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Conference call on Thursday, July 31, 2025, at 8:00 a.m. Central Time.
HOUSTON, July 30, 2025 /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today reported results for the second quarter of 2025.
Second Quarter Highlights:
Tom Ryan, the Company's Chairman and CEO, commented on the second quarter performance:
"We are pleased to report adjusted earnings per share of $0.88, an impressive increase of 11% over the prior year quarter. Higher funeral revenue and effective fixed cost management drove significant growth in comparable funeral gross profit of 14.8% and solid margin expansion. Funeral revenue increased on a higher average revenue per funeral and higher core general agency revenue as we benefited from the change in our preferred preneed insurance provider.
In the cemetery segment, we continue to focus on sales production, which led to increases in both preneed and atneed sales production. A 5.3% increase in preneed sales production resulted in a modest increase in cemetery revenues during the quarter, and the preponderance of this increase will benefit us in future periods, as undeveloped property sold is constructed and recognized.
We remain committed to our long-term growth strategy to grow revenue, leverage our unparalleled scale, and invest our capital wisely to enhance shareholder value. With these results, we believe we are well positioned to achieve our 2025 targeted results. I would like to extend a very special thank you to our 25,000 associates for their ongoing commitment to providing excellent service to our client families."
Details of our second quarter 2025 financial results and the unaudited consolidated financial statements can be found in the Appendix at the end of this press release. The table below summarizes our key financial results.
(Dollars in millions, except for per share amounts) | Three months ended June 30, | Six months ended June 30, | |||||
2025 | 2024 | 2025 | 2024 | ||||
Revenue | $ 1,065.4 | $ 1,034.0 | $ 2,139.6 | $ 2,079.4 | |||
Operating income | $ 224.5 | $ 220.8 | $ 476.1 | $ 453.0 | |||
Net income attributable to common stockholders | $ 122.9 | $ 118.2 | $ 265.7 | $ 249.5 | |||
Diluted earnings per share | $ 0.86 | $ 0.81 | $ 1.84 | $ 1.69 | |||
Earnings excluding special items (1) | $ 125.5 | $ 115.9 | $ 265.1 | $ 247.8 | |||
Diluted earnings per share excluding special items (1) | $ 0.88 | $ 0.79 | $ 1.84 | $ 1.68 | |||
Diluted weighted average shares outstanding | 143.0 | 146.8 | 144.1 | 147.3 | |||
Net cash provided by operating activities | $ 166.5 | $ 196.9 | $ 477.6 | $ 417.0 | |||
Net cash provided by operating activities excluding special items (1) | $ 168.3 | $ 219.9 | $ 484.2 | $ 440.0 |
(1) | Earnings excluding special items, diluted earnings per share excluding special items, and net cash provided by operating activities excluding special items are non-GAAP financial measures. These items are also referred to as "adjusted earnings per share" and "adjusted operating cash flow". A reconciliation from net income attributable to common stockholders, diluted earnings per share, and net cash provided by operating activities in accordance with generally accepted accounting principles in the United States (GAAP) can be found later in this press release under the headings "Cash Flow and Capital Spending" and "Non-GAAP Financial Measures" in the Appendix at the end of this press release. |
CONFIRMED 2025 EARNINGS PER SHARE GUIDANCE AND
RAISED 2025 CASH FLOW GUIDANCE
Our annual guidance range for 2025 detailed below is confirmed for earnings per share of $3.70 to $4.00. Our cash flow outlook has increased to $880 million to $940 million due to lower cash taxes and stronger working capital benefits. Our outlook for diluted earnings per share from continuing operations excluding special items, at the midpoint of our guidance range, is anticipated to be within our expected long-term growth framework of 8%-12%.
(Dollars in millions, except per share amounts) | 2025 Outlook | Revised 2025 Outlook | |||||
Diluted earnings per share excluding special items (1) | $3.70 - $4.00 | $3.70 - $4.00 | |||||
Net cash provided by operating activities excluding special items and cash taxes (1) | $1,005 - $1,065 | $1,025 - $1,085 | |||||
Cash taxes expected in 2025 (at the midpoint of Diluted earnings per share guidance) | $175 | $145 | |||||
Net cash provided by operating activities excluding special items (1) | $830 - $890 | $880 - $940 | |||||
Capital improvements at existing field locations | $130 | $130 | |||||
Development of cemetery property | $160 | $160 | |||||
Digital investments and corporate | $25 | $25 | |||||
Total maintenance, cemetery development, and other capital expenditures (Maintenance capital expenditures) | $315 | $315 | |||||
(1) | Diluted earnings per share excluding special items and net cash provided by operating activities excluding special items are non-GAAP financial measures. We normally reconcile these non-GAAP financial measures from diluted earnings per share and net cash provided by operating activities; however, diluted earnings per share and net cash provided by operating activities calculated in accordance with GAAP are not currently accessible on a forward-looking basis. Our outlook for 2025 excludes the following because this information is not currently available for 2025: Expenses net of insurance recoveries related to weather events and hurricanes, gains or losses associated with asset divestitures, gains or losses associated with the early extinguishment of debt, potential tax reserve adjustments and IRS payments and/or refunds, acquisition and integration costs, system implementation and transition costs, and potential costs or cash outflows associated with estimated litigation charges or legal settlements or the recognition of receivables for insurance recoveries associated with litigation, or deferred tax payments. The foregoing items could materially impact our forward-looking diluted earnings per share and/or our net cash provided by operating activities calculated in accordance with GAAP. |
CONFERENCE CALL AND WEBCAST
We will host a conference call on Thursday, July 31, 2025, at 8:00 a.m. Central Time. A question and answer session will follow a brief presentation made by management. The conference call dial-in numbers are (888) 317-6003 (US) or (412) 317-6061 (International) with the passcode of 0839787. The conference call will also be broadcast live via the Internet and can be accessed through our website at www.sci-corp.com. A replay of the conference call will be available through August 7, 2025 and can be accessed at (877) 344-7529 (US) or (412) 317-0088 (International) with the passcode of 2965589. Additionally, a replay of the conference call will be available on our website for approximately three months.
ABOUT SERVICE CORPORATION INTERNATIONAL
Service Corporation International (NYSE: SCI), headquartered in Houston, Texas, is North America's leading provider of funeral, cemetery and cremation services, as well as final-arrangement planning in advance, serving more than 700,000 families each year. Our diversified portfolio of brands provides families and individuals a full range of choices to meet their needs, from simple cremations to full life celebrations and personalized remembrances. Our Dignity Memorial® brand is the name families turn to for professionalism, compassion, and attention to detail that is second to none. At June 30, 2025, we owned and operated 1,485 funeral service locations and 498 cemeteries (of which 310 are combination locations) in 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. For more information about Service Corporation International, please visit our website at www.sci-corp.com. For more information about Dignity Memorial®, please visit www.dignitymemorial.com.
For additional information contact: [email protected] | ||||
Investors: | Trey Bocage - Director / Investor Relations | (713) 525-3454 | ||
Media: | Jay Andrew - Assistant Vice President / Corporate Communications | (713) 525-3468 |
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
The statements in this press release that are not historical facts are forward-looking statements made in reliance on the "safe harbor" protections provided under the Private Securities Litigation Reform Act of 1995. These statements may be accompanied by words such as "believe," "estimate," "project," "expect," "anticipate," "predict," or other similar words that convey the uncertainty of future events or outcomes. The absence of these words, however, does not mean that the statements are not forward-looking. These statements are based on assumptions that we believe are reasonable; however, many important factors could cause our actual results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by us, or on our behalf. Important factors, which could cause actual results to differ materially from those in forward-looking statements include, among others, the following:
For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2024 Annual Report on Form 10-K. Copies of this document as well as other SEC filings can be obtained from our website at www.sci-corp.com. We assume no obligation and make no undertaking to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by us whether as a result of new information, future events, or otherwise.
SERVICE CORPORATION INTERNATIONAL
APPENDIX: RESULTS FOR THE SECOND QUARTER OF 2025
Consolidated Statement of Operations (Unaudited) | |||||||
(Dollars in thousands, except per share amounts) | Three Months Ended | Six Months Ended | |||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Revenue | $ 1,065,444 | $ 1,034,016 | $ 2,139,611 | $ 2,079,398 | |||
Cost of revenue | (794,006) | (776,101) | (1,576,756) | (1,547,270) | |||
Gross profit | 271,438 | 257,915 | 562,855 | 532,128 | |||
Corporate general and administrative expenses | (49,466) | (38,998) | (94,167) | (80,323) | |||
Restructuring charge | (1,575) | — | (1,575) | — | |||
Gains on divestitures and impairment charges, net | 4,062 | 1,924 | 9,033 | 1,240 | |||
Operating income | 224,459 | 220,841 | 476,146 | 453,045 | |||
Interest expense | (64,071) | (64,384) | (125,554) | (128,736) | |||
Other income, net | 3,914 | 1,725 | 7,066 | 4,187 | |||
Income before income taxes | 164,302 | 158,182 | 357,658 | 328,496 | |||
Provision for income taxes | (41,378) | (39,962) | (91,807) | (79,002) | |||
Net income | 122,924 | 118,220 | 265,851 | 249,494 | |||
Net income attributable to noncontrolling interests | (59) | (54) | (106) | (27) | |||
Net income attributable to common stockholders | $ 122,865 | $ 118,166 | $ 265,745 | $ 249,467 | |||
Basic earnings per share: | |||||||
Net income attributable to common stockholders | $ 0.87 | $ 0.81 | $ 1.86 | $ 1.71 | |||
Basic weighted average number of shares | 141,897 | 145,297 | 143,001 | 145,782 | |||
Diluted earnings per share: | |||||||
Net income attributable to common stockholders | $ 0.86 | $ 0.81 | $ 1.84 | $ 1.69 | |||
Diluted weighted average number of shares | 142,992 | 146,784 | 144,134 | 147,348 |
Consolidated Balance Sheet (Unaudited) | |||
(Dollars in thousands, except share amounts) | |||
June 30, 2025 | December 31, 2024 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 255,386 | $ 218,766 | |
Receivables, net | 85,085 | 94,341 | |
Inventories | 32,406 | 33,318 | |
Income tax receivable | 19,356 | 3,775 | |
Other | 41,908 | 27,130 | |
Total current assets | 434,141 | 377,330 | |
Preneed receivables, net of reserves of $35,582 and $35,857, respectively, and | 7,065,296 | 6,739,332 | |
Cemetery property | 2,153,281 | 2,129,404 | |
Property and equipment, net | 2,626,199 | 2,581,069 | |
Goodwill | 2,095,945 | 2,081,015 | |
Deferred charges and other assets, net of reserves of $2,389 and $2,367, | 1,328,228 | 1,317,256 | |
Cemetery perpetual care trust investments | 2,277,115 | 2,154,032 | |
Total assets | $ 17,980,205 | $ 17,379,438 | |
LIABILITIES & EQUITY | |||
Current liabilities: | |||
Accounts payable and accrued liabilities | $ 651,283 | $ 639,989 | |
Current maturities of long-term debt | 61,910 | 83,850 | |
Total current liabilities | 713,193 | 723,839 | |
Long-term debt | 4,976,111 | 4,751,448 | |
Deferred revenue, net | 1,768,910 | 1,755,170 | |
Deferred tax liability | 655,564 | 649,195 | |
Other liabilities | 528,524 | 513,480 | |
Deferred receipts held in trust | 5,507,354 | 5,162,525 | |
Care trusts' corpus | 2,270,196 | 2,145,112 | |
Equity: | |||
Common stock, $1 per share par value, 500,000,000 shares authorized, | 140,806 | 144,695 | |
Capital in excess of par value | 967,329 | 986,830 | |
Retained earnings | 437,752 | 553,701 | |
Accumulated other comprehensive gain (loss) | 13,901 | (7,221) | |
Total common stockholders' equity | 1,559,788 | 1,678,005 | |
Noncontrolling interests | 565 | 664 | |
Total equity | 1,560,353 | 1,678,669 | |
Total liabilities and equity | $ 17,980,205 | $ 17,379,438 |
Consolidated Statement of Cash Flows (Unaudited) | |||
(Dollars in thousands) | Six months ended June 30, | ||
2025 | 2024 | ||
Cash flows from operating activities: | |||
Net income | $ 265,851 | $ 249,494 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 108,257 | 101,856 | |
Amortization of intangibles | 8,441 | 8,627 | |
Amortization of cemetery property | 48,195 | 46,336 | |
Amortization of loan costs | 4,383 | 3,519 | |
Provision for expected credit losses | 5,234 | 7,644 | |
Provision for deferred income taxes | 4,621 | 7,553 | |
Gains on divestitures and impairment charges, net | (9,033) | (1,240) | |
Share-based compensation | 9,589 | 9,586 | |
Change in assets and liabilities, net of effects from acquisitions and divestitures: | |||
Decrease in receivables | 6,205 | 7,296 | |
(Increase) decrease in other assets | (16,110) | 15,969 | |
Increase (decrease) in payables and other liabilities | 11,996 | (17,104) | |
Effect of preneed sales production and maturities: | |||
Increase in preneed receivables, net and trust investments | (28,062) | (124,609) | |
Increase in deferred revenue, net | 23,785 | 53,342 | |
Increase in deferred receipts held in trust | 34,228 | 48,731 | |
Net cash provided by operating activities | 477,580 | 417,000 | |
Cash flows from investing activities: | |||
Capital expenditures | (161,201) | (170,963) | |
Business acquisitions, net of cash acquired | (28,242) | (38,490) | |
Real estate acquisitions | (5,422) | (22,151) | |
Corporate headquarters | (26,759) | (4,915) | |
Proceeds from divestitures and sales of property and equipment | 26,762 | 11,339 | |
Payments for Company-owned life insurance policies | (130) | (2,831) | |
Proceeds from Company-owned life insurance policies and other | 3,757 | 2,000 | |
Other investing activities | — | (9,814) | |
Net cash used in investing activities | (191,235) | (235,825) | |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 495,001 | 296,137 | |
Scheduled payments of debt | (12,827) | (11,665) | |
Early payments and extinguishment of debt | (305,000) | (225,000) | |
Proceeds from corporate headquarters debt facility | 17,120 | — | |
Principal payments on finance leases | (18,853) | (18,213) | |
Proceeds from exercise of stock options | 4,040 | 17,859 | |
Purchase of Company common stock | (324,023) | (176,417) | |
Payments of dividends | (91,129) | (87,328) | |
Bank overdrafts and other | (7,354) | (10,536) | |
Net cash used in financing activities | (243,025) | (215,163) | |
Effect of foreign currency | 5,800 | (2,665) | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 49,120 | (36,653) | |
Cash, cash equivalents, and restricted cash at beginning of period | 221,399 | 224,761 | |
Cash, cash equivalents, and restricted cash at end of period | $ 270,519 | $ 188,108 |
Consolidated Segment Results (See definitions of revenue line items later in this appendix.) | |||||||
(Dollars in millions, except funeral services performed and | Three months ended June 30, | Six months ended June 30, | |||||
2025 | 2024 | 2025 | 2024 | ||||
Consolidated funeral: | |||||||
Atneed revenue | $ 296.1 | $ 283.4 | $ 625.2 | $ 598.7 | |||
Matured preneed revenue | 183.5 | 178.6 | 389.3 | 368.7 | |||
Core revenue | 479.6 | 462.0 | 1,014.5 | 967.4 | |||
Non-funeral home revenue | 25.7 | 22.9 | 53.4 | 46.6 | |||
Non-funeral home preneed sales revenue | 26.4 | 29.1 | 48.6 | 58.2 | |||
Core general agency and other revenue | 59.7 | 51.8 | 114.4 | 98.3 | |||
Total revenue | $ 591.4 | $ 565.8 | $ 1,230.9 | $ 1,170.5 | |||
Gross profit | $ 116.0 | $ 100.4 | $ 270.0 | $ 232.3 | |||
Gross profit percentage | 19.6 % | 17.7 % | 21.9 % | 19.8 % | |||
Funeral services performed | 87,014 | 86,031 | 184,868 | 180,397 | |||
Average revenue per service | $ 5,807 | $ 5,636 | $ 5,777 | $ 5,621 | |||
(Dollars in millions) | Three months ended June 30, | Six months ended June 30, | |||||
2025 | 2024 | 2025 | 2024 | ||||
Consolidated cemetery: | |||||||
Atneed property revenue | $ 37.0 | $ 35.3 | $ 74.2 | $ 70.3 | |||
Atneed merchandise and service revenue | 74.0 | 72.4 | 149.1 | 147.1 | |||
Total atneed revenue | 111.0 | 107.7 | 223.3 | 217.4 | |||
Recognized preneed property revenue | 220.4 | 225.1 | 409.1 | 424.8 | |||
Recognized preneed merchandise and service revenue | 105.8 | 100.0 | 204.3 | 198.3 | |||
Total recognized preneed revenue | 326.2 | 325.1 | 613.4 | 623.1 | |||
Core revenue | 437.2 | 432.8 | 836.7 | 840.5 | |||
Other cemetery revenue | 36.9 | 35.4 | 72.1 | 68.4 | |||
Total revenue | $ 474.1 | $ 468.2 | $ 908.8 | $ 908.9 | |||
Gross profit | $ 155.5 | $ 157.5 | $ 292.9 | $ 299.8 | |||
Gross profit percentage | 32.8 % | 33.6 % | 32.2 % | 33.0 % |
Comparable Funeral Results
The table below details comparable funeral results of operations ("same store") for the three months ended June 30, 2025 and 2024. We consider comparable funeral operations to be those businesses owned for the entire period beginning January 1, 2024 and ending June 30, 2025.
(Dollars in millions, except average revenue per service and average revenue per contract sold) | Three months ended June 30, | ||||||
2025 | 2024 | Var | % | ||||
Comparable funeral revenue: | |||||||
Atneed revenue (1) | $ 286.1 | $ 280.5 | $ 5.6 | 2.0 % | |||
Matured preneed revenue (2) | 179.9 | 177.6 | 2.3 | 1.3 % | |||
Core revenue (3) | 466.0 | 458.1 | 7.9 | 1.7 % | |||
Non-funeral home revenue (4) | 25.6 | 22.8 | 2.8 | 12.3 % | |||
Non-funeral home preneed sales revenue (5) | 26.4 | 29.1 | (2.7) | (9.3) % | |||
Core general agency and other revenue (6) | 58.8 | 51.6 | 7.2 | 14.0 % | |||
Total comparable revenue | $ 576.8 | $ 561.6 | $ 15.2 | 2.7 % | |||
Comparable gross profit | $ 114.6 | $ 99.8 | $ 14.8 | 14.8 % | |||
Comparable gross profit percentage | 19.9 % | 17.8 % | 2.1 % | ||||
Comparable funeral services performed: | |||||||
Atneed | 44,281 | 45,092 | (811) | (1.8) % | |||
Matured preneed | 25,856 | 26,140 | (284) | (1.1) % | |||
Total core | 70,137 | 71,232 | (1,095) | (1.5) % | |||
Non-funeral home | 14,485 | 14,121 | 364 | 2.6 % | |||
Total comparable funeral services performed | 84,622 | 85,353 | (731) | (0.9) % | |||
Comparable core cremation rate | 57.1 % | 56.9 % | 0.2 % | ||||
Total comparable cremation rate (7) | 64.3 % | 63.9 % | 0.4 % | ||||
Comparable funeral average revenue per service: | |||||||
Atneed | $ 6,461 | $ 6,221 | $ 240 | 3.9 % | |||
Matured preneed | 6,958 | 6,794 | 164 | 2.4 % | |||
Total core | 6,644 | 6,431 | 213 | 3.3 % | |||
Non-funeral home | 1,767 | 1,615 | 152 | 9.4 % | |||
Total comparable average revenue per service | $ 5,809 | $ 5,634 | $ 175 | 3.1 % | |||
Comparable funeral preneed sales production: | |||||||
Total preneed sales | $ 299.3 | $ 328.1 | $ (28.8) | (8.8) % | |||
Core contracts sold | 35,534 | 39,026 | (3,492) | (8.9) % | |||
Non-funeral home contracts sold | 21,080 | 24,481 | (3,401) | (13.9) % | |||
Core average revenue per contract sold | $ 6,607 | $ 6,487 | $ 120 | 1.8 % | |||
Non-funeral home average revenue per contract sold | $ 3,060 | $ 3,060 | $ — | — % |
(1) | Atneed revenue represents merchandise and services sold and delivered or performed once death has occurred. |
(2) | Matured preneed revenue represents merchandise and services sold on a preneed contract through our core funeral homes, which have been delivered or performed as well as the related merchandise and service trust fund income and other insurance benefits. |
(3) | Core revenue represents the sum of merchandise and services sold on an atneed contract or preneed contract, which were delivered or performed once death has occurred through our core funeral homes. |
(4) | Non-funeral home revenue represents services sold on a preneed or atneed contract through one of our non-funeral home sales channels (e.g. SCI Direct) and performed once death has occurred. |
(5) | Non-funeral home preneed sales revenue represents travel protection, net and merchandise sold on a preneed contract that is delivered before death has occurred and general agency revenue from our non-funeral home sales channel. |
(6) | Core general agency and other revenue primarily comprises core general agency revenue, which is commissions we receive from third-party insurance companies for life insurance policies sold to preneed customers for the purpose of funding preneed arrangements and core travel protection preneed sales, net. |
(7) | Total comparable cremation rate includes the impact of cremation services through our non-funeral sales channel (e.g. SCI Direct). |
Comparable Cemetery Results
The table below details comparable cemetery results of operations ("same store") for the three months ended June 30, 2025 and 2024. We consider comparable cemetery operations to be those businesses owned for the entire period beginning January 1, 2024 and ending June 30, 2025.
(Dollars in millions) | Three months ended June 30, | ||||||
2025 | 2024 | Var | % | ||||
Comparable cemetery revenue: | |||||||
Atneed property revenue | $ 36.8 | $ 35.3 | $ 1.5 | 4.2 % | |||
Atneed merchandise and service revenue | 73.5 | 72.3 | 1.2 | 1.7 % | |||
Total atneed revenue (1) | 110.3 | 107.6 | 2.7 | 2.5 % | |||
Recognized preneed property revenue | 217.5 | 225.2 | (7.7) | (3.4) % | |||
Recognized preneed merchandise and service revenue | 105.5 | 99.9 | 5.6 | 5.6 % | |||
Total recognized preneed revenue (2) | 323.0 | 325.1 | (2.1) | (0.6) % | |||
Core revenue (3) | 433.3 | 432.7 | 0.6 | 0.1 % | |||
Other revenue (4) | 36.7 | 35.5 | 1.2 | 3.4 % | |||
Total comparable revenue | $ 470.0 | $ 468.2 | $ 1.8 | 0.4 % | |||
Comparable gross profit | $ 153.3 | $ 157.6 | $ (4.3) | (2.7) % | |||
Comparable gross profit percentage | 32.6 % | 33.7 % | (1.1) % | ||||
Comparable cemetery preneed and atneed sales production: | |||||||
Property | $ 268.8 | $ 252.3 | $ 16.5 | 6.5 % | |||
Merchandise and services | 209.3 | 202.5 | 6.8 | 3.4 % | |||
Discounts and other | (3.7) | (0.4) | (3.3) | (825.0) % | |||
Preneed and atneed sales production | $ 474.4 | $ 454.4 | $ 20.0 | 4.4 % | |||
Preneed sales production | $ 366.5 | $ 348.0 | $ 18.5 | 5.3 % | |||
Recognition rate (5) | 91.3 % | 95.2 % |
(1) | Atneed revenue represents property, merchandise, and services sold and delivered or performed once death has occurred. |
(2) | Recognized preneed revenue represents property, merchandise, and services sold on a preneed contract, which were delivered or performed as well as the related merchandise and service trust fund income. |
(3) | Core revenue represents the sum of property, merchandise, and services that have been delivered or performed as well as the related merchandise and service trust fund income. |
(4) | Other revenue is primarily related to endowment care trust fund income, royalty income, and interest and finance charges earned from customer receivables on preneed installment contracts. |
(5) | Represents the ratio of current period core revenue stated as a percentage of current period preneed and atneed sales production. |
Other Financial Results
Cash Flow and Capital Spending
(Dollars in millions) | Three months ended June 30, | Six months ended June 30, | |||||
2025 | 2024 | 2025 | 2024 | ||||
Net cash provided by operating activities | $ 166.5 | $ 196.9 | $ 477.6 | $ 417.0 | |||
Legal settlement payments | 0.5 | 23.0 | 0.7 | 23.0 | |||
Restructuring charge payments | 1.3 | — | 5.9 | — | |||
Net cash provided by operating activities excluding special items | $ 168.3 | $ 219.9 | $ 484.2 | $ 440.0 | |||
Cash taxes included in net cash provided by operating activities excluding special items | $ 94.3 | $ 10.0 | $ 99.2 | $ 11.8 |
Excluding an expected increase in cash taxes paid of $84.3 million, net cash provided by operating activities excluding special items increased $32.7 million to $262.6 million. The increase is attributable to $3.6 million of higher operating income, $20.4 million of higher cemetery installment receipts and $22.8 million of payroll, payables, and other working capital sources, partially offset by $14.1 million of higher cash interest. The higher cash interest was primarily due to the timing of interest payments and the reduction of our bank credit facility, both of which were associated with our September 2024 bond financing.
(Dollars in millions) | Three months ended June 30, | Six months ended June 30, | |||||
2025 | 2024 | 2025 | 2024 | ||||
Capital improvements at existing field locations | $ 29.1 | $ 29.4 | $ 49.8 | $ 54.3 | |||
Development of cemetery property | 34.7 | 39.9 | 76.0 | 78.6 | |||
Digital investments and corporate | 5.1 | 13.1 | 9.9 | 19.5 | |||
Total maintenance, cemetery development, and other capital expenditures (Maintenance capital expenditures) | $ 68.9 | $ 82.4 | $ 135.7 | $ 152.4 | |||
Growth capital expenditures/construction of new funeral service locations | 14.1 | 9.2 | 25.5 | 18.6 | |||
Total capital expenditures | $ 83.0 | $ 91.6 | $ 161.2 | $ 171.0 |
Total capital expenditures decreased in the current quarter by $8.6 million, primarily due to expected lower spend on digital investments and corporate and timing of cemetery property development projects.
Trust Fund Returns
Total trust fund returns include realized and unrealized gains and losses and dividends and are shown gross without netting of certain fees. A summary of our consolidated trust fund returns as of June 30, 2025 is set forth below:
Three Months | Six Months | |||
Preneed funeral | 8.4 % | 7.6 % | ||
Preneed cemetery | 8.6 % | 8.1 % | ||
Cemetery perpetual care | 8.0 % | 7.6 % | ||
Combined trust funds | 8.4 % | 7.8 % |
Non-GAAP Financial Measures
Earnings excluding special items and diluted earnings per share excluding special items shown above are non-GAAP financial measures. We believe these non-GAAP financial measures provide a consistent basis for comparison between quarters and years, and better reflect the performance of our core operations, as they are not influenced by certain income or expense items not affecting operations. We also believe these measures help facilitate comparisons to our competitors' operating results.
Set forth below is a reconciliation of our reported net income attributable to common stockholders to earnings excluding special items and our GAAP diluted earnings per share to diluted earnings per share excluding special items. We do not intend for this information to be considered in isolation or as a substitute for other measures of performance prepared in accordance with GAAP.
(Dollars in millions, except diluted EPS) | Three months ended June 30, | ||||||
2025 | 2024 | ||||||
Net Income | Diluted EPS | Net Income | Diluted EPS | ||||
Net income attributable to common stockholders, as reported | $ 122.9 | $ 0.86 | $ 118.2 | $ 0.81 | |||
Pre-tax reconciling items: | |||||||
Gains on divestitures and impairment charges, net | (4.1) | (0.03) | (1.9) | (0.01) | |||
Legal settlement | 6.4 | 0.04 | — | — | |||
Restructuring charge | 1.6 | 0.01 | — | — | |||
Tax reconciling items: | |||||||
Tax effect from significant items | (0.9) | — | 0.5 | — | |||
Change in uncertain tax reserves and other | (0.4) | — | (0.9) | (0.01) | |||
Earnings excluding special items and diluted earnings per share excluding special items | $ 125.5 | $ 0.88 | $ 115.9 | $ 0.79 | |||
Diluted weighted average shares outstanding | 143.0 | 146.8 |
(Dollars in millions, except diluted EPS) | Six months ended June 30, | ||||||
2025 | 2024 | ||||||
Net Income | Diluted EPS | Net Income | Diluted EPS | ||||
Net income attributable to common stockholders, as reported | $ 265.7 | $ 1.84 | $ 249.5 | $ 1.69 | |||
Pre-tax reconciling items: | |||||||
Gains on divestitures and impairment charges, net | (9.0) | (0.06) | (1.2) | (0.01) | |||
Legal settlement | 6.4 | 0.04 | — | — | |||
Restructuring charge | 1.6 | 0.01 | — | — | |||
Tax reconciling items: | |||||||
Tax effect from significant items | 0.4 | 0.01 | 0.4 | — | |||
Change in uncertain tax reserves and other | — | — | (0.9) | — | |||
Earnings excluding special items and diluted earnings per share excluding special items | $ 265.1 | $ 1.84 | $ 247.8 | $ 1.68 | |||
Diluted weighted average shares outstanding | 144.1 | 147.3 |
SOURCE Service Corporation International
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