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

February 13, 2012 | About:

10qk

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Service Corp. International (SCI) filed Annual Report for the period ended 2011-12-31.

Service Corp. International has a market cap of $2.53 billion; its shares were traded at around $11.1 with a P/E ratio of 17.09 and P/S ratio of 1.09. The dividend yield of Service Corp. International stocks is 1.8%. Service Corp. International had an annual average earning growth of 7% over the past 10 years.

Highlight of Business Operations:

These increases were partially offset by a decline of $11.6 million in revenues contributed by non-strategic assets that were divested throughout 2011 and 2010. Comparable revenues from funeral operations were $1,423.3 million for the year ended December 31, 2011 compared to $1,401.6 million for the same period in 2010. This increase was primarily due to the 2.9% increase in average revenue per funeral service described below and a $17.6 million increase in GA revenues that resulted from increased preneed insurance production. These increases were partially offset by the 2.5% decrease in the number of funeral services performed as described below.

Consolidated revenues from funeral operations increased $101.0 million in 2010 compared to the same period in 2009. This increase is primarily due to the increase in comparable revenues described below and $76.2 million of additional revenues as the result of acquisitions in 2010 and 2009, partially offset by a decline of $9.4 million in revenues contributed by non-strategic assets that were divested throughout 2010 and 2009. Our comparable funeral revenues increased $34.2 million, or 2.5%, in 2010 compared to the year ended December 31, 2009 primarily as a result of the 1.2% increase in the average revenue per funeral service described below and a $9.5 million increase in GA revenues that resulted from increased preneed funeral insurance production.

Our consolidated average revenue per funeral service decreased $13 or 0.2% in 2011 compared to 2010, primarily as a result of changes in product mix. Our comparable average revenue per funeral increased $151, or 2.9% in 2011 compared to the same period in 2010. This increase was primarily attributable to an $8.1 million ($32 per service) increase in trust fund income, a $6.1 million ($25 per service) favorable Canadian currency impact, and a 1.8% increase due to changes in our product mix.

Consolidated revenues from our cemetery operations increased $44.8 million, or 6.4%, in 2011 compared to 2010 primarily as a result of the increase in comparable revenues described below and $2.5 million in additional revenues generated by acquisitions in 2011 and 2010, partially offset by a decline of $4.9 million in revenues contributed by non-strategic assets that were divested throughout 2011 and 2010. Comparable cemetery revenues increased $47.2 million, or 6.9%, in 2011 when compared with 2010. This increase was primarily driven by a $42.9 million increase in recognized property revenues as a result of 2011 marketing initiatives and a $10.4 million increase in trust fund income as the result of improved conditions in the equity and debt markets in 2011 compared to 2010.

Consolidated revenues from our cemetery operations increased $36.1 million, or 5.5%, in 2010 compared to 2009 primarily as a result of the increase in comparable revenues described below and $3.5 million in additional revenues generated by acquisitions in 2010 and 2009, partially offset by a decline of $6.4 million in revenues contributed by non-strategic assets that were divested throughout 2010 and 2009. Comparable cemetery revenues increased $39.0 million, or 6.0%, in 2010 when compared with 2009. This increase was primarily driven by a $21.8 million increase in recognized property revenues as a result of 2010 marketing initiatives and a $7.7 million increase in trust fund income as the result of improved conditions in the equity and debt markets in 2010 compared to 2009.

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