News Release

SCI Corporate Communications
Phone: 1-844-220-4408
Email: Press.Room@sci-us.com
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Service Corporation International Announces Third Quarter 2008 Financial Results and Provides Earnings and Cash Flow Outlook for Fourth Quarter 2008 and Full Year 2009

- Conference call on Thursday, November 6, 2008, at 9:00 a.m. Central

Standard Time.

HOUSTON, Nov. 5 /PRNewswire-FirstCall/ -- Service Corporation International (NYSE: SCI), a provider of deathcare products and services, today reported results for the third quarter 2008. Our unaudited condensed consolidated financial statements can be found at the end of this press release. The table below summarizes our key financial results:



    (In millions, except for   Three Months Ended     Nine Months Ended
     per share amounts)           September 30,        September 30,
                               ------------------   -------------------
                                  2008      2007       2008       2007
                               --------  --------   --------   --------
    Revenues                     $516.4    $539.3   $1,638.7   $1,712.4
    Operating income              $48.8     $75.3     $231.7     $256.2
    Net income                    $14.6     $28.2      $87.6      $80.9
    Diluted earnings per
     share                         $.06      $.10       $.33       $.27
    Earnings from continuing
     operations excluding
     special items(1)             $23.9     $28.7     $112.1     $112.8
    Diluted earnings per
     share from continuing
     operations excluding
     special items(1)              $.09      $.10       $.43       $.38
    Diluted weighted
     average shares
     outstanding                  259.8     289.6      262.5      294.8
    Net cash provided by
     operating activities        $116.8    $137.0     $233.3     $328.6
    Net cash provided
     by operating activities
     excluding special
     items(1)                    $116.8    $142.2     $326.6     $364.7

    (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 from continuing operations excluding
        special items was $0.09 compared to $0.10 in the third quarter of
        2007.  Hurricane expenses were $4.3 million, or $0.01 per share after
        tax, in the third quarter of 2008.  These expenses were offset by a
        tax benefit related to discrete items of $0.02 per share in the third
        quarter of 2008.
    --  Revenues decreased $22.9 million, or 4.2%, as a result of decreased
        cemetery property sales production and significant divestiture
        activity throughout 2007.
    --  Comparable average revenue per funeral service increased 3.8%.
        Comparable funeral services performed decreased 3.9%.
    --  Improved sales and marketing efforts led to a comparable preneed
        funeral production increase of 14.5%.  Comparable cemetery sales
        production decreased 3.8%.
    --  SCI returned more than $110 million in capital to shareholders in the
        first nine months of 2008 through a combination of dividends and share
        repurchases, including $10.3 million in the third quarter of 2008.

Limited Outlook for the Fourth Quarter of 2008 and Full Year 2009

SCI also provided today its outlook for earnings and cash flow for the fourth quarter of 2008 and for the full year of 2009. We intend to give a more comprehensive outlook for the full year of 2009 in our fourth quarter of 2008 earnings release, as usual.



                                       Fourth Quarter      Preliminary 2009
                                            2008               Outlook
                                     -----------------  --------------------
    Diluted earnings per share
     excluding special items (1)      $0.12 to $0.15        $0.48 to $0.60
    Net cash provided by operating
     activities (2)                 $60 to $80 million  $320 to $370 million
    Capital improvements at
     existing facilities and
     cemetery development
     expenditures                   $30 to $40 million  $100 to $110 million

    (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 outlook for the fourth quarter of
         2008 and full year of 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; any potential tax adjustments to reserves,
         payments, credits or refunds resulting from the Company's pending
         Internal Revenue Service audit; and any 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 later in this press release under the heading "Non-GAAP
         financial measures".

    (2)  The fourth quarter 2008 does not include an expected $95 million cash
         tax refund.  Including this refund, net cash provided by operating
         activities excluding a one-time cash tax refund is $155 to $175
         million.  Net cash provided by operating activities excluding a
         one-time cash tax refund is a non-GAAP financial measure.  The
         reconciliation to our anticipated net cash provided by operating
         activities calculated in accordance with GAAP is as follows:

         Net cash provided by operating activities       $60 to $80 million
         Estimated one-time expected cash tax refund            $95 million
                                                       --------------------
         Net cash provided by operating actives
          excluding a one-time cash tax refund         $155 to $175 million


Tom Ryan, the Company's President and Chief Executive Officer, commented on the third quarter of 2008 and outlook for 2009:

"As reflected in our third quarter results, we are experiencing a difficult economic environment that is affecting our preneed cemetery sales. As we believe these conditions will continue into next year, we have also lowered our expectations for 2009 in the outlook provided today. While the negative effect of our trust fund performance has not materially impacted our current quarter results, we do anticipate some downward pressure related to this in our fourth quarter 2008 and 2009 funeral and cemetery revenue outlook. That said, we continue to believe our business model is sound and results in significant levels of cash flows which allow us the unique opportunity to increase shareholder value in these times of economic uncertainty."



    REVIEW OF RESULTS FOR THIRD QUARTER 2008

    Consolidated Segment Results

    (In millions)                             Three Months Ended
                                                 September 30,
                                             --------------------
                                              2008          2007
                                             ------        ------
    Funeral
    Revenues                                 $350.4        $355.8
    Gross Profit                              $59.3         $63.6
    Gross Margin Percentage                   16.9%         17.9%

    Cemetery
    Revenues                                 $166.0        $183.6
    Gross Profit                              $22.8         $38.9
    Gross Margin Percentage                   13.7%         21.2%


Comparable Funeral Results

The table below details comparable funeral results of operations ("same store"). We consider comparable operations as those owned for the entire period beginning January 1, 2007 and ending September 30, 2008.



    (In millions, except funeral
     services performed, total                    Three Months Ended
     preneed funeral contracts sold,                 September 30,
     and average revenue per funeral              ------------------
     service or per contract sold)                 2008        2007
                                                  ------      ------
    Comparable funeral revenue:
      Atneed revenue                              $220.8      $224.3
      Recognized preneed revenue                   102.8       100.0
      Other revenue(1)                              16.9        15.7
                                                  ------      ------
    Total comparable funeral revenues             $340.5      $340.0

    Comparable funeral gross profit                $59.8       $64.4
    Comparable funeral gross margin percentage      17.6%       18.9%

    Comparable funeral services performed:
      Atneed                                      41,587      44,248
      Preneed                                     21,081      20,948
                                                  ------      ------
      Total                                       62,668      65,196

    Comparable average revenue per
     funeral service                              $5,164      $4,974

    Comparable preneed funeral sales
     production:
      Sales                                       $126.0      $110.0
      Total preneed funeral contracts sold        22,030      19,606
      Average revenue per contract sold           $5,719      $5,610

    (1)  Other 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 revenue increased $0.5 million, or 0.1%, driven by
        a 3.8% increase in our average revenue per funeral service and higher
        GA revenue due to increased preneed funeral sales production.  These
        increases were offset by a 3.9% decline in comparable funeral services
        performed.  The cremation rate increased to 42.4% from 41.3% in 2007.
    --  Comparable funeral gross profit decreased $4.6 million, or 7.1%, and
        our gross margin percentage of 17.6% was down from 18.9% primarily due
        to higher selling costs resulting from increased preneed funeral sales
        production.  Revenues associated with the sale of preneeed funeral
        contracts are deferred until the funeral services are performed;
        however, the related selling costs are expensed as incurred.
    --  Comparable preneed funeral sales production increased $16.0 million,
        or 14.5%.  This was accomplished through an increase in the number of
        sales counselors as well as enhanced productivity from training and
        development initiatives.

Comparable Cemetery Results

The table below details comparable cemetery results of operations ("same store"). We consider comparable operations for those owned for the entire period beginning January 1, 2007 and ending September 30, 2008.



    (In millions)                                       Three Months Ended
                                                          September 30,
                                                      ---------------------
                                                       2008           2007
                                                      ------         ------
    Comparable cemetery revenue:
      Atneed revenue                                   $60.7          $61.9
      Recognized preneed revenue                        80.5           87.7
      Other revenue (1)                                 21.1           26.4
                                                      ------         ------
    Total comparable cemetery revenues                $162.3         $176.0

    Comparable cemetery gross profit                   $22.2          $38.2
    Comparable cemetery gross margin percentage        13.7%          21.7%

    Comparable preneed and atneed cemetery sales
     production:
      Preneed and atneed sales                        $145.6         $151.4
      Recognition rate (2)                             97.0%          98.8%

    (1)  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.

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



    --  Comparable cemetery revenues decreased $13.7 million, or 7.8%, due to
        a $10.6 million decline in new property sales and new cemetery
        property construction revenue as fewer large construction projects
        were completed in 2008 compared to 2007, as well as a decrease in
        trust fund income.
    --  Comparable cemetery gross profit declined $16.0 million as a result of
        the revenue decreases described above and slight increases in fixed
        costs as we continue to increase the number of sales counselors and
        focus on training initiatives.  Gross margin percentage decreased from
        21.7% to 13.7%.


    Other Financial Results
    --  General and administrative expenses decreased $16.0 million compared
        to the third quarter of 2007.  This decrease is due to $5.1 million of
        costs to terminate our pension plan in 2007, an additional $3.3
        million of one-time transition and other expenses related to the
        acquisition of Alderwoods in 2007, and a $5.5 million decrease in
        employee benefit expenses.
    --  We recognized a $12.8 million net pretax loss in the third quarter of
        2008. This loss was associated with assets held for sale primarily in
        Oregon, West Virginia, and Michigan which we recorded an impairment
        loss of approximately $13.9 million. In the third quarter 2007 we
        recognized $4.9 million net pretax gain on asset divestitures. This
        gain was primarily associated with the disposition of underperforming
        funeral and cemetery businesses in the United States and Canada.
    --  Hurricane expenses, net reflects $4.3 million in estimated property
        damages incurred at various locations caused by Hurricane Ike in
        September 2008, net of related insurance recoveries.
    --  Interest expense decreased $4.9 million as a result of the principle
        repayments of our $50.0 million term loan and $45.2 million of our
        6.5% note.
    --  The income tax rate for the third quarter of 2008 is 7.3% compared to
        32.8% in the comparable period of 2007.  The income tax rate for
        earnings from continuing operations excluding special items is 16.6%
        compared to 36.5%.  The low tax rate in 2008 relates to discrete items
        which includes the release of certain deferred tax liabilities due to
        the expiration of certain statutes of limitations and state tax
        planning.



    Cash Flow and Capital Spending

    (In millions)                 Three Months Ended      Nine Months Ended
                                     September 30,          September 30,
                                ---------------------    ------------------
                                 2008           2007      2008        2007
                                ------         ------    ------      ------
    Net cash provided by
     operating activities, as
     reported                   $116.8         $137.0    $233.3      $328.6
    One-time Alderwoods
     transition and other
     costs                          --            5.2       3.3        24.7
    Premiums paid on
     extinguishment of debt         --             --        --        11.4
    United States federal
     transaction-related tax
     payment                        --             --      90.0          --
                                ------         ------    ------      ------
    Net cash provided by
     operating activities,
     excluding special items    $116.8         $142.2    $326.6      $364.7
                                ======         ======    ======      ======


Net cash provided by operating activities, excluding special items decreased $38.1 million in the first nine months of 2008. This decrease reflects the sale of Mayflower Insurance Co., which contributed $17.3 million of operating cash flows from discontinued operations in the first nine months of 2007. The remaining decrease was driven by a decline in our operating income related to decreases in preneed cemetery sales and funeral case volume mentioned above.



    A summary of our capital expenditures is set forth below:

    (In millions)                                       Capital Expenditures
                                                         ------------------
                                                          Nine Months Ended
                                                            September 30,
                                                         ------------------
                                                          2008         2007
                                                         ------      ------
    Capital improvements at existing locations            $59.0       $59.3
    Development of cemetery property                       37.2        41.4
    Construction of new funeral home facilities and
     other growth capital                                  12.1        12.9
                                                         ------      ------
    Total capital expenditures                           $108.3      $113.6
                                                         ======      ======


TRUST FUND PERFORMANCE

A summary of our U.S. trust fund performance for the three and nine months September 30, 2008 is set forth below:

                                                       Three          Nine
                                                      Months         Months
                                                      ------        -------
    Preneed Funeral                                   (8.1)%        (11.9)%
    Preneed Cemetery                                  (9.0)%        (13.3)%
    Cemetery Perpetual Care                           (3.8)%         (8.0)%
                                                      ------        -------
    Combined Trust Funds                              (7.2)%        (11.3)%


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 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 do not consider certain income, expense, and cash items which are not recurring to our continuing operations. We also believe these measures help 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 and diluted earnings per share from continuing operations excluding special items to our reported diluted earnings per share. Additionally, a reconciliation of net cash provided by operating activities, excluding special items to net cash provided by operating activities is set forth above in the "Cash Flow and Capital Spending" section above. We do not intend for this information to be considered in isolation or as a substitute for other measures of performance or liquidity prepared in accordance with GAAP.



    (In millions, except             Three Months Ended September 30,
     diluted EPS)              --------------------------------------------
                                      2008                    2007
                               ---------------------    -------------------
                                 Net         Diluted      Net       Diluted
                               Income          EPS      Income        EPS
                               ------        ------     ------      ------
    Net income, as
     reported                  $14.6           $.06      $28.2        $.10

    After-tax reconciling
     items:
       Losses (gains) on
        divestitures and
        impairment charges,
        net                      9.3            .03       (5.1)       (.01)
       Pension termination
        costs                     --             --        3.1         .01
       Alderwoods transition
        and other costs           --             --        1.8          --
       Discontinued
        operations                --             --        0.7          --
                               ------        ------     ------      ------
     Earnings from
      continuing
      operations excluding
      special items            $23.9           $.09      $28.7        $.10
                               ======        ======     ======      ======


    (In millions, except              Nine Months Ended September 30,
     diluted EPS)              --------------------------------------------
                                       2008                     2007
                               ---------------------     ------------------
                                 Net         Diluted       Net      Diluted
                               Income          EPS       Income       EPS
                               ------         ------     ------      ------
    Net income, as
     reported                   $87.6           $.33      $80.9        $.27

    After-tax reconciling
     items:
       Losses on divestitures
        and impairment
        charges, net             23.4            .09       13.2         .05
       Loss on early
        extinguishment of
        debt                       --             --        8.4         .03
       Pension termination
        costs                      --             --        3.1         .01
       Alderwoods transition
        and other costs           0.7            .01       11.6         .04
       Discontinued
        operations                0.4             --       (4.4)       (.02)
                               ------         ------     ------      ------

     Earnings from
      continuing operations
      excluding special
      items                    $112.1           $.43     $112.8        $.38
                               ======         ======     ======      ======


Conference Call and Webcast

We will host a conference call on Thursday, November 6, 2008, at 9:00 a.m. Central Standard Time. A question and answer session will follow a brief presentation made by management. The conference call dial-in number is (617) 597-5344 with the passcode of 12853145. In conjunction with the conference call, management will refer to supplemental information posted on our website. A webcast of the live conference call and the supplemental information can be accessed through our website at http://www.sci-corp.com in the Investors section. A replay of the conference call will be available through November 13, 2008 and can be accessed at (617) 801-6888 with the passcode of 51605080. Additionally, a replay of the conference call will be available on our website for approximately ninety days in the Investors section under the subheading "Webcasts/Presentations".

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 burial procedures and practices.
    --  The amounts payable by us with respect to our outstanding legal
        matters exceed our established reserves.
    --  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 reversed 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 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.

For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2007 Annual Report on Form 10-K. 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.

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 September 30, 2008, we owned and operated more than 1,300 funeral homes and 350 cemeteries (of which over 200 are combination locations) in 43 states, eight Canadian provinces, the District of Columbia and Puerto Rico. Through our businesses, we market the Dignity Memorial(R) 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 http://www.sci-corp.com. For more information about Dignity Memorial(R), please visit http://www.dignitymemorial.com.

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

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



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

                            Three months ended            Nine months ended
                              September 30,                September 30,
                          ----------------------    ------------------------
                            2008          2007          2008          2007
                          --------      --------    ----------    ----------
    Revenues              $516,439      $539,334    $1,638,672    $1,712,381
    Costs and expenses    (434,370)     (436,819)   (1,311,646)   (1,365,644)
                          --------      --------    ----------    ----------
    Gross profit            82,069       102,515       327,026       346,737
    General and
     administrative
     expenses              (16,107)      (32,069)      (62,840)      (97,456)
    (Loss) gain on
     divestitures and
     impairment charges,
     net                   (12,819)        4,886       (28,723)        6,949
    Hurricane expenses,
     net                    (4,313)           --        (4,313)           --
    Other operating
     income, net                --            --           585            --
                          --------      --------    ----------    ----------
    Operating income        48,830        75,332       231,735       256,230
    Interest expense       (33,222)      (38,090)     (100,602)     (111,852)
    Loss on early
     extinguishment of
     debt                       --            --            --       (14,480)
    Interest income            996         4,254         4,369         8,324
    Equity in earnings of
     unconsolidated
     subsidiaries               --         2,460            --         8,730
    Other expense, net        (805)       (1,049)       (1,061)       (3,981)
                          --------      --------    ----------    ----------
    Income from continuing
     operations before
     income taxes           15,799        42,907       134,441       142,971
    Provision for income
     taxes                  (1,160)      (14,062)      (46,524)      (66,500)
                          --------      --------    ----------    ----------
    Income from continuing
     operations             14,639        28,845        87,917        76,471
    (Loss) income from
     discontinued
     operations, net of
     income tax provision
     (benefit) of $--,
     $2,223, $(195), and
     $4,183, respectively       --          (675)         (362)        4,459
                          --------      --------    ----------    ----------
        Net income         $14,639       $28,170       $87,555       $80,930
                          ========      ========    ==========    ==========
    Basic earnings per
     share:
      Income from continuing
       operations             $.06          $.10          $.34          $.26
      Income from
       discontinued
       operations, net of
       tax                      --            --            --           .02
                          --------      --------    ----------    ----------
        Net income            $.06          $.10          $.34          $.28
                          ========      ========    ==========    ==========
    Diluted earnings per
     share:
      Income from continuing
       operations             $.06          $.10          $.33          $.26
      Income from
       discontinued
       operations, net of
       tax                      --            --            --           .01
                          --------      --------    ----------    ----------
        Net income            $.06          $.10          $.33          $.27
                          ========      ========    ==========    ==========
    Basic weighted average
     number of shares      256,788       284,511       258,868       289,437
                          ========      ========    ==========    ==========
    Diluted weighted
     average number of
     shares                259,835       289,597       262,482       294,848
                          ========      ========    ==========    ==========
    Dividends declared per
     share                    $.04          $.03          $.12          $.09
                          ========      ========    ==========    ==========



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

                                                 September 30,  December 31,
                                                     2008           2007
                                                  ----------     ----------
    Assets
    Current assets:
      Cash and cash equivalents                     $171,903       $168,594
      Receivables, net                                90,469        113,793
      Inventories                                     32,635         36,203
      Income tax receivable                           95,303          1,426
      Deferred tax asset                              73,018         73,182
      Current assets held for sale                     1,747          2,294
      Other                                           15,205         25,835
                                                  ----------     ----------
        Total current assets                         480,280        421,327
                                                  ----------     ----------
    Preneed funeral receivables and trust
     investments                                   1,342,211      1,434,403
    Preneed cemetery receivables and trust
     investments                                   1,301,873      1,428,057
    Cemetery property, at cost                     1,456,199      1,451,666
    Property and equipment, net                    1,566,689      1,569,534
    Non-current assets held for sale                 123,312        122,626
    Goodwill                                       1,216,748      1,198,153
    Deferred charges and other assets                455,499        400,734
    Cemetery perpetual care trust investments        813,857        905,744
                                                  ----------     ----------
                                                  $8,756,668     $8,932,244
                                                  ==========     ==========
    Liabilities & Stockholders' Equity
    Current liabilities:
      Accounts payable and accrued liabilities      $333,201       $343,392
      Current maturities of long-term debt            56,271         36,594
      Current liabilities held for sale                  258            149
      Income taxes                                        --         46,305
                                                  ----------     ----------
        Total current liabilities                    389,730        426,440
                                                  ----------     ----------
    Long-term debt                                 1,835,838      1,820,106
    Deferred preneed funeral revenues                575,558        526,668
    Deferred preneed cemetery revenues               778,861        753,876
    Deferred income taxes                            237,481        140,623
    Non-current liabilities held for sale             96,265         91,928
    Other liabilities                                369,779        383,642
    Non-controlling interest in funeral and
     cemetery trusts                               2,192,401      2,390,288
    Non-controlling interest in cemetery
     perpetual care trusts                           829,348        906,590
    Commitments and contingencies
    Stockholders' equity:
      Common stock, $1 per share par value,
       500,000,000 shares authorized,
       257,823,110 and 262,858,169, issued
       and outstanding (net of 8,905,863
       and 1,961,300 treasury shares, at
       par)                                          257,823        262,858
      Capital in excess of par value               1,810,368      1,874,600
      Accumulated deficit                           (736,284)      (797,965)
      Accumulated other comprehensive income         119,500        152,590
                                                  ----------     ----------
        Total stockholders' equity                 1,451,407      1,492,083
                                                  ----------     ----------
                                                  $8,756,668     $8,932,244
                                                  ==========     ==========



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

                                                      Nine months ended
                                                        September 30,
                                                  ------------------------
                                                    2008             2007
                                                  --------        --------
    Cash flows from operating activities:
      Net income                                   $87,555         $80,930
      Adjustments to reconcile net income to
       net cash provided by operating
       activities:
        Loss (income) from discontinued
         operations, net of tax                        362          (4,459)
        Loss on early extinguishment of debt            --          14,480
        Premiums paid on early extinguishment of
         debt                                           --         (11,368)
        Depreciation and amortization              102,350         109,526
        Amortization of cemetery property           23,824          24,983
        Amortization of loan costs                   2,718           5,202
        Provision for doubtful accounts              6,768           7,753
        Provision for deferred income taxes         94,107          20,798
        Loss (gain) on divestitures and
         impairment charges, net                    28,723          (6,949)
        Share-based compensation                     7,626           7,898
        Excess tax benefits from share-based
         awards                                     (3,219)         (5,159)
        Equity in earnings of unconsolidated
         subsidiaries                                   --          (8,730)
      Change in assets and liabilities, net of
       effects from acquisitions and
       divestitures:
        Decrease (increase) in receivables           7,786          (7,027)
        Increase in other assets                   (71,977)         (4,299)
        (Decrease) increase in payables and
         other liabilities                         (92,603)         33,436
        Effect of preneed funeral production and
         maturities:
          Decrease in preneed funeral receivables
           and trust investments                     8,605          27,236
          Increase in deferred preneed funeral
           revenue                                  23,229          38,854
          Decrease in funeral non-controlling
           interest                                (25,284)        (50,013)
      Effect of cemetery production and
       deliveries:
          Decrease in preneed cemetery receivables
           and trust investments                    29,734          41,811
          Increase in deferred preneed cemetery
           revenue                                  23,186          32,092
          Decrease in cemetery non-controlling
           interest                                (19,596)        (36,228)
      Other                                           (578)            580
                                                  --------        --------
    Net cash provided by operating
     activities from continuing operations         233,316         311,347
    Net cash provided by operating
     activities from discontinued operations            --          17,279
                                                  --------        --------
    Net cash provided by operating
     activities                                    233,316         328,626
    Cash flows from investing activities:
      Capital expenditures                        (108,324)       (113,607)
      Proceeds from divestitures and sales of
       property and equipment                       19,221         314,255
      Acquisitions                                  (8,545)         (3,308)
      Net deposits of restricted funds and
       other                                       (21,476)           (236)
                                                  --------        --------
    Net cash (used in) provided by investing
     activities from continuing operations        (119,124)        197,104
    Net cash provided by (used in) investing
     activities from discontinued operations           858          (8,546)
                                                  --------        --------
    Net cash (used in) provided by investing
     activities                                   (118,266)        188,558
    Cash flows from financing activities:
      Proceeds from the issuance of long-term
       debt                                         72,807         398,996
      Debt issuance costs                               --          (6,443)
      Payments of debt                             (54,403)         (3,043)
      Principal payments on capital leases         (18,550)        (22,060)
      Early extinguishment of debt                      --        (422,545)
      Purchase of Company common stock             (79,470)       (211,082)
      Proceeds from exercise of stock options        6,097          19,373
      Excess tax benefits from share-based
       awards                                        3,219           5,159
      Payments of dividends                        (31,166)        (26,265)
      Bank overdrafts and other                     (8,624)           (829)
                                                  --------        --------
    Net cash used in financing activities
     from continuing operations                   (110,090)       (268,739)
    Net cash used in financing activities
     from discontinued operations                       --          (2,113)
                                                  --------        --------
    Net cash used in financing activities         (110,090)       (270,852)
    Effect of foreign currency                      (1,651)          1,526
                                                  --------        --------
    Net increase in cash and cash
     equivalents                                     3,309         247,858
    Cash and cash equivalents at beginning
     of period                                     168,594          39,880
                                                  --------        --------
    Cash and cash equivalents at end of
     period                                       $171,903        $287,738
                                                  ========        ========

SOURCE  Service Corporation International
    -0-                             11/05/2008
    /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 International/
    /Web site:  http://www.sci-corp.com /
    (SCI)

CO:  Service Corporation International
ST:  Texas
IN:  REA
SU:  ERN CCA ERP

GS-EC
-- LAW091 --
6727 11/05/2008 17:09 EST http://www.prnewswire.com