Montag, 15.02.2021 21:30 von PR Newswire | Aufrufe: 46

Service Corporation International Announces Fourth Quarter 2020 Financial Results And Provides 2021 Guidance

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PR Newswire


HOUSTON, Feb. 15, 2021 /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today reported results for the fourth quarter of 2020.

Tom Ryan, the Company's President, Chairman, and Chief Executive Officer, commented on COVID-19 and fourth quarter results:

"As we experienced another quarter that will be remembered for its significant challenges, our associates can look back with pride for the innovative ways in which our teams stepped up to serve our communities, our customers, and each other. The steadfast dedication and courage of our teams has been nothing short of heroic over these many months and is reflective of our compassionate culture at SCI. I want to say to our entire SCI family, and particularly to our frontline associates, thank you for your courage and resolve, and for continuing to focus on the importance of the safety of our client families, communities, and colleagues.

Today we are reporting fourth quarter earnings per share of $1.15 and adjusted earnings per share of $1.13, a $0.53 increase over adjusted earnings per share for the prior year quarter. The growth was driven by elevated COVID-19 mortality which resulted in an increase in both funeral services performed and burials in our cemeteries. We also continued to benefit from a more efficient cost structure that helped drive significant improvement in both funeral and cemetery margins. Comparable preneed cemetery sales production continued to be strong and was higher by $40 million, or 16%, compared to the prior year quarter due to a higher velocity of contracts sold. Net cash provided by operating activities grew approximately $88 million over the prior year quarter, primarily due to increased operating profit."

Fourth Quarter Highlights:

  • Revenue grew $120 million, or 14%, over the prior year quarter to $970 million.
  • GAAP earnings per share were $1.15.
  • Adjusted earnings per share grew $0.53 over the prior year quarter to $1.13.
  • Net cash provided by operating activities increased $88 million, or 56%, to $245 million.
  • Comparable funeral gross profit grew 44% and margin expanded 640 basis points to 27.5%.
  • Comparable cemetery gross profit grew 42% and margin expanded 680 basis points to 39.0%.
  • Cemetery preneed sales production grew $40 million, or 16%.

FOURTH QUARTER AND FULL YEAR SUMMARY

Details of our fourth quarter 2020 financial results and the consolidated financial statements can be found in the Appendix at the end of this press release. The table below summarizes our key financial results.

Kurse

  

(Dollars in millions, except for per share amounts)

Three Months Ended

December 31,


Twelve Months Ended

December 31,


2020


2019


2020


2019

Revenue

$

970.3



$

850.8



$

3,511.5



$

3,230.8


Operating income

$

285.4



$

240.9



$

842.8



$

666.6


Net income attributable to common stockholders

$

201.0



$

147.2



$

515.9



$

369.6


Diluted earnings per share

$

1.15



$

0.79



$

2.88



$

1.99


Earnings excluding special items (1)

$

197.7



$

111.3



$

521.7



$

352.9


Diluted earnings per share excluding special items (1)

$

1.13



$

0.60



$

2.91



$

1.90


Diluted weighted average shares outstanding

174.6



185.2



179.0



185.5


Net cash provided by operating activities

$

244.9



$

156.6



$

804.4



$

628.8


Net cash provided by operating activities excluding special items (1)

$

244.9



$

156.6



$

804.4



$

635.2




(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.

 

  • Diluted earnings per share were $1.15 in the fourth quarter of 2020 compared to $0.79 in the fourth quarter of 2019. The prior year quarter was positively impacted by a $48.1 million pre-tax gain on divestitures. Diluted earnings per share excluding special items were $1.13 in the fourth quarter of 2020 compared to $0.60 in the fourth quarter of 2019. The increase of $0.53 is due to higher gross profit from higher funeral services and burials performed, as well as strong growth in cemetery recognized preneed revenue. Our current period results also benefited from lower shares outstanding, lower interest expense, and a lower adjusted effective tax rate compared to the prior year quarter.
  • Net cash provided by operating activities increased $88.3 million to $244.9 million in the fourth quarter of 2020 compared to $156.6 million in the fourth quarter of 2019 primarily from robust growth in gross profit combined with lower cash interest payments and deferred payroll taxes (as allowed under the CARES Act). These increases in operating cash were partially offset by higher cash tax payments associated with higher earnings for the current period as well as other unfavorable working capital changes.

OUTLOOK FOR 2021

The guidance provided below has a wider range than usual due to the continued uncertainty around the impact of the COVID-19 pandemic. This outlook assumes that the impact of COVID-19 will continue into the first half of 2021. Our outlook for net cash provided by operating activities excluding special items reflects an estimated $20 million of payroll tax payments in 2021 that were deferred from 2020 as allowed under the CARES Act. We will also incur normal payroll taxes in 2021 of approximately $40 million (which we were able to defer in 2020). These combined items represent a $60 million of additional cash outflows when compared to 2020.

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