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ServiceMaster Reports Q2 Revenues

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Terminix reported second-quarter operating revenue of $347 million, an increase of 3.9 percent over second-quarter 2011 results.

| August 10, 2012

MEMPHIS — The ServiceMaster Co posted operating revenue of $962 million for the quarter ended June 30, a half percent drop from Q2 2011’s $967.4 million. ServiceMaster’s operating income for Q2 dropped 40 percent to $97 million, including a $67.7 million trade name impairment charge, from Q2 2011’s $161.1 million. Terminix reported second-quarter operating revenue of $347 million, an increase of 3.9 percent over second-quarter 2011 results.

ServiceMaster’s overall operating revenue for the first six months of the year increased 2.2 percent, to $1.6 billion. The company’s operating performance for the first six months increased 8.8 percent, to $313 million.

“We're pleased with the company's overall performance through the first half of the year, even though we saw a slight decline in revenue and profitability in the second quarter. Excluding TruGreen, our operating revenue for the first six months of the year was up 6.7 percent." said Hank Mullany, ServiceMaster's chief executive officer. "Driven by our category-leading brands and continued improvements in overall customer satisfaction, and the ongoing transformation of our TruGreen business, we're making great strides in building a company that will be a rapidly growing, best-in-class service provider."

Terminix Results. Terminix reported second-quarter operating revenue of $347 million, an increase of 3.9 percent over second-quarter 2011 results. Pest control revenue increased 6.6 percent over second quarter 2011 results, reflecting a 4.7 percent increase in average customer counts and a $2.7 million increase in other revenue (primarily bed bug services) and improved price 3 realization. The increase in pest control customer counts was driven by new sales and acquisitions, offset in part by a 40 basis point decrease in the customer retention rate. Termite revenue decreased 1.0 percent over second-quarter 2011 results, reflecting a 5.5 percent decrease in new unit sales, the unfavorable timing of renewal revenue and a 1.1 percent decline in average renewal customer counts, partially offset by improved price realization. Product distribution revenue increased $4.1 million in the second-quarter of 2012 over second-quarter 2011 results.

The earnings results come just days after ServiceMaster announced its acquisition of Schendel Pest Services of Topeka, Kan., as part of its Terminix division. Schendel operates in the Midwest as well as Arkansas, Texas and Arizona. Schendel’s value to Terminix was its emphasis on commercial pest services and the Midwest region where Schendel, founded in 1947, will continue to operate under its brand name.

 

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