Service Corp (SCI) Tops Q1 EPS by 5c, Miss on Revenues

Service Corp (NYSE: SCI) reported Q1 EPS of $0.47, $0.05 better than the analyst estimate of $0.42. Revenue for the quarter came in at $794.5 million versus the consensus estimate of $806.98 million.

Quarterly Highlights:

• Diluted earnings per share were $0.43 in the first quarter of 2018 compared to $0.91 in the first quarter of 2017. The first quarter of 2018 was negatively impacted by a $10.1 million loss on early extinguishment of debt. The first quarter of 2017 was impacted by an income tax benefit related to the settlement of tax audits with the IRS with respect to tax years 1999 through 2005 and a gain on business dispositions partially offset by a pension settlement. Diluted earnings per share excluding special items was $0.47 in the first quarter of 2018 compared to $0.38 in the first quarter of 2017. The nine cent increase in diluted earnings per share excluding special items was primarily driven by approximately five cents from higher funeral and cemetery operating results, two cents from the impact of new accounting standards and selling processes that will become comparable in 2019, and two cents primarily from a lower effective tax rate and a lower share count partially offset by higher interest expense.
• Net cash provided by operating activities was $211.5 million in the first quarter of 2018 compared to $188.1 million in the first quarter of 2017. The first quarter of 2018 was impacted by a tax refund received related to the IRS tax settlement that occurred last year. Net cash provided by operating activities excluding special items was $205.9 million in the first quarter of 2018 compared to $188.1 million in the first quarter of 2017. This increase was primarily due to increased cash earnings and a reduction in cash taxes.
• During the first quarter, we returned $150.1 million to shareholders through a combination of share repurchases and dividends and deployed $38.8 million of capital to accretive acquisitions and the construction of new funeral homes.

For earnings history and earnings-related data on Service Corp (SCI) click here.

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