ServiceMaster Q3 2019 Results
ServiceMaster has reported a year-on-year revenue increase to $528 million and net income of $25 million in a quarter described by CEO, Nik Varty, as “challenging”.
The company’s pest control company, Terminix Commercial, reported strong gains following the recent acquisitions of Gregory Pest Solutions and McCloud Services.
Shares in the group which have lost around a quarter of their value this year – partly in response to investor concerns about its exposure to legacy claims arising from termite damage and fumigation services rallied on the news, and concerns over the direction of its acquisitions-led growth strategy, rallied following publication of the results.
In an investor call earlier today, Varty said:
“We continue to make progress on the execution of our long-term value creation strategy and remain confident in our ability to deliver sustainable profitable growth,” said ServiceMaster CEO Nik Varty. “We are improving our service levels across all of our businesses, which has resulted in continued stronger retention rates, net promoter scores, customer satisfaction and ultimately organic growth. Terminix Commercial showed strong retention gains in the quarter and added significant additional capabilities and talent with the recent acquisitions of Gregory Pest Solutions and McCloud Services.
“ServiceMaster Brands had a strong quarter and continues to create value for our franchise network through development of centers of excellence in healthcare cleaning and disinfections as well as commercial national accounts. While I am pleased with the progress we are making in all of these areas, our third quarter EBITDA performance is a reminder of how much more work we have to do.”