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]

Adjusted EPS Adjusted Cash Flow from Operations & Free Cash Flow Financial Outlook Our outlook for 2023 reflects management's current views and estimates regarding the impact on results from the Covid pandemic, future economic and financial market conditions, company performance and financial results, business prospects, the competitive environment, and other events. These views and estimates that support the outlook provided are subject to a number of risks and uncertainties, many of which are beyond the c ...

Service Corporation International (NYSE:SCI) Q1 2023 Results Conference Call May 2, 2023 9:00 AM ET Company Participants Debbie Young - Director of IR Tom Ryan - Chairman, President and CEO Eric Tanzberger - Senior VP and CFO Conference Call Participants Scott Schneeberger - Oppenheimer John Ransom - Raymond James Joanna Gajuk - Bank of America Tobey Sommer - Truist A.J. Rice - Credit Suisse Operator Good morning, and welcome to the Service Corporation International First Quarter 2023 Financial Results Conf ...

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 MARCH 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 or other jurisdiction ...

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, 2022 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 of i ...

Service Corporation International (NYSE:SCI) Q4 2022 Earnings Conference Call February 15, 2023 9:00 AM ET Company Participants Debbie Young - Director of Investor Relations Thomas Ryan - Chairman, President and Chief Executive Officer Eric Tanzberger - Senior Vice President and Chief Financial Officer Conference Call Participants Joanna Gajuk - Bank of America Merrill Lynch John Ransom - Raymond James & Associates, Inc. Daniel Hultberg - Oppenheimer & Co. Jasper Bibb - Truist Securities, Inc. Albert Rice - ...

Service Corporation International (NYSE:SCI) Q3 2022 Earnings Conference Call November 2, 2022 9:00 AM ET Company Participants Debbie Young - Director, Investor Relations Thomas Ryan - Chairman of the Board, Chief Executive Officer and President Eric Tanzberger - Senior Vice President and Chief Financial Officer Conference Call Participants A.J. Rice - Credit Suisse Tobey Sommer - Truist Scott Schneeberger - Oppenheimer John Ransom - Raymond James Joanna Gajuk - Bank of America Operator Good morning and wel ...

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, 2022 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 ...

Service Corporation International (NYSE:SCI) Q2 2022 Earnings Conference Call August 3, 2022 9:00 AM ET Company Participants Debbie Young - Director, IR Tom Ryan - Chairman and CEO Eric Tanzberger - SVP and CFO Conference Call Participants Joanna Gajuk - Bank of America John Ransom - Raymond James Scott Schneeberger - Oppenheimer A.J. Rice - Credit Suisse Operator Good morning and welcome to the SCI Shared Second Quarter 2022 Earnings Call. All participants will be in listen-only mode. [Operator Instruction ...