Stewart Enterprises Reports 13 Percent Increase In Earnings Per Share And 33 Percent Increase On An Adjusted Basis For First Quarter Of 2011

NEW ORLEANS, March 9, 2011 (GLOBE NEWSWIRE) -- Stewart Enterprises, Inc. (Nasdaq:STEI) reported today its results for the first quarter ended January 31, 2011.

The Company reported a 13 percent increase in earnings per share to $.09 per diluted share for the quarter ended January 31, 2011, compared to $.08 per diluted share for the quarter ended January 31, 2010. In addition, after adjusting net earnings for certain items, as discussed in the table "Reconciliation of Non-GAAP Financial Measures," the Company reported a 33 percent increase in adjusted earnings per share to $.12 per diluted share for the quarter ended January 31, 2011, compared to $.09 per diluted share for the quarter ended January 31, 2010.

Thomas J. Crawford, President and Chief Executive Officer, stated, "We are pleased with our operating results for the first quarter of 2011 in which the Company generated the highest quarterly revenue, adjusted net earnings and adjusted earnings per share since fiscal year 2008. We are particularly encouraged by the performance of our cemetery operations for the quarter as cemetery property sales grew by 10 percent and gross profit increased 33 percent compared to the first quarter of 2010. On the funeral side, we experienced a 1.1 percent increase in same-store calls and a 1.6 percent increase in average revenue per funeral service. These increases contributed to approximately $74 million in funeral revenue and more than $20 million in funeral gross profit for the quarter, which is the highest quarterly funeral revenue and funeral gross profit generated in nearly three years."

Mr. Crawford continued, "In addition to the positive operating and financial performance for the quarter, our balance sheet and liquidity position remain strong with $64 million in cash on hand and no amounts borrowed on our credit facility. We generated $15 million in operating cash flow during the first quarter of 2011 compared to $3 million of operating cash flow in the first quarter of 2010, which is the highest first quarter operating cash flow in four years. We have also seen continued success in our trust performance, with a 15 percent annual return in our merchandise and services trusts and a 12 percent annual return in our perpetual care trusts over the last 12 months. Since this time last year, the fair market value of our trust portfolio increased by $68 million, including a $21 million increase since October. The improvement in the fair market value of the trust portfolio will increase the future benefit to be realized on the backlog of our contracts. Finally, during the first quarter we repurchased 1.3 million shares of the Company's common stock for $8.1 million and returned $2.7 million to our shareholders through the payment of dividends."