Mittwoch, 29.07.2020 22:20 von PR Newswire | Aufrufe: 86

Service Corporation International Announces Second Quarter 2020 Financial Results And Provides Guidance On The Full Year Of 2020

Zeitungsständer (Symbolbild). © AdrianHancu / iStock Editorial / Getty Images Plus / Getty Images

PR Newswire


HOUSTON, July 29, 2020 /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 2020.

Tom Ryan, the Company's President, Chairman, and Chief Executive Officer, had the following remarks on the COVID-19 pandemic:

"Our world and our Company have been transformed in many ways due to the COVID-19 pandemic yet we have remained resilient and committed to meeting the needs of our client families. We've found creative ways to serve our customers safely by harnessing technology to hold virtual services and sales seminars, mastering the skills to work remotely, and learning that anything is possible with the solid foundation of our teams. We have continued to add measures to help ensure client families can safely visit our locations and celebrate the life of their loved ones.

Our preneed sales teams have continued to overcome social distancing obstacles in certain areas of the country by leveraging technology with customers who may prefer to purchase cemetery property and merchandise from the safety of their home or setting up outdoor pop-up tents to discuss pre-planning from a safe distance. As local governments began to reopen in the back half of the quarter, we experienced an increase in the velocity of our preneed cemetery sales.

As we look forward, we will continue to embrace the improvements we have made with our customers in using technology and virtual platforms. We believe these solutions have brought value and efficiency to the customer experience. I am confident that we can build on this experience to become an even stronger company."

Second Quarter Highlights:

  • GAAP earnings per share were $0.59.
  • Adjusted earnings per share grew $0.11, or 23%, over the prior year quarter to $0.58.
  • Net cash provided by operating activities increased $106 million, or 136%, aided by tax payment deferrals.
  • Revenue grew $7.4 million over the prior year quarter.
  • Comparable funeral gross profit grew 23.4% and margin expanded 480 basis points.
  • Cemetery preneed sales grew $25.1 million, or 10.4%.

Tom Ryan, the Company's President, Chairman, and Chief Executive Officer, also commented on second quarter results:

Kurse

  

"Today we reported adjusted earnings per share growth of $0.11, or 23%, quarter over quarter. The increase in adjusted earnings per share was attributable to better than expected operating performance in our funeral and cemetery operations driven by an increase in core funeral revenue and effective cost management. Comparable preneed cemetery sales production was higher by $25 million, or 10%, compared to the prior year quarter due to an increase in sales velocity as states began to loosen gathering restrictions. Net cash provided by operating activities grew approximately $106 million over the prior year quarter, primarily due to increased operating profit and deferred tax payments. I want to thank our almost 25,000 associates that selflessly put the needs of others before their own by serving client families during their greatest time of need. We will continue to serve our client families with care and respect as we all navigate through these uncertain times."

SECOND QUARTER SUMMARY

Details of our second quarter 2020 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,


2020


2019


2020


2019

Revenue

$

820.0



$

812.6



$

1,623.0



$

1,610.8


Operating income

$

182.3



$

150.1



$

334.1



$

297.1


Net income attributable to common stockholders

$

105.5



$

72.3



$

187.4



$

151.7


Diluted earnings per share

$

0.59



$

0.39



$

1.03



$

0.82


Earnings excluding special items (1)

$

104.9



$

87.1



$

183.5



$

173.8


Diluted earnings per share excluding special items (1)

$

0.58



$

0.47



$

1.01



$

0.94


Diluted weighted average shares outstanding

179.7



185.7



181.6



185.5


Net cash provided by operating activities

$

184.3



$

78.0



$

364.3



$

262.9


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

$

184.3



$

84.4



$

364.3



$

269.3




(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 $0.59 in the second quarter of 2020 compared to $0.39 in the second quarter of 2019. The current year quarter was positively impacted by a $0.7 million pre-tax gain on divestitures. The prior year quarter was negatively impacted by an $11.8 million pre-tax loss on divestitures and a $7.6 million pre-tax loss on early extinguishment of debt, net. Diluted earnings per share excluding special items were $0.58 in the second quarter of 2020 compared to $0.47 in the second quarter of 2019. The increase of $0.11, or 23.4%, is due to higher gross profit primarily related to higher funeral services performed in the core funeral business as a result of the COVID-19 pandemic and effective cost management, partially offset by a lower funeral average per case as limitations on gatherings impacted funeral services.
  • Net cash provided by operating activities increased $106.3 million to $184.3 million in the second quarter of 2020 compared to $78.0 million in the second quarter of 2019. The second quarter of 2019 was negatively impacted by $6.4 million in legal settlement payments. Net cash provided by operating activities excluding special items was $184.3 million in the second quarter of 2020 compared to $84.4 million in the second quarter of 2019. Growth in gross profit combined with a deferral of certain income and payroll tax payments and favorable cash collections contributed to the increase in net cash provided by operating activities.

OUTLOOK FOR 2020

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