Thompson Street Announces the Establishment of Pest Control Holding Company – PCT



MEMPHIS – Terminix announced unaudited third quarter 2021 results on November 2nd. For the third quarter of 2021, the company reported a four percent year-over-year increase in revenue to $ 530 million. Net income rose $ 45 million year over year to $ 38 million, or $ 0.30 per share. Adjusted EBITDA (1) for the quarter increased $ 3 million year-over-year to $ 102 million, and Adjusted Net Income (2) increased $ 17 million to $ 51 million, or $ 0.41 – dollars per share.

“The solid performance in our termite business shows a quarter of the continued progress on the Terminix Way and CxP operating platform initiatives,” said Brett Ponton, CEO of Terminix. “Strong growth in termite renewals, price realizations and contributions from eight additional acquisitions in the quarter resulted in solid sales growth. The bottom line is that the higher sales contribution and direct cost productivity were partially offset by increased medical expenses and personnel challenges as we cope with the pandemic pressure on the business. Despite ongoing inflationary pressures on building materials, we’ve also made progress in managing termite damage, with less damage in the quarter leading to an initial year-over-year cost reduction since 2019. “

“Looking ahead to the fourth quarter, we will continue to focus on building our digital marketing and e-commerce capabilities with a new website due to launch in December,” continued Ponton. “We remain on course to start implementing the CxP operating platform before the end of the year and are planning a pilot of the Terminix Way in the first quarter of next year. The combination of these initiatives by 2022 will free up the sales capabilities of our technician base to deliver better lead generation, customer loyalty, an improved customer experience, and a better teammate experience. We are excited about the work ahead and remain confident that installing these capabilities will support improved profitable growth in 2022 and beyond. “

Sales increased by four percent compared to the previous year, two percent of which came from acquisitions.

Organic sales growth in termite and household services (4) was three percent. Termite and home service completion increased 3 percent, driven by the sale of our new termite product with monthly pay and improved cross-selling of home services to existing customers. Termite renewals increased 3 percent due to increased volume and improved pricing, which was offset by the change in the timing of revenue recognition in our new monthly subscription-based termite offering. Without the impact of the monthly subscription-based termite offering, termite renewal growth would have been six percent and total termite and home service growth would have been four percent.

Residential Pest Control sales grew three percent, reflecting one percent organic sales growth. Organic sales growth was driven by improved price realization and improved customer retention rates over the past 12 months.

Commercial pest control growth was three percent. The organic drop in sales of one percent was due to a reduction in completed recurring and one-off services as a result of staff shortages when insourcing certain VGR customers. These declines more than offset continued international growth, including favorable exchange rate fluctuations of approximately $ 1 million.

Product and other revenue growth was 11 percent due to increased demand for chemicals as we mask the effects of COVID-19 in the three months ended September 30, 2020.

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