American Home Shield 2005 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2005 American Home Shield annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 58

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58

SERVICEMASTER 2005 ANNUAL REPORT P.2
Chairman’s Letter
Fellow Shareholders,
The overwhelming storyline for 2005 is GROWTH.
We grew revenues and earnings per share in line with our expecta-
tions. We delivered top-line growth in every business segment.
We surpassed $1 billion in revenue in two of our flagship businesses,
Terminix and TruGreen ChemLawn, which joined ServiceMaster
Clean with its $1.5 billion in customer level revenue.* But the real
story is what comes next. Building on the strong fundamentals of
2005, we have increased our expectations for the years ahead:
Expectation 2005 2006 2007
Revenues Mid-Single-Digit Mid-to-High-Single-Digit High-Single-Digit
Growth Growth Growth
Earnings Slightly higher than Revenue Low-Double-Digit Mid-Teens
Growth Growth Growth
In this view, the growth we produced in 2005 is not a one-year story,
but Year Two of a performance trajectory that will deliver higher levels
of growth in 2006 and higher still in 2007. We have said we would
perform as we transform, and now we have translated that promise
into tangible results in 2005 and new guidance for 2006 and 2007.
Performing
We have said that outstanding companies deliver outstanding results
regardless of factors beyond their control. In 2005, we overcame
record high fuel prices, steadily rising interest rates, and stiffer restric-
tions on telemarketing. We focused on factors we can control, such
as customer satisfaction, sales force development, geographical
expansion, and safety in the workplace.
* Customer level revenue represents the combined revenue of the Company’s direct operations and the estimated revenue of its independent
franchisees and licensees.