Q1 2024 Service Corporation International Earnings Call Transcript
Key Points
- Service Corp International reported a robust increase in preneed cemetery sales, growing by $24 million or almost 8% over the prior year quarter.
- The company confirmed its normalized earnings per share guidance range of $3.50 to $3.80 for 2024, indicating stable financial expectations.
- Service Corp International generated an impressive adjusted cash flow from operations of $220 million, maintaining a strong cash flow performance.
- The company made significant capital investments totaling $103 million in the quarter, aimed at improving existing facilities and expanding new growth opportunities.
- Service Corp International successfully managed merchandise cost inflation through long-term agreements with inflationary caps, ensuring controlled operational costs.
- Service Corp International experienced a decline in adjusted earnings per share from $0.93 to $0.89 compared to the previous year, indicating a slight decrease in profitability.
- The company faced a decrease in funeral volumes by 3% compared to the prior year quarter, attributed to COVID pull-forward effects.
- There was a notable decline in funeral gross profit by $18 million and a decrease in gross profit percentage by 270 basis points.
- Preneed funeral sales production decreased by $8 million or about 2% over the first quarter of 2023, showing a dip in this revenue segment.
- Service Corp International incurred higher cash interest payments during the quarter, amounting to $14 million due to higher weighted average interest rates and balances on floating rate debt.
Good day, and welcome to the SCI First Quarter 2024 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to SCI management. Please go ahead.
We're going to have some prepared remarks about the quarter from Tom and Eric in just a moment. But before that, let me quickly go over the safe harbor language. Any comments made by our management team that state our plans, beliefs, expectations or projections for the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such statements.
These risks and uncertainties include, but are not limited to, those factors identified in our earnings release and also in our filings with the SEC that are available on our website. Today, we might also discuss certain non-GAAP financial measures, a reconciliation of these measures can be found in
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