Service Corporation International · NYSE:SCI
Service Corporation International — Investor Presentation (June 2024)
24 slides from Service Corporation International's investor presentation, June 2024
Slide 1: Investor Presentation
SERVICE CORPORATION INTERNATIONAL Investor Presentation JUNE 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements in this presentation that are not historical facts are forward-looking statements. You can generally identify our forward-lookin
Slide 3: Our strategy has been effective and remains intact
Our strategy has been effective and remains intact Grow Revenue Leverage Scale Deploy Capital 3
Slide 4: Our financial position affords us financial flexibility, which allows us to be opportunistic
Our financial position affords us financial flexibility, which allows us to be opportunistic DEBT MATURITY PROFILE June 30, 2024 Financial flexibility to invest in our associates and our businesses, $ in millions and pursue strategic TERM LOAN AMORTIZATION PAYMENT REVOLVER MATURITIES acquisitions an
Slide 5: We have enhanced shareholder returns through dividends and share repurchases
We have enhanced shareholder returns through dividends and share repurchases VALUE RETURNED TO SHAREHOLDERS SHARES OUTSTANDING ~$7.1B 57% 16% CAGR DIVIDENDS PER SHARE Value returned Reduction in outstanding Dividends per share 350,000 shares since mid-2004 2005-2024 $1.40 to shareholders through div
Slide 6: Our execution has translated into superior total shareholder returns over the long term
Our execution has translated into superior total shareholder returns over the long term TOTAL SHAREHOLDER RETURN June 30, 2024 101% 306% 235% 65% 63% 139% 39% 40% 33% 96% SCI S&P 500 14% S&P MIDCAP 400 RUSSELL 2000 -8% 3 YEAR 5 YEAR 10 YEAR Annualized Return 12% 10% 4% -3% 11% 15% 10% 7% 15% 13% 9%
Slide 7: Sustainable value creation foundational in everything we do
Sustainable value creation foundational in everything we do INVESTING IN OUR COMMUNITIES Our most recent Sustainability SUPPORTING OUR OPERATING Report is available at sci-corp.com 25,000 ASSOCIATES WITH PRINCIPLE Delivering service excellence and supporting the Supporting the personal communities w
Slide 8: Service Corporation International At a Glance
Service Corporation International At a Glance 2023 SNAPSHOT OTHER We are the largest CONSOLIDATORS Revenues company in the highly $4.1B ~9% Employees fragmented deathcare SCI $4.1B REVENUES 25K space with an approximate ~16% Customers Served ~16% revenue market ~700K share in the U.S. & Canada ~75%
Slide 9: Our scale and footprint provide a competitive advantage
Our scale and Canada footprint provide FUNERAL CEMETERY a competitive 163 15 advantage • National Brand • Leading technologies United States • Supply chain cost advantages FUNERAL CEMETERY • Premier preneed sales program • Network optimization/ 1,327 477 back-office efficiencies • Leading cemeteries
Slide 10: Long-Term Power of SCI's Growth Model
Long-Term Power of SCI’s Growth Model
Slide 11: Our long-term earnings growth framework remains sound
ORGANIC GROWTH Our long-term 5%–7% FUNERAL earnings growth Modest revenue growth driven by increases in volume and sales average framework remains supporting stable margins CEMETERY sound Mid-single digit % preneed sales growth supporting increasing margins 8%–12% CAPITAL DEPLOYMENT 3%–5% Reinvestin
Slide 12: New higher earnings base reflects post-COVID learnings and efficiencies
New higher earnings base reflects post-COVID learnings and efficiencies ADJUSTED EARNINGS PER SHARE Given lower than We expect 2024 to anticipated volume in Q2, we now expect to end the become a new base year in the lower half of our year for future guidance range. $4.57 earnings growth in Guidance
Slide 13: There are 4 key pillars to reach even greater potential growth
There are 4 key pillars to reach even greater potential growth Marketing, Sales & Enhanced Preneed Demographic Cemetery Growth Capital Backlog Tailwinds Inventory Opportunities Impact Impact 13
Slide 14: Favorable conditions exist for future volume growth
TA I L W I N D S Favorable conditions exist for future volume growth MAIN DRIVERS AGING EXCESS DEATHS PRENEED DRIVING DEMOGRAPHICS INCLUDING COVID MARKET SHARE These drivers could easily increase our current assumptions for funeral volume and cemetery atneed production 14
Slide 15: Initiatives underway supporting even further production growth
I N I T I AT I V E S Initiatives underway supporting even further production growth MAIN DRIVERS QUALITY & QUANTITY IMPROVED SALES CEMETERY OF MARKETING - EFFECTIVENESS & INVENTORY DRIVEN LEADS EFFICIENCIES OPPORTUNITIES These drivers could easily increase our current assumptions for cemetery prenee
Slide 16: Our growth capital continues to add strength to our earnings growth framework
DEPLOYMENT Our growth capital continues to add strength to our earnings growth framework MAIN DRIVERS ACQUISITIONS NEW BUILDS OTHER GROWTH CAPITAL With continued deployment like recent years, we are able to support higher earnings growth potential 16
Slide 17: Our preneed strategy and backlog are structured to drive earnings and cash flow growth
STRENGTH Our preneed strategy and backlog are structured to drive earnings and cash flow growth MAIN DRIVERS HIGHER - QUALITY TRUST INVESTMENT INCREASING CONTRACT SALES RETURNS SUPPORTING CEMETERY BACKLOG PRODUCTION FUTURE GROWTH RECOGNITION Strength in our backlog could easily drive increases in ou
Slide 18: Key Takeaways
Key Takeaways Strong business model with a sustainable growth platform Significant and consistent cash flow continues to grow the company and enhance shareholder value Industry leaders in innovation and technology Preneed model and backlog strength differentiates us Potential for incremental growth
Slide 19: For additional information
For additional information: Allie O’Connor | Trey Bocage InvestorRelations@SCI-US.com SERVICE CORPORATION INTERNATIONAL
Slide 20: Appendix
APPENDIX 20
Slide 21: Definitions: Non-GAAP Financial Measures
Definitions: Non-GAAP Financial Measures This information should not be considered in isolation or as a substitute for related GAAP measures. Additionally, these measures as calculated by the Company may not be comparable to similarly titled measures used by other companies. ADJUSTED EPS OR DILUTED
Slide 22: Adjusted EPS – 2023 to 2019
Adjusted EPS – 2023 to 2019 The 2018 change in certain tax reserves and others is primarily impacted by the reduction in uncertain tax reserves due to the expiration of statutes of limitations for the Internal Revenue Service to assess tax on tax years prior to 2015. On December 22, 2017, the U.S. g
Slide 23: Adjusted cash flow from operations and free cash flow – 2023 to 2019
Adjusted cash flow from operations and free cash flow – 2023 to 2019 23
Slide 24: Financial outlook for Fiscal 2024
Financial outlook for Fiscal 2024 GUIDANCE In Millions, except Adjusted EPS 2024 Low Midpoint High Diluted earnings per share excluding special items $3.50 $3.65 $3.80 Adjusted EPS Net cash provided by operating activities excluding special items and cash taxes $935 $960 $985 Cash taxes expected in
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