Company Quick10K Filing
ServiceMaster
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 136 $7,173
10-Q 2019-11-06 Quarter: 2019-09-30
10-Q 2019-08-06 Quarter: 2019-06-30
10-Q 2019-05-08 Quarter: 2019-03-31
10-K 2019-03-01 Annual: 2018-12-31
10-Q 2018-11-07 Quarter: 2018-09-30
10-Q 2018-08-01 Quarter: 2018-06-30
10-Q 2018-05-02 Quarter: 2018-03-31
10-K 2018-02-28 Annual: 2017-12-31
10-Q 2017-08-01 Quarter: 2017-06-30
10-Q 2017-04-28 Quarter: 2017-03-31
10-K 2017-02-24 Annual: 2016-12-31
10-Q 2016-10-28 Quarter: 2016-09-30
10-Q 2016-07-28 Quarter: 2016-06-30
10-Q 2016-05-05 Quarter: 2016-03-31
10-K 2016-02-26 Annual: 2015-12-31
10-Q 2015-11-03 Quarter: 2015-09-30
8-K 2020-01-21 Earnings, Officers, Other Events, Exhibits
8-K 2019-12-04 Other Events, Exhibits
8-K 2019-11-05 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-11-05 Earnings, Regulation FD, Exhibits
8-K 2019-10-22 Earnings, Officers, Regulation FD, Exhibits
8-K 2019-09-09 Regulation FD, Exhibits
8-K 2019-08-06 Earnings, Exhibits
8-K 2019-07-29 Officers, Exhibits
8-K 2019-05-13 Other Events, Exhibits
8-K 2019-05-13 Other Events, Exhibits
8-K 2019-05-07 Officers
8-K 2019-05-07 Earnings, Exhibits
8-K 2019-05-01 Officers, Shareholder Vote, Regulation FD, Exhibits
8-K 2019-03-27 Leave Agreement, Other Events
8-K 2019-03-12 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-02-26 Earnings, Regulation FD, Exhibits
8-K 2018-12-19 Regulation FD
8-K 2018-12-11 Regulation FD, Exhibits
8-K 2018-11-06 Earnings, Exhibits
8-K 2018-10-03 Regulation FD, Exhibits
8-K 2018-09-28 Enter Agreement, M&A, Officers, Exhibits
8-K 2018-09-10 Regulation FD, Exhibits, Regulation FD
8-K 2018-08-27 Other Events, Exhibits
8-K 2018-08-16 Enter Agreement, Leave Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K 2018-08-15 Regulation FD, Exhibits
8-K 2018-08-02 Regulation FD
8-K 2018-08-01 Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K 2018-07-31 Earnings, Exhibits
8-K 2018-07-17 Earnings, Exhibits
8-K 2018-05-29 Officers
8-K 2018-05-03 Regulation FD, Exhibits
8-K 2018-05-01 Earnings, Exhibits
8-K 2018-04-27 Shareholder Vote
8-K 2018-04-09 Officers, Exhibits
8-K 2018-03-30 Regulation FD, Exhibits
8-K 2018-03-26 Officers, Exhibits
8-K 2018-02-27 Earnings, Exhibits
8-K 2018-02-21 Other Events
8-K 2018-01-10 Officers
SERV 2019-09-30
Part I. Financial Information
Item 1. Financial Statements
Note 1. Basis of Presentation
Note 2. Significant Accounting Policies
Note 3. Revenues
Note 4. Restructuring and Other Charges
Note 6. Commitments and Contingencies
Note 7. Goodwill and Intangible Assets
Note 8. Stock-Based Compensation
Note 9. Comprehensive Income
Note 10. Supplemental Cash Flow Information
Note 11. Cash and Marketable Securities
Note 12. Long-Term Debt
Note 13. Leases
Note 14. Acquisitions
Note 15. Income Taxes
Note 16. Business Segment Reporting
Note 17. Fair Value Measurements
Note 18. Earnings per Share
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Registered Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 serv-20190930xex31_1.htm
EX-31.2 serv-20190930xex31_2.htm
EX-32.1 serv-20190930xex32_1.htm
EX-32.2 serv-20190930xex32_2.htm

ServiceMaster Earnings 2019-09-30

SERV 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
BFAM 8,832 3,193 2,315 1,980 500 172 380 9,856 25% 26.0 5%
SCI 8,410 13,360 11,616 3,210 759 414 898 11,791 24% 13.1 3%
SERV 7,173 4,806 2,477 1,393 616 -48 212 8,109 44% 38.3 -1%
TAL 6,605 3,735 1,205 0 0 0 0 5,342 0%
LOPE 5,652 1,678 350 747 0 234 321 5,794 0% 18.0 14%
HRB 4,859 3,110 2,819 3,100 1,335 425 727 5,694 43% 7.8 14%
CHGG 4,690 1,416 956 361 275 -15 -12 4,133 76% -337.4 -1%
STRA 3,904 1,785 347 980 0 101 247 3,528 0% 14.3 6%
LAUR 3,851 7,092 3,972 3,324 608 1,239 1,549 4,855 18% 3.1 17%
SE 3,774 2,193 2,432 0 0 0 0 2,516 0%

serv-20190930x10q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

________________________________________________

FORM 10-Q

________________________________________________

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

or

o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-36507

________________________________________________

ServiceMaster Global Holdings, Inc.

(Exact name of registrant as specified in its charter)

Delaware

20-8738320

(State or other jurisdiction of incorporation or organization)

(IRS Employer Identification No.)

150 Peabody Place, Memphis, Tennessee 38103

(Address of principal executive offices) (Zip Code)

901-597-1400

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer x

Accelerated Filer o

Non-Accelerated Filer o

Smaller Reporting Company o

Emerging Growth Company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No x

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common, par value $0.01

SERV

NYSE

The number of shares of the registrant’s common stock outstanding as of October 31, 2019: 135,618,768 shares of common stock, par value $0.01 per share.

 

 


TABLE OF CONTENTS

Page
No.

Part I. Financial Information

Item 1. Financial Statements (Unaudited)

Condensed Consolidated Statements of Operations and Comprehensive Income

3

Condensed Consolidated Statements of Financial Position

4

Condensed Consolidated Statements of Stockholders’ Equity

5

Condensed Consolidated Statements of Cash Flows

6

Notes to Condensed Consolidated Financial Statements

7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

29

Item 3. Quantitative and Qualitative Disclosures About Market Risk

47

Item 4. Controls and Procedures

47

Part II. Other Information

48

Item 1. Legal Proceedings

48

Item 1A. Risk Factors

48

Item 2. Unregistered Sales of Registered Securities and Use of Proceeds

49

Item 6. Exhibits

49

Signature

51

 

 

2


PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)

(In millions, except per share data)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2019

2018

2019

2018

Revenue

$

528

$

496

$

1,570

$

1,443

Cost of services rendered and products sold

305

278

869

776

Selling and administrative expenses

149

146

436

417

Amortization expense

7

6

19

14

Acquisition-related costs

8

1

12

2

Fumigation related matters

1

1

Restructuring and other charges

5

1

15

13

Realized (gain) on investment in frontdoor, inc.

(40)

Interest expense

19

33

64

107

Interest and net investment income

(1)

(3)

(5)

(4)

Loss on extinguishment of debt

10

6

10

Income from Continuing Operations before Income Taxes

35

25

193

107

Provision for income taxes

9

7

39

32

Income from Continuing Operations

26

18

155

74

Gain (loss) from discontinued operations, net of income taxes

53

(1)

133

Net Income

$

25

$

71

$

154

$

207

Total Comprehensive Income

$

18

$

74

$

141

$

224

Weighted-average common shares outstanding - Basic

135.8

135.6

135.9

135.4

Weighted-average common shares outstanding - Diluted

136.5

136.0

136.5

135.8

Basic Earnings Per Share:

Income from Continuing Operations

$

0.19

$

0.13

$

1.14

$

0.55

Gain (loss) from discontinued operations, net of income taxes

0.39

0.98

Net Income

0.19

0.52

1.13

1.53

Diluted Earnings Per Share:

Income from Continuing Operations

$

0.19

$

0.13

$

1.13

$

0.55

Gain (loss) from discontinued operations, net of income taxes

0.39

0.98

Net Income

0.19

0.52

1.13

1.52

See accompanying Notes to the unaudited Condensed Consolidated Financial Statements

3


Condensed Consolidated Statements of Financial Position (Unaudited)

(In millions, except share data)

As of

As of

September 30,

December 31,

2019

2018

Assets:

Current Assets:

Cash and cash equivalents

$

140

$

224

Investment in frontdoor, inc.

445

Receivables, less allowances of $24 and $21, respectively

214

186

Inventories

45

45

Prepaid expenses and other assets

72

61

Total Current Assets

470

962

Other Assets:

Property and equipment, net

208

201

Operating lease right-of-use assets

98

Goodwill

2,206

1,956

Intangible assets, primarily trade names, service marks and trademarks, net

1,718

1,588

Restricted cash

89

89

Notes receivable

47

43

Long-term marketable securities

19

21

Deferred customer acquisition costs

103

77

Other assets

60

87

Total Assets

$

5,017

$

5,023

Liabilities and Stockholders' Equity:

Current Liabilities:

Accounts payable

$

129

$

89

Accrued liabilities:

Payroll and related expenses

61

60

Self-insured claims and related expenses

48

58

Accrued interest payable

21

14

Other

72

61

Deferred revenue

99

95

Current portion of lease liability

18

Current portion of long-term debt

56

49

Total Current Liabilities

505

425

Long-Term Debt

1,398

1,727

Other Long-Term Liabilities:

Deferred taxes

507

484

Other long-term obligations, primarily self-insured claims

158

182

Long-term lease liability

113

Total Other Long-Term Liabilities

778

666

Commitments and Contingencies (Note 6)

 

 

Stockholders' Equity:

Common stock $0.01 par value (authorized 2,000,000,000 shares with 147,841,177 shares issued and 135,705,232 outstanding at September 30, 2019 and 147,209,928 shares issued and 135,687,558 outstanding at December 31, 2018)

2

2

Additional paid-in capital

2,330

2,309

Retained Earnings

313

156

Accumulated other comprehensive (loss) income

(8)

5

Less common stock held in treasury, at cost (12,135,945 shares at September 30, 2019 and 11,552,370 shares at December 31, 2018)

(300)

(267)

Total Stockholders' Equity

2,337

2,204

Total Liabilities and Stockholders' Equity

$

5,017

$

5,023

See accompanying Notes to the unaudited Condensed Consolidated Financial Statements


4


Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

(In millions)

Retained

Accumulated

Additional

Earnings

Other

Common

Paid-in

(Accumulated

Comprehensive

Treasury

Total

Shares

Stock

Capital

Deficit)

(Loss) Income

Shares

Amount

Equity

Balance December 31, 2017

147

$

2

$

2,321

$

(895)

$

5

(12)

$

(267)

$

1,167

Net income

40

40

Other comprehensive income, net of tax

10

10

Total comprehensive income

40

10

50

Cumulative effect of accounting changes