ServiceMaster announced that first quarter 2002 revenue of $747 million was up 2 percent over one year ago.
“Year-to-date results show TruGreen ChemLawn contract sales growth of 3 percent over last year and customer retention improving by 1 percent,” said Jonathan Ward, company president and chief executive officer. “These current trends make me confident that, for the first time in three years, we will see both internal growth in TruGreen customer counts and increased retention for the full calendar year.”
For the first quarter of 2002, the TruGreen segment revenue of $229 million was flat as compared to 2001. Operating income was $25 million compared with $29 million in the prior year, due primarily to reduced snow removal business and the timing of some seasonal expenses, according to a company release.
The year-to-date lawn care trends indicate stronger sales and better retention rates, due to new marketing strategies and quality of service initiatives begun during the fall of 2001, the release reported.
The landscape maintenance business stabilized after divestiture of the landscape construction business in the fall of 2001. The business continues to focus on increasing sales and marketing effectiveness to generate new revenue as well as various initiatives to improve its cost structure.
“We are doing what we said we would do, which is to succeed through execution," Ward said. "Terminix and American Home Shield continue to deliver excellent performance, while we have early indications of favorable trends at TruGreen. Every quarter, we strengthen our position as America’s home service company and we continue to be fortified by our complementary set of commercial businesses.”