SERVICE CORPORATION INTERNATIONAL HOUSTON, July 29, 2015 /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today reported results for the second quarter 2015. Our unaudited consolidated financial statements can be found at the end of this press release. The table below summarizes our key financial results:
(In millions,
except for per
share amounts) Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2015 2014 2015 2014
---- ---- ---- ----
Revenues $754.4 $746.8 $1,502.5 $1,492.3
Operating income $127.6 $144.7 $268.7 $252.1
Net income
attributable to
common
stockholders $52.6 $25.9 $114.0 $67.0
Diluted earnings
per share $0.25 $0.12 $0.55 $0.31
Earnings from
continuing
operations
excluding
special items(1) $57.1 $49.6 $122.8 $110.3
Diluted earnings
per share from
continuing
operations
excluding
special items(1) $0.28 $0.23 $0.59 $0.51
Diluted weighted
average shares
outstanding 206.7 216.0 207.2 216.6
Net cash provided
by operating
activities $93.7 $42.9 $282.5 $170.8
Net cash provided
by operating
activities
excluding
special items(1) $101.9 $98.4 $299.7 $262.1
(1) Earnings from continuing
operations excluding special
items, diluted earnings per
share from continuing
operations excluding special
items, and net cash provided by
operating activities excluding
special items are non-GAAP
financial measures. A
reconciliation to net income,
diluted earnings per share, and
net cash provided by operating
activities computed 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".
Quarterly Highlights:
-- Diluted earnings per share from continuing operations excluding special
items grew 21.7% to $0.28 in the second quarter of 2015 over the same
period in 2014 primarily driven by strong performance from our cemetery
segment, which more than offset the loss of earnings from properties
that have been subsequently divested in connection with the Stewart
acquisition.
-- Consolidated funeral gross profit declined $6.1 million in the second
quarter of 2015 compared to the second quarter of 2014. However,
comparable funeral gross profits grew $1.6 million which helped offset
the loss of $7.7 million in gross profits contributed in the prior year
quarter by properties that have been subsequently divested.
-- Consolidated cemetery gross profit increased $16.8 million in the second
quarter of 2015 over the prior year quarter and the gross margin
percentage increased 470 basis points to 26.5%. Higher gross profits
driven by a double-digit percentage increase in preneed cemetery
property sales more than offset the loss of $2.5 million in gross
profits contributed in the prior year quarter by properties that have
been subsequently divested.
-- Net cash provided by operating activities excluding special items
increased 3.6% to $101.9 million in the second quarter of 2015 compared
to $98.4 million in the prior year quarter due primarily to higher cash
receipts associated with an increase in cemetery preneed sales
production.
-- During the second quarter, we returned $98.6 million to our shareholders
through a combination of share repurchases and dividends.
Tom Ryan, the Company's President and Chief Executive Officer, commented on the second quarter of 2015:
"We are very proud of the operating performance during the second quarter, which resulted in a 22% improvement in normalized earnings per share. This represents our fifth consecutive quarter of double-digit percentage growth in normalized earnings per share. Robust preneed cemetery sales production continues to be the primary factor driving our earnings ahead of our expectations. Through six months, normalized earnings per share has increased 16% and adjusted operating cash flows has also increased 14%. Coming off of this performance, we have revised upwards the midpoint of our annual earnings and cash flow guidance and we expect to continue to deploy capital strategically to increase shareholder value in the back half of 2015."
REVIEW OF RESULTS FOR SECOND QUARTER AND FIRST HALF OF 2015
-----------------------------------------------------------
Consolidated Segment Results
(See definitions of revenue line items later in this earnings release.)
(In millions,
except funeral
services
performed and
average revenue
per service) Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2015 2014 2015 2014
---- ---- ---- ----
Funeral:
--------
Atneed revenue $269.8 $273.6 $566.0 $565.9
Matured preneed
revenue 136.6 151.4 291.9 313.8
Core revenue 406.4 425.0 857.9 879.7
Recognized
preneed
revenue 25.4 20.8 48.5 42.5
Other revenue 39.7 33.7 72.8 66.4
---- ---- ---- ----
Total revenue $471.5 $479.5 $979.2 $988.6
Gross profit $91.7 $97.8 $216.4 $217.0
Gross margin
percentage 19.4% 20.4% 22.1% 22.0%
Funeral
services
performed 77,969 80,846 165,279 168,910
Average revenue
per service $5,212 $5,257 $5,191 $5,208
Cemetery:
---------
Atneed revenue $75.7 $77.6 $151.2 $154.0
Recognized
preneed
revenue 167.2 153.6 299.1 280.0
----- ----- ----- -----
Core revenue 242.9 231.2 450.3 434.0
Other revenue 40.0 36.0 73.0 69.7
---- ---- ---- ----
Total revenue $282.9 $267.2 $523.3 $503.7
Gross profit $75.0 $58.2 $128.3 $105.1
Gross margin
percentage 26.5% 21.8% 24.5% 20.9%
Comparable Funeral Results
The table below details comparable funeral results of operations ("same store") for the three months ended June 30, 2015 and 2014. We consider comparable operations to be those owned for the entire period beginning January 1, 2014 and ending June 30, 2015.
(Dollars in millions,
except average revenue
per service and
average revenue per
contract sold) Three Months Ended June 30,
---------------------------
2015 2014
---- ----
Comparable revenue:
Atneed revenue(1) $267.5 $262.0
Matured preneed
revenue(2) 136.3 143.0
----- -----
Core revenue(3) 403.8 405.0
Recognized preneed
revenue(4) 24.9 20.7
Other revenue(5) 39.7 32.8
---- ----
Total comparable
revenue $468.4 $458.5
Comparable gross profit $92.7 $91.1
Comparable gross margin
percentage 19.8% 19.9%
Comparable funeral
services performed 77,172 77,198
Comparable average
revenue per service $5,233 $5,246
Comparable average
revenue per service,
excluding the impact
of foreign currency
fluctuations $5,330 $5,289
Comparable preneed
sales production:
Sales excluding
terminally imminent
contracts $193.3 $186.9
Sales of terminally
imminent contracts 16.9 24.0
----
Total preneed sales $210.2 $210.9
Total preneed contracts
sold 44,894 44,590
Average revenue per
contract sold $4,682 $4,731
Average revenue per
contract sold,
excluding the impact
of foreign currency
fluctuations $4,757 $4,766
(1) Atneed revenue represents
merchandise and services sold once
death has occurred.
(2) Matured preneed revenue represents
merchandise and services primarily
sold on a preneed contract but
delivered and/or performed once
death has occurred.
(3) Core revenue represents merchandise
and services recognized once death
has occurred.
(4) Recognized preneed revenue
represents merchandise and travel
protection sold on a preneed
contract and delivered before
death has occurred
(5) Other revenue consists primarily of
General Agency revenue, which are
commissions we receive from third-
party insurance companies for life
insurance policies sold to preneed
customers for the purpose of
funding preneed arrangements.
-- Comparable funeral revenue increased by $9.9 million in the second
quarter of 2015 compared to 2014 mainly driven by an increase in
recognized preneed revenue and higher General Agency revenue.
-- Comparable average revenue per service decreased by 0.2%. Excluding an
unfavorable Canadian currency impact, the average revenue per service
grew 0.8%. Our comparable cremation rate increased to 51.3% in the
second quarter of 2015 compared to 50.7% in the second quarter of 2014.
-- Comparable gross profit increased $1.6 million, or 1.8%, compared to the
prior year quarter while the gross margin percentage remained relatively
flat compared to the prior year quarter. The improvement was led by the
revenue increases described above.
-- Preneed funeral sales production, excluding terminally imminent
contracts in both periods, increased $6.4 million for the quarter or
3.4%. A terminally imminent contract is used when a family chooses to
make arrangements several weeks or a few months in advance of need. In
mid-2014, we began to record more of these sales directly into atneed
sales instead of recording them as preneed sales that quickly convert
into atneed business.
Comparable Cemetery Results
The table below details comparable cemetery results of operations ("same store") for the three months ended June 30, 2015 and 2014. We consider comparable operations to be those owned for the entire period beginning January 1, 2014 and ending June 30, 2015.
(Dollars in millions) Three Months Ended June 30,
---------------------------
2015 2014
---- ----
Comparable revenue:
Atneed revenue(1) $74.7 $72.3
Recognized preneed
revenue(2) 166.3 147.6
----- -----
Core revenue(3) 241.0 219.9
Other revenue(4) 39.7 34.5
Total comparable revenue $280.7 $254.4
Comparable gross profit $74.6 $56.2
Comparable gross margin
percentage 26.6% 22.1%
Comparable preneed and
atneed sales production:
Property $190.6 $167.8
Merchandise and services 140.7 127.9
Discounts (37.7) (34.2)
-----
Preneed and atneed sales
production $293.6 $261.5
Recognition rate(5) 82% 84%
(1) Atneed revenue represents
property, merchandise, and
services sold once death has
occurred.
(2) Recognized preneed revenue
represents property sold on a
preneed contract and merchandise
and services sold on a preneed
contract that have been
delivered or performed.
(3) Core revenue represents property,
merchandise, and services that
have been delivered or
performed.
(4) Other revenue is primarily
related to merchandise and
service trust fund income,
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 recognition
stated as a percentage of
current period sales production.
-- Comparable cemetery revenue grew $26.3 million, or 10.3%, in the second
quarter of 2015 compared to 2014 primarily from an increase in preneed
cemetery property sales production and higher trust fund income.
-- Preneed cemetery sales production increased $31.6 million, or 16.9%, in
the current quarter compared to same period last year. This increase was
driven by strong growth in the number of preneed property contracts sold
as well as a healthy increase in the average sale, which was partially
offset by an unfavorable Canadian currency impact.
-- Comparable cemetery gross profit increased $18.4 million and the
adjusted gross margin percentage increased 450 basis points to 26.6% in
the current quarter. The gross profit improvement was driven by the
increases in cemetery property sales stated above as well as a $5.0
million increase in trust fund income. This increase was partially
offset by higher selling costs associated with the higher preneed sales
production.
Other Financial Results
-- General and administrative expenses decreased $12.7 million to $33.6
million. The prior year included $14.1 million of costs related to the
integration of Stewart and $3.9 million of system integration and other
costs. Excluding these one-time costs, general and administrative
expenses increased $5.3 million over the prior year, which is primarily
due to the permanent costs associated with the increased scale of the
combined SCI and Stewart entity.
Cash Flow and Capital Spending
Set forth below is a reconciliation of our reported net cash provided by operating activities prepared in accordance with GAAP to net cash provided by operating activities excluding special items (or sometimes referred to as adjusted operating cash flow). 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.
(In millions) Three Months Ended Six Months Ended
June 30, June 30,
2015 2014 2015 2014
---- ---- ---- ----
Net cash provided by
operating
activities, as
reported $93.7 $42.9 $282.5 $170.8
Premiums paid on
early extinguishment - 24.8 - 24.8
Stewart acquisition
and transition costs - 18.4 - 47.0
Legal defense fees
and other matters - 10.0 - 10.3
Excess tax benefits
from share-based
awards 7.5 5.8 13.0 12.5
Other 0.7 (3.5) 4.2 (3.3)
---- ----
Net cash provided by
operating activities
excluding special
items $101.9 $98.4 $299.7 $262.1
====== ===== ====== ======
-- Net cash provided by operating activities excluding special items
increased $3.5 million to $101.9 million for the second quarter compared
to $98.4 million in the prior year quarter due primarily to higher cash
receipts associated with the increase in cemetery comparable preneed
sales production, an increase in net trust fund withdrawals, and a $9.1
million decrease in cash interest paid. These increases were partially
offset by an increase in payroll funding as a result of the timing of
the Independence Day holiday and anticipated higher cash tax payments.
-- A summary of our capital expenditures is set forth below:
Three Months Ended Six Months Ended
(In
millions) June 30, June 30,
--------
2015 2014 2015 2014
---- ---- ---- ----
Capital
improvements
at
existing
locations $23.1 $17.5 $40.3 $29.3
Development
of
cemetery
property 12.5 10.4 21.9 20.7
Construction
of new
funeral
home
facilities 0.8 4.6 2.5 7.4
--- ---
Total
capital
expenditures $36.4 $32.5 $64.7 $57.4
===== ===== ===== =====
TRUST FUND RETURNS
Total trust fund returns include realized and unrealized gains and losses and dividends. A summary of our consolidated trust fund returns for the three and six months ended June 30, 2015 is set forth below:
Three Months Six Months
------------ ----------
Preneed funeral 0.3% 2.5%
Preneed cemetery 0.3% 2.8%
Cemetery perpetual care (0.2)% 1.6%
Combined trust funds 0.1% 2.3%
OUTLOOK FOR 2015
Our updated outlook for potential earnings and cash flow in 2015 is as follows:
(In millions except per
share amounts) Previous 2015 Updated 2015
Outlook Annual Guidance
Diluted earnings per share
from continuing operations
excluding special items (1) $1.16 to $1.28 $1.22 to $1.28
Net cash provided by
operating activities
excluding special items (1) $450 to $500 $475 to $500
Capital improvements at
existing facilities and
cemetery development
expenditures $130 to $140 $130 to $140
(1) Diluted earnings per share from
continuing operations excluding
special items and net cash provided
by operating activities excluding
special items are non-GAAP
financial measures. We historically
reconcile these non-GAAP financial
measures to 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 guidance for 2015
excludes the following because this
information is not currently
available for 2015: Gains or losses
associated with asset divestitures,
gains or losses associated with the
early extinguishment of debt,
potential tax reserve adjustments,
acquisition and transition costs,
and potential costs associated with
settlements of litigation or the
recognition of receivables for
insurance recoveries associated
with litigation. The foregoing
items could materially impact our
forward-looking diluted EPS and
net cash provided by operating
activities calculated in accordance
with GAAP, consistent with the
historical disclosures found in
this press release under the
headings "Cash Flow and Capital
Spending" and "Non-GAAP financial
measures".
This outlook reflects management's current views and estimates regarding future economic and financial market conditions, company performance and financial results, business prospects, the competitive environment, and other events. This outlook is subject to a number of risks and uncertainties, many of which are beyond the control of SCI, that could cause actual results to differ materially from the potential results highlighted above. A further list and description of these risks and uncertainties and other matters can be found later in this press release under "Cautionary Statement on Forward-Looking Statements".
NON-GAAP FINANCIAL MEASURES
Earnings from continuing operations excluding special items and diluted earnings per share from continuing operations excluding special items (or sometimes referred to as normalized earnings per share) shown above are non-GAAP financial measures. We believe these non-GAAP financial measures provide a consistent basis for comparison between quarters and better reflect the performance of our core operations, as they are not influenced by certain income or expense items not affecting continuing 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 from continuing operations excluding special items and our GAAP diluted earnings per share to diluted earnings per share from continuing operations 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.
(In millions, except
diluted EPS) Three Months Ended June 30,
---------------------------
2015 2014
---- ----
Net Diluted Net Diluted
Income EPS Income EPS
------ --- ------ ---
Net income attributable
to common stockholders,
as reported $52.6 $0.25 $25.9 $0.12
After-tax reconciling items:
Losses (gains) on
divestitures and
impairment charges, net 4.6 0.03 (7.0) (0.05)
Acquisition and
transition costs - - 9.1 0.05
Loss on early
extinguishment of debt - - 18.4 0.09
Other (0.1) - 3.2 0.02
Earnings from continuing
operations and diluted
earnings per share
excluding special items $57.1 $0.28 $49.6 $0.23
===== ===== ===== =====
Diluted weighted average shares
outstanding (in thousands) 206,746 215,989
(In millions, except
diluted EPS) Six Months Ended June 30,
-------------------------
2015 2014
---- ----
Net Diluted Net Diluted
Income EPS Income EPS
------ --- ------ ---
Net income attributable
to common stockholders,
as reported $114.0 $0.55 $67.0 $0.31
After-tax reconciling items:
Losses (gains) on
divestitures and
impairment charges, net 5.7 0.03 (5.8) (0.03)
Acquisition and
transition costs 1.8 0.01 19.2 0.09
Loss on early
extinguishment of debt - - 18.4 0.08
Legal defense fees and
other matters - - 7.7 0.04
Other 1.3 - 3.8 0.02
Earnings from continuing
operations and diluted
earnings per share
excluding special items $122.8 $0.59 $110.3 $0.51
====== ===== ====== =====
Diluted weighted average shares
outstanding (in thousands) 207,221 216,593
Conference Call and Webcast
We will host a conference call on Thursday, July 30, 2015, at 9:00 a.m. Central Time. A question and answer session will follow a brief presentation made by management. The conference call dial-in number is (847) 619-6441 with the passcode of 40238041. 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 13, 2015 and can be accessed at (630) 652-3042 with the passcode of 40238041#. Additionally, a replay of the conference call will be available on our website for approximately ninety days.
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," or "predict," that convey the uncertainty of future events or outcomes. 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:
-- Our affiliated funeral and cemetery trust funds own investments in
equity securities, fixed income securities, and mutual funds, which are
affected by market conditions that are beyond our control.
-- We may be required to replenish our affiliated funeral and cemetery
trust funds in order to meet minimum funding requirements, which would
have a negative effect on our earnings and cash flow.
-- Our ability to execute our strategic plan depends on many factors, some
of which are beyond our control.
-- Our credit agreements contain covenants that may prevent us from
engaging in certain transactions.
-- If we lost the ability to use surety bonding to support our preneed
funeral and preneed cemetery activities, we may be required to make
material cash payments to fund certain trust funds.
-- The funeral home and cemetery industry is competitive.
-- Increasing death benefits related to preneed funeral contracts funded
through life insurance or annuity contracts may not cover future
increases in the cost of providing a price-guaranteed funeral service.
-- The financial condition of third-party insurance companies that fund our
preneed funeral contracts may impact our future revenues.
-- Unfavorable results of litigation could have a material adverse impact
on our financial statements.
-- Unfavorable publicity could affect our reputation and business.
-- If the number of deaths in our markets declines, our cash flows and
revenues may decrease.
-- If we are not able to respond effectively to changing consumer
preferences, our market share, revenues, and profitability could
decrease.
-- The continuing upward trend in the number of cremations performed in
North America could result in lower revenues and gross profit.
-- Our funeral home and cemetery businesses are high fixed-cost businesses.
-- Regulation and compliance could have a material adverse impact on our
financial results.
-- Cemetery burial practice claims could have a material adverse impact on
our financial results.
-- A number of years may elapse before particular tax matters, for which we
have established accruals, are audited and finally resolved.
-- Declines in overall economic conditions beyond our control could reduce
future potential earnings and cash flows and could result in future
impairments to goodwill and/or other intangible assets.
-- Any failure to maintain the security of the information relating to our
customers, their loved ones, our associates, and our vendors could
damage our reputation, could cause us to incur substantial additional
costs and to become subject to litigation, and could adversely affect
our operating results.
-- Our Canadian business exposes us to operational, economic, and currency
risks.
-- Our level of indebtedness could adversely affect our ability to raise
additional capital to fund our operations, limit our ability to react to
changes in the economy or our industry, and prevent us from fulfilling
our obligations under our indebtedness.
-- Failure to maintain effective internal control over financial reporting
could adversely affect our results of operations, investor confidence,
and our stock price.
For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2014 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 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.
About Service Corporation International
Service Corporation International (NYSE: SCI), headquartered in Houston, Texas, is North America's leading provider of deathcare products and services. At June 30, 2015, we owned and operated 1,550 funeral homes and 467 cemeteries (of which 262 are combination locations) in 45 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. Through our businesses, we market the Dignity Memorial® brand which offers assurance of quality, value, caring service, and exceptional customer satisfaction. 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:
Investors: Debbie Young -Director /Investor
Relations (713) 525-9088
Media: Marianne Gooch- Managing Director/
Corporate Communications (713) 525-9167
SERVICE CORPORATION INTERNATIONAL
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2015 2014 2015 2014
---- ---- ---- ----
Revenues $754,354 $746,760 $1,502,471 $1,492,255
Costs and expenses (587,624) (590,716) (1,157,792) (1,170,151)
-------- -------- ---------- ----------
Gross profit 166,730 156,044 344,679 322,104
General and
administrative
expenses (33,568) (46,307) (68,623) (102,137)
(Losses) gains on
divestitures and
impairment charges,
net (5,582) 34,994 (7,361) 32,182
------ ------ ------ ------
Operating income 127,580 144,731 268,695 252,149
Interest expense (42,982) (46,307) (85,921) (91,303)
Loss on early
extinguishment of debt - (29,158) - (29,158)
Other (expense) income,
net (109) 50 (167) 1,586
---- --- ---- -----
Income from continuing
operations before
income taxes 84,489 69,316 182,607 133,274
Provision for income
taxes (31,007) (37,357) (67,660) (60,064)
------- ------- ------- -------
Net income from
continuing operations 53,482 31,959 114,947 73,210
Net losses from
discontinued
operations, net of tax (390) (178) (390) (38)
---- ---- ---- ---
Net income 53,092 31,781 114,557 73,172
Net income attributable
to noncontrolling
interests (497) (5,859) (587) (6,148)
Net income attributable
to common stockholders $52,595 $25,922 $113,970 $67,024
======= ======= ======== =======
Basic earnings per share:
Net income attributable
to common stockholders $0.26 $0.12 $0.56 $0.32
Basic weighted average
number of shares 202,466 212,390 202,966 212,613
======= ======= ======= =======
Diluted earnings per share:
Net income attributable
to common stockholders $0.25 $0.12 $0.55 $0.31
Diluted weighted
average number of
shares 206,746 215,989 207,221 216,593
======= ======= ======= =======
Dividends declared per
share $0.10 $0.08 $0.20 $0.16
===== ===== ===== =====
SERVICE CORPORATION INTERNATIONAL
CONSOLIDATED BALANCE SHEET
(In thousands, except share amounts)
June 30, 2015 December 31, 2014
------------- -----------------
ASSETS
Current assets:
Cash and cash
equivalents $199,096 $177,335
Receivables, net 92,192 109,050
Inventories 29,846 29,697
Other 40,036 80,774
------ ------
Total current assets 361,170 396,856
------- -------
Preneed funeral
receivables, net and
trust investments 1,829,071 1,843,023
Preneed cemetery
receivables, net and
trust investments 2,355,034 2,306,669
Cemetery property 1,743,950 1,739,216
Property and
equipment, net 1,846,579 1,861,403
Goodwill 1,811,842 1,810,853
Deferred charges and
other assets 629,436 624,248
Cemetery perpetual
care trust
investments 1,347,753 1,341,376
--------- ---------
$11,924,835 $11,923,644
=========== ===========
LIABILITIES & EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $420,926 $453,042
Current maturities of
long-term debt 290,016 90,931
Income taxes 14,323 8,035
Total current
liabilities 725,265 552,008
Long-term debt 2,769,861 2,963,794
Deferred preneed
funeral revenues 550,663 540,164
Deferred preneed
cemetery revenues 1,123,686 1,062,381
Deferred tax liability 436,602 448,824
Other liabilities 502,130 502,553
Deferred preneed
receipts held in
trust 3,137,017 3,148,884
Care trusts' corpus 1,345,876 1,327,658
Stockholders' equity:
Common stock, $1 per
share par value,
500,000,000 shares
authorized,
208,205,991 and
205,458,331 shares
issued, respectively,
and 201,751,035 and
204,866,770 shares
outstanding,
respectively 201,751 204,867
Capital in excess of
par value 1,158,121 1,186,304
Accumulated deficit (79,971) (81,859)
Accumulated other
comprehensive income 44,668 59,414
------ ------
Total common
stockholders' equity 1,324,569 1,368,726
Noncontrolling
interests 9,166 8,652
----- -----
Total Equity 1,333,735 1,377,378
---------
$11,924,835 $11,923,644
=========== ===========
SERVICE CORPORATION INTERNATIONAL
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
Six Months Ended
December 31,
------------
2015 2014
Cash flows from operating activities:
Net income $114,557 $73,172
Adjustments to reconcile net income to net cash
provided by operating activities:
Loss from discontinued operations,
net of tax 390 38
Losses on early extinguishment of
debt - 29,158
Premiums paid on early
extinguishment of debt - (24,804)
Depreciation and amortization 68,899 70,595
Amortization of intangible assets 15,983 19,346
Amortization of cemetery property 26,027 25,790
Amortization of loan costs 4,865 4,048
Provision for doubtful accounts 3,431 4,541
(Benefit) provision for deferred
income taxes (8,466) 26,484
Losses (gains) on divestitures and
impairment charges, net 7,361 (32,182)
Share-based compensation 7,284 6,423
Excess tax benefits from share-
based awards (13,003) (12,521)
Change in assets and liabilities, net of effects
from acquisitions and divestitures:
Decrease (increase) in receivables 2,276 (7,241)
Increase in other assets (761) (22,351)
Increase in payables and other
liabilities 33,932 9,437
Effect of preneed funeral production and maturities:
Decrease in preneed funeral
receivables, net and trust
investments 16,144 23,963
Increase (decrease) in deferred
preneed funeral revenue 14,247 (11,965)
Decrease in deferred preneed
funeral receipts held in trust (37,366) (22,550)
Effect of cemetery production and deliveries:
Increase in preneed cemetery
receivables, net and trust
investments (28,272) (31,736)
Increase in deferred preneed
cemetery revenue 62,482 43,478
Decrease in deferred preneed
cemetery receipts held in trust (7,506) (1,323)
Other 3 2,017
--- -----
Net cash provided by operating
activities from continuing
operations 282,507 171,817
Net cash used in operating
activities from discontinued
operations - (1,000)
--- ------
Net cash provided by operating
activities 282,507 170,817
Cash flows from investing activities:
Capital expenditures (64,724) (57,379)
Acquisitions (36,726) (7,575)
Proceeds from divestitures and
sales of property and equipment,
net 8,268 154,893
Net withdrawals (deposits) of
restricted funds and other 8,066 (12,225)
----- -------
Net cash (used in) by provided
investing activities from
continuing operations (85,116) 77,714
Net cash provided by (used in)
investing activities from
discontinued operations 987 (361)
--- ----
Net cash (used in) provided by
investing activities (84,129) 77,353
Cash flows from financing activities:
Proceeds from the issuance of
long-term debt 30,000 755,000
Debt issuance costs - (10,500)
Payments of debt (30,121) (135,371)
Early extinguishment of debt - (762,782)
Principal payments on capital
leases (15,257) (14,491)
Proceeds from exercise of stock
options 26,799 14,791
Excess tax benefit from share-
based awards 13,003 12,521
Purchase of Company common stock (151,795) (60,425)
Payments of dividends (40,398) (34,024)
Purchase of noncontrolling
interest - (15,000)
Bank overdrafts and other (7,533) 115
------ ---
Net cash used in financing
activities (175,302) (250,166)
Net change in cash of discontinued
operations - 1,323
Effect of foreign currency on cash
and cash equivalents (1,315) (392)
------ ----
Net increase (decrease) in cash
and cash equivalents 21,761 (1,065)
Cash and cash equivalents at
beginning of period 177,335 141,580
------- -------
Cash and cash equivalents at end
of period $199,096 $140,515
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SOURCE Service Corporation International
