Q4 2024 Service Corporation International Earnings Call Transcript
Key Points
- Service Corp International (SCI) reported an increase in adjusted earnings per share to $1.06, up from $0.93 in the previous year.
- Both funeral and cemetery segments saw increases in revenues, gross profit, and comparable margin percentages, contributing to earnings growth.
- The company experienced a $19 million growth in core general agency and other revenue, driven by higher average commission rates from a new preneed insurance marketing agreement.
- Cemetery gross profits increased by $14 million, with a 150 basis point rise in gross profit percentage, achieving a 36% operating margin.
- SCI's liquidity remains strong, with $1.6 billion in liquidity, including $220 million in cash and over $1.3 billion available on a long-term bank credit facility.
- Comparable core funeral revenues decreased by $9 million, primarily due to a 4.4% decrease in core funeral services performed.
- Preneed funeral sales production decreased by $27 million, or about 9%, due to the transition to a new preneed insurance provider.
- Nonfuneral home preneed sales production decreased by $13 million, or 20%, as SCI Direct transitions from trust to insurance-funded preneed contracts.
- The company anticipates a higher effective tax rate of 25% to 26% in 2025, impacting net earnings.
- SCI experienced a $27 million use of cash due to an additional payroll cycle in the current year quarter compared to the prior year.
Good morning, and welcome to the Service Corporation International fourth quarter 2024 earnings conference call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to SCI management. Please go ahead.
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Good morning. This is Allie O'Connor, AVP of Investor Relations and Financial Reporting. Welcome to our fourth quarter earnings call. We will have prepared remarks about the quarter from Tom and Eric in just a moment. But before that, let me quickly go over the safe harbor language.
Any comments made by our management team that state our plans, beliefs, expectations or projections for the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such statements. These risks and uncertainties include, but are not limited to, those factors identified
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