News Release

SCI Corporate Communications
Phone: 1-844-220-4408
Email: Press.Room@sci-us.com
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Service Corporation International Announces Second Quarter 2009 Financial Results

- Conference call on Thursday, August 6, 2009, at 9:00 a.m. Central Daylight Standard Time.

HOUSTON, Aug. 5 /PRNewswire-FirstCall/ -- Service Corporation International (NYSE: SCI), a leading provider of deathcare products and services, today reported results for the second quarter 2009. Our unaudited condensed consolidated financial statements can be found at the end of this press release. The table below summarizes our key financial results:

                                  Three Months Ended      Six Months Ended
    (In millions, except for           June 30,               June 30,
     per share amounts)           -------------------   -------------------
                                    2009        2008     2009        2008
                                   ------      ------   ------       ------
    Revenues                       $513.9      $548.8   $1,024.5   $1,122.2
    Operating income                $69.1       $83.3     $154.6     $182.7
    Net income attributable to
     common stockholders            $23.1       $31.4      $57.6      $72.9
    Diluted earnings per share       $.09        $.12       $.23       $.28
    Earnings from continuing
     operations excluding special
     items(1)                       $30.0       $36.4      $60.9      $88.2
    Diluted earnings per share
     from continuing operations
     excluding special items(1)      $.12        $.14       $.24       $.33
    Diluted weighted average
     shares outstanding             251.1       263.1      250.7      264.2
    Net cash provided by
     operating activities           $69.7       $70.2     $211.1     $116.5
    Net cash provided by
     operating activities
     excluding special items(1)     $69.7       $70.2     $211.1     $209.8

    (1) Earnings from continuing operations excluding special items, diluted
        earnings per share from continuing operations excluding special
        items, and net cash provided by operating activities excluding
        special items are non-GAAP financial measures. A reconciliation to
        net income, diluted earnings per share, and net cash provided by
        operating activities computed in accordance with GAAP can be found
        later in this press release under the heading "Non-GAAP Financial
        Measures" or "Cash Flow and Capital Spending".


    Highlights:

    --  Diluted earnings per share (EPS) from continuing operations excluding
        special items was $0.12 in the second quarter 2009 compared to $0.14
        in the prior year second quarter.  These results exceeded our internal
        expectations as cost reduction initiatives, better than expected trust
        fund performance, and better than expected preneed cemetery production
        more than offset lower than expected funeral services performed.
    --  While funeral gross profit decreased slightly, funeral gross profit
        margins improved to 20.7% from 19.9% as declines in funeral services
        performed were more than offset by cost control initiatives.
    --  Cemetery gross profit decreased $4.2 million due to a decline in
        cemetery property sales and lower cemetery trust fund income compared
        to prior year levels, which were partially offset by lower variable
        costs.  Cemetery gross profit exceeded our expectations as cost
        control initiatives helped to offset expected cemetery revenue
        declines.

    --  Despite the decline in earnings, net cash provided by operating
        activities excluding special items for the quarter was flat to the
        prior year at approximately $70 million due primarily to favorable
        working capital initiatives and the cost control initiatives mentioned
        above.

Tom Ryan, the Company's President and Chief Executive Officer, commented on the second quarter of 2009:

"We are very pleased with our solid operational results this quarter, which were better than expected and reflect the actions we've taken to mitigate the economic and near-term pressures on our business. We also benefited from positive developments in the external environment, including a rebound in the financial markets and an improvement in consumer confidence. Cash flow performance continues to be strong and we have been actively deleveraging our capital structure, retiring more than $100 million of debt in the first half of 2009. Our solid financial position and healthy cash flow outlook provide us the flexibility to pursue opportunities to invest in the long-term growth of our business and to return value to our shareholders."

    REVIEW OF RESULTS FOR SECOND QUARTER 2009

    Consolidated Segment Results

    (In millions, except funeral services performed       Three Months Ended
     and average revenue per funeral service)                   June 30,
                                                                --------
                                                            2009       2008
                                                            ----       ----
    Funeral
    -------
    Funeral atneed revenue                                 $222.9     $235.4
    Funeral recognized preneed revenue                      102.6      110.6
    Other funeral revenue(1)                                 17.2       17.3
                                                            -----      -----
       Total funeral revenues                              $342.7     $363.3

    Gross profit                                            $71.1      $72.3
    Gross margin percentage                                  20.7%      19.9%

    Funeral services performed                             63,749     67,919
    Average revenue per funeral service                    $5,106     $5,094

    Cemetery
    --------
    Cemetery atneed revenue                                 $61.0      $65.8
    Cemetery recognized preneed revenue                      89.5       96.1
    Other cemetery revenue (2)                               20.7       23.6
                                                            -----      -----
       Total cemetery revenues                             $171.2     $185.5

    Gross profit                                            $30.7      $34.9
    Gross margin percentage                                  17.9%      18.8%

    (1) Other funeral revenue consists primarily of General Agency (GA)
        revenues, which are commissions we receive from third-party insurance
        companies for life insurance policies or annuities sold to preneed
        customers for the purpose of funding preneed funeral arrangements.

    (2) Other cemetery revenue is primarily related to cemetery merchandise
        and service trust fund income, endowment care trust fund income, and
        interest and finance charges earned from customer receivables on
        preneed installment contracts.

    Comparable Funeral Results

The table below details comparable funeral results of operations ("same store") for the three months ended June 30, 2009 and 2008. We consider comparable operations to be those owned for the entire period beginning January 1, 2008 and ending June 30, 2009.

    (Dollars in millions, except average     Three Months Ended
      revenue per funeral service and            June 30,
      average revenue per contract sold)      --------------
                                              2009      2008       Change
                                              ----      ----       ------
    Comparable funeral revenue:
       Atneed revenue                        $218.1    $232.3     $(14.2)
       Recognized preneed revenue             101.5     109.1       (7.6)
       Other funeral revenue(1)                17.1      17.2       (0.1)
                                             ------    ------     ------
    Total comparable funeral revenues        $336.7    $358.6     $(21.9)

    Comparable gross profit                   $70.4     $73.0      $(2.6)
    Comparable gross margin percentage         20.9%     20.4%

    Comparable funeral services performed:
       Preneed                               21,879    22,809       (930)
       Atneed                                40,554    44,360     (3,806)
                                             ------    ------     ------
       Total                                 62,433    67,169     (4,736)

    Comparable average revenue per funeral
     service                                 $5,119    $5,083        $36

    Comparable preneed funeral production:
       Sales                                 $119.9    $122.9      $(3.0)
       Total preneed funeral contracts sold  20,868    22,275     (1,407)
       Average revenue per contract sold     $5,746    $5,517       $229


    (1) Other funeral revenue consists primarily of General Agency (GA)
        revenues, which are commissions we receive from third-party
        insurance companies for life insurance policies or annuities sold
        to preneed customers for the purpose of funding preneed funeral
        arrangements.


    --  Comparable funeral services performed decreased 7.1%, primarily
        related to soft demand experienced at the beginning of the quarter.
        We believe the decline in deaths in our markets is consistent with
        trends experienced by other funeral service providers and industry
        vendors.
    --  The comparable average revenue per funeral service grew 0.7% over the
        prior year quarter.  Excluding an unfavorable Canadian currency impact
        and lower funeral trust fund income, the average revenue per funeral
        service grew approximately 3.5%.
    --  The cremation rate increased 20 basis points to 42.9% in the second
        quarter of 2009 compared to 42.7% for the same period of 2008.
    --  Comparable funeral gross profit decreased $2.6 million, or 3.6%, due
        to the impact of lower funeral services performed and a decrease in
        funeral trust fund income, which were partially offset by lower
        variable merchandise costs and a decline in personnel costs related to
        work force initiatives.  The gross margin percentage increased to
        20.9% compared to 20.4% in 2008.

    --  Preneed funeral sales production decreased $3.0 million, or 2.4%.
        Total funeral contracts sold decreased 6.3% while the average revenue
        per contract sold increased 4.2%.  Preneed funeral sales are deferred
        and recognized as revenues in the future when the funeral service is
        performed.


    Comparable Cemetery Results

The table below details comparable cemetery results of operations ("same store") for the three months ended June 30, 2009 and 2008. We consider comparable operations to be those owned for the entire period beginning January 1, 2008 and ending June 30, 2009.

                                          Three Months Ended
    (Dollars in millions)                       June 30,
                                             --------------
                                             2009      2008     Change
                                             ----      ----     ------
    Comparable cemetery revenue:
       Atneed revenue                       $59.7     $65.6     $(5.9)
       Recognized preneed revenue            88.8      96.0      (7.2)
       Other cemetery revenue(1)             20.5      23.3      (2.8)
                                             ----      ----     -----
    Total comparable cemetery revenues     $169.0    $184.9    $(15.9)

    Comparable gross profit                 $29.4     $34.8     $(5.4)
    Comparable gross margin percentage       17.4%     18.8%

    Comparable preneed and atneed cemetery
     sales production:
          Property                          $86.3     $94.9     $(8.6)
          Merchandise and services           93.7      95.0      (1.3)
          Discounts                         (16.5)    (16.8)      0.3
                                            -----     -----     -----
       Preneed and atneed cemetery sales
        production                         $163.5    $173.1     $(9.6)
       Recognition rate (2)                    91%       93%


    (1) Other cemetery revenue is primarily related to cemetery merchandise
        and service trust fund income, endowment care trust fund income and
        interest and finance charges earned from customer receivables on
        preneed installment contracts.

    (2) Represents the ratio of current period revenue recognition stated as a
        percentage of current period sales production.

    --  Comparable atneed cemetery revenues declined $5.9 million, or 9.0%,
        which we believe was primarily driven by a decline in deaths in our
        markets.
    --  Comparable recognized preneed cemetery revenues declined $7.2 million,
        of which approximately $5 million related to a decline in preneed
        sales production.  However, this preneed sales production was better
        than we expected as we began to see improvements in consumer sentiment
        late in the quarter.
    --  Other cemetery revenue decreased by $2.8 million, or 12.0%, as
        cemetery trust fund income recognized from our preneed merchandise and
        service and cemetery perpetual care trusts declined $2.4 million due
        to negative market returns experienced in late 2008 and early 2009.

    --  Cemetery gross profit decreased $5.4 million, due to the revenue
        declines described above, which were largely offset by lower variable
        selling compensation and merchandise expenses and a decline in
        personnel costs related to work force initiatives.


    Cash Flow and Capital Spending

Set forth below is a reconciliation of net cash provided by operating activities excluding special items to our reported net cash provided by operating activities prepared in accordance with GAAP. We do not intend for this information to be considered in isolation or as a substitute for other measures of performance prepared in accordance with GAAP.

                                       Three Months      Six Months Ended
                                           Ended
    (In millions)                        June 30,             June 30,
                                     ----------------    ----------------
                                      2009       2008     2009       2008
                                     -----      -----    -----      -----
    Net cash provided by operating
     activities, as reported         $69.7      $70.2   $211.1     $116.5
    Federal tax payment                  -          -        -       90.0
    One-time Alderwoods transition
     and other costs                     -          -        -        3.3
                                     -----      -----    -----      -----
    Net cash provided by operating
     activities, excluding special
     items                           $69.7      $70.2   $211.1     $209.8
                                     =====      =====   ======     ======

Net cash provided by operating activities, excluding special items, was $69.7 million for the second quarter of 2009, down slightly from $70.2 million in the prior year quarter. While we experienced a decrease in cash receipts related to declines in revenue during the quarter, these were largely offset by cost control initiatives mentioned above. Our cash flow also benefitted from favorable working capital initiatives, all of which resulted in cash flow that exceeded our expectations in the quarter.

As anticipated, we were also successful in prudently managing our capital expenditures during the first half of 2009. A summary of our capital expenditures is set forth below:

                                    Three Months Ended    Six Months Ended
    (In millions)                        June 30,            June 30,
                                      ---------------     --------------
                                      2009       2008     2009      2008
                                      -----     -----     -----    -----
    Capital improvements at existing
     locations                        $8.2      $22.9    $17.1     $37.1
    Development of cemetery property   6.9       12.4     16.1      23.0
    Construction of new funeral home
     facilities and other growth       3.9        3.5      9.3       7.9
                                     -----      -----    -----     -----
    Total capital expenditures       $19.0      $38.8    $42.5     $68.0
                                     =====      =====    =====     =====


    TRUST FUND RETURNS

Total trust fund returns include realized and unrealized gains and losses and dividends. A summary of our U.S. trust fund returns for the three and six months ended June 30, 2009 is set forth below:

                                              Three Months      Six Months
                                              ------------      ----------
    Preneed Funeral                               11.4%            6.4%
    Preneed Cemetery                              13.4%            8.2%
    Cemetery Perpetual Care                       10.4%            7.3%
      Combined Trust Funds                        11.9%            7.4%


    NON-GAAP FINANCIAL MEASURES

Earnings from continuing operations excluding special items, diluted earnings per share from continuing operations excluding special items, and net cash provided by operating activities excluding special items shown above are all 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, expense, and cash items not affecting continuing operations. We also believe this measure helps facilitate comparisons to our competitors' operating results.

Set forth below is a reconciliation of earnings from continuing operations excluding special items to our reported net income attributable to common stockholders and diluted earnings per share from continuing operations excluding special items to our GAAP diluted earnings per share. We do not intend for this information to be considered in isolation or as a substitute for other measures of performance prepared in accordance with GAAP.

                                              Three Months Ended June 30,
                                        ------------------------------------
    (In millions, except diluted EPS)        2009                 2008
                                        ---------------     ----------------
                                        Net      Diluted     Net      Diluted
                                      Income       EPS      Income      EPS
                                      ------     ------     ------    ------
    Net income attributable to
     common stockholders, as
     reported                          $23.1       $.09     $31.4       $.12

    After-tax reconciling items:
      Losses on dispositions and
       impairment charges, net           5.7        .02       3.4        .01
      Gain on early extinguishment
       of debt                          (1.2)         -         -          -
      Change in certain tax
       reserves                          2.4        .01       1.2        .01
      Discontinued operations              -          -       0.4          -
                                      ------     ------     ------    ------
    operations excluding
     special items                     $30.0       $.12     $36.4       $.14
                                      ======     ======     ======    ======

    Diluted weighted average shares
     outstanding (in thousands)                 251,130              263,132


                                             Six Months Ended June 30,
                                       ------------------------------------
    (In millions, except diluted EPS)       2009                   2008
                                       ----------------     ---------------
                                         Net    Diluted       Net    Diluted
                                       Income     EPS        Income    EPS
                                       ------    ------      ------   -----
    Net income attributable to
     common stockholders, as
     reported                          $57.6      $.23     $72.9       $.28

    After-tax reconciling items:
      Losses on dispositions and
       impairment charges, net           3.0       .01      11.6        .04
      Gain on early extinguishment
       of debt                          (2.1)     (.01)        -          -
      One-time Alderwoods
       transition and other costs          -         -       0.7          -
      Change in certain tax
       reserves                          2.4       .01       2.6        .01
      Discontinued operations              -         -       0.4          -
                                       ------    ------      ------   -----

    Earnings from continuing
     operations excluding special
     items                             $60.9      $.24     $88.2       $.33
                                      ======     ======    ======    ======

    Diluted weighted average
     shares outstanding (in
     thousands)                                250,672              264,228


    UPDATED OUTLOOK FOR FISCAL 2009

Due to the better than anticipated performance in the first half of the year, primarily related to sales production and cost control initiatives, and the positive trust fund returns at the end of the second quarter among other factors, we are updating our guidance for potential earnings and cash flow in fiscal 2009 as follows:

                                                      Original      Updated
    (In millions except per share amounts)            Guidance      Guidance
                                                      --------      --------
    Diluted earnings per share from continuing      $.26 to $.36  $.36 to $.42
     operations excluding special items (1)
    Net cash provided by operating activities       $220 to $300  $320 to $370
    Capital improvements at existing facilities and   $80 to $90    $70 to $80
     cemetery development expenditures


    (1) Diluted earnings per share excluding special items is a non-GAAP
        financial measure. We normally reconcile this non-GAAP financial
        measure to diluted earnings per share; however, diluted earnings per
        share calculated in accordance with GAAP is not currently accessible
        on a forward-looking basis. Our updated outlook for 2009 excludes the
        following because this information is not currently available: Gains
        or losses associated with asset dispositions, gains or losses
        associated with the early extinguishment of debt, potential tax
        reserve adjustments, and potential costs associated with settlements
        of litigation or the recognition of receivables for insurance
        recoveries associated with litigation. The foregoing items,
        especially gains or losses associated with asset dispositions, could
        materially impact our forward-looking diluted EPS calculated in
        accordance with GAAP, consistent with the historical disclosures found
        earlier in this press release under the heading "Non-GAAP financial
        measures".

This outlook reflects management's current views and estimates regarding future economic and financial market conditions, company performance and financial results, business prospects, the competitive environment and other events. This outlook is subject to a number of risks and uncertainties, many of which are beyond the control of SCI, that could cause actual results to differ materially from the potential results highlighted above. A further list and description of these risks and uncertainties and other matters can be found later in this press release under "Cautionary Statement on Forward-Looking Statements".

Conference Call and Webcast

We will host a conference call on Thursday, August 6, 2009, at 9:00 a.m. Central Daylight Time. A question and answer session will follow a brief presentation made by management. The conference call dial-in number is (617) 213-8851 with the passcode of 51206268. The conference call will also be broadcast live via the Internet and can be accessed through our website at www.sci-corp.com. A replay of the conference call will be available through August 13, 2009 and can be accessed at (617) 801-6888 with the passcode of 51762101. Additionally, a replay of the conference call will be available on our website for approximately ninety days.

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:

    --  Changes in general economic conditions, both domestically and
        internationally, impacting financial markets (e.g., marketable
        security values, access to capital markets, as well as currency and
        interest rate fluctuations) that could negatively affect us,
        particularly, but not limited to, levels of trust fund income,
        interest expense, and negative currency translation effects.
    --  Changes in operating conditions such as supply disruptions and labor
        disputes.
    --  Our inability to achieve the level of cost savings, productivity
        improvements or earnings growth anticipated by management, whether due
        to significant increases in energy costs (e.g., electricity, natural
        gas and fuel oil), costs of other materials, employee-related costs or
        other factors.
    --  Inability to complete acquisitions, divestitures or strategic
        alliances as planned or to realize expected synergies and strategic
        benefits.
    --  The outcomes of pending lawsuits, proceedings, and claims against us
        and the possibility that insurance coverage is deemed not to apply to
        these matters or that an insurance carrier is unable to pay any
        covered amounts to us.
    --  Allegations regarding compliance with laws, regulations, industry
        standards, and customs regarding funeral or burial procedures and
        practices.
    --  The amounts payable by us with respect to our outstanding legal
        matters exceeding our established reserves.
    --  Amounts that we may be required to replenish into our affiliated
        funeral and cemetery trust funds in order to meet minimal funding
        requirements.
    --  The outcome of pending Internal Revenue Service audits.  We maintain
        accruals for tax liabilities which relate to uncertain tax matters.
        If these tax matters are unfavorably resolved, we will make any
        required payments to tax authorities.  If these tax matters are
        favorably resolved, the accruals maintained by us will no longer be
        required, and these amounts will be released through the tax provision
        at the time of resolution.
    --  Our ability to manage changes in consumer demand and/or pricing for
        our products and services due to several factors, such as changes in
        numbers of deaths, cremation rates, competitive pressures, and local
        economic conditions.
    --  Changes in domestic and international political and/or regulatory
        environments in which we operate, including potential changes in tax,
        accounting, and trusting policies.
    --  Changes in credit relationships impacting the availability of credit
        and the general availability of credit in the marketplace.
    --  Our ability to successfully access surety and insurance markets at a
        reasonable cost.
    --  Our ability to successfully leverage our substantial purchasing power
        with certain of our vendors.
    --  The effectiveness of our internal control over financial reporting,
        and our ability to certify the effectiveness of the internal controls
        and to obtain an unqualified attestation report of our auditors
        regarding the effectiveness of our internal control over financial
        reporting.
    --  The possibility that restrictive covenants in our credit agreement and
        privately placed debt securities may prevent us from engaging in
        certain transactions.
    --  Our ability to buy our common stock under our share repurchase
        programs which could be impacted by, among others, restrictive
        covenants in our bank agreements, unfavorable market conditions, the
        market price of our common stock, the nature of other investment
        opportunities presented to us from time to time, and the availability
        of funds necessary to continue purchasing common stock.
    --  The financial conditions of third-party insurance companies that fund
        our preneed funeral contracts may impact our future revenues.
    --  Continued economic crisis and financial and stock market declines
        could reduce future potential earnings and cash flows and could result
        in future goodwill impairments.
    --  The weakening economy may cause customers to reassess preneed funeral
        or cemetery arrangements or decrease the amounts atneed customers are
        willing to pay or consider cremation as opposed to burial.

    --  Changes in our funeral and cemetery trust funds, investments in equity
        securities, fixed income securities, and mutual funds could be
        significantly negatively impacted by the weakening economy.

For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2008 Annual Report on Form 10-K. Copies of this document as well as other SEC filings can be obtained from our website at 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.

About Service Corporation International

Service Corporation International (NYSE: SCI), headquartered in Houston, Texas, is North America's leading provider of deathcare products and services. At June 30, 2009, we owned and operated 1,264 funeral homes and 365 cemeteries (of which 207 are combination locations) in 43 states, eight Canadian provinces, the District of Columbia and Puerto Rico. Through our businesses, we market the Dignity Memorial brand which offers assurance of quality, value, caring service, and exceptional customer satisfaction. For more information about Service Corporation International, please visit our website at www.sci-corp.com. For more information about Dignity Memorial , please visit www.dignitymemorial.com .


    For additional information contact:

    Investors:  Debbie Young - Director / Investor Relations   (713) 525-9088

    Media:      Lisa Marshall - Managing Director / Corporate  (713) 525-3066
                 Communications



                         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,
                              ------------------          ----------------
                               2009         2008          2009        2008
                              ------       -----          ----        ----
     Revenues               $513,949     $548,782     $1,024,544  $1,122,233
     Costs and expenses     (412,124)    (441,621)      (822,599)   (877,475)
                             -------     --------       --------    --------
     Gross profit            101,825      107,161        201,945     244,758
                             -------     --------       --------    --------

     General and
      Administrative
      expenses               (26,466)     (21,655)       (48,252)    (46,730)
     (Loss) gain on
      divestitures and
      impairment charges,
      net                     (6,289)      (3,858)           941     (15,904)
     Other operating income        -        1,691              -         585
                             -------     --------       --------    --------
    Operating income          69,070       83,339        154,634      182,709

     Interest expense        (32,386)     (33,311)       (64,056)    (67,380)
     Gain on early
      extinguishment of
      debt                     1,830            -          3,440           -
     Interest income             585        1,454          1,288       3,374
     Other income (expense),
      net                        803          687           (743)        (61)
                             -------     --------       --------    --------
    Income from continuing
      operations before
      income taxes            39,902       52,169         94,563     118,642
     Provision for income
      taxes                  (16,322)     (20,395)       (36,603)    (45,364)
                             -------     --------       --------    --------
    Income from continuing
      operations              23,580       31,774         57,960      73,278
     Loss from discontinued
      operations                   -         (377)             -        (362)
                             -------     --------       --------    --------
         Net income           23,580       31,397         57,960      72,916
         Net gain
          attributable to
          noncontrolling
          interests             (476)           -           (326)          -
                             -------     --------       --------    --------

         Net income
          attributable to
          common
          stockholders       $23,104      $31,397        $57,634     $72,916
                            ========     ========       ========    ========

     Basic earnings per share:
       Income from continuing
        operations
        attributable to
        common stockholders     $.09         $.12           $.23        $.28
       Net income
        attributable to
        common stockholders     $.09         $.12           $.23        $.28
     Diluted earnings per share:
       Income from continuing
        operations
        attributable to
        common stockholders     $.09         $.12           $.23        $.28
       Net income
        attributable to
        common stockholders     $.09         $.12           $.23        $.28

     Basic weighted
      average number of
      shares                 250,977      259,655        250,461     260,565
                            ========     ========       ========    ========
     Diluted weighted
      average number of
      shares                 251,130      263,132        250,672     264,228
                            ========     ========       ========    ========


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


                                                   June 30,    December 31,
                                                     2009         2008
                                                 ----------    ----------
    Assets
    Current assets:
       Cash and cash equivalents                   $170,389      $128,397
       Receivables, net                              74,949        96,145
       Inventories                                   31,111        31,603
       Deferred tax asset                            79,571        79,571
       Current assets held for sale                   1,397         1,279
       Other                                         29,955        18,515
                                                 ----------    ----------
         Total current assets                       387,372       355,510
                                                 ----------    ----------
     Preneed funeral receivables, net and trust
      investments                                 1,250,633     1,191,692
     Preneed cemetery receivables, net and trust
      investments                                 1,186,044     1,062,952
     Cemetery property, at cost                   1,457,823     1,458,981
     Property and equipment, net                  1,549,955     1,567,875
     Non-current assets held for sale               100,375        97,512
     Goodwill                                     1,171,695     1,178,969
     Deferred charges and other assets              363,294       452,634
     Cemetery perpetual care trust investments      767,740       744,758
                                                 ----------    ----------
                                                 $8,234,931    $8,110,883
                                                 ==========    ==========
     Liabilities & Stockholders' Equity
     Current liabilities:
       Accounts payable and accrued liabilities    $288,823      $294,859
       Current maturities of long-term debt          27,971        27,104
       Current liabilities held for sale                659           465
       Income taxes                                   2,092         4,354
                                                 ----------    ----------
         Total current liabilities                  319,545       326,782
                                                 ----------    ----------
    Long-term debt                               1,727,092      1,821,404
     Deferred preneed funeral revenues              594,679       588,198
     Deferred preneed cemetery revenues             811,496       771,117
     Deferred income taxes                          319,374       288,677
     Non-current liabilities held for sale           76,397        75,537
     Other liabilities                              321,704       356,090
     Deferred preneed funeral and cemetery
      receipts held in trust                      1,936,470     1,817,665
     Care trusts' corpus                            767,981       772,234

     Stockholders' equity:
       Common stock, $1 per share par value,
        500,000,000 shares authorized,
        251,414,517, and 249,953,075 shares
        issued, respectively, 251,004,884 and
        249,472,075 shares outstanding,
        respectively
                                                    251,005       249,472
       Capital in excess of par value             1,720,182     1,733,814
       Accumulated deficit                         (669,122)     (726,756)
       Accumulated other comprehensive income        57,907        36,649
                                                 ----------    ----------
    Total common stockholders' equity             1,359,972     1,293,179
         Noncontrolling interests                       221             -
                                                 ----------    ----------
         Total equity                             1,360,193     1,293,179
                                                 ----------    ----------
                                                 $8,234,931    $8,110,883
                                                 ==========    ==========


                         SERVICE CORPORATION INTERNATIONAL
                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (UNAUDITED)
                                  (In thousands)
                                                     Six Months Ended
                                                          June 30,
                                                     2009           2008
                                                  --------       --------
     Cash flows from operating activities:
       Net income                                  $57,960        $72,916
       Adjustments to reconcile net income to
        net cash provided by operating activities:
         Loss from discontinued operations, net
          of tax                                         -            362
         Gain on early extinguishment of debt       (3,440)             -
         Depreciation and amortization              55,438         55,675
         Amortization of intangible assets          10,855         12,333
         Amortization of cemetery property          13,940         16,526
         Amortization of loan costs                  1,694          1,863
         Provision for doubtful accounts             5,905          3,915
         Provision for deferred income taxes        32,924         28,079
         (Gain) loss on divestitures and
          impairment charges, net                     (941)        15,904
         Share-based compensation                    5,168          5,256
         Excess tax benefits from share-based
          awards                                         -         (2,170)
       Change in assets and liabilities, net of
        effects from acquisitions and divestitures:
         Decrease in receivables                    12,642          6,484
         Decrease (increase) in other assets         9,183        (10,069)
         Increase (decrease) in payables and
          other liabilities                          4,105       (128,320)
         Effect of preneed funeral production and
          maturities:
          Decrease in preneed funeral receivables
           and trust investments                    11,019         15,098
          Increase in deferred preneed funeral
           revenue                                   4,752         20,836
          Decrease in funeral deferred preneed
           funeral receipts held in trust          (15,838)       (24,640)
         Effect of preneed cemetery production
          and deliveries:
          (Increase) decrease in preneed cemetery
           receivables and trust investments        (5,369)        24,206
          Increase in deferred preneed cemetery
           revenue                                  20,794         20,421
          Decrease in cemetery deferred preneed
           cemetery receipts held in trust          (9,673)       (17,578)
         Other                                           -           (585)
                                                  --------       --------

    Net cash provided by operating activities     211,118        116,512
     Cash flows from investing activities:
       Capital expenditures                        (42,470)       (68,035)
       Proceeds from divestitures and sales of
        property and equipment                      14,788         12,831
       Acquisitions                                   (219)        (7,871)
       Net withdrawals (deposits) of restricted
        funds and other                                129        (21,477)
                                                  --------       --------

    Net cash used in investing activities
      from continuing operations                   (27,772)       (84,552)
     Net cash provided by investing
      activities from discontinued operations            -            858

                                                  --------       --------
    Net cash used in investing activities         (27,772)       (83,694)
     Cash flows from financing activities:
       Proceeds from the issuance of long-term debt      -         72,000
       Payments of debt                           (101,229)       (54,367)
       Principal payments on capital leases        (13,045)       (12,013)
       Purchase of Company common stock                  -        (79,470)
       Proceeds from exercise of stock options       2,363          3,596
       Excess tax benefits from share-based awards       -          2,170
       Payments of dividends                       (20,020)       (20,879)
       Bank overdrafts and other                   (13,394)        (6,714)

                                                  --------       --------
    Net cash used in financing activities        (145,325)       (95,677)
     Effect of foreign currency on cash and
      cash equivalents                               3,971         (1,035)
                                                  --------       --------
    Net increase (decrease) in cash and cash
      equivalents                                   41,992        (63,894)
     Cash and cash equivalents at beginning
      of period                                    128,397        168,594
                                                  --------       --------
     Cash and cash equivalents at end of
      period                                      $170,389       $104,700
                                                  ========       ========


SOURCE Service Corporation International
CONTACT: Investors, Debbie Young, Director, Investor Relations,
+1-713-525-9088, or Media, Lisa Marshall, Managing Director, Corporate
Communications, +1-713-525-3066, both of Service Corporation Internationalvalue="NYSE:SCI">/
/Web Site: http://www.sci-corp.com /
(SCI)