Service Corp Intl Files Q2 2024 10-Q

TL;DR

**SCI filed its 10-Q for June 30, 2024. All systems go.**

AI Summary

Service Corporation International (SCI) filed its quarterly report for the period ended June 30, 2024. The company, incorporated in Texas with its principal executive offices in Houston, is registered with the SEC under file number 1-6402-1. Its common stock is traded on the New York Stock Exchange under the symbol SCI.

Why It Matters

This filing provides investors with the latest financial performance and operational details of Service Corporation International, a major player in the death care industry.

Risk Assessment

Risk Level: low — This is a standard quarterly filing providing financial updates, not indicating any immediate or significant new risks.

Key Players & Entities

• Service Corporation International (company) — Registrant
• June 30, 2024 (date) — Quarterly period end date
• Texas (location) — State of incorporation
• Houston (location) — Principal executive offices location
• 1-6402-1 (other) — Commission file number
• SCI (ticker) — Trading symbol for Common Stock
• New York Stock Exchange (company) — Exchange where Common Stock is registered

FAQ

Key Financial Figures

• $1 — ange on Which Registered Common Stock ($1 par value) SCI New York Stock Exchange

Filing Documents

• sci-20240630.htm (10-Q) — 1628KB
• sci-10q20240630.pdf (10-Q) — 117539KB
• sci-6302024x10qxex311.htm (EX-31.1) — 8KB
• sci-6302024x10qxex312.htm (EX-31.2) — 8KB
• sci-6302024x10qxex321.htm (EX-32.1) — 3KB
• sci-6302024x10qxex322.htm (EX-32.2) — 3KB
• sci-20240630_g1.jpg (GRAPHIC) — 6KB
• 0000089089-24-000137.txt ( ) — 170693KB
• sci-20240630.xsd (EX-101.SCH) — 54KB
• sci-20240630_cal.xml (EX-101.CAL) — 58KB
• sci-20240630_def.xml (EX-101.DEF) — 293KB
• sci-20240630_lab.xml (EX-101.LAB) — 640KB
• sci-20240630_pre.xml (EX-101.PRE) — 481KB
• sci-20240630_htm.xml (XML) — 1493KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 5 Item 1.

Financial Statements

Financial Statements 5 Unaudited Condensed Consolidated Statement of Operations - Three and Six Months Ended June 30, 2024 & 2023 5 Unaudited Condensed Consolidated Statement of Comprehensive Income - Three and Six Months Ended June 30, 2024 & 2023 6 Unaudited Condensed Consolidated Balance Sheet - June 30, 2024 & December 31, 2023 7 Unaudited Condensed Consolidated Statement of Cash Flows - Six Months Ended June 30, 2024 & 2023 8 Unaudited Condensed Consolidated Statement of Equity - Three and Si x Months Ended June 30, 2024 & 2023 9 Notes to Unaudited Condensed Consolidated Financial Statements 11 1. Nature of Operations 11 2. Summary of Significant Accounting Policies 11 3. Preneed Activities 14 4. Income Taxes 20 5. Debt 20 6. Credit Risk and Fair Value of Financial Instruments 22 7. Equity 22 8. Segment Reporting 23 9. Commitments and Contingencies 24 10. Earnings Per Share 25 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 The Company 26 Financial Condition, Liquidity, and Capital Resources 26 Results of Operations - Three and Six Months Ended June 30, 2024 & 2023 33 Critical Accounting Policies 38 Cautionary Statement on Forward-Looking Statements 38 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 40 Item 4.

Controls and Procedures

Controls and Procedures 40

. OTHER INFORMATION

PART II . OTHER INFORMATION 41 Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A.

Risk Factors

Risk Factors 41 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41 Item 3. Defaults Upon Senior Securities 41 Item 4. Mine Safety Disclosures 41 Item 5. Other Information 41 Item 6. Exhibits 42 SIGNATURE 43 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 End

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Service Corporation International Condensed Consolidated Statement of Operations (Unaudited) Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands, except per share amounts) Revenue Property and merchandise revenue $ 528,013 $ 532,857 $ 1,044,896 $ 1,048,099 Service revenue 421,017 409,943 872,962 849,448 Other revenue 84,986 70,614 161,540 144,576 Total revenue 1,034,016 1,013,414 2,079,398 2,042,123 Costs of revenue Cost of property and merchandise ( 271,415 ) ( 273,299 ) ( 535,008 ) ( 531,901 ) Cost of service ( 237,609 ) ( 229,734 ) ( 473,657 ) ( 461,032 ) Overhead and other expenses ( 267,077 ) ( 248,913 ) ( 538,605 ) ( 498,628 ) Costs of revenue ( 776,101 ) ( 751,946 ) ( 1,547,270 ) ( 1,491,561 ) Gross profit 257,915 261,468 532,128 550,562 Corporate general and administrative expenses ( 38,998 ) ( 34,921 ) ( 80,323 ) ( 79,081 ) Gains on divestitures and impairment charges, net 1,924 6,954 1,240 7,645 Operating income 220,841 233,501 453,045 479,126 Interest expense ( 64,384 ) ( 59,476 ) ( 128,736 ) ( 113,392 ) Losses on early extinguishment of debt — ( 54 ) — ( 1,114 ) Other income, net 1,725 1,310 4,187 2,519 Income before income taxes 158,182 175,281 328,496 367,139 Provision for income taxes ( 39,962 ) ( 42,929 ) ( 79,002 ) ( 89,958 ) Net income 118,220 132,352 249,494 277,181 Net income attributable to noncontrolling interests ( 54 ) ( 164 ) ( 27 ) ( 230 ) Net income attributable to common stockholders $ 118,166 $ 132,188 $ 249,467 $ 276,951 Basic earnings per share: Net income attributable to common stockholders $ 0.81 $ 0.87 $ 1.71 $ 1.82 Basic weighted average number of shares 145,297 151,233 145,782 152,174 Diluted earnings per share: Net income attributable to common stockholders $ 0.81 $ 0.86 $ 1.69 $ 1.80 Diluted weighted average number of shares 146,784 153,132 147,348 154,207 (See notes to unaudited condensed consolidated financ

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