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Highlights:
Tom Ryan, the Company's President and Chief Executive Officer, commented on the first quarter of 2010:
"We are encouraged with the operating results achieved in the first quarter as the positive trends that we saw in the second half of 2009 related to expense management, preneed sales and higher trust fund income continued. We were also pleased to announce the successful closing of the Keystone North America acquisition in late March. With a month of ownership completed, we are pleased so far with the integration progress and the quality of the businesses and their people. Even after fully funding the Keystone acquisition, SCI continues to have strong financial flexibility and is well-positioned to continue to pursue value-enhancing opportunities."
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REVIEW OF RESULTS FOR FIRST QUARTER 2010
Comparable Funeral Results
The table below details comparable funeral results of operations ("same store") for the three months ended March 31, 2010 and 2009. We consider comparable operations to be those owned for the entire period beginning January 1, 2009 and ending March 31, 2010.
Comparable Cemetery Results
The table below details comparable cemetery results of operations ("same store") for the three months ended March 31, 2010 and 2009. We consider comparable operations to be those owned for the entire period beginning January 1, 2009 and ending March 31, 2010.
Other Financial Results
Cash Flow and Capital Spending
TRUST FUND RETURNS
Total trust fund returns include realized and unrealized gains and losses and dividends. A summary of our U.S. and Canadian trust fund returns for the three months ended March 31, 2010 is set forth below:
NON-GAAP FINANCIAL MEASURES
Earnings from continuing operations excluding special items and diluted earnings per share from continuing operations excluding special items shown above are all non-GAAP financial measures. We believe these non-GAAP financial measures provide a consistent basis for comparison between quarters and better reflect the performance of our core operations, as they are not influenced by certain income or expense items not affecting continuing operations. We also believe these measures help facilitate comparisons to our competitors' operating results.
Set forth below is a reconciliation of earnings from continuing operations excluding special items to our reported net income attributable to common stockholders and diluted earnings per share from continuing operations excluding special items to our GAAP diluted earnings per share. We do not intend for this information to be considered in isolation or as a substitute for other measures of performance prepared in accordance with GAAP.
Conference Call and Webcast
We will host a conference call on Thursday, April 29, 2010, at 9:00 a.m. Central Daylight Time. A question and answer session will follow a brief presentation made by management. The conference call dial-in number is (617) 597-5329 with the passcode of 36412152. The conference call will also be broadcast live via the Internet and can be accessed through our website at www.sci-corp.com. A replay of the conference call will be available through May 6, 2010 and can be accessed at (617) 801-6888 with the passcode of 42629389. Additionally, a replay of the conference call will be available on our website for approximately ninety days.
Cautionary Statement on Forward-Looking Statements
The statements in this press release that are not historical facts are forward-looking statements made in reliance on the "safe harbor" protections provided under the Private Securities Litigation Reform Act of 1995. These statements may be accompanied by words such as "believe," "estimate," "project," "expect," "anticipate" or "predict," that convey the uncertainty of future events or outcomes. These statements are based on assumptions that we believe are reasonable; however, many important factors could cause our actual results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by us, or on our behalf. Important factors, which could cause actual results to differ materially from those in forward-looking statements include, among others, the following:
For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings included in our 2009 Annual Report on Form 10-K, which was filed February 25, 2010. Copies of this document as well as other SEC filings can be obtained from our website at www.sci-corp.com. We assume no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by us, whether as a result of new information, future events or otherwise.
About Service Corporation International
Service Corporation International (NYSE: SCI), headquartered in Houston, Texas, is North America's leading provider of deathcare products and services. At March 31, 2010, we owned and operated 1,441 funeral homes and 387 cemeteries (of which 221 are combination locations) in 44 states, eight Canadian provinces, the District of Columbia and Puerto Rico. Through our businesses, we market the Dignity Memorial® brand which offers assurance of quality, value, caring service, and exceptional customer satisfaction. For more information about Service Corporation International, please visit our website at www.sci-corp.com. For more information about Dignity Memorial®, please visit www.dignitymemorial.com.
Three Months Ended (In millions, except for per share amounts) ------------------ March 31, --------- 2010 2009 ---- ---- Revenues $530.9 $510.6 Operating income $85.6 $85.6 Net income attributable to common stockholders $30.9 $34.5 Diluted earnings per share $.12 $.14 Earnings from continuing operations excluding special items(1) $34.4 $31.0 Diluted earnings per share from continuing operations excluding special items(1) $.13 $.12 Diluted weighted average shares outstanding 256.2 250.3 Net cash provided by operating activities $108.9 $141.4
SOURCE Service Corporation International
