American Home Shield 2009 Annual Report Download - page 43

Table of Contents
home resale market throughout most of the country; however, this was offset, in part, by increased sales in the real estate market in the third and fourth
quarters.
American Home Shield's Comparable Operating Performance increased $18.9 million for the year ended December 31, 2009 compared to 2008, which
includes a $10.2 million increase in interest and net investment income from the American Home Shield investment portfolio (primarily reflecting reductions
in impairments of securities). American Home Shield's Comparable Operating Performance also reflects a decline in sales and marketing costs, offset, in part,
by unfavorable trending in health care costs.
ServiceMaster Clean Segment
The ServiceMaster Clean segment, which provides residential and commercial disaster restoration and cleaning services primarily under the
ServiceMaster and ServiceMaster Clean brand names, on-site furniture repair and restoration services primarily under the Furniture Medic brand name and
home inspection services primarily under the AmeriSpec brand name, reported a 3.2 percent decrease in revenue, an 8.7 percent increase in operating income
and a 4.9 percent increase in Comparable Operating Performance for the year ended December 31, 2009 compared to 2008. Trends in revenue reflect a
decline in product sales, primarily to franchisees, offset, in part, by increases in disaster restoration services and other franchise revenues.
ServiceMaster Clean's Comparable Operating Performance increased $2.7 million for the year ended December 31, 2009 compared to 2008, which
includes a $1.5 million decrease in restructuring charges compared to 2008. ServiceMaster Clean's Comparable Operating Performance also reflects reduced
corporate overhead spending.
Other Operations and Headquarters Segment
This segment includes the operations of Merry Maids, SMAC and the Company's headquarters functions. The segment reported a 5.2 percent decrease in
revenue, a 21.7 percent improvement in operating loss and a 5.4 percent decrease in Comparable Operating Performance for the year ended December 31,
2009 compared to 2008. The Merry Maids operations reported a 5.5 percent decrease in revenue for the year ended December 31, 2009 compared to 2008.
Trends in revenue were adversely impacted by soft consumer demand. The segment's Comparable Operating Performance declined $2.9 million for the year
ended December 31, 2009 compared to 2008, which includes the impacts of a $4.9 million increase in restructuring and Merger related charges primarily
related to Fast Forward, a $5.5 million increase in management fees related to the consulting agreements executed in 2009 and unfavorable health care costs,
offset, in part, by a $6.9 million increase in interest and net investment income, reduced provisions for incentive compensation and reduced overhead
spending. The Merry Maids operations reported a 5.3 percent increase in Comparable Operating Performance for the year ended December 31, 2009
compared to 2008, which also includes reduced overhead spending.
Discontinued Operations
The components of loss from discontinued operations, net of income taxes, and the reconciliation of operating loss to Adjusted EBITDA and Comparable
Operating Performance for the years ended December 31, 2009 and 2008, the Successor period from July 25, 2007 to
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