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

July 27, 2012 | About:

10qk

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Service Corp. International (SCI) filed Quarterly Report for the period ended 2012-06-30.

Service Corporation International has a market cap of $2.74 billion; its shares were traded at around $12.93 with a P/E ratio of 18.6 and P/S ratio of 1.2. The dividend yield of Service Corporation International stocks is 1.9%. Service Corporation International had an annual average earning growth of 6.6% over the past 10 years.

Highlight of Business Operations:

Cash flows from investing activities used $60.0 million in the first half of 2012 compared to using $108.7 million in the same period of 2011. This decrease was primarily attributable to a decrease of $55.6 million in cash spent on acquisitions (primarily the Neptune acquisition in 2011) and a $5.0 million decrease in capital expenditures, partially offset by a $9.1 million increase in net deposits of restricted funds and a $2.9 million decrease in cash receipts from divestitures and asset sales.

Our consolidated average revenue per funeral service decreased $129, or 2.4%, in the second quarter of 2012 compared to 2011, primarily as a result of our acquisition of Neptune which has a lower average, partially offset by the increase in comparable average revenue per funeral service described below. Our comparable average revenue per funeral service increased $136, or 2.5%, in the second quarter of 2012 compared to the same period in 2011. Excluding an unfavorable Canadian currency impact and higher funeral trust fund income, the average revenue per funeral service grew approximately 3.1%.

Consolidated revenues from funeral operations were $820.7 million in the first half of 2012 compared to $794.4 million for the same period in 2011. This increase is primarily attributable to the $33.2 million of additional revenues as the result of acquisitions in 2012 and 2011. These increases were partially offset by a $3.7 million decrease in comparable revenues described below and a decline of $3.2 million in revenues contributed by non-strategic assets that were divested throughout 2012 and 2011. Comparable revenues from funeral operations were $777.9 million in the first half of 2012 compared to $781.6 million for the same period in 2011. This decrease was primarily due to the 3.7% decrease in the number of comparable funeral service described below.

Our consolidated average revenue per funeral service decreased $125, or 2.4%, in the first half of 2012 compared to 2011, primarily as a result of our acquisition of Neptune which has a lower average, partially offset by the increase in comparable average revenue per funeral service described below. Our comparable average revenue per funeral service increased $153, or 2.9%, in the first half of 2012 compared to the same period in 2011. Excluding an unfavorable Canadian currency impact and higher funeral trust fund income, the average revenue per funeral service grew approximately 3.1% despite an increase in cremation rates.

Consolidated revenues from our cemetery operations increased $17.1 million, or 4.7%, in the first half of 2012 compared to the same period in 2011 primarily as a result of the increase in comparable revenues described below. The increase was partially offset by a decline of $3.7 million in revenues contributed by non-strategic assets that were divested throughout 2012 and 2011. Comparable cemetery revenues increased $20.7 million, or 5.8%, primarily as a result of strong cemetery preneed property production during the first half of 2012, partially offset by lower atneed revenues.

Read the The complete Report

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