Rollins Inc at UBS Global Industrials and Transportation Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Joshua K. Chan - UBS Investment Bank, Research Division - Analyst : Great. Yes. Thanks, Ken. And yes, if anybody has any questions, feel free send them to the iPad here. Maybe I'll ask you a couple of questions on management and kind of your perspective. So you've been CFO for 9 months or so now. And I guess relative to your initial expectations, any surprises one way or the other? And now that you've had time to sort of dig into the company, where -- how would you rank sort of your -- the opportunities that you see on the horizon?

Question: Joshua K. Chan - UBS Investment Bank, Research Division - Analyst : Great. And if we can zero in on your SG&A comment deal. So I guess 30%, where do you see that trending over time? And where can you see the earliest types of opportunities? What are you working?

Question: Joshua K. Chan - UBS Investment Bank, Research Division - Analyst : I've got a question here from the audience. Could you talk about kind of demand and any differences between residential and commercial that you see both in the shorter term and then over the longer-term runway?

Question: Joshua K. Chan - UBS Investment Bank, Research Division - Analyst : Kind of dovetailing on that question a little bit. Do you have a sense on what percentage of the residential, I guess, homes out there or commercial businesses out there use pest control? And is there an ability to kind of expand usage to drive growth over time? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 06, 2023 / 12:00PM, ROL.N - Rollins Inc at UBS Global Industrials and Transportation Conference

Question: Joshua K. Chan - UBS Investment Bank, Research Division - Analyst : And on the geographic cue, I guess, do you see that in your business? Are the warmer states growing faster, certainly more intense usage, I would think, but what do you see?

Question: Joshua K. Chan - UBS Investment Bank, Research Division - Analyst : Okay. All right. There is a question from the audience on M&A. It looks like. So how much runway is there to continue consolidating the pest control industry? And are there potentially larger deals on the horizon given the lower leverage profile that you have?

Question: Joshua K. Chan - UBS Investment Bank, Research Division - Analyst : Okay. And on M&A, how do you create value with the companies that you acquire, right? Like what makes that company more valuable in the Rollins portfolio than they were before?

Question: Joshua K. Chan - UBS Investment Bank, Research Division - Analyst : All right. Maybe I'll ask one more on acquisitions. How do you think about the strategic criteria for acquisitions? And then also with the CFO hat, what -- any financial metrics that you kind of focus on?

Question: Joshua K. Chan - UBS Investment Bank, Research Division - Analyst : Thanks for the color there. There is a question on competition. So what does your research tell you are the top 2 or 3 reasons why you might lose business when an existing customer kind of switches to another provider?

Question: Joshua K. Chan - UBS Investment Bank, Research Division - Analyst : Yes. Okay. Maybe I'll ask one more question on growth. So you mentioned sort of the resilience over recession. So if we were to enter a recession, how would you expect that to impact the company? Where would you see it? Where won't you see it? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 06, 2023 / 12:00PM, ROL.N - Rollins Inc at UBS Global Industrials and Transportation Conference

Question: Joshua K. Chan - UBS Investment Bank, Research Division - Analyst : Yes. And on that point, I think you made a few points about pricing earlier. Is there a bit of a shift in terms of your approach to pricing given the fact that it's a sense of service. You've had to raise price more aggressively in recent years just for inflation. So how do you think about pricing going forward?

Question: Joshua K. Chan - UBS Investment Bank, Research Division - Analyst : So I guess when you wrap up all the comments you have about margins, is there a certain incremental margin target that you're looking at over the next few years? How should we think about margin expansion as revenue?

Question: Joshua K. Chan - UBS Investment Bank, Research Division - Analyst : Good for you. One question from the audience. Your ability to find labor, I think you mentioned the importance of technicians. Is that getting any better compared to recent...

Question: Joshua K. Chan - UBS Investment Bank, Research Division - Analyst : Maybe I'll ask one more question then. Any thoughts about portfolio longer term? Any businesses that you're not in that you want to be in? I don't assume that you want to get out of anything that you're already in now. So...

Question: Joshua K. Chan - UBS Investment Bank, Research Division - Analyst : With that, I think we're out of time. Please join me in thanking Ken for being here at the conference. Thank you, and glad that you here.