The ServiceMaster Company Reports Preliminary Second-Quarter 2013 Financial Results
- Operating revenue decreased 2.4% to $939 million
- Operating loss of $564 million; includes pre-tax non-cash impairment charges of $673 million to reduce the carrying value of TruGreen's goodwill and trade name
- Operating performance decreased 28.9% to $151 million
- TruGreen reported revenue of $307.6 million, a 12.4% decrease from the prior year, and operating performance of $22.4 million, a 74.6% decrease from the prior year
MEMPHIS, Tenn. - Aug. 14, 2013 // PRNewswire // - The ServiceMaster Company, one of the world's largest residential service networks, today announced preliminary unaudited second-quarter 2013 results, including operating revenue of $939 million, a decline of 2.4 percent compared to the same period in 2012. The company reported second-quarter 2013 operating loss of $564 million, which included pre-tax non-cash impairment charges of $673 million to reduce the carrying value of TruGreen's goodwill and trade name. The company's second-quarter 2013 operating performance decreased 28.9 percent to $151 million compared to the same period in 2012. A reconciliation of operating (loss) income to operating performance is set forth below in this press release.
"Our second-quarter 2013 results did not meet our expectations," said Rob Gillette, ServiceMaster's chief executive officer. "The decline in revenue and operating performance compared to the prior year was largely attributable to TruGreen's performance. Excluding TruGreen, our other businesses performed about as we expected."
Gillette, who joined ServiceMaster in June, said the company continues to focus on growing all of its businesses, with particular attention to getting TruGreen back on track.
"As we've said, TruGreen is going through some challenges," said Gillette, "but it's largely self-inflicted. Right now, we're focused on stabilizing the business, then getting it back on a path toward growth and improved profitability. When I look at our company overall, we have strong brands, passionate associates and great growth opportunities in all of our businesses. I'm excited to be part of the ServiceMaster team."
Second-quarter Earnings Conference Call
The company will discuss its strategic initiatives and second-quarter operating results during a conference call at 7:30 a.m. Central Time today. To participate on the conference call, interested parties should call 800.786.1918 (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 September 13, 2013. To access the replay of this call, please call 800.633.8284 and enter reservation number 21669565 (international participants: 402.977.9140, reservation number 21669565). 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
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