MEMPHIS – Teminix Global Holdings 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 processes 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.”
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.
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