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ServiceMaster reports 6% revenue increase for its first quarter
13 Jun, 2006 LM Week in ReviewDOWNERS GROVE, IL — In May, the ServiceMaster Company, parent of TruGreen ChemLawn and TruGreen LandCare, reported that its first quarter (Q1) revenues from continuing operations increased 6% compared to the same period last year. Operating income rose 13% and earning per share rose from $.04 to $.05 during the same period.
The company's TruGreen ChemLawn business reported Q1 revenue rose 11% to $137 million, thanks to an earlier spring than in Q1 2005. The growth was also partly due to a 2% increase in average application prices. Operating income rose approximately $4 million in Q1 2006 compared to the previous year.
ChemLawn's growth was partially offset by a 4% reduction in customer count, due to a shift away from telemarketing. Customer retention rates also declined for Q1. The company expects new sales methods and improved customer care programs to turn this around for the year as a whole. Operating results were also offset by higher fuel and health benefit costs.
The company's TruGreen LandCare business reported a slight decline in Q1 revenue to $99 million and an increase of $1.5 million in seasonal operating losses. The company said a decline in snow removal revenue due to the mild weather offset strong revenue growth from ehancement sales and modest growth in contract maintenance revenue.
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