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Service Corp. International Reports Operating Results (10-Q)

April 28, 2011 | About:
10qk

10qk

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Service Corp. International (SCI) filed Quarterly Report for the period ended 2011-03-31.

Service Corp Intl. has a market cap of $2.86 billion; its shares were traded at around $11.9 with a P/E ratio of 20.1 and P/S ratio of 1.3. The dividend yield of Service Corp Intl. stocks is 1.7%. Service Corp Intl. had an annual average earning growth of 7% over the past 10 years.

Highlight of Business Operations:

Our financial position is enhanced by our $6.9 billion backlog of future revenues from both trust and insurance-funded sales at March 31, 2011, which is the result of preneed funeral and cemetery sales. We believe we have the financial strength and flexibility to reward shareholders through dividends while maintaining a prudent capital structure and pursuing new opportunities for profitable growth. We currently have approximately $149.4 million authorized to repurchase our common stock.

Since November 2007, we have paid quarterly dividends of $0.04 per common share. On February 9, 2011, our Board of Directors approved the payment of a quarterly dividend of $0.05 per share. While we intend to pay regular quarterly cash dividends for the foreseeable future, all future dividends are subject to limitations in our debt covenants and final determination by our Board of Directors each quarter upon review of our financial performance.

Net cash provided by operating activities decreased $0.9 million to $108.0 million in the first quarter of 2011 from $108.9 million in the first quarter of 2010. This decrease was driven by:

Cash flows from investing activities used $27.4 million in the first quarter of 2011 compared to using $227.0 million in the same period of 2010. This decrease was primarily attributable to a decrease of $248.9 million in cash spent on acquisitions (primarily the Keystone North American acquisition) and a $22.9 million decrease in withdrawals of restricted funds, partially offset by a $6.8 million increase in capital expenditures and a $19.6 million increase in cash receipts from divestitures and asset sales.

Financing activities used $43.4 million in the first quarter of 2011 compared to providing $114.5 million in the same period of 2010. This decrease was primarily driven by a $168.8 million decrease in proceeds from the issuance of long-term debt (net of debt issuance costs), a $29.6 million increase in repurchases of Company common stock, partially offset by a $25.2 million decrease in debt payments, a $12.6 increase in bank overdrafts and other, and a $2.2 million increase from proceeds from exercise of stock options.

There were no proceeds from long-term debt (net of debt issuance costs) in the first quarter of 2011. Proceeds from long-term debt (net of debt issuance costs) were $168.8 million in the first quarter of 2010 due to a $150.0 million issuance of the 8.00% Senior Notes due 2021 and a $25.0 million drawdown under our bank credit facility.

Read the The complete Report

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