Service Corporation International (SCI)
Bank of America Merrill Lynch Health Care Conference Call
May 15, 2012 8:00 pm ET
Thomas L. Ryan – President and Chief Executive Officer
Eric D. Tanzberger – Senior Vice President, Chief Financial Officer, and Treasurer
Robert Willoughby – Bank of America/Merrill Lynch
[Call Starts Abruptly]
The leading death care services provider. We toured its flagship property here in Las Vegas yesterday and are impressed. They just bought the dominant provider in this market positioned to grow ahead of the market in the coming years. Here to present for the Company is Tom Ryan. He is President and Chief Executive Officer. He is joined on the podium by Eric Tanzberger who is the Chief Financial Officer.
Thomas L. Ryan
Thank you, Bob, and thank you Bank of America for inviting us back again this year. For those of you listening on the call, we’ll direct you to the appropriate slides. I’ll take you straight to slide four. SCI at a glance. This just gives you an idea of the industry itself and kind of our position in the industry. We are the largest, as Bob mentioned, in North America in the funeral and cemetery business. We’ve got just over 1800 locations and from a market cap perspective are just about $2.5 billion.
Translated into revenues, you can see we’re about a 13% share as we can define it in North America, which is about $2.3 billion in revenue. One of the attributes about this industry that I think is compiling is the predictability of it. And one of the reasons it’s predictable is our ability to deferred revenues. These are very sales oriented organizations in our industry and we now approach $7 billion in backlog, and this represents just over three times our annual revenues. So again a predictable revenue stream, very predictable cash flow stream, and these are primarily supported by cash in state regulated trust funds that we have management oversight for.