American Home Shield 2014 Annual Report Download - page 2

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for income taxes; gain (loss) on extinguishment of debt; interest expense; depreciation and amortization expense; non-cash impairment
of software and other related costs; non-cash impairment of property and equipment; non-cash stock-based compensation expense;
restructuring charges; 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 (loss) from continuing operations before: amortization expense; impairment of software and other
related costs; consulting agreement termination fees; restructuring charges; management and consulting fees; loss on extinguishment
of debt; and the tax impact of all the aforementioned adjustments. For a reconciliation of Adjusted Net Income to income (loss) from
continuing operations, see page 12.
4 Based on Adjusted Net Income and weighted average diluted shares outstanding of 113.8 million in 2014 and 92.2 million in 2013.
5 Pre-Tax Unlevered Free Cash Flow means (i) net cash provided from operating activities from continuing operations before: cash paid
for interest expense; call premium paid on retirement of debt; premium received on issuance of debt; cash paid for income taxes, net
of refunds; cash paid for restructuring charges; cash paid for management and consulting fees; cash paid for consulting agreement
termination fees; cash paid for impairment of software and other related costs; and gain on sale of marketable securities; (ii) less
property additions. For a reconciliation of net cash provided from operating activities from continuing operations to Pre-Tax Unlevered
Free Cash Flow, see “Item 6. Selected Financial Data” in our Annual Report on Form 10-K included in this annual report to stockholders.
2,031 2,105 2,214 2,293 2,457
354 397 413 450 557
17%
19% 19%
20%
23%
Revenue Adjusted EBITDA¹Growth in new services driven
by innovation at Terminix
Continued development of direct-
to-consumer channel at AHS
Successful acquisition and
integration of HSA Home Warranty
Cost rationalization and supply
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Over $800 million debt reduction
2014 Highlights
$ Millions $ Millions Adj. EBITDA Margin2
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
2014 2013 Change
Operating Results
Revenue $2,457 $2,293 7%
Net Loss (57) (507)
Adjusted Net Income3 167 82
Adjusted EBITDA1 557 450 24%
Diluted earnings per share4 1.47 0.89
Financial Position
Total Assets 5,134 5,905
Total Debt 3,056 3,906
Shareholder Equity 359 23
Cash Flows
Cash provided from operating activities 253 208 22%
Pre-Tax Unlevered Free Cash Flow5 525 428 23%
(In millions, except per-share data)
As of and for the years ending December 31,