Rollins remains focused on driving 7% to 8% organic growth while adding 2% to 3% of inorganic growth for 2024. The company made 26 acquisitions during the six months ended June 30, 2024.

Residential pest control revenue increased 6.3%, commercial pest control revenue increased 9.9%, and termite and ancillary services grew 11.8%. This indicates a balanced approach to different market segments.

The Company made 26 acquisitions during the six months ended June 30, 2024. The aggregate preliminary values of major classes of assets acquired and liabilities assumed recorded at the dates of acquisition are included in the reconciliation of the total preliminary consideration as follows (in thousands).

As a percentage of revenue, SG&A decreased to 30.4% from 31.1% in the prior year, as we continue to manage our cost structure while investing in growth initiatives. We saw leverage associated with lower insurance and claims costs, administrative personnel costs, and selling costs, partially offset by other administrative costs.

Although we continue to navigate a highly uncertain macro-environment, we believe we are well positioned to continue to deliver strong results in the second half of 2024.

The Company continues to execute various strategies previously implemented to help mitigate the impact of these economic disruptors. However, the Company cannot reasonably estimate whether these strategies will help mitigate the impact of these economic disruptors in the future.

The continued disruption in economic markets due to high inflation, increases in interest rates, business interruptions due to natural disasters and changes in weather patterns, employee shortages, and supply chain issues, all pose challenges which may adversely affect our future performance.

There have been no material changes from the risk factors previously disclosed in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2023.

In the normal course of business, the Company and its subsidiaries are involved in, and will continue to be involved in, various claims, arbitrations, contractual disputes, investigations, and regulatory and litigation matters relating to, and arising out of, our businesses and our operations.

Gross margin improved 80 basis points to 54.0% in 2024 compared to 53.2% in 2023, as pricing more than offset inflationary pressures. This suggests the company has some pricing power and is managing costs efficiently.

Rollins reports strong revenue growth with an 8.7% YoY increase, indicating a strong market position and ability to compete effectively despite economic challenges.

We continue to focus on improving the efficiency of our business model while investing in programs aimed at growing our business across our service offerings.

Gross profit for the quarter ended June 30, 2024 was $481.6 million, an increase of $45.1 million, or 10.3%, compared to $436.6 million for the quarter ended June 30, 2023. Gross margin improved 80 basis points to 54.0% in 2024 compared to 53.2% in 2023, as pricing more than offset inflationary pressures.

As a percentage of revenue, SG&A decreased to 30.4% from 31.1% in the prior year, as we continue to manage our cost structure while investing in growth initiatives.

We continue to focus on improving the efficiency of our business model while investing in programs aimed at growing our business across our service offerings.

The 10Q filing does not contain any specific information on innovation or technology initiatives. More information would be needed to assess innovation efforts.

We continue to focus on improving the efficiency of our business model while investing in programs aimed at growing our business across our service offerings.

The 10Q filing does not contain any specific information on R&D investments. More information would be needed to assess innovation efforts.

Operating cash flow was $145.1 million for the quarter. The Company invested $34.5 million in acquisitions, $8.7 million in capital expenditures, and paid dividends totaling $72.6 million.

As of June 30, 2024, 11.4 million additional shares may be purchased under the share repurchase program. This indicates ongoing capital return to shareholders.

Interest expense, net, increased by $3.0 million compared to the prior year, primarily due to a higher average debt balance and increased interest rates. This is related to debt associated with share repurchases and acquisition activity.

The Company has received a notice of alleged violations and information requests from local governmental authorities in California for our Orkin and Clark Pest Control operations and is currently working with several local governments regarding compliance with environmental regulations governing the management of hazardous waste and pesticide disposal.

On July 23, 2024, the Board of Directors approved the Amended and Restated By-Laws of Rollins, Inc. to declassify the Board and phase in one-year terms for all directors by 2027 and state that a director may be removed, with or without cause, by the holders of a majority of the shares.

The 10Q filing does not contain any specific information on social responsibility initiatives. More information would be needed to assess ESG efforts.

The continued disruption in economic markets due to high inflation, increases in interest rates, business interruptions due to natural disasters and changes in weather patterns, employee shortages, and supply chain issues, all pose challenges which may adversely affect our future performance.

Although we continue to navigate a highly uncertain macro-environment, we believe we are well positioned to continue to deliver strong results in the second half of 2024.

The Company will continue to monitor the potential impact of Pillar Two proposals and developments on our condensed consolidated financial statements and related disclosures as various tax jurisdictions begin enacting such legislation.