Exhibit 99.2
TERMINIX GLOBAL HOLDINGS, INC. |
(f/k/a SERVICEMASTER GLOBAL HOLDINGS, INC.) |
Supplemental Unaudited Pro Forma Financial Information |
(In millions) |
| | | | | | | | | | | | |
| | Six months ended | | | Year ended | |
| | June 30, 2020 | | | December 31, 2019 | | | December 31, 2018 | | | December 31, 2017 | |
Income (loss) from continuing operations | | $ | 56 | | | $ | 89 | | | $ | (227 | ) | | $ | 292 | |
Depreciation and amortization expense | | | 55 | | | | 96 | | | | 83 | | | | 79 | |
Acquisition-related costs | | | 1 | | | | 16 | | | | 4 | | | | — | |
Termite damage claims reserve adjustment | | | — | | | | 53 | | | | — | | | | — | |
401(k) Plan corrective contribution | | | — | | | | — | | | | — | | | | (3 | ) |
Fumigation related matters | | | — | | | | — | | | | 3 | | | | 4 | |
Non-cash stock-based compensation expense | | | 10 | | | | 14 | | | | 13 | | | | 8 | |
Restructuring and other charges | | | 12 | | | | 14 | | | | 17 | | | | 20 | |
Non-cash impairment of software and other related costs | | | — | | | | — | | | | — | | | | 1 | |
(Gain) loss on investment in frontdoor, inc. | | | — | | | | (40 | ) | | | 249 | | | | — | |
Provision (benefit) for income taxes | | | 21 | | | | 15 | | | | 14 | | | | (279 | ) |
Loss on extinguishment of debt | | | — | | | | 8 | | | | 10 | | | | 6 | |
Interest expense | | | 25 | | | | 47 | | | | 133 | | | | 150 | |
Adjusted EBITDA | | $ | 179 | | | $ | 313 | | | $ | 297 | | | $ | 277 | |
| | | | | | | | | | | | | | | | |
Terminix | | | 184 | | | | 319 | | | | 333 | | | | 330 | |
ServiceMaster Brands | | | — | | | | — | | | | — | | | | — | |
European Pest Control and Other | | | 1 | | | | 5 | | | | 9 | | | | 1 | |
Costs historically allocated to ServiceMaster Brands | | | (6 | ) | | | (11 | ) | | | (11 | ) | | | (10 | ) |
Costs historically allocated to American Home Shield | | | — | | | | — | | | | (33 | ) | | | (44 | ) |
Adjusted EBITDA | | $ | 179 | | | $ | 313 | | | $ | 297 | | | $ | 277 | |
Costs historically allocated to ServiceMaster Brands and Costs historically allocated to American Home Shield, which business was spun off on October 1, 2018, include historically incurred costs of certain corporate-level activities performed on behalf of ServiceMaster Brands in all years presented and the American Home Shield Business for the years ended December 31, 2018 and 2017. Such corporate costs include: accounting and finance, legal, human resources, information technology, insurance, real estate, tax services and other costs. These costs will be transitioned through a combination of (1) immediate transfers of certain activities to ServiceMaster Brands and American Home Shield and (2) payments to the Company by ServiceMaster Brands and American Home Shield under transition services agreements.