Service Corporation International Files 2023 Annual Report

TL;DR

<b>Service Corporation International filed its 2023 10-K, reporting $4.27 billion in revenue and $900.1 million in net income.</b>

AI Summary

SERVICE CORP INTERNATIONAL (SCI) filed a Annual Report (10-K) with the SEC on February 13, 2024. Service Corporation International reported total revenues of $4,265.7 million for the fiscal year ended December 31, 2023. The company's net income for the fiscal year 2023 was $900.1 million. Earnings per diluted share for fiscal year 2023 were $3.72. Total assets as of December 31, 2023, amounted to $10,171.5 million. Total debt as of December 31, 2023, was $3,799.8 million.

Why It Matters

For investors and stakeholders tracking SERVICE CORP INTERNATIONAL, this filing contains several important signals. The filing provides a comprehensive overview of SCI's financial performance and position for the fiscal year 2023, including detailed revenue breakdowns and balance sheet figures. Investors can analyze the company's profitability, asset base, and debt levels to assess its financial health and future prospects.

Risk Assessment

Risk Level: medium — SERVICE CORP INTERNATIONAL shows moderate risk based on this filing. The company operates in the death care industry, which is subject to demographic trends and economic conditions that could impact demand for its services and products.

Analyst Insight

Monitor SCI's revenue growth and net income trends in upcoming filings to assess its ability to navigate industry challenges and capitalize on market opportunities.

Revenue Breakdown

Key Numbers

• 4,265,700,000 — Total Revenues (Fiscal Year Ended December 31, 2023)
• 900,100,000 — Net Income (Fiscal Year Ended December 31, 2023)
• 3.72 — Earnings Per Diluted Share (Fiscal Year Ended December 31, 2023)
• 10,171,500,000 — Total Assets (As of December 31, 2023)
• 3,799,800,000 — Total Debt (As of December 31, 2023)

Key Players & Entities

• Service Corporation International (company) — Filer
• 2023 (date) — Fiscal Year End
• 1231 (date) — Fiscal Year End
• 2024-02-13 (date) — Filed As Of Date
• 7135225141 (phone) — Business Phone
• TX (state) — State of Incorporation
• 1929 ALLEN PKWY (address) — Business Address Street 1
• HOUSTON (city) — Business Address City

Forward-Looking Statements

• The company's share count will remain relatively stable in the near term, barring significant buybacks or new issuances. (SERVICE CORP INTERNATIONAL) — medium confidence, target: 2024-12-31

FAQ

Risk Factors

• Industry Trends [medium — market]: The death care industry is subject to demographic trends, economic conditions, and changes in consumer preferences, which could affect demand for services and products.
• Integration of Acquisitions [medium — operational]: The company's ability to successfully integrate acquired businesses is critical to realizing anticipated synergies and achieving strategic objectives.
• Debt Management [medium — financial]: The company's level of indebtedness could impact its financial flexibility and ability to fund operations or pursue growth opportunities.

Key Financial Figures

• $1 — ange on Which Registered Common Stock ($1 par value) SCI New York Stock Exchange
• $64.59 — 29 based upon a closing market price of $64.59 on June 30, 2023 of a share of common s
• $14.8 billion — lled funeral and cemetery contracts was $14.8 billion and $13.7 billion at December 31, 2023
• $13.7 billion — emetery contracts was $14.8 billion and $13.7 billion at December 31, 2023 and 2022. The fol

Filing Documents

• sci-20231231.htm (10-K) — 2813KB
• sci-12312023x10kxex104.htm (EX-10.4) — 21KB
• sci-12312023x10kxex211.htm (EX-21.1) — 431KB
• sci-12312023x10kxex231.htm (EX-23.1) — 2KB
• sci-12312023x10kxex311.htm (EX-31.1) — 8KB
• sci-12312023x10kxex312.htm (EX-31.2) — 8KB
• sci-12312023x10kxex321.htm (EX-32.1) — 3KB
• sci-12312023x10kxex322.htm (EX-32.2) — 3KB
• sci-12312023x10kxex971.htm (EX-97.1) — 24KB
• sci-20231231_g1.jpg (GRAPHIC) — 353KB
• sci-20231231_g2.jpg (GRAPHIC) — 314KB
• sci-20231231_g3.jpg (GRAPHIC) — 610KB
• sci-20231231_g4.jpg (GRAPHIC) — 315KB
• sci-20231231_g5.jpg (GRAPHIC) — 105KB
• sci-20231231_g6.jpg (GRAPHIC) — 316KB
• sci-20231231_g7.jpg (GRAPHIC) — 316KB
• 0000089089-24-000011.txt (&nbsp;) — 21842KB
• sci-20231231.xsd (EX-101.SCH) — 109KB
• sci-20231231_cal.xml (EX-101.CAL) — 94KB
• sci-20231231_def.xml (EX-101.DEF) — 621KB
• sci-20231231_lab.xml (EX-101.LAB) — 1422KB
• sci-20231231_pre.xml (EX-101.PRE) — 938KB
• sci-20231231_htm.xml (XML) — 2745KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 14 Item 1B. Unresolved Staff Comments 20 Item 1C. Cybersecurity 20 Item 2.

Properties

Properties 22 Item 3.

Legal Proceedings

Legal Proceedings 22 Item 4. Mine Safety Disclosures 22 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 23 Item 6. [Reserved] 24 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 36 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 38 Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure 84 Item 9A.

Controls and Procedures

Controls and Procedures 84 Item 9B. Other Information 85 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 85 PART III Item 10. Directors, Executive Officers, and Corporate Governance 86 Item 11.

Executive Compensation

Executive Compensation 86 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 86 Item 13. Certain Relationships and Related Transactions and Director Independence 86 Item 14. Principal Accountant Fees and Services 86 PART IV Item 15. Exhibits and Financial Statement Schedules 87 Item 16. Form 10-K Summary 89

Signatures

Signatures 90 2 Service Corporation International Glossary The following terms are common to the deathcare industry, are used throughout this report, and have the following meanings: Atneed — Funeral, including cremation, and cemetery arrangements sold once death has occurred. Average Revenue per Service — Average revenue per funeral service performed, excluding the impact of non-funeral home preneed sales revenue, core general agency revenue, and certain other revenue. Cancellation — Termination of a preneed contract, which relieves us of the obligation to provide the goods and services included in the contract. Cancellations may be requested by the customer or be initiated by us for failure to comply with the contractual terms of payment. State or provincial laws govern the amount of refund, if any, owed to the customer. Care Trusts' Corpus — The deposits and net realized capital gains included in the perpetual care trusts that may not be withdrawable. In certain states, some or all of the net realized capital gains can also be distributed. Additionally, some states allow a total return distribution that may contain elements of income, capital appreciation, and principal. Cemetery Marker — An item used to identify the deceased person in a particular burial space, crypt, niche, or cremation memorialization property. Permanent burial and cremation memorialization cemetery markers are usually made of bronze or stone. Cemetery Merchandise and Services — Merchandise and services used in connection with a cemetery interment, including stone and bronze memorials, cemetery markers, outer burial containers, floral placement, graveside services, merchandise installations, urns, and interments. Cemetery Perpetual Care Trust or Endowment Care Fund (ECF) — A trust fund established for the purpose of maintaining cemetery grounds and property into perpetuity. For these trusts, the corpus remains in the trust in perpetuity and the investment earnings or elected distr

Business

Item 1. Business General We are North America's largest provider of deathcare products and services, with a network of funeral service locations and cemeteries unequaled in geographic scale and reach. At December 31, 2023, we operated 1,483 funeral service locations and 489 cemeteries (including 305 funeral service/cemetery combination locations), which are geographically diversified across 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. We are well known for our Dignity Memorial brand, North America's first transcontinental brand of deathcare products and services. Our other brands include Dignity Planning , National Cremation Society , Advantage Funeral and Cremation Services, Funeraria del Angel , Making Everlasting Memories , Neptune Society and Trident Society . Our funeral service and cemetery operations consist of funeral service locations, cemeteries, funeral service/cemetery combination locations, crematoria, and other related businesses, which enable us to serve a wide array of customer needs. We sell cemetery property and funeral and cemetery merchandise and services at the time of need and on a preneed basis. Human Capital Management At December 31, 2023, we employed 17,612 full-time individuals and 7,310 part-time individuals. Of the full-time associates, 14,840 were employed in the funeral and cemetery operations and 2,772 were employed in corporate or other overhead areas of our business. Approximately 2.5% of our associates are represented by unions. Although labor disputes occur from time to time, relations with associates are generally considered favorable. We reach out to our associates for feedback throughout their employment at SCI using a variety o f voluntary surveys ensuring we are meeting the needs and expectations of our workforce. Associate Benefits Eligible associates in the United States may elect coverage under our group health and life insurance plans. Associates covered by a collective bargaini

View Full Filing

View this 10-K filing on SEC EDGAR