Rollins, Inc. (NYSE:ROL) Q4 2022 Earnings Call Transcript

Ashish Sabadra: Thanks for taking my question. So my first question is on the residential side. You talked about some pretty good improvement in January. I was just wondering if you can talk about what’s really driving it. Is it driven by better execution? Can you talk about how you’re better using technology and other tools to improve the residential growth in 2023? Thanks.

Jerry Gahlhoff : We — you got to keep in mind that as we wound down 2022 November, December, we reduced marketing — some of our marketing spend or advertising spend in the back half of the year and so that softened the end of the fourth quarter of last year. And we began turning our advertising and marketing efforts back on in January. Across the board, I think, we had pretty good weather. We had a pretty good business environment. We had a lot less of the impact of COVID than we did the prior year in January. It was just an overall better environment not necessarily something about technology or anything along those lines. It was just an overall better environment that helped with demand. I don’t know John you have anything to add to that?

John Wilson: Only maybe staffing. We were better staffed and a better staff position. Part of that’s related to COVID.

Jerry Gahlhoff : Post-COVID, yes.

John Wilson: We were really racked with people out sick with COVID in January a year ago. And so this year we were better positioned to handle the opportunity that we had.

Ashish Sabadra: That’s great. And then maybe just a broader question on organic growth. If we look at over the last three years organic growth has improved materially compared to the pre-pandemic level. And so as we look into 2023, but also with the mid-term not looking from a guidance perspective but just as we think about the organic growth trajectory, should we think about it more being in line with the recent history particularly the organic growth being more in line with the recent history? Thanks.

Jerry Gahlhoff : As you know, Ashish, we don’t provide guidance. However, we do — when we do look at our business I think we all know that this is a very attractive market with attractive growth opportunities. And if you look at the business over the long-term and eliminating some of the fluctuations and volatility that you saw during COVID and recovery from COVID, this market has the opportunity to continue to grow at that mid to high single digits. So we feel confident in our ability to continue to grow our business over the long term at that mid to high single-digit sort of growth rate all the while continuing to be very active on the acquisition front.

Kenneth Krause: We have no intention to take the foot off the gas and slow it down. So our goal is always to try to get better and maintain or beat those rates year-over-year. So that’s our aim. We’re going to keep going.

Ashish Sabadra: That’s great. And congrats on a solid quarter. Thank you.

Jerry Gahlhoff: Thank you.

Operator: Our next question comes from the line of Stephanie Moore with Jefferies. Please proceed with your question.

Hans Hoffman: Hi. This is Hans on for Stephanie. Congrats on the strong quarter. Just wanted to dig in a bit more on the resi business in Q4. Obviously, realize a bit slower growth there and in your prepared remarks you kind of referenced it’s kind of been consistent across the industry. I just wondered if you could talk about some of those trends in the industry more broadly? Thanks.