ServiceMaster Announces Q4 and Full-Year 2015 Results

MEMPHIS, Tenn. — ServiceMaster Global Holdings, Inc., announced unaudited fourth-quarter and full year 2015 results. For the fourth quarter, the company reported a year-over-year revenue increase of 4 percent, and, for the full year, the company reported a year-over-year increase of 6 percent. Both the fourth quarter and full year increases in revenue were driven by organic growth at American Home Shield (AHS), increased sales of new services at Terminix and price increases.

 

Fourth-quarter 2015 net income was $17 million, or $0.12 per share, versus $20 million, or $0.15 per share, in the same period in 2014. Full year 2015 net income was $160 million, or $1.17 per share, versus a net loss of $57 million, or $(0.50) per share, in the same period in 2014. Fourth-quarter and full year 2015 include a $23 million charge for voluntary corrective contributions to our 401(k) plan.

 

Fourth-quarter 2015 adjusted net income was $45 million, or $0.33 per share, versus $31 million, or $0.23 per share, for the same period in 2014. Full year 2015 adjusted net income was $245 million, or $1.80 per share, versus $166 million, or $1.46 per share, for the same period in 2014.

 

Fourth-quarter 2015 Adjusted EBITDA was $124 million, a year-over-year increase of $10 million, or 9 percent, driven largely by an increase at Terminix of $14 million. Full year 2015 Adjusted EBITDA was $622 million, a year-over-year increase of $65 million, or 12 percent, driven largely by increases at Terminix and AHS of $38 million and $26 million, respectively.

 

Rob Gillette, ServiceMasters chief executive officer, noted, In 2015, we exceeded our long-term goals by growing the top line six percent and bottom line twelve percent. We look forward to a strong 2016 as we continue to meet our financial commitments and deliver superior service, achieve high customer retention and build on our trusted brand identity by empowering our employees, contractors and franchisees through customer centric technologies.

 

TERMINIX RESULTS. Terminix reported a 6 percent year-over-year revenue increase in the fourth-quarter of 2015, driven by product mix, improved pricing, the impact of acquiring Alterra Pest Control, LLC (Alterra) on November 10, 2015 and increased sales of new services. Adjusted EBITDA increased 23 percent, or $14 million, versus prior year, primarily driven by the flow-through effect of higher revenue and cost reduction initiatives.

 

For the year, Terminix reported a 5 percent year-over-year revenue increase, primarily driven by increased sales of new services, improved pricing, product mix and the impact of the Alterra acquisition, partially offset by lower demand for traditional termite services. Adjusted EBITDA increased 12 percent, or $38 million, versus prior year, primarily driven by the flow-through effect of higher revenue and cost reduction initiatives, partially offset by higher selling costs.