Service Corporation International (SCI) Q4 2020 Earnings Call Transcript

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Service Corporation International (NYSE:SCI)
Q4 2020 Earnings Call
Feb 16, 2021, 9:00 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good morning and welcome to the Service Corporation International fourth-quarter 2020 earnings conference call. [Operator instructions] Please note, this event is being recorded. I would now like to turn the conference over to SCI Management. Please go ahead.

Debbie Young — Director of Investor Relations

Thank you, Andrew. Good morning. This is Debbie Young, director of investor relations for SCI. Welcome today to our company’s review of business results for the fourth quarter of 2020.

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

During this call, we will also discuss certain non-GAAP financial measures. A reconciliation of these non-GAAP measures to the appropriate GAAP measures is provided on our website under the Investor Webcast Events section and also in our earnings press release and 8-K that were issued yesterday. With that out of the way, let me pass it on now to our chairman and CEO, Tom Ryan.

Tom Ryan — Chairman and Chief Executive Officer

Thanks, Debbie. Hello, everyone. And thank you for joining us on the call today. We hope you and your families are staying safe and healthy.

This morning, I’ll provide a little color on our business performance during the first quarter. Then I’ll offer some commentary on our 2021 outlook, with the understanding that there remains substantial uncertainty surrounding these effects of the COVID-19 pandemic, which could change guidance significantly. However, before I begin, I would like to say a few words about this past year. 2020 has certainly been one of the most uncertain and challenging periods that any of us can remember.

As I reflect back on the last 10 months, I can say with certainty that our results are a testament to our team’s incredible hard work and to the resilience of our underlying business. I’m extremely proud of our entire SCI team for going above and beyond the call of duty in 2020. In this difficult period, we stayed relentlessly focused on what we do best, helping our client families gain closure and healing through the process of grieving, remembrance and celebration. The health, safety, and well-being of our SCI family was a top priority.

And not only were we able to avoid any layoffs, mandatory furloughs or reductions in pay as a result of the impact of COVID-19, we were able to recognize the incredible efforts of our frontline associates with hero bonuses and provide special bonuses for every associate that does not participate in our annual incentive plan. In 2020, our services were needed more than ever, and I am proud that we were able to perform significantly increased number of services without any disruptions to our business, which highlights the power of our scale. One thing that became clear throughout 2020 is that our fundamental business has not changed. We did not see a wholesale shift in the consumer preferences, and our cremation remains stable.

Although we were greatly restricted in our ability to have large gatherings in 2020, we heard loud and clear from our consumers that they still have a desire to memorialize and to celebrate the lives of their loved ones. Virtual arrangements, live streaming of services, outdoor services,…