July 23 (Reuters) -

Rollins reported second-quarter revenue above

estimates on Wednesday, on steady demand for its pest control

services amid an unusually warm and dry weather in the United

States.

WHY IT'S IMPORTANT

A warmer-than-usual climate across much of the United

States, which has created ideal conditions for insect breeding,

has driven increased demand for pest control services at homes

and businesses, even as an uncertain macroeconomic environment

has constrained consumer spending.

The National Pest Management Association (NPMA), in a March

report, said that early warmth and dry spells have accelerated

pest activity, particularly in the South, Midwest and Northeast

regions of the country.

KEY QUOTE

"EBITDA margins were pressured from developments on legacy

auto claims by 70 basis points in the quarter," CFO Kenneth

Krause said.

BY THE NUMBERS

The company's revenue for the quarter ended June 30 rose

12.1% to $999.5 million, beating analysts' average estimate of

$989.1 million, according to data compiled by LSEG.

The Atlanta, Georgia-based company's adjusted profit per

share was at 30 cents, in line with analysts' estimates.

Adjusted operating margin was 20.6%, a decrease of 30 basis

points compared to the prior year.