Exhibit 99.1
The ServiceMaster Company
Quarterly Consolidated Statements of Income for 2001 and 2000
2001
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First Second Third Fourth Full
(in thousands, except per share data) Quarter Quarter Quarter Quarter Year
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Operating Revenue $ 735,721 $1,030,176 $ 997,798 $ 837,734 $3,601,429
Operating Costs and Expenses:
Cost of services rendered and products sold 540,928 697,072 689,455 618,752 2,546,207
Selling and administrative expenses 135,263 226,308 219,418 164,935 745,924
Memo: Goodwill and tradename amortization (1) 15,112 15,883 15,712 14,625 61,332
Charge for impaired assets and other items - - - 396,743 396,743
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Total operating costs and expenses 676,191 923,380 908,873 1,180,430 3,688,874
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Operating Income 59,530 106,796 88,925 (342,696) (87,445)
Non-operating Expense (Income)
Interest expense 34,574 31,825 30,948 27,710 125,057
Interest and investment income (3,518) (3,745) (7,409) (2,114) (16,786)
Minority interest and other expense (income), net (1,774) 2,838 2,248 2,345 5,657
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Income from Continuing Operations before Income Taxes 30,248 75,878 63,138 (370,637) (201,373)
Provision for income taxes 12,457 31,796 27,213 (101,060) (29,594)
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Income from Continuing Operations before
Extraordinary Items 17,791 44,082 35,925 (269,577) (171,779)
Discontinued operations, net 5,433 6,631 10,198 307,972 330,234
Extraordinary gain (loss), net of income taxes 6,003 - - (9,425) (3,422)
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Net Income $ 29,227 $ 50,713 $ 46,123 $ 28,970 $ 155,033
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Diluted Earnings Per Share (2):
Income from Continuing Operations before
Extraordinary Items $ 0.06 $ 0.15 $ 0.12 $ (0.86) $ (0.54)
Discontinued operations, net 0.02 0.02 0.03 0.99 1.06
Extraordinary gain (loss) 0.02 - - (0.03) (0.01)
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Diluted earnings per share $ 0.10 $ 0.17 $ 0.15 $ 0.10 $ 0.51
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Diluted shares outstanding 309,831 310,764 312,524 312,494 311,408
2000
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First Second Third Fourth Full
(in thousands, except per share data) Quarter Quarter Quarter Quarter Year
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Operating Revenue $ 729,050 $ 990,758 $ 971,465 $ 794,244 $3,485,517
Operating Costs and Expenses:
Cost of services rendered and products sold 546,587 673,398 671,452 597,714 2,489,151
Selling and administrative expenses 112,029 207,261 205,593 137,741 662,624
Memo: Goodwill and tradename amortization (1) 12,817 13,787 17,328 15,555 59,487
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Total operating costs and expenses 658,616 880,659 877,045 735,455 3,151,775
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Operating Income 70,434 110,099 94,420 58,789 333,742
Non-operating Expense (Income)
Interest expense 31,865 35,680 35,503 33,783 136,831
Interest and investment income (3,893) (6,756) (9,026) (5,327) (25,002)
Minority interest and other expense (income), net (2,940) (3,422) (2,700) (4,175) (13,237)
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Income from Continuing Operations before Income Taxes 45,402 84,597 70,643 34,508 235,150
Provision for income taxes 18,830 35,794 30,457 13,273 98,354
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Income from Continuing Operations before
Cumulative Effect of Accounting Change 26,572 48,803 40,186 21,235 136,796
Discontinued operations, net 9,482 17,512 10,600 10,598 48,192
Cumulative effect of accounting change,
net of income taxes (11,161) - - - (11,161)
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Net Income $ 24,893 $ 66,315 $ 50,786 $ 31,833 $ 173,827
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Diluted Earnings Per Share (2):
Income from Continuing Operations before
Cumulative Effect of Accounting Change $ 0.09 $ 0.16 $ 0.13 $ 0.07 $ 0.45
Discontinued operations, net 0.03 0.05 0.04 0.04 0.16
Cumulative effect of accounting change (0.04) - - - (0.04)
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Diluted earnings per share $ 0.08 $ 0.21 $ 0.17 $ 0.11 $ 0.57
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Diluted shares outstanding 310,138 308,475 303,363 300,151 305,518
(1) Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets" (SFAS 142) requires that in 2002
goodwill will no longer be subject to amortization and intangible assets with indefinite lives, such as tradenames, will
not be amortized until their useful lives are determined to no longer be indefinite. The goodwill and tradename
amortization noted above is the expense that would be eliminated under SFAS 142. The approximate after-tax impact by
quarter of the amortization expense eliminated under SFAS 142 is presented in the following table:
2001
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First Second Third Fourth Full
Quarter Quarter Quarter Quarter Year
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After-tax impact of amortization
expense eliminated under SFAS 142 $ 10,300 $ 10,700 $ 10,600 $ 10,500 $ 42,100
2000
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First Second Third Fourth Full
Quarter Quarter Quarter Quarter Year
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After-tax impact of amortization
expense eliminated under SFAS 142 $ 9,000 $ 9,600 $ 11,900 $ 10,400 $ 40,900
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(2) In computing diluted earnings per share, the after-tax interest expense related to convertible debentures is added back to net
income in the numerator, while the diluted shares in the denominator include the shares issuable upon conversion of the
debentures.