The ServiceMaster Company Reports Preliminary Full-Year and Fourth-quarter 2012 Financial Results
- Full-year operating revenue decreased 0.4% to $3.2 billion
- Full-year operating loss was $533 million, which included non-cash goodwill and trade name impairment charges of $909 million
- Full-year operating performance decreased 7.8% to $563 million
- Fourth-quarter operating revenue decreased 2.5% to $676 million
- Fourth-quarter operating income decreased 12.4% to $39 million
- Fourth-quarter operating performance decreased 37.4% to $81 million
- In the first quarter of 2013, extended maturity date of $1.2 billion under Term Facility from 2014 to 2017
MEMPHIS, TENN, ― February 26, 2012 — The ServiceMaster Company, one of the world’s largest residential and commercial service networks, today announced preliminary unaudited 2012 results, including operating revenue of $3.2 billion, a decline of 0.4 percent compared to 2011 results. The company reported a 2012 operating loss of $533 million, which included non-cash goodwill and trade name impairment charges of $790 million and $119 million, respectively. The company’s 2012 operating performance decreased 7.8 percent to $563 million compared to 2011. A reconciliation of operating income (loss) to operating performance is set forth below in this press release.
ServiceMaster’s preliminary, unaudited fourth-quarter results include operating revenue of $676 million, a decline of 2.5% compared to prior year results. Operating income for the fourth quarter decreased 12.4 percent to $39 million. The company’s operating performance for the fourth quarter of 2012 decreased 37.4 percent to $81 million.
“While our 2012 overall results weren’t up to our expectations, we achieved solid results in Terminix, American Home Shield and Merry Maids and put the building blocks in place for success in 2013 in our other businesses,” said Hank Mullany, ServiceMaster’s chief executive officer.
He noted that excluding TruGreen, the rest of the company grew operating revenue 5.2 percent and operating performance improved 2.1 percent for the year. Excluding TruGreen, that represents the second-best revenue growth the company has experienced since 2007.
“We’re committed to the strategies that will get TruGreen on track in 2013 and deliver long-term, sustainable revenue and earnings growth for the brand, and the company overall,” Mullany said, adding that the diversity of the ServiceMaster family of brands continues to be a strength of the company. “We believe we have a strong foundation for the future, with the leadership and strategies in place to achieve our vision of transforming ServiceMaster into a growing, best-in-class service provider. We will be the best place to work and invest.”
Fourth-Quarter and Full-Year Earnings Conference Call
The company will discuss its strategic initiatives and fourth-quarter and full-year operating results during a webcast conference call at 7:30 a.m. Central Time today. To participate on the conference call, interested parties should call 800.681.8612. Additionally, the conference call will be available via webcast. A slide presentation highlighting the company’s results and key performance indicators will also be available. To participate via webcast and view the slide presentation, visit the company’s investor relations home page at www.servicemaster.com.
For full Segment Review and Forward-looking Statements, please visit the Investor section at ServiceMaster.com (http://phx.corporate-ir.net/phoenix.zhtml?c=118856&p=irol-irhome).
With a global network of more than 7,300 company-owned, franchise and licensed locations, Memphis-based ServiceMaster is one of the world’s largest residential and commercial service networks. The company’s high-profile brands are Terminix, TruGreen, American Home Shield, ServiceMaster Clean, Merry Maids, Furniture Medic and AmeriSpec. Through approximately 20,000 corporate associates and a franchise network that we estimate independently employs over 31,000 additional people, the ServiceMaster family of brands provided services and products to approximately 8 million customers during the last 12 months. Our market-leading brands provide a range of residential and commercial services including termite and pest control; lawn, tree and shrub care; home warranties and preventative maintenance contracts; furniture repair; home inspections; home cleaning; janitorial services; and disaster restoration. Go to www.servicemaster.com for more information about ServiceMaster or follow us at twitter.com/ServiceMaster or facebook.com/TheServiceMasterCo.