Financial Data and Key Metrics Changes - Adjusted earnings per share for Q3 2024 was $0.79, a slight increase from $0.78 in the prior year [6] - Gross profit from both funeral and cemetery segments remained stable, with a net $0.01 increase in earnings per share due to lower share count and tax rate offset by increased corporate expenses [6][20] - Adjusted operating cash flow was reported at $269 million, an increase of over $41 million or 18% year-over-year [20] Business Line Data and Key Metrics Changes - Comparable funeral revenues increased by $7 million, or about 1%, with core average growing by 2% despite a 1% decline in core funeral volume [8] - Comparable cemetery revenue was flat, with a $5 million increase in other revenue offset by a $5 million decrease in core revenue [11] - Pre-need funeral sales production decreased by $22 million or about 7% compared to Q3 2023, primarily due to a transition to a new insurance provider [10] Market Data and Key Metrics Changes - The company invested $123 million in acquisitions during the quarter, adding 10 funeral homes and two cemeteries in major metropolitan markets [7] - The company also invested an additional $31 million in real estate transactions for expanding its footprint in existing markets [7] Company Strategy and Development Direction - The company aims to return to earnings per share growth towards the higher end of its historical guidance of 8% to 12% in 2025, anticipating stabilization in funeral volumes and growth in pre-need cemetery sales [16] - The company is optimistic about capturing incremental value for shareholders due to favorable demographic trends impacting the industry [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in stabilizing funeral volumes and returning to traditional growth levels for pre-need sales in 2025 [31][34] - The anticipated increase in cash taxes in 2025 is expected to revert to a more normalized level, impacting future cash flow [21] Other Important Information - The company returned nearly $65 million to shareholders in Q3 2024 through dividends and share repurchases [24] - The company’s liquidity at the end of the quarter was approximately $1.5 billion, with a slight increase in leverage to 3.78 times net debt to EBITDA [26] Q&A Session Summary Question: Discussion on cemetery pre-need sales and recognized revenue into 2025 - Management indicated that recognized revenue in Q4 would be slightly below last year but expects stabilization and traditional growth levels in 2025 [31] Question: Impact of ongoing construction at Rose Hills on large sales - Management noted that large sales at Rose Hills have decreased due to ongoing construction but expect growth opportunities in 2025 [32] Question: Confidence in flattish volume growth in 2025 - Management anticipates that demographic trends and a decrease in pull-forward effects will support flattish volume growth in 2025 [34] Question: Insights on the new insurance relationship and sales force efficiency - Management acknowledged lower efficiency due to the transition to a new insurance provider but expects stabilization and growth in the sales force in 2025 [36] Question: Pipeline for acquisitions and willingness of sellers to sell - Management expressed excitement about the acquisition pipeline, particularly in major metropolitan areas, and indicated a healthy interest from sellers [37] Question: Clarification on organic funeral volume growth - Management confirmed that the anticipated flattish volume growth is organic and does not include contributions from acquisitions [40] Question: Comparison of large pre-need sales to 2019 levels - Management noted significant growth in large sales production compared to 2019, despite recent year-over-year declines [42] Question: Insights on funeral margins and the impact of the new insurance contract - Management expects improvements in funeral margins in 2025, with the new insurance contract contributing positively [44] Question: Anticipation of positive trends in volumes - Management believes that the diminishing pull-forward effects and demographic shifts will lead to more positive trends in volumes [48] Question: Management changes and succession planning - Management discussed ongoing succession planning and the elevation of responsibilities for executives as part of a long-term strategy [53]

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].

Core Insights - Service Corporation International (SCI) reported third-quarter 2024 results with both top and bottom lines showing year-over-year growth [1][4] - The company is optimistic about funeral revenues due to a new marketing partnership with a preferred preneed insurance provider launched in Q3 [1][3] - Total revenues reached $1,014 million, up from $1,001.9 million in the same quarter last year, exceeding the Zacks Consensus Estimate of $1,012 million [5] Financial Performance - Adjusted earnings per share (EPS) were 79 cents, consistent with the Zacks Consensus Estimate and an increase from 78 cents in the prior year [4] - Gross profit was $252.3 million, slightly down from $253.7 million year-over-year, with corporate general and administrative costs rising to $43.7 million from $33.2 million [5][6] - Operating income decreased to $212.4 million from $223 million in the previous year [6] Segment Performance - Consolidated funeral revenues increased to $566 million from $554.8 million, with a 1.3% rise in total comparable funeral revenues [7] - Core funeral revenues grew by 1%, supported by a 2.1% increase in core average revenues, despite a 1.1% decline in core funeral services performed [8] - Consolidated cemetery revenues were $448 million, slightly up from $447.1 million, with total comparable cemetery revenues remaining flat year-over-year [10] Strategic Initiatives - The company invested $123 million to acquire 10 funeral homes and two cemeteries, along with an additional $31 million for real estate transactions [2] - For 2025, SCI aims to return to its long-term growth target of 8-12%, focusing on revenue growth and strategic capital investments [3] Future Outlook - For Q4 2024, management anticipates adjusted EPS of $1-$1.10, indicating an 8-18% growth from the previous year's 93 cents [13] - Full-year 2024 adjusted EPS is expected to be in the range of $3.47-$3.57, revised from the previous guidance [15] - The company raised its full-year 2024 adjusted operating cash flow guidance midpoint from $930 million to $950 million, with total maintenance capital expenditures expected to be around $325 million [16]

Financial Performance - For the quarter ended September 2024, Service Corp. reported revenue of $1.01 billion, reflecting a year-over-year increase of 1.2% [1] - Earnings per share (EPS) for the quarter was $0.79, slightly up from $0.78 in the same quarter last year [1] - The reported revenue met the Zacks Consensus Estimate of $1.01 billion, resulting in a surprise of +0.16% [1] - The company did not deliver an EPS surprise, as the consensus EPS estimate was also $0.79 [1] Key Metrics - Total comparable funeral average revenue per service was $5,669, slightly below the two-analyst average estimate of $5,683.42 [3] - Funeral services performed totaled 85,743, exceeding the average estimate of 84,223 based on two analysts [3] - Cemetery revenues reached $448 million, compared to the three-analyst average estimate of $455.50 million, representing a year-over-year change of +0.2% [3] - Funeral revenues amounted to $566 million, surpassing the three-analyst average estimate of $556.86 million, with a year-over-year change of +2% [3] - Gross profit from funeral services was $107.90 million, exceeding the average estimate of $104.04 million [3] - Gross profit from cemetery services was $144.80 million, below the average estimate of $149.38 million [3] Stock Performance - Shares of Service Corp. have returned -2.4% over the past month, while the Zacks S&P 500 composite has increased by +1.8% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]

分组1 - Service Corp. reported quarterly earnings of $0.79 per share, matching the Zacks Consensus Estimate, and showing a slight increase from $0.78 per share a year ago [1] - The company posted revenues of $1.01 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.16%, compared to $1 billion in revenues a year ago [2] - Service Corp. shares have increased approximately 11.7% since the beginning of the year, while the S&P 500 has gained 22.3% [3] 分组2 - The earnings outlook for Service Corp. is mixed, with the current consensus EPS estimate for the coming quarter at $1.05 on revenues of $1.09 billion, and $3.52 on revenues of $4.18 billion for the current fiscal year [7] - The Funeral Services industry, to which Service Corp. belongs, is currently ranked in the bottom 11% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Core Insights - Service Corporation International (SCI) reported a revenue increase of $12.1 million in Q3 2024 compared to Q3 2023, reaching $1,014.0 million [2][6] - The diluted earnings per share rose to $0.81 from $0.80 year-over-year, while adjusted earnings per share increased to $0.79 from $0.78 [2][8] - Net cash provided by operating activities grew by 16% to $263.8 million, up from $227.8 million in the prior year [2][8] Financial Performance - Revenue for the nine months ended September 30, 2024, was $3,093.4 million, compared to $3,044.0 million in the same period of 2023 [6] - Operating income for Q3 2024 was $212.4 million, down from $223.0 million in Q3 2023 [6] - Net income attributable to common stockholders was $117.8 million in Q3 2024, compared to $122.0 million in Q3 2023 [6] Cash Flow and Investments - Net cash provided by operating activities excluding special items increased by 18% to $269.0 million in Q3 2024 [2][8] - The company spent $123 million on acquisitions during the quarter, significantly higher than $33 million in Q3 2023, acquiring 10 funeral homes and 2 cemeteries [4][5] - The company also invested $31 million in real estate transactions for the expansion of funeral homes and cemeteries [4] Market Outlook - For Q4 2024, the company expects adjusted earnings per share to be between $1.00 and $1.10, indicating growth of approximately 8-18% compared to $0.93 in Q4 2023 [9] - The full-year 2024 adjusted operating cash flow guidance has been raised to a range of $940 million to $960 million, up from the previous range of $900 million to $960 million [10][11] - The company aims to return to the high end of its long-term growth framework of 8-12% in 2025 [5]

Company Overview - Service Corporation International (SCI) is North America's leading provider of funeral, cemetery, and cremation services, serving over 600,000 families annually [2] - As of September 30, 2024, SCI operates 1,495 funeral service locations and 494 cemeteries across 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico [2] Upcoming Financial Results - SCI is set to release its financial results for the third quarter of 2024 on October 30, 2024 [1] - A conference call will be held on October 31, 2024, at 8:00 a.m. Central Time to discuss these results [1] Conference Call Details - Dial-in numbers for the conference call are (888) 317-6003 for domestic callers and (412) 317-6061 for international callers, with the code 8508625 [1] - A replay of the call will be available until November 7, 2024, and the webcast will be accessible for at least 90 days on SCI's website [2]

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 ...

Service Corporation International (SCI) posted second-quarter 2024 results, with the top line increasing year over year and beating the Zacks Consensus Estimate. However, the bottom line declined year over year and missed the consensus mark. Quarter in Detail SCI posted adjusted earnings of 79 cents per share, which missed the Zacks Consensus Estimate of 86 cents. The metric declined from the year-ago quarter's earnings of 83 cents. While increased gross profit from the cemetery segment and a lower share co ...