American Home Shield 2015 Annual Report Download - page 3

Dear Investors, Customers, Employees
and Franchisees,
On behalf of our 13,000 employees, I’m proud to share
our 2015 Annual Report and highlight some of the stories
that drove our success in the past year, culminating in a
spot among Fortune magazine’s World’s Most Admired
Companies. I’m also excited to introduce our new
corporate brand, which we believe represents a stamp
of quality along with a culture of service excellence and
customer convenience that makes ServiceMaster a
leader in essential residential and commercial services.
Among our 2015 accomplishments, we:
• Continued strong nancial performance –
Revenue grew 6 percent and Adjusted EBITDA grew
12 percent, marking seven consecutive quarters
of earnings growth since the company went public
in 2014. Driving our results were American Home
Shield, which achieved double-digit revenue growth,
and Terminix, which surpassed $100 million in
revenue from its new service offerings, including
mosquito control, wildlife exclusion, insulation and
encapsulation.
• Expanded prot margins – We expanded Adjusted
EBITDA margins by 130 basis points through
improved productivity, operational excellence and
supply chain management, while adjusted earnings
per share rose 23 percent, to $1.80.
• Increased free cash ow – Our company generated
$358 million in free cash ow, a 31 percent increase
over the previous year, which allowed us to continue
to pay down debt and re-invest in growth. As of
year-end, we had eliminated $1.1 billion in debt in
18 months and used a highly favorable interest rate
climate to improve our overall capital structure.
• Introduced ServSmart – Our new business
approach emphasizes speed and convenience, and
puts digital-mobile technology in the hands of our
employees, franchisees and customers. ServSmart
will enable us to integrate digital technology with our
unmatched team of trusted experts who visit 75,000
homes and businesses each day.
In 2015, we also realized we needed to energize our
corporate brand and shape a new story we can easily
tell to customers, investors and employees. We weren’t
seeking just a new logo. We needed a new brand
purpose that reects our vision: to be the number one
choice of customers for essential services through
empowered people and convenient access. Our new
brand purpose comes down to two important pillars:
• We instill trust… We’re dependable. We’re experts.
We’re accountable.
• We drive empowerment… We’re responsive.
We’re accessible. We’re respectful.
Our new brand tells the story of a company that’s agile,
thinking digital rst and reinventing the way customers
choose residential and commercial services. Of course,
we can only create shareholder and customer value
when we live up to our brand purpose – and make it easy
and convenient for customers to nd us, buy from us and
stay with us.
Thanks again for your condence in our leadership team
and in ServiceMaster. We’re focused on serving our
customers and growing our business; and together,
we’re building a new ServiceMaster that’s driven to win
for the long run.
Regards,
Rob Gillette,
Chief Executive Ofcer
Message from the CEO
2015 Annual Report 1