Service Corp International (SCI, Financial), North America's largest provider of deathcare products and services, released its third-quarter 2023 financial results on November 1, 2023. The company reported a revenue increase of $24.1 million over the third quarter of 2022, bringing the total to just over $1.0 billion. The GAAP earnings per share were $0.80, compared to $0.76 in the third quarter of 2022. Adjusted earnings per share grew 15% to $0.78 compared to $0.68 in the third quarter of 2022.
Financial Highlights
Net income attributable to common stockholders was $122.0 million, slightly up from $120.9 million in Q3 2022. Diluted earnings per share were $0.80, compared to $0.76 in Q3 2022. Adjusted earnings per share, excluding special items, were $0.78, up from $0.68 in Q3 2022. Net cash provided by operating activities increased by $45.2 million to $227.8 million in Q3 2023, compared to $182.6 million in Q3 2022.
CEO Commentary
Today we are proud to announce strong results that meaningfully grew over the prior year despite what continues to be a challenging consumer and interest rate environment. Adjusted earnings per share grew 15% over the prior year third quarter to $0.78. Gross profit grew $23 million primarily driven by higher recognized cemetery preneed revenue. Net cash provided by operating activities also increased $45 million to $228 million primarily due to expected lower cash tax payments offsetting higher cash interest payments." - Tom Ryan, Chairman and CEO of Service Corp International.
Performance Analysis
Despite challenging market conditions, Service Corp International (SCI, Financial) demonstrated resilience with a notable increase in revenue and earnings per share. The company's gross profit grew by $23 million, primarily driven by higher recognized cemetery preneed revenue. The increase in net cash provided by operating activities was primarily due to lower expected cash tax payments and higher operating income, which more than offset higher cash interest payments.
Outlook for 2023
Service Corp International (SCI, Financial) maintains its previously reported outlook for 2023. The company expects diluted earnings per share, excluding special items, to be between $3.40 and $3.60. Net cash provided by operating activities, excluding special items and cash taxes, is expected to be between $920 million and $960 million.
Final Remarks
Service Corp International (SCI, Financial) continues to demonstrate strong financial performance despite the challenging market conditions. The company's focus on long-term growth strategy and capital allocation has contributed to the growth in revenue and earnings per share. The company remains committed to enhancing shareholder value.
Explore the complete 8-K earnings release (here) from Service Corp International for further details.
