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Jun 30, 2021
Service Corp Intl Q2 2021 Earnings Report
Service Corporation International reported strong Q2 2021 results, driven by growth in preneed cemetery sales and funeral sales average, leading to increased full-year guidance.
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
Revenue by Segment
Total Funeral Revenue
CapyFin.comTotal Cemetery Revenue
CapyFin.com 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