MEMPHIS, Tenn.-- ServiceMaster Global Holdings, Inc., a leading provider of essential residential and commercial services, today announced unaudited first-quarter 2016 results. The company reported a year-over-year revenue increase of 6 percent driven by organic growth at American Home Shield (“AHS”) and in Terminix’s pest service line as well as the impact of acquiring Alterra Pest Control, LLC (“Alterra”) on November 10, 2015.
First-quarter 2016 net income was $39 million, or $0.28 per share, versus $28 million, or $0.20 per share, in the same period in 2015. First-quarter 2015 net income includes a loss on extinguishment of debt of $8 million, net of tax.
First-quarter 2016 adjusted net income was $47 million, or $0.34 per share, versus $45 million, or $0.33 per share, for the same period in 2015.
First-quarter 2016 Adjusted EBITDA was $127 million, a year-over-year decrease of $6 million, or 5 percent, primarily driven by a $10 million decrease in Adjusted EBITDA at AHS offset by a $5 million increase in Adjusted EBITDA at Terminix. The Adjusted EBITDA reduction this quarter reflects increases of approximately $6 million in technology costs, primarily investments related to the ServSmartSM initiative, $11 million in sales/marketing spend and $10 million of contractor claim costs at AHS, partially offset by $26 million from the conversion of higher revenue.
Rob Gillette, ServiceMaster’s chief executive officer, noted, “We continue to grow and invest in our business with revenue growth accelerating at both AHS and Terminix this quarter. By investing in marketing and our ServSmart platform, we are building brand awareness and developing a technology platform that makes it easy for our customers to do business with us. With these investments we are well-positioned for future growth and profitability.”
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Source: ServiceMaster