SERVICE CORP INTERNATIONAL
For the period ended Mar 31, 2025. Filed May 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 1, 2025
SCI$73.74-2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0000089089-24-000175
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe CompanyFinancial Condition, Liquidity, and Capital ResourcesCash FlowResults of Operations - Three and Nine Months EndedCritical Accounting PoliciesCautionary Statement on Forward-Looking StatementsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0000089089-25-000058
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe CompanyFinancial Condition, Liquidity, and Capital ResourcesCash FlowResults of Operations - Three Months EndedCritical Accounting PoliciesCautionary Statement on Forward-Looking StatementsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 207 previous paragraphs and 175 current paragraphs.
101 unchanged; 57 reworded; 15 added; 39 removed; 10 previous and 2 current paragraphs rearranged.
Tables are not compared: 11 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
Since the start of 2025, the U.S. government has announced and rescinded multiple tariffs on several foreign jurisdictions, which has increased uncertainty regarding the ultimate effect of the tariffs on economic conditions. Current uncertainties about tariffs and their effects on trading relationships may affect costs for and availability of raw materials or contribute to inflation in the markets in which we operate. Although we are continuing to monitor the economic effects of such announcements, as well as opportunities to mitigate their related impacts, costs and other effects associated with the tariffs remain uncertain.
Current report
•an $8.4 million increase in capital expenditures related to construction of our new corporate headquarters.
Current report
•a $2.5 million increase in borrowings from our corporate headquarters debt facility.
Current report
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.
Current report
Adjusted comparable funeral revenue increased by $21.8 million, or 4.1%, primarily due to a favorable 2.3% increase in total average revenue per service and by a 1.8% increase in total funeral services performed. The cremation rate increased 70 basis points to 64.1%.
Current report
The $7.8 million, or 1.8%, decrease in comparable cemetery revenue was primarily attributable to a $10.0 million decrease in comparable cemetery 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. This decline was partially offset by a $2.0 million increase in atneed revenue.
Current report
Corporate general and administrative expenses increased $3.4 million to $44.7 million for the three months ended March 31, 2025 due to higher workers compensation costs as well as higher expenses related to the timing of incentive compensation accruals versus the prior year quarter.
Current report
•We may be adversely affected by the effects of inflation, significant reduction in consumer confidence and customer demand, and/or recession.
Current report
•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.
Removed paragraphs (39)
Previous report
•a $13.9 million increase in other investing activities primarily for investments in renewable energy tax credits,
Previous report
As of September 30, 2024, we had an increase of $161.7 million in surety bonds supporting preneed funeral obligations related to certain legal matters discussed in Part I, Item 1. Financial Statements, Note 9.
Previous report
In addition to the above items, operating results are relatively flat over the prior year quarter. Also, higher interest expense and corporate general and administrative expenses were partially offset by a lower tax rate and lower share count.
Previous report
36 Service Corporation International
Previous report
Consolidated revenue from funeral operations was $566.0 million for the three months ended September 30, 2024 compared to $554.8 million for the same period in 2023. This $11.2 million increase is primarily attributable to the $5.9 million increase in revenue from acquired and newly constructed properties and the $7.0 million increase in comparable revenue.
Previous report
Comparable revenue from funeral operations was $556.9 million for the three months ended September 30, 2024 compared to $549.9 million for the same period in 2023. This $7.0 million, or 1.3%, increase is primarily due to a $4.4 million increase in core funeral revenue and a $7.6 million increase in core general agency revenue and other revenue offset by a $5.5 million decrease in non-funeral home preneed sales revenue.
Previous report
Consolidated revenue from our cemetery operations increased $0.9 million, or 0.2%, for the three months ended September 30, 2024 compared to the same period in 2023 primarily due to a $1.0 million increase in revenue contributed by newly constructed and acquired properties.
Previous report
The comparable cemetery revenue was flat to prior year primarily due to a $4.8 million decrease in core revenue, which was offset by a $4.8 million increase in other revenue. The decrease in core revenue was driven by a $3.5 million decline in atneed revenue combined with a $1.3 million decrease in total recognized preneed revenue. Growth in recognized preneed merchandise and service revenue of $10.3 million from higher quality sales averages maturing out of the backlog was offset by a decline of $11.6 million in recognized preneed property revenue. Other revenue was higher by $4.8 million, or 16.5%, compared to the prior year quarter primarily from an increase in endowment care trust fund income related to the expansion of our total return investment strategy in certain states.
Previous report
Consolidated cemetery gross profit slightly increased $0.9 million, or 0.6%, in the three months ended September 30, 2024 compared to the same period in 2023, which is primarily attributable to a $0.3 million increase in gross profit contributed by newly constructed and acquired properties and a $0.6 million increase in comparable cemetery gross profit. Comparable cemetery gross profit slightly increased $0.6 million to $144.9 million, and the gross profit percentage increased to 32.4% from 32.3%. This growth in gross profit on relatively flat revenue reflects our continued focus on managing our fixed cost structure.
Previous report
Corporate general and administrative expenses were $43.7 million in the third quarter of 2024 compared to the third quarter of 2023 of $33.2 million. The current year third quarter was pressured by long-term incentive compensation plan expenses that were impacted by the growth in our stock price. Conversely, during the prior year third quarter we saw a decline in our stock price benefiting our long-term incentive compensation plan expenses.
Previous report
Interest expense increased $4.3 million to $65.8 million for the third quarter of 2024 primarily due to higher average balances quarter over quarter on our floating rate debt.
Previous report
Other income, net increased $2.7 million to $2.8 million for the three months ended September 30, 2024 primarily due to higher investment income from higher investment balances and new investment products compared to the prior year.
Previous report
Nine Months Ended September 30, 2024 and 2023
Previous report
Management Summary
Previous report
Non-funeral home preneed sales revenue decreased by $24.8 million primarily due to a decline of non-funeral home preneed sales production of $10.5 million, or 4.5%, impacted by our transition from trust to insurance-funded contracts. Core general agency and other revenue grew $12.6 million, primarily due to growth in general agency revenue from higher commission rates, primarily as a result of our new preneed insurance marketing agreement.
Previous report
Funeral Gross Profit
Previous report
Consolidated funeral gross profit decreased $34.6 million, or 9.2%, in the first nine months of 2024 compared to the same period in 2023. This decrease is primarily attributable to the $36.2 million, or 9.7%, decrease in comparable funeral gross profit. Comparable funeral gross profit decreased $36.2 million to $338.1 million and the comparable gross profit percentage decreased from 21.8% to 19.7%. This decrease is primarily due to the decline in revenue described above coupled with higher fixed costs, including the timing of incentive compensation costs compared to the prior year.
Previous report
The $33.1 million, or 2.5%, increase in comparable cemetery revenue was primarily attributable to a $21.3 million increase in comparable cemetery core revenue. This increase was primarily a result of a $25.8 million increase in total recognized preneed revenue, which benefited from growth in comparable preneed sales production of $10.4 million, or 0.8%, and trust fund income.
Previous report
Cemetery Gross Profit
Previous report
Other Financial Statement Items
Previous report
Corporate General and Administrative Expenses
Previous report
Corporate general and administrative expenses were $124.1 million for the nine months ended September 30, 2024 compared to $112.3 million for the same period in 2023. The current year and prior year were inversely impacted by long-term incentive compensation plan expenses that are tied to the changes in our stock price.
Previous report
Other income, net increased $4.4 million to $7.0 million for the nine months ended September 30, 2024 primarily due to higher investment income from higher investment balances and new investment products compared to the prior year.
Previous report
Provision for Income Taxes
Previous report
Weighted Average Shares
Reworded paragraphs (57)
Previous wording
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 September 30, 2024, we operated 1,495 funeral service locations and 494 cemeteries (including 307 funeral service/cemetery combination locations), which are geographically diversified across 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. Our funeral 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. Our financial position is enhanced by our $16.0 billion backlog of future revenue from both trust and insurance-funded preneed sales at September 30, 2024. Preneed selling provides us with a strategic opportunity to gain future market share. We also believe it adds to the stability and predictability of our revenue and cash flows. While revenue on the majority of preneed merchandise and service sales is deferred until the time of need, sales of preneed cemetery property provide opportunities for full current revenue recognition to the extent that the property is developed and available for use.
Current wording
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 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. Our funeral 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. Our financial position is enhanced by our $15.9 billion backlog of future revenue from both trust and insurance-funded preneed sales at March 31, 2025. Preneed selling provides us with a strategic opportunity to gain future market share. We also believe it adds to the stability and predictability of our revenue and cash flows. While revenue on the majority of preneed merchandise and service sales is deferred until the time of need, sales of preneed cemetery property provide opportunities for full current revenue recognition to the extent that the property is developed and available for use.
Previous wording
We strive to offer families exceptional service in planning life celebrations and personalized remembrances. Our Dignity Memorial® brand serves approximately 600,000 families each year with professionalism, compassion, and attention to detail.
Current wording
We strive to offer families exceptional service in planning life celebrations and personalized remembrances. Our Dignity Memorial® brand serves with professionalism, compassion, and attention to detail approximately 700,000 families each year at their time of need or through prearrangement sales services.
Previous wording
Factors affecting our operating results include: demographic trends in terms of population growth and average age, which impact death rates and number of deaths; establishing and maintaining leading market share positions supported by strong local heritage and relationships; effectively responding to increasing cremation trends by selling complementary services and merchandise; controlling salary and merchandise costs; and exercising pricing leverage related to our atneed revenue. The average revenue per funeral contract is influenced by the mix of traditional and cremation services because our average revenue for cremations is lower than that for traditional burials. To further enhance revenue opportunities, we continue to focus on our cremation customers' preferences and remaining relevant by developing additional memorialization merchandise and services that specifically appeal to cremation customers. We believe the presentation of these additional merchandise and services through our customer-facing technology improves our customers' experience by reducing administrative burdens and allowing them to visualize the enhanced product and service offerings, which we believe will help drive increases in the average revenue for a cremation in future periods.
Current wording
Factors affecting our operating results include: demographic trends in terms of population growth and average age, which impact death rates and number of deaths; establishing and maintaining leading market share positions supported by strong local heritage and relationships; effectively responding to increasing cremation trends by selling complementary services and merchandise; controlling salary and merchandise costs; and exercising pricing leverage related to our atneed revenue. The average revenue per funeral contract is influenced by the mix of traditional and cremation services because our average revenue for cremations is lower than that for traditional burials. To further enhance revenue opportunities, we continue to focus on our cremation customers' preferences, remaining relevant by developing additional memorialization merchandise and services that specifically appeal to cremation customers. We believe the presentation of these additional merchandise and services through our customer-facing technology improves our customers' experience by reducing administrative burdens and allowing them to visualize the enhanced product and service offerings, which we believe will help drive increases in the average revenue for a cremation in future periods.
Previous wording
We rely on cash flow from operations as a significant source of liquidity. Our cash flow from operating activities provided $680.8 million in the first nine months of 2024. As of September 30, 2024, we had $1,351.0 million in remaining borrowing capacity under our Bank Credit Facility.
Current wording
We rely on cash flow from operations as a significant source of liquidity. Our cash flow from operating activities provided $311.1 million in the first three months of 2025. As of March 31, 2025, we had $1,351.0 million in remaining borrowing capacity under our Bank Credit Facility.
Previous wording
Return Excess Cash to Shareholders. Absent strategic acquisition or other higher return opportunities, we intend to return excess cash to shareholders. Our quarterly dividend rate has steadily grown from $0.025 per common share in 2005 to $0.30 per common share in 2024. We target a payout ratio of 30% to 40% of after tax earnings excluding special items and intend to grow our cash dividend commensurate with the growth in our business. While we intend to pay regular quarterly cash dividends for the foreseeable future, all future dividends are subject to limitations in our debt covenant, and final determination by our Board of Directors each quarter upon review of our financial performance.
Current wording
Return Excess Cash to Shareholders. Absent strategic acquisition or other higher return opportunities, we intend to return excess cash to shareholders. Our quarterly dividend rate has steadily grown from $0.025 per common share in 2005 to $0.32 per common share in 2025. We target a payout ratio of 30% to 40% of after tax earnings excluding special items and intend to grow our cash dividend commensurate with the growth in our business. While we intend to pay regular quarterly cash dividends for the foreseeable future, all future dividends are subject to limitations in our debt covenants, and final determination by our Board of Directors each quarter upon review of our financial performance.
Previous wording
Managing Debt. We continue to focus on maintaining optimal levels of liquidity and financial flexibility. We generate a relatively consistent annual cash flow stream that is generally resistant to down economic cycles. This cash flow stream and our significant liquidity allow us to opportunistically manage our debt maturity profile as we maintain a target leverage ratio of 3.5x to 4.0x.
Current wording
Managing Debt. We continue to focus on maintaining optimal levels of liquidity and financial flexibility. We generate a relatively consistent annual cash flow stream that is generally resistant to down economic cycles. This cash flow stream and our significant liquidity allow us to opportunistically manage our debt maturity profile as we intend to maintain a target leverage ratio of 3.5x to 4.0x.
Previous wording
Net cash provided by operating activities was $680.8 million and $591.5 million for the nine months ended September 30, 2024 and 2023, respectively.
Current wording
Net cash provided by operating activities was $311.1 million and $220.1 million for the three months ended March 31, 2025 and 2024, respectively.
Previous wording
The $89.3 million increase in operating cash flows from 2023 comprises:
Current wording
The $91.0 million increase in operating cash flows from 2024 comprises:
Previous wording
•a $0.1 million decrease in employee compensation payments, partially offset by
Current wording
•a $46.6 million decrease in employee compensation payments,
Previous wording
•a $39.6 million increase in General Agency (GA) commission and other receipts, and
Current wording
•a $19.4 million increase in General Agency (GA) commission and other receipts, and
Current wording
•a $12.0 million increase in net trust withdrawals, partially offset by
Previous wording
•a $14.9 million increase in payments for certain legal matters.
Current wording
•a $0.3 million increase in payments for certain legal matters.
Previous wording
Cash flows from investing activities used $484.6 million and $356.6 million for the nine months ended September 30, 2024 and 2023, respectively. The $128.0 million increased outflow in 2024 over 2023 is primarily due to the following:
Current wording
Cash flows from investing activities used $90.7 million and $96.8 million for the three months ended March 31, 2025 and 2024, respectively. The $6.1 million decreased outflow in 2025 over 2024 is primarily due to the following:
Previous wording
•a $12.2 million increase in cash spent on real estate acquisitions,
Current wording
•a $4.9 million decrease in cash spent on real estate acquisitions,
Previous wording
•a $2.4 million decrease in net proceeds for Company-owned life insurance policies, and
Current wording
•a $3.8 million increase in net proceeds for Company-owned life insurance policies,
Previous wording
•a $9.1 million increase in total capital expenditures which comprises:
Current wording
•a $1.1 million decrease in total capital expenditures, which comprises:
Previous wording
•a $3.7 million net increase in maintenance capital expenditures, which includes:
Current wording
•a $3.5 million net decrease in maintenance capital expenditures, which includes:
Previous wording
•a $8.6 million increase in expenditures for capital improvements at existing field locations.
Current wording
•a $4.2 million decrease in expenditures for capital improvements at existing field locations.
Previous wording
•a $15.5 million decrease in expenditures for digital investments and corporate,
Current wording
•a $2.0 million decrease in expenditures for digital investments and corporate, offset by
Previous wording
•a $10.6 million increase in expenditures for cemetery property development, and
Current wording
•a $2.7 million increase in expenditures for cemetery property development, and
Previous wording
•a $5.4 million increase in expenditures for growth capital expenditures/construction of new funeral service locations.
Current wording
•a $2.4 million increase in expenditures for growth capital expenditures/construction of new funeral service locations,
Previous wording
•a $1.1 million decrease in cash receipts from divestitures and asset sales.
Current wording
•a $1.0 million increase in cash receipts from divestitures and asset sales,
Previous wording
•a $89.3 million increase in cash spent on business acquisitions,
Current wording
•a $1.0 million decrease in cash spent on business acquisitions, partially offset by
Previous wording
Financing activities used $230.8 million for the nine months ended September 30, 2024 compared to using $262.2 million for the same period in 2023. The $31.4 million decreased outflow from 2024 over 2023 is primarily due to the following:
Current wording
Financing activities used $205.7 million for the three months ended March 31, 2025 compared to using $134.0 million for the same period in 2024. The $71.7 million increased outflow from 2025 over 2024 is primarily due to the following:
Previous wording
•a $142.8 million decrease in purchase of Company common stock,
Current wording
•an $81.0 million increase in purchase of Company common stock,
Previous wording
•a $26.8 million increase in proceeds from exercises of stock options, partially offset by
Current wording
•a $13.3 million decrease in proceeds from exercises of stock options,
Current wording
•a $1.8 million increase in bank overdrafts and other, partially offset by
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•a $132.0 million increase in debt repayments, net of proceeds,
Current wording
•a $24.0 million decrease in debt repayments, net of proceeds, and
Previous wording
The fair value of our trust investments was based on a combination of quoted market prices, observable inputs such as interest rates or yield curves, and appraisals. As of September 30, 2024, the difference between the backlog and asset market amounts represents $0.17 billion related to contracts for which we have posted surety bonds as financial assurance in lieu of trusting, $1.39 billion collected from customers that were not required to be deposited into trusts, and $0.19 billion in allowable cash distributions from trust assets partially offset by $1.54 billion in amounts due on delivered property and merchandise. As of September 30, 2024, the fair value of the total backlog comprised $4.58 billion related to cemetery contracts and $11.41 billion related to funeral contracts. As of September 30, 2024, the fair value of the assets associated with the backlog of trust-funded deferred revenue comprised $4.59 billion related to cemetery contracts and $2.90 billion related to funeral contracts. As of September 30, 2024, the backlog of insurance-funded contracts of $8.29 billion was equal to the proceeds we expect to receive from the associated insurance policies when the corresponding contract is serviced.
Current wording
The fair value of our trust investments was based on a combination of quoted market prices, observable inputs such as interest rates or yield curves, and appraisals. As of March 31, 2025, the difference between the backlog and asset market amounts represents $0.17 billion related to contracts for which we have posted surety bonds as financial assurance in lieu of trusting, $1.40 billion collected from customers that were not required to be deposited into trusts, and $0.19 billion in allowable cash distributions from trust assets partially offset by $1.55 billion in amounts due on delivered property and merchandise. As of March 31, 2025, the fair value of the total backlog comprised $4.57 billion related to cemetery contracts and $11.35 billion related to funeral contracts. As of March 31, 2025, the fair value of the assets associated with the backlog of trust-funded deferred revenue comprised $4.60 billion related to cemetery contracts and $2.79 billion related to funeral contracts. As of March 31, 2025, the backlog of insurance-funded contracts of $8.32 billion was equal to the proceeds we expect to receive from the associated insurance policies when the corresponding contract is serviced.
Previous wording
In addition to selling our products and services to client families at the time of need, we enter into price-guaranteed preneed funeral and cemetery contracts, which provide for future funeral or cemetery merchandise and services. Since preneed funeral and cemetery merchandise or services will generally not be provided until sometime in the future, most states and provinces require that all or a portion of the funds collected from customers on preneed funeral and cemetery contracts be paid into trusts and/or escrow accounts until the merchandise is delivered or the service is performed. Investment earnings associated with the trust investments are expected to mitigate the inflationary costs of providing the preneed funeral and cemetery merchandise and services in the future at the prices that were guaranteed at the time of sale. Also, we are required by state and provincial law to pay a portion of the proceeds from the preneed or atneed sale of cemetery property interment rights into perpetual care trusts. For these investments, the original corpus generally remains in the trust in perpetuity and the earnings or elected distributions are withdrawn as allowed to defray the expenses to maintain the cemetery property. While many states require that net capital gains or losses be retained and added to the corpus, certain states allow the net realized capital gains and losses to be included in the earnings that are distributed. Additionally, some states allow a total return distribution that may contain elements of income, capital appreciation, and principal.
Current wording
Investment earnings associated with the trust investments are expected to mitigate the inflationary costs of providing the preneed funeral and cemetery merchandise and services in the future at the prices that were guaranteed at the time of sale. Also, we are required by state and provincial law to pay a portion of the proceeds from the preneed or atneed sale of cemetery property interment rights into perpetual care trusts. For these investments, the original corpus generally remains in the trust in perpetuity and the earnings or elected distributions are withdrawn as allowed to defray the expenses to maintain the cemetery property. While many states require that net capital gains or losses be retained and added to the corpus, certain states allow the net realized capital gains and losses to be included in the earnings that are distributed. Additionally, some states allow a total return distribution that may contain elements of income, capital appreciation, and principal.
Previous wording
Independent trustees manage and invest the majority of the funds deposited into the funeral and cemetery merchandise and service trusts as well as the cemetery perpetual care trusts. The majority of the trustees are selected based on their respective geographic footprint and qualifications per state and provincial regulations. Most of the trustees engage the same independent investment managers. These trustees, with input from SCI's wholly-owned registered investment advisor, establish an investment policy that serves as an operating document to guide the investment activities of the trusts including asset allocation and manager selection. The investments are also governed by state and provincial guidelines. All of the trusts
Current wording
Independent trustees manage and invest the majority of the funds deposited into the funeral and cemetery merchandise and service trusts as well as the cemetery perpetual care trusts. The majority of the trustees are selected based on their respective geographic footprint and qualifications per state and provincial regulations. These trustees, with input from SCI's wholly-owned registered investment advisor, establish an investment policy that serves as an operating document to guide the investment activities of the trusts including asset allocation and manager selection. The investments are also governed by state and provincial guidelines. All of the trusts are intended to control risk and volatility through a combination of asset classes, investment styles, and a diverse mix of investment managers.
Previous wording
Asset allocation is based on the liability structure of each funeral, cemetery, and perpetual care trust. Based on the various criteria set forth in the investment policy, the investment advisor recommends investment managers to the trustees. The primary investment objectives for the funeral and cemetery merchandise and service trusts include 1) preserving capital within acceptable levels of volatility and risk and 2) achieving growth of principal over time sufficient to preserve and increase the purchasing power of the assets. Preneed funeral and cemetery contracts generally take several years to mature; therefore, the funds associated with these contracts are often invested through several market cycles.
Current wording
Asset allocation is based on the liability structure of each funeral, cemetery, and perpetual care trust. Based on the various criteria set forth in the investment policy, the investment advisor recommends investment managers to the trustees. The primary investment objectives for the funeral and cemetery merchandise and service trusts include 1) preserving capital within acceptable levels of volatility and risk and 2) achieving growth of principal over time sufficient to preserve and increase
Previous wording
As of September 30, 2024, approximately 98% of our trusts were under the control and custody of four large financial institutions. The U.S. trustees primarily use four managed limited liability companies (LLCs), two for funeral and cemetery merchandise and service trust types and two for the cemetery perpetual care trust types, each with an independent trustee as custodian. Each financial institution acting as trustee, manages its allocation of trust assets in accordance with the investment policy through the purchase of the appropriate LLCs' units. For those accounts not eligible for participation in the LLCs or where a particular state's regulations contain other investment restrictions, the trustee utilizes institutional mutual funds that comply with our investment policy or with such state restrictions. The U.S. trusts include a modest allocation to alternative investments. These alternative investments are held in vehicles structured as LLCs and are managed by certain trustees. The trusts that are eligible to allocate a portion of their investments to alternative investments, purchase units of the respective alternative investment LLCs.
Current wording
As of March 31, 2025, approximately 95% of our trusts were under the control and custody of five large financial institutions. The U.S. trustees primarily use four managed limited liability companies (LLCs), two for funeral and cemetery merchandise and service trust types and two for the cemetery perpetual care trust types, each with an independent trustee as custodian. Each financial institution acting as trustee, manages its allocation of trust assets in accordance with the investment policy through the purchase of the appropriate LLCs' units. For those accounts not eligible for participation in the LLCs or where a particular state's regulations contain other investment restrictions, the trustee utilizes institutional mutual funds that comply with our investment policy or with such state restrictions. The U.S. trusts include a modest allocation to alternative investments.
Previous wording
Equity investments have historically provided long-term capital appreciation in excess of inflation. The trusts have direct investments in individual equity securities primarily in domestic equity portfolios that include large, mid, and small capitalization companies of different investment styles (i.e., growth and value). The majority of the equity allocation is managed by institutional investment managers that specialize in an objective-specific area of expertise. Our equity securities are exposed to market risk; however, we believe these securities are well-diversified. As of September 30, 2024, the largest single equity position represented approximately 1% of the total securities portfolio.
Current wording
Equity investments have historically provided long-term capital appreciation in excess of inflation. The trusts have direct investments in individual equity securities primarily in domestic equity portfolios that include large, mid, and small capitalization companies of different investment styles (i.e., growth and value). The majority of the equity allocation is managed by institutional investment managers that specialize in an objective-specific area of expertise. Our equity securities are exposed to market risk; however, we believe these securities are well-diversified. As of March 31, 2025, the largest single equity position represented less than 1% of the total securities portfolio.
Previous wording
During the nine months ended September 30, 2024, the Standard and Poor’s 500 Index increased 22.1% and the Bloomberg’s US Aggregate Bond Index decreased 4.5%. This compares to SCI trusts that returned 12.8% during the same period, which exceeded our internal custom benchmark. The SCI trusts have a diversified allocation of approximately 60% equities, 27% fixed income securities, 9% alternative and other investments with the remaining 5% available in money market funds.
Current wording
During the three months ended March 31, 2025, the Standard and Poor’s 500 Index decreased 4.3% and the Bloomberg’s US Aggregate Bond Index increased 2.8%. This compares to SCI trusts that decreased 0.5% during the same period. The SCI trusts have a diversified allocation of approximately 59% equities, 27% fixed income securities, 10% alternative and other investments with the remaining 4% available in money market funds.
Showing the first 40 of 57 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
•a $2.7 million decrease in net payments for Company-owned life insurance policies,
Current report — wording carried from elsewhere
the purchasing power of the assets. Preneed funeral and cemetery contracts generally take several years to mature; therefore, the funds associated with these contracts are often invested through several market cycles.
Rearranged previous paragraphs (10)
Previous report — wording carried elsewhere
seek to control risk and volatility through a combination of asset classes, investment styles, and a diverse mix of investment managers.
Previous report — wording carried elsewhere
Three Months Ended September 30, 2024 and 2023
Previous report — wording carried elsewhere
In the third quarter of 2024, we reported consolidated net income attributable to common stockholders of $117.8 million ($0.81 per diluted share) compared to net income attributable to common stockholders in the third quarter of 2023 of $122.0 million ($0.80 per diluted share). These results were impacted by certain items including:
Previous report — wording carried elsewhere
(2) We calculate comparable average revenue per service by dividing comparable funeral revenue, excluding general agency revenue, recognized preneed revenue, and other revenue to avoid distorting our average of normal funeral services revenue, by the comparable number of funeral services performed during the period. Recognized preneed revenue is excluded from our calculation of comparable average revenue per service because the associated service has not yet been performed.
Previous report — wording carried elsewhere
We recognized a $3.5 million net pre-tax gain on asset divestitures and impairments in the third quarter of 2024 compared to a $2.5 million net pre-tax gain in the third quarter of 2023 on asset divestitures due to non-strategic asset divestitures.
Previous report — wording carried elsewhere
(1) We define comparable (or same store) operations as those funeral locations owned by us for the entire period beginning January 1, 2023 and ending September 30, 2024.
Previous report — wording carried elsewhere
(1) We define comparable (or same store) operations as those cemetery locations owned by us for the entire period beginning January 1, 2023 and ending September 30, 2024.
Previous report — wording carried elsewhere
Gains on Divestitures and Impairment Charges, Net
Previous report — wording carried elsewhere
Our effective tax rate was 23.1% and 24.5% for the nine months ended September 30, 2024 and 2023, respectively. The lower effective tax rate for the nine months ended September 30, 2024 was primarily due to more excess tax benefits recognized on the settlement of employee share-based awards. The effective tax rate for the nine months ended September 30, 2024 was higher than the federal statutory tax rate of 21.0% primarily due to state tax expense, partially offset by excess tax benefits recognized on the settlement of employee share-based awards.
Previous report — wording carried elsewhere
The diluted weighted average number of shares outstanding was 147.0 million for the nine months ended September 30, 2024 compared to 153.6 million for the same period in 2023. The decrease primarily reflects the impact of shares repurchased under our share repurchase program.