Terminix Global Holdings Inc. (TMX) Tops Q3 EPS by 4c, Revenues Beat

Terminix Global Holdings Inc. (NYSE: TMX) reported Q3 EPS of $0.26, $0.04 better than the analyst estimate of $0.22. Revenue for the quarter came in at $512 million versus the consensus estimate of $505.38 million.

• Delivered four percent organic revenue growth in both residential pest control and termite service lines
• Announced Mobile Bay Formosan termite settlement with Alabama Attorney General within previously communicated termite damage claim ringfence estimate
• Reported net loss of $7 million and net loss margin of 1.3%, a year-over-year decline of 680 basis points driven by the $49 million Mobile Bay Formosan termite settlement
• Delivered 19.2% Adjusted EBITDA margins, year-over-year improvement of 370 basis points
• Fourth-Quarter 2020 Terminix guidance of revenue between $445 and $460 million and Adjusted EBITDA between $60 and $70 million

“After an eventful first 50 days on the job, I am encouraged by the momentum we have as we continue our progress toward consistent, sustainable growth and profits,” said Terminix President and CEO Brett Ponton. “Strong residential revenue growth and profit margin improvement continue to provide considerable operating momentum to the underlying Terminix business. Progress on initiatives to improve teammate and customer retention are driving productivity improvements that are increasing profits. The commercial business improved sequentially in the third quarter but remains behind the prior year as economic uncertainty from the pandemic lingers. We were also able to negotiate a favorable Formosan termite settlement in the Mobile Bay area that will improve the predictability of our results by reducing our future exposure to termite damage claims. Despite the pandemic uncertainty ahead, the team is focused on closing the year strong and is on pace to deliver Adjusted EBITDA above our original pre-pandemic 2020 expectations.”

GUIDANCE:

Terminix Global Holdings Inc. sees Q4 2020 revenue of $445-460 million, versus the consensus of $460.68 million.

For earnings history and earnings-related data on Terminix Global Holdings Inc. (TMX) click here.

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