Core Insights - Service Corporation International (SCI) has experienced a stock price increase of 28.1% over the past six months, outperforming the industry growth of 26.8% and the broader S&P 500's gains of 4.4% [1] - The company closed at $88.60, nearing its 52-week high of $89.31, with technical indicators suggesting bullish sentiment as it trades above its 50-day and 200-day moving averages [4] Company Performance - SCI benefits from a vast network of funeral homes and cemeteries, providing recession resilience due to the essential nature of its services, which are largely immune to discretionary spending cuts [5] - The company has adopted a disciplined approach to expansion, investing $123 million in acquiring 10 funeral homes and two cemeteries in high-growth metropolitan markets during Q3 2024 [6] - An additional $31 million was allocated for real estate purchases in key states like California, Florida, and Texas, which are experiencing strong demographic growth [6] Strategic Acquisitions - Acquisitions allow SCI to leverage scale advantages, enhancing operational efficiencies and profitability through cost savings in procurement, marketing, and administration [7] - The strategic focus on high-growth areas enables the company to broaden its service capabilities, particularly in urban regions where demand for personalized memorial services is increasing [7] - These moves align with demographic trends, particularly the aging baby boomer population, which is expected to drive demand for funeral and cemetery services over the next two decades [8] Financial Metrics - SCI's forward 12-month price-to-earnings (P/E) ratio stands at 22.82, above the industry average of 21.46, indicating that investors may be paying a premium for the stock [10] - The company faces year-over-year challenges due to the pandemic's pull-forward effects, with a slight decline in funeral volumes reported in Q3 2024 [13] - Cemetery revenues remained flat year-over-year in Q3 2024, with a $5 million increase in endowment care trust fund income offset by declines in core revenues [14] Operational Challenges - Pre-need cemetery sales production fell by 2.5% due to a decline in large sales activity, compounded by development delays in major locations [14] - The funeral segment gross profit margins decreased by 50 basis points to 19.3% in Q3, attributed to inflationary pressures outpacing revenue growth [15] - Persistent inflation and rising fixed costs may further erode margins, limiting the company's ability to grow net income [15] Investment Outlook - SCI's expansive network and recession-proof business model solidify its leadership in the North American deathcare industry, supported by strategic acquisitions and demographic-driven opportunities [16] - However, the stock's premium valuation and near-term challenges, including inflationary pressures and flat revenue growth, may limit momentum [16]

Service Corp International SCI reported better-than-expected third-quarter adjusted EPS results on Thursday.Service Corp Intl reported quarterly earnings of 79 cents per share beat the analyst consensus estimate of 77 cents per shsare. The company reported quarterly sales of $1.014 billion which missed the analyst consensus estimate of $1.016 billion.Tom Ryan, the Company’s Chairman and CEO, commented, “Today we reported adjusted earnings per share of $0.79 and net cash provided by operating activities excl ...

Financial Performance - Consolidated net income attributable to common stockholders for the first nine months of 2024 was $367.3 million ($2.50 per diluted share), down from $398.9 million ($2.60 per diluted share) in the same period of 2023[105]. - Consolidated revenue from funeral operations increased by $6.6 million to $1,736.5 million for the nine months ended September 30, 2024, compared to $1,729.9 million for the same period in 2023[107]. - Comparable revenue from funeral operations decreased by $6.4 million to $1,714.2 million for the nine months ended September 30, 2024, primarily due to a $24.8 million decrease in non-funeral home preneed sales revenue[107]. - Consolidated funeral gross profit decreased by $34.6 million, or 9.2%, to $341.5 million for the first nine months of 2024 compared to the same period in 2023[108]. - Consolidated cemetery revenue increased by $42.8 million, or 3.3%, to $1,356.9 million for the nine months ended September 30, 2024, compared to $1,314.1 million for the same period in 2023[110]. - Comparable cemetery gross profit increased from $430.2 million to $438.6 million, while the gross profit percentage slightly decreased from 32.8% to 32.6%[111]. Cash Flow and Financing - Net cash provided by operating activities increased to $680.8 million for the nine months ended September 30, 2024, compared to $591.5 million for the same period in 2023, reflecting an increase of $89.3 million[72]. - Cash flows from investing activities increased to $484.6 million for the nine months ended September 30, 2024, up from $356.6 million in 2023, primarily due to a $89.3 million increase in cash spent on business acquisitions[73]. - Cash flows used in financing activities decreased to $230.8 million for the nine months ended September 30, 2024, compared to $262.2 million for the same period in 2023[74]. - The company had $1,351.0 million in remaining borrowing capacity under its Bank Credit Facility as of September 30, 2024[68]. - Interest expense increased by $19.6 million to $194.5 million for the nine months ended September 30, 2024, primarily due to higher interest rates and higher average balances on floating rate debt[114]. - Other income, net increased by $4.4 million to $7.0 million for the nine months ended September 30, 2024, primarily due to higher investment income from increased investment balances and new investment products[115]. Revenue and Sales - Total sales production for preneed contracts was $1,314.2 million for the nine months ended September 30, 2024, compared to $1,299.4 million for the same period in 2023[81]. - Preneed insurance-funded sales production for the nine months ended September 30, 2024, was $548.9 million, an increase from $537.4 million in the same period in 2023[80]. - Revenue recognized from backlog for the nine months ended September 30, 2024, was $565.2 million, down from $589.7 million in the same period in 2023[81]. - The backlog of insurance-funded contracts was $8.29 billion, equal to the expected proceeds from associated insurance policies[84]. Operational Metrics - As of September 30, 2024, the company operates 1,495 funeral service locations and 494 cemeteries, with a $16.0 billion backlog of future revenue from preneed sales[66]. - The leverage ratio as of September 30, 2024, was 3.78, within the targeted range of 3.5x to 4.0x, compared to a maximum allowable leverage ratio of 5.00[68]. - Total surety bonds outstanding increased to $453.8 million as of September 30, 2024, up from $296.7 million at December 31, 2023[76]. - The fair value of the total backlog comprised $4.58 billion related to cemetery contracts and $11.41 billion related to funeral contracts[84]. - The SCI trusts had a diversified allocation of approximately 60% equities, 27% fixed income securities, and 9% alternative investments as of September 30, 2024[89]. - The core average revenue per service increased by 2.1%, reflecting a rise in the core cremation rate to 56.8%[93]. Expenses and Taxation - Corporate general and administrative expenses rose to $43.7 million in the third quarter of 2024, compared to $33.2 million in the same quarter of 2023, influenced by long-term incentive compensation plan expenses[99]. - The effective tax rate for the three months ended September 30, 2024 was 21.1%, down from 24.5% for the same period in 2023, primarily due to more excess tax benefits recognized on employee share-based awards[103].

Service Corporation International (SCI) posted third-quarter 2024 results, wherein the top and bottom lines increased year over year.Management is encouraged by the favorable impact on funeral revenues resulting from its new marketing partnership with a preferred preneed insurance provider, which was launched in the third quarter. Both funeral and cemetery gross profits remained relatively stable year over year, with modest revenue improvement reflecting the company’s ongoing focus on fixed cost management. ...

For the quarter ended September 2024, Service Corp. (SCI) reported revenue of $1.01 billion, up 1.2% over the same period last year. EPS came in at $0.79, compared to $0.78 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.01 billion, representing a surprise of +0.16%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.79. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...

Service Corp. (SCI) came out with quarterly earnings of $0.79 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.78 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this funeral home and cemetery operator would post earnings of $0.86 per share when it actually produced earnings of $0.79, delivering a surprise of -8.14%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Serv ...

Conference call on Thursday, October 31, 2024, at 8:00 a.m. Central Time. HOUSTON, Oct. 30, 2024 /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today reported results for the third quarter of 2024.Third Quarter Highlights: Revenue grew $12.1 million over the third quarter of 2023 Earnings per share was $0.81 compared to $0.80 in the third quarter of 2023 Adjusted earnings per share was $0.79 compared to $0.78 in the th ...

HOUSTON, Oct. 17, 2024 /PRNewswire/ -- Service Corporation International (NYSE: SCI) announced it expects to issue a press release with financial results for the third quarter 2024 on Wednesday, October 30, 2024. A conference call will be hosted by SCI Management on Thursday, October 31, 2024. Details of the conference call are as follows: What: Service Corporation International Third Quarter 2024 Earnings Conference Call When: Thursday, October 31, 2024, at 8:00 a.m. Central Time How: Dial-In Numbers – (88 ...

Core Insights - SCI Capital Partners LP has closed a structured continuation vehicle transaction with Apollo Funds to support the growth of Morton Salt and Reddy Ice, with SCI maintaining control over both companies [1][2] Group 1: Company Overview - Morton Salt is the largest pure-play salt company globally, with a 175-year history and strong positions in various end markets and salt categories [3] - Reddy Ice is the largest packaged ice manufacturer in the U.S., with diversified sales channels and a significant installed base of machines across different geographies [3] - Reddy Ice has made its first international acquisition of Fábrica de Hielo Apodaca, S.A. de C.V., the largest ice manufacturer in Mexico [3] Group 2: Strategic Partnerships - Apollo Funds provided support through a syndicate of new institutional investors, enhancing the strategic and operational expertise available to SCI [2][4] - SCI's Managing Partner expressed optimism about collaborating with Apollo to execute long-term strategic plans for Morton Salt and Reddy Ice [4] - Apollo representatives highlighted the potential for long-term growth in Morton Salt and Reddy Ice, emphasizing a partnership-oriented approach to capital solutions [4] Group 3: Financial Advisory and Support - PJT Partners acted as financial advisor, while Gibson Dunn and Ernst & Young provided legal and tax advisory services to SCI [4] - UBS Investment Bank and Proskauer Rose LLP served as financial and legal advisors to the Apollo Funds [4] Group 4: Company Profiles - SCI Capital Partners LP focuses on market-leading companies in essential industries, aiming to build industrial companies with high barriers to entry [5] - Apollo is a global alternative asset manager with approximately $696 billion in assets under management as of June 30, 2024, providing innovative capital solutions for growth [6]

HOUSTON, Aug. 7, 2024 /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today announced that its Board of Directors has approved a quarterly cash dividend of thirty cents per share of common stock. The quarterly cash dividend announced today is payable on September 30, 2024 to shareholders of record at the close of business on September 13, 2024. While the Company intends to pay regular quarterly cash dividends for the fo ...