The Davey Tree Expert Company (Davey) recently filed its annual report on Form 10-K with the Securities and Exchange Commission for the year ended December 31, 2013. The financial statements included in that report reveal that Davey’s revenues grew 5% to $714 million in 2013 compared to 2012 while its net earnings fell 9.2% to $22.85 million during the same period.
The Company indicated that the decrease in earnings was attributable to lower earnings in its utilities services division offset by higher earnings in its residential commercial services division. The utilities services division accounted for 52.7% of revenues but only 32.3% of segment-level earnings from operations.
Davey reported no acquisitions in 2012 or 2013, but reported that it had invested $2.65 million on business acquisitions during the first two months of 2014.
We expect Davey to continue to be an active acquirer, focusing on residential and commercial services.