|Service Corporation International Announces Officers Stock Sales|
HOUSTON, Feb. 2 /PRNewswire/ -- Service Corporation International (NYSE: SRV) (SCI), the world's largest funeral and cemetery company, announced today that four top executives have sold an aggregate of 2,350,000 shares of stock in open market transactions. The executives are chairman and chief executive officer R.L. Waltrip, president and chief operating officer L. William Heiligbrodt, and executive vice presidents W. Blair Waltrip and John W. Morrow, Jr. The shares sold were acquired through the exercise of stock options under SCI's 1993 Long-Term Incentive Stock Option Plan (the "1993 Plan") which became exercisable in November 1997.
Mr. Waltrip stated, "We are delighted to be a part of the remarkable success that SCI and its shareholders have enjoyed and we remain confident in the future success of SCI. This action is being taken to pay taxes and provide some liquidity for personal purposes." Mr. Heiligbrodt added, "A requirement for the exercise of these options was that the market price of SCI double within a four-year period. This has more than been accomplished as the stock price has more than tripled. After these transactions, I and the other officers intend to continue to hold substantial ownership stakes in the company and be an integral part of its future. These continued holdings include personal holdings, exercisable options and options not currently exercisable which become exercisable based on price targets that range between $40 and $65 per share."
Options to acquire the stock sold were granted under the 1993 Plan in November of 1993 when SCI stock was trading at $12.87 per share (on a split adjusted basis). By comparison the stock price at close of trading on February 2, 1998 was $39 per share. Each executive used existing directly owned shares in lieu of cash to pay the exercise price. This resulted in an exercise of an aggregate of 3,494,442 options to acquire shares of which the executives received and sold 2,350,000 shares. The shares were sold pursuant to Securities and Exchange Commission Rule 144. The attached table contains additional details on shares exercised, shares sold, and remaining holdings for each executive.
As of December 31, 1997, SCI operated 3,127 funeral service locations,
392 cemeteries and 166 crematoria. SCI provides funeral and cemetery services
in 17 countries on five continents. SCI's stock is traded on the New York
Stock Exchange. The company's ticker symbol is SRV.
SUMMARY OF SHARE TRANSACTION AND REMAINING HOLDINGS January 2, 1998 R.L. L. William W. Blair John W. Waltrip Heiligbrodt Waltrip Morrow Total SUMMARY OF CURRENT TRANSACTION Shares sold 1,000,000 650,000 450,000 250,000 2,350,000 Option shares exercised 1,486,997 966,548 669,148 371,749 3,494,442 SUMMARY OF REMAINING SHARE HOLDINGS Directly owned shares (A) 606,261 576,364 752,134 177,972 2,112,731 Options currently exercisable (B) 2,015,753 1,133,452 530,852 513,251 4,193,308 Options not currently exercisable (A and C) 1,602,750 1,404,500 723,500 421,500 4,152,250 Total direct share and option holdings 4,224,764 3,114,316 2,006,486 1,112,723 10,458,289 (A) The number of directly owned shares and options not currently exercisable has not changed as a result of this transaction. The directly owned shares do not include shares held by certain "trusts or other family members, ownership of which shares may be attributable to the officers" under SEC rules. (B) The number of options currently exercisable has been reduced by the number of option shares exercised in this transaction. (C) 220,000 of Mr. R.L. Waltrip's options not currently exercisable will become exercisable within the" next 60 days.
SOURCE Service Corporation International