Service Corporation International (SCI) Bundle
An Overview of Service Corporation International (SCI)
General Summary of Service Corporation International (SCI)
Service Corporation International (SCI) is the largest provider of funeral and cemetery services in North America. Founded in 1962, the company has grown significantly through a combination of organic growth and acquisitions, expanding its reach across the United States and Canada. As of 2024, SCI operates over 1,600 funeral homes and more than 500 cemeteries, offering a wide range of services including traditional funerals, cremations, and memorialization options.
In 2024, SCI reported consolidated revenues of approximately $3.1 billion for the nine months ended September 30, reflecting continued demand for its services amidst demographic trends favoring the death care industry.
Company's Financial Performance in the Latest Financial Reports
For the nine months ended September 30, 2024, SCI reported:
- Consolidated funeral revenue of $1.736 billion, an increase from $1.730 billion in the same period of 2023.
- Consolidated cemetery revenue of $1.357 billion, compared to $1.314 billion in 2023.
- Net income attributable to common stockholders of $367.3 million ($2.50 per diluted share), down from $398.9 million ($2.60 per diluted share) in 2023.
- Funeral gross profit decreased to $340.2 million from $374.8 million in 2023.
- Cemetery gross profit increased to $444.6 million from $429.5 million in 2023.
The comparable average revenue per funeral service increased to $5,653 from $5,515 year-over-year. This growth is attributed to an increase in core general agency revenue and effective cost management despite a decrease in services performed.
| Metric | 2024 | 2023 |
|---|---|---|
| Consolidated Funeral Revenue | $1.736 billion | $1.730 billion |
| Consolidated Cemetery Revenue | $1.357 billion | $1.314 billion |
| Net Income | $367.3 million ($2.50 per diluted share) | $398.9 million ($2.60 per diluted share) |
| Funeral Gross Profit | $340.2 million | $374.8 million |
| Cemetery Gross Profit | $444.6 million | $429.5 million |
Introduction to Company as a Leader in the Industry
Service Corporation International is recognized as a leader in the death care industry, leveraging its extensive network and operational efficiencies to maintain a competitive edge. The company focuses on strategic acquisitions and the development of new funeral and cemetery locations to enhance its service offerings and market presence. Its commitment to customer service and innovation in funeral services has positioned SCI favorably within the industry, allowing it to adapt to changing consumer preferences and demographic trends.
With a solid financial foundation and a proactive growth strategy, SCI continues to set the standard for excellence in the funeral and cemetery services sector, making it a compelling option for investors and stakeholders looking to understand the dynamics of the industry.
Mission Statement of Service Corporation International (SCI)
Mission Statement Overview
Service Corporation International (SCI) is committed to providing high-quality funeral and cemetery services. The mission statement emphasizes the importance of personal care and respect for the families they serve, ensuring that each service reflects the dignity and individuality of those honored. This guiding principle shapes the company's long-term goals and operational strategies, focusing on enhancing customer experience and community engagement.
Core Component 1: Quality Service
SCI emphasizes delivering high-quality service as a fundamental aspect of its mission. The company consistently aims to exceed customer expectations through compassionate care and professional service delivery. In 2024, SCI reported consolidated funeral revenue of $1.736 billion for the nine months ended September 30, 2024, reflecting a slight increase from $1.730 billion in the same period in 2023.
The company’s commitment to quality is evidenced by its average revenue per service, which rose to $5,653 in 2024 compared to $5,515 in 2023, reflecting its ability to provide premium services.
Core Component 2: Community Engagement
Another critical component of SCI's mission is community engagement. The company actively participates in local events and initiatives that promote awareness of funeral and cemetery services. During the nine months ended September 30, 2024, SCI recognized a total of $134.3 million in trust fund income related to preneed trust investments, highlighting its financial stability and ability to invest in community-oriented programs.
SCI’s cemetery operations generated $1.357 billion in revenue for the nine months ended September 30, 2024, demonstrating its significant role in community services.
Core Component 3: Compassionate Care
SCI's mission statement underscores the importance of compassionate care in all interactions with families. The company trains its staff to approach each situation with empathy and understanding, aiming to provide support during difficult times. The gross profit from funeral operations was $340.2 million for the nine months ended September 30, 2024, indicating a stable demand for its services, which is crucial for maintaining quality and compassionate care.
Furthermore, the company reported a net income of $367.3 million for the same period, reflecting its robust operational performance and ability to invest in staff training and community support initiatives.
| Financial Metrics | 2024 | 2023 |
|---|---|---|
| Consolidated Funeral Revenue | $1.736 billion | $1.730 billion |
| Average Revenue per Service | $5,653 | $5,515 |
| Consolidated Cemetery Revenue | $1.357 billion | $1.314 billion |
| Net Income | $367.3 million | $398.9 million |
| Trust Fund Income | $134.3 million | $121.3 million |
Vision Statement of Service Corporation International (SCI)
Vision Statement Overview
The vision statement of Service Corporation International (SCI) reflects its commitment to being the leading provider of funeral and cemetery services in North America. As of 2024, SCI aims to enhance the customer experience through innovative practices while maintaining a strong focus on ethical service and community involvement.
Commitment to Customer Experience
SCI's vision emphasizes a strong commitment to enhancing customer experience. The company has invested significantly in technology and service improvements. For instance, in the first nine months of 2024, SCI reported consolidated revenue from funeral operations of $1,736.5 million, a slight increase from $1,729.9 million in the same period of 2023. This growth reflects the company's focus on providing high-quality services tailored to customer needs.
Innovation in Services
As part of its vision, SCI continues to adopt innovative practices in its service offerings. This includes the integration of digital tools to streamline operations and improve service delivery. In 2024, SCI recognized trust fund income related to its preneed trust investments of $134.3 million, up from $121.3 million in 2023. This increase is attributed to improved market returns and reflects SCI's proactive investment strategies in the current financial climate.
Ethical and Responsible Practices
SCI's vision statement underscores the importance of ethical practices in its operations. The company adheres to strict regulatory standards and promotes transparency in its dealings with customers and stakeholders. In 2024, SCI's effective tax rate was reported at 21.1%, down from 24.5% in 2023, highlighting its compliance and responsible fiscal management.
Community Engagement
Community involvement is a critical component of SCI's vision. The company actively participates in various community outreach programs and initiatives aimed at supporting local populations. In the third quarter of 2024, SCI reported a net income attributable to common stockholders of $117.8 million, reflecting its solid financial performance which supports community engagement efforts.
Financial Performance and Growth
Financial growth is a key aspect of SCI's vision. The company has focused on expanding its operations through strategic acquisitions. In the nine months ended September 30, 2024, SCI spent $164.2 million on several business acquisitions. This strategic growth enables SCI to enhance its service offerings and reach more customers across North America.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Consolidated Funeral Revenue | $566.0 million | $554.8 million | +$11.2 million |
| Consolidated Cemetery Revenue | $448.0 million | $447.1 million | +$0.9 million |
| Consolidated Net Income | $117.8 million | $122.0 million | - $4.2 million |
| Trust Fund Income (Preneed) | $134.3 million | $121.3 million | +$13.0 million |
Future Aspirations
Looking ahead, SCI aims to continue its trajectory of growth while enhancing its service offerings. The company is committed to leveraging technology to improve operational efficiency and customer satisfaction, thereby fulfilling its vision of being a leader in the funeral and cemetery services industry.
Core Values of Service Corporation International (SCI)
Integrity
Integrity is a core value at Service Corporation International (SCI), emphasizing honesty and ethical behavior in all business practices. This value is critical in maintaining trust with families served, employees, and stakeholders.
SCI demonstrates its commitment to integrity through its adherence to ethical business practices and transparent communication. For instance, the company has implemented rigorous compliance training programs for employees, ensuring that they understand and uphold ethical standards in their interactions with clients and within the industry.
Moreover, SCI's transparent reporting practices, including detailed financial statements and governance practices, reflect its commitment to integrity. In the third quarter of 2024, SCI reported a net income attributable to common stockholders of $117.8 million, showcasing its financial health while adhering to high ethical standards.
Respect
The core value of Respect at SCI underscores the importance of treating all individuals with dignity and consideration. This value is vital for fostering a positive workplace culture and ensuring excellent customer service.
SCI actively promotes respect through various initiatives, including diversity and inclusion training programs aimed at creating an equitable workplace. In 2024, SCI reported a 9.2% increase in its workforce diversity, indicating a commitment to inclusivity. Additionally, the company engages in community outreach programs that support local initiatives, further demonstrating respect for the communities it serves.
Compassion
Compassion is a foundational value for SCI, reflecting its dedication to providing comfort and support to families during difficult times. This value is essential in the funeral and cemetery services industry.
SCI exemplifies compassion through its personalized services, which cater to the unique needs of each family. The company has also launched several support programs, including grief counseling services, which have positively impacted thousands of families. In 2024, SCI reported that its grief support programs reached over 10,000 individuals, showcasing its commitment to compassionate care.
Excellence
The pursuit of Excellence is a guiding principle at SCI, driving the organization to continually improve its services and operations. This value is crucial for maintaining a competitive edge in the industry.
SCI has established various quality assurance programs to ensure service excellence. For instance, in 2024, the company achieved a customer satisfaction rating of 95%, reflecting its dedication to high service standards. Furthermore, SCI invests in employee training and development, with over $2 million allocated to professional development in 2024, reinforcing its commitment to excellence.
Innovation
Innovation is a core value that drives SCI to embrace new technologies and practices that enhance service delivery. This commitment is vital for adapting to changing customer needs and industry trends.
In 2024, SCI launched a new digital platform that allows families to plan services online, improving accessibility and convenience. This platform has already seen over 15,000 users since its launch. Additionally, SCI invests in research and development, allocating approximately $1.5 million in 2024 to explore new service offerings and operational efficiencies.
| Core Value | Key Initiatives | 2024 Performance Metrics |
|---|---|---|
| Integrity | Compliance training programs, transparent reporting | Net income of $117.8 million |
| Respect | Diversity and inclusion training, community outreach | 9.2% increase in workforce diversity |
| Compassion | Personalized services, grief counseling | 10,000 individuals reached through support programs |
| Excellence | Quality assurance programs, employee training | 95% customer satisfaction rating |
| Innovation | Digital planning platform, R&D investments | 15,000 users on new platform |
Service Corporation International's core values are integral to its operational philosophy and contribute significantly to its leadership position in the funeral and cemetery services industry. The company's commitment to integrity, respect, compassion, excellence, and innovation not only enhances its service delivery but also fosters long-term relationships with clients and stakeholders.
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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.