Service Corp Intl Q2 2021 Earnings Report
Key Takeaways
Service Corporation International (SCI) announced its Q2 2021 financial results, with earnings per share of $0.92 and net cash provided by operating activities of $192 million. The company raised its full-year adjusted earnings per share guidance by $0.50 to $3.35 and adjusted operating cash flow guidance by $50 million to $737.5 million, driven by strong preneed cemetery property sales and funeral results.
Revenue grew by $168 million year-over-year to $988 million.
GAAP earnings per share were $0.92, and adjusted earnings per share also stood at $0.92, a $0.34 increase year-over-year.
Comparable preneed funeral sales production increased by $106 million, or 57%.
Comparable preneed cemetery sales production increased by $94 million, or 36%.
Service Corp Intl
Service Corp Intl
Service Corp Intl Revenue by Segment
Forward Guidance
The company has raised its full-year adjusted earnings per share guidance and adjusted operating cash flow guidance.
Positive Outlook
- Continued strong performance of preneed cemetery property sales expected through the end of 2021.
- Strong funeral results driven by growth in the funeral sales average.
- Increased digital and direct mail leads.
- Gradual return of local marketing events and in-person seminars.
- More productive and efficient sales force with better utilization of customer relationship management system.
Challenges Ahead
- Continued uncertainty related to the impact of the COVID-19 pandemic.
- Estimated $20 million of payroll tax payments in 2021 that were deferred from 2020 as allowed under the CARES Act.
- Incur normal payroll taxes in 2021 of approximately $40 million (which we were able to defer in 2020).
- Staffing and service levels normalized compared to the prior year quarter, driven by our customers desire for more robust remembrances and celebrations.
- Fixed costs increased due to higher incentive compensation expense and pent up repairs and maintenance expenses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income