"Our first-quarter 2013 results were disappointing," said John Krenicki, Jr., ServiceMaster’s interim chief executive officer. "The path forward for us starts with putting our customers first, executing well and implementing the turnaround agenda at TruGreen." Krenicki assumed the CEO position following the departure of former CEO Hank Mullany, who resigned from the company effective April 12.
Krenicki noted that the decline in revenue and earnings compared to the first quarter of 2012 was largely attributable to TruGreen’s performance and the effects of the cool, wet start to the spring season in many parts of the country for both TruGreen and Terminix. The unseasonably late spring delayed production and compared unfavorably to the unusually warm weather that accelerated production into the first quarter last year. Excluding TruGreen, the other ServiceMaster businesses performed about as expected, he said.
"We’re confident about the future of ServiceMaster," said Krenicki. "We have leading brands, talented and passionate associates committed to serving customers and a lot of untapped opportunity to improve results. But we need to make progress at TruGreen while continuing to run the rest of our businesses well."
At a Glance
* First-quarter operating revenue decreased 7.1% to $608 million