After adjusting for divested operations in the prior period, ServiceMaster announced first quarter 2001 revenues up 3 percent to $1.33 billion. On a reported basis, revenues were lower by 1 percent compared with $1.34 billion in the first quarter of 2000.

The company posted a net income of $29 million with earnings per share at 10 cents, compared with a net income of $36 million and 12 cents earnings per share in 2000. First quarter 2001 results include a 2 cents per share, or $6 million after-tax gain resulting from the repurchase of certain ServiceMaster corporate bonds. Excluding this extraordinary item, net income and earnings per share were $23 million and 8 cents, respectively.

"Although our profitability for the first quarter is below our prior year results, strong first quarter revenue and profit growth in Terminix, American Residential Services, American Home Shield and our franchise operations provide those businesses with strong momentum going into the year," said Jon Ward, Chief Executive Officer and President.