SERVICE CORPORATION INTERNATIONAL ANNOUNCES FIRST QUARTER 2025 FINANCIAL RESULTS AND CONFIRMS 2025 GUIDANCE

Conference call on Thursday, May 1, 2025, at 8:00 a.m. Central Time. , /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today reported results for the first quarter of 2025. First Quarter Highlights: Revenue grew $28.8 million over the first quarter of 2024 Gross profit increased $17.2 million, or 6%, over the same quarter of last year Comparable total funeral services performed grew 1.8% in the current quarter Comparable total funeral sales average grew 2.3% in the current quarter GAAP earnings per share was $0.98 compared to $0.89 in the first quarter of 2024 resulting in 10% growth over the prior year quarter Adjusted earnings per share was $0.96 compared to $0.89 in the first quarter of 2024 resulting in 8% growth over the prior year quarter GAAP operating cash flow grew to $311.1 million in the current year quarter compared to $220.1 million in the prior year quarter Adjusted operating cash flow grew to $316.0 million in the current year quarter compared to $220.1 million in the prior year quarter Tom Ryan, the Company's Chairman and CEO, commented on the first quarter performance: "We are proud to report adjusted earnings per share growth of 8% and strong adjusted operating cash flows in the first quarter of 2025. This was driven by strong performance in our funeral segment with year over year increases in the number of services performed and average revenue per funeral along with growth in general agency revenue. Additionally, effective cost management drove solid gross profit performance and margin expansion. In the cemetery segment, we are continuing to focus on production, which will benefit us in future periods, as undeveloped property sold is constructed. Lastly, our robust cash flow has allowed us to continue investment toward our extensive pipeline of acquisitions while also providing us the flexibility to be opportunistic with stock repurchases. 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 ongoing commitment to providing excellent service to our client families." Details of our first quarter 2025 financial results and the unaudited consolidated financial statements can be found in the Appendix at the end of this press release. The table below summarizes our key financial results. (Dollars in millions, except for per share amounts) Three months ended March31, 2025 2024 Revenue $ 1,074.2 $ 1,045.4 Operating income $ 251.7 $ 232.2 Net income attributable to common stockholders $ 142.9 $ 131.3 Diluted earnings per share $ 0.98 $ 0.89 Earnings excluding special items (1) $ 139.6 $ 131.9 Diluted earnings per share excluding special items (1) $ 0.96 $ 0.89 Diluted weighted average shares outstanding 145.3 147.9 Net cash provided by operating activities $ 311.1 $ 220.1 Net cash provided by operating activities excluding special items (1) $ 316.0 $ 220.1 (1) Earnings excluding special items, diluted earnings per share excluding special items, and net cash provided by operating activities excluding special items are non-GAAP financial measures. These items are also referred to as "adjusted earnings per share" and "adjusted operating cash flow". A reconciliation from net income attributable to common stockholders, diluted earnings per share, and net cash provided by operating activities in accordance with generally accepted accounting principles in the United States (GAAP) can be found later in this press release under the headings "Cash Flow and Capital Spending" and "Non-GAAP Financial Measures" in the Appendix at the end of this press release. Diluted earnings per share was $0.98 in the first quarter of 2025 compared to $0.89 in the first quarter of 2024. The current year quarter was favorably impacted by $5.0 million of net gains on divestitures and impairment charges. The prior year quarter was unfavorably impacted by $0.7 million of net losses on divestitures. Diluted earnings per share, excluding special items, was $0.96 in the first quarter of 2025 compared to $0.89 in the first quarter of 2024. Higher gross profit, lower interest expense and lower share count more than offset a higher tax rate resulting in 8% growth over the prior year quarter. Net cash provided by operating activities grew $91.0 million to $311.1 million in the first quarter of 2025 compared to $220.1 million in the first quarter of 2024. Net cash provided by operating activities, excluding special items, grew $95.9 million to $316.0 million in the first quarter of 2025 compared to $220.1 million in the first quarter of 2024. The growth in the quarter is attributable to higher operating income, lower cash interest as well as other working capital benefits, some of which are related to timing differences in the current quarter. OUTLOOK FOR 2025 Our annual guidance ranges for 2025 detailed below have not changed and are consistent with our previously reported outlook for 2025. Our outlook for diluted earnings per share from continuing operations excluding special items, at the midpoint of our guidance range, is anticipated to be within our expected long-term growth framework of 8%-12%. (Dollars in millions, except per share amounts) 2025 Outlook Diluted earnings per share excluding special items (1) $3.70 - $4.00 Net cash provided by operating activities excluding special items and cash taxes (1) $1,005 - $1,065 Cash taxes expected in 2025 (at the midpoint of Diluted earnings per share guidance) $175 Net cash provided by operating activities excluding special items (1) $830 - $890 Capital improvements at existing field locations $130 Development of cemetery property $160 Digital investments and corporate $25 Total maintenance, cemetery development, and other capital expenditures (Maintenancecapital expenditures) $315 (1) Diluted earnings per share excluding special items and net cash provided by operating activities excluding special items are non-GAAP financial measures. We normally reconcile these non-GAAP financial measures from diluted earnings per share and net cash provided by operating activities; however, diluted earnings per share and net cash provided by operating activities calculated in accordance with GAAP are not currently accessible on a forward-looking basis. Our outlook for 2025 excludes the following because this information is not currently available for 2025: Expenses net of insurance recoveries related to weather events and 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 or cash outflows associated with estimated litigation charges or legal settlements or the recognition of receivables for insurance recoveries associated with litigation, or deferred tax payments. The foregoing items could materially impact our forward-looking diluted earnings per share and/or our net cash provided by operating activities calculated in accordance with GAAP. CONFERENCE CALL AND WEBCAST We will host a conference call on Thursday, May 1, 2025, at 8:00 a.m. Central Time. A question and answer session will follow a brief presentation made by management. The conference call dial-in numbers are (888) 317-6003 (US) or (412) 317-6061 (International) with the passcode of 5800257. The conference call will also be broadcast live via the Internet and can be accessed through our website at www.sci-corp.com. A replay of the conference call will be available through May 8, 2025 and can be accessed at (877) 344-7529 (US) or (412) 317-0088 (International) with the passcode of 7260026. Additionally, a replay of the conference call will be available on our website for approximately three months. ABOUT SERVICE CORPORATION INTERNATIONAL Service Corporation International (NYSE: SCI), headquartered in Houston, Texas, is North America's leading provider of funeral, cemetery and cremation services, as well as final-arrangement planning in advance, serving more than 700,000 families each year. Our diversified portfolio of brands provides families and individuals a full range of choices to meet their needs, from simple cremations to full life celebrations and personalized remembrances. Our Dignity Memorial® brand is the name families turn to for professionalism, compassion, and attention to detail that is second to none. At March 31, 2025, we owned and operated 1,489 funeral service locations and 496 cemeteries (of which 309 are combination locations) in 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. For more information about Service Corporation International, please visit our website at www.sci-corp.com. For more information about Dignity Memorial®, please visit www.dignitymemorial.com. For additional information contact: [email protected] Investors: Trey Bocage - Director / Investor Relations (713) 525-3454 Media: Jay Andrew - Assistant Vice President / Corporate Communications (713) 525-3468 CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS The statements in this press release that are not historical facts are forward-looking statements made in reliance on the "safe harbor" protections provided under the Private Securities Litigation Reform Act of 1995. These statements may be accompanied by words such as "believe," "estimate," "project," "expect," "anticipate," "predict," or other similar words that convey the uncertainty of future events or outcomes. The absence of these words, however, does not mean that the statements are not forward-looking. These statements are based on assumptions that we believe are reasonable; however, many important factors could cause our actual results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by us, or on our behalf. Important factors, which could cause actual results to differ materially from those in forward-looking statements include, among others, the following: Our affiliated trust funds own investments in securities, which are affected by market conditions that are beyond our control. We may be required to replenish our affiliated funeral and cemetery trust funds to meet minimum funding requirements, which would have a negative effect on our earnings and cash flow. Our ability to execute our strategic plan depends on many factors, some of which are beyond our control. We may be adversely affected by the effects of inflation, significant reduction in consumer confidence and customer demand, and/or recession. Our results may be adversely affected by significant weather events, natural disasters, catastrophic events, or public health crises. Our credit agreements contain covenants that may prevent us from engaging in certain transactions. If we lost the ability to use surety bonding to support our preneed activities, we may be required to make material cash payments to fund certain trust funds. The financial condition of third-party life insurance companies that fund our preneed contracts may impact our future revenue. Unfavorable publicity could affect our reputation and business. Our failure to attract and retain qualified sales personnel and licensed funeral professionals could have an adverse effect on our business and financial condition. We use a combination of insurance, self-insurance, and large deductibles in managing our exposure to certain inherent risks; therefore, we could be exposed to unexpected costs that could negatively affect our financial performance. Declines in overall economic conditions beyond our control could reduce future potential earnings and cash flows and could result in future impairments to goodwill and/or other intangible assets. Any failure to maintain the security of the information relating to our customers, their loved ones, our associates, and our vendors could damage our reputation, could cause us to incur substantial additional costs and to become subject to litigation, and could adversely affect our operating results, financial condition, or cash flow. Our Canadian business exposes us to operational, economic, and currency risks. Our level of indebtedness could adversely affect our cash flows, our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, and may prevent us from fulfilling our obligations under our indebtedness. A failure of a key information technology system or process could disrupt and adversely affect our business. The funeral and cemetery industry is competitive. If the number of deaths in our markets declines, our cash flows and revenue may decrease. Changes in the number of deaths are not predictable from market to market or over the short term. If we are not able to respond effectively to changing consumer preferences, our market share, revenue, and/or profitability could decrease. The continuing upward trend in life expectancy and the number of cremations performed in North America could result in lower revenue, operating profit, and cash flows. Our funeral and cemetery businesses are high fixed-cost businesses. Risks associated with our supply chain could materially adversely affect our financial performance. Disruptions in global trade, including as a result of tariffs, trade restrictions, retaliatory trade measures or the effect of such actions on trading relationships between the United States and other countries could increase costs to our business. Regulation and compliance could have a material adverse impact on our financial results. Unfavorable results of litigation could have a material adverse impact on our financial statements. Cemetery operational claims could have a material adverse impact on our financial results. The application of unclaimed property laws by certain states to our preneed funeral and cemetery backlog could have a material adverse impact on our liquidity, cash flows, and financial results. Changes in taxation, or the interpretation of tax laws or regulations, as well as the inherent difficulty in quantifying potential tax effects of business decisions could have a material adverse effect on the results of our operations, financial condition, or cash flows. For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2024 Annual Report on Form 10-K. Copies of this document as well as other SEC filings can be obtained from our website at www.sci-corp.com. We assume no obligation and make no undertaking to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by us whether as a result of new information, future events, or otherwise. SERVICE CORPORATION INTERNATIONAL APPENDIX: RESULTS FOR THE FIRST QUARTER OF 2025 Consolidated Statement of Operations (Unaudited) (Dollars in thousands, except per share amounts) Three Months Ended March 31, 2025 2024 Revenue $ 1,074,167 $ 1,045,382 Cost of revenue (782,750) (771,169) Gross profit 291,417 274,213 Corporate general and administrative expenses (44,701) (41,325) Gains (losses) on divestitures and impairment charges, net 4,971 (684) Operating income 251,687 232,204 Interest expense (61,483) (64,352) Other income, net 3,152 2,462 Income before income taxes 193,356 170,314 Provision for income taxes (50,429) (39,040) Net income 142,927 131,274 Net (income) loss attributable to noncontrolling interests (47) 27 Net income attributable to common stockholders $ 142,880 $ 131,301 Basic earnings per share: Net income attributable to common stockholders $ 0.99 $ 0.90 Basic weighted average number of shares 144,116 146,266 Diluted earnings per share: Net income attributable to common stockholders $ 0.98 $ 0.89 Diluted weighted average number of shares 145,292 147,913 Consolidated Balance Sheet (Unaudited) (Dollars in thousands, except share amounts) March 31, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 227,159 $ 218,766 Receivables, net 96,151 94,341 Inventories 33,307 33,318 Income tax receivable 1,230 3,775 Other 34,197 27,130 Total current assets 392,044 377,330 Preneed receivables, net and trust investments 6,665,770 6,739,332 Cemetery property 2,135,601 2,129,404 Property and equipment, net 2,587,473 2,581,069 Goodwill 2,086,093 2,081,015 Deferred charges and other assets, net 1,322,983 1,317,256 Cemetery perpetual care trust investments 2,126,124 2,154,032 Total assets $ 17,316,088 $ 17,379,438 LIABILITIES & EQUITY Current liabilities: Accounts payable and accrued liabilities $ 641,762 $ 639,274 Current maturities of long-term debt 87,690 83,850 Income taxes payable 42,201 715 Total current liabilities 771,653 723,839 Long-term debt 4,738,245 4,751,448 Deferred revenue, net 1,770,528 1,755,170 Deferred tax liability 652,025 649,195 Other liabilities 506,679 513,480 Deferred receipts held in trust 5,109,978 5,162,525 Care trusts' corpus 2,115,360 2,145,112 Equity: Common stock, $1 per share par value, 500,000,000 shares authorized, 146,884,042 and 146,668,589 shares issued, respectively, and 143,273,999 and 144,694,887 shares outstanding, respectively 143,274 144,695 Capital in excess of par value 980,463 986,830 Retained earnings 534,032 553,701 Accumulated other comprehensive loss (6,694) (7,221) Total common stockholders' equity 1,651,075 1,678,005 Noncontrolling interests 545 664 Total equity 1,651,620 1,678,669 Total liabilities and equity $ 17,316,088 $ 17,379,438 Consolidated Statement of Cash Flows (Unaudited) (Dollars in thousands) Three months ended March 31, 2025 2024 Cash flows from operating activities: Net income $ 142,927 $ 131,274 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 54,126 50,219 Amortization of intangibles 4,200 4,321 Amortization of cemetery property 22,296 21,713 Amortization of loan costs 2,181 1,752 Provision for expected credit losses 2,311 4,185 Provision for deferred income taxes 2,669 2,412 (Gains) losses on divestitures and impairment charges, net (4,971) 684 Share-based compensation 3,841 3,926 Change in assets and liabilities, net of effects from acquisitions and divestitures: (Increase) decrease in receivables (104) 6,043 (Increase) decrease in other assets (2,365) 5,167 Increase (decrease) in payables and other liabilities 48,296 (10,446) Effect of preneed sales production and maturities: Decrease (increase) in preneed receivables, net and trust investments 5,076 (61,527) Increase in deferred revenue, net 16,051 34,170 Increase in deferred receipts held in trust 14,613 26,230 Net cash provided by operating activities 311,147 220,123 Cash flows from investing activities: Capital expenditures (78,185) (79,279) Business acquisitions, net of cash acquired (14,869) (15,839) Real estate acquisitions (2,011) (6,948) Corporate headquarters (8,916) (508) Proceeds from divestitures and sales of property and equipment 9,537 8,508 Payments for Company-owned life insurance policies (57) (2,739) Proceeds from Company-owned life insurance policies and other 3,757 — Net cash used in investing activities (90,744) (96,805) Cash flows from financing activities: Proceeds from issuance of long-term debt 185,000 115,000 Scheduled payments of debt (6,541) (5,828) Early payments and extinguishment of debt (195,000) (150,000) Proceeds from corporate headquarters debt facility 2,522 — Principal payments on finance leases (9,332) (9,019) Proceeds from exercise of stock options 3,907 17,237 Purchase of Company common stock (130,450) (49,461) Payments of dividends (45,991) (43,944) Bank overdrafts and other (9,809) (7,973) Net cash used in financing activities (205,694) (133,988) Effect of foreign currency 128 (1,826) Net increase (decrease) in cash, cash equivalents, and restricted cash 14,837 (12,496) Cash, cash equivalents, and restricted cash at beginning of period 221,399 224,761 Cash, cash equivalents, and restricted cash at end of period $ 236,236 $ 212,265 Consolidated Segment Results (See definitions of revenue line items later in this appendix.) (Dollars in millions, except funeral services performed and average revenue perservice) Three months ended March 31, 2025 2024 Consolidated funeral: Atneed revenue $ 329.1 $ 315.4 Matured preneed revenue 205.8 190.1 Core revenue 534.9 505.5 Non-funeral home revenue 27.6 23.7 Non-funeral home preneed sales revenue 22.2 29.1 Core general agency and other revenue 54.8 46.4 Total revenue $ 639.5 $ 604.7 Gross profit $ 154.0 $ 131.9 Gross profit percentage 24.1 % 21.8 % Funeral services performed 97,854 94,366 Average revenue per service $ 5,748 $ 5,608 (Dollars in millions) Three months ended March 31, 2025 2024 Consolidated cemetery: Atneed property revenue $ 37.2 $ 35.0 Atneed merchandise and service revenue 75.1 74.7 Total atneed revenue 112.3 109.7 Recognized preneed property revenue 188.7 199.7 Recognized preneed merchandise and service revenue 98.5 98.3 Total recognized preneed revenue 287.2 298.0 Core revenue 399.5 407.7 Other cemetery revenue 35.2 32.9 Total revenue $ 434.7 $ 440.6 Gross profit $ 137.4 $ 142.3 Gross profit percentage 31.6 % 32.3 % Comparable Funeral Results The table below details comparable funeral results of operations ("same store") for the three months ended March 31, 2025 and 2024. We consider comparable funeral operations to be those businesses owned for the entire period beginning January 1, 2024 and ending March 31, 2025. (Dollars in millions, except average revenue per service and averagerevenue per contract sold) Three months ended March 31, 2025 2024 Var % Comparable funeral revenue: Atneed revenue (1) $ 319.1 $ 314.2 $ 4.9 1.6 % Matured preneed revenue (2) 202.6 189.6 13.0 6.9 % Core revenue (3) 521.7 503.8 17.9 3.6 % Non-funeral home revenue (4) 27.5 23.6 3.9 16.5 % Non-funeral home preneed sales revenue (5) 22.2 29.0 (6.8) (23.4) % Core general agency and other revenue (6) 54.5 46.2 8.3 18.0 % Total comparable revenue $ 625.9 $ 602.6 $ 23.3 3.9 % Comparable gross profit $ 152.4 $ 131.7 $ 20.7 15.7 % Comparable gross profit percentage 24.3 % 21.9 % 2.4 % Comparable funeral services performed: Atneed 50,388 50,517 (129) (0.3) % Matured preneed 29,273 28,350 923 3.3 % Total core 79,661 78,867 794 1.0 % Non-funeral home 15,963 15,100 863 5.7 % Total comparable funeral services performed 95,624 93,967 1,657 1.8 % Comparable core cremation rate 57.0 % 56.6 % 0.4 % Total comparable cremation rate (7) 64.1 % 63.4 % 0.7 % Comparable funeral average revenue per service: Atneed $ 6,333 $ 6,220 $ 113 1.8 % Matured preneed 6,921 6,688 233 3.5 % Total core 6,549 6,388 161 2.5 % Non-funeral home 1,723 1,563 160 10.2 % Total comparable average revenue per service $ 5,743 $ 5,613 $ 130 2.3 % Comparable funeral preneed sales production: Total preneed sales $ 284.1 $ 316.2 $ (32.1) (10.2) % Core contracts sold 34,561 36,827 (2,266) (6.2) % Non-funeral home contracts sold 19,355 25,777 (6,422) (24.9) % Core average revenue per contract sold $ 6,533 $ 6,460 $ 73 1.1 % Non-funeral home average revenue per contract sold $ 3,014 $ 3,037 $ (23) (0.8) % (1) Atneed revenue represents merchandise and services sold and delivered or performed once death has occurred. (2) Matured preneed revenue represents merchandise and services sold on a preneed contract through our core funeral homes, which have been delivered or performed as well as the related merchandise and service trust fund income and other insurance benefits. (3) Core revenue represents the sum of merchandise and services sold on an atneed contract or preneed contract, which were delivered or performed once death has occurred through our core funeral homes. (4) Non-funeral home revenue represents services sold on a preneed or atneed contract through one of our non-funeral home sales channels (e.g. SCI Direct) and performed once death has occurred. (5) Non-funeral home preneed sales revenue represents travel protection, net and merchandise sold on a preneed contract that is delivered before death has occurred and general agency revenue from our non-funeral home sales channel. (6) Core general agency and other revenue primarily comprises core general agency revenue, which is commissions we receive from third-party insurance companies for life insurance policies sold to preneed customers for the purpose of funding preneed arrangements and core travel protection preneed sales, net. (7) Total comparable cremation rate includes the impact of cremation services through our non-funeral sales channel (e.g. SCI Direct). Total comparable funeral revenue increased by $23.3 million, or 3.9%, as a $17.9 million increase in core funeral revenue, an $8.3 million increase in core general agency and other revenue, and a $3.9 million increase in non-funeral home revenue was offset by a $6.8 million decrease in non-funeral home preneed sales revenue. Core funeral revenue increased by $17.9 million, or 3.6%, primarily due to a favorable 2.5% increase in core average revenue per service and a 1.0% increase in core funeral services performed. The core cremation rate increased 40 basis points to 57.0%. Non-funeral home revenue increased by $3.9 million primarily due to a favorable 10.2% increase in non-funeral home average revenue per service and a 5.7% increase in non-funeral home services performed. Non-funeral home preneed sales revenue decreased by $6.8 million, primarily due to an operational decision to defer the delivery of urns on preneed contracts to the time of need coupled with a $19.9 million, or 25.5% decline in non-funeral home preneed sales production. The declines in both revenue and production were impacted by expected administrative challenges in our transition from trust to insurance-funded contracts in certain states. Both of these impacts are short-term in nature as we will recognize now deferred urn revenue at the time of need. Partially offsetting these headwinds is an increase in general agency revenue as we shift more production to insurance-funded contracts. Core general agency and other revenue grew $8.3 million, primarily due to growth in general agency revenue from higher commission rates as a result of the change in our preneed insurance agreement. Comparable funeral gross profit increased $20.7 million to $152.4 million, and the gross profit percentage increased 240 basis points from 21.9% to 24.3%. This increase is primarily due to the increase in revenue mentioned above and our continued successful focus on managing our fixed cost structure. Comparable preneed funeral sales production decreased $32.1 million, or 10.2%, in the first quarter of 2025 compared to 2024. Core preneed sales production decreased by $12.1 million, or 5.1%, primarily due to the transition to our new preneed insurance provider in July 2024. Non-funeral home preneed sales production decreased $19.9 million, or 25.5%, primarily due to our transition from trust to insurance-funded contracts mentioned above. Comparable Cemetery Results The table below details comparable cemetery results of operations ("same store") for the three months ended March 31, 2025 and 2024. We consider comparable cemetery operations to be those businesses owned for the entire period beginning January 1, 2024 and ending March 31, 2025. (Dollars in millions) Three months ended March 31, 2025 2024 Var % Comparable cemetery revenue: Atneed property revenue $ 37.0 $ 35.0 $ 2.0 5.7 % Atneed merchandise and service revenue 74.7 74.7 — — % Total atneed revenue (1) 111.7 109.7 2.0 1.8 % Recognized preneed property revenue 187.8 199.7 (11.9) (6.0) % Recognized preneed merchandise and service revenue 98.2 98.3 (0.1) (0.1) % Total recognized preneed revenue (2) 286.0 298.0 (12.0) (4.0) % Core revenue (3) 397.7 407.7 (10.0) (2.5) % Other revenue (4) 35.2 33.0 2.2 6.7 % Total comparable revenue $ 432.9 $ 440.7 $ (7.8) (1.8) % Comparable gross profit $ 136.8 $ 142.6 $ (5.8) (4.1) % Comparable gross profit percentage 31.6 % 32.4 % (0.8) % Comparable cemetery preneed and atneed sales production: Property $ 233.4 $ 243.6 $ (10.2) (4.2) % Merchandise and services 204.4 199.3 5.1 2.6 % Discounts and other (3.0) (4.1) 1.1 26.8 % Preneed and atneed sales production $ 434.8 $ 438.8 $ (4.0) (0.9) % Preneed sales production $ 322.5 $ 330.8 $ (8.3) (2.5) % Recognition rate (5) 91.5 % 92.9 % (1) Atneed revenue represents property, merchandise, and services sold and delivered or performed once death has occurred. (2) Recognized preneed revenue represents property, merchandise, and services sold on a preneed contract, which were delivered or performed as well as the related merchandise and service trust fund income. (3) Core revenue represents the sum of property, merchandise, and services that have been delivered or performed as well as the related merchandise and service trust fund income. (4) Other revenue is primarily related to endowment care trust fund income, royalty income, and interest and finance charges earned from customer receivables on preneed installment contracts. (5) Represents the ratio of current period core revenue stated as a percentage of current period preneed and atneed sales production. Total comparable cemetery revenue decreased $7.8 million, or 1.8%, in the first quarter of 2025 compared to the first quarter of 2024. The decrease was primarily due to a $10.0 million decline in core revenue, partially offset by an increase in other revenue of $2.2 million. Core revenue was lower by $10.0 million primarily due to a decline of $11.9 million in recognized preneed property revenue due to lower preneed property sales production. The decline was partially offset by a $2.0 million increase in atneed revenue. Comparable cemetery gross profit decreased by $5.8 million to $136.8 million. The gross profit percentage decreased from 32.4% to 31.6% due to the decline in revenue mentioned above, partially offset by the impact of effective cost control measures. Comparable preneed cemetery sales production decreased $8.3 million, or 2.5%, primarily due to a decline in large sales, partially offset by a modest increase in core preneed cemetery sales production. Other Financial Results Corporate general and administrative expenses were $44.7 million in the first quarter of 2025, up $3.4 million compared to the first quarter of 2024, due to higher workers compensation costs as well as higher expenses related to the timing of incentive compensation accruals versus the prior year quarter. Interest expense decreased $2.9 million to $61.5 million in the first quarter of 2025 primarily due to lower rates quarter over quarter on our floating rate debt, partially offset by slightly higher average debt outstanding. The GAAP effective income tax rate for the first quarter of 2025 was 26.1%, up from 22.9% in the prior year quarter. Our adjusted effective tax rate was 25.9% in the first quarter of 2025 compared to 22.9% in the prior year quarter. The higher effective tax rate in the current period was primarily due to certain excess tax benefits recognized on the settlement of employee share-based awards in the prior year quarter that are no longer deductible. Cash Flow and Capital Spending (Dollars in millions) Three months ended March 31, 2025 2024 Net cash provided by operating activities $ 311.1 $ 220.1 Legal settlement payments 0.3 — Restructuring charge payments 4.6 — Net cash provided by operating activities excluding special items $ 316.0 $ 220.1 Cash taxes included in net cash provided by operating activities excluding specialitems $ 4.9 $ 1.8 Net cash provided by operating activities excluding special items grew $95.9 million to $316.0 million in the first quarter of 2025 compared to $220.1 million in the first quarter of 2024. The growth in the quarter is primarily due to improvement in working capital of $65.0 million, driven by $36.9 million of higher cemetery installment receipts and other preneed working capital benefits and $28.4 million associated with payroll timing. Additionally, the growth for the quarter was positively impacted by $19.5 million of higher operating income and $14.5 million of lower cash interest. The decrease in cash interest was primarily due to timing associated with the bond financing and coinciding reduction of our drawn bank credit facility completed this past September, as well as lower rates on floating rate debt. (Dollars in millions) Three months ended March 31, 2025 2024 Capital improvements at existing field locations $ 20.7 $ 24.9 Development of cemetery property 41.4 38.7 Digital investments and corporate 4.8 6.8 Total maintenance, cemetery development, and other capital expenditures (Maintenance capital expenditures) $ 66.9 $ 70.4 Growth capital expenditures/construction of new funeral service locations 11.3 8.9 Total capital expenditures $ 78.2 $ 79.3 Total capital expenditures decreased in the current quarter by $1.1 million, primarily due to the timing of capital improvements at existing field locations and lower spend on digital investments and corporate, partially offset by higher spend due to the timing of cemetery property development and higher growth capital expenditures. Trust Fund Returns Total trust fund returns include realized and unrealized gains and losses and dividends and are shown gross without netting of certain fees. A summary of our consolidated trust fund returns as of March 31, 2025 is set forth below: Three Months Preneed funeral (0.7) % Preneed cemetery (0.5) % Cemetery perpetual care (0.4) % Combined trust funds (0.5) % Non-GAAP Financial Measures Earnings excluding special items and diluted earnings per share excluding special items shown above are non-GAAP financial measures. We believe these non-GAAP financial measures provide a consistent basis for comparison between quarters and years, and better reflect the performance of our core operations, as they are not influenced by certain income or expense items not affecting operations. We also believe these measures help facilitate comparisons to our competitors' operating results. Set forth below is a reconciliation of our reported net income attributable to common stockholders to earnings excluding special items and our GAAP diluted earnings per share to diluted earnings per share excluding special items. We do not intend for this information to be considered in isolation or as a substitute for other measures of performance prepared in accordance with GAAP. (Dollars in millions, except diluted EPS) Three months ended March 31, 2025 2024 Net Income Diluted EPS Net Income Diluted EPS Net income attributable to common stockholders, as reported $ 142.9 $ 0.98 $ 131.3 $ 0.89 Pre-tax reconciling items: (Gains) losses on divestitures and impairment charges, net (5.0) (0.03) 0.7 — Tax reconciling items: Tax effect from significant items 1.3 0.01 (0.1) — Change in uncertain tax reserves and other 0.4 — — — Earnings excluding special items and diluted earnings per share excluding special items $ 139.6 $ 0.96 $ 131.9 $ 0.89 Diluted weighted average shares outstanding 145.3 147.9 SOURCE Service Corporation International WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

SERVICE CORPORATION INTERNATIONAL ANNOUNCES FIRST QUARTER 2025 FINANCIAL RESULTS AND CONFIRMS 2025 GUIDANCE

FAQ

Why Bullish?

How important is it?

Why Short Term?

Related Companies

Related News