MEMPHIS, Tenn. — ServiceMaster Global Holdings, parent company of Terminix, this week announced preliminary unaudited first-quarter 2015 results. The company reported first-quarter 2015 revenue of $571 million, an increase of 7 percent compared to the same period in 2014. The increase in revenue was driven by an acceleration in organic growth at American Home Shield, an increase in sales of new services at Terminix, pricing increases and the acquisition of Home Security of America (“HSA”), which the company acquired on Feb. 28, 2014.
The company reported first-quarter 2015 net income of $28 million or $0.20 per share vs. a net loss of $113 million or $1.23 per share in the same period in 2014. First quarter 2015 net income includes a loss on extinguishment of debt of $13 million. The net loss in the first-quarter 2014 includes a $48 million non-cash charge for the impairment of software and a $95 million loss from discontinued operations associated with goodwill and trade name impairment charges at TruGreen, a subsidiary which the company spun-off on January 14, 2014.
The company reported first-quarter 2015 adjusted net income of $45 million, or $0.33 per share vs. $23 million, or $0.25 per share, for the same period in 2014. Earnings per share and other share data contained in this release reflect the 136.1 million and 91.7 million diluted share count for the first quarter ended March 31, 2015 and 2014, respectively.
The company reported first-quarter 2015 Adjusted EBITDA of $133 million, an increase of $18 million or 16 percent compared to the same period in 2014. The increase was primarily driven by the impact of higher revenue and operating cost savings, partially offset by lower investment income at AHS than during the first-quarter of 2014.
Rob Gillette, ServiceMaster’s chief executive officer, noted, “New services at Terminix and strong organic growth at American Home Shield drove revenue and profitability during the quarter.” Gillette added, “By effectively providing convenient, dependable and on-time services to our customers, we are efficiently growing revenue, driving operating leverage and positioning the company to be the leading provider of essential residential and commercial services.”
Terminix. Terminix reported a 5 percent revenue increase in the first quarter of 2015 compared to the first quarter of 2014. The revenue increase was primarily driven by increased sales of new services and improved pricing, partially offset by lower demand for traditional termite services. Adjusted EBITDA increased 14 percent or $11 million vs. prior year, driven primarily by the flow-through effect of higher revenue combined with operating efficiencies.
See additional information here: http://investors.servicemaster.com/press-release/company/servicemaster-global-holdings%C2%A0inc-reports-preliminary-first-quarter-2015-finan.