SCI - Earnings call transcript Q3 2021 | Service Corporation International

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Operator

Good day, ladies and gentlemen, and welcome to the SCI Third Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator instructions] After today's presentation, there will be an opportunity to ask questions. [Operator instructions] Please note, this event is being recorded. I would now like to turn the conference over to SCI management. ahead. go Please

Debbie Young

a good to and the is Young. has Debbie quarter release our Thank issued we company's morning. review today yesterday. had everyone hope our 'XX. for to of Welcome review of press you, I This chance business third results

limited our and comments team will subject begin some materially be those with Tom our forward-looking in release remarks that from beliefs, uncertainties made These available remind factors could and management differ me plans, statements in earnings filings with website. from our in prepared we let projections contemplated are state These results not you future Any by or such that statements. making to include, to the to risks that our forward-looking those Before are on uncertainties common SEC risks identified forward-looking cause today. for the Eric, and expectations and our that we are statements actual are the but statements.

our on call, measures the With During these to financial release Webcast A at non-GAAP it measures. Ryan, also the can out end certain that also under the Events found on discuss Tom of tables the of will now of Chairman GAAP and pass in the reconciliation be our appropriate CEO. to I'll website we measures section. earnings and Investors this way, our

Tom Ryan

with joining high thank quarter, and by And to now for XXXX. everyone. our us the comment results. cemetery our for the XXXX remarks Hello and you I'm Debbie. updated of guidance quarter thoughts level funeral This finally a you, expectations our going call of on analysis Thank as begin detailed for my fourth the well more on and as overview followed a today. And morning,

remarkable. expectations. two we overall accomplish has broad been the me certainly been last in let has years What able have a exceeded XXXX say comment, just that our to As

our the for ever. unprecedented so care by to more and to Our communities unwavering these services has with team of proud our commitment. continue am And and challenge and than and support. dedication in their risen needed be amazed times, grace has our been team I

of of back our earnings start we the outlook quarter, revenues an mindset we quarter. we of Therefore, let's began the for that expectations. that funeral impact saw guidance variant, time Delta the continued has thereafter, to in have volumes seeing trend in previous death and reflected seen COVID third have the trend mid-July. spoke the half August We taking during IHME's an you and back unexpected of began October. second overview came the surge our into that last by with coupled in mortality for the Now a declining XXXX. Shortly our This downward COVID and were exceeded in was in cemetery non-COVID

XX% production. outstanding. $XX The million results average. growth the into of XX% share the driven The adjusted both in remaining was earnings was in segment diving grew and strength quarter; adjusted by contributed income highlights share over of primarily of result high per fewer revenue pre-need quarter. by shares the also growth, increase increase operating need we At the The and the property cemetery Now the year cemetery the share. primary adjusted the growth revenue continued generated of was in which $X.XX, volume a earnings generated driver level, sales per and cemetery both delivered prior a earnings increases strong per sales at over mainly increase third a

and smaller top in and or impressive volume. up average sales as sales which funeral we quarter. the increase the deaths, year Total in about quarter, million grew and that the tended to XX% we pronounced anticipated The XX% grew strong our from over continued skew an volumes funeral than by to revenues from another in sales into funeral year quarter look climb were this comparable average, variant revenues younger we X% led Recall funeral grew the that of segment call. well about impact results quarter improvements second more million average from guidance over in by third let's to the quarter. COVID as on non-COVID the the excess expected. X% markets. Delta a for XXXX funeral X% sequentially volumes X% third not in had performed and XXXX is and Now up funeral deeper continued third take the which primarily $XX a due $XX Overall, pre-COVID Core increase better

increases a of increase of impact million need quarter by XXXX. sales revenue. essentially average catering pre-COVID percentage The uptick trends $XX general services an point also component has high SCI exceeded a returned family XX%, sales businesses also the Our positively slightly easier nearly home basis impacted the an expectations. by been core and funeral which levels lower selecting increase insurance The rate. ancillary being discount against these in by funeral Pre for XX or to agency rate. $X.X in our has direct a production favorable funeral reduced is revenues, our in such flowers, the and and Both production million formation through positive comparison hosted as strong generated modest third core quarter in production

generated production, see leads lower cost. from to a done very have sales in marketing at continue it growth and have that digital both but seminars successfully only We not pre

X% average core production home saw over $X,XXX. for sales contract almost revenue to front, the we increased funeral by On

are some and ancillary revenue XX%. pre-customers service elevated percentage increase staffing margin third XXX perspective, more $XX basis quarter profit profit points an we gross of percentage service. generated As profit margin and the the from by core incremental to of choosing of XXXX. structure during reduced increasing a to operated an in million under our From limited compared revenues form as lower the service The increase increased percentage was funeral grew levels the somewhat slightly in

elevated experienced fuel related costs. we Additionally, energy and

to Now cemetery $XX XX% comparable million the or than quarter. third cemeteries, revenue more increased shifting in

the XX% of by revenue. terms in and than production, this in higher million breakdown growth generated pre higher acne driven higher primarily large sale as quality $XX core by contract velocity. of $XX to sales acne a increase modest Recognized as quarter growth, due about primarily preneed or cemetery service need the revenues revenue need property expected the merchandise well sale, of or pre recognized revenue impressive generated million cemetery a XX% In average and increase an

million achieved care the X% primarily third trust gain million timing perpetual in Additionally, production $X exceeded fund a increase sales capital which we quarter, income, our the through a $XX of and cemetery growth The reduction in higher expectations, for core due or pre the quality sales sale on increase followed sales beacon by implementation the favorable a of core presentations is in activity. large having discounting sales efforts. majority of in of to institutional semi led that a impact our average accounted has to

of expected in side, contributed a the actually also the number quarter, grew printing a tougher sold Although contracts to comp which the increase. modestly on velocity we

our generated funeral pre from successfully sales discussion As in pre that very growth program mentioned leads see my earlier, production. generated continue marketing I production to we

$XX in such and Additionally, quarter cemeteries key full incremental XXX in the to to margin points the service we profit close similar XXXX. costs of are and by staffing profits approximately the brew the The seeing with cemetery XX% structure percentage as gross basis metrics, funeral operating third quarter million reduced segment. appointment percentage associated improvements increases slightly rates, sales in increased the was service to revenue as maintenance on limited elevated the by during gross compared

an This the cents the in our results. and better the the XX per due midpoint again outperformance based third XXXX share an earnings outlook quarter. raising quarter, we to our by range for year full of represents a guidance earnings let's XXXX. $X.XX expected of per Now our In about than talk is increase raise our $X.XX in the results. revised to share XX% primarily to increases This XXXX delivered guidance upon are for third additional

deaths. be a Additionally, still the of than items quarter to Delta versus anticipated primarily being percentage this earnings have cemetery within in growing both segment, revenues, non projected favorably expect quarter, of we midpoint fourth the are comparable as originally per due fourth higher volume for which morbidity quarter per $X.XX percentage a decline to fourth XXXX need than we an $X.XX the would funeral in for our variant and in at single digit excess we our over by per increased revenue in the earned compared COVID anticipating year anticipated quarter was The compare impacted of and digit in continue up in highest Meanwhile, prior K share year year. share the the fourth a funeral increase decrease our quarter, share earnings quarter per guidance, last to of strong the range very range the to average mid-single a higher XX%.

business, increase relatively phenomenal at production forecast cemetery quarter quarter. of year quarter in quarter that for XXXX the to is quarter the on a cemetery revenues we flat comparing prior versus in fourth percentages grow to we the compared the Finally, XX% be against a the fourth prior This the the XXXX. sales delivered pre to digit for side fourth funeral fourth high expect quarter

again mild supply XXXX, like pre has which teams fourth compared to cost years, in out the fourth XXXX. forward next of back to our this far And when double over post per our couple in COVID we years platform a in functions and as utilizing also capital in and impressive which the that XX the to years expect expect culminating and technologies capital other with beyond XXXX we our and compound when expect compounded have expect flat funeral percentage to brunt of goes, that well COVID bearing cost emphasize utilization share. of quarter the our in sales to impact in efficient We two the earnings expect of a generate pressures temporarily effect begin XX% we impressive, in Even maturity back all the our buybacks said production within enhancement, both improve negative companies, volumes to increase near sorry, will rates, months pre forward to example, the pull dollar percentages. very lead many earnings in XXXX, XX operations per did low field to thereby accelerated as quarter XXXX, single reported next in COVID term. percent down effect. our and debt than of thinking support cases, base profile. wane, we And As XX,XXX pull XX our the in effectiveness structure. wage structure of crisis less our I'm annual share a to strength resulting managing now in as up in revenues we're improvements digit funeral was earnings sales experience midpoint an we And I XXXX, over plus on we give you roughly models. we growth the and growth share in digit robust and the COVID of resulting will Having looking operating our so to the at chain with

pull We earnings rate per XX XXXX. year begin. in compounded three share per resulting year believe cents trend effects growth should earnings that over year a the XX% of to period XXXX, $X in XXXX for growth a a the can should beyond begin wane Our reflect forward share over

cohort we and As approach efficient technologically operating more boomer aging leaner a with effective an model. baby and

approaching tagger see that of share XX, We reality. but wish I XX per continue XX, it a per to XX over we never will the year cents, is earnings period. heard would believe had $X share which four that earnings maintain and I COVID XX%

client one while so Our done earnings had that to and our our make I'll for the closing, our growth our in for our such shared have with. team, way COVID what a company, have and Eric. proud us in again you turn over place dealing in I your communities now families it a our team finding for in company trust impressive all to with the country, that better to with world thank are even selfless world, to entire operator. post communities generating FTI helping they and to an way, very deal am stakeholders of our dedication

Eric Tanzberger

Thanks and Tom everybody. good morning,

all to our very going of and to have during start associates and of thank most with to And busy very where and think and I our well these you teams months continue Tom most. great how let's cemeteries I important same we just and say our the are acknowledge I SCI challenging first of working the for September, times very off I'm the be of our communities, want need face amazed. take that humbled message that's they and funeral it client the busy appreciate you to on the that every when of the families also way. the one our and us. that able August personally team And at day and been know team. tirelessly I ended care to each have homes it months of

then cash briefly and And guidance outlook. flow like provide capital I'll I'll through some our our So in just and now revised for year, flow results a XXXX you morning, XX my cash discuss remarks financial on did, walk and the this comments position. in quarter, Tom deployment full XX

adjusted start year. with increased in million million XXX quarter operating let's compared XX million cash to flow the the So XXX to prior

COVID So operations. that the But our were and did in from unexpected we this Delta also the cemetery COVID non were increase deaths see for in that both unexpected impacting the drivers deaths. our increase impacts funeral growth drove variant

this million, about of decreasing to EBIT a adjusted strong tax million. doc which also by XX amounted benefited about road, addition In to cash XX we

the quarter last federal that cash XXXX. approximately deferred We of in taxes state So the and income of quarter XX unusually million remember taxes were were had third pay to year, high. of second from

full to in payroll a flow for taxes somewhat item totaled related XXXX. which net have offset we'll increase taxes. in primarily So of million to remember of we're use capital year last under working by were able an quarter, cares for cash the And defer approximately the $XX this payroll positive remember again, SCI to act, quarterly these that year which

the to half will this mind XXXX. million in or remaining that the current be paid of the year $XX of other in are required So next quarter, amount of about half, million in pay keep we and quarter fourth $XX year

court, recent then it reinvest the seen capital deployment in and also to highest our XXX returning is capital really second to capital we footprint capital, the that history. about our during first, our So ultimately This we've which deployed went million expanding of shareholders. quarterly in businesses

ground build maintenance million but also only to target, development We in cemetery and million customer experience of more technology capital the facilities, in now construction quarter our investments invested our with So contemporary million to customer up capital growth on of we but the business opportunities, acquisitions, into still and our this as started on around acquisition. facing home, not million of affects a for perspective capital delays this made as our of businesses some primarily annual spend. the corner million some from consist $XX breakdown, the million about end cemetery real $XX But hundred the continued million larger development during making to some maintenance development $X side $X of capital $XX I improvements estate XX capital, our new point permitting well invested projects. funeral at believe we'll year of for with co we to development million $XX spent a on capital

under purchases, deployed dividend half through the by capital dividends just, able And under the at confident million. to per acquisition to million for And cents the $XX opportunities $XXX get the to third announced in XXXX. our excited that finally increase we we're the annual remain several will this $XX us So payments look the August. target that just to of quarter, fourth that that are way, a the we total million a believe pipeline transactions quarter I remainder during we'll that of touching sharing $XXX percent million as to share for acquisition moment, describing during working we've and we Then nine in per be just on quarter reflects the on shareholders year. we been XX we close and

to So our on shifted comments outlook. few a updated

about this $XXX XXXX cash As we our for guidance million. adjusted morning, you by saw increasing were

million $XXX from to went guidance guidance to $XX range million XXX a the million. revised newly So hundred of $XX to annual

XXXX, $XXX million year. million we about So to increase when of this an over last XX% back compare XX midpoint represents of or new

so color the cash flow as this And primarily earnings the midpoint an increase talk on working increase the well volume and about is about cash quarter is expected revised increase by in we're earlier, during other by expected the due as driven are in funeral in and of let's taxes noted or million in primarily million is the 'XX So now expectations, and associated an additional that EPS third XX cash mortality, increases million higher are over on to approximate partially earnings. It a million talked today's because on and $XXX quarter higher cash cemetery guidance. the these about increase expecting little again, million are, with in at uses August, increase of outperformance increase earnings capital that that as million $XX offset in fourth And these closer we've at $XXX increase. to cent the $XXX earnings. this need $XX cash $XXX tax payments

XXXX still cash COVID described there's just that with try to a in predict the flow variables of in year, forward XXXX while our next lot the Tom of expectations you WANs. to looking to So should as earnings to line decrease impact expect

an by technologically again, cash And operating and then the services on lower these cohort, baby agent to expected forward increasing we more to be cash expect along on, taxes earnings. utilizing on approach leaner trajectory our looking model. with XXXX, an be buffered However, and effects as these lower cash should efficient our declines on we growth boomer lower,

the which highest as as financial given to opportunities opportunistic our underlying for the position, being have return well the and us confidence the CASHS, and our that of refinance done flexibility capital transaction the the $X stability So year credit facility. about not deploying we Early strong some of relative year, completed continue to acquisitions term revolver, least of plenty on for a years a refinance cash on to have but a amount consistent pipeline at the with several deployment allowed billion that million a balance provide later sheet this hand capital solid $XXX notes of we other or on in repay liquidity, flexibility, of outstanding of we been several debt for also bank XX, years. future to years, the next long by would've tremendous in continue us us our balance plus fund, bolstered will many in only and closing, about of

interest reduced Additionally, risk. this transaction our rate

actually proportion increase we on leverage over of times. below just remains XX% It's our X.X continued the the quarter our ratio times. three to debt at of As about now fixed the end growth, rate

As pandemic, think in to and to the EBITDA. expect leverage up impacts range we this debt And a of the this will times we to I back of three towards four naturally have end looking noted targeted our to half of the net XXXX. past, continue lever beyond the happen

thank frontline positioned and like very for finish we results for well as as quarter, we to our are finally been in future of associates I growth. And again, intend of all would the believe strongly nine really first months We So to have year impressive. efforts. all the their well once our the

now turn to remarks. So it to you I operator, concludes over our prepared that like for that questions. with

Operator

Sir. you, Thank

from We please first question question session. and will Ransom our from James. go take We'll answer now ahead. the [Operator instructions] Raymond John begin

John Ransom

these Hey, that's One all to margin revenue. is model big on the a Thanks little challenging segment detail moves morning. and for XXXX. thing with good been

We about the margin, couple we in next on secondly, if about think effect about So how and a how do the and thinking decline death gross about one year, need are ways, to, that we to thinking that your funeral just in your think cemetery cemetery? you knock

Tom Ryan

on The we the funeral that be in per for question. side you the obviously going announced death John, that hope John, experience more is reduction, Okay, for once the of thank business. all you reduction to

about historically think margins funeral side have probably closer been XX%. the So on as you to

about say cemetery effect, the, teens, And you dip in so as think down that's lot the margins expect pull you as to less. I'd really side, forward high occurring declines on into while these the a most those likely probably

So, reported this I think quarter we XX%.

where of to lead even ability the comfortable I rates in again, we source to that. a decline, lot like our our things because sales printing enhance while think we see we're done we've death models deliver feel for that's us, a

So into about. margins an going very think the I thirties, they're area but we pretty that's we're probably feel the pull low if to comfortable again, back comfortable cemetery seeing that

John Ransom

cemetery the about the pre on… what need pre need And knock --

Tom Ryan

utilizing we we're to better and and the are and that able but done, be year be are grow measure as trying don't declining utilization to establish XX, and anticipate, I cemetery, you on better. John from we'd the that about, I digital different over effective. but, clearly over we the better, sales we We're to to, we that maybe area in from year better in once Salesforce digit that in particularly and know, better got tools probably platform. the, Cause of behaviors see things at growth. believe what of look that the use platform percentages inclusive high that beacon backwards be mid production, now. We've margins are digit lead that terrible I baseline, maybe capabilities think newer year back of because of kind building sides, implementing I the as year, back year single then think, that generate we would to trends now, Yeah, more of facts need our we've in some had, really the declines that much? you to but, being success getting the over on we see XX still again, driving, type side scenario we going And and into very single if it think even the right on impact those you the get slight cemetery a year, it could but of we've experience know, pre and

So grow I we're forward just impressed. it we issue the, through very the very that going the continue to pull feel with work confident once the, to

John Ransom

Great you given last end in XX small but XX, the an know, in loaded you a point, EBIT is this versus And, of just back nature full M Eric, this one the an, Tommy me, partial and year the standpoint. of of a have estimate sort year effect for year just from a

Eric Tanzberger

we we're I guidance think you, we're don't give flows. ones and to No, we wanted know, terms don't transactions something date, the think I going do which close. ebb you yet to these John, know how in of is, What to have to you year pretty I because low if model

the And a of have, But talking the of spent, our tuck then, as towards and immediately footprint I you synergies, high existing eight type maybe on that pleased that we to more I'll $XX other they it in times. a purchasing ones get $XX to hundred to of how versus power network. hopeful find know, going pre turn existing And are And I'm for that million get multiples you take probably And synergy about, acquisitions have we're another of the and ultimately type we're I paying. million. dependent the to well we million. network. the XX we're with these that know, per multiples, turn end So we that. nine were off call think to The somewhat you think well into the then to some that

John Ransom

million But be something $X like $X crazy. million wouldn't to

incremental contribution year. an as Just next

Eric Tanzberger

say I so. Yeah, would

John Ransom

me. all That's you. Thank Okay. for

Operator

Oppenheimer. next The comes from Please from Schneeberger ahead. you. question Scott go Thank

Scott Schneeberger

anecdotes and of, I'm high going sales taste heard I've elevated. covered Could biggest is that, to it, areas about this main you efficiencies Could about degree magnitude this heard, that of give how you Thanks. this much. drivers of, could items. maybe what's you that other you how we guess doing us comprehend of, know, know, few these keep I've just drivers in that, a a margin level talk occurring. just of cemetery magnitude all it very I of it of the experienced, directly you've some curious covered of support are that at and of, but seemingly what's are Thanks efficiencies better you the a of,

Tom Ryan

market natural Sure. and things trust you Scott, spectrum, income so the this some look of that but across driven, efficiency, in contributions necessarily you're if are at there isn't its of part merchandise seeing the the that the a say side, beginning the, That's into ECF even flow. we've funeral, on I'd and margins into our our on flow and cemetery cumulative to flow good, service on return. really got the cash

So as remember really And you that's know, because year a again, because we're bad operations. mentioning start absorb office cumulative in of the I strong even seeing still the that I back two seeing there. as with, a performance that's long we're period, eight piece. sales, seeing it think that board a in or could year you was over an to mentioned in the We're other across things I it kind XX it

people this metric better full-time through you to a how and understand on all For side, the usage operating ways staffing resources with, a level. utilize we've found to example managing know, market trying we to reduce our and as within and technology part-time implemented an operational utilize instance, and and equivalent and overtime

stick level team we've you things more selling seen an as out digital more leads it WebEx Salesforce can dive making and both I consumers, as that entire allows technologies an now back front, implemented allows a Salesforce because we're as 'em that Beacon We reduced reduces platform. the that we're we little amount efficient. the talked us around do off utilized amount very on a sales our and, really deep bit hide very, interacting certain of we've a know, that's because some the to And it, example, the us to to it that, of is of Salesforce. of to travel train that talked compensation. leveraging play tool. cutting are beacon effective forced change that about recently, about spending discipline kind and with into discounting how So has utilize example more. into down and done seeing and and that amount have crisis, of It our the two the better it salespeople time that being

to on it's think the COVID great do there WebEx the of And that that, part to just kind the you the effective globe supply to dramatically that return a the, back functions on us now to do chain way on that I found we meetings, travel levels. impacts the, we're cut of institutionalization So the offshore And ways utilizing certain that. of more We've business. and the, out the of understanding efficient they're COVID then really know, we've were being around tools again, that's these onshore forced of overhead do. pre going front, aren't and

a that's, seeing time. those mean little that hopefully of benefits and, and up over So those of stick lot to that things and there's add kind are believe going benefits

Scott Schneeberger

you that. that. well operating there the margins have that up quickly are of very nice on another And the a lot environment. question, the and follow showing enduring seemingly That's a labor Tom, sort Thanks, follow then I, are of, real guys in appreciate I up out helpful. industries

could You way anything as a on front should you enter be reducing overtime on labor we but Thanks. at that, that the just dynamic XXXX. part-time touch the real quickly the else like if items particular or mentioned disruptive all labor and on just

Tom Ryan

Sure, Scott, thank you.

say all, let of this. me First

feel what It think I this analogize different the is goes people help labor, something know, view as, our and profession if to you like we're it that they hearts. it. about on I business and you people's our, when God's near dear want that is generally in as think I people to others so at And, to time. hospitals. because in will. I you mean, enter the this work, point a in

We're we with, labor they think markets. There's is that exactly unique a I it start certain passionate in you're said off we've do. Having So there. that tightness what about right. seeing got workforce out

in it move see you our I going would a definitely, forward. to comments. we're know, a as going little of I kind of bit anticipate we think mentioned There's impact probably on. that an we wage inflation of

adjustments of tried everything know, reflect hero we of and did year those We've a bonuses we've bonus by done dedication our some, special the the hard know, period folks. do yearend for can to people. you our over time work bonuses, making to last we've You

say to in we're to trenches can monetarily everything So the would work. out particularly I do are we also, this hard there support and both trying our field that just personnel doing culturally

industries. you the, I things when I pressures, about some aware I we're you do believe a think not of passion every particularly the of And trucking I very keenly we're don't there's but level same look expect know, manageable, it's at our the industry. the some on don't So mean, I you as day. very other wage do and think, of doing they're restaurant think some you're of the there, side what seeing workforce issue.

Scott Schneeberger

has just Thanks, returned occurred I revenue question, the you. I funeral over just levels. that Thank so is for other speak what And could, have that. Could to if XXXX you strongly? service to up appreciate per

Tom Ryan

think saying we're are and what is I beginning. people Yeah, seeing that it's more more

from think service a XXXX significant some burial, were XXXX, whether or fund it. be traditional And we pretty had and funeral saying, when a point, to people and people going you that rebounded back were seeing rebounded find levels burials there to form service, that, COVID have end We're And I just you in You levels. this want, surprised Scott remember of the people pre what information higher where choosing that more pleasantly we a drop cremation now little to in that October to are at they're I to we is think service, choosing are we and they, people our a efficient. concerned some that's there out coming of know, if When us the choose for, SCI, know, celebration that about what and they were they're do, great a giving that, industry things. service. those remembrance that

a selling at ago. The two other things we driven of lot a example, that great digital we that than do And thing more services products feel lot when that catering going and team is did, years as good four ancillary ago, side, lot honestly, years look flowers the you some strategy of three her by And, years a the we ancillary really of so a tap that. is ago, we're quite go know, the same you being an and you the, forward. into. pears have got us if about at Jamie really and that And into look thing, helped

The other just would is thing mention that I the back pre wall.

super of our impressive. that coming You and Salesforce, averages know, lot developing seeing outta with now backlog the time fruity are a spent backlog we're that we've

the know, out. know, that's, $X,XXX You and income, that's selling product build good coming level you up trust, in

over pushing So edge really, levels. continuing. that we, I those the the probably things see are And think trends XXXX have we those are

Scott Schneeberger

Great. Thank taking much request. you very your

Operator

question go from Joanna Next Bank Gajuk Please ahead. America. comes of from

Joanna Gajuk

the up guess, activity. Thank first, discussion couple I deal you around a on follow of questions just

So we're that you XX, deal talking expecting outlook year you done talk be outlined? guess to, amount include about when that about your pushing when of still XX those does you, to or I deals contribution this that

Tom Ryan

XXXX so reflect think I, what's around I much Yeah. to That hesitate, happen. would there's and uncertainty I and, that again, Joan

And so best we're know, from would have here, that, little trying guys bit of that really quickly in pretty that. assumption we're just our you know, and COVID that, that corner a you you continued to going guess, impact a give to say goes

health of wrap cancer impact that again, The going more annual goes things, related our the think and surely other what what's know, that's to happen a deaths numbers. don't to those mental check-ups to with And of around project that to beginning seeing we're is, is we're COVID, variety both necessarily People, tied that other to the excess thing we're that obviously death arms people lot physical for reflected you in and probably not I screenings all trying health in for, in being away. went is can't we something numbers. for a as see

of going we little think what's say, excess to are feel our going and we what I went my those so around manage are. if think XXXX. are idea again, we to closer volumes being you good I lot really hopefully, pretty And this away, probably with we we're, how opinion, a as conservative What to cash? about on, a in we going there's our know, Hey, in have a but uncertainty we're do So our cost But of better February, get structure?

Joanna Gajuk

the other multiples also just definitely in doing to Sure. to and, players us. in good. market, discussion, and talk I when higher? are about you want confirm want or guess the moving consolidating seeing you the other that's the there I follow No, you that are multiples, know locations the, up on that

activity year? is some multiples of you are of so due you there and know, slowing So, guess or kind pressure on of, acceleration the also into next or, I expecting down

Tom Ryan

motivated I out Yeah, plans to have selling me tax let business think the about speak the that window there. people in know, their been probably that you were, Biden get thinking accelerating. there out Clearly to have first, some the

of two pressure. I'd a goes, you probably putting think influx do guess think associated little robust I think Eric's as So about I activity. why a That's seeing I point clearly little expect to with quarter of quarter, that. There's nice we're be is an as say the to bit upward things. pricing closing as a And activity far acquisitions we'd fourth more

COVID factor unique other is you right. The have

of upward overall, have the to that return deals but you for some selling you one So you off again, these a XXXX, that right. and that, my understand that's they're pressure, off aspects a we're and still I team. to probably little paying ones capital good meaningful would and trying competing maybe going am that say bit and, My are our what looking know, of confusion other the results? XXXX confusing To of of stakeholders at I think use multiple of I mean, puts are

it. about good feel we so So,

Joanna Gajuk

guess, follow also rise, and elevated so you being, mentioned last it's but this I revenue That's cause you. by obviously results, and know, guess helpful. you energy And, the one been know, you year, you sounds like I wages the mentioned, strong on fuel masked also MAED up, but Thank far very costs.

the you Thank about So things think how magnitude you. should there? of

Tom Ryan

Sure.

elevated tie costs really So the back. again, energy

homes you cemeteries lot and the vehicles of homes. have you in it that think whatever air Clearly about particularly may electricity, when XXXX we've be. If all funeral think at it, what, costs, got about a funeral we operate energy conditioning, the the both

between spiked, half and So Gas those five we are we they've oil really coring. a going prices, know, low that all with you benefit. bucks. and, which really were very just XX on up enjoyed over natural and trading and very, oils gas as know, And What's six bucks. is

usage know, our So those, homes. in into convert you

a good manage better. news little we're is Now, is us the costs technology utilizing those for bit we to

working existing perspective, from usage both So the on that we're programs as we've to cost. an allow as think manage I will got that improvements kind better, environmental well and lowering today of us

but So, on we're enough we'll on pretty going give I number want can to it. bit just oil doing, move manage gas that natural it. prices And correlate you flavour. not with meaningful I and a I little think to it's of that, to, not It's believe with a what's well.

the side around margins. funeral on revenue know, we sell You incremental you somewhere XX% should deliver, know,

XX, saw XX. we think I

of these did bit explaining, energy, little of you other Well, XX%? get it, a know, bit why little So its the of some you a things.

costs very So really, good staffing our know, feel costs, very way. able comes whatever and energy those and we to still manage you

Joanna Gajuk

Okay. so caller. That's you much. a helpful Thank very

Operator

concludes I SCI you. not Thank to like would closing conference for our remarks. This management turn any question-and-answer to session. the back

Tom Ryan

Thank the for comments. you much. you being say talk again, the we a for your questions thing go appreciate everybody your call today, ask on Thank very is to and really to I us, other have you in months. only we'll few And

Operator

Thank today's attending The has you human presentation, disconnect. now. you. concluded out conference for Thank

Service Corporation International (SCI) 28 Oct 212021 Q3 Earnings call transcript