SERVICEMASTER GLOBAL HOLDINGS INC (SERV) SEC Filing 10-K Annual report for the fiscal year ending Sunday, December 31, 2017

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Exhibit 99.1

Picture 2

For further information contact:



Investor Relations:

Brian Turcotte

901.597.3282

Brian.Turcotte@servicemaster.com

 

Media:

Michael Wassmer

901.597.1706

Michael.Wassmer@servicemaster.com

 

ServiceMaster Global Holdings, Inc. Reports

Fourth-Quarter and Full-Year 2017 Financial Results

 

Fourth-Quarter and Full-Year 2017 Results

·

Revenue increased five percent to $666 million for fourth quarter and six percent to $2,912 million for full year

·

Net income of $306 million, or $2.26 per share, in the fourth quarter, versus $31 million, or $0.23 per share, a year ago, and $510 million, or $3.76 per share, for full year, versus $155 million, or $1.13 per share, a year ago, primarily due to the impact of Tax Cuts and Jobs Act

·

Net income favorably impacted by $271 million, or $2.00 per share, related to adjustment to deferred income taxes driven by enactment of Tax Cuts and Jobs Act

·

Adjusted net income(1) of $48 million, or $0.35 per share, in the fourth quarter, versus $60 million, or $0.44 per share, a year ago, and $286 million, or $2.11 per share, for full year, versus $281 million, or $2.04 per share, a year ago

·

Adjusted EBITDA(2) decreased seven percent to $135 million for fourth quarter and increased two percent to $678 million for full year

·

Continued strong cash flow conversion in 2017

·

ServiceMaster entered into an agreement to purchase and combine its Terminix national account pest control operations with Copesan Services, Inc., one of the largest national providers of commercial pest management in the country

Full-Year 2018 Outlook

·

Revenue guidance between $3,015 million and $3,045 million, or growth over prior year between four percent and five percent, and Adjusted EBITDA between $690 million and $705 million, or growth between two percent and four percent over prior year.  The 2018 outlook assumes AHS remains with the Company for the full year and excludes the impact of any costs related to the planned separation of AHS in the third-quarter 2018 and any potential acquisitions



MEMPHIS, TENN. — February 27, 2018

 —ServiceMaster Global Holdings, Inc. (NYSE: SERV), a leading provider of essential residential and commercial services, today announced unaudited fourth-quarter and full-year 2017 results.

Fourth-Quarter 2017 Results
For the fourth quarter, the company reported a year-over-year revenue increase of five percent. The increase in revenue was driven primarily by eight percent organic growth at American Home Shield (“AHS”) and the impact of acquiring Landmark Home Warranty (“Landmark”) in November 2016. Fourth-quarter 2017 net income was $306 million, or $2.26 per share, versus $31 million, or $0.23 per share, in the same period in 2016. Fourth-quarter net income was favorably impacted by a $271 million adjustment to deferred income taxes driven by the enactment of the Tax Cuts and Jobs Act on December 22, 2017. Fourth-quarter 2017 adjusted EBITDA was $135 million, a year-over-year decrease of $9 million, or seven percent, driven by an $11 million decline at Terminix. Fourth-quarter 2017 adjusted net income was $48 million, or $0.35 per share versus $60 million, or $0.44 per share, for the same period in 2016.

In the fourth quarter, we executed on our strategies to deliver long-term growth by continuing to make much needed investments in our Terminix business, including strengthening our business leadership, enhancing process and systems capabilities, and empowering our technicians to significantly improve the customer experience we provide,” said chief executive officer Nik Varty. “At American

1


The following information was filed by SERVICEMASTER GLOBAL HOLDINGS INC on Tuesday, February 27, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Click a sentiment analysis snippet below from SERVICEMASTER GLOBAL HOLDINGS INC's Management Discussions to find these positive and negative remarks within their 10-K Annual report:
  • serv_10k_2018-02-28_5_46
    Other - Other
    Hurricanes Harvey and Irma negatively impacted 2017 by approximately $4 million as the result of 53 branches, primarily in Texas and Florida, being temporarily closed for a period of time during August and September 2017.
  • serv_10k_2018-02-28_61_89
    Financial - Expense
    increases in interest rates increasing the cost of servicing our substantial indebtedness
  • serv_10k_2018-02-28_38_39
    Other - Other
    These obligations include commitments for various products and services including, among other things, inventory purchases, telecommunications services, marketing and advertising services and other professional services.
  • serv_10k_2018-02-28_7_7
    Financial - Expense
    Insurance costs decreased $4 million at Corporate for the year ended December 31, 2017.
  • serv_10k_2018-02-28_1_2
    Revenue - Product
    In 2017, organic pest control revenue growth was negatively impacted by a $19 million organic revenue decline associated with Alterra.
  • serv_10k_2018-02-28_10_49
    Financial - Expense
    Represents lease termination and other costs driven by the decision to consolidate the stand-alone operations of HSA, acquired in February 2014, with those of American Home Shield.
  • serv_10k_2018-02-28_50_78
    Other - Other
    our ability to attract and retain key personnel, including our ability to attract, retain and maintain positive relations with trained workers and third-party contractors
  • serv_10k_2018-02-28_38_40
    Other - Other
    Arrangements are considered purchase obligations if a contract specifies all significant terms, including fixed or minimum quantities to be purchased, a pricing structure and approximate timing of the transactions.
  • serv_10k_2018-02-28_11_50
    Financial - Expense
    Represents severance and other costs related to the reorganization of the Franchise Services Group.
  • serv_10k_2018-02-28_4_5
    Revenue - Product
    Includes a $6 million and $33 million reduction in revenue from company-owned branches for the years ended December 31, 2017 and 2016, respectively, offset, in part, by a $2 million increase in royalty fees as result of the branch conversions for the year ended December 31, 2016.
  • serv_10k_2018-02-28_37_37
    Financial - Expense
    See Note 8 to the consolidated financial statements for additional discussion of our restructuring costs.
  • serv_10k_2018-02-28_62_90
    Financial - Expense
    increased borrowing costs due to lowering or withdrawal of the ratings, outlook or watch assigned to our debt securities
  • serv_10k_2018-02-28_37_36
    Financial - Expense
    Lease exit costs, including redundant rent, expected to be incurred in 2018 of approximately $8 million related to the lease for our corporate headquarters and the headquarters for Terminix have been excluded.

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Exhibit 10.17 - MATERIAL CONTRACT

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Exhibit 10.41 - MATERIAL CONTRACT

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Exhibit 12 - STATEMENT REGARDING CALCULATION OF RATIOS

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Exhibit 21 - SUBSIDARIES OF THE REGISTRANT

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Exhibit 23 - CONSENTS OF EXPERTS AND COUNSEL

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Exhibit 31.1 - RULE 13A-14A/15D-14A CERTIFICATION

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Exhibit 31.2 - RULE 13A-14A/15D-14A CERTIFICATION

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Exhibit 32.1 - SECTION 1350 CERTIFICATION

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Exhibit 32.2 - SECTION 1350 CERTIFICATION

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  • Form Type: Annual
  • Number of times amended: 0
  • Accession Number: 0001428875-18-000032
  • Submitted to the SEC: Wednesday, February 28, 2018 5:19:15 PM EST
  • Accepted by the SEC: Wednesday, February 28, 2018
  • Fiscal Year ending: December 2017
  • Industry: Management Services