ServiceMaster Q4 2018 Results
ServiceMaster has announced revenue growth of 12 per cent, including 5 per cent organic growth at its pest control business, Terminix, in the final quarter of 2018.
The results take the group's full year 2018 revenues to 8 percent (or US $1,900 million).
The company also announced a net loss of US $41 million (or US $0.30 per share) from costs associated with the spin-off of Frontdoor, Inc., the parent company of its Memphis, Tennessee-based American Home Shield home warranty operation into a separate business.
Discussing the results, ServiceMaster CEO, Nikhil (Nik) Varty, said:
"Our primary goal in 2018 was to transform our Terminix business and unlock the potential to drive sustainable revenue growth. We are pleased to report that our focused efforts throughout 2018 and strategic initiatives resulted in record revenue at Terminix in the fourth quarter and full year 2018.
"Improvements in pest sales, driven by enhanced marketing initiatives, and stronger start and completion rates drove organic growth of 5 percent during the quarter, including over 7 per cent in residential pest for a second consecutive quarter.
"The strong second half performance in these areas led to full-year organic growth of 2 per cent, meeting the high end of expectations we set a year ago. ServiceMaster Brands grew revenue organically 5 per cent in the fourth quarter and 9 percent for the full year. We continue to create strong growth by focusing on high-value segments in the cleaning and restoration businesses, with revenue in both commercial restoration and commercial cleaning national accounts up over 20 per cent in 2018".