MEMPHIS, Tenn. — ServiceMaster Global Holdings announced preliminary unaudited second-quarter 2014 results. The company reported second-quarter 2014 revenue of $683 million, an increase of 8 percent compared to the same period in 2013.
The company reported second-quarter 2014 income from continuing operations of $42 million, versus income from continuing operations of $15 million in the same period in 2013.
The company reported second-quarter 2014 net income of $40 million, or $0.44 per diluted share, versus a loss of $510 million for the second quarter of 2013, which included pre-tax non-cash impairment charges of $673 million to reduce the carrying value of TruGreen’s goodwill and trade name. The company reported second-quarter 2014 adjusted net income1 of $52 million, or $0.56 per diluted share, versus $24 million, or $0.26 per share, in the same period in 2013. Earnings per share and other share data contained in this release do not reflect the 41.3 million shares issued by the company on July 1, 2014, in conjunction with its initial public offering.
The company reported second-quarter 2014 Adjusted EBITDA2 of $171 million, an increase of 32 percent or $41 million compared to the same period in 2013. The increase was primarily driven by the impact of higher revenue, operating cost savings and the transition of certain costs in the second quarter of 2014 to TruGreen Holding Corporation, which the company spun-off on January 14, 2014. A reconciliation of income from continuing operations to both adjusted net income and Adjusted EBITDA are set forth below in this press release.
“Terminix, American Home Shield and the Franchise Services Group all reported revenue and Adjusted EBITDA growth in the second quarter of 2014 versus prior year,” said Rob Gillette, ServiceMaster’s chief executive officer. “We’re on the right path, with great businesses, strong brands and passionate associates who provide essential services to our valued customers.”
Gillette added, “Based on our strong year-to-date performance, we plan to increase our business reinvestment
in the second half of the year to drive future growth,” said Gillette. “Our current projection range
for full-year 2014 performance is $2,446 million to $2,466 million for revenue and $535 million to
$540 million for Adjusted EBITDA."
TERMINIX. Terminix reported a 3 percent revenue increase in the second quarter of 2014 compared to the second quarter of 2013. The revenue increase was primarily driven by improved price realization in both termite and pest control and new product introductions. Adjusted EBITDA increased 12 percent or $10 million versus the second quarter of 2013 driven primarily by higher revenue conversion and overhead cost reductions.