While organic growth is the primary driver, acquisitions added 2.1% to the revenue growth in Q3 2024. This indicates that Rollins continues to pursue strategic acquisitions to expand its market presence.

Management stated that they remain focused on driving 7% to 8% organic revenue growth while adding 2% to 3% of inorganic revenue growth for 2024. This shows that the company is focusing on strengthening its core business.

The company continues to invest in growth initiatives, including advertising. This is evidenced by the increase in selling and marketing costs, which led to an increase in SG&A expenses.

The company is focused on improving the efficiency of its business model while investing in programs aimed at growing the business. However, operating margin declined due to investments in people, growth initiatives, and less favorable insurance and claims.

Restructuring costs decreased by $5.2 million in Q3 2024, as the company completed a restructuring program to modernize its workforce. The company executed a restructuring program to modernize its workforce during the quarter ended September 30, 2023.

The company believes it is well positioned to continue to deliver strong results despite navigating a highly uncertain macro-environment. The company continues to execute various strategies previously implemented to help mitigate the impact of these economic disruptors.

The company acknowledges that continued disruption in economic markets due to inflation, changing interest rates, employee shortages, and supply chain issues may adversely affect future performance. The company cannot reasonably estimate whether these strategies will help mitigate the impact of these economic disruptors in the future.

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.

The company and its subsidiaries are involved in various claims, arbitrations, contractual disputes, investigations, litigation, and tax and other regulatory matters. Management does not believe that any pending claim, proceeding or litigation, regulatory action or investigation, either alone or in the aggregate, will have a material adverse effect on the Company's financial position, results of operations or liquidity.

Residential pest control revenue increased 6.4%, indicating a strong position in the residential market. Organic revenue growth was strong across our service offerings, growing 4.9% in residential.

Commercial pest control revenue increased 9.4%, indicating a strong position in the commercial market. Organic revenue growth was strong across our service offerings, growing 8.1% in commercial.

Termite and ancillary services grew 14.5% including both organic and acquisition-related growth in each area. Organic revenue growth was strong across our service offerings, growing 13.7% in termite and ancillary activity.

Gross margin improved 20 basis points to 54.0% in 2024 compared to 53.8% in 2023, as pricing more than offset inflationary pressures. We saw good leverage across a number of cost categories with the most significant leverage in fleet costs and materials and supplies.

As a percentage of revenue, SG&A increased to 30.0% from 29.1% in the prior year. Selling and marketing costs have increased as we continue to invest in growth initiatives, including advertising.

The company is focused on improving the efficiency of its business model while investing in programs aimed at growing the business. However, operating margin declined due to investments in people, growth initiatives, and less favorable insurance and claims.

The 10-Q does not provide specific details on R&D investments or technological capabilities. The company is focused on improving the efficiency of its business model while investing in programs aimed at growing the business.

During the third quarter of 2023, the Company executed a restructuring program to modernize its workforce. These changes were primarily across corporate-related functions and enabled us to make more strategic improvements in our support functions.

The company continues to invest in programs aimed at growing the business across our service offerings. This is evidenced by the increase in selling and marketing costs, which led to an increase in SG&A expenses.

The company paid $72.8 million in cash dividends compared to $63.8 million during the same period in 2023. The company paid $218.0 million in cash dividends compared to $191.8 million during the same period in 2023.

The Company has a share repurchase plan, adopted in 2012, to repurchase up to 16.9 million shares of the Company's common stock. The plan has no expiration date. As of September 30, 2024, the Company had a remaining authorization to repurchase 11.4 million shares of the Company's common stock under this program.

Cash paid for acquisitions totaled $105.5 million for the nine months ended September 30, 2024, as compared to $349.3 million for the nine months ended September 30, 2023, primarily related to the Fox acquisition.

The 10-Q does not provide specific details on environmental, social, or governance initiatives. The company is working with several local governments regarding compliance with environmental regulations governing the management of hazardous waste and pesticide disposal.

The Company is in compliance with applicable debt covenants as of September 30, 2024. The Credit Agreement contains customary terms and conditions, including, without limitation, certain financial covenants including covenants restricting Rollins' ability to incur certain indebtedness or liens, or to merge or consolidate with or sell substantially all of its assets to another entity.

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.

The company acknowledges that continued disruption in economic markets due to inflation, changing interest rates, employee shortages, and supply chain issues may adversely affect future performance. The company cannot reasonably estimate whether these strategies will help mitigate the impact of these economic disruptors in the future.

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.

Demand remains favorable to start the fourth quarter and the pipeline of acquisition activity remains healthy. Although we continue to navigate a highly uncertain macro-environment, we believe we are well positioned to continue to deliver strong results in the last quarter of 2024.