News Release

SCI Corporate Communications
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Email: Press.Room@sci-us.com
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Service Corporation International Reports Operating Cash Flows Ahead of Expectations, a Fiscal Year Loss of $(.41) Per Diluted Share, and Earnings of $.28 Per Diluted Share Before Special Items
         Reports No Material Weaknesses in Internal Controls for 2005

   - Conference Call to Be Webcast on Friday, March 3, 2006, at 10:00 a.m.
                                 Central Time

HOUSTON, March 2 /PRNewswire-FirstCall/ -- Service Corporation International (NYSE: SCI), which owns and operates funeral service locations and cemeteries, today reported net income for the fourth quarter of 2005 of $24.1 million or $.08 per diluted share compared to net income of $27.2 million or $.08 per diluted share in the same period of 2004. For the year ended December 31, 2005, the Company reported a net loss of $(126.7) million or $(.41) per diluted share compared to net income of $114.1 million or $.35 per diluted share in the same period of 2004. The loss reported in 2005 primarily relates to a cumulative effect of an accounting change of $187.5 million net of tax, attributable to the Company's change in accounting in 2005 to expense direct preneed selling costs as they are incurred. The results in both 2005 and 2004 included special items such as litigation expenses, losses on dispositions, discontinued operations and cumulative effects of accounting changes.

SCI's fourth quarter diluted earnings from continuing operations excluding special items were $20.9 million, or $.07 per share compared to earnings from continuing operations excluding special items of $26.4 million, or $.08 per diluted share in the fourth quarter of 2004. For the year ended December 31, 2005, SCI's earnings from continuing operations excluding special items were $86.8 million or $.28 per diluted share ($.30 including income from our discontinued Chilean operations) compared to $105.0 million or $.32 per diluted share in the prior period. Earnings from continuing operations excluding special items for the year ended December 31, 2005 were negatively impacted by $.03 per diluted share as a result of the Company's 2005 change in accounting to expense direct preneed selling costs as they are incurred. Earnings from continuing operations excluding special items is a non-GAAP financial measure. See a reconciliation of diluted earnings from continuing operations excluding special items to GAAP measures included in a separate section later in this press release.

Free cash flow was $33.3 million for the fourth quarter of 2005 and $227.4 million for the year ended December 31, 2005. Free cash flow for the full year exceeded prior year results by $21.6 million. Free cash flow is a non- GAAP financial measure. See our definition and calculation of free cash flow and our reconciliation to cash flow from operations included in a separate section later in this press release. At December 31, 2005, total debt was $1.20 billion and cash on hand was $446.8 million. Total debt less cash and cash equivalents (or net debt) decreased by $230.2 million (23.5%) during 2005.

Commenting on 2005 operating results, Tom Ryan, President and Chief Executive Officer said: "2005 was a year of hard work for us and we believe a significant turning point for SCI. The dedication, commitment, and execution of the entire organization has helped lead the Company to produce both strong operating and financial results. Comparable North America funeral revenue exceeded our expectations for 2005 primarily due to solid increases in volume and sales average. Our cemetery operating revenues fell within the range of our annual guidance. Both the funeral and cemetery gross margins finished within our annual guidance despite increases in energy, health care, and pension costs. The Company also saw an increase in SOX 404 costs; however, these costs have contributed to the successful remediation of all material weaknesses previously reported by the Company."

"Our operating cash flow also finished the year strong and exceeded our expectations. In 2005 we generated free cash flow that exceeded the high end of our annual guidance by $7.4 million. Net debt decreased substantially in 2005 and our cash on hand at December 31, 2005 exceeded $445 million. Honoring our commitment to our shareholders, our strong financial position allowed us to increase shareholder value in 2005 by the continuation and the expansion of our share repurchase program and the initiation of quarterly dividends."

North America Comparable Operating Results

We regard comparable results of operations as analogous to our "same store" results of operations. For purposes of the following presentation, we consider comparable operations as operations that were not acquired or constructed after January 1, 2004 or divested prior to December 31, 2005. Therefore, in the following presentation, we are providing results of operations for the same funeral and cemetery locations in each of the periods presented. We believe this presentation provides greater clarity for comparison purposes of our results of operations for each of the periods presented.

Effective January 1, 2005, the Company began expensing direct preneed selling costs in the period incurred. For a better comparison, comparable results of operations from 2004 are presented below on a pro forma basis as if $4.7 million of additional direct selling costs in our funeral segment and $9.5 million of additional direct selling costs in our cemetery segment were expensed during the year ended December 31, 2004.



    (In millions, except funeral
     services performed, average
     revenue per funeral service
     and gross margin percentage)       Three Months Ended  For the Year Ended
                                            December 31,       December 31,
                                        ------------------  ------------------
                                                 Pro forma           Pro forma
                                          2005     2004       2005      2004
                                        -------- --------   --------  --------
    Funeral
    Funeral atneed revenue               $180.6   $170.8     $709.9    $682.1
    Funeral recognized preneed revenue     90.2     82.9      343.2     334.3
    General agency revenue (A)              6.9      5.5       27.6      27.8
    Kenyon revenue (B)                      4.8      0.4       23.9       3.4
                                        -------- --------   --------  --------
       Total funeral revenues            $282.5   $259.6   $1,104.6  $1,047.6

    Gross profits                         $52.7    $42.5     $213.3    $201.7
    Gross margin percentage               18.7%    16.4%      19.3%     19.3%

    Total funeral services performed     59,614   58,552    238,813   235,467
    Average revenue per funeral
     service (C)                         $4,542   $4,333     $4,410    $4,316

    Cemetery
    Cemetery atneed revenue               $51.9    $42.5     $203.4    $170.9
    Cemetery recognized preneed revenue    71.6     79.6      273.5     301.6
    Other revenue (D)                      16.4     20.9       71.1      77.8
                                        -------- --------   --------  --------
       Total cemetery revenues           $139.9   $143.0     $548.0    $550.3

    Gross profits                         $19.9    $33.2      $83.6     $93.5
    Gross margin percentage               14.2%    23.2%      15.3%     17.0%

     (A)  General Agency ("GA") revenue represents commissions we receive from
          third-party insurance companies when customers purchase insurance
          contracts from such third-party insurance companies to fund funeral
          services and merchandise at a future date.

     (B)  Kenyon International Emergency Services ("Kenyon") is our disaster
          response subsidiary that engages in mass fatality and emergency
          response services.  Revenues and gross profits associated with
          Kenyon are subject to significant variation due to the nature of
          their operations.

     (C)  GA revenue and Kenyon revenue are excluded from the calculation of
          average revenue to avoid distorting our averages of normal funeral
          services performed.

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


     For the Three Months Ended December 31, 2005
     *  Funeral
        --  Funeral revenues grew $22.9 million primarily due to increases in
            comparable funeral volume and sales average.  Included in the
            $22.9 million is an increase in Kenyon revenues of $4.4 million
            over the prior year quarter due to its involvement in the
            hurricane disasters along the gulf coast region.
        --  The average revenue per funeral service increased $209 (4.8%) over
            the prior year quarter due in part to a price increase consistent
            with inflation; favorable results from the Company's initiative to
            strategically realign pricing from products to service offerings;
            and higher trust fund income.
        --  The number of funeral services performed increased 1,062 (1.8%)
            over the prior year period.
        --  Funeral gross profit increased $10.2 million (24.0%) over the
            prior year period.  The increase in funeral revenues described
            above was partially offset by higher salaries and fringes
            resulting from inflationary increases and higher health and
            pension costs; higher professional fees associated with Sarbanes-
            Oxley compliance; and higher incentive compensation.  Kenyon's
            gross loss increased by $1.0 million in the fourth quarter of 2005
            compared to 2004.
        --  The cremation rate increased 190 basis points to 40.9% in the
            fourth quarter of 2005 compared to 2004.  The first, second and
            third quarter of 2005 had cremation rate increases of 60, 80, and
            140 basis points, respectively, over prior year periods.

     *  Cemetery
        --  Cemetery revenue decreased $3.1 million from the fourth quarter of
            2004 primarily due to a decrease in legacy revenues associated
            with constructed cemetery property of $6.7 million.  The decrease
            in legacy revenues was partially offset by higher atneed revenues
            coupled with a favorable sales production shift to developed
            cemetery property resulting from our initiative to shorten the
            time between when the property is sold and when it is constructed.
        --  Cemetery gross profits decreased $13.3 million from the fourth
            quarter of 2004.  The decrease in revenues described above was
            coupled with higher salary and fringe expenses (primarily health
            and pension costs); costs related to hurricane damage in the
            latter part of the year; and higher professional fees associated
            with Sarbanes-Oxley compliance.

     Other Consolidated Results
     *  General and administrative expenses were $22.8 million in the three
        months ended December 31, 2005 compared to $30.5 million in the same
        period of 2004.
        --  In the fourth quarter of 2004, we recognized $12.8 million in
            legal expense (net of insurance recoveries) associated with the
            settlement of outstanding litigation matters.
        --  Excluding the $12.8 million of 2004 litigation expense, general
            and administrative expenses were $22.8 million in the fourth
            quarter of 2005 compared to $17.7 million in the same period of
            2004.  This increase is primarily related to higher incentive
            compensation (resulting from strong quarterly operating and cash
            flow results); an increase in salary and fringes (primarily health
            and pension costs); and increased professional fees associated
            with Sarbanes-Oxley compliance, external audit fees, and other
            various professional fees.  During 2005, we incurred significant
            expenses to improve internal controls to comply with Section 404
            of the Sarbanes-Oxley Act.  We believe that these improvements
            have measurably increased the effectiveness of the organization.

     *  Interest income on notes receivable and commercial paper was $5.5
        million and $3.8 million in the fourth quarter of 2005 and 2004,
        respectively.  The increase in 2005 was due to an increase in our cash
        balance and higher interest rates.

     *  Other income (expense), net was $2.2 million in the fourth quarter of
        2005 compared to $6.1 million in the same period of 2004.  The
        components of other income for the periods presented were as follows:
        --  Cash overrides received from a third party insurance provider
            related to the sale of insurance funded preneed funeral contracts
            were $1.4 million in the fourth quarter of 2005 and 2004.
        --  Surety bond premium costs were $0.6 million in the fourth quarter
            of 2005 and 2004.
        --  The remaining income of $1.4 million in the fourth quarter of 2005
            and $5.3 million in the fourth quarter of 2004 is primarily
            related to net gains from foreign currency transactions.

     *  The consolidated effective tax rate in the fourth quarter of 2005 was
        a provision of 26.5% compared to a benefit of 5.2% in the fourth
        quarter of 2004.  The tax rate in the fourth quarter of 2005 was
        favorably impacted by the recognition of state net operating losses
        partially offset by higher tax provisions on permanent differences
        between book and tax bases of North America asset dispositions.  The
        2004 tax rate was favorably impacted by state net operating losses and
        tax benefits realized from certain international dispositions.

     For the Year Ended December 31, 2005
     *  Funeral
        --  Funeral revenues increased $57.0 million due to stronger funeral
            volume and a higher average revenue per funeral service.  Included
            in the $57.0 million is an increase in Kenyon revenues of $20.5
            million in 2005 compared to 2004 due to its involvement in the
            hurricane disasters along the gulf coast region and the tsunami in
            southeast Asia.
        --  The number of funeral services performed in 2005 increased 3,346
            (1.4%) compared to 2004.
        --  The average revenue per funeral service in 2005 was up $94 (2.2%)
            over the prior year period.  Increases resulting from price
            increases consistent with inflation and our strategic pricing
            realignment initiative in the last half of the year were partially
            offset by higher than expected discounts during the first three
            quarter of 2005.
        --  Funeral gross profits increased $11.6 million (5.7%) over the
            prior year.  The increase in funeral gross profits was a result of
            increases in the revenues described above and reductions in
            overhead expenses.  Kenyon had a lower gross loss during 2005 of
            $1.6 million.  These increases in funeral gross profits were
            partially offset by inflationary increases in merchandise costs;
            higher salary and fringe expenses (primarily health care and
            pension costs); higher incentive compensation expense; increases
            related to our trust reconciliation project; and increased
            Sarbanes-Oxley expenses.
        --  The cremation rate increased 130 basis points to 40.2% in for the
            year ended December 31, 2005 compared to the same period of 2004.

     *  Cemetery
        --  Cemetery revenue decreased $2.3 million from 2004 primarily due to
            a decrease in legacy revenues associated with constructed cemetery
            property; lower interest on trade receivables; partially off set
            by an increase in atneed revenues.
        --  Cemetery gross profits decreased $9.9 million from the prior year,
            partially due to the decrease in revenues described above.  Also
            decreasing gross margins were higher salary and fringe expenses
            (primarily health care and pension costs); increases in vehicle
            and utility costs (primarily resulting from higher fuel prices);
            and increases in administrative costs resulting from our preneed
            verification projects and Sarbanes-Oxley compliance.

     Other Consolidated Results
     *  General and administrative expenses were $84.8 million in the year
        ended December 31, 2005 compared to $130.9 million in the same period
        of 2004.
        --  In 2004, we recognized $61.1 million in expense associated with
            the settlement of outstanding litigation matters.
        --  Excluding the $61.1 million of 2004 litigation expense, general
            and administrative expenses were $84.8 million in 2005 compared to
            $69.8 million in the same period of 2004.  This increase is
            primarily related to increased professional fees associated with
            Sarbanes-Oxley compliance and external audit fees; higher
            incentive compensation (resulting from strong operating and cash
            flow results); costs associated with our funeral and cemetery
            preneed verification projects and higher than expected health and
            pension costs.  During 2005, we incurred significant expenses to
            improve internal controls to comply with Section 404 of the
            Sarbanes-Oxley Act.  We believe that these improvements have
            measurably increased the effectiveness of the organization.

     *  Gains and impairment (losses) on dispositions, net was a net loss
        of $26.1 million in 2005 compared to a net gain of $25.8 million in
        the same period of 2004.  The net loss in 2005 is primarily associated
        with losses on the dispositions of underperforming funeral and
        cemetery businesses in North America.  Also included in 2005 was a
        gain of approximately $15.6 million resulting from the release of
        indemnification liabilities related to the sales of our former
        operations in France and the United Kingdom.  The 2004 net gain
        includes a gain on the sale of our equity and debt holdings in the
        United Kingdom and a gain on the sale of our funeral operations in
        France partially offset by net losses associated with various
        dispositions in North America.

     *  Interest expense was $15.6 million lower for the year ended December
        31, 2005 compared to the same period of 2004 primarily due to the
        continued reduction of debt during 2005.

     *  Interest income increased $3.2 million to $16.7 million in 2005
        compared to 2004 due to increases in our cash balance and higher
        interest rates during 2005.

     *  Other income (expense), net decreased by $6.9 million of income in
        2005 compared to the same period of 2004.  The components of other
        income for the periods presented were as follows:
        --  Cash overrides received from a third party insurance provider
            related to the sale of insurance funded preneed funeral contracts
            were $6.0 million in 2005 compared to $6.3 million in 2004.
        --  Surety bond premium costs were $3.6 million in 2005 compared to
            $4.0 million in 2004.
        --  The remaining income of $0.4 million in 2005 and income of $7.4
            million in 2004 is primarily related to net gains from foreign
            currency transactions.

     *  The consolidated effective tax rate in 2005 was a provision of 37.6%
        compared to a benefit of 7.3% in 2004.  The tax rate in 2005 was
        negatively impacted by permanent differences between book and tax
        bases of North America asset dispositions partially offset by the
        recognition of state net operating losses.  The tax rate in 2004 was
        favorably impacted by state net operating losses and non-cash tax
        benefits realized from certain international dispositions.

    Free Cash Flow

Free cash flow is a non-GAAP financial measure, which we used in 2005 and 2004 to manage our business, including our financial condition and liquidity. Free cash flow should be reviewed in addition to, but not as a substitute for, the information provided in our consolidated statement of cash flows.

In 2005 and 2004, we define free cash flow as cash flows from operating activities (excluding certain special items such as payments associated with the settlement of litigation matters, tax refunds, premiums paid on early extinguishments of debt, or contributions to our frozen cash balance pension plan) less capital improvements at our existing facilities. The Company defines capital improvements at our existing facilities as capital improvements deemed reasonably necessary to maintain our existing facilities in a condition consistent with Company standards and to extend their useful lives. Free cash flow is not reduced by mandatory debt service requirements or by growth-oriented capital expenditures. In 2005 and 2004, the Company defines growth-oriented capital expenditures as capital expenditures intended to grow revenues and profits such as the acquisition of funeral service locations or cemeteries in large or strategic North America markets, construction of high-end cemetery property (such as private family estates) or the construction of funeral home facilities on Company-owned cemeteries, and the investment in contemporary merchandising displays in our funeral homes.

The following table provides a reconciliation between cash flows from operating activities and free cash flow, as defined.



    (In millions)                       Three Months Ended  For the Year Ended
                                            December 31,        December 31,
                                        ------------------- ------------------
                                           2005      2004      2005      2004
                                        --------- --------- --------- --------
    Cash Flows from Operating Activities  $54.3    $(75.4)    $312.7    $94.0
    Less:  Unusual Tax Refund               ---       ---      (29.0)     ---
    Add:  Legal Settlements                 ---     131.8        ---    131.1
    Add:  Cash Balance Pension Plan
     Contribution                           ---       ---        ---     20.0
    Add:  Premiums Paid on Early
     Extinguishment of Debt                 ---       ---       12.2     13.8
    Add:  Repayment of an Insurance
     Policy Loan and Other                  ---       ---        ---     11.4
                                        --------- --------- --------- --------
    Adjusted Cash Flows from Operating
     Activities                           $54.3     $56.4     $295.9   $270.3

    Less:  Capital Improvements to
     Maintain Existing Facilities          21.0      17.4       68.5     64.5
                                        --------- --------- --------- --------
    Free Cash Flow                        $33.3     $39.0     $227.4   $205.8
                                        ========= ========= ========= ========

As detailed in the table above, adjusted cash flows from operating activities increased by $25.6 million in 2005 compared to 2004. Adjusted cash flows from operating activities increased primarily as a result of improvements in our comparable operating results; one less cash payroll and lower bonus payments in 2005; an increase in net trust withdrawals; and a decrease in cash interest paid resulting from reductions in debt. These improvements to cash flow, which totaled approximately $46.0 million, were partially offset by a decrease of $18.3 million in 2005 as a result of the sale of our French operations in March 2004; cash outflows of approximately $16 million associated with the funding of the Company's 401(k) match with cash (rather than funding through the use of Company stock in 2004); and increased professional fee payments.

For the years ended December 31, 2005 and 2004, the Company reported total capital expenditures of $99.4 million and $95.6 million respectively. Included in total capital expenditures were capital improvements deemed reasonably necessary to maintain our existing facilities of $68.5 million and $64.5 million for 2005 and 2004, respectively. The remaining capital expenditures of $30.9 million in 2005 and $31.1 million in 2004 were related to growth-oriented capital expenditures. Included in the $30.9 million of growth-oriented capital expenditures incurred in 2005 was $11.5 million related to new construction of funeral home facilities, $16.4 million of construction of new high-end cemetery property, and $3.0 million associated with Dignity Memorial(R) merchandising displays.

Share Repurchase Program

As of December 31, 2005, the Company had total authorization to repurchase $400 million of our common stock. As of December 31, 2005, we had repurchased 47.7 million shares at a total cost of $335.4 million under these programs. The remaining dollar value of shares that may be purchased under our currently authorized share repurchase programs was $64.6 million at December 31, 2005. Our total shares outstanding were approximately 294.8 million as of December 31, 2005.

We have made and intend to make share repurchases from time to time in the open market or through privately negotiated transactions, subject to acceptable market conditions and normal trading restrictions. There can be no assurance that we will buy our common stock under our share repurchase programs. Important factors that could cause us not to repurchase our shares include, among others, 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.

NON-GAAP FINANCIAL MEASURES

Earnings from Continuing Operations Excluding Special Items

Earnings from continuing operations excluding special items is a non-GAAP financial measure. We believe this non-GAAP financial measure provides a consistent basis for comparison between quarters and better reflects the performance of our core operations, as it is not influenced by certain income and expenses not affecting continuing operations. We also believe this measure helps facilitate comparisons to competitors' operating results.

Set forth below is a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. We do not intend for the information to be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.



                                                  Three Months Ended
                                         -------------------------------------
    (In millions, except diluted EPS)    December 31, 2005   December 31, 2004
                                         -----------------   -----------------
                                          Net      Diluted     Net     Diluted
                                         Income      EPS      Income      EPS
    Net income reported                  $24.1      $.08      $27.2      $.08
      Hurricane insurance deductible
       expense                             1.5       .01        ---       ---
      Settlement of significant
       legal matters                       ---       ---        7.8       .02
      (Gains) and impairment losses
       on dispositions, net                7.4       .02        5.9       .02
      Income tax benefit from the
       recognition of state net
       operating losses                  (11.8)     (.04)      (7.9)     (.02)
      Discontinued operations             (0.3)      ---       (6.6)     (.02)
                                         -----------------   -----------------
    Earnings from continuing operations
     excluding special items             $20.9      $.07      $26.4      $.08
                                         =================   =================

    Diluted weighted average shares
     outstanding (in thousands)                  300,601              332,366



                                                 For the Year Ended
                                        -------------------------------------
    (In millions, except diluted EPS)   December 31, 2005   December 31, 2004
                                        -----------------   -----------------
                                          Net
                                        (Loss)     Diluted     Net     Diluted
                                        Income       EPS     Income      EPS
                                        -----------------   -----------------
    Net (loss) income reported         $(126.7)    $(.41)    $114.1      $.35
      Hurricane insurance deductible
       expense                             1.5       .01        ---       ---
      Settlement of significant legal
       matters                             ---       ---       38.7       .11
      (Gains) and impairment losses
       on dispositions, net               31.1       .10      (53.7)     (.16)
       Loss on early extinguishment
        of debt                            9.3       .03       10.5       .03
       Other income/expense, net
         Interest income - United
          Kingdom note receivable          ---       ---       (2.7)     (.01)
       Income tax benefit from the
        recognition of state net
        operating losses                 (11.8)     (.04)      (7.9)     (.02)
       Discontinued operations            (4.1)     (.02)     (41.6)     (.12)
       Cumulative effect of
        accounting changes               187.5       .61       47.6       .14
                                        -----------------   -----------------
    Earnings from continuing operations
     excluding special items             $86.8      $.28     $105.0      $.32
                                        =================   =================
    Diluted weighted average shares
     outstanding (in thousands)                  306,745              344,675
    Interest add back                               $---                 $6.4



                                                          For the Year Ended
                                                          ------------------
    (In millions, except diluted EPS)                      December 31, 2005
                                                          ------------------
                                                            Net
                                                          (Loss)       Diluted
                                                          Income         EPS

    Earnings from continuing operations
     excluding special items                               $86.8        $.28
        Income from discontinued operations                  4.1         .02
                                                          ------------------
    Earnings from continuing operations excluding
     special items and income from discontinued options    $90.9        $.30
                                                          ==================

    Conference Call and Webcast

We will host a conference call on Friday, March 3, 2006, at 10:00 a.m. central time. A question and answer session will follow a brief presentation made by management. The conference call dial-in number is (719) 457-2641. The conference call will also be broadcast live via the Internet and can be accessed through our website at http://www.sci-corp.com . A replay of the conference call will be available through March 17, 2006 and can be accessed at (719) 457-0820 with the confirmation code of 5641657. Additionally, a replay of the conference call will be available on our website for approximately ninety days on the Investors page under the subheading "Conference Calls" at http://www.sci-corp.com/ConfCalls.html . This earnings release will also be available on our website on the Investor Relations page under the subheading "News" at http://www.sci-corp.com/InvestorsMenu.html .

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, 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, pension expense and
        negative currency translation effects.
     *  The outcomes of pending lawsuits and proceedings 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.
     *  Amounts payable by us with respect to our outstanding legal matters
        exceeding our established reserves.
     *  Maintenance of 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 primarily reversed through the
        tax provision at the time of resolution.  The resolution of these
        matters is pending the outcome of an Internal Revenue Service audit
        and other various tax audits.
     *  Our ability to successfully implement our strategic plan related to
        producing operating improvements and strong cash flows.
     *  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 demographic or
        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 exploit our substantial purchasing power
        with certain of our vendors.

For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2005 Annual Report on Form 10-K, which we expect to file in the coming days. Copies of this document as well as other SEC filings can be obtained from our website at http://www.sci-corp.com . We assume no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by us, whether as a result of new information, future events or otherwise.

Service Corporation International, headquartered in Houston, Texas, owns and operates funeral service locations and cemeteries. We have an extensive network of businesses including 1,058 funeral service locations and 358 cemeteries in North America as of December 31, 2005. For more information about Service Corporation International, please visit our website at http://www.sci-corp.com .

     For additional information contact:

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

     Media:      Greg Bolton - Director / Corporate Communications
                 (713) 525-5235



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

                              Three months ended        For the year ended
                                 December 31,              December 31,
                             --------------------    ------------------------
                               2005        2004         2005          2004
                             --------    --------    ----------    ----------
    Revenues:
    Funeral                  $288,652    $279,105    $1,155,225    $1,259,821
    Cemetery                  141,432     147,523       560,380       571,404
                             --------    --------    ----------    ----------
                              430,084     426,628     1,715,605     1,831,225
    Gross profit:
    Funeral                    51,133      44,823       216,376       226,407
    Cemetery                   19,849      29,393        82,451       102,122
                             --------    --------    ----------    ----------
                               70,982      74,216       298,827       328,529

    General and administrative
     expenses                 (22,849)    (30,549)      (84,812)     (130,896)
    Gains and impairment
     (losses) on
     dispositions, net          2,566      (7,224)      (26,093)       25,797
                             --------    --------    ----------    ----------
    Operating income           50,699      36,443       187,922       223,430

    Interest expense          (25,985)    (26,800)     (102,337)     (117,910)
    Interest income             5,488       3,835        16,706        13,453
    Loss on early extinguishment
     of debt                      ---         ---       (14,258)      (16,770)
    Other income, net           2,236       6,056         2,774         9,703
                             --------    --------    ----------    ----------
                              (18,261)    (16,909)      (97,115)     (111,524)
                             --------    --------    ----------    ----------
    Income from continuing
     operations before
     income taxes and
     cumulative effects
     of accounting changes     32,438      19,534        90,807       111,906
    Provision (benefit) for
     income taxes               8,591      (1,017)       34,122        (8,194)
                             --------    --------    ----------    ----------
    Income from continuing
     operations before
     cumulative effects of
     accounting changes        23,847      20,551        56,685       120,100
    Income from discontinued
     operations (net of
     income tax provision
     (benefit) of $177,
     $(1,673), $4,764, and
     $(49,175), respectively)     298       6,613         4,123        41,584
    Cumulative effects of
     accounting changes
     (net of income tax benefit
     of $117,428 and $20,983,
     respectively)                ---         ---      (187,538)      (47,556)
                             --------    --------    ----------    ----------
         Net income (loss)    $24,145     $27,164     $(126,730)     $114,128
                             ========    ========    ==========    ==========
    Basic earnings (loss)
     per share:
       Income from continuing
        operations before
        cumulative effects of
        accounting changes       $.08        $.06          $.19          $.38
       Income from discontinued
        operations, net of tax    .00         .02           .01           .13
       Cumulative effects of
        accounting changes,
        net of tax                ---         ---          (.62)         (.15)
                             --------    --------    ----------    ----------
         Net income (loss)       $.08        $.08         $(.42)         $.36
                             ========    ========    ==========    ==========
    Diluted earnings (loss)
     per share:
       Income from continuing
        operations before
        cumulative effects of
        accounting changes       $.08        $.06          $.19          $.37
       Income from discontinued
        operations, net of tax    .00         .02           .01           .12
       Cumulative effects of
        accounting changes,
        net of tax                ---         ---          (.61)         (.14)
                             --------    --------    ----------    ----------
         Net income (loss)       $.08        $.08         $(.41)         $.35
                             ========    ========    ==========    ==========
    Basic weighted average
     number of shares         295,826     328,342       302,213       318,737
                             ========    ========    ==========    ==========
    Diluted weighted average
     number of shares         300,601     332,366       306,745       344,675
                             ========    ========    ==========    ==========
    Dividends declared
     per share                  $.025         ---          $.10           ---
                             ========    ========    ==========    ==========



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


                                                     December 31, December 31,
                                                         2005         2004
    --------------------------------------------------------------------------
    Assets
    Current assets:
       Cash and cash equivalents                        $446,782    $287,785
       Receivables, net                                   97,747     102,622
       Inventories                                        68,327      81,526
       Current assets of discontinued operations             ---      11,085
       Other                                              37,527      53,820
                                                       ---------   ---------
          Total current assets                           650,383     536,838
                                                       ---------   ---------
    Preneed funeral receivables and trust investments  1,226,192   1,267,784
    Preneed cemetery receivables and trust investments 1,288,515   1,399,778
    Cemetery property, at cost                         1,355,654   1,509,599
    Property and equipment, at cost, net                 942,229     970,547
    Non-current assets of discontinued operations            ---       4,367
    Deferred charges and other assets                    249,449     631,839
    Goodwill                                           1,123,888   1,169,040
    Cemetery perpetual care trust investments            700,382     729,048
                                                       ---------   ---------
                                                      $7,536,692  $8,218,840
                                                       =========   =========
    Liabilities & Stockholders' Equity
    Current liabilities:
       Accounts payable and accrued liabilities         $214,679    $221,877
       Current maturities of long-term debt               20,468      77,950
       Current liabilities of discontinued operations        ---       7,111
       Income taxes                                       20,359       7,850
                                                       ---------   ---------
          Total current liabilities                      255,506     314,788
                                                       ---------   ---------
    Long-term debt                                     1,175,463   1,189,163
    Deferred preneed funeral revenues                    535,384     498,571
    Deferred preneed cemetery revenues                   792,485     803,144
    Deferred income taxes                                141,676     276,572
    Non-current liabilities of discontinued operations       ---      58,225
    Other liabilities                                    337,262     431,917
    Non-controlling interest in funeral and
     cemetery trusts                                   2,015,811   2,092,881
    Non-controlling interest in perpetual care trusts    694,619     704,912

    Stockholders' equity:
       Common stock, $1 per share par value,
        500,000,000 shares authorized, 294,808,872 and
        323,225,352, issued and outstanding
        (net of 48,962,063 and 18,502,478 treasury
        shares, at par)                                  294,809     323,225
       Capital in excess of par value                  2,182,745   2,395,057
       Unearned compensation                              (3,593)     (2,022)
       Accumulated deficit                              (955,974)   (829,244)
       Accumulated other comprehensive income (loss)      70,499     (38,349)
                                                       ---------   ---------
          Total stockholders' equity                   1,588,486   1,848,667
                                                       ---------   ---------
                                                      $7,536,692  $8,218,840
                                                       =========   =========



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

                                                         For the year ended
                                                            December 31,
                                                       ----------------------
                                                          2005         2004
                                                       ---------     --------
    Cash flows from operating activities:
      Net (loss) income                                $(126,730)    $114,128
      Adjustments to reconcile net (loss) income
       to net cash provided by operating activities:
          Income from discontinued operations             (4,123)     (41,584)
          Loss on early extinguishments of debt,
           net of tax                                     14,258       16,770
          Premiums paid on early extinguishment of debt  (12,186)     (13,817)
          Cumulative effects of accounting changes,
           net of tax                                    187,538       47,556
          Depreciation and amortization                   87,449      144,766
          Provision for deferred income taxes             26,080       17,739
          (Gains) and impairment losses on
           dispositions, net                              26,093      (25,797)
          Payments on restructuring charges              (10,723)     (14,000)
          Litigation payments                             (3,126)    (164,566)
      Change in assets and liabilities, net of
       effects from acquisitions and dispositions:
          Decrease in receivables                         18,915       45,983
          Decrease in other assets                        43,991        5,946
          Increase in litigation accrual                     370       60,800
          (Increase) decrease in payables and
           other liabilities                              11,953      (53,941)
          Net effect of preneed funeral production
           and maturities                                  5,176      (20,989)
          Net effect of cemetery production
           and deliveries                                 52,981      (28,691)
          Other                                               86       (1,971)
                                                       ---------     --------
    Net cash provided by operating activities
     from continuing operations                          318,002       88,332
    Net cash (used in) provided by operating
     activities from discontinued operations              (5,344)       5,656
                                                       ---------     --------
    Net cash provided by operating activities            312,658       93,988
    Cash flows from investing activities:
      Capital expenditures                               (99,416)     (95,619)
      Proceeds from divestitures and sales of
       property and equipment                            111,722       57,749
      Proceeds from dispositions of foreign
       operations, net of cash retained                  151,692      330,829
      Payment of contingent obligations to
       former owners of acquired businesses                  ---      (48,749)
      Indemnity payments related to the sale of
       former funeral operations in France                (2,105)      (2,401)
      Net withdrawals of restricted funds and other        9,334       51,378
                                                       ---------     --------
    Net cash provided by investing activities from
     continuing operations                               171,227      293,187
    Net cash used in investing activities from
     discontinued operations                                (212)      (3,663)
                                                       ---------     --------
    Net cash provided by investing activities            171,015      289,524
    Cash flows from financing activities:
      Proceeds from issuance of long-term debt           291,503      241,444
      Payments of debt                                   (85,618)    (177,648)
      Early extinguishments of debt                     (291,277)    (299,961)
      Proceeds from exercise of stock options              7,834       10,605
      Purchase of Company common stock                  (225,152)    (110,258)
      Payments of dividends                              (22,637)         ---
      Other                                                 (844)         ---
                                                       ---------     --------
    Net cash used in financing activities from
     continuing operations                              (326,191)    (335,818)
    Effect of foreign currency                             1,515          660
                                                       ---------     --------
    Net increase in cash and cash equivalents            158,997       48,354
    Cash and cash equivalents at beginning of period     287,785      239,431
                                                       ---------     --------
    Cash and cash equivalents at end of period          $446,782     $287,785
                                                       =========     ========
SOURCE  Service Corporation International
    -0-                             03/02/2006
    /CONTACT:  investors, Debbie Young, Director - Investor Relations,
+1-713-525-9088, or media, Greg Bolton, Director - Corporate Communications,
+1-713-525-5235, both of Service Corporation International/
    /Web site:  http://www.sci-corp.com
                http://www.sci-corp.com/ConfCalls.html
                http://www.sci-corp.com/InvestorsMenu.html /
    (SCI)

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

CT-CJ
-- DATH044 --
7648 03/02/2006 20:32 EST http://www.prnewswire.com