SERVICE CORPORATION INTERNATIONAL Non-GAAP Financial Measures May 2, 2024 Definitions: Non-GAAP Financial Measures 2 This information should not be considered in isolation or as a substitute for related GAAP measures. Additionally, these measures as calculated by the Company may not be comparable to similarly titled measures used by other companies. ADJUSTED EPS OR DILUTED EARNINGS PER SHARE EXCLUDING SPECIAL ITEMS We use diluted earnings per share excluding special items (adjusted EPS) as an underlying ope ...

Revenue and Earnings - Revenue for Q1 2024 was $1,045.4 million, an increase of $16.7 million compared to Q1 2023[4] - Diluted earnings per share for Q1 2024 was $0.89, down from $0.93 in Q1 2023[6] - Net income for Q1 2024 was $131.3 million, a decrease of 9.3% compared to $144.8 million in Q1 2023[19] - Total revenue for Q1 2024 was $604.7 million, down 0.8% from $609.7 million in Q1 2023[21] - Gross profit margin decreased to 21.8% in Q1 2024 from 24.5% in Q1 2023[21] - Comparable funeral revenue decreased by 1.4% to $599.4 million in Q1 2024 compared to $607.9 million in Q1 2023[24] - Core funeral revenue increased by $3.7 million, or 0.7%, primarily due to a 3.9% increase in core average revenue[31] Cash Flow and Operating Activities - Net cash provided by operating activities was $220.1 million, slightly up from $219.6 million in Q1 2023[5] - Cash flows from operating activities were $220.1 million in Q1 2024, slightly up from $219.6 million in Q1 2023[19] - The forecast for net cash provided by operating activities excluding special items is between $935 million and $985 million for 2024[8] Sales and Production - Comparable preneed cemetery sales production grew by 7.8% in Q1 2024[5] - Total preneed sales decreased by 2.4% to $315.2 million in Q1 2024 from $323.0 million in Q1 2023[24] - Total recognized preneed revenue rose by $19.5 million, or 7.0%, benefiting from a $23.8 million increase in comparable preneed sales production, or 7.8%[30] - The company reported a decrease in comparable funeral services performed by 2.8% to 93,341 in Q1 2024 from 96,051 in Q1 2023[24] Capital Expenditures and Investments - Capital improvements at existing field locations are budgeted at $125 million for 2024[8] - Development of cemetery property is expected to be $165 million in 2024[8] - Total maintenance, cemetery development, and other capital expenditures are projected to be $325 million[8] - Capital expenditures for Q1 2024 were $79.8 million, compared to $77.9 million in Q1 2023[19] - Total capital expenditures decreased by $1.9 million to $79.8 million in Q1 2024, primarily due to lower spending on digital investments[34] Interest and Tax - Interest expense increased by $10.4 million to $64.4 million in Q1 2024, primarily due to higher interest rates on floating rate debt[34] - The GAAP effective income tax rate for Q1 2024 was 22.9%, down from 24.5% in the prior year quarter[34] Asset Growth - Total assets increased to $16.7 billion in Q1 2024, up from $16.4 billion in Q1 2023, representing a growth of 2.1%[17] Guidance and Forecast - The 2024 guidance for diluted earnings per share excluding special items is projected to be between $3.50 and $3.80[8] - The combined trust fund returns for the three months ended March 31, 2024, were 5.6%[35]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended DECEMBER 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | Commission file number 1-6402-1 | | | --- | --- | | SERVICE | CORPORATION INTERNATIONAL | (Exact name of registrant as specified in its charter) Texas 74-1488375 (State ...

Service Corporation International (NYSE:SCI) Q4 2023 Earnings Conference Call February 13, 2024 9:00 AM ET Company Participants Debbie Young - Director, Investor Relations Thomas Ryan - Chairman, President and Chief Executive Officer Eric Tanzberger - Senior Vice President and Chief Financial Officer Conference Call Participants A.J. Rice - UBS Tobey Sommer - Truist Securities John Ransom - Raymond James Scott Schneeberger - Oppenheimer Joanna Gajuk - Bank of America Operator Good day and welcome to the SCI ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended SEPTEMBER 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-6402-1 SERVICE CORPORATION INTERNATIONAL (Exact name of registrant as specified in its charter) Washington, D.C. 20549 Texas 74-1488375 (State or other jurisdic ...

Service Corporation International (NYSE:SCI) Q3 2023 Earnings Conference Call November 2, 2023 9:00 AM ET Company Participants Debbie Young - Director, IR Thomas Ryan - Chairman, President & CEO Eric Tanzberger - SVP & CFO Conference Call Participants Joanna Gajuk - Bank of America Merrill Lynch Daniel Hultberg - Oppenheimer John Ransom - Raymond James & Associates Operator Good morning, and welcome to the SCI Third Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please note that the event i ...

Non-GAAP Financial Measures Definitions: Non-GAAP Financial Measures This information should not be considered in isolation or as a substitute for related GAAP measures. Additionally, these measures as calculated by the Company may not be comparable to similarly titled measures used by other companies. We use diluted earnings per share excluding special items (adjusted EPS) as an underlying operational performance measure of the business and to have a basis to compare operating results to prior and future p ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended JUNE 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-6402-1 SERVICE CORPORATION INTERNATIONAL (Exact name of registrant as specified in its charter) Texas 74-1488375 (State or other jurisdiction ...

Financial Data and Key Metrics Changes - The company raised its 2023 adjusted after-tax operating cash flow guidance by $85 million, now expecting a range of $800 million to $880 million, with a midpoint of $855 million, which is a $30 million increase over the $825 million generated in 2022 [1] - Adjusted earnings per share for the second quarter was $0.83, consistent with the prior year, despite a $19 million increase in interest expense due to a more than 400 basis point rate increase in variable rate debt [83][90] - The company generated strong adjusted operating cash flow of $157 million in the quarter, exceeding expectations by more than $16 million year-over-year [119] Business Line Data and Key Metrics Changes - Total comparable funeral revenues increased by $11 million or about 2% year-over-year, driven by an increase in core funeral revenue, despite a 2% decline in comparable core funeral volume [86] - Preneed funeral sales production grew by $12 million or about 4% over the second quarter of 2022, with both core and SCI Direct channels experiencing growth [87] - Comparable cemetery revenue increased by $5 million or just over 1% compared to the prior year, with recognized preneed revenue increasing by $6 million or 2% [92] Market Data and Key Metrics Changes - The company noted a decline in contracts sold in the entry-level price-sensitive consumer segment, attributed to reduced discretionary spending due to inflation [85] - Preneed cemetery sales production was about 47% above the second quarter of 2019, representing a 10% compounded annual growth rate over four years [93] - The average revenue per service in the funeral segment grew by 4% year-over-year, despite a negative impact from an increase in the cremation mix [91] Company Strategy and Development Direction - The company is focusing on enhancing customer propositions for entry-level consumers through more consumer-friendly payment terms on cemetery property [113] - The company remains optimistic about acquisition momentum, with a target range of $75 million to $125 million for full-year acquisition investments [99] - The company is strategically managing its leverage, targeting the lower end of its leverage range of 3.5 to 4 times [127] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the high-end consumer demand remaining stable, with growth observed in large estate property sales [41] - The company anticipates low to mid-single-digit declines in funeral volume for the rest of the year, as the impact of COVID-related pull-forward slightly outpaces increasing volume trends [95] - Management expects a material reduction in cash taxes for 2023 due to a change in tax accounting methods, estimating about $80 million of lower cash taxes [128] Other Important Information - The company invested a total of $258 million during the quarter, including $70 million back into current businesses and $127 million returned to shareholders [97][125] - Corporate G&A expenses were $35 million, $11 million lower than the prior year, primarily due to lower incentive compensation expenses [126] Q&A Session Summary Question: What does the cumulative surge over the last three years in cemetery sales total, and how long might demand need to normalize? - Management acknowledged the impact of inflation on consumer behavior and indicated that they are exploring more affordable payment terms to assist consumers [5] Question: Are there any updated thoughts on the pull-forward effect? - Management noted that the pull-forward effect is still present but expected to diminish over time, with a projected volume decline of about 5% [68] Question: What is the expected impact of pricing competition in the funeral market? - Management stated that they continue to maintain price transparency and have pricing online for a significant portion of their funeral homes [52] Question: How is the company managing its cash flow and interest expenses? - Management indicated that they are effectively managing interest rate risks and targeting the lower end of their leverage range [122][127] Question: What are the expectations for cemetery margins and production? - Management expects cemetery margins to remain in the low-30s to mid-30s range, consistent with previous expectations [157]

Financial Performance Measures - The company uses adjusted EPS to compare operating results to prior and future periods[11, 20] - The company defines free cash flow as adjusted operating cash flow minus maintenance capital expenditures[3] - The company uses free cash flow to strengthen the balance sheet, repay debt, pay dividends, and repurchase common shares[3] - The company uses adjusted EBITDA to measure financial performance and evaluate the ability to service debt[23] Cash Flow Analysis (Six Months Ended June 30, 2023) - Net cash provided by operating activities excluding special items was $376.9 million[6] - Free cash flow was $216.6 million[6] - Cash flows from investing activities were $(211.1) million[6] - Cash flows from financing activities were $(181.6) million[6] 2023 Guidance - Adjusted EPS is expected to be between $3.40 and $3.60[7] - Net cash provided by operating activities excluding special items and cash taxes is expected to be between $920 million and $960 million[7] - Total maintenance, cemetery development, and other capital expenditures are expected to be between $290 million and $310 million[7]