具吸引力的市場中追求成長。

Okay. And the SG&A leverage -- or I guess the deleverage was not as significant as the last couple of quarters, so it seems like you're picking up on some areas of the business that are seeing leverage despite the growth investments. Could you unpack that a little bit? And is there anything evolving in the model where you're seeing more, I guess, improved expense control?

好的。銷售、一般及行政費用（SG&A）的槓桿率——或者說，我猜去槓桿率不像前幾個季度那麼顯著，所以看起來，儘管進行了增長投資，但您似乎注意到一些業務領域仍然出現了槓桿率。能稍微解釋一下嗎？模型中是否有任何改進，讓您看到了更多費用控制的改善？

Yes. I would say that the administrative cost area, we certainly continue to see improvements there. It was neutral this quarter, but we certainly are ramping up the focus there. It was good to see selling and marketing leverage a little bit in the quarter. That shows that we're seeing productivity on that side of the house and the investments we're making.

是的。我想說的是，在行政管理成本方面，我們確實持續看到了改善。本季的管理成本表現平平，但我們肯定會加大這方面的投入。很高興看到本季銷售和行銷槓桿略有提升。這表明我們在這方面的生產力以及我們正在進行的投資正在提升。

And so it's certainly good to see. What I'd also say is, just stepping back, as I alluded to earlier, the executive leadership team here at Rollins is certainly very aligned around attacking our cost structure and taking us through a spirit of continuous improvement.

所以看到這些當然是好事。我還想說的是，退一步來說，正如我之前提到的，羅林斯的執行領導團隊在攻克成本結構和帶領我們持續改進方面非常一致。

We're meeting regularly, identifying opportunities. We're seeing good results, clear down to the lowest level in the organization. We're looking at a lot of things. We're looking at what we spend on events. We're looking at what we spend on meetings. We're looking at how we staff our back office and the processes we're following. We're looking at how we manage our cash and the costs associated with that.

我們定期開會，尋找機會。我們看到了良好的成果，甚至體現在組織內最低層。我們正在關注很多方面。我們正在審視活動支出。我們正在審視會議支出。我們正在審視後台人員的配備以及我們遵循的流程。我們正在審視如何管理現金以及相關的成本。

And in addition, we're looking at how we can continue to enable growth. And so there's a whole host of things we're looking at as part of the value creation sort of program. And we feel like that will continue to provide some wind in our sails as we think about the future.

此外，我們正在研究如何繼續促進成長。因此，我們正在研究一系列作為價值創造計劃的一部分的方案。我們相信，這將在未來繼續為我們帶來動力。

Jason Haas, Wells Fargo.

富國銀行的傑森·哈斯。

If I look at the incremental margins, it looks like you're guiding to 25% to 30% for the full year. And based on our math at least, that would imply incremental margins in the mid-30% range in the second half of this year. I know you're sort of lapping over the investments, but I just want to make sure that that's the right way to think about it because it does imply quite a big step up from where you were in Q2 even after backing out the legacy order claims.

如果我看一下增量利潤率，看起來您預計全年利潤率將在25%到30%之間。至少根據我們的計算，這意味著今年下半年的增量利潤率將在30%左右。我知道您有點重複投資，但我只是想確保這是正確的思考方式，因為即使剔除遺留訂單數據，這確實意味著與第二季度相比有相當大的增長。

So what we're looking at there, Jason -- thank you for the question. When you look at the incremental margin profile and you look at the profile last year, we actually saw very healthy incrementals in the first half. And we saw, I want to say, a 17-or-so percent in the second half, but we were able to deliver a mid-20% sort of range profile in terms of the incremental margins.

所以，傑森，謝謝你的提問。如果你看一下增量利潤率的概況，以及去年的概況，你會發現上半年的增量利潤率確實非常健康。我想說，下半年的增量利潤率大概在17%左右，但我們能夠達到20%左右的增量利潤率。

We're focused on that, and we're focused on delivering that. But as I alluded to earlier, when we think about the business, double-digit earnings growth is really important for us. And that will enable us to continue to compound cash at a very healthy clip that's north of the growth in the earnings profile.

我們專注於此，並致力於實現這一目標。但正如我之前提到的，當我們考慮業務時，兩位數的獲利成長對我們來說非常重要。這將使我們能夠繼續以非常健康的速度實現現金複合成長，遠超獲利成長。

And so we continue to look at that, especially in light of the growth cycle we're in. And so we're going to continue to look at that. We're going to continue to evaluate that. But we feel really good about our ability to drive some margin improvement here in the second half.

因此，我們會繼續關注這一點，尤其是考慮到我們目前所處的成長週期。我們會繼續關注這一點，並持續評估。但我們對下半年利潤率的提升能力感到非常有信心。

Okay. That's helpful. And then maybe as a follow-up, curious if you could comment on how ancillary performed in particular? I know it's good bellwether for the health of your consumers. So just curious how that performed through the quarter.

好的。這很有幫助。接下來，作為後續問題，您能否評論一下輔助產品的具體表現？我知道它是衡量消費者健康狀況的良好風向標。所以，我很好奇它在本季的表現如何。

Yes, ancillary business has done great. We continue to add staff, productivity improvements amongst our sales teams. That piece of the business remains strong. We continue to leverage for our customers. We give them the options to finance some of the larger ticket items.

是的，輔助業務表現優異。我們持續增加員工，提高銷售團隊的生產力。這部分業務依然強勁。我們繼續為客戶提供槓桿。我們為他們提供一些高價商品的融資選擇。

That certainly helps us get deals closed, get customer service quickly, take that objection away about affordability. But in our side of it, we have not seen customers having struggles making decisions about our ancillary service offerings.

這無疑有助於我們達成交易，快速獲得客戶服務，並消除客戶對價格承受能力的異議。但就我們而言，我們並沒有看到客戶在選擇我們的輔助服務時遇到困難。

Yes, the 10.3% organic growth in the quarter is healthy. And in fact, June was several hundred basis points higher than that. So we keep an eye on that because we're paying attention to help the consumer. We feel like that might be an area where you would see the slowdown. We're really not seeing that slowdown.

是的，本季10.3%的有機成長率是健康的。事實上，6月份的成長率比這個數字高出幾百個基點。所以我們密切關注這一點，因為我們正致力於幫助消費者。我們覺得這可能是個可能會出現放緩的領域。但我們確實沒有看到這種放緩。

Josh Chan, UBS.

瑞銀的 Josh Chan。

I guess Jerry mentioned that there were some weather impacts in the quarter. I was just wondering geographies you saw those in? And would you consider as we kind of roll into July here, given the strength that you're seeing in the backlog, that the weather has kind of pretty much normalized at this point? Thank you.

傑瑞提到了本季受到了一些天氣因素的影響。我想知道您在哪些地區看到了這些影響？考慮到您看到的積壓訂單量強勁，您是否認為隨著我們進入7月份，天氣因素基本上已經恢復正常？謝謝。

I would call May spotty in lots of areas. I just think of -- I'll use my own place here in Atlanta. You can usually jump in the swimming pool by the second week of May. It wasn't until June that we got in the swimming pool of my house because it was too cold, it was raining all the time. The weekends were rainy.

我覺得五月在很多地方都不太穩定。我只是想到——我會用我在亞特蘭大的家為例。通常五月的第二週就能跳進泳池了。直到六月，我們才有機會去我家的游泳池，因為天氣太冷，而且一直在下雨。週末也總是下雨。

What was your experience here, Ken?

肯，你在這裡的經歷怎麼樣？

Well, Jerry, I'm from the north. So I can jump in the swimming pool a little bit earlier than that. It was a cold start, and it definitely is delayed. I know I have folks back in the Northeast, and around Memorial Day, they were talking about 50 and 60-degree days and incredibly cold for that time of the year.

嗯，傑瑞，我來自北方。所以我可以早一點跳進游泳池。一開始很冷，而且肯定是延後了。我知道我東北部的朋友，在陣亡將士紀念日前後，他們說氣溫會達到50到60華氏度（約10到15攝氏度），對於一年中的那個時候來說，這真是太冷了。

I remember even, yes -- so when I think about it, especially in the Southeast, where a lot of it -- in the Southeast United States where a lot of our business is derived from, that was certainly an impact in the month of May. Everything just kind of started out slower from the Carolinas down to, say, call it, North Florida and across South Central. It was just a little different across all the way to Texas.

是的，我記得——所以當我回想起來，尤其是在美國東南部，也就是我們業務的很大一部分來自那裡的時候，這無疑對五月產生了影響。從卡羅來納州到佛羅裡達州北部，再到中南部，一切都開始放緩。一路到德克薩斯州，情況略有不同。

So I would say that's where we had the biggest impact. But like I said, we've come out of it by the end of the first week of June. It was shot out of a cannon, and we were right back at it really hard.

所以我想說，那是我們影響最大的時期。但就像我說的，我們在六月第一週結束前就走出了困境。它就像砲彈一樣，我們馬上就狠狠地反擊了它。

Sure. Okay. That makes a lot of sense. I guess you mentioned that also despite the choppy organic revenue, that the sales records that you guys were achieving in June, so does that reinforce your confidence for the rest of the year in terms (technical difficulty) -- how you're thinking about sort of the sales records that you've been achieving?

當然。好的。這很有道理。我想您也提到了，儘管有機收入波動較大，但你們6月份的銷售記錄仍然很高，這是否會在技術難度方面增強你們對今年剩餘時間的信心？您如何看待你們已經取得的銷售記錄？

Yes, look, one month doesn't make a trend. But what we're seeing right now is strong and who knows what could happen. But we're certainly encouraged. We feel like adjustments we've made during the latter part of the first quarter, beginning of the second quarter, and how we are going to market, and when our June results were so good, and there's nothing that gives me pause to make me think that we can't continue to perform certainly going through Q3.

是的，你看，一個月的業績並不能形成趨勢。但我們現在看到的情況很強勁，誰知道接下來會發生什麼事？但我們確實感到鼓舞。我們覺得，在第一季末和第二季初，我們做出了一些調整，調整了我們的行銷方式，而且我們6月份的業績也很好，沒有什麼能讓我停下來思考，我們能否繼續保持這樣的表現，尤其是在第三季。

What do you think, Ken?

肯，您覺得怎麼樣？

No, I would agree. I mean, we're positioned well. I agree with you one month is not a trend. But the June period was strong. Every one of our service offerings growth in June was accretive to our quarterly growth. That gives us a sense of confidence heading into July. But we'll keep an eye on it. We'll continue to communicate, be as transparent as we can, but we feel good about where we sit today.

不，我同意。我的意思是，我們的定位很好。我同意你的觀點，單月成長並不能代表趨勢。但6月份表現強勁。 6月份我們每項服務的成長都促進了我們的季度成長。這讓我們對7月充滿信心。但我們會持續關注。我們會繼續溝通，盡可能保持透明，但我們對目前的狀況感到滿意。

Harold Antor, Jefferies.

哈羅德·安托（Harold Antor），傑富瑞集團（Jefferies）。

This is Harold Antor on for Stephanie Moore. So I think on Investor Day, you guys discussed moving SG&A as a percent of sales from 30% to below and you highlighted several buckets and where you could see the improvement there. I know barcode automation was one of them.

我是 Harold Antor，Stephanie Moore 的報道嘉賓。我記得在投資者日，你們討論了將銷售、行政及管理費用 (SG&A) 佔銷售額的比例從 30% 降至更低，並且強調了幾個方面以及哪些方面可以看到改進。我知道條碼自動化就是其中之一。

So just wanted to get an understanding of where you are in that journey. Seems as though there's a lot under the hood there that could be some puts and takes for. Wondering along the journey where some things have gone better, some things are kind of still where they are, and if that opportunity is more significant today than you originally thought. Just any comments there?

所以我想了解你目前在這段旅程中處於什麼階段。似乎有很多事情需要你付出和接受。想知道在這過程中，哪些事情進展得更好了，哪些事情仍然保持原樣，以及這個機會在今天是否比你最初想像的更重要。有什麼評論嗎？

Well, thanks for the question, Harold. And it's Ken. What I would step back and look at is our SG&A is roughly 30% of sales. 14% of that or -- just under 50% of that cost structure is selling and marketing. We're going to continue to invest. We're going to continue to pursue. We're going to continue to grow the business.

好的，謝謝你的提問，Harold。我是Ken。我想回顧一下，我們的銷售、行政及行政管理費用（SG&A）大約佔銷售額的30%。其中14%，或接近50%的成本結構是銷售和行銷。我們將繼續投資。我們將繼續追求。我們將繼續發展業務。

But the other 16% is certainly an opportunity. If you benchmark that against others, there appears to be some opportunity there. And what I alluded to earlier with the value creation program is really aimed at getting after not only that, but all of our cost structure. And so we continue to look at how we can continue to improve the business and improve our margin profile.

但剩下的16%肯定是機會。如果你拿其他公司來衡量，你會發現那裡似乎有一些機會。我之前提到的價值創造計劃，實際上不僅是為了實現這一點，也是為了優化我們所有的成本結構。因此，我們將繼續研究如何繼續改善業務並提高利潤率。

Got you. And then I guess, on the regulatory front, anything that we should be keeping in the back of our mind? You spoke to experts, and some experts are saying that there can be some changes at the state level in terms of products that we use in pest control products. So I guess if you had any comments there, that would be great.

明白了。那麼，我想，在監管方面，我們該注意什麼？您採訪了專家，一些專家表示，在州一級，我們使用的害蟲防治產品可能會有一些變化。所以，如果您對此有什麼意見，那就太好了。

Yes. So I think we've dealt with state level regulatory for as long as I can remember. There's different states, in particular, more active states like California and New York, maybe Massachusetts that do have their own take on things and do some things. But we have a really strong technical team. Our team of entomologist, our team of people that are involved with government relations, industry relations are very up to speed on those things. We tackle those challenges for years, and we'll continue to do so.

是的。所以，我記得我們一直在處理州級的監管問題。不同的州，特別是像加州、紐約州，或許還有麻薩諸塞州這樣比較活躍的州，確實有自己的看法，也有一些做法。但我們擁有一支非常強大的技術團隊。我們的昆蟲學家團隊，以及與政府關係和產業關係相關的人員，都非常了解這些情況。多年來，我們一直在應對這些挑戰，並將繼續這樣做。

There's nothing that we can't just adjust to if needed or get -- oftentimes, we're already ahead of those changes before they even occur. This is regulated heavily and should be a regulated business. And so we have a lot of those skill sets and a lot of those muscles built into our business to help us make those adjustments.

沒有什麼是我們不能根據需要調整或獲得的——很多時候，我們甚至在這些變化發生之前就已經領先一步了。這個行業受到嚴格監管，也應該是受監管的行業。因此，我們擁有許多這樣的技能和實力，可以幫助我們做出這些調整。

Brian McNamara, Canaccord Genuity.

Canaccord Genuity 的 Brian McNamara。

Just one for me as many have already been answered. So I was wondering if you could give a brief update on your retention efforts with first year tax. Jerry, I think you said you saw a double-digit improvement in short-term retention in Q1. And as a result, made far fewer new hires than the prior year. I'm curious how Q2 looked in this regard? And anything else to call out in terms of labor market dynamics?

我只提一個問題，因為很多問題已經有人回答了。所以，我想請您簡要介紹一下您在留任方面在第一年稅收方面的努力。 Jerry，我記得您說過，第一季短期留任率實現了兩位數的成長。因此，新進員工的招募數量遠低於去年。我很好奇第二季的情況如何？關於勞動市場動態，還有什麼需要補充的嗎？

Brian, thank you for asking that question because that's one of my proudest accomplishments of this year so far is in our -- is improvements that we've made, particularly in our short-term turnover that I have described as a challenge for us since COVID. We've made double-digit improvements in that.

布萊恩，謝謝你提出這個問題，因為這是我們今年迄今為止最值得驕傲的成就之一——我們取得了一些進步，尤其是在短期營業額方面，我曾將其描述為新冠疫情以來我們面臨的一個挑戰。我們在這方面取得了兩位數的進步。

And when we talked about some of the leverage that we got in service wages, that's a direct reflection of us being able to hire fewer people, keep -- and invest in training and onboarding for people that leave us after three weeks, six weeks, nine weeks, 60 days.

當我們談到我們在服務工資方面獲得的一些優勢時，這直接反映了我們能夠僱用更少的員工，留住員工，並投資於培訓和入職培訓，幫助那些在三週、六週、九週或六十天后離開我們的人。

Our teams have made tremendous -- across our business have made tremendous improvement in that. I'm really proud of what they've done there. We still have work to do. They're all learning and sharing best practices from one another. Next week, we have our operators in and we'll be talking about best practices in this area.

我們的團隊在這方面取得了巨大的進步——我們整個業務都取得了巨大的進步。我為他們在這方面所做的工作感到非常自豪。我們還有很多工作要做。他們都在相互學習和分享最佳實踐。下週，我們的操作員將來討論這方面的最佳實踐。

We're seeing some really positive things that I'm really proud of the team for the accomplishments that they've had there. And there certainly is a financial impact to that moving that number. More importantly, there's an impact that our customers see and consistency. And long term, we know the more we keep our people, the better customer retention will be and it's just the right thing to do. So really proud of my team, and thank you, Brian, for asking that question.

我們看到了一些非常積極的進展，我為團隊的成就感到無比自豪。這無疑會對財務產生影響。更重要的是，我們的客戶也看到了這種影響，並保持了一致性。長遠來看，我們知道留住員工越多，顧客留存率就越高，這是正確的做法。我為我的團隊感到驕傲，感謝布萊恩提出這個問題。

We reached end of our question-and-answer session. I'd like to turn the call back over for any further or closing comments.

我們的問答環節結束了。我想把電話轉回去，以便大家進一步或發表結束語。

Thank you, everyone, for joining us today. We appreciate your interest in our company and look forward to speaking with you on our Q3 earnings call.

感謝各位今天的參與。感謝您對我們公司的關注，期待在第三季財報電話會議上與您交流。

Thank you. That does conclude today's teleconference. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議到此結束。現在您可以掛斷電話了，祝您擁有美好的一天。感謝您今天的參與。