Finance

SCI fourth quarter earnings beat estimates.

Foundation Partners why I partnered

Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, issued fourth quarter 2016 financials.  Here are the highlights.

  • Quarterly revenue increased by 5% to $809 due primarily to an increase in cemetery preneed revenue.  SCI funeral home revenues were flat.
  • Net income declined by 11% to $66 million in the fourth quarter of 2016 due to higher tax rates related to business divestitures, a pension termination settlement and an adjustment of deferred tax assets related to the Stewart acquisition during 2013.
  • The company’s cremation rate was 53% during the fourth quarter of 2016, up from 52% during the fourth quarter of 2015.
  • SCI had $62 million in capital improvements during the fourth quarter of 2016 consisting of capital improvements at existing facilities ($28 million), development of cemeteries ($29 million) and construction of new funeral homes ($5 million).  There were no major acquisitons.
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