ServiceMaster Reports Preliminary Q3 Financial Results

MEMPHIS, Tenn. — ServiceMaster Global Holdings, Inc., announced preliminary unaudited third-quarter 2014 results. The company reported third-quarter 2014 revenue of $664 million, an increase of 8 percent compared to the same period in 2013.

The company reported a third-quarter 2014 net loss of $4 million, or $0.03 per diluted share, which included a loss on extinguishment of debt of $65 million and consulting agreement termination fees of $21 million in conjunction with the initial public offering, versus net income of $45 million, or $0.49 per diluted share for the third quarter of 2013.

The company reported third-quarter 2014 adjusted net income(1) of $61 million, or $0.45 per diluted share, versus $32 million, or $0.35 per share, in the same period in 2013. Earnings per share and other share data for the third-quarter 2014 and nine months ended September 30, 2014 contained in this release reflect the 41.3 million shares issued by the company on July 1, 2014, in conjunction with its initial public offering.

The company reported third-quarter 2014 Adjusted EBITDA(2) of $157 million, an increase of $29 million or 22 percent 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 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 and American Home Shield both reported revenue and Adjusted EBITDA growth in the third quarter of 2014 versus prior year,” said Rob Gillette, ServiceMaster’s chief executive officer. “Based on our strong third-quarter 2014 operating performance, we’re increasing our current projection for full-year 2014 Adjusted EBITDA to a range of $543 million to $548 million, with revenue projected to be in the range of $2,445 million to $2,455 million.”

TERMINIX RESULTS. Terminix reported a 6 percent revenue increase in the third quarter of 2014 compared to the third 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 18 percent or $12 million versus prior year, driven primarily by higher revenue conversion and increased production labor and overhead efficiency.