#United States #Houston #financial results #Service Corporation #deathcare

Introduction

Service Corporation International (NYSE: SCI), the leading provider of deathcare products and services in North America, recently shared its financial performance for the fourth quarter of 2024 along with guidance for the upcoming year. This report provides insight into the company's revenue growth and operational strategies moving forward.

Financial Highlights

Service Corporation International achieved a revenue increase of $37 million, marking a 4% rise compared to the same quarter last year. Notable growth was observed in both the funeral and cemetery segments, showcasing the company’s robust positioning within the market. Key financial highlights include:

• - Comparable preneed cemetery sales production rose by 2.0% this quarter.
• - The average core funeral sales grew by 2.7% in the current period.
• - Gross profit reflected an increase of $18 million, or 6%, year-over-year.
• - GAAP earnings per share (EPS) reached $1.04, up 12%, while adjusted EPS was $1.06, a 14% growth.

Notably, operating cash flow for Q4 was reported at $264 million, with total operating cash flow for the full year 2024 amounting to $945 million. This robust financial performance allowed Service Corporation to continue investing in its growth strategies, including acquisitions and market expansions.

Leadership Commentary

Tom Ryan, Chairman and CEO of Service Corporation International, expressed satisfaction with the company's strong finish to the year. He highlighted that the growth in both segments resulted in impressive gross profit performance and margin enhancement. Ryan remarked, "We are pleased to report a strong finish for the year with adjusted earnings per share growth of 14% in the fourth quarter of 2024. This was driven by revenue growth in both our segments, which translated into solid gross profit performance and margin expansion."

Strategic Investments

During the year, the firm invested $181 million into acquiring 26 funeral homes and six cemeteries, coupled with $62 million designated for real estate transactions aimed at expanding their operational footprint in key metropolitan areas. These strategic moves underscore the company's commitment to enhancing its service offerings and operational capacity.

2025 Forecast

Looking ahead, Service Corporation is optimistic about 2025, projecting adjusted EPS between $3.70 and $4.00. The midpoint suggests a growth trajectory that aligns with the company’s long-term target of 8% to 12% annual growth. This confident outlook was reinforced by Ryan's assertion that they are well-positioned to deliver strong results, supported by a robust cash flow from operations.

Acknowledgments

Ryan took a moment to appreciate the dedication and hard work of the company's 25,000 associates, emphasizing that their commitment to client service is pivotal to SCI's financial strength and growth potential. He underscored, "Through their hard work, SCI remains in a position of financial strength affording flexibility for continued growth."

Conclusion

In conclusion, Service Corporation International's fourth-quarter financial performance reflects its strategic focus on growth and commitment to service excellence. As they navigate into 2025, the company looks set to continue its momentum, bolstered by positive market conditions, strategic investments, and a dedicated workforce. Investors and stakeholders can look forward to the upcoming conference call scheduled for February 13, 2025, where more detailed insights and discussions will take place regarding Q4 results and the comprehensive plan for the year ahead.