American Home Shield 2004 Annual Report Download - page 60

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58 ServiceMaster 2004 annual report
Quarterly Operating Results (Unaudited)
Quarterly operating results and related growth for the last three
years in revenue, gross profit, income from continuing opera-
tions, income from discontinued operations and earnings per
share are shown in the table below. As discussed in the “Interim
Reporting” section in the Significant Accounting Policies, for
interim accounting purposes, TruGreen ChemLawn and other
business segments of the Company incur pre-season advertising
costs. In addition, TruGreen ChemLawn incurs costs related to
annual repairs and maintenance procedures that are performed
in the first quarter. These costs are deferred and recognized as
expense in proportion to revenue over the balance of the year.
Full year results are not affected. In 2004, the Company corrected
the interim disclosure of one of its key performance indicators.
Terminix corrected the interim calculation of its pest control
retention rates which resulted in a change in the previously
reported rates. The restated rates were 78.6% as of June 30,
2004 and 78.4% as of September 30, 2004. No other periods
were impacted.
(In thousands, except per share data) 2004 Chg 2003 Chg 2002
Continuing Operations:
Operating Revenue:
First Quarter $ 756,891 6% $ 712,343 0% $ 711,956
Second Quarter 1,088,716 6 1,031,470 2 1,013,777
Third Quarter 1,053,867 3 1,018,263 3 987,757
Fourth Quarter 859,094 7 806,510 2 787,231
$ 3,758,568 5% $ 3,568,586 2% $ 3,500,721
Gross Profit:
First Quarter $ 211,835 8% $ 195,989 (2%) $ 200,944
Second Quarter 391,010 5 373,587 6 353,543
Third Quarter 366,875 5 347,942 8 323,111
Fourth Quarter 263,819 20 220,545 (2) 224,171
$ 1,233,539 8% $ 1,138,063 3% $ 1,101,769
Income (Loss) from Continuing Operations:
First Quarter $ 11,461 137% $ 4,843 (53%) $ 10,377
Second Quarter 70,688 7 66,329 8 61,625
Third Quarter (1) 68,343 N/M (316,526) N/M 66,015
Fourth Quarter (2) 173,565 N/M 23,379 21 19,286
$ 324,057 N/M $ (221,975) N/M $ 157,303
Basic Earnings (Loss) Per Share:
First Quarter $ 0.04 100% $ 0.02 (33%) $ 0.03
Second Quarter 0.24 9 0.22 10 0.20
Third Quarter (1) 0.24 N/M (1.08) N/M 0.22
Fourth Quarter (2) 0.60 N/M 0.08 33 0.06
$ 1.12 N/M $ (0.75) N/M $ 0.52
Diluted Earnings (Loss) Per Share:
First Quarter $ 0.04 100% $ 0.02 (33%) $ 0.03
Second Quarter 0.24 9 0.22 10 0.20
Third Quarter (1) 0.23 N/M (1.08) N/M 0.21
Fourth Quarter (2) 0.57 N/M 0.08 33 0.06
$ 1.08 N/M $ (0.75) N/M $ 0.51
quarterly operating results