Service Corporation International (SCI) Bundle
A Brief History of Service Corporation International (SCI)
Service Corporation International (SCI) has established itself as a leading provider of funeral and cemetery services in North America. As of 2024, the company operates over 1,500 funeral homes and more than 500 cemeteries across the United States and Canada.
Financial Performance Overview
For the nine months ended September 30, 2024, SCI reported consolidated net income attributable to common stockholders of $367.3 million ($2.50 per diluted share), compared to $398.9 million ($2.60 per diluted share) for the same period in 2023. This reflects a decrease attributed to lower funeral gross profit and increased corporate expenses.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income (millions) | $367.3 | $398.9 |
| Earnings Per Share | $2.50 | $2.60 |
| Funeral Revenue (millions) | $1,736.5 | $1,729.9 |
| Cemetery Revenue (millions) | $1,356.9 | $1,314.1 |
Operational Highlights
In 2024, SCI's consolidated funeral revenue amounted to $1,736.5 million, with comparable funeral revenue slightly decreasing to $1,714.2 million from $1,720.6 million in 2023. Notably, the comparable average revenue per service increased to $5,653 from $5,515.
The company's cemetery operations also showed growth, with revenue reaching $1,356.9 million, up from $1,314.1 million the previous year. The comparable cemetery revenue increased by $33.1 million, primarily driven by growth in preneed sales.
| Operational Metric | 2024 | 2023 |
|---|---|---|
| Consolidated Funeral Revenue (millions) | $1,736.5 | $1,729.9 |
| Comparable Funeral Revenue (millions) | $1,714.2 | $1,720.6 |
| Average Revenue Per Service | $5,653 | $5,515 |
| Consolidated Cemetery Revenue (millions) | $1,356.9 | $1,314.1 |
Debt and Financing Activities
As of September 30, 2024, SCI reported total long-term debt of $4,743.7 million, compared to $4,649.2 million at the end of 2023. The interest expense for the nine months increased to $194.5 million from $174.9 million in the prior year, primarily due to higher interest rates and increased debt balances.
During the nine months ended September 30, 2024, SCI issued $1,336.1 million in debt and made aggregate debt payments of $1,228.5 million.
| Debt Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Long-Term Debt (millions) | $4,743.7 | $4,649.2 |
| Interest Expense (millions) | $194.5 | $174.9 |
| Debt Issued (millions) | $1,336.1 | $737.4 |
| Debt Payments (millions) | $1,228.5 | $507.4 |
Shareholder Returns
In 2024, SCI continued its share repurchase program, buying back 2,789,165 shares for an aggregate cost of $198.4 million, averaging $71.13 per share. The remaining dollar value of shares authorized for repurchase stands at $331.0 million as of September 30, 2024.
| Share Repurchase Activity | 2024 |
|---|---|
| Total Shares Repurchased | 2,789,165 |
| Total Cost (millions) | $198.4 |
| Average Cost Per Share | $71.13 |
| Remaining Authorization (millions) | $331.0 |
Market Position and Future Outlook
As of 2024, SCI remains a prominent player in the funeral and cemetery services industry, leveraging its extensive network and financial resources to enhance its market position. The company continues to focus on expanding its operations and improving service offerings to maintain competitive advantage.
A Who Owns Service Corporation International (SCI)
Major Shareholders
As of 2024, Service Corporation International (SCI) has a diverse ownership structure. The largest shareholders include institutional investors and mutual funds, which hold a significant portion of the company's outstanding shares. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| The Vanguard Group, Inc. | 10.98% |
| BlackRock, Inc. | 9.87% |
| State Street Corporation | 6.45% |
| Wellington Management Company, LLP | 5.32% |
| Invesco Ltd. | 4.01% |
| FMR LLC (Fidelity) | 3.76% |
| Other Institutional Investors | 59.61% |
| Insider Ownership | 0.10% |
Insider Ownership
Insider ownership at SCI is relatively low, with key executives and board members holding approximately 0.10% of the total shares outstanding. This indicates a strong presence of institutional investors in the ownership structure.
Stock Performance and Market Capitalization
As of September 30, 2024, SCI's stock price was approximately $78.45 per share, reflecting a market capitalization of about $11.3 billion. The stock has demonstrated a steady performance with year-to-date returns of around 12.5%.
Recent Financial Data
For the third quarter of 2024, SCI reported a net income of $117.8 million, translating to earnings per share (EPS) of $0.81. This compares to a net income of $122.0 million and an EPS of $0.80 for the same period in 2023. The company’s total revenue for the quarter was approximately $1.01 billion, with a gross profit margin of 25.7%.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $117.8 million | $122.0 million |
| Earnings Per Share | $0.81 | $0.80 |
| Total Revenue | $1.01 billion | $1.00 billion |
| Gross Profit Margin | 25.7% | 26.1% |
Dividend Policy
SCI has established a consistent dividend policy, declaring dividends of $0.30 per share in the third quarter of 2024, which is a slight increase from $0.29 per share in the same quarter of the previous year. The company has maintained a dividend payout ratio of approximately 37% of its net income.
Conclusion on Ownership Structure
The ownership of Service Corporation International is characterized by a strong presence of institutional investors, with the top five shareholders collectively holding over 40% of the company's shares. This ownership structure plays a crucial role in determining corporate governance and strategic decision-making within the company.
Service Corporation International (SCI) Mission Statement
Overview of Mission Statement
The mission of Service Corporation International (SCI) as of 2024 is centered around providing meaningful services to families in their time of need, while maintaining a commitment to excellence in funeral and cemetery operations. SCI aims to be the leader in the death care industry by delivering compassionate care and high-quality services.
Core Values
- Integrity: Upholding ethical standards in all dealings.
- Compassion: Providing empathetic support to families during their difficult times.
- Excellence: Striving for the highest quality in service delivery.
- Innovation: Embracing new technologies and methods to enhance service offerings.
Financial Performance Indicators
In 2024, SCI reported significant financial metrics that reflect the company's operational effectiveness and commitment to its mission:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Consolidated Funeral Revenue | $566.0 million | $554.8 million |
| Net Income Attributable to Common Stockholders | $117.8 million | $122.0 million |
| Earnings per Share (Diluted) | $0.81 | $0.80 |
| Consolidated Cemetery Revenue | $448.0 million | $447.1 million |
| Consolidated Gross Profit (Funeral) | $107.9 million | $109.7 million |
| Consolidated Gross Profit (Cemetery) | $144.8 million | $143.9 million |
Community Engagement and Social Responsibility
SCI is dedicated to engaging with the communities it serves by supporting local initiatives and providing educational resources related to end-of-life planning. This commitment is reflected in their community outreach programs and partnerships with various organizations.
Strategic Goals for 2024
- Enhancing Service Offerings: Expanding services to include more personalized and innovative options for clients.
- Operational Efficiency: Streamlining operations to reduce costs while maintaining service quality.
- Market Expansion: Pursuing strategic acquisitions to increase market presence and service capacity.
- Employee Development: Fostering a culture of growth and support for employees through training and development programs.
Investment in Technology
In line with its mission, SCI continues to invest in technology to improve customer experience and operational efficiency. This includes the implementation of advanced management systems and online service offerings.
Conclusion
The mission statement of Service Corporation International encapsulates its commitment to providing compassionate care and quality service to families. The company’s financial performance in 2024 highlights its operational effectiveness, while its strategic goals and community involvement demonstrate a dedication to enhancing the funeral and cemetery services landscape.
How Service Corporation International (SCI) Works
Business Overview
Service Corporation International (SCI) operates as a leading provider of death care products and services in North America. The company offers a range of services including funeral and cemetery operations, preneed funeral and cemetery sales, and related activities. SCI manages a network of funeral homes and cemeteries, providing comprehensive services to families during their time of need.
Financial Performance
As of September 30, 2024, SCI reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Consolidated Revenue (Funeral) | $566.0M | $554.8M | $1,736.5M | $1,729.9M |
| Consolidated Revenue (Cemetery) | $448.0M | $447.1M | $1,356.9M | $1,314.1M |
| Net Income Attributable to Common Stockholders | $117.8M | $122.0M | $367.3M | $398.9M |
| Earnings per Share (Diluted) | $0.81 | $0.80 | $2.50 | $2.60 |
Funeral Operations
In the first nine months of 2024, SCI reported consolidated funeral revenue of $1,736.5 million, up from $1,729.9 million in the same period in 2023. The increase was primarily driven by:
- Growth in revenue from acquired and newly constructed properties, contributing approximately $15.8 million.
- A slight decrease in comparable funeral revenue, which was $1,714.2 million, down from $1,720.6 million in 2023.
The average revenue per service also increased, reaching $5,653 in 2024 compared to $5,515 in 2023.
Cemetery Operations
For the nine months ended September 30, 2024, SCI's cemetery revenue increased to $1,356.9 million from $1,314.1 million in 2023. This growth was attributed to:
- A $33.1 million increase in comparable cemetery revenue.
- A $10.7 million increase from newly constructed and acquired properties.
The gross profit from cemetery operations was $444.6 million in the first nine months of 2024, compared to $429.5 million in 2023.
Acquisitions and Divestitures
During the nine months ended September 30, 2024, SCI completed acquisitions totaling $164.2 million. This included:
- 10 funeral homes and 2 cemeteries acquired for $123.4 million in the third quarter of 2024.
In addition, SCI recognized gains on divestitures of $4.8 million for the nine months ended September 30, 2024.
Debt and Financing Activities
As of September 30, 2024, SCI's total debt was $4.83 billion, with an effective interest rate of 5.00%. The company had significant financial activities including:
- Interest expense of $194.5 million for the nine months ended September 30, 2024.
- Net cash used in financing activities of $230.8 million.
Trust Fund Income
Recognized trust fund income related to preneed trust investments was $134.3 million for the nine months ended September 30, 2024, compared to $121.3 million for the same period in 2023. This reflects improved market returns.
Deferred Revenue
As of September 30, 2024, the deferred revenue, net amounted to $1.75 billion, indicating future revenue from unperformed contracts.
| Deferred Revenue Components | Amount (in millions) |
|---|---|
| Deferred Revenue | $2,767.3M |
| Unfulfilled Performance Obligations | ($1,016.6M) |
| Deferred Revenue, Net | $1,750.8M |
How Service Corporation International (SCI) Makes Money
Revenue Streams
Service Corporation International (SCI) generates its revenue primarily through two segments: funeral services and cemetery operations. As of the nine months ended September 30, 2024, consolidated revenue from funeral operations was $1,736.5 million, while cemetery operations contributed $1,356.9 million to the total revenue.
| Revenue Source | Amount (in millions) |
|---|---|
| Funeral Operations Revenue | $1,736.5 |
| Cemetery Operations Revenue | $1,356.9 |
| Total Revenue | $3,093.4 |
Funeral Services
Within the funeral segment, the company reported a comparable funeral revenue of $1,714.2 million for the nine months ended September 30, 2024. The average revenue per service was $5,653, with a total of 261,755 services performed during the same period.
| Metric | Amount |
|---|---|
| Comparable Funeral Revenue | $1,714.2 million |
| Average Revenue per Service | $5,653 |
| Services Performed | 261,755 |
The gross profit from funeral operations decreased to $340.2 million, primarily due to a decline in the volume of services performed and increased costs.
Cemetery Operations
In cemetery operations, SCI recorded a comparable revenue of $1,345.9 million for the nine months ended September 30, 2024. The gross profit from cemetery operations was $438.6 million.
| Metric | Amount |
|---|---|
| Comparable Cemetery Revenue | $1,345.9 million |
| Cemetery Gross Profit | $438.6 million |
Preneed Sales
SCI also generates revenue through preneed sales, which involve customers purchasing services and merchandise in advance. For the nine months ended September 30, 2024, preneed insurance-funded sales production was $548.9 million, with maturities reaching $304.7 million.
| Metric | Amount (in millions) |
|---|---|
| Preneed Insurance-funded Sales Production | $548.9 |
| Preneed Maturities | $304.7 |
Investment Income
Recognized trust fund income related to preneed trust investments was $134.3 million for the nine months ended September 30, 2024. Additionally, cemetery perpetual care trust investments contributed $73.5 million in recognized trust fund income.
| Trust Fund Income Source | Amount (in millions) |
|---|---|
| Preneed Trust Investments | $134.3 |
| Cemetery Perpetual Care Trust Investments | $73.5 |
Operating Cash Flow
For the nine months ended September 30, 2024, net cash provided by operating activities was $680.8 million, reflecting a $89.3 million increase from the previous year.
| Cash Flow Activity | Amount (in millions) |
|---|---|
| Net Cash from Operating Activities | $680.8 |
Expenses and Profitability
For the nine months ended September 30, 2024, total expenses included corporate general and administrative expenses of $124.1 million and interest expenses of $194.5 million. The net income attributable to common stockholders was $367.3 million, resulting in diluted earnings per share of $2.50.
| Financial Metric | Amount (in millions) |
|---|---|
| Corporate General and Administrative Expenses | $124.1 |
| Interest Expenses | $194.5 |
| Net Income | $367.3 |
| Diluted Earnings per Share | $2.50 |
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Article updated on 8 Nov 2024
Resources:
- Service Corporation International (SCI) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of Service Corporation International (SCI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Service Corporation International (SCI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.