ServiceMaster Global Holdings, Inc (SERV) has said the profit for the quarter ended Mar. 31, 2017 was unchanged at $39 million or $0.29 a share, when compared with the last year period. On the other hand, adjusted net income for the quarter stood at $46 million, or $0.34 a share compared with $47 million or $0.34 a share, a year ago. Revenue during the quarter grew 5.76 percent to $643 million from $608 million in the previous year period. Gross margin for the quarter contracted 52 basis points over the previous year period to 46.19 percent. Total expenses were 84.76 percent of quarterly revenues, up from 83.88 percent for the same period last year. That has resulted in a contraction of 88 basis points in operating margin to 15.24 percent.
Operating profit was unchanged at $98 million for the quarter, compared with the previous year period.
However, the adjusted EBITDA for the quarter stood at $134 million compared with $127 million in the prior year period. At the same time, adjusted EBITDA margin contracted 5 basis points in the quarter to 20.84 percent from 20.89 percent in the last year period.
Rob Gillette, ServiceMaster’s chief executive officer, noted: “ServiceMaster delivered a good quarter to start 2017. At AHS, organic growth and the contribution from 2016 acquisitions drove strong revenue and Adjusted EBITDA growth again this quarter. At Terminix, our operating performance was in line with our expectation for revenue and Adjusted EBITDA growth as we continue to invest in improving our service delivery and customer service experience. We are confident the operational changes we are making will improve customer retention and result in solid growth in the future.”
For fiscal year 2017, ServiceMaster Global Holdings, Inc projects revenue to be in the range of $2,885 million to $2,915 million.
Operating cash flow improves
ServiceMaster Global Holdings, Inc has generated cash of $127 million from operating activities during the quarter, up 19.81 percent or $21 million, when compared with the last year period. The company has spent $31 million cash to meet investing activities during the quarter as against cash outgo of $15 million in the last year period.
The company has spent $60 million cash to carry out financing activities during the quarter as against cash outgo of $17 million in the last year period.
Cash and cash equivalents stood at $334 million as on Mar. 31, 2017, down 9.97 percent or $37 million from $371 million on Mar. 31, 2016.
Working capital turns negative
Working capital of ServiceMaster Global Holdings, Inc has turned negative to $131 million on Mar. 31, 2017 from positive $27 million on Mar. 31, 2016. Current ratio was at 0.88 as on Mar. 31, 2017, down from 1.03 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 47 days for the quarter from 52 days for the last year period. Days sales outstanding went down to 69 days for the quarter compared with 71 days for the same period last year.
Days inventory outstanding has decreased to 6 days for the quarter compared with 11 days for the previous year period. At the same time, days payable outstanding went down to 28 days for the quarter from 30 for the same period last year.
Debt moves up marginally
ServiceMaster Global Holdings, Inc has witnessed an increase in total debt over the last one year. It stood at $2,833 million as on Mar. 31, 2017, up 3.09 percent or $85 million from $2,748 million on Mar. 31, 2016. Total debt was 52.44 percent of total assets as on Mar. 31, 2017, compared with 53.05 percent on Mar. 31, 2016. Debt to equity ratio was at 4.14 as on Mar. 31, 2017, down from 4.66 as on Mar. 31, 2016. Interest coverage ratio improved to 2.65 for the quarter from 2.58 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
