Service Corporation International (NYSE: SCI), a provider of deathcare products and services, today reported results for the second quarter 2008. Our unaudited condensed consolidated financial statements can be found at the end of this press release.
Highlights:
* Diluted earnings per share from continuing operations excluding special items increased 27% to $0.14 compared to $0.11.
* Revenues decreased $16.7 million, or 3.0%, as a result of significant divestiture activity throughout 2007 which included the sale of approximately 400 locations that generated more than $400 million of proceeds.
* Despite a difficult economic environment, comparable average revenue per funeral service increased 4.4%. Comparable funeral services performed decreased 2.6%.
* Improved sales and marketing efforts led to a comparable preneed funeral production increase of 20.3% and a comparable cemetery property sales production increase of 2.6%.
* SCI returned more than $50.0 million in capital to shareholders in the second quarter of 2008 through a combination of dividends and share repurchases, bringing the year-to-date total capital returned to shareholders to $100.0 million in the first half of 2008.
* SCI today reconfirmed all of the annual guidance provided on February 28, 2008.
Tom Ryan, the Company's President and Chief Executive Officer, commented on the second quarter of 2008:
"We continue to make significant progress, particularly with sales production in both our funeral and cemetery operations. In the face of difficult economic conditions, we saw increases in both our comparable preneed funeral sales production and our comparable cemetery property sales production. These results reflect our commitment to providing the appropriate sales infrastructure and the dedication of our hard-working employees," said Tom Ryan, President and Chief Executive Officer.
Comparison of Second Quarter 2008 vs. 2007 Comparable Funeral Results
* Comparable funeral revenue increased $8.8 million, or 2.5%, driven by a 4.4% increase in the average revenue per funeral service and higher GA revenue due to increased preneed funeral sales production. These increases were partially offset by a 2.6% decline in comparable funeral services performed. We believe this decline in volume is consistent with trends in our relevant markets and also reflects a continued decline in highly discounted, low-service cremation activities due to the implementation of our strategic pricing initiative.
* Comparable funeral gross profit and gross margin percentage were down slightly as the increased revenue described above was offset by higher selling costs resulting from increased preneed funeral sales production, investments in new marketing initiatives, and a $1.8 million increase in energy-related costs in the second quarter of 2008.
* In the face of a difficult economic environment, comparable preneed funeral sales production increased $20.7 million, or 20.3%. This was accomplished through an increase in the number of sales counselors as well as enhanced productivity from training and development initiatives. -- Service Corporation International
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
