SCI Has $7.5 Billion in Future Revenue From Pre-Need Sales
Service Corporation International’s management presented at Bank of America Merrill Lynch Leveraged Finance Conference on Tuesday. There were some interesting numbers in the transcript of the presentation. We included a snippet below.
One of the unique things about the industry is that we market to consumers on a pre-need basis where those consumers are selected cemetery property and are select in funeral and cemetery merchandised and services on a pre-need basis is a contractual relationship that’s actually funded by the consumer as well. That creates a tremendous situation for us where we have a backlog of over $7.5 billion of future revenues that again are in the process of being funded with cash or are funded with cash or are supported by a life insurance policy, where the proceeds of that policy comes to the funeral home at the time of need.
SCI currently owns about 13% of the market share and after the purchase of Stewart Enterprises this will increase to 15% and add over $500 million in annual revenue.
If you own SCI stock then you should be excited for this deal to go through.
You can read the full transcript of the presentation here: http://seekingalpha.com/article/1875631-service-corporation-internationals-management-presents-at-bank-of-america-merrill-lynch-leveraged-finance-conference-transcript
Latest posts by CDFuneralNews (see all)
- ASD’s Suicide Telephone Operator Patch (S.T.O.P) System Recognized With 2017 NFDA Innovation Award - November 15, 2017
- Passare Releases Advanced Preneed Integration with Funeral Directors Life - November 15, 2017
- Marching Forward, Making Sales at the 2018 ICCFA Wide World of Sales Conference - November 15, 2017
You may be interested
4 Products Beating the Funeral Merchandise Quality EpidemicJustin Crowe - November 15, 2017
Since entering the funeral industry, I have felt a taboo around talking about the topic of quality in relation to…
ASD’s Suicide Telephone Operator Patch (S.T.O.P) System Recognized With 2017 NFDA Innovation AwardCDFuneralNews - November 15, 2017
Boston, MA—On Monday, October 29, ASD – Answering Service for Directors was named the winner of the National Funeral Directors…
Passare Releases Advanced Preneed Integration with Funeral Directors LifeCDFuneralNews - November 15, 2017
Passare, Inc. recently released an advanced integration with Funeral Directors Life Insurance Company, offering the funeral industry’s only integration between…