Q2 2024 Rollins Inc Earnings Call Transcript
Key Points
- Rollins Inc (ROL) reported an 8.7% increase in revenue to $892 million for Q2 2024.
- The company achieved healthy organic growth of 7.7% in the quarter.
- Total residential revenue increased by 6.3%, commercial revenue rose by 9.9%, and termite and ancillary services were up by 11.8%.
- Rollins Inc (ROL) closed 26 tuck-in deals in the first six months of the year, with a healthy M&A pipeline.
- The company delivered strong operating cash flow of $145 million and free cash flow of $136 million for the quarter.
- The company faced a significant impact from having two fewer business days in June, affecting productivity and revenue.
- Residential organic growth, while improved, was slightly below historical trends.
- There was a noted softness in one-time residential pest control services.
- Despite strong profitability, the company had to account for $4 million in pretax expenses related to the Fox acquisition.
- The effective tax rate increased to approximately 26.1% for the quarter.
Greetings and welcome to Rollins, Inc. Second Quarter 2024 Earnings Conference Call. (Operator Instruction) As a reminder, this conference is being recorded.
And it is now my pleasure to introduce your host Lyndsey Burton, Vice President of Investor Relations. Thank you, Ms. Burton. You may begin.
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. The company's earnings release discusses the business outlook and contains certain forward-looking statements. These particular forward-looking statements and all
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