Stewart Enterprises Reports Results For Third Quarter 2010

NEW ORLEANS, Sept. 8, 2010 (GLOBE NEWSWIRE) -- Stewart Enterprises, Inc. (Nasdaq:STEI) reported today its results for the third quarter ended July 31, 2010.

The Company reported net earnings for the quarter ended July 31, 2010 of $6.0 million, or $.06 per diluted share, compared to net earnings of $6.1 million, or $.07 per diluted share, for the quarter ended July 31, 2009. After adjusting net earnings for certain items as discussed in the table "Reconciliation of Non-GAAP Financial Measures," the Company reported adjusted earnings of $6.3 million, or $.07 per diluted share, for the quarter ended July 31, 2010, compared to adjusted earnings of $4.3 million, or $.05 per diluted share, for the quarter ended July 31, 2009.

Thomas J. Crawford, President and Chief Executive Officer, stated, "We are pleased with our third quarter results as revenue grew by 4 percent, gross profit dollars by 15 percent, adjusted earnings by 47 percent and adjusted earnings per share by 40 percent on a comparable basis with last year. Additionally, we are encouraged by our cemetery operations for the quarter as property sales grew by 9.5 percent, the highest cemetery property sales in the last eight quarters. We also increased our merchandise deliveries by 11 percent primarily due to our 'Best in Class' and continuous improvement initiatives. The improvement in cemetery property sales and merchandise deliveries contributed to a 57 percent increase in cemetery gross profit dollars and a 430 basis point increase in cemetery gross profit margin. In our funeral segment, we continued to increase our average revenue per traditional funeral and cremation service and maintained our funeral gross profit."

Mr. Crawford continued, "In addition to the positive financial performance for the quarter, our operating cash flow remains solid at $22.7 million and we returned $2.7 million to our shareholders through dividends. We are also pleased with actions taken to further strengthen our balance sheet. During the third quarter, we repurchased $20 million aggregate principal amount of our senior convertible notes in the open market, and since quarter-end we have repurchased an additional $14.9 million of our senior convertible notes. In the last year and a half, the Company has retired 36 percent, or $118.5 million, of our total outstanding debt, resulting in our lowest net debt in more than 15 years. We have purchased the senior convertible notes at $26.5 million less than the face value and have achieved approximately $3.8 million of annual cash interest savings. We appreciate the dedication and commitment of our entire team to improve revenue performance, especially cemetery property sales, to further manage our controllable costs and to make the Company stronger and more secure by improving our capital structure."