American Home Shield 2008 Annual Report Download - page 36

Table of Contents
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the
future, and Adjusted EBITDA and Comparable Operating Performance do not reflect any cash requirements for such replacements; and
Other companies in the Company's industries may calculate Adjusted EBITDA and Comparable Operating Performance differently, limiting
their usefulness as comparative measures.
Operating revenues and Comparable Operating Performance by operating segment are as follows:
Successor
Predecessor
(In thousands)
Year Ended
Dec. 31, 2008
Jul. 25, 2007 to
Dec. 31, 2007
Jan. 1, 2007 to
Jul. 24, 2007
Year Ended
Dec. 31, 2006
Operating Revenue:
TruGreen LawnCare $1,094,730 $ 501,830 $ 597,147 $1,052,257
TruGreen LandCare 316,306 169,741 242,154 444,338
Terminix 1,093,922 445,760 645,700 1,075,481
American Home Shield 588,039 209,661 331,361 564,817
Other Operations and Headquarters 218,435 95,366 118,028 195,810
Total Operating Revenue $3,311,432 $ 1,422,358 $ 1,934,390 $3,332,703
Comparable Operating Performance:
TruGreen LawnCare $ 184,504 $ 102,296 $ 84,208 $ 172,157
TruGreen LandCare 13,300 1,483 965 5,622
Terminix 218,997 74,047 120,057 166,594
American Home Shield 88,467 41,528 63,432 91,360
Other Operations and Headquarters 631 (17,025) (60,277) (20,458)
Total Comparable Operating Performance $ 505,899 $ 202,329 $ 208,385 $ 415,275
Memo: Items included in Comparable Operating Performance:
Restructuring charges and Merger related expenses(1) $ 12,495 $ 26,815 $ 58,350 $ 22,640
Management fee(2) $ 2,000 $ 875 $ — $ —
Comparable Operating Performance includes (i) restructuring charges associated with Project Accelerate, (ii) severance costs and costs related to the
consolidation of our corporate headquarters in Memphis, Tennessee, including the closing of our office in Downers Grove, Illinois, (iii) costs to exit
leases and severance payments related to organizational changes within the TruGreen LandCare operations, (iv) charges related to Fast Forward and
(v) Merger related expenses. Substantially all of the restructuring charges and Merger related expenses are included in the Comparable Operating
Performance of the Other Operations and Headquarters segment, with the exception of $5.9 million included in the American Home Shield segment for
the Successor period from July 25, 2007 to December 31, 2007 and $7.9 million included in the TruGreen LandCare segment for the Successor period
from July 25, 2007 to December 31, 2007.
Represents a management fee payable to CD&R pursuant to a consulting agreement (the "Consulting Agreement") under which CD&R provides the
Company with on-going consulting and management advisory services for a minimum annual fee of $2 million.
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(1)
(2)