Alderwoods Group Reports Second Quarter Results.CINCINNATI Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. -- Revenue Growth in All Business Segments Improves Net Earnings; Employment Contracts of Senior Executives Extended Alderwoods Group The Alderwoods Group, Inc. is the second largest provider of funeral, cremation, and cemetery services in North America with operations in the United States, Canada and Puerto Rico. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AWGI) today announced its second quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. results, representing the 12 weeks and 24 weeks ended June June: see month. 18, 2005. For the 12 weeks ended June 18, 2005, the Company reported total net income of $12.1 million, or $0.30 basic and $0.29 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , on revenues of $176.8 million, compared with total net loss of $6.5 million, or $0.16 basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share, on revenues of $162.3 million, for the 12 weeks ended June 19, 2004. From continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , the Company reported net income of $12.9 million, or $0.32 basic and $0.31 diluted earnings per share, for the second quarter of fiscal 2005, compared with net income of $3.2 million, or $0.08 basic and diluted earnings per share, for the same period a year ago. Highlights of the Second Quarter from Continuing Operations --Revenue increased 8.9% to $176.8 million --Number of same site funeral services funeral service n → misa de cuerpo presente funeral service n → service m funèbre funeral service funeral n performed for the quarter increased 1.5% to 26,660 --Same site average revenue per funeral Funeral Viking funeral given to Michael Geste by his younger brother, as in their childhood games. [Br. Lit.: P. C. Wren Beau Geste in Benét, 87] increased 2.8% to $4,142 --Funeral revenue increased 4.0% to $110.5 million --Cemetery revenue increased 14.6% to $43.9 million --Insurance revenue increased 26.6% to $22.4 million --Net income increased to $12.1 million --Basic earnings per share increased to $0.32; Diluted earnings per share increased to $0.31 --Pre-need funeral contracts written increased 6.6% to $47.0 million --Pre-need cemetery cemetery, name used by early Christians to designate a place for burying the dead. First applied in Christian burials in the Roman catacombs, the word cemetery came into general usage in the 15th cent. contracts written increased 18.3% to $24.8 million --Total debt was reduced by $22.1 million in the quarter For the 24 weeks ended June 18, 2005, the Company reported total net income of $25.2 million, or $0.63 basic and $0.61 diluted earnings per share, on revenues of $360.6 million, compared with total net loss of $1.6 million, or $0.04 basic and diluted loss per share, on revenues of $339.1 million, for the 24 weeks ended June 19, 2004. From continuing operations, the Company reported net income of $26.9 million, or $0.67 basic and $0.65 diluted earnings per share, for the year-to-date, compared with net income of $14.5 million, or $0.36 basic and $0.35 diluted earnings per share, for the same period a year ago. Highlights of the Year-to-Date from Continuing Operations --Revenue increased 6.3% to $360.6 million --Number of same site funeral services performed declined 0.2% to 56,451 --Same site average revenue per funeral increased 3.0% to $4,137 --Funeral revenue increased 2.8% to $234.5 million --Cemetery revenue increased 9.9% to $82.2 million --Insurance revenue increased 21.6% to $43.9 million --Net income increased to $26.9 million --Basic earnings per share increased to $0.67; Diluted earnings per share increased to $0.65 --Pre-need funeral contracts written increased 6.9% to $90.3 million --Pre-need cemetery contracts written increased 16.8% to $45.8 million --Total debt was reduced by $53.7 million "In the second quarter, we turned the trend on funeral service calls to the positive, increased the average revenue per funeral service for the thirteenth consecutive quarter, and grew revenues in each of our three business segments," said Mr. Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Alderwoods Group. "At the same time, we continued to focus on Alderwoods' future market share and added to our backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. ." Houston continued, "Our operating performance strongly suggests that we are on course with our objective of improving organic growth for the fiscal year. In the quarter, we continued to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution our strategy of investing in key areas of the business, such as advertising, promotion, training and recruiting, that we believe will drive our future operating performance. Our expenses in the quarter included these investments as well as the costs of improving our operating and financial controls." Significant Activities in the Quarter Implemented Alderwoods Rooms: The Company continued its investment in Alderwoods Rooms in the second quarter, implementing 30 of the arrangement rooms in funeral homes throughout its network. Alderwoods Group expects the total number of Alderwoods Rooms across its network to be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 344 by the end of fiscal 2005. Reduced Long-Term Debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. : Alderwoods Group took the opportunity to continue its program of debt reduction, reducing its long-term debt by $22.1 million in the quarter and $53.7 million in the year-to-date. At June 18, 2005, total debt was $409.9 million and cash and cash equivalents was $12.0 million. In fiscal 2005, the Company's capital expenditures will take place predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. in the second half of the fiscal year. Therefore, debt repayments in the third and fourth quarters are not expected to match the level of the first half of the year. Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and Assets Held for Sale Over the previous three fiscal years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Company has engaged in a strategic market rationalization rationalization, in psychology: see defense mechanism. assessment to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose cemetery and funeral operating locations that did not fit into the Company's market or business strategies, as well as under-performing locations and excess cemetery land. As of June 18, 2005, the Company had completed its strategic market rationalization program except for one cemetery which was classified back to continuing operations during the 12 weeks ended June 18, 2005. The Company will, on a smaller scale and over time, continue to assess the Company's portfolio of funeral and cemetery locations to ensure they continue to fit into the Company's strategy and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. vision. Employment Contracts of Senior Executives Extended The Board of Directors of Alderwoods Group has extended the employment contracts of the Company's Chairman, President and Chief Executive Officer, Chief Financial Officer and Chief Information Officer.
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Name Title New Contract End Date
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John Lacey Chairman July 31, 2008
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Paul Houston President and March 31, 2008
Chief Executive Officer
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Ken Sloan Executive Vice President and March 31, 2009
Chief Financial Officer
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Ross Caradonna Executive Vice President and June 30, 2009
Chief Information Officer
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"Over the past several years, we have witnessed a substantive Substantive may refer to: In grammar:
A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. in Alderwoods' operating performance and a significant increase in shareholder value," said Mr. Anthony Eames Eames , Charles 1907-1978. American designer noted for an innovative series of chairs made of aluminum tubing and molded plywood. Noun 1. , Director and Chairman of Alderwoods Group's Compensation Committee. "This leadership team has significantly exceeded the net debt reduction targets outlined in the 2003-2005 long-term incentive plan." "Based on this performance, we now have the opportunity to accelerate the payment of the net debt reduction portion of the long-term incentive plan, sign new multi-year employment contracts for the leadership team, and adopt a new long-term incentive plan in order to maintain continuity of vision, leadership and strategy for Alderwoods. The new contracts continue to align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. management's goals with those of shareholders and include a stock ownership requirement for each of the executives." Messrs. Lacey lac·ey adj. Variant of lacy. and Houston have each agreed to use some of the after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. proceeds of the accelerated payments of the net debt reduction portion of the 2003-2005 long-term incentive plan to acquire 100,000 shares of the Company's stock by August 10, 2005, in furtherance fur·ther·ance n. The act of furthering, advancing, or helping forward: "Pakistan does not aspire to any . . . role in furtherance of the strategies of other powers" Ismail Patel. of their ownership requirements. Each has also agreed to acquire an additional 100,000 shares of the Company's stock by no later than April 10, 2005, in furtherance of their ownership requirements. The new contracts will be effective August 1, 2005. Financial Summary 12 Weeks Ended June 18, 2005 Overview For the 12 weeks ended June 18, 2005, total net income was $12.1 million, an increase of $18.6 million compared to a loss of $6.5 million for the 12 weeks ended June 19, 2004. Basic earnings per share were $0.30 for the 12 weeks ended June 18, 2005 compared to a loss of $0.16 for the 12 weeks ended June 19, 2004. Diluted earnings per share were $0.29 for the 12 weeks ended June 18, 2005 compared to a loss of $0.16 in the year-ago period. Continuing Operations Total revenue for the 12 weeks ended June 18, 2005, was $176.8 million compared to $162.3 million for the 12 weeks ended June 19, 2004, an increase of $14.5 million, or 8.9%. Revenue increased in each of the business segments - funeral, cemetery and insurance. Funeral revenue was $110.5 million for the 12 weeks ended June 18, 2005, up $4.2 million compared to $106.3 million for the 12 weeks ended June 19, 2004. Same site funeral revenue was $110.4 million for the 12 weeks ended June 18, 2005, up $4.5 million compared to $105.9 million for the 12 weeks ended June 19, 2004. The increase in same site performance was largely due to an increase in the average funeral revenue per service of $112 or 2.8% and an increase of 1.5% in the number of funeral services performed. Funeral gross margin decreased to 18.1% for the 12 weeks ended June 18, 2005, compared to 21.5% for the 12 weeks ended June 19, 2004. The decrease was primarily due to increased wages, training and advertising costs related to the Company's expanded field management structure and investment in programs designed to build local brand awareness and generate future growth. Cemetery revenue for the 12 weeks ended June 18, 2005, was $43.9 million, $5.6 million, or 14.6% higher than $38.3 million for the 12 weeks ended June 19, 2004. The increase was due primarily to higher pre-need space sales at the Company's Rose Hills subsidiary, combined with an overall increase in the number of cemetery interments. Cemetery gross margin was 16.4% for the 12 weeks ended June 18, 2005, compared to 14.1% for the 12 weeks ended June 19, 2004. The increase was due primarily to increased space sales and cemetery interments. Insurance revenue was $22.4 million for the 12 weeks ended June 18, 2005, compared to $17.7 million for the 12 weeks ended June 19, 2004. Insurance revenue increased primarily due to increases in premiums. Insurance gross margin increased to 3.6% for the 12 weeks ended June 18, 2005, compared to 2.8% for the 12 weeks ended June 19, 2004, primarily as a result of the revenue increase. General and administrative expenses totaled $1.7 million for the 12 weeks ended June 18, 2005 compared to $9.6 million for the 12 weeks ended June 19, 2004. The decrease is primarily due to the reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of a $10.9 million allowance for doubtful accounts Allowance for Doubtful Accounts An estimation made by a company and documented on its balance sheet for receivables that might go uncollected. Notes: It is standard practice for a company to have funds set aside for money that cannot be collected. related to the collection subsequent to June 18, 2005 of notes receivable partially offset by a $1.0 million retirement allowance accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. in the 12 weeks ended June 18, 2005. The amounts in the 12 weeks ended June 19, 2004, include a $0.9 million legal claim accrual reversal and $1.2 million for corporate receivable recoveries that were previously fully reserved against. For the 12 weeks ended June 18, 2005, interest expense was $7.0 million, a decrease of $6.5 million compared to the 12 weeks ended June 19, 2004, reflecting the effect of principal repayments and lower interest rates compared to the corresponding period in 2004. For the 12 weeks ended June 18, 2005, net income tax expense was $7.0 million, compared to net income tax expense of $2.2 million for the 12 weeks ended June 19, 2004. The effective tax rate varied from the statutory tax rate in 2005 because in certain jurisdictions, there was a decrease in the valuation allowance for which the benefit has not been recognized in income tax expense. Net income from continuing operations was $12.9 million, or $0.32 basic and $0.31 diluted earnings per share, for the 12 weeks ended June 18, 2005, compared to net income of $3.2 million, or $0.08 basic and diluted earnings per share, for the 12 weeks ended June 19, 2004. Pre-need funeral and cemetery contracts written during the 12 weeks ended June 18, 2005, totaled $47.0 million and $24.8 million, respectively. For the 12 weeks ended June 19, 2004, pre-need funeral and cemetery contracts written totaled $44.1 million and $21.0 million, respectively. The Company is continuing its program to increase pre-need sales. The Company believes that pre-need sales are an important part of building the foundation for future revenue. Discontinued Operations For the 12 weeks ended June 18, 2005, loss from discontinued operations, net of tax, was $0.8 million, or $0.02 basic and diluted loss per share compared to a loss of $9.7 million or $0.24 basic and diluted loss per share for the 12 weeks ended June 19, 2004. Financial Summary 24 Weeks Ended June 18, 2005 Overview For the 24 weeks ended June 18, 2005, total net income was $25.2 million, an increase of $26.8 million compared to a loss of $1.6 million for the 24 weeks ended June 18, 2004. Basic earnings per share were $0.63 for the 24 weeks ended June 18, 2005 compared to a loss of $0.04 for the 24 weeks ended June 19, 2004. Diluted earnings per share were $0.61 for the 24 weeks ended June 18, 2005 compared to a loss of $0.04 in the year-ago period. Continuing Operations Total revenue for the 24 weeks ended June 18, 2005, was $360.6 million compared to $339.1 million for the 24 weeks ended June 19, 2004, an increase of $21.5 million, or 6.3%. Revenue increased in each of the business segments - funeral, cemetery and insurance. Funeral revenue was $234.5 million for the 24 weeks ended June 18, 2005, up $6.3 million compared to $228.2 million for the 24 weeks ended June 19, 2004. Same site funeral revenue was $233.5 million for the 24 weeks ended June 18, 2005, up $6.4 million compared to $227.1 million for the 24 weeks ended June 19, 2004. The increase in same site performance was largely due to an increase in the average funeral revenue per service of $122 or 3.0%. Funeral gross margin decreased to 21.3% for the 24 weeks ended June 18, 2005, compared to 22.7% for the 24 weeks ended June 19, 2004. The decrease was primarily due to increased wages, training and advertising costs related to the Company's expanded field management structure and investment in programs designed to build local brand awareness and generate future growth. Cemetery revenue for the 24 weeks ended June 18, 2005, was $82.2 million, $7.4 million, or 9.9% higher than $74.8 million for the 24 weeks ended June 19, 2004. The increase was due primarily to higher pre-need space sales at the Company's Rose Hills subsidiary, combined with an overall increase in the number of cemetery interments. Cemetery gross margin was 15.1% for the 24 weeks ended June 18, 2005, compared to 13.9% for the 24 weeks ended June 19, 2004. The increase was due primarily to increased space sales and cemetery interments. Insurance revenue was $43.9 million for the 24 weeks ended June 18, 2005, compared to $36.1 million for the 24 weeks ended June 19, 2004. Insurance revenue increased primarily due to increases in premiums. Insurance gross margin increased to 4.8% for the 24 weeks ended June 18, 2005, compared to 3.9% for the 24 weeks ended June 19, 2004, primarily as a result of the revenue increase. General and administrative expenses totaled $12.3 million for the 24 weeks ended June 18, 2005 compared to $21.3 million for the 24 weeks ended June 19, 2004. The decrease is primarily due to the reversal of a $10.9 million allowance for doubtful accounts related to the collection subsequent to June 18, 2005 of notes receivable and a $0.9 million reduction of an accrual on the settlement of a legal matter relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a trustee A user or group of users that has been given access rights to files on a network server. See also TRUSTe. fee dispute, partially offset by a $1.0 million retirement allowance accrual in the 24 weeks ended June 18, 2005. The amounts in the 24 weeks ended June 19, 2004 include a $0.9 million legal claim accrual reversal and $1.2 million for corporate receivable recoveries that were previously fully reserved against. For the 24 weeks ended June 18, 2005, interest expense was $14.5 million, a decrease of $4.3 million compared to the 24 weeks ended June 19, 2004, reflecting the effect of principal repayments and lower interest rates compared to the corresponding period in 2004. For the 24 weeks ended June 18, 2005, net income tax expense was $18.2 million, compared to net income tax expense of $7.8 million for the 24 weeks ended June 19, 2004. The effective tax rate varied from the statutory tax rate in 2005 because in certain jurisdictions, there was a decrease in the valuation allowance for which the benefit has not been recognized in income tax expense. Net income from continuing operations was $26.9 million or $0.67 basic and $0.65 diluted earnings per share, for the 24 weeks ended June 18, 2005, compared to net income of $14.5 million, or $0.36 basic and $0.35 diluted earnings per share, for the 24 weeks ended June 19, 2004. Pre-need funeral and cemetery contracts written during the 24 weeks ended June 18, 2005, totaled $90.3 million and $45.8 million, respectively. For the 24 weeks ended June 19, 2004, pre-need funeral and cemetery contracts written totaled $84.4 million and $39.2 million, respectively. The Company is continuing its program to increase pre-need sales. The Company believes that pre-need sales are an important part of building the foundation for future revenue. Discontinued Operations For the 24 weeks ended June 18, 2005, loss from discontinued operations, net of tax, was $1.7 million, or $0.04 basic and diluted loss per share compared to a loss of $16.1 million or $0.40 basic and diluted loss per share for the 24 weeks ended June 19, 2004. Company Overview Alderwoods Group is the second largest operator of funeral homes and cemeteries This is a list of famous cemeteries, mausoleums and other places people are buried, world-wide. It may never be fully completed or, depending on its its nature, it may be that it can never be completed. However, new and revised entries in the list are always welcome. in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , based upon total revenue and number of locations. As of June 18, 2005, the Company operated 623 funeral homes, 73 cemeteries and 60 combination funeral home and cemetery locations throughout North America. The Company provides funeral and cemetery services and products on both an at-need and pre-need basis. In support of the pre-need business, the Company operates insurance subsidiaries that provide customers with a funding mechanism for the pre-arrangement of funerals. For more information about the Company's results, readers are directed to the Company's Form 10-Q Form 10-Q See 10-Q. for the quarter ended June 18, 2005, which will be filed with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission (SEC) on July July: see month. 25, 2005, and will be available in PDF (Portable Document Format) The de facto standard for document publishing from Adobe. On the Web, there are countless brochures, data sheets, white papers and technical manuals in the PDF format. format through the Company's website (www.alderwoods.com). Basis of Presentation The Company's financial results discussed in this media release are presented in U.S. dollars, and all accounting information is presented on the basis of United States generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . The Company's fiscal year ends on the Saturday Saturday: see week; Sabbath. nearest to the last day of December December: see month. in each year (whether before or after such date).During 2005, the Company's first, second and fourth fiscal quarters each consist of 12 weeks and the third fiscal quarter consists of 16 weeks. The second fiscal quarter of 2005 ended on June 18, 2005. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain statements contained in this press release, including, but not limited to, information regarding the status and progress of the Company's operating activities, the plans and objectives of the Company's management, assumptions regarding the Company's future performance and plans, and any financial guidance provided, as well as certain information in other filings with the SEC and elsewhere are forward-looking statements within the meaning of Section 27A(i) of the Securities Act of 1933 and Section 21E(i) of the Securities Exchange Act of 1934. The words "believe," "may," "will," "estimate," "continues," "anticipate," "intend,""expect" and similar expressions identify these forward-looking statements. These forward-looking statements are made subject to certain risks and uncertainties that could cause actual results to differ materially from those stated, including the following: uncertainties associated with future revenue and revenue growth; the impact of the Company's significant leverage on its operating plans; the ability of the Company to service its debt; the Company's ability to attract, train and retain an adequate number of sales people; uncertainties associated with the volume and timing of pre-need sales of funeral and cemetery services and products; variances in death rates; variances in the use of cremation cremation, disposal of a corpse by fire. It is an ancient and widespread practice, second only to burial. It has been found among the chiefdoms of the Pacific Northwest, among Northern Athapascan bands in Alaska, and among Canadian cultural groups. ; and various other uncertainties associated with the funeral service industry and the Company's operations in particular, which are referred to in the Company's periodic reports filed with the SEC, especially under the heading "Forward-Looking Statements and Risk Factors" in the Company's Quarterly Report on Form 10-Q for the 12 weeks ended June 18, 2005. The Company undertakes no obligation to publicly release any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unanticipated events. Conference Call Alderwoods Group will host a conference call today, Monday Monday: see week. , July 25, 2005, at 11:00 a.m. eastern time. A question and answer session will follow brief remarks by Paul Houston, President and CEO, and Ken Sloan Sloan , John French 1871-1951. American painter whose scenes of urban life include Sunday, Women Drying Their Hair (1912). , Executive Vice President and Chief Financial Officer. The toll-free conference dial-in number for U.S. and Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. listeners is 1.800.428.5596 and for local or international participants is 1.416.641.6659. Interested parties may listen to the audio webcast via the Alderwoods Group website at http://www.alderwoods.com. A telephone replay will be accessible until midnight on August 8, 2005, by dialing 1.800.558.5253 or 1.416.626.4100 and quoting reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number 21251530. An archived replay of the webcast will also be available through the Alderwoods Group website at http://www.alderwoods.com.
ALDERWOODS GROUP, INC.
Consolidated Statements of Operations (Unaudited)
Expressed in thousands of dollars except per share amounts and number
of shares
12 Weeks Ended 24 Weeks Ended
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June 18, June 19, June 18, June 19,
2005 2004 2005 2004
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Revenue
Funeral $ 110,501 $ 106,306 $ 234,514 $ 228,247
Cemetery 43,914 38,271 82,218 74,827
Insurance 22,363 17,704 43,931 36,110
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176,778 162,281 360,663 339,184
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Costs and expenses
Funeral 90,416 83,443 184,529 176,500
Cemetery 36,640 32,834 69,824 64,384
Insurance 21,532 17,219 41,818 34,723
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148,588 133,496 296,171 275,607
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28,190 28,785 64,492 63,577
General and
administrative expenses 1,702 9,559 12,346 21,257
Provision for asset
impairment (408) (1,499) (1,627) 572
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Income from operations 26,896 20,725 53,773 41,748
Interest on
long-term debt 7,013 13,499 14,528 18,763
Other expense (income), net (44) 1,776 (5,843) 678
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Income before income
taxes 19,927 5,450 45,088 22,307
Income taxes 7,001 2,185 18,193 7,773
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Net income from
continuing operations 12,926 3,265 26,895 14,534
Discontinued operations
loss from discontinued
operations (579) (8,116) (1,412) (17,218)
Income taxes 266 1,625 266 (1,046)
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loss from discontinued
operations (845) (9,741) (1,678) (16,172)
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Net income (loss) $ 12,081 $ (6,476) $ 25,217 $ (1,638)
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Basic earnings per
Common share:
Net income from
continuing operations $ 0.32 $ 0.08 $ 0.67 $ 0.36
Income (loss) from
discontinued operations (0.02) (0.24) (0.04) (0.40)
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Net income (loss) $ 0.30 $ (0.16) $ 0.63 $ (0.04)
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Diluted earnings per
Common share:
Net income from
continuing operations $ 0.31 $ 0.08 $ 0.65 $ 0.35
Income (loss) from
discontinued operations (0.02) (0.24) (0.04) (0.39)
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Net income (loss) $ 0.29 $ (0.16) $ 0.61 $ (0.04)
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Basic weighted average
number of shares
outstanding (thousands) 40,108 39,997 40,078 39,993
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Diluted weighted average
number of shares
outstanding (thousands) 41,390 41,297 41,375 41,169
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ALDERWOODS GROUP, INC.
Consolidated Balance Sheets
Expressed in thousands of dollars
June 18, January 1,
2005 2005
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(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 11,990 $ 9,379
Receivables, net of allowances 72,510 66,445
Inventories 16,914 16,730
Other 9,416 27,622
Assets held for sale - 82,056
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110,830 202,232
Pre-need funeral receivables and trust
investments 333,931 336,030
Pre-need cemetery receivables and trust
investments 307,354 311,654
Cemetery property 117,589 119,042
Property and equipment 534,200 540,255
Insurance invested assets 271,663 250,785
Deferred income tax assets 7,536 8,161
Goodwill 321,075 321,134
Cemetery perpetual care trust investments 245,930 246,052
Other assets 42,593 37,082
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$ 2,292,701 $ 2,372,427
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
liabilities $ 129,995 $ 140,662
Current maturities of long-term debt 2,620 9,083
Liabilities associated with assets held
for sale - 61,428
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132,615 211,173
Long-term debt 407,247 454,557
Deferred pre-need funeral and cemetery
contract revenue 88,966 82,971
Non-controlling interest in funeral and
cemetery trusts 547,999 553,617
Insurance policy liabilities 238,164 214,745
Deferred income tax liabilities 32,503 20,357
Other liabilities 20,899 21,954
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1,468,393 1,559,374
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Non-controlling interest in perpetual care
trusts 244,604 257,141
Stockholders' equity
Common stock 402 400
Capital in excess of par value 741,648 740,210
Accumulated deficit (188,371) (213,588)
Accumulated other comprehensive income 26,025 28,890
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579,704 555,912
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$ 2,292,701 $ 2,372,427
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ALDERWOODS GROUP, INC.
Consolidated Statements of Cash Flows (Unaudited)
Expressed in thousands of dollars
12 Weeks Ended 24 Weeks Ended
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June 18, June 19, June 18, June 19,
2005 2004 2005 2004
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CASH PROVIDED BY
(APPLIED TO)
Operations
Net income (loss) $ 12,081 $ (6,476) $ 25,217 $ (1,638)
loss from
discontinued
operations, net
of tax 845 9,741 1,678 16,172
Items not affecting cash
Depreciation and
amortization 10,958 8,947 21,095 18,100
Amortization of debt
issue costs 745 777 1,650 1,420
Insurance policy
benefit reserves 12,088 9,076 22,652 17,587
Provision for asset
impairment (408) (1,499) (1,627) 572
Gain on disposal of
business assets (72) (409) (5,903) (1,495)
Deferred income taxes 6,303 (619) 12,749 4,953
Premium on long-term
debt repurchase - 1,110 282 1,110
Other, including net
changes in other
non-cash balances (13,824) 12,998 (6,852) (18,232)
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Net cash provided by
continuing operations 28,716 33,646 70,941 38,549
Net cash provided by
(used in) discontinued
operations (811) 6,488 (601) 7,367
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27,905 40,134 70,340 45,916
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Investing
Proceeds on disposition
of business assets 670 1,374 11,158 12,088
Purchase of property
and equipment (11,709) (5,310) (16,314) (9,279)
Purchase of insurance
invested assets (17,170) (12,793) (65,231) (36,857)
Proceeds on disposition
and maturities of
insurance invested
assets 9,712 7,952 47,491 23,602
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Net cash provided
by continuing
operations (18,497) (8,777) (22,896) (10,446)
Net cash provided
by (used in)
discontinued
operations 6,744 751 7,906 (126)
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(11,753) (8,026) (14,990) (10,572)
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Financing
Increase in
long-term debt - - 5,151 24,675
Repayment of
long-term debt (22,136) (19,272) (59,208) (53,296)
Issuance of common
stock 1,107 9 1,375 9
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Net cash provided by
continuing
operations (21,029) (19,263) (52,682) (28,612)
Net cash provided by
discontinued
operations (11) (48) (57) (138)
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(21,040) (19,311) (52,739) (28,750)
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Increase (decrease)
in cash and cash
equivalents (4,888) 12,797 2,611 6,594
Cash and cash
equivalents, beginning
of period 16,878 35,409 9,379 41,612
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Cash and cash
equivalents, end of
period $ 11,990 $ 48,206 $ 11,990 $ 48,206
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