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Rentokil raised its synergies expectations from the Terminix acquisition and laid out new plans for North America, aiming to achieve full-year revenue growth there of 2%-4%.
NEW YORK, May 9, 2022 /PRNewswire/ -- Halper Sadeh LLP, an investor rights law firm, is investigating the following companies for potential violations of the federal securities laws and/or breaches of fiduciary duties to shareholders relating to: Terminix Global Holdings, Inc. (NYSE: TMX) concerning potential violations of the federal securities laws and/or breaches of fiduciary duties relating to its sale to Rentokil Initial plc. If you are a Terminix shareholder, click here to learn more about your rights and options.
Terminix Global Holdings Inc. TMX, -3.34% shares rose 1% in premarket trades on Monday after the company said it sold its pest management units in Norway and the U.K. to unnamed buyers in order to close its pending $6.7 billion acquisition of Rentokil Initial Plc. Terminix said it will book a loss on the sale of the assets, which were seen generating a combined $60 million in revenue for 2022.
Terminix Global Holdings, Inc. (NYSE:TMX ) Q1 2022 Earnings Conference Call May 5, 2022 4:30 PM ET Company Participants Jesse Jenkins - VP, IR, FP&A & Treasurer Brett Ponton - CEO Bob Riesbeck - EVP & CFO Conference Call Participants Tim Mulrooney - William Blair Ashish Sabadra - RBC Capital Markets George Tong - Goldman Sachs Brian Butler - Stifel Operator Ladies and gentlemen, welcome to the Terminix First Quarter 2022 Earnings Call. Today's call is being recorded and broadcast on the Internet.
Terminix Global Holdings, Inc. (TMX) delivered earnings and revenue surprises of 6.06% and 1.05%, respectively, for the quarter ended March 2022. Do the numbers hold clues to what lies ahead for the stock?
MEMPHIS, Tenn.--(BUSINESS WIRE)--Terminix Global Holdings, Inc. (NYSE: TMX), a leading provider of essential termite and pest management services to residential and commercial customers, today announced unaudited first-quarter 2022 results. For the first quarter of 2022, the Company reported a year-over-year revenue increase of five percent to $496 million. Net income for the quarter decreased year-over-year by $8 million to $19 million, or $0.15 per share. Adjusted EBITDA(1) for the quarter decreased year-over-year by $4 million to $86 million, and Adjusted Net Income(2) for the quarter increased by $3 million year-over-year to $42 million, or $0.35 per share. “We are encouraged by the positive momentum in our residential business,” said Terminix CEO Brett Ponton. “Unit growth in termite and strong price realization across all channels offset expected inflationary pressures in fuel, labor and materials in the quarter. Key investments in labor and staffing levels aided the first quarter and will support growth in the coming quarters. Commercial pest continues to improve, and with strong sales and improved retention rates in the quarter, is poised for growth in the back half of the year.” “We continue to make progress on the Terminix Way initiative,” continued Ponton. “We recently launched a pilot featuring enhanced training and onboarding for route technician and improved home inspection procedures that will enable a deeper relationship with our customers. We continue to target completion of the Rentokil merger by the end of the third quarter of 2022 and are making good progress on integration planning across both the front-line and back-office functions of our businesses.” Consolidated Performance Three Months Ended March 31, $ millions 2022 2021 B/(W) Revenue $ 496 $ 471 $ 25 YoY growth 5 % Gross Margin 200 202 (2) % of revenue 40.3 % 42.8 % (2.5) pts SG&A 138 137 2 % of revenue (27.9) % (29.0) % 1.1 pts Income before Income Taxes 21 37 (16) % of revenue 4.2 % 7.8 % (3.7) pts Net Income 19 27 (8) % of revenue 3.8 % 5.7 % (1.9) pts Adjusted Net Income(2) 42 39 3 % of revenue 8.5 % 8.4 % 0.1 pts Adjusted EBITDA(1) 86 90 (4) % of revenue 17.3 % 19.1 % (1.8) pts Net Cash Provided from Operating Activities from Continuing Operations 69 75 (6) Free Cash Flow(3) 62 69 (7) Reconciliations of Net Income to Adjusted Net Income and Adjusted EBITDA, as well as a reconciliation of Net Cash Provided from Operating Activities from Continuing Operations to Free Cash Flow, are set forth below in this press release. First-Quarter Performance Revenue Three Months Ended March 31, (In millions) 2022 2021 Growth Organic Acquired Residential Pest Management $ 175 $ 166 $ 9 5 % $ 7 4 % $ 2 1 % Commercial Pest Management 132 129 3 2 % (1) (1) % 5 4 % Termite and Home Services 171 162 10 6 % 9 6 % — — % Sales of Products and Other 18 15 3 18 % 3 18 % — — % Total revenue $ 496 $ 471 $ 25 5 % $ 18 4 % $ 6 1 % In the first quarter of 2022, Terminix reported five percent year-over-year revenue growth and four percent organic revenue growth.(4) Termite and Home Service growth was six percent, predominantly all of which was organic growth. Termite completions increased 13 percent, driven by sales of our monthly pay tiered termite product. Home services, which are managed as a component of our termite line of business and include wildlife exclusion, crawl space encapsulation and attic insulation, revenue growth was 19 percent, primarily as a result of improved cross selling to existing customers. Termite renewals decreased one percent, due to lower volume, partially offset by improved price realization. Residential pest management revenue growth was five percent, reflecting organic revenue growth of four percent. Organic revenue growth was driven by higher mosquito and bedbug sales volume, improved trailing 12-month customer retention rates and improved price realization. Residential pest management revenue also increased one percent from acquisitions completed in the last 12 months. Commercial pest management revenue growth was two percent. The organic revenue decline of one percent was driven by a reduction in one-time services including more than $1 million of disinfection revenue in the prior year, partially offset by improved price realization. International pest revenue was negatively impacted by over $1 million of foreign currency. Excluding the impact of foreign currency and disinfection revenue, commercial pest organic growth would have been two percent. Commercial pest management revenue also increased four percent from acquisitions completed in the last 12 months. Sales of products and other revenue growth was 18 percent due to increased chemical demand as we lap the impacts of COVID-19 on three months ended March 31, 2021 revenue. Adjusted EBITDA Adjusted EBITDA was $86 million for the first quarter, a year-over-year decrease of $4 million. The impact on Adjusted EBITDA from higher revenue was $13 million. Investments in labor increased $6 million, primarily due to higher trainee and talent acquisition expense as we increase our workforce for peak season. Vehicle fuel increased $2 million year over year, driven by higher fuel prices. Termite damage claims expenses increased $3 million due to higher litigated claims counts in the Mobile Bay Area as well as higher cost per Non-Litigated Claim due, in part, to inflationary pressure on building materials and contractor costs. Investments in Terminix Way increased $1 million as we continue to roll-out enhanced onboarding, training and technology to our technicians. Investments in staffing levels and training in both sales and service in our call center increased $3 million. Travel expenses increased $1 million due to the easing of COVID-19 travel restrictions. Liquidity and Free Cash Flow The Company ended the first quarter with $170 million in available cash and access to $348 million under its revolving credit facility for total liquidity of $518 million. First-quarter 2022 free cash flow was $62 million, with a free cash flow to Adjusted EBITDA conversion rate(5) of 73 percent. Given the proposed acquisition by Rentokil, we do not intend to repurchase shares of our common stock in the foreseeable future. Update on Proposed Acquisition by Rentokil As announced on March 15, 2022, the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired, thereby completing the necessary antitrust process in the US. A number of other conditions remain to be satisfied, including obtaining approval by the Company’s and Rentokil’s shareholders, and the registration of Rentokil’s American depository shares with the U.S. Securities and Exchange Commission and their listing on the New York Stock Exchange. With good progress being made on satisfying the remaining conditions, both parties continue to be on track to complete the transaction in the second half of 2022, with a target completion date towards the end of the third quarter. Full-Year 2022 Outlook Due to the proposed acquisition by Rentokil, the Company does not plan to provide its customary full-year 2022 revenue, Adjusted EBITDA, organic growth or free cash flow conversion guidance. First-Quarter 2022 Earnings Conference Call The Company will hold a conference call to discuss its financial and operating results at 8 a.m. central time (9 a.m. eastern time) on Thursday, May 5, 2022. The Company invites all interested parties to join Chief Executive Officer Brett Ponton, Executive Vice President and Chief Financial Officer Bob Riesbeck, and Vice President of Investor Relations, FP&A and Treasurer Jesse Jenkins for an update on the Company's operational performance and financial results for the first-quarter ended 2022. Participants may join this conference call by dialing 877.256.3294 (or international participants, +1.303.223.0120). Additionally, the conference call will be available via webcast. A slide presentation highlighting the Company’s results will also be available. To participate via webcast and view the presentation, visit the Company’s investor relations home page at investors.terminix.com. The call will be available for replay until June 4, 2022. To access the replay of this call, please call 800.633.8284 and enter reservation number 22017423 (international participants: +1.402.977.9140, reservation number 22017423). The webcast will also be available on the company’s investor relations home page. About Terminix Terminix Global Holdings (NYSE: TMX) is a leading provider of residential and commercial pest control. The Company provides pest management services and protection against termites, mosquitoes, rodents and other pests. Headquartered in Memphis, Tenn., with more than 11,500 teammates and 2.9 million customers in 24 countries and territories, the Company visits more than 50,000 homes and businesses every day. To learn more about Terminix, visit Terminix.com, or LinkedIn.com/company/terminix. Additional Information About The Proposed Transaction And Where To Find It In connection with the proposed transaction between Rentokil and Terminix, Rentokil will file with the U.S. Securities and Exchange Commission (the “SEC”) a registration statement on Form F-4, which will include a proxy statement of Terminix that also constitutes a prospectus of Rentokil. Each of Rentokil and Terminix will also file other relevant documents in connection with the proposed transaction. The definitive proxy statement/prospectus will be sent to the shareholders of Terminix. Rentokil will also file a shareholder proxy circular in connection with the proposed transaction with applicable securities regulators in the United Kingdom and the shareholder proxy circular will be sent to Rentokil’s shareholders. This press release is not a substitute for any registration statement, proxy statement/prospectus or other documents Rentokil and/or Terminix may file with the SEC in connection with the proposed transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS, INVESTORS, STOCKHOLDERS AND SHAREHOLDERS OF TERMINIX AND RENTOKIL ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THE PROXY STATEMENT/PROSPECTUS AND SHAREHOLDER PROXY CIRCULAR, AS APPLICABLE, AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC OR APPLICABLE SECURITIES REGULATORS IN THE UNITED KINGDOM, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, IN CONNECTION WITH THE PROPOSED TRANSACTION WHEN THEY BECOME AVAILABLE, AS THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT TERMINIX, RENTOKIL, THE PROPOSED TRANSACTION AND RELATED MATTERS. The registration statement and proxy statement/prospectus and other documents filed by Rentokil and Terminix with the SEC, when filed, will be available free of charge at the SEC’s website at www.sec.gov. In addition, investors and shareholders will be able to obtain free copies of the proxy statement/prospectus and other documents filed with the SEC by Terminix online at investors.terminix.com, upon written request delivered to Terminix at 150 Peabody Pl., Memphis, TN 38103, USA, Attention: Corporate Secretary, or by calling Terminix’s Corporate Secretary’s Office by telephone at +1 901-597-1400 or by email at deidre.richardson@terminix.com, and will be able to obtain free copies of the registration statement, proxy statement/prospectus, shareholder proxy circular and other documents which will be filed with the SEC and applicable securities regulators in the United Kingdom by Rentokil online at https://www.rentokil-initial.com, upon written request delivered to Rentokil at Compass House, Manor Royal, Crawley, West Sussex, RH10 9PY, England, Attention: Katharine Rycroft, or by calling Rentokil by telephone at +44 (0) 7811 270734 or by email at katharine.rycroft@rentokil-initial.com. This press release is for informational purposes only and is not intended to, and shall not, constitute an offer to sell or buy or the solicitation of an offer to sell or buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to appropriate registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended. Participants in the Solicitation of Proxies This press release is not a solicitation of proxies in connection with the proposed transaction. However, under SEC rules, Terminix, Rentokil, and certain of their respective directors, executive officers and other members of the management and employees may be deemed to be participants in the solicitation of proxies in connection with the proposed transaction. Information about Terminix’s directors and executive officers may be found on its website at corporate.terminix.com/responsibility/corporate-governance and in its 2021 Annual Report on Form 10-K filed with the SEC on March 1, 2022, available at investors.terminix.com and www.sec.gov. Information about Rentokil’s directors and executive officers may be found on its website at https://www.rentokil-initial.com and in its 2021 Annual Report filed with applicable securities regulators in the United Kingdom on March 30, 2022, available on its website at https://www.rentokil-initial.com. These documents can be obtained free of charge from the sources indicated above. Additional information regarding the interests of such potential participants in the solicitation of proxies in connection with the proposed transaction will be included in the proxy statement/prospectus and shareholder proxy circular and other relevant materials filed with the SEC and applicable securities regulators in the United Kingdom when they become available. Information Regarding Forward-Looking Statements This press release contains forward-looking statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements can sometimes be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “shall,” “should,” “would,” “could,” “potential,” “seeks,” “aims,” “projects,” “predicts,” “is optimistic,” “intends,” “plans,” “estimates,” “targets,” “anticipates,” “continues” or other comparable terms or negatives of these terms, but not all forward-looking statements include such identifying words. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. We can give no assurance that such plans, estimates or expectations will be achieved and therefore, actual results may differ materially from any plans, estimates or expectations in such forward-looking statements. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include: a condition to the closing of the proposed transaction may not be satisfied; the occurrence of any event that can give rise to termination of the proposed transaction; Rentokil is unable to achieve the synergies and value creation contemplated by the proposed transaction; Rentokil is unable to promptly and effectively integrate Terminix’s businesses; management’s time and attention is diverted on transaction related issues; disruption from the proposed transaction makes it more difficult to maintain business, contractual and operational relationships; the credit ratings of Rentokil declines following the proposed transaction; legal proceedings are instituted against Terminix or Rentokil; Terminix or Rentokil is unable to retain or hire key personnel; the announcement or the consummation of the proposed acquisition has a negative effect on the market price of the capital stock of Terminix or Rentokil or on Terminix’s or Rentokil’s operating results; evolving legal, regulatory and tax regimes; changes in economic, financial, political and regulatory conditions, in the United Kingdom, the United States and elsewhere, and other factors that contribute to uncertainty and volatility, natural and man-made disasters, civil unrest, pandemics (e.g., the coronavirus (COVID-19) pandemic (the “COVID-19 pandemic”)), geopolitical uncertainty, and conditions that may result from legislative, regulatory, trade and policy changes associated with the current or subsequent U.S. or U.K. administration; the ability of Rentokil or Terminix to successfully recover from a disaster or other business continuity problem due to a hurricane, flood, earthquake, terrorist attack, war, pandemic, security breach, cyber-attack, power loss, telecommunications failure or other natural or man-made event, including the ability to function remotely during long-term disruptions such as the COVID-19 pandemic; the impact of public health crises, such as pandemics (including the COVID-19 pandemic) and epidemics and any related company or governmental policies and actions to protect the health and safety of individuals or governmental policies or actions to maintain the functioning of national or global economies and markets, including any quarantine, “shelter in place,” “stay at home,” workforce reduction, social distancing, shut down or similar actions and policies; actions by third parties, including government agencies; the risk that disruptions from the proposed transaction will harm Rentokil’s or Terminix’s business, including current plans and operations; certain restrictions during the pendency of the acquisition that may impact Rentokil’s or Terminix’s ability to pursue certain business opportunities or strategic transactions; Rentokil’s or Terminix’s ability to meet expectations regarding the accounting and tax treatments of the proposed transaction; the risks and uncertainties discussed in the “Risks and Uncertainties” section in Rentokil’s reports available on the National Storage Mechanism at morningstar.co.uk/uk/NSM and on its website at https://www.rentokil-initial.com; and the risks and uncertainties discussed in the “Risk Factors” and “Information Regarding Forward-Looking Statements” sections in Terminix’s reports filed with the SEC. These risks, as well as other risks associated with the proposed transaction, will be more fully discussed in the proxy statement/prospectus and shareholder proxy circular. While the list of factors presented here is, and the list of factors to be presented in proxy statement/prospectus and shareholder proxy circular will be, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. We caution you not to place undue reliance on any of these forward-looking statements as they are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of new markets or market segments in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this press release. Neither Rentokil nor Terminix assumes any obligation to update or revise the information contained herein, which speaks only as of the date hereof. Non-GAAP Financial Measures This press release contains certain non-GAAP financial measures. Non-GAAP measures should not be considered as an alternative to GAAP financial measures. Non-GAAP measures may not be calculated like or comparable to similarly titled measures of other companies. See non-GAAP reconciliations below in this press release for a reconciliation of these measures to the most directly comparable GAAP financial measures. Adjusted EBITDA, Adjusted Net Income, Adjusted earnings per share, free cash flow, free cash flow to Adjusted EBITDA conversion rate and organic revenue growth are not measurements of the Company’s financial performance under GAAP and should not be considered as an alternative to net income, net cash provided by operating activities from continuing operations, net earnings from discontinued operations or any other performance or liquidity measures derived in accordance with GAAP. Management uses these non-GAAP financial measures to facilitate operating performance and liquidity comparisons, as applicable, from period to period. We believe these non-GAAP financial measures are useful for investors, analysts and other interested parties as they facilitate company-to-company operating performance and liquidity comparisons, as applicable, by excluding potential differences caused by variations in capital structures, taxation, the age and book depreciation of facilities and equipment, restructuring initiatives and equity-based, long-term incentive plans. _______________________________________________ (1) Adjusted EBITDA is defined as net income before: depreciation and amortization expense; acquisition-related costs; non-cash stock-based compensation expense; restructuring and other charges; net earnings from discontinued operations; provision (benefit) for income taxes; and interest expense. The Company’s definition of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. (2) Adjusted Net Income is defined as net income before: amortization expense; acquisition-related costs; restructuring and other charges; net earnings from discontinued operations; and the tax impact of the aforementioned adjustments. The Company’s definition of Adjusted Net Income may not be comparable to similarly titled measures of other companies. Adjusted earnings per share is calculated as Adjusted Net Income divided by the weighted-average diluted common shares outstanding. (3) Free cash flow is defined as net cash provided from operating activities from continuing operations less property additions. (4) Organic revenue growth is defined as revenue excluding revenue from acquired customers for 12 months following the acquisition date. (5) Free cash flow to Adjusted EBITDA conversion rate is defined as free cash flow divided by Adjusted EBITDA. TERMINIX GLOBAL HOLDINGS, INC. Consolidated Statements of Operations and Comprehensive Income (Unaudited) (In millions, except per share data) Three Months Ended March 31, 2022 2021 Revenue $ 496 $ 471 Cost of services rendered and products sold 296 270 Selling and administrative expenses 138 137 Amortization expense 10 10 Acquisition-related costs — 1 Restructuring and other charges 19 6 Interest expense 11 12 Interest and net investment income 1 (1 ) Income before Income Taxes 21 37 Provision for income taxes 3 11 Equity in earnings of joint ventures 1 — Net Income $ 19 $ 27 Other Comprehensive Income, Net of Income Taxes: Net unrealized gains on derivative instruments 23 14 Foreign currency translation gain 5 8 Other Comprehensive Income, Net of Income Taxes 28 22 Total Comprehensive Income $ 47 $ 49 Weighted-average common shares outstanding - Basic 121.4 131.4 Weighted-average common shares outstanding - Diluted 121.6 131.9 Basic Earnings Per Share: Net Income 0.15 0.20 Diluted Earnings Per Share: Net Income 0.15 0.20 TERMINIX GLOBAL HOLDINGS, INC. Consolidated Statements of Financial Position (In millions, except share data) (Unaudited) As of As of March 31, December 31, 2022 2021 Assets: Current Assets: Cash and cash equivalents $ 170 $ 116 Receivables, less allowances of $30 and $32, respectively 195 206 Inventories 44 41 Prepaid expenses and other assets 164 151 Total Current Assets 573 514 Other Assets: Property and equipment, net 192 196 Operating lease right-of-use assets 74 79 Goodwill 2,210 2,211 Intangible assets, primarily trade names, service marks and trademarks, net 1,085 1,097 Restricted cash 89 89 Notes receivable 38 36 Long-term marketable securities 14 15 Deferred customer acquisition costs 94 98 Other assets 126 77 Total Assets $ 4,495 $ 4,410 Liabilities and Stockholders' Equity: Current Liabilities: Accounts payable $ 105 $ 85 Accrued liabilities: Payroll and related expenses 69 81 Self-insured claims and related expenses 67 72 Accrued interest payable 3 7 Other 101 95 Deferred revenue 108 103 Current portion of lease liability 18 18 Current portion of long-term debt 77 50 Total Current Liabilities 547 511 Long-Term Debt 848 849 Other Long-Term Liabilities: Deferred taxes 398 387 Other long-term obligations, primarily self-insured claims 182 197 Long-term lease liability 92 92 Total Other Long-Term Liabilities 672 677 Stockholders' Equity: Common stock $0.01 par value (authorized 2,000,000,000 shares with 149,330,124 shares issued and 121,493,685 outstanding at March 31, 2022 and 149,095,168 shares issued and 121,258,729 outstanding shares outstanding at December 31, 2021) 2 2 Additional paid-in capital 2,398 2,391 Retained Earnings 986 967 Accumulated other comprehensive income (loss) 6 (22 ) Less common stock held in treasury, at cost (27,836,439 shares at March 31, 2022 and 27,836,439 shares at December 31, 2021) (964 ) (964 ) Total Stockholders' Equity 2,428 2,375 Total Liabilities and Stockholders' Equity $ 4,495 $ 4,410 TERMINIX GLOBAL HOLDINGS, INC. Consolidated Statements of Cash Flows (Unaudited) (In millions) Three Months Ended March 31, 2022 2021 Cash and Cash Equivalents and Restricted Cash at Beginning of Period $ 205 $ 704 Cash Flows from Operating Activities Net Income 19 27 Equity in earnings of joint venture (1 ) — Depreciation expense 17 18 Amortization expense 10 10 Amortization of debt issuance costs 1 1 Amortization of lease right-of-use assets 4 4 Payments on fumigation related matters (3 ) — Deferred income tax provision 2 5 Stock-based compensation expense 6 6 Restructuring and other charges 19 6 Payments for restructuring and other charges (10 ) (2 ) Acquisition-related costs — 1 Payments for acquisition-related costs — (1 ) Other (1 ) 4 Change in working capital, net of acquisitions: Receivables 10 18 Inventories and other current assets (10 ) (14 ) Accounts payable 20 5 Deferred revenue 5 7 Accrued liabilities (14 ) (19 ) Accrued interest payable (4 ) (4 ) Current income taxes — 5 Net Cash Provided from Operating Activities 69 75 Cash Flows from Investing Activities Property additions (7 ) (6 ) Business acquisitions, net of cash acquired — (22 ) Origination of notes receivable (21 ) (15 ) Collections on notes receivable 18 17 Other investing (31 ) — Net Cash Used for Investing Activities (40 ) (26 ) Cash Flows from Financing Activities Borrowings of debt 80 — Payments of debt (65 ) (15 ) Repurchase of common stock — (169 ) Issuance of common stock and exercise of stock options 1 4 Net Cash Used For Financing Activities 16 (180 ) Cash Flows from Discontinued Operations: Cash provided from operating activities 9 — Net Cash Provided from Discontinued Operations 9 — Cash (Decrease) Increase During the Period 54 (131 ) Cash and Cash Equivalents and Restricted Cash at End of Period $ 258 $ 573 The following table presents reconciliations of net income to Adjusted Net Income: Three Months Ended March 31, (In millions) 2022 2021 Net Income $ 19 $ 27 Amortization expense 10 10 Acquisition-related costs — 1 Restructuring and other charges 19 6 Tax impact of adjustments (6 ) (4 ) Adjusted Net Income $ 42 $ 39 Weighted-average diluted common shares outstanding 121.6 131.9 Diluted earnings per share $ 0.15 $ 0.20 Adjusted diluted earnings per share $ 0.35 $ 0.30 The following table presents reconciliations of net cash provided from operating activities from continuing operations to free cash flow: Three Months Ended March 31, (In millions) 2022 2021 Net Cash Provided from Operating Activities from Continuing Operations $ 69 $ 75 Property additions (7 ) (6 ) Free Cash Flow $ 62 $ 69 The following table presents reconciliations of net income to Adjusted EBITDA. Three Months Ended March 31, (In millions) 2022 2021 Net Income $ 19 $ 27 Depreciation and amortization expense 28 28 Acquisition-related costs — 1 Non-cash stock-based compensation expense 6 6 Restructuring and other charges 19 6 Provision for income taxes 3 11 Interest expense 11 12 Adjusted EBITDA $ 86 $ 90
MEMPHIS, Tenn.--(BUSINESS WIRE)---- $TMX #ESG--Terminix Global Holdings, Inc. (NYSE: TMX), a leading provider of residential and commercial pest control, today confirmed its plan to release its unaudited first-quarter 2022 financial results after 6 a.m. central time (7 a.m. eastern time) on Thursday, May 5, 2022. The company will hold a conference call to discuss its financial and operating results at 8 a.m. central time (9 a.m. eastern time) on Thursday, May 5, 2022. The company invites all interested parti
Terminix Global Holdings (TMX) and Rentokol Initial are a step closer to their merger that will create a leader in the pest control business in North America.
Terminix Global Holdings, Inc. (TMX) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.
Terminix Global Holdings, Inc. (TMX) CEO Brett Ponton on Q4 2021 Results - Earnings Call Transcript
Terminix Global Holdings, Inc. (TMX) delivered earnings and revenue surprises of -9.09% and 0.42%, respectively, for the quarter ended December 2021. Do the numbers hold clues to what lies ahead for the stock?
MEMPHIS, Tenn.--(BUSINESS WIRE)--Terminix Global Holdings, Inc. (NYSE: TMX), a leading provider of essential termite and pest management services to residential and commercial customers, today announced unaudited fourth-quarter and full-year 2021 results. For the fourth quarter of 2021, the Company reported a year-over-year revenue increase of five percent to $484 million. Net income for the quarter decreased year-over-year by $484 million to $7 million, or $0.06 per share, primarily due to the gain from the sale of ServiceMaster Brands in the fourth-quarter 2020. Adjusted EBITDA(1) for the quarter increased year-over-year by $4 million to $73 million, and Adjusted Net Income(2) for the quarter decreased by $4 million year-over-year to $24 million, or $0.20 per share. For the full year ended 2021, the Company reported a revenue increase of four percent to $2,045 million. Net income decreased $425 million to $125 million, primarily due to the gain from the sale of ServiceMaster Brands in 2020. Adjusted EBITDA for the full year increased $42 million, or 12 percent, to $387 million and Adjusted Net Income increased $54 million, or 43 percent, to $180 million. “In the fourth quarter, we continued to build momentum in our residential business with improvements in digital marketing, staffing levels and pricing driving an acceleration in organic growth,” said Terminix CEO Brett Ponton. “We reported double-digit organic growth in termite and home service completions, seven percent growth in termite renewals and five percent growth in residential pest control while making solid progress on the CxP and Terminix Way initiatives. Adjusted EBITDA margin expansion in the quarter was highlighted by higher revenue contribution and fleet productivity offsetting investments in labor and strategic initiatives and increased medical costs from the lingering effects of the pandemic. We also delivered meaningful progress managing termite damage claims with the lowest new claims in a quarter since 2018.” “The new year is off to a strong start as we capitalize on the foundational improvements made during 2021,” Ponton continued. “Our strategic growth priorities for the year remain focused on improving teammate retention to drive customer retention, improving technician cross-selling capabilities to drive customer penetration and developing our digital marketing prowess to drive increased lead generation. CxP has been deployed in our southwest region and we are targeting a full Terminix Way pilot with enhanced standard operating procedures and training protocols in both the commercial and residential service lines in the next few months. While these operational initiatives remain the focus of our customer facing teammates, the back-office is also working closely with the Rentokil team on integration planning as we progress towards an anticipated second half of 2022 merger that will significantly enhance our commercial capabilities and accelerate the progress already well underway.” Consolidated Performance Three Months Ended December 31, Year Ended December 31, $ millions 2021 2020 B/(W) 2021 2020 B/(W) Revenue $ 484 $ 460 $ 24 $ 2,045 $ 1,961 $ 84 YoY growth 5 % 4 % Gross Margin 187 180 7 852 806 46 % of revenue 38.7 % 39.1 % (0.4) pts 41.6 % 41.1 % 0.6 pts SG&A (139) (136) (3) (561) (559) (2) % of revenue 28.7 % 29.6 % 0.9 pts 27.4 % 28.5 % 1.1 pts (Loss) Income from Continuing Operations 7 (1) 8 126 20 106 % of revenue 1.4 % (0.2) % 1.6 pts 6.2 % 1.0 % 5.2 pts Net Income 7 490 (484) 125 551 (425) % of revenue 1.4 % 106.7 % (105.3) pts 6.1 % 28.1 % (21.9) pts Adjusted Net Income(2) 24 28 (4) 180 126 54 % of revenue 4.9 % 6.1 % (1.2) pts 8.8 % 6.4 % 2.4 pts Adjusted EBITDA(1) 73 68 4 387 345 42 % of revenue 15.0 % 14.8 % 0.2 pts 18.9 % 17.6 % 1.3 pts Net Cash (Used for) Provided from Operating Activities from Continuing Operations 23 (13) 36 239 198 41 Free Cash Flow(3) 17 (19) 37 217 172 45 Reconciliations of net income to Adjusted Net Income and Adjusted EBITDA, as well as a reconciliation of Net Cash Provided from Operating Activities from Continuing Operations to Free Cash Flow, are set forth below in this press release. Fourth-Quarter Performance Revenue Three Months Ended December 31, (In millions) 2021 2020 Growth Organic Acquired Residential Pest Management $ 181 $ 172 $ 9 5 % $ 6 4 % $ 3 2 % Commercial Pest Management 136 134 2 2 % (3 ) (2 ) % 5 4 % Termite and Home Services 144 131 12 9 % 12 9 % 1 0 % Sales of Products and Other 23 22 1 4 % 1 4 % — - % Total Revenue $ 484 $ 460 $ 24 5 % $ 16 3 % $ 8 2 % In the fourth quarter of 2021, Terminix reported five percent year-over-year revenue growth and three percent organic revenue growth.(4) Termite and home services revenue growth was nine percent, predominantly all of which was organic growth. Termite and home services completions increased 11 percent, driven by higher demand for termite services and increased cross selling of home services to existing customers. Termite renewals increased seven percent, due to increased volume and improved price realization. Residential pest management revenue growth was five percent, reflecting organic revenue growth of four percent. Organic revenue growth was driven by improved price realization and improved trailing 12-month customer retention rates. Commercial pest management revenue growth was two percent. Organic revenue decline of two percent was driven by a reduction in one-time services, including approximately $2 million in disinfection services in the same period in 2020. These organic declines were partially offset by continued growth internationally, including favorable foreign currency fluctuations of approximately $1 million. Sales of products and other revenue growth was four percent due to increased product demand as we lap the impacts of COVID-19 on the three months ended December 31, 2020. The sale of products was negatively impacted by product availability and supply channel slowdowns stemming from COVID-19. Adjusted EBITDA Adjusted EBITDA was $73 million for the fourth quarter, a year-over-year increase of $4 million. The impact on Adjusted EBITDA from higher revenue was $13 million. Production labor increased $5 million, primarily due to labor market driven increased turnover year-over-year and investments in trainees to improve staffing levels in advance of 2022 peak season. Direct cost productivity reduced expenses $6 million year-over-year, driven by improvements in fleet management, lower fuel prices primarily related to favorable fuel hedge rates, and productivity from the insourcing of certain national accounts customers. Medical costs increased $5 million due to increased medical claims and short-term disability costs primarily as a result of the COVID-19 pandemic. Investments in CxP and Terminix Way increased $3 million as we prepare to launch the Terminix Way initiative in the coming months and deployed CxP in the southwest region. Other expenses, including sales, marketing, and travel increased $1 million in total. Liquidity and Free Cash Flow The Company ended the fourth quarter with $116 million in available cash and access to $378 million under its revolving credit facility for total liquidity of $494 million. Full-year 2021 free cash flow was $217 million, with a free cash flow conversion rate(5) of 56 percent. The Company ended the fourth quarter with a net debt leverage ratio(6) of approximately 2.0 times. The Company borrowed and repaid $50 million from its revolving credit facility during the fourth quarter. This short-term liquidity was used to close $27 million in acquisitions and purchase $19 million in shares under the Company’s share repurchase program. Given the proposed acquisition by Rentokil, we are not currently planning to repurchase any shares of our common stock for the foreseeable future. Proposed Acquisition by Rentokil On December 13, 2021, we entered into the Merger Agreement with Rentokil Initial plc and its affiliates. Under the Merger Agreement, at closing, each share of our common stock, par value $0.01 per share, issued and outstanding immediately prior to closing (other than certain excluded shares as described in the Merger Agreement) will be converted into the right to receive either: a number of American depositary shares of Rentokil (each representing a beneficial interest in five ordinary shares of Rentokil) equal to (A) 1.0619 plus (B) the quotient of $11.00 and the volume weighted average price (measured in U.S. dollars) of Rentokil American depositary shares (measured using the volume weighted average price of Rentokil ordinary shares as a proxy) for the trading day that is two trading days prior to the closing (or such other date as may be mutually agreed to by Rentokil and the Company); or an amount in cash, without interest, and in USD equal to the sum of (A) the Per Share Cash Amount plus (B) the product of the Exchange Ratio and the Rentokil ADS Price, in each case at the election of the holder of such share of our common stock, subject to certain allocation and proration provisions of the Merger Agreement. Immediately following such conversion, our shares of common stock will be automatically cancelled and cease to exist. The aggregate cash consideration and the aggregate stock consideration that will be issued in the transaction will not vary as a result of individual election preferences. The respective obligations of the Company and Rentokil to consummate the transaction are subject to the satisfaction or waiver of a number of conditions, including, among others, the approval of the Merger Agreement by the Company’s stockholders, approval of the transactions contemplated by the Merger Agreement and other related matters by Rentokil’s shareholders, and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Full-Year 2022 Outlook Due to the proposed acquisition by Rentokil, the Company does not plan to provide its customary full-year 2022 revenue, Adjusted EBITDA, organic growth or free cash flow conversion guidance. Fourth-Quarter 2021 Earnings Conference Call The Company will hold a conference call to discuss its financial and operating results at 8 a.m. central time (9 a.m. eastern time) on Tuesday, March 1, 2022. The Company invites all interested parties to join Chief Executive Officer Brett Ponton, Executive Vice President and Chief Financial Officer Bob Riesbeck, and Vice President of Investor Relations, FP&A and Treasurer Jesse Jenkins for an update on the Company's operational performance and financial results for the fourth quarter ended December 31, 2021. Participants may join this conference call by dialing 800.908.8951 (or international participants, +1.212.231.2913). Additionally, the conference call will be available via webcast. A slide presentation highlighting the company’s results will also be available. To participate via webcast and view the presentation, visit the company’s investor relations home page at investors.terminix.com. The call will be available for replay until March 31, 2022. To access the replay of this call, please call 800.633.8284 and enter reservation number 22015436 (international participants: +1.402.977.9140, reservation number 22015436). The webcast will also be available on the Company’s investor relations home page. About Terminix Terminix Global Holdings, Inc. (NYSE: TMX) is a leading provider of residential and commercial pest control. The Company provides pest management services and protection against termites, mosquitoes, rodents and other pests. Headquartered in Memphis, Tenn., with more than 11,700 teammates and 2.9 million customers in 24 countries and territories, the Company visits more than 50,000 homes and businesses every day. To learn more about Terminix, visit Terminix.com, or LinkedIn.com/company/terminix. Information Regarding Forward-Looking Statements This press release contains forward-looking statements and cautionary statements. Forward-looking statements can be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “shall,” “should,” “would,” “could,” “seeks,” “aims,” “projects,” “is optimistic,” “intends,” “plans,” “estimates,” “anticipates” or other comparable terms. Forward looking statements are subject to known and unknown risks and uncertainties. These forward-looking statements also include, but are not limited to statements regarding our intentions, beliefs, assumptions or current expectations concerning, among other things, financial position; results of operations; cash flows; prospects; impact from COVID-19; the proposed acquisition by Rentokil; growth strategies or expectations; the continuation of acquisitions, including the integration of any acquired company and risks relating to any such acquired company; fuel prices; attraction and retention of key teammates; the impact of fuel swaps; the valuation of marketable securities; estimates of accruals for self-insured claims related to workers’ compensation, auto and general liability risks; expected termite damage claims costs; estimates of future payments under operating and finance leases; estimates on current and deferred tax provisions; the outcome (by judgment or settlement) and costs of legal or administrative proceedings, including, without limitation, collective, representative or class action litigation; and the impact of prevailing economic conditions. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of the market segments in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this report. In addition, even if our results of operations, financial condition and cash flows, and the development of the segments in which we operate, are consistent with the forward-looking statements contained in this report, those results or developments may not be indicative of results or developments in subsequent periods. Additional factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation, risks and uncertainties related to the proposed acquisition of the Company by Rentokil, including regulatory and stockholder approvals, challenges to the proposed acquisition, business operational uncertainties and potential loss of key personnel. Non-GAAP Financial Measures This press release contains certain non-GAAP financial measures. Non-GAAP measures should not be considered as an alternative to GAAP financial measures. Non-GAAP measures may not be calculated like or comparable to similarly titled measures of other companies. See non-GAAP reconciliations below in this press release for a reconciliation of these measures to the most directly comparable GAAP financial measures. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted earnings per share, free cash flow, free cash flow conversion rate, organic revenue growth and net debt leverage ratio are not measurements of the Company’s financial performance under GAAP and should not be considered as an alternative to net income (loss), net cash provided by operating activities from continuing operations or any other performance or liquidity measures derived in accordance with GAAP. Management uses these non-GAAP financial measures to facilitate operating performance and liquidity comparisons, as applicable, from period to period. We believe these non-GAAP financial measures are useful for investors, analysts and other interested parties as they facilitate company-to-company operating performance and liquidity comparisons, as applicable, by excluding potential differences caused by variations in capital structures, acquisition activity, taxation, the age and book depreciation of facilities and equipment, restructuring initiatives and equity-based, long-term incentive plans. (1) Adjusted EBITDA is defined as net income (loss) before: depreciation and amortization expense; acquisition-related costs; Mobile Bay Formosan termite settlement; fumigation related matters; non-cash stock-based compensation expense; restructuring and other charges; goodwill impairment; amortization of cloud based software; net earnings from discontinued operations; provision for income taxes; loss on extinguishment of debt; and interest expense. The Company’s definition of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of revenue. (2) Adjusted Net Income is defined as net income (loss) before: amortization expense; acquisition-related costs; Mobile Bay Formosan termite settlement; fumigation related matters; restructuring and other charges; goodwill impairment; amortization of cloud based software; net earnings from discontinued operations; loss on extinguishment of debt; and the tax impact of the aforementioned adjustments. The Company’s definition of Adjusted Net Income may not be comparable to similarly titled measures of other companies. Adjusted earnings per share is calculated as Adjusted Net Income divided by the weighted-average diluted common shares outstanding. (3) Free cash flow is defined as net cash provided from operating activities from continuing operations less property additions. (4) Organic revenue growth is defined as revenue excluding revenue from acquired customers for 12 months following the acquisition date. (5) Free cash flow conversion rate is defined as free cash flow divided by Adjusted EBITDA. (6) Net debt leverage ratio is defined as total debt less cash divided by LTM Adjusted EBITDA. LTM Adjusted EBITDA is calculated as Q4 2021 YTD Adjusted EBITDA ($387 million). TERMINIX GLOBAL HOLDINGS, INC. Consolidated Statements of Operations and Comprehensive Income (In millions, except per share data) Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 Revenue $ 484 $ 460 $ 2,045 $ 1,961 Cost of services rendered and products sold 296 280 1,193 1,155 Selling and administrative expenses 139 136 561 559 Amortization expense 11 10 40 36 Acquisition-related costs (adjustments) (2 ) — (1 ) — Mobile Bay Formosan termite settlement — — 4 49 Fumigation related matters 2 — 2 — Restructuring and other charges 9 2 19 16 Goodwill impairment — — 3 — Interest expense 11 17 45 83 Interest and net investment income (1 ) (1 ) (2 ) (4 ) Loss on extinguishment of debt — 26 — 26 (Loss) Income from Continuing Operations before Income Taxes 18 (9 ) 180 41 (Benefit) provision for income taxes 12 (7 ) 57 24 Equity in earnings of joint ventures — 1 2 3 Income (Loss) from Continuing Operations 7 (1 ) 126 20 Net earnings (loss) from discontinued operations — 491 (1 ) 531 Net Income $ 7 $ 490 $ 125 $ 551 Total Comprehensive Income $ 10 $ 502 $ 142 $ 504 Weighted-average common shares outstanding - Basic 121.2 132.1 126.0 132.7 Weighted-average common shares outstanding - Diluted 121.4 132.1 126.4 133.0 Basic Earnings (Loss) Per Share: Income (Loss) from Continuing Operations $ 0.06 $ (0.01 ) $ 1.00 $ 0.15 Net earnings from discontinued operations (0.00 ) 3.72 (0.00 ) 4.00 Net Income 0.06 3.71 1.00 4.15 Diluted Earnings (Loss) Per Share: Income (Loss) from Continuing Operations $ 0.06 $ (0.01 ) $ 1.00 $ 0.15 Net earnings from discontinued operations (0.00 ) 3.72 (0.00 ) 4.00 Net Income 0.06 3.71 0.99 4.14 TERMINIX GLOBAL HOLDINGS, INC. Consolidated Statements of Financial Position (In millions, except share data) As of As of December 31, December 31, 2021 2020 Assets: Current Assets: Cash and cash equivalents $ 116 $ 615 Receivables, less allowances of $32 and $25, respectively 206 206 Inventories 41 44 Prepaid expenses and other assets 151 145 Total Current Assets 514 1,010 Other Assets: Property and equipment, net 196 182 Operating lease right-of-use assets 79 80 Goodwill 2,211 2,146 Intangible assets, primarily trade names, service marks and trademarks, net 1,097 1,111 Restricted cash 89 89 Notes receivable 36 31 Long-term marketable securities 15 14 Deferred customer acquisition costs 98 98 Other assets 77 75 Total Assets $ 4,410 $ 4,837 Liabilities and Stockholders' Equity: Current Liabilities: Accounts payable $ 85 $ 91 Accrued liabilities: Payroll and related expenses 81 102 Self-insured claims and related expenses 72 76 Accrued interest payable 7 7 Other 95 99 Deferred revenue 103 102 Current portion of lease liability 18 17 Current portion of long-term debt 50 94 Total Current Liabilities 511 588 Long-Term Debt 849 826 Other Long-Term Liabilities: Deferred taxes 387 346 Other long-term obligations, primarily self-insured claims 197 239 Long-term lease liability 92 96 Total Other Long-Term Liabilities 677 681 Commitments and Contingencies Stockholders’ Equity: Common stock $0.01 par value (authorized 2,000,000,000 shares with 149,095,168 shares issued and 121,258,729 shares outstanding at December 31, 2021, and 148,400,384 shares issued and 132,080,845 outstanding at December 31, 2020) 2 2 Additional paid-in capital 2,391 2,359 Retained earnings 967 841 Accumulated other comprehensive income (22 ) (39 ) Less common stock held in treasury, at cost (27,836,439 shares at December 31, 2021, and 16,319,539 shares at December 31, 2020) (964 ) (423 ) Total Stockholders' Equity 2,375 2,741 Total Liabilities and Stockholders' Equity $ 4,410 $ 4,837 TERMINIX GLOBAL HOLDINGS, INC. Consolidated Statements of Cash Flows (In millions) Year Ended December 31, 2021 2020 2019 Cash and Cash Equivalents and Restricted Cash at Beginning of Period $ 704 $ 368 $ 313 Cash Flows from Operating Activities from Continuing Operations: Net Income 125 551 128 Adjustments to reconcile net income to net cash provided from operating activities: Net loss (earnings) from discontinued operations 1 (531 ) (69 ) Equity in earnings of joint ventures (2 ) (3 ) — Depreciation expense 70 73 71 Amortization expense 40 36 25 Amortization of debt issuance costs 2 3 3 Amortization of lease right-of-use assets 16 18 18 Goodwill impairment 3 — — Mobile Bay Formosan termite settlement 4 49 — Payments on Mobile Bay Formosan termite settlement — (49 ) — Fumigation related matters 2 — — Payments on fumigation related matters (1 ) — (2 ) Termite damage claims reserve adjustment — — 53 Realized (gain) loss on investment in frontdoor, inc. — — (40 ) Loss on extinguishment of debt — 26 8 Deferred income tax provision 34 8 9 Stock-based compensation expense 20 16 14 Restructuring and other charges 19 16 14 Payments for restructuring and other charges (10 ) (12 ) (17 ) Acquisition-related costs (adjustments) (1 ) — 16 Payments for acquisition-related costs (4 ) (5 ) (14 ) Other (25 ) (22 ) (24 ) Change in working capital, net of acquisitions: Receivables (5 ) (30 ) (4 ) Inventories and other current assets (22 ) (15 ) (14 ) Accounts payable (5 ) 1 (1 ) Deferred revenue 2 (4 ) 4 Accrued liabilities (17 ) 50 (8 ) Accrued interest payable — (7 ) 2 Current income taxes (8 ) 26 (7 ) Net Cash Provided from Operating Activities from Continuing Operations 239 198 164 Cash Flows from Investing Activities from Continuing Operations: Property additions (22 ) (26 ) (25 ) Sale of equipment and other assets 5 6 1 Business acquisitions, net of cash acquired (113 ) (36 ) (506 ) Origination of notes receivable (69 ) (68 ) (99 ) Collections on notes receivable 68 76 110 Net Cash Used for Investing Activities from Continuing Operations (131 ) (47 ) (519 ) Cash Flows from Financing Activities from Continuing Operations: Borrowings of debt 50 — 1,470 Payments of debt (144 ) (869 ) (1,094 ) Discount paid on issuance of debt — — (1 ) Debt issuance costs paid — (3 ) (10 ) Call premium paid on retirement of debt — (19 ) — Repurchase of common stock (541 ) (110 ) (47 ) Issuance of common stock and exercise of stock options 12 8 10 Net Cash (Used for) Provided from Financing Activities from Continuing Operations (623 ) (992 ) 328 Cash Flows from Discontinued Operations: Cash provided from (used for) operating activities 17 (363 ) 79 Cash provided from (used for) investing activities: Proceeds from sale of business — 1,541 — Other investing activities — (1 ) 3 Cash used for financing activities — (1 ) (1 ) Net Cash Provided from Discontinued Operations 17 1,176 81 Effect of Exchange Rate Changes on Cash (1 ) 1 1 Cash (Decrease) Increase During the Period (499 ) 336 55 Cash and Cash Equivalents and Restricted Cash at End of Period $ 205 $ 704 $ 368 The following table presents reconciliations of net income to Adjusted Net Income: Three Months Ended Year Ended December 31, December 31, (In millions, except per share data) 2021 2020 2021 2020 Net income $ 7 $ 490 $ 125 $ 551 Amortization expense 11 10 40 36 Acquisition-related costs (adjustments) (2 ) — (1 ) (0 ) Mobile Bay Formosan termite settlement — — 4 51 Fumigation related matters 2 — 2 0 Restructuring and other charges 9 2 19 16 Goodwill impairment — — 3 — Loss on extinguishment of debt — 26 — 26 Net earnings from discontinued operations — (491 ) 1 (531 ) Amortization of cloud-based software — — 1 0 Tax impact of adjustments (3 ) (9 ) (14 ) (23 ) Adjusted Net Income $ 24 $ 28 $ 180 $ 126 Weighted average diluted common shares outstanding 121.4 132.6 126.4 133.0 Adjusted earnings per share $ 0.20 $ 0.21 $ 1.43 $ 0.95 The following table presents reconciliations of net cash provided from operating activities from continuing operations to free cash flow: Three Months Ended Year Ended December 31, December 31, (In millions) 2021 2020 2021 2020 Net Cash (Used for) Provided from Operating Activities from Continuing Operations $ 23 $ (13 ) $ 239 $ 198 Property additions (5 ) (6 ) (22 ) (26 ) Free Cash Flow $ 17 $ (19 ) $ 217 $ 172 The following table presents reconciliations of net income to Adjusted EBITDA. Three Months Ended Year Ended December 31, December 31, (In millions) 2021 2020 2021 2020 Net income $ 7 $ 490 $ 125 $ 551 Depreciation and amortization expense 29 28 110 110 Acquisition-related costs (adjustments) (2 ) — (1 ) — Mobile Bay Formosan termite settlement — — 4 51 Fumigation related matters 2 — 2 — Non-cash stock-based compensation expense 5 3 20 16 Restructuring and other charges 9 2 19 16 Goodwill impairment — — 3 — Net earnings from discontinued operations — (491 ) 1 (531 ) (Benefit) provision for income taxes 12 (7 ) 57 24 Loss on extinguishment of debt — 26 — 26 Interest expense 11 17 45 83 Amortization of cloud-based software — — 1 — Adjusted EBITDA $ 73 $ 68 $ 387 $ 345
MEMPHIS, Tenn.--(BUSINESS WIRE)---- $TMX #ESG--Terminix Global Holdings, Inc. (NYSE: TMX), a leading provider of residential and commercial pest control, today confirmed its plan to release its unaudited fourth-quarter and full-year 2021 financial results after 6 a.m. central time (7 a.m. eastern time) on Tuesday, March 1, 2022. The company will hold a conference call to discuss its financial and operating results at 8 a.m. central time (9 a.m. eastern time) on Tuesday, March 1, 2022. The company invites all
Rentokil Initial rose to the top of the FTSE 100 as heavyweight US broker Citi upgraded the pest control specialist following its acquisition of US rival Terminix. The deal can propel Rentokil into the No.
The pest control company agreed to be acquired by a British rival, which is clearly paying a premium for the opportunity.
Shares of Terminix Global Holdings Inc (NYSE: TMX) are up nearly 30% on Tuesday after Rentokil Initial plc (LON: RTO) said it will buy the pest-control company for about $6.7 billion in cash and stock. Rentokil valued Terminix at $55 a share Rentokil is paying $55 per share to acquire Terminix that represents a 47% […] The post Terminix shares jumped 30% on Tuesday morning: explained here appeared first on Invezz.
The average of price targets set by Wall Street analysts indicates a potential upside of 31.7% in Terminix Global Holdings, Inc. (TMX). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
Terminix Global Holdings, Inc. (TMX) CEO Brett Ponton on Q3 2021 Results - Earnings Call Transcript
MEMPHIS, Tenn.--(BUSINESS WIRE)---- $TMX #Q3--Terminix Global Holdings, Inc. (NYSE: TMX), a leading provider of residential and commercial pest control, today confirmed its plan to release its unaudited third-quarter 2021 financial results after 6 a.m. central time (7 a.m. eastern time) on Tuesday, November 2, 2021. The company will hold a conference call to discuss its financial and operating results at 8 a.m. central time (9 a.m. eastern time) on Tuesday, November 2, 2021. The company invites all interest
MEMPHIS, Tenn.--(BUSINESS WIRE)--Terminix Global Holdings, Inc. (NYSE: TMX), a leading provider of residential and commercial pest control, today confirmed its plan to release its unaudited third-quarter 2021 financial results after 6 a.m. central time (7 a.m. eastern time) on Tuesday, November 2, 2021. The company will hold a conference call to discuss its financial and operating results at 8 a.m. central time (9 a.m. eastern time) on Tuesday, November 2, 2021. The company invites all interested parties to join Chief Executive Officer Brett Ponton, Executive Vice President and Chief Financial Officer Bob Riesbeck, and Vice President of Investor Relations, FP&A and Treasurer Jesse Jenkins for an update on the company's operational performance and financial results for the third quarter ended September 30, 2021. Participants may join this conference call by dialing 877.243.0931 (or international participants, +1.415.226.5359). Additionally, the conference call will be available via webcast. A slide presentation highlighting the company’s results will also be available. To participate via webcast and view the presentation, visit the company’s investor relations home page at investors.terminix.com. The call will be available for replay until December 2, 2021. To access the replay of this call, please call 800.633.8284 and enter reservation number 21998418 (international participants: +1.402.977.9140, reservation number 21998418). The webcast will also be available on the company’s investor relations home page. About Terminix Terminix Global Holdings (NYSE: TMX) is a leading provider of residential and commercial pest control. The Company provides pest management services and protection against termites, mosquitoes, rodents and other pests. Headquartered in Memphis, Tenn., with more than 11,500 teammates and 2.9 million customers in 24 countries and territories, the Company visits more than 50,000 homes and businesses every day. To learn more about Terminix, visit Terminix.com, or LinkedIn.com/company/terminix.