Financial Data and Key Metrics Changes - The company has achieved a compounded earnings growth of approximately 14.5% from 2004 to 2019, exceeding its targeted growth framework of 8-12% [2] - The company anticipates a more normalized earnings growth framework of 8-12% moving forward into 2026 [4] Business Line Data and Key Metrics Changes - The SCI Direct segment generates about $200 million of the company's $4.2 billion revenue, with a significant focus on pre-need production [16] - The company has seen a 13-14% growth in matured pre-need production in the third quarter, indicating a positive trend in this segment [19] Market Data and Key Metrics Changes - The company expects a flat to slightly down volume in the near term, with a decline from 6% to 2.5% over the past few years [5] - The demographic trends indicate that the oldest baby boomers will start impacting the market significantly around 2029, leading to a gradual increase in volumes over the next decade [7][8] Company Strategy and Development Direction - The company is focusing on capital deployment and executing a clustering strategy to maximize operational leverage [2] - There is a strong emphasis on managing consumer preferences towards cremation, with a current cremation mix of 57-58% expected to stabilize around 75-80% in the long term [10][11] - The company is actively pursuing acquisition opportunities, targeting a spend of $75 million-$125 million to expand its footprint [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of COVID-19 on volumes and expects a normalization of business operations moving forward [3] - The company is optimistic about future growth driven by demographic trends and strategic initiatives [4][7] Other Important Information - The company has shifted from trust-funded pre-need products to insurance-funded products, enhancing economic terms and general agency commissions [48][50] - The company has invested approximately $160 million in capital to enhance cemetery offerings, creating tiered inventory options [14] Q&A Session Summary Question: What impact do you expect from the decision to stop delivering pre-need merchandise at the time of sale? - The company expects a near-term headwind from this shift but anticipates growth in matured pre-need production over the next decade as the backlog fills out [19] Question: How do you see the opportunity for consolidation in the market? - The company sees a strong pipeline of acquisition opportunities and aims to increase its market share from 17% to around 25-30% [34][36] Question: Have you seen any trade-downs in service selection among consumers? - The company has not observed significant trade-downs, particularly among the upper-middle and upper-income consumers [31][32]

Financial Data and Key Metrics Changes - The company has targeted an 8-12% earnings growth framework since 2004, achieving a compounded earnings growth of approximately 14.5% from 2004 to 2019 [2][4] - The company expects to continue executing on a normalized basis within the 8-12% earnings growth framework for 2026 and beyond [4][24] - The company reported a revenue of $4.2 billion, with SCI Direct contributing about $200 million [18][24] Business Line Data and Key Metrics Changes - The core funeral business has a cremation mix of approximately 57%-58%, with expectations to stabilize around 75%-80% in the long term [11][12] - The company has seen a decline in volumes from 6% in 2022 to a flat to slightly down expectation for 2025, indicating a normalization post-COVID [5][8] - Cemetery pre-need production is bifurcated into core sales and large sales, with large sales representing about 12%-14% of total cemetery pre-need production [25][26] Market Data and Key Metrics Changes - The demographic trends indicate that the oldest baby boomers will turn 80 next year, which is expected to gradually impact the company's volumes starting in 2029 [6][7] - The company anticipates a gradual increase in volumes of about 0.5% to 2% over the next decade as the baby boomer demographic begins to impact the market [8][9] Company Strategy and Development Direction - The company is focusing on capital deployment and executing a clustering strategy to maximize operating leverage [2][4] - The company is actively pursuing acquisitions, targeting a spend of $75 million-$125 million, with a goal to increase market share from 17%-18% to around 25%-30% [36][39] - The company is shifting from trust-funded pre-need products to insurance-funded products to enhance economic terms and improve revenue [51][54] Management's Comments on Operating Environment and Future Outlook - Management noted that the impact of COVID-19 has subsided, leading to a normalization of volumes and a focus on long-term growth strategies [3][5] - The company is optimistic about future growth driven by demographic trends and strategic acquisitions, despite current market challenges [36][41] Other Important Information - The company has invested approximately $160 million in capital to enhance cemetery offerings and create tiered inventory options [15][16] - The company has shifted its sales strategy to defer the delivery of certain pre-need merchandise, which is expected to create a backlog but ultimately lead to growth in the pre-need matured line item [20][21] Q&A Session Summary Question: What are the demographic trends impacting the business? - Management highlighted that the oldest baby boomers will turn 80 next year, which will gradually impact healthcare and the company's services starting in 2029 [6][7] Question: How is the company addressing the shift towards cremation? - The company has a cremation mix of about 57%-58% and is managing this trend by providing diverse offerings and educating consumers about cremation options [11][12][14] Question: What is the impact of the decision to stop delivering pre-need merchandise at the time of sale? - Management explained that this decision is expected to create a backlog but will lead to growth in the pre-need matured line item over the next decade [20][21] Question: How does the company plan to grow through acquisitions? - The company has a strong pipeline of acquisition opportunities and aims to increase its market share through strategic tuck-in acquisitions [36][39] Question: What are the expectations for EPS growth moving forward? - The company targets an 8-12% EPS growth, with 5-7% coming from base business growth and the remainder from share buybacks and acquisitions [46][47]