ServiceMaster Announces 2015 Q3 Earnings

MEMPHIS, Tenn. — ServiceMaster Global Holdings, Inc., announced preliminary unaudited third-quarter 2015 results. The company reported a year-over-year revenue increase of 6 percent driven by strong organic growth at American Home Shield (AHS), increased sales of new services at Terminix and price increases.

 

Third-quarter 2015 net income was $49 million or $0.36 per share, including a loss on extinguishment of debt of $31 million related to the companys redemption of its 7% Senior Notes due 2020, versus a loss of $4 million or ($0.03) per share in the same period in 2014.

 

Third-quarter 2015 adjusted net income was $74 million, or $0.54 per share, versus $61 million, or $0.46 per share, for the same period in 2014.

 

Third-quarter 2015 Adjusted EBITDA was $174 million, a year-over-year increase of $17 million or 11 percent driven largely by increases at AHS and Terminix of $13 million and $5 million, respectively.

 

Rob Gillette, ServiceMasters chief executive officer, noted Since going public in July 2014, we have reported six consecutive quarters of year-over-year revenue and Adjusted EBITDA growth. As we implement our mobile strategy across all our business units, we expect the convenience of services we bring to our customers to result in continued growth and profitability.

 

A reconciliation of income from continuing operations to both adjusted net income and Adjusted EBITDA, as well as a reconciliation of net cash provided from operating activities from continuing operations to pre-tax unlevered free cash flow, are set forth below in this press release.

 

Terminix reported a 5 percent year-over-year revenue increase in the third-quarter of 2015 driven primarily by increased sales of new services and improved pricing, partially offset by lower demand for traditional termite services. Adjusted EBITDA increased 6 percent or $5 million versus prior year, driven primarily by the flow-through effect of higher revenue, partially offset by higher selling costs during the quarter.