Mittwoch, 28.10.2020 21:20 von PR Newswire | Aufrufe: 16

Service Corporation International Announces Third Quarter 2020 Financial Results and Updates 2020 Guidance

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PR Newswire


HOUSTON, Oct. 28, 2020 /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today reported results for the third quarter of 2020.

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

"As our society continues to navigate through the doubt, fears, and uncertainty surrounding COVID-19, our dedicated team of 25,000 associates continues to display tremendous courage and resolve. Our team has continued to meet our customer's desires by delivering exemplary service in spite of increased workloads and activity, leveraging technology for social distancing, and providing a safe environment for our customers to grieve, celebrate the life of a loved one or make future plans.

Today we are reporting adjusted earnings per share of $0.79, a $0.42 increase over the prior year quarter as the impact of COVID-19 has increased the number of funeral services performed as well as the number of burials in our cemeteries. As community restrictions lifted over the last few months, we have experienced unprecedented growth in our preneed cemetery sales as well as a significant improvement in the number of families who are desiring memorial services. We view this as further evidence that a considerable number of our customers continue to value what our team does best, which is helping our client families gain closure and healing through the process of grieving, remembrance, and celebration.  

We will provide further commentary regarding guidance for the remainder of the year as well as our preliminary expectations on 2021 financial performance on our conference call scheduled for Thursday, October 29th at 8 a.m. Central Time."

Third Quarter Highlights:

  • Revenue grew $149 million over the prior year quarter to $918 million.
  • GAAP earnings per share were $0.72.
  • Adjusted earnings per share grew $0.42 over the prior year quarter to $0.79.
  • Cemetery preneed sales grew $95 million, or 47%.
  • Comparable funeral gross profit grew 63% and margin expanded 750 basis points.
  • Comparable cemetery gross profit grew 64% and margin expanded 740 basis points.

THIRD QUARTER SUMMARY

Kurse

  

Details of our third 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
September 30,


Nine months ended
September 30,


2020


2019


2020


2019

Revenue

$

918.2



$

769.2



$

2,541.2



$

2,380.0


Operating income

$

223.2



$

128.6



$

557.3



$

425.7


Net income attributable to common stockholders

$

127.4



$

70.8



$

314.9



$

222.4


Diluted earnings per share

$

0.72



$

0.38



$

1.74



$

1.20


Earnings excluding special items (1)

$

140.6



$

67.9



$

324.1



$

241.7


Diluted earnings per share excluding special items (1)

$

0.79



$

0.37



$

1.80



$

1.30


Diluted weighted average shares outstanding

178.1



185.8



180.5



185.6


Net cash provided by operating activities

$

195.1



$

209.3



$

559.4



$

472.2


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

$

195.1



$

209.3



$

559.4



$

478.6




(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 $0.72 in the third quarter of 2020 compared to $0.38 in the third quarter of 2019. The current year quarter was negatively impacted by a $9.2 million increase in losses on early extinguishment of debt, net and a $2.0 million favorable change in net losses on divestitures and impairment charges. Diluted earnings per share excluding special items were $0.79 in the third quarter of 2020 compared to $0.37 in the third quarter of 2019. The increase of $0.42 is due to higher gross profit primarily related to higher funeral services and burials performed as well as strong recognized preneed revenue growth in our cemetery business.
  • Net cash provided by operating activities decreased $14.2 million to $195.1 million in the third quarter of 2020 compared to $209.3 million in the third quarter of 2019. Our remarkable growth in gross profit was more than offset by significantly higher income tax payments, mostly resulting from deferrals of tax payments from the second quarter into the third quarter of 2020 as well as unfavorable working capital changes.

REVISED OUTLOOK FOR 2020

The guidance provided below has a wider range than usual for the three month period due to the continued uncertainty around the impact of the COVID-19 pandemic. This revised outlook assumes that the impact of COVID-19 continues throughout the fourth quarter. Additionally, our outlook for net cash provided by operating activities excluding special items reflects an estimated $40 million of payroll tax payments that would have been paid in 2020, but are being deferred until 2021 and 2022 as allowed under the CARES Act.

(Dollars in millions, except per share amounts)

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