On Oct. 30, Service Corporation International, the largest provider of death-care products and services in North America, reported results for the third quarter of 2024.

Highlights included:

  • Revenue grew $12.1 million over the third quarter of 2023.

  • Earnings per share was $0.81 compared to $0.80 in the third quarter of 2023.

  • Adjusted earnings per share was $0.79 compared to $0.78 in the third quarter of 2023.

  • Net cash provided by operating activities grew 16% to $263.8 million in the current year quarter compared to $227.8 million in the prior year quarter.

  • Net cash provided by operating activities excluding special items grew 18% to $269.0 million in the current year quarter compared to $227.8 million in the prior year quarter.

  • Comparable core funeral sales average grew 2.1% in the current quarter.

  • Acquisition spend during the quarter was $123 million compared to $33 million in the third quarter of 2023.

Tom Ryan, the company’s chairman and CEO, commented on the third quarter performance:

Today we reported adjusted earnings per share of $0.79 and net cash provided by operating activities excluding special items of $269 million. We are excited to see the positive impact in funeral revenue from our new marketing agreement with our new preferred preneed insurance provider, which launched during the quarter. Additionally, we are pleased both funeral and cemetery gross profit were relatively stable versus the prior year third quarter with modest revenue growth reflecting our continued focus on managing fixed costs.

We also had a very active quarter on the acquisition front including premier locations in major metropolitan markets. We invested $123 million adding 10 funeral homes and 2 cemeteries, including one combination location. We are excited to welcome these new associates to the SCI family. Additionally, we invested $31 million in real estate transactions for the expansion of funeral homes and cemeteries.

In 2025, we are targeting a return to the high end of our 8-12% long-term growth framework. We remain committed to our long-term growth strategy to grow revenue, leverage our unparalleled scale, and invest our capital wisely to enhance shareholder value. We would not be able to achieve this without our 25,000 associates and their unwavering commitment to providing excellent service to our client families.

Outlook for 2024

The company stated that its current outlook for the fourth quarter of 2024 for adjusted earnings per share is $1.00 to $1.10, representing expected growth of approximately 8-18% compared to $0.93 of adjusted earnings per share in the fourth quarter of 2023. This fourth quarter guidance range yields an annual adjusted earnings per share range of $3.47 to $3.57, compared to the previous expectation of the lower half of a prior $3.50 to $3.80 range.

In conjunction with SCI’s expectation of continued strength in our operating cash flow and coupled with the strong fourth quarter growth anticipated in adjusted earnings per share stated above, the company is raising the midpoint of our full year 2024 adjusted operating cash flow guidance from $930 million to $950 million with a revised guidance range of $940 million to $960 million (previous range of $900 million to $960 million).

SCI’s full year 2024 outlook for maintenance capital expenditures remains unchanged at approximately $325 million. The forecast for cash taxes includes the impact of a change in a tax accounting method related to its cemetery segment, which will defer cash taxes into future years. SCI’s outlook for net cash provided by operating activities also excludes special items relating to the payments of certain estimated legal charges of $64.6 million recognized in the fourth quarter of 2022.

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