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.