Question-and-Answer Session
Operator
Thank you, ladies and gentlemen. (Operator Instructions) Our first question comes from Michel Morin with Merrill Lynch.
Michel Morin - Merrill Lynch
Good morning.
Jeff Wright
Good morning.
Michel Morin - Merrill Lynch
I was just looking at your guidance, it seems like the revenue guidance looks a bit conservative, and we're trying to square that with the expectation that organic growth should tick up sequentially. And if I'm correct, the Leef acquisition was not a full contributor this quarter. So, is there something in particular that would be holding you back a little bit here or you're just being cautious because of the employment outlook?
Jeff Wright
Michel, this is Jeff, I will answer the question and Rick can add to it. I don’t think the guidance is cautious. I think it’s our estimate of where we think things will be. It does reflect our sequential improvement in our rental organic growth rate. Actually, as soon as it is moving up to 4%, and it includes the impact of all of our acquisitions, including Leef. Leef had, while it wasn’t a full quarter in Q1, it was almost a full quarter. And it obviously includes continued drug sales growth as well, but I think our guidance is realistic and not overly conservative.
Michel Morin - Merrill Lynch
Okay. That’s very helpful. And then, I may have missed this because I jumped on a bit late but, on in terms of pricing, how has that been trending, both for the industry and yourself?
Rick Marcantonio
Well, we don’t report specific results on pricing. I would tell you that the pricing environment feels fairly normal above consistent over the last year or so. Those are big words that I think I feel comfortable communicating about the pricing environment right now.
Michel Morin - Merrill Lynch
Okay. That’s very helpful. And then just finally, I think in the press release or in the prepared remarks rather, you talked about the written sales, weekly sales, growing about 20%, can you remind us how the math works on that, if you were to sustain that over the next twelve months, where that might take your organic growth rate to, if everything else were to stay equal?
Jeff Wright
Sure. Again, we mentioned our new account sales were at record levels, up about 20% over the prior year. And, of course, if we are to sustain that, which I think is, that’s a -- that’s an assumption because this is an all-time record for G&K for a quarter, but if were to sustain that, it would be, that component of your organic growth would drive up 20%. Now again, that’s just one component of overall organic growth. But, I think if you work through the math that would probably represent a 2 to 3 point increase in your organic growth rate, again, if you flex through all those assumptions.
- To read the full transcript on Seeking Alpha, click here »
