American Home Shield 2014 Annual Report Download - page 4

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in our call centers, contractor/technician routing
and scheduling and online self-service capabilities
improved our customer experience. However, we
continue to rigorously review our business processes
and benchmark ourselves both internally and against
industry best practices.
A successful IPO – With our IPO that closed on July 1,
2014, ServiceMaster sold 41.3 million shares and raised
over $700 million in cash that was primarily used to pay
down debt. But more importantly, the months following
the IPO marked a new chapter in the company’s
narrative. By the end of 2014, buoyed by strong
performance over the second half of the year, our share
price rose 57 percent between June 26 and December
31, 2014 and showed strength into early 2015.
As we consider the new ServiceMaster, it’s worth
remembering the fundamentals of our business. Over
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averaged 5 percent annual revenue growth and 10
percent annual Adjusted EBITDA growth. By virtue
of our essential, value-added services, we’re able
to achieve high customer retention and a recurring
revenue stream. We’re not a referral service but a
network of professionals who actually perform the work,
backed by service guarantees.
Demographic trends offer attractive prospects for
growth and market expansion. An aging baby boomer
population, coupled with a generation of millennials just
entering home ownership, have spawned an entire era
of “do-it-for-me” consumers. Their desire to outsource
many of their residential services has created an
opportunity for us to increase household penetration and
grow market share. In our commercial businesses, like
disaster restoration, janitorial services and pest control,
we have decades of expertise in providing customized
solutions for customers ranging from small business
owners to multi-location national accounts. Our goal is to
help keep their businesses operating smoothly – or get
them up and running again as quickly as possible.
Our vision is to be the leading provider of essential
residential and commercial services through
empowered people, world-class customer service and
convenient mobile access. In order to live up to our
name, we want to be easy to work with – available when
and where our customers need us. As a result, we’re
investing in mobile and online technology to simplify
transactions, scheduling, billing and payment and
improve customer communication.
We know you’ll hold us accountable for service and
results that will match up to or exceed our competitors’
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truly world-class, ServiceMaster must be a reliable and
predictable company, both in our customer service and
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opportunities and bring new solutions to our customers
to add value, and protect and maintain their homes
and businesses.
We believe we’re on the right path. We have great
businesses and strong brands. We have passionate
employees, franchisees, contractors and technicians
who want to do the right thing for our customers. Thanks
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ServiceMaster. When we stay focused on our customers
and our business, we all win and, more importantly, live
our legacy. I’m looking forward to building something
bigger and better together.
Best regards,
Rob Gillette
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2 ServiceMaster | 2014 Annual Report