News Release

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Service Corporation International Announces the Filing of Its Second Quarter Form 10-Q and Announces Second Quarter 2005 Earnings of $.04 Per Diluted Share and $.07 Before Special Items

HOUSTON, Oct 27, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- Service Corporation International (NYSE: SCI), which owns and operates funeral service locations and cemeteries, announced today that the Company has filed its Form 10-Q for the quarterly period ended June 30, 2005 with the Securities and Exchange Commission. The Company, in an August 29, 2005 press release, announced preliminary second quarter 2005 earnings and the delay in filing its June 30, 2005 Form 10-Q pending completion of the Company's review of reconciliations being performed related to its preneed funeral and cemetery reconciliation and verification projects and other preneed trust accounts.

In its Form 10-Q filed today, SCI reported net income for the second quarter of 2005 of $13.7 million or earnings per diluted share of $.04, which compared to net income of $43.0 million or $.14 per diluted share in the same period of 2004. The Company previously reported, in the preliminary earnings press release dated August 29, 2005, earnings of $14.0 million or earnings per diluted share of $.05 for the second quarter of 2005. The $0.3 million decrease in net income includes a $1.0 million increase in general and administrative expense related to a litigation accrual, a decrease in gross profit of $0.5 million, an increase in a gain on disposition of $0.8 million and a decrease in income tax expense of $0.4 million. The variances in gains on dispositions and gross profit (and associated income taxes) are both related to the Company's completion of its review of the reconciliations described above. For the first six months of 2005, the Company reported a net loss of $141.2 million or a loss of $.45 per diluted share which compared to net income of $73.1 million or $.23 per diluted share in the same period of 2004. The above results reflect certain income and expense items not affecting continuing operations including litigation expenses, gains and impairment losses on dispositions, early extinguishments of debt, discontinued operations and cumulative effects of accounting changes.

The Company also today confirmed second quarter 2005 earnings from continuing operations excluding special items of $.07 per diluted share. Net income from continuing operations excluding special items was $21.1 million which compared to $16.4 million or $.05 per diluted share in the second quarter of 2004. The Company previously reported, in its August 29, 2005 preliminary earnings press release, earnings from continuing operations excluding special items of $22.1 million or $.07 per diluted share for the second quarter of 2005. The $1.0 million decrease in net income from continuing operations excluding special items resulted from a $1.0 million increase in general and administrative expense related to a litigation accrual, a decrease in gross profit of $0.5 million related to the Company's completion of its review of the reconciliations described above, and a decrease in income tax expense of $0.5 million. Earnings from continuing operations excluding special items in the first half of 2005 were $58.8 million or $.19 per diluted share which compared to $61.7 million or $.19 per diluted share in the first half of 2004. Earnings from continuing operations excluding special items in the first half of 2005 were negatively impacted by $.02 per diluted share as a result of the Company's first quarter 2005 change in accounting to expense direct preneed selling costs as they are incurred. Earnings from continuing operations excluding special items is a non-GAAP financial measure. See a reconciliation of earnings from continuing operations excluding special items to GAAP measures later in this press release.

The Company today also confirmed free cash flow of $62.0 million for the second quarter of 2005, an increase of $36.6 million over the same period of 2004. In the first half of 2005, free cash flow was $146.9 million compared to $120.5 million in the same period of 2004. Free cash flow is a non-GAAP financial measure. See our definition of free cash flow and reconciliation of cash flows from operating activities to free cash flow included in a separate section later in this press release.

North America Comparable Operating Results

We regard comparable results of operations as analogous to our "same store" results of operations. For purposes of the following presentation, we consider comparable operations as operations that were not acquired or constructed after January 1, 2004 or divested prior to June 30, 2005. Therefore, in the following presentation, we are providing results of operations for the same funeral and cemetery locations in each of the periods presented. We believe this presentation provides greater clarity for comparison purposes of our results of operations for each of the periods presented.

The Company previously reported preliminary North America comparable operating results for the three and six months ended June 30, 2005 in a preliminary earnings release dated August 29, 2005. The Company's final results as shown below did not change materially from the preliminary results released on August 29, 2005. The Company's final results of operations can be found in the Company's second quarter 2005 Form 10-Q filing which has been filed with the Securities and Exchange Commission today. Copies of this document as well as other SEC filings can be obtained from our website at http://www.sci-corp.com .

(In millions, except funeral     Three Months Ended     Six Months Ended
     services performed, average           June 30,              June 30,
     revenue per funeral service               Pro forma            Pro forma
     and gross margin percentage)    2005         2004      2005       2004
                                                (Restated)          (Restated)
    Funeral
    Funeral atneed revenue           $180.7       $169.9    $380.8     $363.8
    Funeral recognized preneed
     revenue                           85.0         88.7     181.5      179.8
    General agency revenue (A)          7.5          8.0      14.2       15.8
    Kenyon revenue (B)                  5.3          1.5      13.4        2.5
      Total funeral revenues         $278.5       $268.1    $589.9     $561.9

    Gross profits                     $49.6        $47.0    $128.9     $120.5
    Gross margin percentage            17.8%        17.5%     21.8%      21.4%

    Total funeral services
     performed                       61,537       60,095   130,633    128,703
    Average revenue per funeral
     service (C)                     $4,318       $4,303    $4,304     $4,224

    Cemetery
    Cemetery atneed revenue           $53.3        $48.1    $103.9      $90.6
    Cemetery recognized preneed
     revenue                           74.0         79.6     132.3      161.0
    Other revenue (D)                  18.6         16.5      38.6       37.7
      Total cemetery revenues        $145.9       $144.2    $274.8     $289.3

    Gross profits                     $20.2        $16.9     $40.4      $40.5
    Gross margin percentage            13.8%        11.7%     14.7%      14.0%

     (A) General Agency ("GA") revenue is commissions we receive from third
         party insurance companies when customers purchase insurance contracts
         from such third-party insurance companies to fund funeral services
         and merchandise at a future date.
     (B) Kenyon International Emergency Services ("Kenyon") is our disaster
         response subsidiary that engages in mass fatality and emergency
         response services.  Revenues and gross profits associated with Kenyon
         are subject to significant variation due to the nature of their
         operations.
     (C) Average revenue per funeral service is calculated as total funeral
         revenues (less GA revenue and Kenyon revenue) divided by total
         funeral services performed.  In the calculation of average revenue
         per funeral service, GA revenue and Kenyon revenue are excluded from
         total funeral revenues to avoid distorting our averages of normal
         funeral services performed.
     (D) Other cemetery revenue is primarily related to endowment care trust
         fund income and interest and finance charges earned from customer
         receivables on preneed installments contracts.


    Disposition Activities

During October 2005, the Company entered into an agreement with StoneMor Partners LP to sell 22 cemeteries and six funeral homes for $12.7 million. As a result, the Company will classify these properties as held for sale in its September 2005 consolidated financial statements and will record an estimated loss on disposition of approximately $28.0 million in its consolidated statement of operations for the three months ended September 30, 2005. This transaction is expected to close in November 2005.

Restatement of Previously Issued Financial Statements

The Company has completed its review of its preneed funeral and cemetery reconciliation and verification projects and has identified adjustments to previously issued financial statements as announced in its preliminary earnings release dated August 29, 2005. The Company's August 29, 2005 preliminary earnings release was furnished to the Securities and Exchange Commission on a Form 8-K and can be found on the Company's website at http://www.sci-corp.com .

As a result of these adjustments, we are restating our financial results for the first interim period of 2005, each of the five years ended December 31, 2004, and each of the interim periods of 2004 and 2003. This restatement includes adjustments related to 1) the Company's recognition of income related to its preneed funeral and cemetery trust accounts; 2) preneed funeral trust income that was previously understated as a result of a point-of-sale system error; and 3) the computation of gains or losses on asset divestiture activities. Adjustments to gains and losses on asset divestiture activities include the write off of certain covenant-not-to-compete agreements which should have been recognized in the Company's 2002 consolidated financial statements and a loss on a property disposition recorded in April 2005 which should have been recorded in the Company's first quarter 2005 consolidated financial statements.

Also included in this restatement are previously reflected adjustments to our consolidated financial statements issued prior to January 1, 2004, which related to the recognition of deferred preneed cemetery contract revenues, operating leases, and other verification matters. As a result of this restatement and as previously disclosed, the Company concluded that these previously issued financial statements described above should no longer be relied upon. The Company has also identified additional material weaknesses in its internal control over financial reporting. For more information related to the restatement and the material weaknesses mentioned above, please see the Company's December 31, 2004 Form 10-K/A (Amendment No. 2), the Company's March 31, 2005 Form 10-Q/A (Amendment No. 1) and the Company's June 30, 2005 Form 10-Q filed with the Securities and Exchange Commission today. These documents are available on our website at http://www.sci-corp.com .

The impact of the restatement to pretax income (an aggregate charge of $5.2 million for all periods presented) is summarized below for the first quarter of 2005 and each of the five fiscal years ended December 31, 2004. The Company previously announced in its press release dated August 29, 2005 that the estimated impact of the restatement would be approximately $10.0 million, which was prior to the finalization of the projects described herein.

(Table in thousands)
                                      Year ended    Year ended    Year ended
    Increase (decrease) to            December 31,  December 31,  December 31,
     pretax income            Q1 2005     2004          2003           2002

    Effect of preneed
     funeral and cemetery
     trust verification and
     reconciliation projects   $1,897    $(430)      $(8,177)       $(1,492)
    Effect of understated
     funeral trust income       2,700    1,570           ---            ---
    Effect of disposition
     related activities        (1,740)     325           807         (1,667)
    Effect of other trust
     adjustments               (1,049)     ---        (1,012)           ---

    Cemetery deferred
     revenue adjustments          ---      ---         2,132          1,410
    Effect of operating lease
     adjustments                  ---      ---          (201)          (282)
    Effect of other
     verification matters         ---      ---         6,406         (1,421)
       Total                   $1,808   $1,465          $(45)       $(3,452)


      (Table in thousands)
                              Year ended    Year ended
    Increase (decrease) to    December 31,  December 31,   Pre-
     pretax income               2001          2000        2000       Total

    Effect of preneed
     funeral and cemetery
     trust verification and
     reconciliation projects    $(660)        $(666)     $(13,652)   $(23,180)
    Effect of understated
     funeral trust income         ---           ---           ---       4,270
    Effect of disposition
     related activities         2,260           (34)         (486)       (535)
    Effect of other trust
     adjustments                 (511)          ---         1,160      (1,412)

    Cemetery deferred
     revenue adjustments        1,345         2,888        13,021      20,796
    Effect of operating lease
     adjustments                 (313)         (315)       (2,667)     (3,778)
    Effect of other verification
     matters                     (122)         (188)       (6,028)     (1,353)
      Total                    $1,999        $1,685       $(8,652)    $(5,192)


    NON-GAAP FINANCIAL MEASURES

Earnings from continuing operations excluding special items and earnings per share from continuing operations excluding special items are non-GAAP financial measures. We believe these non-GAAP financial measures provide a consistent basis for comparison between quarters and better reflect the performance of our core operations, as they are not influenced by certain income and expenses not affecting continuing operations. We also believe these measures help facilitate comparisons to competitors' operating results.

Set forth below is a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. We do not intend for the information to be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Certain periods in this section have been previously restated for adjustments related to certain reconciliations and verifications of our funeral and cemetery trust assets and deferred revenue, operating leases, and other adjustments. See the Company's 2004 Form 10-K/A (Amendment No. 2) for details related to these adjustments. The caption "As Restated" reflects the Company's currently announced restatement presented in this press release related to the adjustments described herein.

Three Months Ended
    (In millions, except diluted EPS)  June 30, 2005      June 30, 2004
                                                          (As Restated)
                                       Net                Net
                                     Income    Diluted  Income     Diluted
                                     (Loss)      EPS    (Loss)       EPS
    Net income reported              $13.7      $.04    $43.0       $.14

      Settlement of significant
       legal matters                   ---       ---      3.1        .01
      (Gains) and impairment losses
       on dispositions, net           (1.1)      ---     (8.2)      (.02)
      Loss on early extinguishment
       of debt                         8.5       .03     10.5        .03
      Other income/expense, net
        Foreign currency
         transaction loss              ---       ---      2.3        ---
      Discontinued operations          ---       ---    (34.3)      (.11)
    Earnings from continuing
     operations excluding
     special items                   $21.1      $.07    $16.4       $.05

    Diluted weighted average shares
     outstanding (in thousands)              306,404             312,725
    Interest add back                           $---                $---



                                               Six Months Ended
    (In millions, except diluted EPS)  June 30, 2005      June 30, 2004
                                                          (As Restated)
                                       Net                Net
                                     Income    Diluted  Income     Diluted
                                     (Loss)      EPS    (Loss)       EPS
    Net (loss) income reported     $(141.2)    $(.45)   $73.1       $.23

      Settlement of significant
       legal matters                   ---       ---     25.2        .07
      (Gains) and impairment losses
       on dispositions, net            2.5       .01    (59.2)      (.17)
      Loss on early extinguishment
       of debt                         9.3       .03     10.5        .03
      Other income/expense, net
        Interest income - United
         Kingdom note receivable       ---       ---     (2.7)      (.01)
        Foreign currency
         transaction loss              ---       ---      2.3        .01
      Discontinued operations          0.7       ---    (35.1)      (.10)
      Cumulative effect of
       accounting changes            187.5       .60     47.6        .13
    Earnings from continuing
     operations excluding
     special items                   $58.8      $.19    $61.7       $.19

    Diluted weighted average
     shares outstanding
     (in thousands)                          311,986             353,438
    Interest add back                           $---                $6.4


    Free Cash Flow

Free cash flow is a non-GAAP financial measure. We define free cash flow as cash flows from operating activities (excluding certain special items such as any possible payments that could be made associated with the settlement of litigation matters, any potential tax refunds, or potential contributions to our frozen cash balance pension plan, etc) less capital improvements at our existing facilities. The Company defines capital improvements at existing facilities as capital improvements deemed reasonably necessary to maintain our existing facilities in a condition consistent with Company standards and extend their useful lives. Free cash flow is not reduced by mandatory debt service requirements or by growth-oriented capital expenditures. The Company defines growth-oriented capital expenditures as capital expenditures intended to grow revenues and profits such as the acquisition of funeral service locations or cemeteries in large or strategic North America markets, construction of high-end cemetery property (such as private family estates) or the construction of funeral home facilities on Company-owned cemeteries, and the investment in contemporary merchandising displays in our funeral homes.

We believe that free cash flow provides useful information to investors regarding our financial condition and liquidity as well as our ability to generate cash for purposes such as reducing debt, growing our business through strategic investments and repurchasing stock or paying dividends. While we believe free cash flow, as defined, is helpful in managing our business and provides useful information to investors, certain events may arise, financial or otherwise, which could require the use of free cash flow so that it would not be available for the purposes described above, or as more fully described in our public filings with the Securities and Exchange Commission. Furthermore, free cash flow should be reviewed in addition to, but not as a substitute for, the information provided in our consolidated statement of cash flows.

The following table provides a reconciliation between cash flows from operating activities and free cash flow, as defined. Free cash flow has not changed since the Company's preliminary earnings release was issued on August 29, 2005.

(In millions)                   Three Months Ended     Six Months Ended
                                          June 30,            June 30,
                                     2005        2004      2005        2004
    Cash Flows from Operating
     Activities                     $74.9       $44.2    $202.5      $132.8
    Less: Unusual Tax Refund          ---         ---     (29.0)        ---
    Add: Cash Balance Pension Plan
     Contribution                     ---         ---       ---        20.0
    Adjusted Cash Flows from
     Operating Activities           $74.9       $44.2    $173.5      $152.8

    Less: Capital Improvements
     to Maintain Existing
     Facilities                     (12.9)      (18.8)    (26.6)      (32.3)
    Free Cash Flow                  $62.0       $25.4    $146.9      $120.5


    Cautionary Statement on Forward-Looking Statements

The statements in this press release that are not historical facts are forward-looking statements made in reliance on the "safe harbor" protections provided under the Private Securities Litigation Reform Act of 1995. These statements may be accompanied by words such as "believe," "estimate," "project," "expect," "anticipate" or "predict," that convey the uncertainty of future events or outcomes. These statements are based on assumptions that we believe are reasonable; however, many important factors could cause our actual results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by us, or on our behalf. Important factors, which could cause actual results to differ materially from those in forward-looking statements include, among others, the following:

* Our ability to successfully complete our ongoing process improvement
       projects, particularly related to the implementation of new processes
       and internal controls.
     * The possibility of material legal and regulatory matters arising from
       our restatement.
     * Any further changes to our financial results upon our review and our
       independent auditor's review.
     * The possibility that the Company will identify and report additional
       material weaknesses in its internal control over financial reporting.
     * The effectiveness of our internal controls over financial reporting,
       and our ability to certify the effectiveness of the internal controls
       and to obtain a favorable attestation report of our auditors regarding
       our assessment of our internal controls.
     * Any further adjustments arising from the material weaknesses previously
       identified.

For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2004 Annual Report on Form 10-K/A (Amendment No. 2). Copies of this document as well as other SEC filings can be obtained from our website at http://www.sci-corp.com. We assume no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by us, whether as a result of new information, future events or otherwise.

Service Corporation International, headquartered in Houston, Texas, owns and operates funeral service locations and cemeteries. We have an extensive network of businesses including 1,126 funeral service locations and 388 cemeteries in North America as of June 30, 2005. For more information about Service Corporation International, please visit our website at http://www.sci-corp.com .

SERVICE CORPORATION INTERNATIONAL
          CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
                   (In thousands, except per share amounts)

                                    Three Months Ended      Six Months Ended
                                          June 30,              June 30,
                                     2005        2004       2005        2004
                                             (Restated)             (Restated)
    Revenues:
    Funeral                     $  284,457 $   279,491 $  603,908  $  714,012
    Cemetery                       155,779     152,877    291,199     307,055
                                   440,236     432,368    895,107   1,021,067
    Gross profit:
    Funeral                         50,077      50,309    129,699     136,868
    Cemetery                        25,310      23,040     45,462      52,110
                                    75,387      73,349    175,161     188,978

    General and administrative
     expenses                      (22,494)    (24,028)   (42,210)    (75,049)
    Gains and impairment (losses)
     on dispositions, net            4,528       1,517     (1,213)     36,302
    Operating income                57,421      50,838    131,738     150,231

    Interest expense               (25,875)    (31,843)   (50,531)    (64,501)
    Loss on early extinguishment
     of debt                       (13,051)    (16,770)   (14,258)    (16,770)
    Other income (expense), net      5,360        (514)     8,047       5,910
                                   (33,566)    (49,127)   (56,742)    (75,361)
    Income from continuing
     operations before income
     taxes and cumulative effects
     of accounting changes          23,855       1,711     74,996      74,870
    Provision (benefit) for
     income taxes                   10,150      (6,904)    28,049     (10,683)
    Income from continuing
     operations before cumulative
     effects of accounting changes  13,705       8,615     46,947      85,553
    Income (loss) from discontinued
     operations (net of income
     tax (benefit) provision
     of ($49,097), $594, and
     ($48,956), respectively)          ---      34,337       (650)     35,091
    Cumulative effects of
     accounting changes (net of
     income tax benefits of $117,428
     and $20,983, respectively)        ---         ---   (187,538)    (47,556)
          Net income (loss)        $13,705     $42,952  $(141,241)    $73,088

    Basic earnings (loss) per share:
      Income from continuing
       operations before cumulative
       effects of accounting changes  $.05        $.03       $.15        $.28
      Income from discontinued
       operations, net of tax          ---         .11        ---         .12
      Cumulative effects of
       accounting changes, net
       of tax                          ---         ---       (.61)       (.16)
          Net income (loss)           $.05        $.14      $(.46)       $.24
    Diluted earnings (loss) per share:
      Income from continuing
       operations before cumulative
       effects of accounting changes  $.04        $.03       $.15        $.26
      Income from discontinued
       operations, net of tax          ---         .11        ---         .10
      Cumulative effects of
       accounting changes, net
       of tax                          ---         ---       (.60)       (.13)
          Net income (loss)           $.04        $.14      $(.45)       $.23
    Basic weighted average
     number of shares              302,363     307,988    307,896     305,290
    Diluted weighted average
     number of shares              306,404     312,725    311,986     353,438
    Dividends declared per share     $.025        $---      $.050        $---



                      SERVICE CORPORATION INTERNATIONAL
               CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
                     (In thousands, except share amounts)

                                              June 30, 2005  December 31, 2004
                                                                 (Restated)
    Assets
    Current assets:
      Cash and cash equivalents                  $319,955         $287,785
      Receivables, net                            115,034          102,622
      Inventories                                  82,987           81,526
      Current assets of discontinued operations       ---           11,085
      Other                                        39,616           50,945
          Total current assets                    557,592          533,963

    Preneed funeral receivables and
     trust investments                          1,253,322        1,267,784
    Preneed cemetery receivables and
     trust investments                          1,344,843        1,399,778
    Cemetery property, at cost                  1,484,019        1,509,599
    Property and equipment, at cost, net          947,450          970,547
    Non-current assets of discontinued
     operations                                       ---            4,367
    Deferred charges and other assets             281,764          621,561
    Goodwill                                    1,150,143        1,169,040
    Cemetery perpetual care trust investments     722,947          729,048
      Total assets                             $7,742,080       $8,205,687


    Liabilities & Stockholders' Equity
    Current liabilities:
      Accounts payable and accrued liabilities   $219,925         $221,877
      Current maturities of long-term debt         90,770           75,075
      Current liabilities of discontinued
       operations                                     ---            7,111
      Income taxes                                  2,948            7,850
          Total current liabilities               313,643          311,913
    Long-term debt                              1,172,525        1,178,885
    Deferred preneed funeral revenues             519,795          498,571
    Deferred preneed cemetery revenues            839,679          803,144
    Deferred income taxes                         201,278          276,572
    Non-current liabilities of discontinued
     operations                                       ---           58,225
    Other liabilities                             418,232          431,917
    Non-controlling interest in funeral
     and cemetery trusts                        2,003,544        2,092,881

    Non-controlling interest in perpetual
     care trusts                                  699,958          704,912
    Stockholders' equity:
      Common stock, $1 per share par value,
       500,000,000 shares authorized,
       298,148,521 and 323,225,352, issued
       and outstanding (net of 44,747,591
       and 18,502,478 treasury shares, at par)    298,149          323,225
      Capital in excess of par value            2,224,940        2,395,057
      Unearned compensation                        (4,702)          (2,022)
        Accumulated deficit                      (970,485)        (829,244)
      Accumulated other comprehensive
       income (loss)                               25,524          (38,349)
        Total stockholders' equity              1,573,426        1,848,667
      Total liabilities and stockholders
       equity                                  $7,742,080       $8,205,687



                      SERVICE CORPORATION INTERNATIONAL
          CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
                                (In thousands)

                                                        Six months ended
                                                           June 30,
                                                      2005            2004
                                                                   (Restated)
    Cash flows from operating activities:
     Net (loss) income                             $(141,241)       $ 73,088
     Adjustments to reconcile net (loss) income
      to net cash provided by operating activities:
         Net loss (income) from discontinued
          operations                                     650         (35,091)
         Loss on early extinguishment of debt         14,258          16,770
         Cumulative effects of accounting changes,
          net of tax                                 187,538          47,556
         Depreciation and amortization                42,395          71,344
         Provision (benefit) for deferred
          income taxes                                26,283         (12,110)
         (Gains) and impairment losses on
          dispositions, net                            1,213         (36,302)
         Other non-cash adjustments                      ---             273
     Change in assets and liabilities, net of
      effects from acquisitions and dispositions:
         Decrease in receivables                      14,442          25,370
         Decrease in other assets                     29,441           4,774
         Decrease in payables and other liabilities  (13,626)         (2,944)
         Net effect of preneed funeral production
          and maturities                              (3,054)         (9,770)
         Net effect of cemetery production
          and deliveries                              44,676         (14,094)
         Other                                          (217)          1,654
    Net cash provided by operating activities
     from continuing operations                      202,758         130,518
    Net cash (used in) provided by operating
     activities from discontinued operations            (241)          2,278
    Net cash provided by operating activities        202,517         132,796
    Cash flows from investing activities:
     Capital expenditures                            (43,907)        (41,289)
     Proceeds from divestitures and sales of
      property and equipment                          34,463          19,477
     Proceeds and distributions from dispositions
      of businesses, net of cash retained             21,597         337,049
     Proceeds from equity investments                 32,070             ---
     Indemnity payments related to the joint
      venture of French operations                    (1,602)            ---
     Net (deposits) withdrawals of restricted
      funds and other                                 (9,026)       (158,632)
    Net cash provided by investing activities
     from continuing operations                       33,595         156,605
    Net cash used in investing activities
     from discontinued operations                        ---            (117)
    Net cash provided by investing activities         33,595         156,488
    Cash flows from financing activities:
     Proceeds from issuance of long-term debt        291,472         242,850
     Payments of debt                                 (3,047)       (121,139)
     Early extinguishments of debt                  (298,401)       (313,527)
     Proceeds from exercise of stock options           4,556           5,254
     Purchase of Company common stock               (189,809)            ---
     Payments of dividends                            (7,729)            ---
     Purchase of subsidiary stock                       (844)            ---
    Net cash used in financing activities           (203,802)       (186,562)
    Effect of foreign currency                          (140)         (1,269)
    Net increase in cash and cash equivalents         32,170         101,453
    Cash and cash equivalents at beginning
     of period                                       287,785         239,431
    Cash and cash equivalents at end of period      $319,955        $340,884

     For additional information contact:
     Investors:  Debbie Young - Director/Investor Relations
                 (713) 525-9088
     Media:      Terry Hemeyer - Managing Director / Corporate Communications
                 (713) 525-5497

SOURCE Service Corporation International

investors, Debbie Young, Director - Investor Relations, +1-713-525-9088, or media,
Terry Hemeyer, Managing Director - Corporate Communications, +1-713-525-5497, both of
Service Corporation International
http://www.prnewswire.com