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Mar 31, 2020
Service Corp Intl Q1 2020 Earnings Report
Service Corporation International reported mixed results in Q1 2020, with revenue slightly up but earnings down due to COVID-19 impacts and decreased preneed cemetery sales.
Key Takeaways
Service Corporation International (SCI) announced its Q1 2020 financial results, revealing a slight increase in revenue but a decrease in earnings per share due to the COVID-19 pandemic affecting preneed cemetery sales. The company emphasized its strong financial position and commitment to employee safety during the crisis.
Revenue increased slightly to $803 million compared to $798.2 million in Q1 2019.
Diluted earnings per share decreased to $0.45 from $0.43 in the prior year.
Adjusted EPS declined to $0.43 from $0.47 year-over-year, impacted by lower gross profit in preneed cemetery sales.
The company implemented measures to safeguard employment and manage expenses amid the COVID-19 pandemic.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Due to the uncertainty of current economic conditions, in early April, the company withdrew its full year 2020 guidance. As the company looks forward in 2020, they anticipate the impact of COVID-19 pandemic on both our funeral and cemetery segments will result in a decline of adjusted earnings per share, which they hope to minimize as they continue to be vigilant with costs and expenses. They believe that adjusted operating cash flow will be less impacted than adjusted earnings per share as they expect to continue to collect cash from preneed installment sales, defer taxes as allowed by federal and state laws, and temporarily reduce expenses and capital expenditures.
Positive Outlook
- Company is well-positioned financially to weather the storm.
- Financial position is strong with very robust liquidity.
- Continue to expect a significant amount of positive operating cash flow during 2020.
- No meaningful debt maturities until May 2024.
- Believe in the strength of liquidity and cash flow position that will allow to return to growth quickly after this crisis passes.
Challenges Ahead
- Impact of COVID-19 pandemic on both funeral and cemetery segments will result in a decline of adjusted earnings per share.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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