American Home Shield 2015 Annual Report Download - page 2

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1 Adjusted EBITDA means net income (loss) before: income (loss) from
discontinued operations, net of income taxes; provision (benet) for income
taxes; loss on extinguishment of debt; interest expense; depreciation
and amortization expense; 401(k) Plan corrective contribution; non-cash
impairment of software and other related costs; non-cash impairment of
property and equipment; non-cash stock based compensation expense;
restructuring charges; gain on sale of Merry Maids branches; management
and consulting fees; consulting agreement termination fees; and other non-
operating expenses. For a reconciliation of Adjusted EBITDA to net income
(loss), see “Item 6. Selected Financial Data” in our Annual Report on Form
10-K included in this annual report to stockholders.
2 Adjusted EBITDA margin means Adjusted EBITDA as a percentage of revenue.
3 Adjusted Net Income means income from continuing operations before:
amortization expense; 401(k) Plan corrective contribution; impairment of
software and other related costs; consulting agreement termination fees;
restructuring charges; gain on sale of Merry Maids branches; management
and consulting fees; loss on extinguishment of debt; other expense; and
the tax impact of all the aforementioned adjustments. For a reconciliation
of Adjusted Net Income to income from continuing operations, see page 16.
4 Based on Adjusted Net Income and weighted average diluted shares
outstanding of 136.6 million in 2015 and 113.8 million in 2014.
5 Free Cash Flow means (i) net cash provided from operating activities from
continuing operations before: call premium paid on retirement of debt;
premium received on issuance of debt; cash paid for consulting agreement
termination fees; and excess tax benets from stock-based compensation;
(ii) less property additions. For a reconciliation of net cash provided from
operating activities from continuing operations to Free Cash Flow, see “Item
6. Selected Financial Data” in our Annual Report on Form 10-K included in
this annual report to stockholders.
Operating Results 2015 2014 Change
Revenue $2,594 $2,457 6%
Net Income (Loss) 160 (57)
Adjusted Net Income3 245 166
Adjusted EBITDA1 622 557 12%
Adjusted earnings per share4 1.80 1.46 23%
Financial Position
Total Assets 5,098 5,028
Total Debt 2,752 3,026
Shareholder Equity 545 359
Cash Flows
Cash provided from operating activities 336 253 33%
Free Cash Flow5 358 274 31%
(In millions, except per-share data)
As of and for the years ending December 31,
2,594
2,105
151413122011
2,214
2,293
2,457
$ in Millions
Revenue
Adjusted EBITDA¹
557
622
397
413
450
19% 19%
20%
23%
24%
$ in Millions
Adj. EBITDA margin2
151413122011
2015
Financial
Summary