2 Hot Movers of Yesterday: Vereit, (NYSE:VER), ServiceMaster Global Holdings, (NYSE:SERV)

Vereit Inc (NYSE:VER) gained 1.67% and closed in the last trading session at $9.15. The company’s price range for the trading day was $8.96 to $9.19.  The 52-Week range of the stock is $6.68 – $9.37. The company’s Market capitalization is $8.27B with the total Outstanding Shares of 904.79M. The stock has a one-year performance down -1.19% and a positive weekly performance at 2.12%. Vereit declared its operating results for the three months ending March 31, 2016, in addition to progress on its business plan.

First Quarter 2016 Highlights

  • Achieved $0.21 AFFO per diluted share
  • Accomplished $295.2 million of dispositions at an average cash cap rate of 6.1%
  • Reduced Net Debt to Normalized EBITDA from 7.0x to 6.7x and raised liquidity to $2.1 billion
  • Raised Cole Capital® new equity capital raise 24% quarter-over-quarter
  • Maintained dividend of $0.1375 per share or $0.55 on an annual basis
  • Re-affirming AFFO per diluted share guidance range of $0.75 - $0.80

ServiceMaster Global Holdings, Inc. (NYSE:SERV) ended at $35.42 with decline of 8.24%. The stock traded in the last session between $34.28 and $36.46 whereas, it’s 52-Week High Price is $42.21 with respect to its 52 Week Low Price of $32.10. The company’s Market Capitalization stands at $4.80B with 135.80M are the outstanding shares of the company. ServiceMaster Global Holdings declared unaudited first-quarter 2016 results. The company stated a year-over-year revenue increase of 6 percent driven by organic growth at American Home Shield (“AHS”) and in Terminix’s pest service line in addition to the impact of acquiring Alterra Pest Control, LLC (“Alterra”) on November 10, 2015.

First-quarter 2016 net income was $39 million, or $0.28 per share, as compared to $28 million, or $0.20 per share, in the same period in 2015. First-quarter 2015 net income includes a loss on extinguishment of debt of $8 million, net of tax.

First-quarter 2016 adjusted net income was $47 million, or $0.34 per share, as compared to $45 million, or $0.33 per share, for the same period in 2015.

First-quarter 2016 Adjusted EBITDA was $127 million, a year-over-year decrease of $6 million, or 5 percent, mainly driven by a $10 million decrease in Adjusted EBITDA at AHS offset by a $5 million increase in Adjusted EBITDA at Terminix. The Adjusted EBITDA reduction this quarter reflects increases of about $6 million in technology costs, mainly investments related to the ServSmartSM program, $11 million in sales/marketing spend and $10 million of contractor claim costs at AHS, partially offset by $26 million from the conversion of higher revenue.


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