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Service Corporation International Announces Third Quarter Results of $.02 Per Diluted Share Before Non-Recurring Items and Continued Debt Reduction and Cash Flow Improvement

HOUSTON, Nov. 6 /PRNewswire/ -- Service Corporation International (NYSE: SRV), the world's largest funeral and cemetery company, today announced results from continuing operations for the third quarter 2001 of $.02 per diluted share ($.02 basic) compared to a loss of $.04 per diluted share ($.04 basic) for the third quarter of 2000, excluding non-recurring items in both periods. For the nine months ended September 30, 2001, the Company reported earnings of $.15 per diluted share ($.15 basic) compared to $.01 per diluted share ($.01 basic) for the same period of 2000, excluding non-recurring items in both periods.

The Company also reported continued success in its cash flow enhancing and debt reduction initiatives. For the nine months ended September 30, 2001, the Company reported total operating free cash flow of $296.9 million compared to $177.3 million for the same period of 2000. The Company reported recurring operating free cash flow of $164.4 million for the first nine months of 2001 versus $80.7 million for the same period of 2000. The Company's total debt was reduced by $253.7 million or 9.1% during the third quarter of 2001, resulting in total debt of $2.52 billion as of September 30, 2001.

Commenting on the results of the third quarter of 2001, SCI Chairman and Chief Executive Officer, Robert L. Waltrip, said:

"We continue to be exceptionally pleased with the results of our initiatives to enhance cash flow and reduce debt which have exceeded our original expectations. Despite significant cash interest remaining to be paid in 2001, we now believe our total operating free cash flow produced in 2001 will be between $285 and $310 million and our recurring operating free cash flow produced in 2001 will be between $150 and $175 million. Additionally, we expect total debt to be in the range of $1.8 to $2.3 billion by the end of 2002. The midpoint of this range would represent a reduction of over 50% in total debt from the Company's peak debt level at September 30, 1999."

Highlights of the Company's financial results from continuing operations are detailed in the following table. For the three and nine months ended September 30, 2001, compared to the same period of 2000, the Company's total revenues were negatively affected by approximately $3.3 million and $34.6 million, respectively, from effects of foreign currency translation primarily related to the Euro. The Company's total gross profits were negatively affected by approximately $0.9 million and $4.8 million from the effects of foreign currency translation for the three and nine months ended September 30, 2001, respectively, compared to the same period of 2000. The Company's comparable results in all periods presented in this press release represent financial results excluding operations that were acquired or constructed after January 1, 2000 or divested by the Company prior to September 30, 2001.

     Summary of Financial Results

    (In millions, except     Three Months Ended         Nine Months Ended
     per share amounts)         September 30,              September 30,
                             2001          2000*        2001          2000*
    Total Revenues          $583.0        $615.7     $1,879.5      $1,935.7
    Comparable Revenues     $572.3        $557.9     $1,786.8      $1,751.8
    Comparable Revenues,
     Excluding Negative
     Currency
       Translation Effect   $575.6        $557.9     $1,815.0      $1,751.8
    Earnings (Loss) Before
     Non-Recurring Items      $4.6        $(10.8)       $41.4          $2.1
    EBITDA Before
     Non-Recurring Items    $108.4        $109.0       $383.4        $386.5
    Net Income (Loss)         $4.3        $(49.6)       $(6.0)      $(921.7)
    Diluted EPS Before
     Non-Recurring Items      $.02         $(.04)        $.15          $.01
    Diluted Earnings
     (Loss) Per Share         $.02         $(.18)       $(.02)       $(3.38)
    Total Operating
     Free Cash Flow          $47.7         $45.9       $296.9        $177.3

    Recurring Operating
     Free Cash Flow          $45.9         $30.8       $164.4         $80.7
    Total Debt                                       $2,522.7      $3,268.1**

     *  Prior year amounts reflect results from continuing operations for
        comparison purposes and excludes discontinued insurance operations
        disposed of by the Company in 2000.
     ** As of December 31, 2000 and includes reclassification of net deferred
        losses associated with interest rate swaps to conform to current
        period presentations.


     Funeral Segment
     (In millions)          Three Months Ended            Nine Months Ended
                              September 30,                 September 30,

                       2001       2000  % Change    2001       2000   % Change
    Total North
     America Funeral
     Revenues         $267.1     $282.2   (5.4%)    $868.6     $884.7   (1.8%)
    Total
     International
     Funeral Revenues $142.9     $163.3  (12.5%)    $488.6     $553.6  (11.8%)
       Total Funeral
        Revenues      $410.0     $445.5   (8.0%)  $1,357.2   $1,438.3   (5.6%)
    North America
     Funeral Gross
     Profits           $31.3      $47.3  (33.8%)    $150.4     $170.9  (12.0%)
    International
     Funeral Gross
     Profits            $9.6       $7.0   37.9%      $37.3      $38.3   (2.5%)
    Funeral Gross
     Profits           $40.9      $54.3  (24.5%)    $187.7     $209.2  (10.3%)
    North America
     Funeral Gross
     Margin Percentage  11.7%      16.8%              17.3%      19.3%
    International
     Funeral Gross
     Margin
     Percentage          6.7%       4.3%               7.6%       6.9%
       Funeral Gross
        Margin
        Percentage      10.0%      12.2%              13.8%      14.5%
    Comparable North
     America Funeral
     Revenues         $262.5     $268.5   (2.3%)    $844.4     $843.1    0.2%
    Comparable
     International
     Funeral
     Revenues         $139.1     $134.3    3.6%     $437.2     $459.2   (4.8%)
       Comparable
        Funeral
        Revenues      $401.6     $402.8   (0.3%)  $1,281.6   $1,302.3   (1.6%)
    Comparable North
     America Gross
     Profits           $32.2      $48.4  (33.5%)    $151.6     $172.1  (11.9%)
    Comparable
     International
     Funeral Gross
     Profits            $9.3       $3.1  199.0%      $30.1      $24.2   24.4%
       Comparable
        Funeral
        Gross Profits  $41.5      $51.5  (19.4%)    $181.7     $196.3   (7.4%)
    Comparable North
     America Funeral
     Gross Margin
     Percentage         12.3%      18.0%              18.0%      20.4%
    Comparable
     International
     Funeral Gross
     Margin Percentage   6.7%       2.3%               6.9%       5.3%
       Comparable
        Funeral Gross
        Margin
        Percentage      10.3%      12.8%              14.2%      15.1%


Commenting on the funeral results for the third quarter of 2001, SCI President and Chief Operating Officer, Jerald L. Pullins, said:

"The financial results from our North America funeral segment in the third quarter of 2001 compared to the third quarter of 2000 were negatively impacted by reductions in funeral services performed coupled with higher levels of costs. The increase in costs represents the Company's investment in training funeral service personnel in improving customer satisfaction and other revenue enhancement initiatives. These training initiatives are targeted at expanding market share and future revenue growth from our North America funeral operations. Facility costs also increased during the third quarter of 2001 compared to the same period of 2000 as a result of increased utility costs and higher building maintenance costs associated with Company-wide funeral location standards of excellence initiatives in 2001.

The financial results for the third quarter of 2001 from our funeral operations in France and the United Kingdom were strong compared to the same period of 2000 as a result of increases in funeral services performed and the positive impact of various revenue enhancing initiatives. These operations continue to be positively impacted by the expansion of funeral product and service offerings, the increased selection by consumers of packaged funeral plans and an increase in the delivery of monuments in our French funeral operations."

Components of the Company's funeral operating results for the three and nine months ended September 30, 2001 and 2000 are presented in the following table.

                            Three Months Ended            Nine Months Ended
                              September 30,                 September 30,

                       2001       2000   % Change   2001       2000   % Change
    Funeral Services
     Performed:
    Total North
     America          68,084     71,080   (4.2%)   221,410    227,754   (2.8%)
    Comparable North
     America          66,813     67,462   (1.0%)   215,047    216,443   (0.6%)
    Total France      32,168     31,272    2.9%    100,969    105,208   (4.0%)
    Comparable France 32,168     31,272    2.9%    100,969    104,758   (3.6%)
    Total United
     Kingdom          16,222     15,920    1.9%     54,281     57,774   (6.0%)
    Comparable
     United Kingdom   16,151     15,833    2.0%     54,156     55,550   (2.5%)
    Average Revenue
     Per Funeral Service:
    North America     $3,923     $3,886    0.9%     $3,923     $3,865    1.5%
    France, Excluding
     Currency Effect  $1,825     $1,734    5.3%     $1,805     $1,717    5.1%
    United Kingdom,
     Excluding
     Currency Effect  $1,703     $1,646    3.5%     $1,703     $1,657    2.8%

    Percentage of
     Cremation Cases
     Performed in
     North America      36.9%      36.8%              37.0%      36.2%

    Percentage of
     Funeral Services
     Performed in North
     America
     Previously
     Prearranged        29.8%      27.8%              29.8%      28.0%


     Cemetery Segment
     (In millions)          Three Months Ended            Nine Months Ended
                              September 30,                 September 30,

                       2001       2000   % Change    2001      2000   % Change
    Total North
     America Cemetery
     Revenues         $152.8     $141.1    8.3%     $460.7     $402.6   14.4%
    Total
     International
     Cemetery Revenues $20.2      $26.2  (23.0%)     $61.6      $83.4  (26.1%)
       Total Cemetery
        Revenues      $173.0     $167.3    3.4%     $522.3     $486.0    7.5%
    North America
     Cemetery Gross
     Profits           $21.5     $11.1    94.1%      $64.6      $30.4  112.9%
    International
     Cemetery Gross
     Profits            $4.6      $5.9   (22.3%)     $12.1      $19.1  (36.7%)
       Cemetery Gross
        Profits        $26.1     $17.0    53.5%      $76.7      $49.5   55.0%
    North America
     Cemetery Gross
     Margin
     Percentage         14.1%      7.8%               14.0%       7.5%
    International
     Cemetery Gross
     Margin Percentage  22.8%     22.6%               19.7%      23.0%
       Cemetery Gross
        Margin
        Percentage      15.1%     10.2%               14.7%      10.2%
    Comparable North
     America Cemetery
     Revenues         $150.5    $136.9     9.9%     $451.5     $393.0   14.9%
    Comparable
     International
     Cemetery Revenues $20.2     $18.2    11.5%      $53.7      $56.5   (4.9%)
       Comparable
        Cemetery
        Revenues      $170.7    $155.1    10.1%     $505.2     $449.5   12.4%
    Comparable North
     America Cemetery
     Gross Profits     $21.4     $11.3    89.6%      $63.3      $29.6  113.8%
    Comparable
     International
     Cemetery Gross
     Profits            $4.6      $2.7    70.3%       $9.5       $8.9    6.5%
       Comparable
        Cemetery Gross
        Profits        $26.0     $14.0    85.9%      $72.8      $38.5   89.0%
    Comparable North
     America Cemetery
     Gross Margin
     Percentage         14.2%      8.2%               14.0%       7.5%
    Comparable
     International
     Cemetery Gross
     Margin Percentage  22.8%     14.9%               17.7%      15.8%
       Comparable
        Cemetery Gross
        Margin
        Percentage      15.2%      9.0%               14.4%       8.6%

Commenting on the cemetery results for the third quarter of 2001, SCI President and Chief Operating Officer, Jerald L. Pullins, said:

"As part of our ongoing cash flow initiatives, we continued in the third quarter of 2001 to concentrate on sales of cemetery property and cemetery merchandise that can be delivered, as defined by applicable state trusting laws. These actions have enhanced the cash flows of the North America cemetery operations and have also generally allowed for revenue recognition under the Company's cemetery accounting policies.

Despite improved levels of cash flows in the third quarter of 2001 compared to the same period of 2000, revenues and gross profits in our North America cemetery operations were negatively impacted by reduced preneed cemetery sales activities throughout North America primarily as a result of the tragedies of September 11. Across our North America cemetery operations, the Company experienced significantly reduced levels of preneed cemetery sales through the end of the third quarter of 2001 as a result of the disasters. The Company also ceased all preneed cemetery solicitation activities for a week following September 11. Our North America cemetery financial results were favorably impacted by revenues and related gross profits from transactions recognized in the third quarter of 2001 resulting from our ongoing cash flow initiative to review remaining obligations for delivery of cemetery merchandise. This review process has resulted in the collection of funds due to the Company from cemetery trusts through the identification of previously delivered cemetery merchandise. The Company generally recognizes revenue based on evidence of the delivery of such cemetery merchandise while deferred revenue is recorded related to the merchandise until the appropriate criteria for revenue recognition has been met. The above two events had the general effect of substantially offsetting each other in the financial performance of our North America cemetery operations in the third quarter of 2001."

The decrease in the international cemetery financial performance in the third quarter of 2001 compared to the same period of 2000 was due to the Company's sale of an eighty percent interest in the Company's Australian operations in May 2001. The Company also experienced reduced preneed cemetery sales activities in the third quarter of 2001 in its South America cemetery operations as a result of the current instability of the economy in Argentina.

Other Income and Expenses

Other income was $5.0 million in the third quarter of 2001 compared to $6.1 million in the same period of 2000. The majority of other income in the third quarter of 2001 consisted of cash received from a cash override agreement the Company has with its divested insurance subsidiary related to the sale of prearranged funeral contracts. Other income in the third quarter of 2000 primarily includes interest income from various cash investments.

For the three and nine months ended September 30, 2001, the Company's earnings before non-recurring items include gains from dispositions of $5.5 million and $11.5 million, respectively, not associated with certain asset dispositions in which the Company recognized impairment charges in previous periods.

General and administrative expenses were $17.1 million for the third quarter of 2001 compared to $20.2 million for the same period of 2000. The 15.5% decrease in general and administrative expenses primarily relates to the reduction in costs after the Company completed the implementation of its North America proprietary point of sale systems in 2000.

Interest expense was $49.4 million for the three months ended September 30, 2001, compared to $73.3 million for the same period of 2000. The 32.5% decrease in interest expense related to a reduction of approximately $895 million in the Company's average debt balance, coupled with the effect of lower interest rates in the third quarter of 2001 compared to the third quarter of 2000.

     Operating Free Cash Flow
                                                 Nine Months Ended
                                                    September 30,
                                         2001           2000      Improvement
    Total Operating Free Cash Flow      $296.9         $177.3        $119.6
    Recurring Operating Free Cash Flow  $164.4          $80.7         $83.7

As previously mentioned, the Company's initiatives to increase operating free cash flow continue to exceed expectations. Included in total operating free cash flow of $296.9 million for the nine months ended September 30, 2001 is $132.5 million of net non-recurring funds comprised of an approximate $116.0 million income tax refund received in the first quarter of 2001 and the collection of receivables from funeral and cemetery trust funds of approximately $41.1 million, offset by non-recurring payments of approximately $27.9 million related to Company's curtailed pension plans and non-recurring capital expenditures. The improvement of $83.7 million in recurring operating free cash flow for the nine months ended September 30, 2001 compared to the same period of 2000 is primarily a result of (i) increases in the Company's cash flows from operating activities primarily as a result of the Company's working capital improvement initiatives, (ii) reductions in capital expenditure levels, (iii) increases in funds received as a result of the Company's surety bonding programs for prearranged funeral and preneed cemetery activities, (iv) decreases in payments of cash interest, and (v) reduction in cash taxes paid.

     Debt Reduction

                        September 30, 2001   December 31, 2000  Debt Reduction
    Current Maturities
     of Long-Term Debt          $208.8             $176.8
    Long-Term Debt            $2,313.9           $3,091.3
       Total Debt             $2,522.7           $3,268.1            $745.4

The Company's reduction of debt continued in the first nine months of 2001 with total debt decreasing $745.4 million. During the third quarter of 2001, the Company reduced total debt by $253.7 million. Funds available to achieve this debt reduction in the third quarter of 2001 were primarily generated from (i) the Company's total operating free cash flow, (ii) the completion of the joint venture of the Company's operations in Spain and Portugal, (iii) proceeds from sale of the Company's operations in Norway, the Netherlands and Belgium, (iv) proceeds from the sale of the Company's equity interest in a Canadian funeral and cemetery company, and (v) proceeds from sales of certain non-strategic funeral and cemetery operations in North America.

Non-Recurring Items

In the third quarter of 2001, the Company recorded net non-recurring charges of $6.2 million. Included in the net non-recurring charges are losses recognized from the dispositions of the Company's Norwegian, Belgian and Dutch operations netted against changes in estimates from the disposition of an equity interest in a Canadian funeral and cemetery company and changes in estimates of expected losses previously recorded by the Company related to dispositions of certain non-strategic funeral and cemetery operations in North America.

For the nine months ended September 30, 2001, the Company recorded non- cash charges of $51.2 million related to the completion of the joint venture of the Company's Australian operations in addition to the net charges recognized in the third quarter of 2001 described above.

The Company reported restructuring and non-recurring charges of $13.3 million in the nine months ended September 30, 2000. These charges were related to changes in estimates of certain items included in the Company's fourth quarter 1999 restructuring charge.

The Company recognized extraordinary gains on the early extinguishment of debt (net of tax) of $4.7 million and $22.0 million in the nine months ended September 30, 2001 and 2000, respectively.

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 the Company believes are reasonable; however, many important factors could cause the Company's 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, or on behalf of, the Company. Important factors which could cause actual results of the Company to differ materially from those in forward-looking statements include, among others, the following:

     1) 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 the Company, particularly, but not
        limited to, levels of interest expense and negative currency
        translation effects.
     2) Changes in credit relationships impacting the availability of credit
        and the general availability of credit in the marketplace.
     3) The Company's ability to successfully implement its strategic plan as
        defined in the Company's Form 10-K for the year ended December 31,
        2000, including:
        -- the continuation of cost reduction initiatives,
        -- the continuation of actions to improve operating free cash flow,
           including the sale of certain funeral and cemetery operations,
        -- the continuation of debt reduction initiatives,
        -- the implementation of strategic revenue and marketing initiatives
           resulting in increased volume through its existing facilities, and
        -- the interest of third parties to enter into and consummate
           alliances and joint ventures with the Company.
     4) Changes in consumer demand and/or pricing for the Company's products
        and services caused by several factors, such as changes in local death
        rates, cremation rates, competitive pressures and local economic
        conditions.
     5) Changes in domestic and international political and/or regulatory
        environments in which the Company operates, including potential
        changes in tax and accounting policies.
     6) The Company's ability to successfully exploit its substantial
        purchasing power with certain of the Company's vendors.
     7) The outcomes of pending class action lawsuits against the Company
        involving alleged violations of securities laws.

For further information on these and other risks and uncertainties, see the Company's Securities and Exchange Commission filings, including the Company's 2000 Annual Report on Form 10-K. The Company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the Company, whether as a result of new information, future events or otherwise.

As of September 30, 2001, the Company and its affiliates operated 3,188 funeral service locations, 485 cemeteries and 178 crematoria and provides funeral and cemetery services in 12 countries on four continents.

     For additional information contact:

     Investor Relations:
     Debbie E. Fisher-Director/Investor Relations          Tel: (713) 525-9088
     Eric D. Tanzberger-Vice President/Investor Relations  Tel: (713) 525-7768
                        Assistant Corporate Controller
     Media Relations:
     Terry Hemeyer-Managing Director/Corp. Communications  Tel: (713) 525-5497

Other Service Corporation International information and news releases are available through SCI's corporate website at: http://www.sci-corp.com .

                      SERVICE CORPORATION INTERNATIONAL
                     CONSOLIDATED STATEMENT OF OPERATIONS

                            Three Months Ended         Nine Months Ended
                                September 30,             September 30,
    (In thousands, except
     per share amounts)

                             2001          2000         2001         2000
    Revenues:
       Funeral            $409,960      $445,520   $1,357,148    $1,438,252
       Cemetery            173,019       167,300      522,318       485,995
       Other services          ---         2,883          ---        11,494
                           582,979       615,703    1,879,466     1,935,741
    Gross profit:
       Funeral              40,939        54,249      187,736       209,197
       Cemetery             26,080        16,992       76,741        49,503
       Other services          ---           621          ---         2,295
                            67,019        71,862      264,477       260,995

    General and
     administrative
     expenses              (17,049)      (20,185)     (53,451)      (60,031)
    Restructuring and
     non-recurring charges  (6,185)          ---      (57,431)      (13,281)
    Operating income        43,785        51,677      153,595       187,683

    Interest expense       (49,432)      (73,256)    (164,390)     (216,370)
    Other income             4,967         6,068       12,648        11,902
    Gains from dispositions  5,543           141       11,543         5,759
                           (38,922)      (67,047)    (140,199)     (198,709)
    Income (loss) from
     continuing operations
     before income taxes,
     extraordinary gains
     and cumulative effect
     of accounting change    4,863       (15,370)      13,396       (11,026)
    Income tax (expense)
     benefit                  (681)        4,524      (16,551)        4,674
    Income (loss) from
     continuing operations
     before extraordinary
     gains and cumulative
     effect of accounting
     change                  4,182       (10,846)      (3,155)       (6,352)
    Income from
     discontinued
     operations (net of
     income taxes of
     $3,257 and ($10,825)      ---         4,953          ---        15,716
    Loss on disposal
     of discontinued
     operations (net of
     income taxes of
     ($73,839)                 ---       (43,733)         ---       (43,733)
    Extraordinary gains on
     early extinguishments
     of debt (net of income
     taxes of $63, $3,015
     and $12,630,
     respectively)              99           ---        4,717        21,973
    Cumulative effect of
     accounting change (net
     of income taxes of
     $5,318 and $522,491,
     respectively)             ---           ---       (7,601)     (909,315)
    Net income (loss)       $4,281     $ (49,626)     $(6,039)   $ (921,711)

    Earnings per share:
       Basic:
          Income (loss)
           from continuing
           operations before
           non-recurring
           items              $.02         $(.04)        $.15          $.01
          Income from
           discontinued
           operations          ---           .02          ---           .06

          Restructuring and
           non-recurring
           charges            (.00)          ---         (.16)         (.03)
          Loss on disposal
           of discontinued
           operations          ---          (.16)         ---          (.16)
          Extraordinary gains
           on early
           extinguishments
           of debt             .00           ---          .02           .08
          Cumulative effect
           of accounting
           change              ---           ---         (.03)        (3.34)
          Net income (loss)   $.02         $(.18)      $ (.02)       $(3.38)
       Diluted:
          Income (loss) from
           continuing
           operations before
           non-recurring
           items              $.02         $(.04)        $.15          $.01
          Income from
           discontinued
           operations          ---           .02          ---           .06
          Restructuring and
           non-recurring
           charges            (.00)          ---         (.16)         (.03)
          Loss on disposal
           of discontinued
           operations          ---          (.16)         ---          (.16)
          Extraordinary gains
           on early
           extinguishments
           of debt             .00           ---          .02           .08
         Cumulative effect
          of accounting change ---           ---         (.03)        (3.34)
         Net income (loss)    $.02         $(.18)      $ (.02)       $(3.38)
    Basic weighted average
     number of shares      290,258       272,210      282,916       272,122
    Diluted weighted
     average number
     of shares             293,763       272,210      282,916       272,122


     Geographic segment information
     was as follows:
     (In thousands, except funeral
     services performed and
     number of locations)

                     North             Europe                  Other
                    America                                   Foreign

     Revenues from
     continuing operations:
     Three months ended
     September 30:

     2001
       Comparable   $412,949          $141,945                $17,394
       Total        $419,905          $146,761                $16,313

     2000
       Comparable   $405,474          $135,805                $16,577
       Total        $426,166          $150,965                $38,572

     Nine months ended
     September 30:
     2001
       Comparable $1,295,896          $444,233                $46,633
       Total      $1,329,282          $483,304                $66,880

     2000
       Comparable $1,236,138          $466,382                $49,321
       Total      $1,298,773          $522,889               $114,079


     Gross profit and margin
     percentage from
     continuing operations:

    Three months ended
     September 30:
     2001
       Comparable    $53,569   13.0%   $10,584    7.5%         $3,382   19.4%
       Total         $52,800   12.6%   $11,153    7.6%         $3,066   18.8%

     2000
       Comparable    $59,652   14.7%    $2,806    2.1%         $3,029   18.3%
       Total         $58,964   13.8%    $4,489    3.0%         $8,409   21.8%

    Nine months ended
     September 30:
     2001
       Comparable   $214,899   16.6%   $32,477    7.3%         $7,126   15.3%
       Total        $215,002   16.2%   $40,952    8.5%         $8,523   12.7%

     2000
       Comparable   $201,695   16.3%   $24,491    5.3%         $8,623   17.5%
       Total        $203,530   15.7%   $35,988    6.9%        $21,477   18.8%


     Funeral services performed:
     Three months ended
     September 30:
     2001
       Comparable     66,813            51,198                  1,055
       Total          68,084            53,621                  1,055

     2000
       Comparable     67,462            50,013                  1,092
       Total          71,080            58,218                  8,592

     Nine months ended
     September 30:
     2001
       Comparable    215,047           164,180                  3,120
       Total         221,410           184,725                 10,978
     2000
       Comparable    216,443           170,236                  3,206
       Total         227,754           200,454                 23,464

     Number of locations
     at September 30:
     2001              2,080             1,745                     26
     2000              2,332             2,016                    185

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SOURCE Service Corporation International
Web site: http: //www.sci-corp.com
Company News On-Call: http: //www.prnewswire.com/comp/104532.html
CONTACT: investor relations, Debbie E. Fisher, Director - Investor Relations, +1-713-525-9088, or Eric D. Tanzberger, Vice President - Investor Relations, Assistant Corporate Controller, +1-713-525-7768, or media relations, Terry Hemeyer, Managing Director - Corp. Communications, +1-713-525-5497, all of Service Corporation International