Revenue during the quarter grew 5.32 percent to $633 million from $601 million in the previous year period. Gross margin for the quarter expanded 207 basis points over the previous year period to 45.50 percent. Total expenses were 82.46 percent of quarterly revenues, up from 78.04 percent for the same period last year. That has resulted in a contraction of 443 basis points in operating margin to 17.54 percent.

Operating income for the quarter was $111 million, compared with $132 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $144 million compared with $124 million in the prior year period. At the same time, adjusted EBITDA margin improved 212 basis points in the quarter to 22.75 percent from 20.63 percent in the last year period.

Rob Gillette, ServiceMasters chief executive officer, noted: "This was another solid quarter. At American Home Shield, both revenue and Adjusted EBITDA growth increased as we continue to focus on streamlining operations, growing organically and capitalizing on recent acquisitions. At Terminix, our investment in our termite business continues to show progress as year-over-year sales and revenue continue to grow. Challenges remain in our pest control business but we are confident the operational changes we are making will improve customer service and retention and result in solid growth in the future."

SERVICEMASTER GLOBAL HOLDINGS forecasts revenue to be in the range of $2,885 million to $2,915 million for fiscal year 2017.

The company has spent $133 million cash to meet investing activities during the year as against cash outgo of $98 million in the last year. It has incurred net capital expenditure of $48 million on net basis during the year, up 84.62 percent or $22 million from year ago.

The company has spent $102 million cash to carry out financing activities during the year as against cash outgo of $381 million in the last year period.

Cash and cash equivalents stood at $386 million as on Dec. 31, 2016, up 30.41 percent or $90 million from $296 million on Dec. 31, 2015.

Working capital remains negative
Working capital of SERVICEMASTER GLOBAL HOLDINGS was negative $44 million on Dec. 31, 2016 compared with negative $22 million on Dec. 31, 2015. Current ratio was at 0.96 as on Dec. 31, 2016, down from 0.98 on Dec. 31, 2015.

Cash conversion cycle (CCC) has increased to 30 days for the quarter from 28 days for the last year period. Days sales outstanding went up to 39 days for the quarter compared with 37 days for the same period last year.

Days inventory outstanding was almost stable at 6 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 15 days for the quarter, when compared with the previous year period.