Outdoor Home Services Holdings LLC

The company has also increased annual wages across its labor workforce, and we expect further wage increases over the next year. The company has restarted its door-to-door selling program, which was suspended during the start of COVID-19 pandemic. We expect the company to increase its spending on media and digital marketing channels in line with its strategy of shifting its sales mix to the online channel. We believe these costs combined with inflationary pressures will result in adjusted EBITDA margins approximately 30 bps lower in the next 12 months despite pricing gains and operating efficiencies. Additionally, TruGreen has completed 36 tuck-in acquisitions since 2018 in the lawn care business, with average acquisition spending totaling about $20 million annually. We believe

...The company performed well through the COVID-19 pandemic and we continue to expect further revenue expansion over the next 12 months. We forecast Outdoor Home Services Holdings LLC's (d/b/a TruGreen's) total revenues up approximately 2% over the next 12 months, driven by increased prices across services, modest customer additions, and incremental contributions from bolt-on acquisitions. Lawn care was classified as an essential service across most of the country, which minimized the disruption to operations from measures imposed to curb the spread of COVID-19. The company's revenue grew approximately 5% in 2021. Although revenues from residential volumes grew slower than customer additions in the first half of 2021, the company raised wages in second-quarter 2021 to deal with staffing constraints and maintain sufficient employees. We expect the company to continue making further increases in 2022 to meet required demand and reduce order cancellations. The company's efforts for favorable...

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