- First-quarter operating revenue decreased 7.1% to $608 million
- First-quarter operating income decreased 63.2% to $20 million
- First-quarter operating performance decreased 35.0% to $65 million
- In the first quarter of 2013, extended maturity date of $1.2 billion under Term Facility from 2014 to 2017
- As of March 31, 2013, $447.7 million of capacity remained available under the revolving credit facility
MEMPHIS, Tenn. - May 14, 2013 // PRNewswire // - The ServiceMaster Company, one of the world's largest residential service networks, today announced preliminary unaudited first-quarter 2013 results, including operating revenue of $608 million, a decline of 7.1 percent compared to the same period in 2012. The company reported first-quarter 2013 operating income of $20 million, a decline of 63.2 percent compared to the same period for 2012. The company's first-quarter 2013 operating performance decreased 35 percent to $65 million compared to the same period for 2012. A reconciliation of operating income (loss) to operating performance is set forth in this press release.
"Our first-quarter 2013 results were disappointing," said John Krenicki, Jr. , ServiceMaster's interim chief executive officer. "The path forward for us starts with putting our customers first, executing well and implementing the turnaround agenda at TruGreen." Krenicki assumed the CEO position following the departure of former CEO Hank Mullany , who resigned from the company effective April 12.
Krenicki noted that the decline in revenue and earnings compared to the first quarter of 2012 was largely attributable to TruGreen's performance and the effects of the cool, wet start to the spring season in many parts of the country for both TruGreen and Terminix. The unseasonably late spring delayed production and compared unfavorably to the unusually warm weather that accelerated production into the first quarter last year. Excluding TruGreen, the other ServiceMaster businesses performed about as expected, he said.
"We're confident about the future of ServiceMaster," said Krenicki. "We have leading brands, talented and passionate associates committed to serving customers and a lot of untapped opportunity to improve results. But we need to make progress at TruGreen while continuing to run the rest of our businesses well."
The company will discuss its strategic initiatives and first-quarter operating results during a conference call at 9 a.m. central time today. To participate on the conference call, interested parties should call 800.743.4304 (or international participants, 212.231.2922). 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.
The call will be available for replay until June 13. To access the replay of this call, please call 800.633.8284 and enter reservation number 21656748 (international participants: 402.977.9140, reservation number 21656748). Or you can review the webcast on the company's investor relations home page.
For full segment review and forward-looking statements, please visit the Investor section at ServiceMaster.com.
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 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 independently employs an estimated 31,000 additional people, the ServiceMaster family of brands provided services and products to approximately 8 million customers during the last 12 months. The company's 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 the company at twitter.com/ServiceMaster or facebook.com/TheServiceMasterCo.
SOURCE The ServiceMaster Company