NYSE$SCI

Service Corp Intl · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

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.

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%.

Headline financials

Total Revenue

$988M

Previous: $820M+20.4%
EPS (adj)

$0.92

Previous: $0.58+58.6%
Funeral Average Revenue Per Service

$5.35K

Previous: $4.73K+13.1%
Funeral Services Performed

85.7K

Previous: 90.6K-5.4%
Funeral Gross Margin

27.2%

Previous: 24.1%+12.9%
Comparable Preneed Cemetery Sales Growth

36.0%

Previous: 10.4%+246.2%
Free Cash Flow

$158M

Previous: $106M+49.5%
Net Income

$158M

Previous: $106M+49.5%
Operating Income

$246M

Previous: $182M+34.8%
Gross Profit

$269M

Previous: $219M+22.8%
Cash & Equivalents

$437M

Previous: $222M+96.5%
Total Assets

$15.3B

Previous: $13.5B+13.8%
Stock-Based Comp

$3.6M

Previous: $3.64M-1.2%

Revenue & EPS history

Service Corp Intl · Revenue · Quarterly

$988M

Q2 2021+20.4%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Service Corp Intl · $988M total across 2 segments · Q2 2021

  • Total Funeral
    $532M+10.6%
  • Total Cemetery
    $456M+34.4%

Forward guidance

The company has raised its full-year adjusted earnings per share guidance and adjusted operating cash flow guidance.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.3%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.1%

Avg return

30 days after

52%

35 / 67 earnings

Positive

+11.7%

Q3 2023

Best reaction

-11.3%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.7%-8.0%-13.0%
Q4 2025-6.7%-4.7%-5.8%
Q3 2025+4.9%+1.9%-0.8%
Q1 2025-4.1%-3.9%-2.4%
Q4 2024+7.2%+2.3%+3.4%
Q3 2024+6.8%+7.5%+15.9%
Q2 2024-6.6%-10.6%-2.2%
Q1 2024-2.9%-5.0%-0.1%
Q4 2023+3.7%+6.9%+11.8%
Q3 2023+11.7%+8.6%+13.1%
Q2 2023-4.5%-2.1%-5.3%
Q1 2023-3.0%-7.3%-9.4%
Q4 2022-2.9%-0.9%-8.6%
Q3 2022+11.4%+14.7%+17.2%
Q2 2022-11.3%-13.7%-17.3%
Q1 2022+10.4%+6.9%+9.3%
Q4 2021-4.0%-6.5%+1.6%
Q3 2021+6.6%+8.8%+6.1%
Q2 2021+7.1%+8.1%+8.3%
Q1 2021+6.1%+4.5%-1.6%
Q4 2020-6.2%-9.1%-8.3%
Q3 2020+6.0%+8.7%+13.6%
Q2 2020+11.6%+14.4%+18.9%
Q1 2020-2.4%-3.3%+4.8%
Q4 2019+1.5%+5.1%-26.5%
Q3 2019-0.3%-2.9%-3.5%
Q2 2019+1.3%-2.8%-1.7%
Q1 2019+3.6%+1.3%+4.8%
Q4 2018-6.5%-6.7%-14.4%
Q3 2018-4.4%+0.5%+6.1%
Q2 2018+4.7%+4.4%+13.6%
Q1 2018-2.4%-4.5%-2.1%
Q4 2017-0.2%+3.1%+2.6%
Q3 2017+4.8%+4.4%+5.8%
Q2 2017+2.6%+1.4%+3.7%
Q1 2017+3.9%+1.5%+0.9%
Q4 2016+7.8%+6.3%+5.0%
Q3 2016-2.3%-2.1%+4.2%
Q2 2016-1.6%-4.4%-6.0%
Q1 2016+4.1%
Q4 2015-2.2%
Q3 2015-2.7%
Q2 2015+1.1%
Q1 2015-1.1%
Q4 2014+6.6%
Q3 2014-1.8%
Q2 2014+5.2%
Q1 2014+2.5%
Q4 2013+4.1%
Q3 2013-4.1%
Q2 2013-0.3%
Q1 2013+5.4%
Q4 2012+5.0%
Q3 2012+5.4%
Q2 2012+5.5%
Q1 2012-2.0%
Q4 2011-0.5%
Q3 2011+0.7%
Q2 2011-4.2%
Q1 2010-1.1%
Q1 2011+5.0%
Q4 2010-0.1%
Q3 2010-2.0%
Q3 2009-2.0%
Q2 2009+2.8%
Q4 2009+2.8%
Q2 2010+2.8%

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