0000806027-95-000016.txt : 19950815 0000806027-95-000016.hdr.sgml : 19950815 ACCESSION NUMBER: 0000806027-95-000016 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950814 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SERVICEMASTER LTD PARTNERSHIP CENTRAL INDEX KEY: 0000806027 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MANAGEMENT SERVICES [8741] IRS NUMBER: 363497008 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09378 FILM NUMBER: 95562518 BUSINESS ADDRESS: STREET 1: ONE SERVICEMASTER WAY CITY: DOWNERS GROVE STATE: IL ZIP: 60515 BUSINESS PHONE: 7089641300 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 10549 FORM 10-Q __x__QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1995 ------------- _____TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 1-9378 SERVICEMASTER LIMITED PARTNERSHIP (Exact name of registrant as specified in its charter) Delaware 36-3497008 (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization) One ServiceMaster Way, Downers Grove, Illinois 60515 (Address of principal executive offices) (Zip Code) 708-271-1300 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes __X__ No _____. Indicate the number of shares outstanding of each of the issuer's classes of shares: 78,118,278 shares on August 4, 1995. This document consists of 13 pages, including the cover page. TABLE OF CONTENTS Page No. ---- SERVICEMASTER LIMITED PARTNERSHIP (Registrant) - Part I. Financial Information: ------- ---------------------- Consolidated Statements of Income for the three months ended and the six months ended June 30, 1995 and June 30, 1994 2 Consolidated Statements of Financial Position as of June 30, 1995 and December 31, 1994 3 Consolidated Statements of Cash Flows for the six months ended June 30, 1995 and June 30, 1994 4 Notes to Consolidated Financial Statements 5 Management Discussion and Analysis of Financial Condition and Results of Operations 6 Part II. Other Information -------- ----------------- Exhibit 11 - Exhibit Regarding Detail of Income Per Share Computation 11 Signature 12 1
PART I. FINANCIAL INFORMATION SERVICEMASTER LIMITED PARTNERSHIP Consolidated Statements of Income (In thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 1995 1994 1995 1994 ---------- --------- --------- ---------- Operating Revenue . . . . . . . . . . . . $ 852,791 $ 791,496 $1,560,555 $ 1,449,134 Operating Costs and Expenses: Cost of services rendered and products sold . . . . . . . . . . . 649,491 610,542 1,221,303 1,153,816 Selling and administrative expenses . . . 129,930 118,345 221,462 195,063 ---------- --------- --------- ---------- Total operating costs and expenses. . . . 779,421 728,887 1,442,765 1,348,879 ---------- --------- --------- ---------- Operating Income. . . . . . . . . . . . . 73,370 62,609 117,790 100,255 Non-operating Expenses (Income): Interest expense. . . . . . . . . . . . . 9,492 8,258 18,394 16,365 Interest income . . . . . . . . . . . . . (2,143) (1,276) (3,502) (2,751) Minority interest*. . . . . . . . . . . . 14,585 14,377 22,110 20,305 ---------- --------- --------- ---------- Income before Income Taxes. . . . . . . . 51,436 41,250 80,788 66,336 Provision for income taxes. . . . . . . . 1,276 816 1,748 1,356 ---------- --------- --------- ---------- Net Income. . . . . . . . . . . . . . . . $ 50,160 $ 40,434 $ 79,040 $ 64,980 ========== ========= ========= ========== Net Income Per Share. . . . . . . . . . . $ .63 $ .52 $ 1.00 $ .84 ===== ===== ====== ===== Cash Distributions Per Share. . . . . . . $ .24 $ .23 $ .47 $ .46 ===== ===== ===== ===== Net income per share is based on 79,369 shares and 77,686 shares for the three months ended June 30, 1995 and 1994, respectively, and 79,177 shares and 77,690 shares for the six months ended June 30, 1995 and 1994 respectively. *Includes General Partners' interest of $1,016 and $849 for the three months ended June 30, 1995 and 1994, respectively, and $1,603 and $1,346 for the six months ended June 30, 1995 and 1994, respectively.
See Notes to Consolidated Financial Statements 2
SERVICEMASTER LIMITED PARTNERSHIP Consolidated Statements of Financial Position (In thousands) As of June 30, December 31, Assets 1995 1994 ---------- ---------- Current Assets: Cash and marketable securities, including cash and cash equivalents of $29,501 and $14,333, respectively. $ 54,094 $ 34,444 Accounts and notes receivable, less allowances of $20,218 and $20,114 respectively . . . . . . . . . . . . . . . 252,436 211,714 Inventories . . . . . . . . . . . . . . . . . . . . . . . 41,649 36,062 Prepaid expenses and other assets . . . . . . . . . . . . 86,758 48,825 ---------- ---------- Total current assets . . . . . . . . . . . . . . . . . 434,937 331,045 ---------- ---------- Property and Equipment: At cost. . . . . . . . . . . . . . . . . . . . . . . . 284,616 260,187 Less: accumulated depreciation . . . . . . . . . . . . 145,816 131,739 ---------- ---------- Net property and equipment . . . . . . . . . . . . . . 138,800 128,448 ---------- ---------- Contract rights, trade names, goodwill, and other, net of accumulated amortization of $117,020 and $105,619, respectively . . . . . . . . . . . . . . 757,318 686,309 Notes receivable, long-term securities, and other assets. 92,414 85,037 ---------- ---------- Total assets . . . . . . . . . . . . . . . . . . . . . $ 1,423,469 $ 1,230,839 ========== ========== Liabilities And Shareholders' Equity Current Liabilities: Accounts payable. . . . . . . . . . . . . . . . . . . . . $ 46,525 $ 38,061 Accrued liabilities . . . . . . . . . . . . . . . . . . . 170,788 167,238 Deferred revenues . . . . . . . . . . . . . . . . . . . . 112,300 90,869 Current portion of long-term debt and obligations . . . . 9,181 8,227 ---------- ---------- Total current liabilities. . . . . . . . . . . . . . . 338,794 304,395 ---------- ---------- Long-Term Debt. . . . . . . . . . . . . . . . . . . . . . 453,287 386,511 Other Long-Term Obligations . . . . . . . . . . . . . . . 102,351 97,395 Commitments and Contingencies . . . . . . . . . . . . . . Minority and General Partners' Interest includes General Partners' interest of $1,636 in 1995 and $1,516 in 1994 . . . . . . . . . . 138,232 135,272 Shareholders' Equity: Limited partners' equity - shares issued 80,879 at June 30, 1995 and 78,055 shares at December 31, 1994. . . . . . . . . . . . . . . . . . . 463,866 364,673 Treasury shares at cost - 2,751 shares at June 30, 1995 and 2,033 shares at December 31, 1994 . . . . . . . . . . . . . . . . . . . (64,453) (48,497) Share subscriptions receivable and restricted shares - 746 shares at June 30, 1995 and 810 shares at December 31, 1994 . . . . . . . . . . . . . . . . . (8,608) (8,910) ---------- ---------- Total shareholders' equity . . . . . . . . . . . . . . 390,805 307,266 ---------- ---------- Total liabilities and shareholders' equity . . . . . . $ 1,423,469 $ 1,230,839 ========== ==========
See Notes to Consolidated Financial Statements 3
SERVICEMASTER LIMITED PARTNERSHIP Consolidated Statements of Cash Flows (In thousands) Six Months Ended June 30, 1995 1994 ----------- ----------- Cash and Cash Equivalents at January 1. . . . . . . . . . . . $ 14,333 $ 17,271 Cash Flows from Operations: Net Income. . . . . . . . . . . . . . . . . . . . . . . . . . 79,040 64,980 Adjustments to reconcile net income to net cash flows from operations: Depreciation . . . . . . . . . . . . . . . . . . . . . . 18,268 16,122 Amortization . . . . . . . . . . . . . . . . . . . . . . 11,401 8,988 Change in working capital, net of acquisitions: Receivables. . . . . . . . . . . . . . . . . . . . . . (39,931) (36,168) Inventories and other current assets . . . . . . . . . (42,163) (37,044) Accounts payable . . . . . . . . . . . . . . . . . . . 7,447 6,171 Deferred revenues. . . . . . . . . . . . . . . . . . . 21,149 16,830 Accrued liabilities. . . . . . . . . . . . . . . . . . 1,013 15,529 Other, net . . . . . . . . . . . . . . . . . . . . . . . 21,746 9,701 ----------- ----------- Net Cash Provided from Operations . . . . . . . . . . . . . . 77,970 65,109 ----------- ----------- Cash Flows from Investing Activities: Property additions . . . . . . . . . . . . . . . . . . . . (24,023) (17,262) Proceeds from sale of Education Food business. . . . . . . 20,057 --- Business acquisitions, net of cash acquired. . . . . . . . (19,041) (10,584) Notes receivable and financial investments . . . . . . . . (15,613) (5,754) Net purchases of securities. . . . . . . . . . . . . . . . (1,952) (1,621) Payments to sellers of acquired businesses . . . . . . . . (1,317) (1,099) Sale of equipment and other assets . . . . . . . . . . . . 1,102 1,233 Sale of investment in Norrell Corporation. . . . . . . . . --- 29,021 ----------- ----------- Net Cash Used for Investing Activities. . . . . . . . . . . . (40,787) (6,066) ----------- ----------- Cash Flows from Financing Activities: Short-term borrowings, net . . . . . . . . . . . . . . . . 98,300 6,734 Distributions to shareholders and to shareholders' trust . (56,117) (39,751) Payment of borrowings and other obligations. . . . . . . . (36,766) (14,247) Purchase of treasury shares. . . . . . . . . . . . . . . . (21,567) (14,704) Distributions to holders of minority interests . . . . . . (8,827) (1,306) Proceeds from employee share option plans. . . . . . . . . 2,761 3,566 Redemption of preferred stock. . . . . . . . . . . . . . . --- (14,650) Other. . . . . . . . . . . . . . . . . . . . . . . . . . . 201 3,825 ----------- ----------- Net Cash Used for Financing Activities. . . . . . . . . . . . (22,015) (70,533) ----------- ----------- Cash Increase (Decrease) during the Period. . . . . . . . . . 15,168 (11,490) ----------- ----------- Cash and Cash Equivalents at June 30. . . . . . . . . . . . . $ 29,501 $ 5,781 =========== ===========
See Notes to Consolidated Financial Statements 4 SERVICEMASTER LIMITED PARTNERSHIP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1: The consolidated financial statements include the accounts of the Partnership and its significant subsidiaries, collectively referred to as "the Partnership". Intercompany transactions and balances have been eliminated in consolidation. Note 2: The consolidated financial statements included herein have been prepared by the Partnership pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. However, the Partnership believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these consolidated financial statements be read in conjunction with the financial statements and the notes thereto included in the Partnership's latest Annual Report to Shareholders and the Annual Report to the Securities and Exchange Commission on Form 10-K for the year ended December 31, 1994. In the opinion of the Partnership, all adjustments, consisting only of normal and recurring adjustments, necessary to present fairly the financial position of ServiceMaster Limited Partnership as of June 30, 1995 and December 31, 1994, and the results of operations for the three month and six month periods ended June 30, 1995 and 1994, and the cash flows for the six month periods ended June 30, 1995 and 1994, have been included. The results of operations for any interim period are not necessarily indicative of the results which might be obtained for a full year. Note 3: For interim accounting purposes, certain costs directly associated with the generation of lawn care revenues are initially deferred and recognized as expense as the related revenues are recognized. Full year results are not affected. Note 4: In the Consolidated Statements of Cash Flows, the caption Cash and Cash Equivalents includes investments in short-term, highly-liquid securities having a maturity of three months or less. Supplemental information relating to the Consolidated Statements of Cash Flows for the six month periods ended June 30, 1995 and 1994 is presented in the following table. The increase in interest paid in 1995 from 1994 is primarily due to the debt refinancing in the first quarter of 1994 resulting in a deferral of payment as well as increased seasonal borrowings. (In thousands) 1995 1994 Cash paid or received for: ------- -------- -------------------------- Interest expense. . . . . . . . . . . . . . . . . . $ 16,773 $ 13,757 Interest and dividend income. . . . . . . . . . . . $ 1,519 $ 912
5 SERVICEMASTER LIMITED PARTNERSHIP MANAGEMENT DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS SECOND QUARTER 1995 COMPARED TO SECOND QUARTER 1994 --------------------------------------------------- Revenues increased 7.7% to $853 million due to internal growth and the inclusion of the European pest control acquisitions made in the second half of 1994, partially offset by the disposition of the Education food services business earlier this year. On a comparable basis, revenues increased approximately 9%. Operating income margins during the quarter improved to 8.6% from 7.9% last year, reflecting the combined effects of the continued rapid growth of our higher margin business units, the favorable effects of overhead leveraging throughout the enterprise and improved efficiencies in the Management Services unit. Net income was $50.2 million, reflecting a 24% increase over one year ago while earnings per share totalled $.63, an increase of 21%. The Consumer Services business segment achieved double digit growth in revenues and profits. TruGreen-ChemLawn continued to achieve outstanding results, with significant increases in customer base, productivity and profits. A twelve and a half percent increase in customer base helped to improve route densities and achieve other economies of scale, resulting in even faster growth in profits. Terminix achieved continued growth in revenues and profits despite weather conditions which adversely impacted seasonal termite swarms on an industry-wide basis, reflecting intensified management focus on customer satisfaction and retention. The ServiceMaster Residential and Commercial business continued to benefit from growth in disaster recovery services, which are provided by both franchisees and on a direct basis for more significant commercial projects. The Merry Maids business continued to reflect strong growth in royalty fees from existing franchisees along with encouraging results from company-owned branches. American Home Shield achieved accelerated growth in revenues and operating profits, despite a substantial softening in the home resale market in California and certain other parts of the country. Contract renewals and direct to consumer sales continue to show considerable improvement, consistent with the overall strategy of reducing reliance on conditions in the home resale market. The Management Services business segment also achieved a strong increase in profits during the quarter. The changes to a market based organizational structure that were implemented last year have contributed to a sharpened marketing focus and improved cost efficiencies. Revenues for the quarter decreased 3%, reflecting the disposition of the Education food service business earlier in the year, as well as the ongoing effects of the prior-year terminations of a number of low and no margin accounts. On a comparable basis, revenues increased approximately 4% percent. In the Healthcare market, increased revenues and reduced overheads contributed to a very strong increase in profits. The Education market was adversely impacted by wind down costs associated with the Education food service business, as well as a modest reduction in profits from other services. The Business and Industry group experienced significant improvements in all key areas of performance. 6 ServiceMaster Diversified Health Services achieved excellent growth with sharply increased profits from management and consulting services and medical supply sales. The International businesses achieved a very strong overall performance. The recently acquired pest control businesses in Europe continued to perform consistent with expectations and achieved modest net income after all acquisition costs. On a consolidated basis, cost of services rendered and products sold increased 6.4% but continued to decline as a percentage of revenue from 77.1% in 1994 to 76.2% in 1995. This decrease as a percentage of revenue reflects the changing mix of the business as Consumer Services and Diversified Health Services increase in size in relation to the overall business of the Partner- ship. The Consumer Services and Diversified Health Services units, along with certain International businesses, operate at a higher gross profit than the Management Services business unit but incur relatively higher levels of selling and administrative costs. Consolidated selling and administrative expenses increased 9.8% over prior year reflecting the increased volume in the Consumer Services businesses as well as the International acquisitions. Selling and administrative expenses as a percent of revenue increased from 15.0% in 1994 to 15.2% in 1995. As described above, this increase as a percent of revenue is primarily attributable to the changing business mix of the Partnership. Interest expense increased from prior year reflecting increased borrowings relating to the European pest control acquisitions made during the second half of 1994 and increased seasonal borrowings, partially offset by the proceeds received from the sale of the Education food business. Minority interest expense was flat for the quarter reflecting higher amounts associated with WMX Technologies' minority ownership interest in Consumer Services, offset by the effects of the purchase of the minority interest in TruGreen- ChemLawn earlier in the year. SIX MONTHS ENDED JUNE 30, 1995 COMPARED TO SIX MONTHS ----------------------------------------------------- ENDED JUNE 30, 1994 ------------------- Revenues increased 7.7% to $1.6 billion due to internal growth and the inclusion of the European pest control acquisitions made in the second half of 1994, partially offset by the disposition of the Education food services business earlier in this year. On a comparable basis, revenues increased 9% over the comparable period in 1994. Operating income increased 17.5%, to $117.8 million while margins increased to 7.5% of revenue from 6.9% in 1994, reflecting the combined effects of the continued rapid growth of our higher margin business units, the favorable effects of overhead leveraging throughout the enterprise and improved efficiencies in the Management Services unit. Net income was $79.0 million, reflecting a 22% increase over one year ago while earnings per share totalled $1.00, an increase of 19%. The Consumer Services business segment continued to achieve strong, double digit growth in revenues and profits with solid performances achieved by all units. The TruGreen-ChemLawn operations had strong growth in revenues and profits resulting from significant increases in customer base and productivity improvements. Terminix achieved solid growth in revenues and profits, despite adverse weather conditions, with improvements in customer retention. The Merry Maids and Residential and Commercial operations continued to achieve strong double digit increases in revenues and profits. 7 American Home Shield achieved accelerated growth in revenues and operating profits, with year to date gross contracts written up over 17%. This increase in volume also reflects increases in renewals and direct to consumer sales. The Management Services business segment achieved solid growth in profits for the six months. Revenues were below prior year levels primarily reflecting the disposition of the Education food service business early in the year. On a comparable basis, revenues increased 3% for the six months. New starts and customer retention have shown significant improvement over prior year levels. New starts in the Healthcare market have almost doubled prior year levels, with especially strong growth in sales of support services to long term care facilities. This, combined with improvements in customer retention, has helped offset the adverse effects of continuing industry contraction in the acute care sector of the market. The Education market was adversely impacted by wind down costs of the Education food service business, as well as a modest reduction in profits from other services. The Business and Industry unit achieved sharp improvements in both revenues and profits. ServiceMaster Diversified Health Services continued to achieve excellent growth in revenues and profits due to increases in the numbers of facilities served and strong sales growth in ancillary products and services. International operations achieved solid growth in royalty fees from existing licensees while the acquisitions made in the second half of 1994 achieved modest net income after all acquisition costs and continue to perform in accordance with expectations. On a consolidated basis, cost of services rendered and products sold increased 5.8% but continued to decline as a percentage of revenue from 79.6% in 1994 to 78.3% in 1995. This decrease as a percentage of revenue reflects the changing mix of the business as Consumer Services and Diversified Health Services increase in size in relation to the overall business of the Partner- ship. The Consumer Services and Diversified Health Services units operate at a higher gross profit than the Management Services business unit but incur relatively higher levels of selling and administrative costs. Consolidated selling and administrative expenses increased 13.5% over prior year reflecting the increased volume in the Consumer Services businesses as well as the International acquisitions and as a percent of revenue increased from 13.5% in 1994 to 14.2% in 1995. This increase as a percent of revenue is also primarily attributable to the changing business mix of the Partnership. Interest expense increased over prior year reflecting increased borrowings relating to the European pest control acquisitions made during the second half of 1994 and increased seasonal borrowings, partially offset by the proceeds received from the sale of the Education food business. Minority interest expense increased 9% for the six months reflecting higher amounts associated with the minority ownership interest in the rapidly growing Consumer Services business, partially offset by the purchase of the TruGreen- ChemLawn minority interest. FINANCIAL CONDITION ------------------- Funds provided from operations for the first six months increased 20%, to $78.0 million. Due to the seasonality of the lawn care and pest control operating cycles, the Partnership has greater working capital needs in the first 8 six months of the year than in the last six months of the year, with a corresponding impact on funds provided from operations. The current ratio improved to 1.3 from 1.1 at the end of 1994. Management believes that funds generated from operations and other existing resources will continue to be adequate to satisfy the ongoing working capital needs of the Partnership. In February, 1995, the Partnership sold the Education Food business to Daka International, Inc. for $10 million in cash and a secured note of approximately $10.25 million. This note was fully collected in the second quarter. The increase in accounts and notes receivable reflects general business growth, including increased volume in the more seasonal Consumer Services businesses, and to a lessor extent, financial investments in the long term care industry. The increase in inventories is a result of normal seasonal build-ups in the pest control and lawncare business. Prepaid expenses and other assets have increased since year end but are lower than first quarter levels as the lawn care operations defer certain direct response marketing costs and other similar expenses in the first quarter and part of the second quarter and amortize them over the ensuing production season as related revenues are recognized. Deferred lawncare revenues follows this same pattern primarily due to customer prepayments. Property and equipment increased primarily due to general business growth, improvements at the Memphis headquarters facility in the Consumer Services business unit and acquisitions made in the first half of 1995. The Partnership does not have any material capital commitments at this time. The increase in intangible assets is primarily attributable to the issuance of ServiceMaster shares in connection with the purchase of the TruGreen- ChemLawn minority interest during the first quarter. Accounts payable and other liabilities increased from year end reflecting the seasonality of the Consumer Services businesses. Deferred revenues increased from year end reflecting customer prepayments at TruGreen-ChemLawn and increased volume at American Home Shield. Long-term debt increased from year end reflecting the seasonal nature of the Partnership's operating cash flows, combined with the effects of acquisitions, share repurchases and other financial investments. Minority interest increased from year end primarily reflecting WMX Technologies minority interest in the Consumer Services segment and other normal accruals of minority interest expense, offset in part by the acquisition of the TruGreen-ChemLawn minority interest. Total shareholders' equity increased by 27.2% to $390.8 million primarily as a result of the issuance of ServiceMaster shares in connection with the purchase of the TruGreen-ChemLawn minority interest and strong earnings. Cash distributions paid directly to shareholders totalled $36.9 million or $0.47 per share. Distributions of $17.7 million were also made to the trust established for the benefit of shareholders. In December, 1994, the Board of Directors of the Partnership authorized the repurchase of up to an additional $60 million of outstanding Partnership shares in the open market or in privately negotiated transactions. Shares 9 repurchased under the program will be available for general Partnership purposes, including employee benefit programs and business acquisitions. As of June 30, 1995, approximately $34 million of the total amount authorized had not yet been expended. 10
PART II. OTHER INFORMATION SERVICEMASTER LIMITED PARTNERSHIP Exhibit 11 EXHIBIT REGARDING DETAIL OF INCOME PER SHARE COMPUTATION (In thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 1995 1994 1995 1994 ---------- -------- --------- ---------- Shares used for computing primary earnings per share-- Shares outstanding on weighted average basis. . . . . . . . . . . . . 77,372 76,027 77,351 75,912 Equivalent shares-- Options and subscriptions outstanding. 1,997 1,659 1,826 1,778 ---------- -------- --------- ---------- Weighted average and equivalent shares for primary calculations . . . . . . . 79,369 77,686 79,177 77,690 ========== ======== ========= ========== Primary earnings per share. . . . . . . . $ .63 $ .52 $ 1.00 $ .84 ===== ===== ===== ===== Net income. . . . . . . . . . . . . . . . $ 50,160 $ 40,434 $ 79,040 $ 64,980 Interest on convertible debentures. . . . 475 498 950 1,098 ---------- -------- --------- ---------- Net income for fully diluted calculations $ 50,635 $ 40,932 $ 79,990 $ 66,078 ========== ======== ========= ========== Shares used for computing fully diluted earnings per share-- Shares outstanding . . . . . . . . . . 79,489 77,703 79,467 77,699 Equivalent Shares-- Shares issuable upon conversion of convertible debentures . . . . . . . . 1,635 1,751 1,635 1,751 ---------- -------- --------- ---------- Weighted average and equivalent shares for fully diluted calculations . . . . 81,124 79,454 81,102 79,450 ========== ======== ========= ========== Fully diluted earnings per share. . . . . $ .62 $ .52 $ .99 $ .83 ==== ===== ==== =====
11 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: August 14, 1995 SERVICEMASTER LIMITED PARTNERSHIP (Registrant) By: s/Ernest J. Mrozek ---------------------------------------------- Ernest J. Mrozek Senior Vice President and Chief Financial Officer 12 EX-27 2
5 1,000 6-MOS DEC-31-1995 JUN-30-1995 29,501 24,593 272,654 20,218 41,649 434,937 284,616 145,816 1,423,469 338,794 453,287 0 0 0 390,805 1,423,469 0 1,560,555 0 1,221,303 221,462 0 18,394 80,788 1,748 79,040 0 0 0 79,040 1.00 0.99