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Industry News

ServiceMaster Revenues Down, Profits Up

The ServiceMaster Co., a residential and commercial building services provider, reports that its second quarter revenues dropped four percent to $957.3 million compared to total operating revenue of $997.3 million a year ago.

However, the company posted net income of $22.3 million in the quarter, up from $18.1 million a year ago, according to the most recent quarterly report filed with the Securities and Exchange Commission.

Though most expense categories increased in the quarter, the company did reduce its cost of services rendered and products sold by 6 percent to $553.4 million, which helped operating income increase to $118 million from $114.2 million a year ago.

For the six months ended June 30, the company posted net income of $22.8 million on revenues of $1.6 billion, compared to a loss of $57.8 million on revenues of $1.63 billion for the same period a year ago.

ServiceMaster is now privately held, but continues to provide financial reporting to the SEC because the company holds some public debt.

Also, a ServiceMaster franchise in Concord, Calif. has announced the formation of an Employee Stock Ownership Plan (ESOP).

A disaster restoration and commercial cleaning/janitorial business, Service- Master Restoration Services, Service- Master Commercial Cleaning Services has 70 employees who will benefit from the ESOP. Held by Sharjo Inc., the company has locations in Hayward, Concord, Sacramento and Marin County.

No management changes are anticipated at this time, and John and Pam Sappingfield, Charles Hoage and Shawna Leon will continue to direct the company.

“Our company has experienced strong growth and I am pleased to be able to transition ServiceMaster to an ESOP where all our valued employees will be able to share in the company’s future successes while simultaneously building their financial futures. We want to reward our outstanding staff for their excellent work and loyalty to Service- Master,” said Company President, John Sappingfield.

The Sacramento location has more than doubled in size since it was purchased three years ago and the Concord location is in the top 10 in the nation in size of all ServiceMasters in the United States.

Ecolab Hires Infection Control Expert Ecolab Inc.’s Healthcare division has entered into an exclusive licensing agreement with infection control expert Philip C. Carling, MD, for his environmental hygiene patent applications.

Dr. Carling will serve in an advisory role to Ecolab, which will utilize his expertise to further drive the development of comprehensive environmental hygiene solutions and programs healthcare facilities need to combat the problem of healthcare acquired infections.

The Centers for Disease Control and Prevention (CDC) estimate that more than 1.7 million patients become infected during the course of medical treatment each year, costing the healthcare industry approximately $33 billion in direct medical costs.

“We know that improperly cleaned patient rooms can elevate the risk of infection, but solving the problem takes a consistent process and dedicated effort that includes the right tools, education and training to implement best practices across all levels,” said Dr. Carling. “I look forward to advising Ecolab as it advances its innovations in cleaning, disinfection and operational improvement in the healthcare industry.”

Dr. Carling is a professor of clinical medicine at the Boston University School of Medicine and Director of Infectious Diseases and Hospital Epidemiology at Carney Hospital in Boston and Quincy Medical Center, Quincy Massachusetts. His peer-reviewed research of high-touch surfaces in patient rooms in three studies found that only about 50 percent of the surfaces were “cleaned in compliance with institutional policies” at first testing.

However, with the implementation of training and education programs, the thoroughness of cleaning was dramatically improved. Cleaning compliance was measured by using a patent-pending solution developed by Dr. Carling that fluoresces under a black light when applied to surfaces such as bed rails, doorknobs and tray tables.

“Ecolab scientists are constantly working to develop new and innovative products and services to stop the spread of pathogens that cause infections,” said Paul B. Chaffin, vice president for Ecolab Healthcare North America. “The insight and knowledge of environmental hygiene that Dr. Carling can provide will further strengthen the solutions we are able to offer our hospital partners to improve the health and safety of their environments.”

Stoko Skin Care Tech CIMS Certified

STOKO Skin Care, a provider of away-from-home skin care/hand hygiene products, has announced that Senior Technical Manager Armand Coppotelli has successfully completed the official Cleaning Industry Management Standard (CIMS) and Certification Program of ISSA.

As a result, Coppotelli has achieved ISSA Certification Expert (I.C.E.) status, making him one of only 427 cleaning professionals currently certified to provide training and consulting services to those cleaning organizations interested in compliance and preparation for certification to CIMS.

I.C.E. professionals help their organizations and customers handle budget cuts most likely caused by the challenging state of the business environment. Custodial operations, like many other business segments, have been requested to reduce labor budgets by 5 to 10 percent. Supply price decreases alone cannot accomplish such reductions. I.C.E. professionals are trained to impart ways to evaluate, reduce, and redeploy the work force most effectively to help reduce budgets.

“We are pleased that we can now offer a whole new level of value-added service to our customers,” said Ron Shuster, product line director for STOKO Skin Care. “In addition to offering environmentally preferred products, we can now help advise and train customers interested in complying with, and preparing to certify to; CIMS.” The leading trade association for the cleaning industry worldwide, ISSA has a membership of more than 5,500.

Anpath Sees Progress, 1Q Loss

With a first quarter loss of $1.14 million, Anpath Group, Inc., manufacturer of surface disinfectants, says it is making progress in expanding its product line, despite the current state of the economy.

The Mooresville, N.C. company reported revenues of $141,000 in the first quarter, compared to $18,359 in last year’s first quarter.

Although general operating expenses for the first quarter were less than for the same period for the prior year, several one-time charges increased overall expenses in the first quarter for ANPG and its whollyowned subsidiary EnviroSystems, Inc. (ESI).

Highlights for the first quarter included:

• The selection of the Company’s multipurpose cleaner, SurfaceTru, by the Toronto Transit System;

• Expansion of the Company’s international airline business;
• Introduction of the Company’s products at the Japanese Intensive Care Medicine annual meeting;
• Increases in market share in the Korean disinfectant market.
The company also announced the first closing of a private placement to accredited investors. The closing resulted in net proceeds of approximately $482,000 after payment of fees. Subsequently, on July 1, 2009, the Company closed on additional funding of $357,500.

J. Lloyd Breedlove, president and CEO of Anpath Group, said, “the company continues to make progress on many fronts. While we remain concerned about the current economic climate, we believe our strategic initiatives will help us to meet the challenges of infection prevention in today’s global economy.

“We believe that the challenge of infection prevention is the elimination/ control of microorganisms with products that are safe for people using and applying the product, safe for people and animals in close proximity to where the product is used, safe for the surfaces upon which the product is applied, and just as important, for the environment. Failure of any one of those components has a marked affect on health and safety and increases the overall cost of infection prevention/control. Thus our core mission: Provide a healthier today and a safer tomorrow through knowledgeable people and innovative infection prevention, decontamination, and health science technologies, products and services.”

Sloan Plumbing Installed in LEED High Rise

Sloan Valve Co.’s water-efficient plumbing products and systems have been installed in the new Bay Adelaide Centre in Toronto, a LEED Gold-compliant commercial property that welcomed initial occupants to its 50-story West Tower this summer.

Indoor water use reduction features in the West Tower include Sloan’s dual-flush Flushometers and water-efficient electronic faucets. Phases two and three of the development will include mixed-use hotel /residential buildings.

John Watson, water efficiency director for Sloan, says that large commercial property owners and developers are increasingly cognizant of the financial and environmental benefits of installing waterand energy-efficient plumbing systems in their buildings.

“The savings grow exponentially with the size of the building and its occupancy,” says Watson. “Dual-flush flushometers and electronic faucets are easy ways to reduce water usage while maintaining the performance and convenience benefits that facility managers and users alike expect.”

According to Lindsay Everitt, director of communications for Goodmans LLP, one of the anchor tenants in the West Tower, Bay Adelaide’s commitment to the environment was a key reason for the law firm’s decision to lease space.

“Being an environmentally aware organization is very important to us, and it’s extremely important to our clients that we are as well,” she says. “We are pleased that the Bay Adelaide Centre offers an aggressive recycling program, green cleaning practices and energy-efficient lighting systems that will generate 50- 75 percent savings. We are committed to working closely with building management to continue to identify solutions and best practices that reduce our carbon footprint.”

Maker of Crown Mats Recognized for Exporting

Ludlow Composites Corp., maker of high-performance matting systems sold under the brand name Crown Mats and Matting, has been awarded Ohio’s 2009 Governor’s Small-Medium Business Excellence in Exporting Award.

The award is presented annually to those companies that have shown a strong commitment to increasing exports of Ohio goods and products worldwide. With more than $45 billion in exports, Ohio is now the nation’s seventh largest exporting state.

The award was presented to Bob Moran, chairman and CEO, and Randy Dobbs, president and COO, by Ohio Governor Ted Strickland. The company, founded in 1943, has been recognized by the state for their exporting activities in 1996, 2000 and again in 2005.

“This is a real honor for us to again receive the state’s highest award for exporting,” says Moran. “We long ago made a commitment to the state of Ohio as well as the professional cleaning industry and are proud to be recognized for our accomplishments.”

Moran says that in recent years, Ludlow has taken a number of steps to ensure that the corporation’s products comply with European standards. This has helped to significantly improve sales and exports to Europe and other parts of the world; a key reason the company is receiving the award.

In fact, one criterion that must be met to win the award, according to the Governor’s Office, is for a company to demonstrate not only improved sales and exports, but also the ability “to overcome obstacles or challenges in exporting” products overseas.

Moran adds that being honored during difficult economic times, which have affected Europe as much as the United States, makes the award all the more significant. “It has been a tough 15 months, no doubt about it,” he says. “But we have been through difficult times before and came out stronger and we will this time as well.”

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