Jerry Gahlhoff Jr.
President, Chief Operating Officer And Director at Rollins
Thank you, John. Hello, everyone. Before I get into our second quarter operating review, I would like to say a few words about Gary. As Gary mentioned, I came to Rollins through the HomeTeam acquisition in 2008. As many of you know, those can be tensed in uncertain times for those being acquired. Gary talked with me personally. His words and subsequent actions reassured me that I had found a home at Rollins and my experience here has been meaningful and worthwhile. Over the past 14 years, Ive learned so much from Gary, and theres one thing Im sure of, he has an unwavering commitment to our company, our customers and our employees. The proof of this is in his actions and results. Its truly an honor to succeed Gary as CEO and lead this incredible company of more than 17,000 exceptional employees, each of whom brings a commitment to deliver the best for our customers every day. With Gary and Johns continued guidance, I look forward to continuing to build on our great success as we begin this new chapter of the companys future. Id now like to walk through our 2022 second quarter performance, focusing on items that directly impacted our operations during the period.
Julie will address the non-GAAP adjustments a little later. Looking at our financial results. Rollins second quarter 2022 was highlighted by revenue growth of 11.9% to $714 million compared to $638 million in last years second quarter. Net income was $100.3 million or $0.20 per diluted share. This is compared to $98.9 million or $0.20 per diluted share for the same period in 2021. As mentioned, Julie will review GAAP and non-GAAP results as well as organic revenue growth numbers shortly. Operationally, during the quarter, all our business lines continued to experience solid growth. In fact, we grew double digits in all service lines. Residential pest control increased 11%, commercial pest control was up 11.2% and termite increased 15%. Keep in mind that this level of growth came on top of our companys highest historical recorded growth in Q2 last year of 15.3%. On the expense side, we continue to feel inflationary pressures during the second quarter from fleet-related costs like fuel and vehicle repairs and materials and supplies. Ill give insight on these as well as provide an update on the actions weve been implementing to mitigate these pressures.
While were efficiently navigating through this period and believe that our proactive initiatives have helped, were keeping a watchful eye on inflationary pressures, fuel costs and supply chain costs and how they may affect Rollins. Management of fuel expense is a notable example. As we grow, we improved customer density And when coupled with our routing and scheduling technology initiatives, we continue to reduce our overall mileage between service visits, which lowers our fuel requirements. We saved over 5.8 million miles driven in the quarter or $1.3 million. This savings was slightly offset by increased average price per gallon over Q2 2021 of over $400,000, equating to net fuel savings of $875,000. This has also helped manage labor costs as our technicians have less unproductive windshield time, plus weve created a better job for them along the way. As we move through the second half of 2022, we expect well see the ongoing benefits of these improvements. Furthermore, looking ahead, were committed to enhancing the overall efficiency of our fleet while also reducing carbon emissions. In June, we announced that BMW Group ranked Rollins 15th out of the top 50 green fleets in the United States.
This primarily reflects Rollins use of hybrid sedans that are being driven by our sales and management personnel. However, we recently began testing the use of light-duty hybrid trucks. Given their excellent fuel economy, we are focused on having a sizable uptick in our hybrid truck fleet by 2024. Additionally, given recent technology advancements, weve been testing the use of battery-powered application equipment going from gas power to battery provides us with a compelling opportunity to reduce emissions without sacrificing the effectiveness of our service. We look forward to updating you on these initiatives in the quarters ahead. As you may recall from prior conference calls, weve been proactively addressing increased supply chain costs in our residential and commercial pest control materials and supplies. This includes termite and ancillary service offerings as well. We have solid long-term working relationships with our manufacturers and have deep visibility into the supply process, often a few levels up in the supply chain. In doing so, were often able to achieve greater operational efficiencies and overall flexibility by not only having materials shipped quickly but also having real-time insights advising us when we need to order materials.
We continue to seek opportunities to diversify through alternative suppliers and actively seek shipping and freight efficiencies. On the subject of pricing, we successfully implemented our annual price increase programs earlier this year. As mentioned on our last conference call, aggressive service price increases were initiated within all our brands during April and May as compared to historical timing of the early summer months and prior years. We are already realizing a notable benefit from this initiative more than doubling our traditional 1% to 2% net growth levels from our past price increase programs. Overall, we saw little resistance from our customers on the higher price increases put into place, which is a confirmation of service satisfaction. Next, on our acquisition pipeline, it remains strong, and we have plenty of potential opportunities that we are actively pursuing. So far in 2022, we have completed 22 strategic acquisitions within the U.S., United Kingdom and Australia. In the U.K., we achieved an important milestone during the quarter with the acquisition of Europest.
In addition to expanding our geographic footprint within the U.K., it is also our first location in Wales. Strategically, we now have full coverage within the United Kingdom, as this tuck-in transaction comes on the heels of another recent U.K. acquisition, NBC Environment, which provided our first locations within Scotland. Moving forward, Strategic acquisitions will continue to be an important component in our initiatives to further grow and expand our business. Before I turn it over to Julie, I want to emphasize how pleased we are with Rollins second quarter results and that we remain well positioned for 2022.
Ill now turn the call over to Julie. Julie?
