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SCI Delivers 11% EPS Growth in Q2 on Solid Funeral Segment Performance
Service Corporation International reported adjusted earnings per share of 88 cents for the second quarter compared with 79 cents in the year-ago period – an 11% increase.
Tom Ryan, CEO and chairman, noted on a conference call with analysts that the company saw impressive increases in funeral revenue and gross profit, partially offset by slightly lower cemetery gross profit and higher corporate, general and administrative expenses, which when combined, resulted in 5 cents of earnings per share growth from operating income.
“Below the line, the favorable impact of a lower share count and a slightly lower net interest expense resulted in an additional 4 cents earnings per share growth,” he said. “Total comparable funeral revenue increased over $15 million or about 3% over the prior year quarter, primarily due to solid growth from both core revenue and core general agency revenue. Comparable core funeral revenues increased by $8 million or about 2%, primarily due to a healthy 3.3% growth in the core average revenue per service, which was modestly impacted by a 20-basis point increase in the core cremation rate. The favorable impact from the core average growth was partially offset by a 1.5% decrease in core funeral services performed.”
Other highlights included:
- Revenue grew $31.4 million over the second quarter of 2024.
- Cemetery preneed sales production increased 5.3% in the current quarter.
- Net cash provided by operating activities was $166.5 million in the second quarter of 2025 compared to $196.9 million in the prior year quarter, affected by an expected increase in cash taxes paid of $84.3 million.
Ryan also provided an update on SCI’s partnership with Global Atlantic, noting that core preneed funeral sales production decreased by $18 million or 7%, primarily due to the transition to its new provider.
“We anticipate comparable core preneed sales production growth in the back half of 2025,” he said. “Non-funeral home preneed sales production decreased $10 million or 14% as SCI Direct transitions from the sale of trust to insurance- funded preneed contracts. This transition has required many of our sales counselors in certain states to go through extensive training, obtain insurance licenses and change the payment terms for customers financing their preneed, all of which contributes to a temporary reduction in the number of contracts written. As of today, we have made the transition in markets that represent 95% of our production.”
Eric Tanzberger, the company’s chief financial officer, gave an update on the deployment of capital, noting that SCI invested $100 million in the quarter into existing locations, cemetery development, new builds, business acquisitions, and real estate purchases. “So, breaking down this spend, we invested $69 million of maintenance capital, primarily into our current funeral homes and cemeteries, which was in line with our expectations,” he said. “Thirty-five million of this was allocated to highly profitable cemetery development projects, $29 million into current funeral and cemetery locations and $5 million into digital investments and some corporate spend. We also invested $18 million of growth capital in the quarter to purchase real estate and for the construction of new funeral homes and cemeteries. Finally, we invested $13 million into business acquisitions in the quarter.”
He noted that SCI remains optimistic about its acquisition pipeline “and we anticipate achieving our $75 million to $125 million acquisition investment target for 2025 for the full year.”
Asked about a slower than anticipated increase in SCI’s cremation rate, Ryan noted, “When you get to cremation rates in some of these larger metropolitan markets, they’re already pretty high. So, where you have a lot of volume, the cremation rate is probably starting to stall a bit because it’s gotten to that level. And so, the cremation changes are happening in probably more rural markets and places like that.”
Two Attorneys Fired Amid Ongoing Turmoil at Texas Funeral Commission
Two staff attorneys at the Texas Funeral Service Commission say they were fired after expressing support for the agency’s former executive director and his accusations of unethical conduct by the commission’s leadership, according to a report in the KERA News – NPR for North Texas.
Christopher Burnett and Sarah Sanders, along with Deputy Director Laura Rhinehart, were all dismissed July 21. All three had been hired by Scott Bingaman, who was removed from his role in June.
Following his firing, Bingaman filed a lawsuit against the commission, alleging retaliation under the Texas Whistleblower Act and violations of the Open Meetings Act. The commission, in turn, cited leadership issues, legal missteps and poor communication as reasons for his dismissal.
The internal conflict comes as the TFSC faces public scrutiny, including a lawsuit from a North Texas mosque after the agency attempted to halt its funeral practices.
After their firing, the two attorneys received cease-and-desist letters from Texas Attorney General Ken Paxton’s office, apparently as a result of their correspondence with the media.
The letters stated that the attorney general’s office along with the TFSC had learned about their communications with the media, which breaches their “legal and ethical obligations to TFSC regarding its confidential and privileged information.”
Carriage Services Says It’s Back in Acquisition Mode
Carriage Services reported huge news during its recent quarterly conference call: It’s back in acquisition mode.
For the second quarter, the company reported adjusted diluted earnings per share of $1.70 compared with $1.38 in the year-ago period, with total revenue of $209.2 million compared with $205.8 million.
Carlos Quezada, CEO and vice chairman, noted on a conference call with Wall Street analysts that the company plans to close on multiple acquisitions in the third quarter.
“After two years of disciplined capital management and more than $100 million paid to reduce our debt, we are pleased to share that we’re back to growth mode, and we’re under contract to acquire new businesses, which we anticipate will close this quarter subject to customary regulatory approvals,” he said. “Combined, these premier locations serve more than 2,600 families and generated more than $15 million in revenue last year. We are excited to return to our long-term strategy of adding shareholder value through high quality acquisitions, and we look forward to providing more details once these transactions formally close in the coming weeks. With these new acquisitions and after accounting for the divestitures of certain non-core assets that closed in the first quarter and others expected to close in the third quarter of this year, we’re updating our full year guidance.”
Read more about the company’s results, updated guidance and comeback.
Fire at Funeral Home in Washington State Investigated as Arson
Russ Weeks, co-owner of Columbia Funeral Home and Crematory in Seattle’s Columbia City neighborhood, was overcome with shock and fear as he watched video footage showing someone setting fire to his business early Wednesday morning, according to a report in the Seattle Times.
His immediate concern wasn’t about the building itself or the cause of the blaze — it was whether the remains of the deceased inside had been harmed.
The well-known funeral home, located at the corner of Rainier Avenue South and South Alaska Street, was one of two buildings that were intentionally set on fire within an hour, according to Seattle police and fire officials. The two incidents occurred roughly a mile apart in the Mount Baker and Columbia City neighborhoods.
Fortunately, no injuries were reported in either fire. The Seattle Fire Department extinguished both blazes by 5:30 a.m.
Police are treating both incidents as arson. The second fire occurred at a home under construction near 33rd Avenue South and South Hanford Street.
Weeks said he found out about the fire around 6:30 a.m. after receiving a call from the funeral home’s manager, who urged him to turn on the news. On his television, he saw the unthinkable: traffic camera footage showing someone pacing in front of the funeral home, then bending down just before a sudden flash of light — suggesting the fire had been ignited. The person was seen running from the scene shortly afterward.
While the fire damaged the building’s offices, chapel, restrooms, and reception area, it did not reach the rooms where the decedents were kept. The crematory, located within the Columbia City facility, was unaffected by the fire and will continue to operate. Services will be held at nearby churches and funeral homes while repairs are underway.
Colorado Funeral Home Owner Admits $900K Fraud
A Colorado funeral home owner has admitted in federal court to defrauding customers and stealing nearly $900,000 in pandemic relief funds, after authorities discovered close to 200 decomposing bodies stored in a building without refrigeration, the Associated Press reported.
Carie Hallford — who operated Return to Nature Funeral Home in Penrose alongside her husband, Jon Hallford — pleaded guilty to conspiracy to commit wire fraud. While the charge carries a maximum 20-year sentence, prosecutors have agreed to recommend 15 years when she is sentenced in December. A judge must still approve the agreement; an earlier plea deal was rejected last year.
The federal case against the Hallfords centers on two schemes: falsifying paperwork to obtain nearly $900,000 in pandemic era aid from the U.S. Small Business Administration and taking payment for cremations they never performed. Between 2019 and 2023, investigators say, the couple stored nearly 200 bodies in a deteriorating, room-temperature facility. In some cases, customers allegedly received boxes of dry concrete instead of cremated remains.
Authorities say the Hallfords kept around $130,000 from families who had paid for cremations or burials, using that money — along with the federal funds — for personal luxuries including a GMC Yukon SUV, cosmetic procedures, vacations, jewelry and digital assets.
In a separate state case, both Hallfords have been charged with 191 counts of abuse of a corpse — including accusations of burying the wrong body on two occasions — after investigators discovered the remains last year. Jon Hallford has already pleaded guilty to those charges and to federal fraud, receiving a 20-year prison sentence.
Funeral Women Lead Welcomes Senior Director of Operations
Funeral Women Lead recently announced that Patty Neuswanger has joined the organization as senior director of operations.
Neuswanger brings more than two decades of leadership experience in nonprofit strategy, education, events and organizational development to the role where she will be guiding Funeral Women Lead on its mission to unleash the greatness of women in the funeral and deathcare profession.
Throughout her career, Neuswanger has played a key role in designing and implementing innovative educational initiatives and professional development programs tailored for deathcare professionals. She is passionate about advancing equity and opportunity for women in the deathcare and funeral profession, and her background includes leadership roles at both the National Funeral Directors Association and Selected Independent Funeral Homes.
Learn more about Funeral Women Lead.
New Owners Take Over Longstanding Schad & Zabel Funeral Homes
After more than four decades at the helm, Bill Schad is retiring from Schad & Zabel Funeral Homes in Plainview and Eyota, Minnesota.
He’s handed over the business to two seasoned funeral professionals, Jeff Cink and Paul Czaplewski, according to a report by the Post Bulletin.
Schad, who became sole owner in 2008 after buying out his former partner Ted Zabel, has played a key role in continuing the funeral home’s legacy, which dates back to 1907. The new owners plan to preserve the name.
Both Cink and Czaplewski have deep roots in the funeral service industry — Cink manages Ranfranz & Vine Funeral Homes in Rochester, while Czaplewski also owns Czaplewski Family Funeral Homes.
They intend to personally manage operations at Schad & Zabel, ensuring continuity and familiar faces for local families.
Milestone Funeral Partners Continues to Expand
Milestone Funeral Partners announced that it has acquired Hooker and Whitcomb Funeral Home.
Serving the Barre, Vermont community since 1908, the Whitcomb and Hooker names have been synonymous with compassion, care and tradition, according to Milestone.
“In their early days, during the 1930s, their firm served as Barre’s first dedicated funeral facility, marking a shift from home-based services to modern funeral homes. They even pioneered motorized hearses and today, are located at their Academy Street location, where their legacy of service spans generations,” according to the announcement.
