NYSE$SCI

Service Corp Intl · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Service Corp Intl reported Q4 2021 earnings with revenue growth and EPS exceeding expectations, driven by elevated funeral services, burials, and preneed sales.

Service Corporation International (SCI) reported strong Q4 2021 results, with revenue growing by 8% to $1,043 million and adjusted earnings per share increasing by $0.04 to $1.17. The company benefited from elevated levels of funeral services, burials, and preneed sales, while managing inflationary cost pressures. SCI invested $112 million in acquisitions and expressed pride in its team's performance during the COVID-19 pandemic.

  • Revenue grew $73 million, or 8%, over the prior year quarter to $1,043 million.
  • GAAP earnings per share were $1.24.
  • Adjusted earnings per share grew $0.04 over the prior year quarter to $1.17, which was higher than our expectations driven by higher than expected revenue and a reduced share count.
  • Comparable funeral preneed sales production grew $30 million, or 14%.

Headline financials

Total Revenue

$1.04B

Previous: $970M+7.5%
EPS (adj)

$1.17

Previous: $1.13+3.5%
Funeral Average Revenue Per Service

$5.46K

Previous: $5.06K+7.7%
Funeral Services Performed

96.5K

Previous: 96.7K-0.1%
Net Income

$207M

Previous: $201M+2.8%
Operating Income

$298M

Previous: $285M+4.6%
Gross Profit

$324M

Previous: $315M+2.9%
Cash & Equivalents

$269M

Previous: $231M+16.4%
Total Assets

$15.7B

Previous: $14.5B+8.1%
Stock-Based Comp

$3.54M

Previous: $3.53M+0.2%

Revenue & EPS history

Service Corp Intl · Revenue · Quarterly

$1.04B

Q4 2021+7.5%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Service Corp Intl · $1.04B total across 2 segments · Q4 2021

  • Total Funeral
    $600M+9.5%
  • Total Cemetery
    $444M+5.0%

Forward guidance

SCI expects adjusted earnings per share for the full year 2022 to be in the range of $2.80 to $3.20, with a midpoint of $3.00. Net cash provided by operating activities is expected to be between $675 million and $725 million. Capital improvements and cemetery development expenditures are projected to be between $270 million and $290 million.

Tailwinds

  • Expectations for adjusted earnings per share for the full year of 2022 have improved from the $2.80 we provided last quarter on our earnings call to a midpoint of $3.00, primarily due to the continued impacts of the COVID-19 pandemic.
  • Expect net cash provided by operating activities excluding special items and cash taxes to be $825 - $875 million.
  • Expect capital improvements at existing locations and cemetery development expenditures to be $270 - $290 million
  • Expect cash taxes in 2022 to be $150 million.
  • SCI anticipates a trend of year-over-year growth as we approach an aging baby boomer cohort with a leaner and more technologically efficient and effective operating model.

Headwinds

  • The guidance provided below has a wider range than usual due to the continued uncertainty around the impact of the COVID-19 pandemic.
  • The outlook assumes that the impact of COVID-19 will continue into the early months of 2022.
  • Our outlook for net cash provided by operating activities excluding special items reflects an estimated $20 million of payroll tax payments in 2022 that were deferred from 2020 as allowed under the CARES Act.
  • GAAP diluted earnings per share and net cash provided by operating activities are not currently accessible on a forward-looking basis.
  • Expenses net of insurance recoveries related to hurricanes, gains or losses associated with asset divestitures, gains or losses associated with the early extinguishment of debt, potential tax reserve adjustments and IRS payments and/or refunds, acquisition and integration costs, system implementation and transition costs, and potential costs associated with settlements of litigation or the recognition of receivables for insurance recoveries associated with litigation, or deferred tax payments could materially impact our forward-looking diluted earnings per share and/or our net cash provided by operating activities calculated in accordance with GAAP

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 Q4 2021

Historical avgQ4 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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