News Release

SCI Corporate Communications
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Email: Press.Room@sci-us.com
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Service Corporation International Reports Third Quarter 2005 Loss of $.03 Per Diluted Share, Earnings of $.04 Per Diluted Share Before Special Items and Continued Strong Operating Cash Flows

- Conference call to be webcast on Tuesday, November 15, 2005, at 9:00 a.m. central time.

HOUSTON, Nov. 14 /PRNewswire-FirstCall/ -- Service Corporation International (NYSE: SCI), which owns and operates funeral service locations and cemeteries, today reported for the third quarter of 2005 a net loss of $9.6 million or a net loss of $.03 per diluted share compared to net income of $13.9 million or $.04 per diluted share in the same period of 2004. The decrease in 2005 primarily relates to a pretax loss on dispositions of property of $27.4 million or $.07 per diluted share. These results in both periods were also impacted by litigation expenses, other losses on dispositions, and discontinued operations.

SCI's third quarter earnings from continuing operations excluding special items were $11.1 million, or $.04 per diluted share. This compares to earnings of $20.0 million, or $.06 per diluted share in the third quarter of 2004. In the third quarter of 2005, results were negatively impacted by $.01 per diluted share due to 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 before special items to GAAP measures included in a separate section later in this press release.

Free cash flow was $47.2 million for the third quarter of 2005 and $46.1 million for the same period of 2004. For the nine months ended September 30, 2005 and 2004, free cash flow was $194.1 million and $166.8 million, respectively, an increase of $27.3 million. Free cash flow is a non-GAAP financial measure. See our definition and calculation of free cash flow and reconciliation to cash flow from operations included in a separate section later in this press release. At September 30, 2005, total debt was $1.26 billion and cash on hand was $492.1 million. Total debt less cash and cash equivalents has decreased by $197.4 million from December 31, 2004. There were no significant debt repayments during the third quarter of 2005.

For the nine months ended September 30, 2005, the Company reported a net loss of $150.9 million or $.49 per diluted share related primarily to the Company's accounting change for expensing direct preneed selling costs in the period incurred. SCI's earnings from continuing operations excluding special items were $65.8 million or $.21 per diluted share for the first nine months of 2005 compared to $81.8 million or $.25 per diluted share in the prior period. Earnings from continuing operations excluding special items in the nine months ended September 30, 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.

"We are pleased with our continuing ability to deliver strong cash flows," said Tom Ryan, President and Chief Executive Officer. "Our cash on hand at the end of the third quarter exceeded $490 million, which included the proceeds from the sale of our cemetery operations in Chile in September 2005. Operating margins were below expectations for the quarter as increasing costs associated with energy, health care, pension and Sarbanes-Oxley more than offset the positive impact of continued strong funeral case volume and strong cemetery sales production. I believe the Company is poised to grow from the solid foundation we have established. We expect to finish the year strong by delivering a solid operating performance in the last quarter of 2005."

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 September 30, 2005. Therefore, in the following presentation, we are providing results of operations for the same funeral and cemetery locations in each of the periods presented. We believe this presentation provides greater clarity for comparison purposes of our results of operations for each of the periods presented.

Effective January 1, 2005, we 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 $0.9 million of additional direct selling costs in our funeral segment and $4.1 million of additional direct selling costs in our cemetery segment were expensed during the third quarter of 2004, and as if $3.6 million of additional direct selling costs in our funeral segment and $12.7 million of additional direct selling costs in our cemetery segment were expensed during the nine month period ended September 30, 2004.



    (In millions, except funeral
     services performed, average
     revenue per funeral service
     and gross margin percentage)
                                            Three Months         Nine Months
                                                Ended               Ended
                                            September 30,       September 30,
                                         -----------------  ------------------
                                                 Pro forma           Pro forma
                                           2005     2004      2005      2004
                                         -------- -------- --------- ---------
                                                 (Restated)         (Restated)
    Funeral
    Funeral atneed revenue               $ 165.4  $ 164.8  $  540.6  $  523.0
    Funeral recognized preneed revenue      79.6     79.9     258.0     256.9
    General agency revenue (A)               6.9      7.0      21.0      22.7
    Kenyon revenue (B)                       5.6      0.5      19.0       3.0
                                         -------- -------- --------- ---------
       Total funeral revenues            $ 257.5  $ 252.2  $  838.6  $  805.6

    Gross profits                        $  36.4  $  42.8  $  163.4  $  162.4
    Gross margin percentage                14.1%    17.0%     19.5%     20.2%

    Total funeral services performed      56,519   56,494   183,849   182,075
    Average revenue per
     funeral service (C)                 $ 4,335  $ 4,331  $  4,344  $  4,283

    Cemetery
    Cemetery atneed revenue              $  50.5  $  41.1  $  155.2  $  131.6
    Cemetery recognized preneed revenue     71.7     64.2     204.8     225.2
    Other revenue (D)                       20.7     22.3      55.6      58.0
                                         -------- -------- --------- ---------
       Total cemetery revenues           $ 142.9  $ 127.6  $  415.6  $  414.8

    Gross profits                        $  22.8  $  19.7  $   63.4  $   60.2
    Gross margin percentage                16.0%    15.4%     15.3%     14.5%

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

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

     (C)  Average revenue per funeral service is calculated as total funeral
          revenues (less GA revenue and Kenyon revenue) divided by total
          funeral services performed.  In the calculation of average revenue
          per funeral service, GA revenue and Kenyon revenue are excluded from
          total funeral revenues to avoid distorting our averages of normal
          funeral services performed.

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


    For the Three Months Ended September 30, 2005
     *  North America comparable funeral gross profits decreased $6.4 million
        to $36.4 million.
        -  Funeral revenues were up $5.3 million primarily due to an increase
           of $5.1 million in revenues from Kenyon.
        -  The decrease in funeral gross profit is primarily due to
           inflationary increases in the cost of merchandise; an increase in
           vehicle and utility costs, which were impacted by rising fuel
           prices; and higher salaries and fringes due to inflationary
           increases and higher health and pension costs.  The decreases in
           gross profit were partially offset by an increase in Kenyon gross
           profit of $2.9 million in the third quarter of 2005 compared to
           2004.
        -  The average revenue per funeral service and the number of funeral
           services performed were flat in the third quarter of 2005 compared
           to the prior year period.  The average revenue per funeral service
           fell below expectations during the third quarter of 2005 as a
           result of higher than expected discounts to consumers at the local
           level and a higher than expected mix of cremation consumers during
           the third quarter of 2005.
        -  The cremation rate increased 140 basis points to 40.9% in the third
           quarter of 2005 compared to 2004.  The first and second quarter of
           2005 had cremation rate increases of 60 and 80 basis points,
           respectively.

     *  North America comparable cemetery gross profits increased 15.7% to
        $22.8 million.
        -  Cemetery revenue increased $15.3 million from the third quarter of
           2004 primarily due to an increase in preneed and atneed sales
           production combined with an increase in legacy revenues associated
           with constructed cemetery property.
        -  Cemetery gross profits increased $3.1 million from the third
           quarter of 2004.  The increase in revenues described above was
           partially offset by inflationary increases in the cost of
           merchandise, increases in maintenance expense and higher fringe
           expenses, which were primarily health and pension costs.

    Other Consolidated Results
     *  General and administrative expenses were $19.8 million in the
        three months ended September 30, 2005 compared to $25.3 million in the
        same period of 2004.
        -  In the third quarter of 2004, we recognized $8.3 million in legal
           expense (net of insurance recoveries) associated with the
           settlement of outstanding litigation matters.
        -  Excluding the $8.3 million of 2004 litigation expense, general and
           administrative expenses were $19.8 million in 2005 compared to
           $17.0 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.  During 2005, we
           have spent a significant amount of money to improve internal
           controls to comply with Section 404 of the Sarbanes Oxley Act.  We
           believe that these improvements will continue to increase the
           effectiveness of the organization.

     *  Gains and impairment (losses) on dispositions, net was a net loss of
        $27.4 million in the third quarter of 2005 compared to a net loss of
        $3.3 million in the same period of 2004.  The net losses in the third
        quarters of 2005 and 2004 are primarily associated with losses on
        dispositions of underperforming funeral homes and cemeteries in North
        America.  Included in the 2005 net loss was a loss of approximately
        $30.0 million related to the disposition of properties to StoneMor LP
        in November 2005.

     *  Interest expense was $0.8 million lower in the third quarter of 2005
        compared to the third quarter of 2004 primarily due to the additional
        reduction of debt during 2005.

     *  Other income (expense), net was relatively flat in the third quarter
        of 2005 compared to the same period of 2004.  The components of other
        income for the periods presented were as follows:
        -  Interest income on notes receivable and commercial paper was
           $3.3 million and $1.1 million in the third quarter of 2005
           and 2004, respectively.
        -  Cash overrides received from a third party insurance provider
           related to the sale of insurance funded preneed funeral contracts
           were $1.5 million in the third quarter of 2005 compared to
           $1.6 million in the third quarter of 2004.
        -  Surety bond premium costs were $1.0 million in the third quarter of
           2005 compared to $1.1 million in the third quarter of 2004.
        -  The remaining income of $0.6 million in the third quarter of 2005
           and $2.7 million in the third quarter of 2004 is primarily related
           to net gains from foreign currency transactions.

     *  The consolidated effective tax rate in the third quarter of 2005 was a
        benefit of 11.0% compared to a provision of 25.0% in the third quarter
        of 2004.  The tax benefit in 2005 was negatively impacted by increases
        in tax expense resulting from permanent differences between the book
        and tax bases of North America asset dispositions.


    For the Nine Months Ended September 30, 2005
     *  North America comparable funeral gross profits increased 0.6% to
        $163.4 million.
        -  Funeral revenues were up $33.0 million (including an increase of
           $16.0 million in revenues from Kenyon) due to increases in funeral
           volume and average revenue per funeral service partially offset by
           a decline in GA revenues.
        -  The increase in funeral gross profits was a result of increases in
           the revenues described above, reductions in overhead expenses, and
           an increase in gross profits from Kenyon of $2.6 million, which
           were partially offset by inflationary increases in merchandise
           costs, higher salary and fringe expenses (primarily health care and
           pension costs), and increases related to our trust reconciliation
           project and Sarbanes-Oxley compliance.
        -  The number of funeral services performed increased 1.0% in the
           first nine months of 2005.
        -  Average revenue per funeral service was up 1.4% compared to the
           prior year period.
        -  The cremation rate increased 110 basis points to 40.4% in the nine
           months ended September 30, 2005.

     *  North America comparable cemetery gross profits increased $3.2 million
        to $63.4 million.
        -  Cemetery revenue increased $0.8 million from 2004 primarily due to
           an increase in operating atneed revenues and trust fund income,
           partially offset by a decline in interest on trade receivables.
        -  The increase in cemetery gross profits is primarily due to the
           increase in revenues described above and decreases in maintenance
           and overhead expenses.  These improvements were partially offset by
           inflationary increases in the cost of merchandise, higher salary
           and fringe expenses (primarily health care and pension costs),
           increases in vehicle and utility costs (primarily driven by higher
           fuel prices), and increases in auto lease expense driven by higher
           variable interest rates.


    Other Consolidated Results
     *  General and administrative expenses were $62.0 million in the nine
        months ended September 30, 2005 compared to $100.3 million in the same
        period of 2004.
        -  In the first nine months of 2004, we recognized $48.3 million in
           expense associated with the settlement of outstanding litigation
           matters including $35.0 million related to a securities class
           action lawsuit.
        -  Excluding the $48.3 million of 2004 litigation expense, general and
           administrative expenses were $62.0 million in 2005 compared to
           $52.0 million in the same period of 2004.  This increase is
           primarily related to increased professional fees associated with
           Sarbanes-Oxley compliance, external audit fees, and costs
           associated with our funeral and cemetery verification projects.
        -  General and administrative expenses were approximately $3.0 million
           above our expectations for the first nine months of 2005 primarily
           related to an increase in professional fees associated with
           Sarbanes-Oxley compliance, external audit fees, and costs
           associated with our funeral and cemetery trust reconciliation and
           verification projects, partially offset by returns on the Company's
           cash surrender value of officers' life insurance.

     *  Gains and impairment (losses) on dispositions, net was a net loss of
        $28.7 million in the first nine months of 2005 compared to a net gain
        of $33.0 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
        partially offset by the resolution of a contingency associated with
        the sale of our operations in the United Kingdom.  Included in the
        2005 net loss amount was a loss of approximately $30.0 million related
        to the disposition of properties to StoneMor LP in November 2005.  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 $14.8 million lower in the first nine months of
        2005 compared to the same period of 2004 primarily due to the
        additional reduction of debt during 2005.

     *  Other income (expense), net decreased by $1.5 million of income in the
        first nine months of 2005 compared to the same period of 2004.  The
        components of other income for the periods presented were as follows:
        -  Interest income was $11.2 million and $9.6 million in the first
           nine months of 2005 and 2004, respectively.  Included in 2005 was
           $1.9 million of interest income on preferred equity certificates
           from our former funeral operations in France.  The first half of
           2004 included the receipt of $4.5 million of interest income
           related to a note receivable collected from our former United
           Kingdom company.
        -  Cash overrides received from a third party insurance provider
           related to the sale of insurance funded preneed funeral contracts
           were $4.7 million in the first nine months of 2005 compared to
           $4.9 million in 2004.
        -  Surety bond premium costs were $3.0 million in 2005 compared to
           $3.4 million in 2004.
        -  The remaining expense of $1.1 million in 2005 and income of
           $2.2 million in 2004 are primarily related to net losses and gains
           from foreign currency transactions, respectively.

     *  The consolidated effective tax rate in the first nine months of 2005
        was a provision of 43.7% compared to a benefit of 7.8% in the same
        period of 2004.  The tax rate in the first nine months of 2005 was
        negatively impacted by permanent differences between the book and tax
        bases of North America asset dispositions.  The tax rate in the first
        nine months of 2004 was favorably impacted by non-cash tax benefits
        realized from the disposition of our funeral operations in France and
        the United Kingdom.  The tax benefits from dispositions result from
        differences between the book and tax bases and the reversal of tax
        liabilities that were then recorded as warranty indemnification
        liabilities.


    Free Cash Flow

Free cash flow is a non-GAAP financial measure. We define free cash flow as cash flows from operating activities (excluding certain special items such as payments associated with the settlement of litigation matters, premiums paid on early extinguishments of debt, tax refunds, or contributions to our frozen cash balance pension plan) less capital improvements at our existing facilities. We define capital improvements at 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. We define growth-oriented capital expenditures as capital expenditures intended to grow revenues and profits such as the acquisition of funeral service locations or cemeteries in large or strategic North America markets, construction of high-end cemetery property (such as private family estates) or the construction of funeral home facilities on Company-owned cemeteries, and the investment in contemporary merchandising displays in our funeral homes.

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

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

     (In millions)                           Three Months         Nine Months
                                                 Ended               Ended
                                             September 30,       September 30,
                                           ---------------   -----------------
                                             2005     2004      2005      2004
                                           -------  ------   --------  -------
     Cash Flows from Operating Activities   $68.0    $50.2    $258.4    $169.4
     Less:  Unusual Tax Refund                ---      ---     (29.0)      ---
     Add:  Premiums paid on early
      extinguishments of debt                 ---      ---      12.2      13.8
     Cash Balance Pension Plan Contribution   ---      ---       ---      20.0
     Repayment of an insurance policy loan
      and other                               ---     10.7       ---      10.7
                                           -------  ------   --------  -------
     Adjusted Cash Flows
      from Operating Activities             $68.0    $60.9    $241.6    $213.9

     Less:  Capital Improvements
      to Maintain Existing Facilities        20.8     14.8      47.5      47.1
                                           -------  ------   --------  -------
     Free Cash Flow                         $47.2    $46.1    $194.1    $166.8
                                           =======  ======   ========  =======

Adjusted cash flows from operating activities increased by $7.1 million in the third quarter of 2005 compared to the third quarter of 2004. In the third quarter of 2005, cash flow from operating activities was positively impacted by increases in net trust fund withdrawals and less cash interest paid. Improvements in cash flows from operating activities resulting from our working capital initiatives were offset by cash outflows associated with the Company funding employee matches to our 401(k) plan using cash in 2005.

For the three months ended September 30, 2005 and 2004, total capital expenditures were $28.3 million and $26.2 million, respectively. Included in total capital expenditures were capital improvements deemed reasonably necessary to maintain our existing facilities of $20.8 million and $14.8 million for the third quarter of 2005 and 2004, respectively. Growth- oriented capital spending was $7.5 million in the third quarter of 2005 compared to $11.4 million in the third quarter of 2004. Included in the $7.5 million of growth-oriented capital expenditures incurred in the third quarter of 2005 was $5.0 million related to new construction of funeral home facilities, $1.6 million of construction of new high-end cemetery property, and $0.9 million associated with Dignity Memorial(R) merchandising displays.

Share Repurchase Program

As of September 30, 2005, we had total authorization to repurchase $400 million of our common stock. As of today, we have repurchased 45.3 million shares at a total cost of $314.8 million under these programs. The remaining dollar value of shares that may be purchased under our currently authorized share repurchase programs is $85.2 million. Our total shares outstanding were approximately 296.6 million as of November 8, 2005.

We have made and intend to make purchases 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. See the Company's 2004 Form 10-K, as amended, for details related to these adjustments.

Results in the three and nine months ended September 30, 2005, were negatively impacted by $.01 per diluted share and $.03 per diluted share, respectively, as a result of the Company's change in accounting to expense direct preneed selling costs as they are incurred.



                                               Three Months Ended
                                     -----------------------------------------
    (In millions, except diluted EPS)     September 30,          September 30,
                                             2005                   2004
                                     --------------------    -----------------
                                                               (As Restated)
                                        Net
                                      (Loss)      Diluted      Net     Diluted
                                      Income         EPS      Income      EPS
                                    ---------------------    -----------------

    Net (loss) income reported       $  (9.6)    $  (.03)    $  13.9    $ .04

       Settlement of significant
        legal matters                    ---         ---         5.2      .02
       (Gains) and impairment losses
        on dispositions, net            20.2         .07         1.8      ---
       Discontinued operations           0.5         ---        (0.9)     ---
                                    ---------------------   ------------------
    Earnings from continuing
     operations excluding
     special items                   $  11.1     $   .04    $   20.0    $ .06
                                    =====================   ==================

    Diluted weighted average
     shares outstanding
     (in thousands)                              297,421              340,215
    Interest add back                            $   ---                $ ---



                                                  Nine Months Ended
                                    ------------------------------------------
    (In millions,                         September 30,          September 30,
     except diluted EPS)                     2005                   2004
                                    ---------------------   ------------------
                                                                (As Restated)
                                        Net
                                      (Loss)      Diluted       Net    Diluted
                                      Income         EPS       Income     EPS
                                    ---------------------   ------------------
    Net (loss) income reported       $(150.9)    $  (.49)   $   87.0    $ .27

       Settlement of significant
        legal matters                    ---         ---        30.6      .09
       (Gains) and impairment losses
        on dispositions, net            23.7         .07       (58.5)    (.17)
       Loss on early extinguishment
        of debt                          9.3         .03        10.5      .03
       Other income/expense, net
        Interest income -
         United Kingdom note
         receivable                     ---         ---        (2.7)     (.01)
        Foreign currency
         transaction loss               ---         ---         2.3       .01
       Discontinued operations         (3.8)       (.01)      (35.0)     (.10)
       Cumulative effect
        of accounting changes         187.5         .61        47.6       .13
                                    ---------------------   ------------------
    Earnings from continuing
     operations excluding
     special items                   $ 65.8      $  .21     $  81.8     $ .25
                                    =====================   ==================

    Diluted weighted average shares
     outstanding (in thousands)                 308,807               348,894
    Interest add back                            $  ---                 $ 6.4


    Conference Call and Webcast

We will host a conference call on Tuesday, November 15, 2005, at 9:00 a.m. central time. A question and answer session will follow a brief presentation made by management. The conference call dial-in number is (785) 832-0326. 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 November 29, 2005 and can be accessed at (719) 457-0820 with the confirmation code of 4218134. 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.
     *  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 successfully implement our strategic plan related to
        producing operating improvements and strong cash flows.
     *  Our ability to successfully implement our plan to reduce costs and
        increase cash flows associated with significant changes being made to
        our organization structure, process and quality of our sales efforts.
     *  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 complete our ongoing process improvement
        projects, particularly related to the implementation of new processes
        and internal controls.
     *  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.
     *  The outcome of a pending Internal Revenue Service audit.
     *  The possibility that the Company will identify and report additional
        material weaknesses in its internal control over financial reporting.
     *  The effectiveness of our internal controls over financial reporting,
        and our ability to certify the effectiveness of the internal controls
        and to obtain a favorable attestation report of our auditors regarding
        our assessment of our internal controls.

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

Service Corporation International (NYSE: SCI), headquartered in Houston, Texas, owns and operates funeral service locations and cemeteries. We have an extensive network of businesses including 1,093 funeral service locations and 380 cemeteries in North America as of September 30, 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:      Terry Hemeyer - Managing Director / Corporate Communications
                 (713) 525-5497



                      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,
                            -----------------------  ------------------------
                                2005         2004         2005         2004
                            ----------   ----------  -----------  -----------
                                         (Restated)                (Restated)

    Revenues:
    Funeral                 $ 262,665    $ 266,704     $866,573     $980,716
    Cemetery                  143,704      130,482      418,948      423,881
                            ----------   ----------  -----------  -----------
                              406,369      397,186    1,285,521    1,404,597
    Gross profit:
    Funeral                    35,544       44,716      165,243      181,584
    Cemetery                   22,731       23,579       62,602       72,729
                            ----------   ----------  -----------  -----------
                               58,275       68,295      227,845      254,313

    General and
     administrative
     expenses                 (19,753)     (25,298)     (61,963)    (100,347)
    Gains and impairment
     (losses) on
     dispositions, net        (27,446)      (3,281)     (28,659)      33,021
                            ----------   ----------  -----------  -----------
    Operating income           11,076       39,716      137,223      186,987

    Interest expense          (25,821)     (26,609)     (76,352)     (91,110)
    Loss on early
     extinguishment of debt       ---          ---      (14,258)     (16,770)
    Other income, net           4,443        4,255       11,756       13,265
                            ----------   ----------  -----------  -----------
                              (21,378)     (22,354)     (78,854)     (94,615)
                            ----------   ----------  -----------  -----------
    (Loss) income from
      continuing operations
      before income taxes and
      cumulative effects of
      accounting changes      (10,302)      17,362       58,369       92,372
    (Benefit) provision
      for income taxes         (1,131)       4,336       25,531       (7,177)
                            ----------   ----------  -----------  -----------
    (Loss) income from
      continuing operations
      before cumulative effects
      of accounting changes    (9,171)      13,026       32,838       99,549
    (Loss) income from
      discontinued operations
     (net of income tax
      provision (benefit) of
      $2,606, $623, $4,587, and
      $(47,502), respectively)   (463)         850        3,825       34,971
    Cumulative effects of
     accounting changes (net
     of income tax benefit of
     $117,428 and $20,983,
     respectively)                ---          ---     (187,538)     (47,556)
                            ----------   ----------  -----------  -----------
       Net (loss) income      $(9,634)     $13,876   $ (150,875)     $86,964
                            ==========   ==========  ===========  ===========
    Basic (loss) earnings
     per share:
     (Loss) income from
      continuing operations
      before cumulative
      effects of accounting
      changes                   $(.03)        $.04         $.11         $.32
     Income from discontinued
      operations, net of tax      ---          ---          .01          .11
     Cumulative effects of
      accounting changes,
      net of tax                  ---          ---         (.62)        (.15)
                            -----------  ----------  ------------  ----------
       Net (loss) income        $(.03)        $.04        $(.50)        $.28
                            ===========  ==========  ============  ==========
    Diluted (loss) earnings
     per share:
     (Loss) income from
      continuing operations
      before cumulative
      effects of accounting
      changes                   $(.03)        $.04        $ .11         $.30
     Income from discontinued
      operations, net of tax      ---          ---          .01          .10
     Cumulative effects of
      accounting changes,
      net of tax                  ---          ---         (.61)        (.13)
                            -----------  ----------  ------------  ----------
       Net (loss) income        $(.03)        $.04        $(.49)        $.27
                            ===========  ==========  ============  ==========
    Basic weighted average
     number of shares         297,421      336,590      304,366      315,656
                            ===========  ==========  ============  ==========
    Diluted weighted average
     number of shares         297,421      340,215      308,807      348,894
                            ===========  ==========  ============  ==========
    Dividends declared
     per share                  $.025          ---        $.075          ---
                            ===========  ==========  ============  ==========



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

                                                    September 30, December 31,
                                                        2005          2004
    --------------------------------------------------------------------------
                                                                   (Restated)

    Assets
    Current assets:
      Cash and cash equivalents                       $492,059       $287,785
      Receivables, net                                  82,306        102,622
      Inventories                                       66,158         81,526
      Current assets held for sale                      12,959            ---
      Current assets of discontinued operations            ---         11,085
      Other                                             52,176         50,945
                                                    ----------    -----------
        Total current assets                           705,658        533,963
                                                    ----------    -----------
    Preneed funeral receivables
     and trust investments                           1,238,123      1,267,784
    Preneed cemetery receivables
     and trust investments                           1,295,352      1,399,778
    Cemetery property, at cost                       1,376,817      1,509,599
    Property and equipment, at cost, net               947,024        970,547
    Non-current assets held for sale                    49,774            ---
    Non-current assets of discontinued operations          ---          4,367
    Deferred charges and other assets                  247,327        621,561
    Goodwill                                         1,140,509      1,169,040
    Cemetery perpetual care trust investments          701,382        729,048
                                                    ----------    -----------
                                                    $7,701,966     $8,205,687
                                                    ==========    ===========
    Liabilities & Stockholders' Equity
    Current liabilities:
      Accounts payable and accrued liabilities        $234,281       $221,877
      Current maturities of long-term debt              88,272         75,075
      Current liabilities of discontinued operations       ---          7,111
      Income taxes                                         690          7,850
                                                    ----------    -----------
        Total current liabilities                      323,243        311,913
                                                    ----------    -----------
    Long-term debt                                   1,172,513      1,178,885
    Deferred preneed funeral revenues                  516,158        498,571
    Deferred preneed cemetery revenues                 789,143        803,144
    Deferred income taxes                              174,053        276,572
    Non-current liabilities held for sale               49,985            ---
    Non-current liabilities of discontinued operations     ---         58,225
    Other liabilities                                  381,346        431,917
    Non-controlling interest in funeral
     and cemetery trusts                             2,015,314      2,092,881
    Non-controlling interest
     in perpetual care trusts                          680,088        704,912

    Stockholders' equity:
      Common stock, $1 per share par value,
       500,000,000 shares authorized,
       298,148,297 and 323,225,352, issued
       and outstanding (net of 44,917,591
       and 18,502,478 treasury shares, at par)         298,148        323,225
      Capital in excess of par value                 2,216,952      2,395,057
      Unearned compensation                             (4,153)        (2,022)
      Accumulated deficit                             (980,119)      (829,244)
      Accumulated other comprehensive income (loss)     69,295        (38,349)
                                                    ----------    -----------
       Total stockholders' equity                    1,600,123      1,848,667
                                                    ----------    -----------
                                                    $7,701,966     $8,205,687
                                                    ==========    ===========



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

                                                        Nine months ended
                                                           September 30,
                                                    --------------------------
                                                        2005           2004
                                                    -----------   ------------
                                                                    (Restated)

    Cash flows from operating activities:
     Net (loss) income                               $(150,875)      $ 86,964
     Adjustments to reconcile net (loss)
      income to net cash provided by
      operating activities:
       Net income from discontinued operations          (3,825)       (34,971)
       Loss on early extinguishments of debt            14,258         16,770
       Premiums paid on early extinguishments of debt  (12,186)       (13,817)
       Cumulative effects of accounting changes,
        net of tax                                     187,538         47,556
       Depreciation and amortization                    64,795        103,882
       Provision (benefit) for deferred income taxes    23,871         (9,230)
      (Gains) and impairment losses
        on dispositions, net                            28,659        (33,021)
       Other non-cash adjustments                          ---            667
     Change in assets and liabilities, net of effects
      from acquisitions and dispositions:
       Decrease in receivables                          24,912         25,464
       Decrease in other assets                         33,344          2,106
       Increase in payables and other liabilities        9,767         21,049

       Net effect of preneed funeral production
        and maturities                                  (3,797)       (20,838)
       Net effect of cemetery production and deliveries 46,932        (18,112)
       Other                                               337            318
                                                    -----------   ------------
    Net cash provided by operating activities
     from continuing operations                        263,730        174,787
    Net cash used in operating activities
     from discontinued operations                       (5,344)        (5,378)
                                                    -----------   ------------
    Net cash provided by operating activities          258,386        169,409
    Cash flows from investing activities:
     Capital expenditures                              (72,241)       (67,495)
     Proceeds from divestitures and sales
      of property and equipment                         58,122         30,326
     Proceeds and distributions from dispositions
      of businesses, net of cash retained              112,018        330,789
     Proceeds from equity investments                   39,674            ---
     Payment of purchase obligation
      to former owners of acquired businesses              ---        (51,749)
     Indemnity payments related to the disposition
      of former funeral operations                      (1,834)           ---
     Net withdrawals (deposits) of restricted funds
      and other                                         13,944       (120,903)
                                                    -----------   ------------
    Net cash provided by investing activities
     from continuing operations                        149,683        120,968
    Net cash used in investing activities
     from discontinued operations                         (212)          (132)
                                                    -----------   ------------
    Net cash provided by investing activities          149,471        120,836
    Cash flows from financing activities:
     Proceeds from issuance of long-term debt          291,472        241,237
     Payments of debt                                   (8,058)      (124,752)
     Early extinguishments of debt                    (286,215)      (299,961)
     Proceeds from exercise of stock options             5,145          6,040
     Purchase of Company common stock                 (191,221)       (34,812)
     Payments of dividends                             (15,184)           ---
     Purchase of subsidiary stock                         (844)           ---
                                                    -----------   ------------
    Net cash used in financing activities             (204,905)      (212,248)
    Effect of foreign currency                           1,322            617
                                                    -----------   ------------
    Net increase in cash and cash equivalents          204,274         78,614
    Cash and cash equivalents at beginning of period   287,785        239,431
                                                    -----------   ------------
    Cash and cash equivalents at end of period        $492,059       $318,045
                                                    ===========   ============
SOURCE  Service Corporation International
    -0-                             11/14/2005
    /CONTACT:  investors, Debbie Young, Director - Investor Relations,
+1-713-525-9088, or media, Terry Hemeyer, Managing Director - Corporate
Communications, +1-713-525-5497, both of Service Corporation International/
    /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 ERP

AH-AP
-- DAM089 --
0603 11/14/2005 21:47 EST http://www.prnewswire.com