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

October 27, 2011 | About:
10qk

10qk

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Service Corp. International (SCI) filed Quarterly Report for the period ended 2011-09-30.

Service Corp. International has a market cap of $2.44 billion; its shares were traded at around $10.31 with a P/E ratio of 16.4 and P/S ratio of 1.1. The dividend yield of Service Corp. International stocks is 2%. Service Corp. International had an annual average earning growth of 7% over the past 10 years.

Highlight of Business Operations:

Proceeds from long-term debt (net of debt issuance costs) were $65.0 million in the first nine months ended September 30, 2011 due to a drawdown under our bank credit facility. Proceeds from long-term debt (net of debt issuance costs) were $238.8 million in the first nine months ended September 30, 2010 due to a $150.0 million issuance of the 8.00% Senior Notes due November 2021 and a $95.0 million drawdown under our bank credit facility.

Cash flows from investing activities used $167.2 million in the first nine months ended September 30, 2011 compared to using $239.9 million in the same period of 2010. This decrease was primarily attributable to a decrease of $184.3 million in cash spent on acquisitions (primarily the Keystone acquisition in 2010), partially offset by a $67.6 million decrease in cash receipts from divestitures and asset sales, a $25.5 million decrease in withdrawals of restricted funds, and an $18.5 million increase in capital expenditures.

Our consolidated funeral services performed increased 3.6% during the first nine months ended September 30, 2011 compared to the same period in 2010 primarily as the result of acquisitions in 2011 and 2010, offset by a 1.3% decrease in comparable funeral services performed. We believe the comparable decrease was somewhat impacted by extreme weather throughout North America, and we believe is consistent with trends experienced by other funeral service providers and industry vendors. Our consolidated cremation rate of 46.5% in the first nine months ended September 30, 2011 increased from 41.7% in 2010, while our comparable cremation rate of 44.3% in the first nine months ended September 30, 2011 increased from 41.7% in 2010. We continue to expand our cremation memorialization products and services, which have resulted in higher average sales for cremation services.

Our consolidated funeral services performed increased 4.2% during the third quarter of 2011 compared to the same period in 2010 primarily as the result of acquisitions in 2011 and 2010, offset by a 2.4% decrease in comparable funeral services performed. We believe the comparable decrease is consistent with trends experienced by other funeral service providers and industry vendors. Our consolidated cremation rate of 50.3% in the third quarter of 2011 increased from 41.9% in 2010, while our comparable cremation rate of 44.6% in the third quarter of 2011 increased from 41.9% in 2010. We continue to expand our cremation memorialization products and services, which have resulted in higher average sales for cremation services.

Financing activities used $166.2 million in the first nine months ended September 30, 2011 compared to using $73.3 million in the same period of 2010. This increase was primarily driven by a $173.8 million decrease in proceeds from the issuance of long-term debt (net of debt issuance costs) and a $59.7 million increase in the repurchases of Company common stock, partially offset by a $129.2 million decrease in debt payments, a $9.2 million increase in bank overdrafts and other, and a $6.2 million increase from proceeds from exercise of stock options.

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