Alderwoods Group Reports Third 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. -- 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 third 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 16 weeks and 40 weeks ended October October: see month. 8, 2005. For the 16 weeks ended October 8, 2005, the Company reported total net income of $6.9 million, or $0.17 basic earnings per share, on revenues of $214.8 million, compared with total net loss of $13.4 million, or $0.33 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 $210.8 million, for the 16 weeks ended October 9, 2004. Highlights of the Third Quarter 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 --Revenue increased 1.9% to $214.8 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 declined 2.8% to 32,070 --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 2.0% to $4,109 --Funeral revenue decreased 1.9% to $133.2 million --Cemetery revenue increased 7.2% to $52.5 million --Insurance revenue increased 12.0% to $29.1 million --Net income increased to $6.9 million --Basic earnings per share increased to $0.17; 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 increased to $0.16 --Pre-need funeral contracts written increased 13.0% to $59.7 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 9.8% to $28.9 million --Total debt decreased by $23.1 million in the quarter For the 40 weeks ended October 8, 2005, the Company reported total net income of $32.1 million, or $0.79 basic and $0.77 diluted earnings per share, on revenues of $575.4 million, compared with total net loss of $15.0 million, or $0.38 basic and diluted loss per share, on revenues of $550.0 million, for the 40 weeks ended October 9, 2004. Highlights of the Year-to-Date from Continuing Operations --Revenue increased 4.6% to $575.4 million --Number of same site funeral services performed declined 1.1% to 87,162 --Same site average revenue per funeral increased 2.6% to $4,137 --Funeral revenue increased 1.0% to $367.7 million --Cemetery revenue increased 8.8% to $134.7 million --Insurance revenue increased 17.6% to $73.0 million --Net income increased to $33.8 million --Basic earnings per share increased to $0.83; Diluted earnings per share increased to $0.81 --Pre-need funeral contracts written increased 9.3% to $150.0 million --Pre-need cemetery contracts written increased 14.0% to $74.7 million --Total debt decreased by $76.8 million in the year-to-date "The third quarter was a challenging one for Alderwoods, made even more so by the impact of Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. on our properties and
employees in the Gulf Coast," 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.
EconomyThe 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. "Although we achieved solid growth in the cemetery and insurance revenue segments, and our pre-need and cemetery sales also performed well, our funeral revenues were soft, driven by the number of funeral services performed in the quarter." Mr. Houston continued, "It appears that the investments we are making to increase the number of funeral services are taking longer than anticipated to show results. In the long term, we believe that our efforts in areas such as training, recruiting, refurbishing our facilities, and advertising and promotion will contribute to Alderwoods' growth. We will continue to measure the results of our spending strategies and plan to stay the course with our investments through the balance of 2005, but will reassess reassess Verb to reconsider the value or importance of reassessment n Verb 1. reassess - revise or renew one's assessment reevaluate these expenditures at the end of this year." Update on Impact of Hurricane Katrina In a press release issued on September September: see month. 21, 2005, Alderwoods Group commented on the impact of Hurricane Katrina on its operations. The Company operates 30 funeral homes, four 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. and a limousine company in areas of Louisiana CODE, OF LOUISIANA. In 1822, Peter Derbigny, Edward Livingston, and Moreau Lislet, were selected by the legislature to revise and amend the civil code, and to add to it such laws still in force as were not included therein. and Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by that were materially affected by the hurricane hurricane, tropical cyclone in which winds attain speeds greater than 74 mi (119 km) per hr. Wind speeds reach over 190 mi (289 km) per hr in some hurricanes. that struck on August 29, 2005. Alderwoods experienced damages and business interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. at most of these locations. Of the 30 funeral homes, seven funeral homes experienced significant damage and are not expected to be in operation by the end of the year. All four cemeteries are in operation. The limousine company that had provided services to both the Company's funeral operations and other third parties experienced significant damage to its fleet of vehicles and will not be resuming operations. New vehicles will be placed at the Company's funeral operations. Commented Mr. Houston, "We are proud that in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the impact of the hurricane on our operations and our people, we continued to assist and support families in need throughout the recovery effort." Since Hurricane Katrina, Alderwoods has continued to serve families in the Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. and Mississippi Gulf Coast The Mississippi Gulf Coast refers to the three Mississippi counties which lie on the Gulf of Mexico: Hancock County, Mississippi, Harrison County, Mississippi, and Jackson County, Mississippi. markets through
locations that remain operational. However, the business interruption
led to a decline in funeral revenues in the affected area. Revenue in
the third quarter from these markets declined by $1.2 million and the
number of same site funeral services performed declined 7.4% to 1,368.
Alderwoods took action to assess the damages and quickly put the majority of its affected facilities back into operation. The Company, along with its insurance companies, is continuing to assess and estimate the extent of the damages. In the third quarter, the Company has recorded its best estimate of all the costs associated with Hurricane Katrina, resulting in an impact on funeral and cemetery costs of $2.7 million and $0.9 million respectively. Although the Company has business interruption insurance Noun 1. business interruption insurance - insurance that provides protection for the loss of profits and continuing fixed expenses resulting from a break in commercial activities due to the occurrence of a peril that allows the recovery of operating costs operating costs npl → gastos mpl operacionales and lost profits, it continues to record operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as they are incurred. Alderwoods is preparing its analysis in support of a business interruption claim. Potential proceeds from this claim cannot currently be reasonably estimated, and therefore no receivable or recovery has been recorded. The Company's insurance subsidiary Mayflower Mayflower, ship Mayflower, ship that in 1620 brought the Pilgrims from England to New England. She set out from Southampton in company with the Speedwell, National Life Insurance Company is also located in New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded . While the Mayflower offices were not damaged by the hurricane, the building site became inaccessible inaccessible Surgery adjective Unreachable; referring to a lesion that unmanageable by standard surgical techniques–eg, lesions deep in the brain or adjacent to vital structures–ie, not accessible. See Accessible. . Mayflower was temporarily relocated re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. to Alderwoods Group's offices in Cincinnati, Ohio “Cincinnati” redirects here. For other uses, see Cincinnati (disambiguation). Cincinnati is a city in the U.S. state of Ohio and the county seat of Hamilton County. where it continued to issue policies, pay claims, and provide service to its policyholders. The Mayflower office fully resumed operations from New Orleans as of November November: see month. 7, 2005. The relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. has not significantly affected the Company's operating results. Significant Activities in the Quarter Implemented Alderwoods Rooms: The Company continued its investment in Alderwoods Rooms in the third quarter, implementing 38 of the arrangement rooms in funeral homes throughout its network. Alderwoods Group expects the total number of Alderwoods Rooms across its network to be more than 325 by the end of fiscal 2005. Opened New Combination Facility: Alderwoods Group opened a new combination facility in South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. . The Company is focused on developing key markets and locations with 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. potential, with a focus on combination locations and funeral homes. Alderwoods Group expects to open six new locations before the end of fiscal 2006. Continued Debt Reduction: Alderwoods Group reduced its 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. by $23.1 million in the quarter and $76.8 million in the year-to-date. At October 8, 2005, total debt was $386.8 million and cash and cash equivalents was $6.3 million. Financial Summary 16 Weeks Ended October 8, 2005 Overview For the 16 weeks ended October 8, 2005, total net income was $6.9 million, an increase of $20.3 million compared to a loss of $13.4 million for the 16 weeks ended October 9, 2004. Basic earnings per share were $0.17 for the 16 weeks ended October 8, 2005 compared to a loss of $0.33 for the 16 weeks ended October 9, 2004. Diluted earnings per share were $0.16 for the 16 weeks ended October 8, 2005 compared to a loss of $0.33 in the year-ago period. Continuing Operations Total revenue for the 16 weeks ended October 8, 2005, was $214.8 million compared to $210.8 million for the 16 weeks ended October 9, 2004, an increase of $4.0 million, or 1.9%. Increases in the cemetery and insurance segments were partially offset by a decrease in funeral revenue. Funeral revenue was $133.2 million for the 16 weeks ended October 8, 2005, a decrease of $2.6 million compared to $135.8 million for the 16 weeks ended October 9, 2004. Same site funeral revenue was $131.8 million for the 16 weeks ended October 8, 2005, a decrease of $1.0 million compared to $132.8 million for the 16 weeks ended October 9, 2004. The decrease in same site performance was largely due to a decrease in the number of funeral services performed of 2.8% offset by an increase in the average funeral revenue per service of $82 or 2.0%. Funeral gross margin decreased to 12.2% for the 16 weeks ended October 8, 2005, compared to 18.6% for the 16 weeks ended October 9, 2004. The decrease was primarily due to (i) 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; (ii) a $2.7 million accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. for expected insurance deductibles and expenses not expected to be reimbursed under the Company's insurance policy for damages at locations affected by Hurricane Katrina offset by $1.0 million of lower insurance costs compared to the prior year, and (iii) a $1.3 million accrual for litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. claims. Cemetery revenue for the 16 weeks ended October 8, 2005, was $52.5 million, $3.5 million or 7.2%, higher than $49.0 million for the 16 weeks ended October 9, 2004. The increase was primarily due 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 10.1% for the 16 weeks ended October 8, 2005, compared to 11.9% for the 16 weeks ended October 9, 2004. The decrease was due to a $0.9 million accrual for expected insurance deductibles and expenses not expected to be reimbursed under the Company's insurance policy for damages at locations affected by Hurricane Katrina and a $0.4 million accrual for litigation claims. Insurance revenue was $29.1 million for the 16 weeks ended October 8, 2005, compared to $26.0 million for the 16 weeks ended October 9, 2004. Insurance revenue increased primarily due to increases in premiums. Insurance gross margin decreased to 4.6% for the 16 weeks ended October 8, 2005, compared to 6.1% for the 16 weeks ended October 9, 2004, primarily as a result of a decrease in investment gains of $0.7 million. General and administrative expenses totaled $19.2 million for the 16 weeks ended October 8, 2005 compared to $14.9 million for the 16 weeks ended October 9, 2004. The increase is primarily due to increased wages, consulting and audit expenses of $1.1 million related to Sarbanes-Oxley compliance, increased accrual for management incentive bonuses of $2.3 million and a $0.5 million foreign exchange impact from Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents based support center costs. For the 16 weeks ended October 8, 2005, interest expense was $9.0 million, a decrease of $39.7 million compared to the 16 weeks ended October 9, 2004, reflecting the effect of principal repayments and lower interest rates compared to the corresponding period in 2004 which also included $35.3 million of refinancing Refinancing An extension and/or increase in amount of existing debt. costs. An income tax recovery of $12.3 million was recorded in the 16 weeks ended October 8, 2005, compared to $6.2 million for the 16 weeks ended October 9, 2004. During the 16 weeks ended October 8, 2005, the Company recorded an adjustment to bring the year-to-date effective tax rate before the above benefit to 45%. The Company also recorded a non-cash resolution of an outstanding tax liability, reducing tax expense by $12.6 million. Pre-need funeral and cemetery contracts written during the 16 weeks ended October 8, 2005, totaled $59.7 million and $28.9 million, respectively. For the 16 weeks ended October 9, 2004, pre-need funeral and cemetery contracts written totaled $52.9 million and $26.3 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. Free cash flow from continuing operations was $17.1 million for the 16 weeks ended October 8, 2005, compared to free cash flow of $13.1 million for the 16 weeks ended October 9, 2004. Free cash flow is a non-GAAP financial measure. See the Company's definition of free cash flow and reconciliation of net cash provided by continuing operations to free cash flow in the "Non-GAAP Financial Measure" section of this press release. Financial Summary 40 Weeks Ended October 8, 2005 Overview For the 40 weeks ended October 8, 2005, total net income was $32.1 million, an increase of $47.1 million compared to a loss of $15.0 million for the 40 weeks ended October 9, 2004. Basic earnings per share were $0.79 for the 40 weeks ended October 8, 2005 compared to a loss of $0.38 for the 40 weeks ended October 9, 2004. Diluted earnings per share were $0.77 for the 40 weeks ended October 8, 2005 compared to a loss of $0.38 in the year-ago period. Continuing Operations Total revenue for the 40 weeks ended October 8, 2005, was $575.4 million compared to $550.0 million for the 40 weeks ended October 9, 2004, an increase of $25.4 million, or 4.6%. Revenue increased in each of the business segments - funeral, cemetery and insurance. Funeral revenue was $367.7 million for the 40 weeks ended October 8, 2005, up $3.7 million compared to $364.0 million for the 40 weeks ended October 9, 2004. Same site funeral revenue was $360.6 million for the 40 weeks ended October 8, 2005, up $5.4 million compared to $355.2 million for the 40 weeks ended October 9, 2004. The increase in same site performance was largely due to an increase in the average funeral revenue per service of $105 or 2.6% offset by a decrease in the number of funeral services performed of 1.1%. Funeral gross margin decreased to 18.0% for the 40 weeks ended October 8, 2005, compared to 21.2% for the 40 weeks ended October 9, 2004. The decrease was primarily due to (i) 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; (ii) a $2.7 million accrual for expected insurance deductibles and expenses not expected to be reimbursed under the Company's insurance policy for damages at locations affected by Hurricane Katrina offset by $1.0 million of lower insurance costs compared to the prior year, and (iii) a $1.3 million accrual for litigation claims. Cemetery revenue for the 40 weeks ended October 8, 2005, was $134.7 million, $10.9 million, or 8.8% higher than $123.8 million for the 40 weeks ended October 9, 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 13.1% for the 40 weeks ended October 8, 2005, compared to 13.2% for the 40 weeks ended October 9, 2004. The decrease in gross margin was primarily due to a $0.9 million accrual for expected insurance deductibles and expenses not expected to be reimbursed under the Company's insurance policy for damages at locations affected by Hurricane Katrina and a $0.4 million accrual for litigation claims. Insurance revenue was $73.0 million for the 40 weeks ended October 8, 2005, compared to $62.1 million for the 40 weeks ended October 9, 2004. Insurance revenue increased primarily due to increases in premiums. Insurance gross margin decreased slightly to 4.7% for the 40 weeks ended October 8, 2005, compared to 4.8% for the 40 weeks ended October 9, 2004. General and administrative expenses totaled $31.5 million for the 40 weeks ended October 8, 2005 compared to $36.2 million for the 40 weeks ended October 9, 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 of notes receivable, 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, offset by increased wages, consulting and audit expenses of $2.5 million related to Sarbanes-Oxley compliance, increased support center facility costs of $1.0 million, an accrual for executive retirement allowances of $1.1 million and a $0.7 million foreign exchange impact from Canadian dollar based support center costs. The general and administrative expenses in the 40 weeks ended October 9, 2004 include a legal claim accrual reversal of $0.9 million and recoveries of corporate receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed that were previously fully reserved against for $1.2 million. For the 40 weeks ended October 8, 2005, interest expense was $23.5 million, a decrease of $44.0 million compared to the 40 weeks ended October 9, 2004, reflecting the effect of principal repayments and lower interest rates compared to the corresponding period in 2004 which also included $29.3 million of net refinancing costs. For the 40 weeks ended October 8, 2005, income tax expense was $5.8 million, compared to $1.6 million for the 40 weeks ended October 9, 2004. During the 40 weeks ended October 8, 2005 the Company recorded a non-cash resolution of an outstanding tax liability, reducing tax expense by $12.6 million. The effective tax rate before the above benefit was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 45%. Net income from continuing operations was $33.8 million or $0.83 basic and $0.81 diluted earnings per share, for the 40 weeks ended October 8, 2005, compared to a net loss of $10.0 million, or $0.25 basic and $0.25 diluted earnings per share, for the 40 weeks ended October 9, 2004. Pre-need funeral and cemetery contracts written during the 40 weeks ended October 8, 2005, totaled $150.0 million and $74.7 million, respectively. For the 40 weeks ended October 9, 2004, pre-need funeral and cemetery contracts written totaled $137.3 million and $65.5 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. Free cash flow from continuing operations was $63.8 million for the 40 weeks ended October 8, 2005, compared to free cash flow of $28.6 million for the 40 weeks ended October 9, 2004. Free cash flow is a non-GAAP financial measure. See the Company's definition of free cash flow and reconciliation of net cash provided by continuing operations to free cash flow in the "Non-GAAP Financial Measure" section of this press release. Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. For the 40 weeks ended October 8, 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 $5.0 million or $0.13 basic and diluted loss per share for the 40 weeks ended October 9, 2004. The Company had no discontinued operations in the 16 weeks ended October 8, 2005. Non-GAAP Financial Measure Free Cash Flow Free cash flow is a non-GAAP financial measure and, while utilized by other companies, may be calculated differently by other companies. The Company considers free cash flow a useful measure for management and investors of the Company's financial condition and liquidity as well as the Company's ability to generate cash for use in reducing debt or growing the business. While the Company considers the measurement of free cash flow useful, it should not be considered in isolation, or as an alternative to net cash provided by continuing operations or any other performance measures calculated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . The Company defines free cash flow as net cash provided by continuing operations less restricted cash from our continuing insurance operations and less maintenance capital expenditures. Net cash provided by continuing operations includes our continuing insurance operations, which is excluded from free cash flow due to the regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. restrictions on moving cash out of the insurance operations. Net cash provided by the continuing insurance operations is typically invested in insurance invested assets. Maintenance capital expenditures include those expenditures considered necessary to maintain our existing facilities in a condition consistent with the Company's standards and expected useful lives. Maintenance capital expenditures exclude the construction of new facilities, whether or not on an existing Company cemetery, and the development of cemetery property for sale. The following table provides a reconciliation of net cash provided by operating activities and free cash flow, as defined by the Company:
16 Weeks Ended 40 Weeks Ended
October 8, October 9, October 8, October 9,
2005 2004 2005 2004
(millions of dollars) (millions of dollars)
Net cash provided by
continuing operations $45.9(1) $37.3 $116.8(1,2) $75.8
Restricted cash from
continuing insurance
operations (18.1) (17.6) (35.9) (30.9)
Maintenance capital
expenditures (10.7) (6.6) (17.1) (16.3)
---------------------------------------------
Free cash flow $17.1 $13.1 $63.8 $28.6
---------------------------------------------
---------------------------------------------
(1) Includes $11.5 million received upon collection of notes receivable. (2) Includes $16.1 million received as collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although for liability lines of insurance which was replaced with a letter of credit and $9.1 million paid to U.S. Trustee in connection with bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most fees. Company Overview Alderwoods Group is the second largest operator of funeral homes and cemeteries 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 October 8, 2005, the Company operated 613 funeral homes, 72 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 October 8, 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 November 16, 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 unless otherwise indicated. 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 third fiscal quarter of 2005 ended on October 8, 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 16 weeks ended October 8, 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, Wednesday Wednesday: see week. , November 16, 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 1.800.470.5906 and for local or international participants is 1.416.620.2013. 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 November 30, 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 21265745. 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
16 Weeks Ended 40 Weeks Ended
----------------------- -----------------------
October 08, October 09, October 08, October 09,
2005 2004 2005 2004
----------- ----------- ----------- -----------
Revenue
Funeral $133,158 $135,797 $367,672 $364,044
Cemetery 52,519 48,979 134,737 123,806
Insurance 29,105 25,994 73,036 62,104
----------- ----------- ----------- -----------
214,782 210,770 575,445 549,954
----------- ----------- ----------- -----------
Costs and expenses
Funeral 116,927 110,500 301,457 287,000
Cemetery 47,202 43,135 117,026 107,519
Insurance 27,752 24,399 69,570 59,123
----------- ----------- ----------- -----------
191,881 178,034 488,053 453,642
----------- ----------- ----------- -----------
22,901 32,736 87,392 96,312
General and
administrative expenses 19,192 14,909 31,539 36,166
Provision for asset
impairment 254 (159) (1,373) 413
----------- ----------- ----------- -----------
Income from operations 3,455 17,986 57,226 59,733
Interest on long-term
debt 8,967 48,731 23,495 67,494
Other expense (income),
net (68) (27) (5,910) 651
----------- ----------- ----------- -----------
Income (loss) before
income taxes (5,444) (30,718) 39,641 (8,412)
Income tax expense
(recovery) (12,349) (6,180) 5,844 1,593
----------- ----------- ----------- -----------
Net income (loss) from
continuing operations 6,905 (24,538) 33,797 (10,005)
Discontinued operations
Income (loss) from
discontinued operations - 18,707 (1,412) 1,489
Income taxes - 7,548 266 6,502
----------- ----------- ----------- -----------
Net income (loss) from
discontinued operations - 11,159 (1,678) (5,013)
----------- ----------- ----------- -----------
Net income (loss) $6,905 $(13,379) $32,119 $(15,018)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Basic earnings per
Common share:
Net income (loss) from
continuing operations $0.17 $(0.61) $0.83 $(0.25)
Net income (loss) from
discontinued operations - 0.28 (0.04) (0.13)
----------- ----------- ----------- -----------
Net income (loss) $0.17 $(0.33) $0.79 $(0.38)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Diluted earnings per
Common share:
Net income (loss) from
continuing operations $0.16 $(0.61) $0.81 $(0.25)
Net income (loss) from
discontinued operations - 0.28 (0.04) (0.13)
----------- ----------- ----------- -----------
Net income (loss) $0.16 $(0.33) $0.77 $(0.38)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Basic weighted average
number of shares
outstanding (thousands) 40,456 40,003 40,456 39,997
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Diluted weighted average
number of shares
outstanding (thousands) 42,051 40,003 41,721 39,997
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
ALDERWOODS GROUP, INC.
Consolidated Balance Sheets
Expressed in thousands of dollars
October 8, January 1,
2005 2005
----------- ----------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $6,333 $9,379
Receivables, net of allowances 59,318 66,445
Inventories 15,972 16,730
Other 10,530 27,622
Assets held for sale - 82,056
----------- ----------
92,153 202,232
Pre-need funeral receivables and trust
investments 334,504 336,030
Pre-need cemetery receivables and trust
investments 304,202 311,654
Cemetery property 115,732 119,042
Property and equipment 541,047 540,255
Insurance invested assets 284,044 250,785
Deferred income tax assets 11,086 8,161
Goodwill 321,101 321,134
Cemetery perpetual care trust investments 245,327 246,052
Other assets 42,372 37,082
----------- ----------
$2,291,568 $2,372,427
----------- ----------
----------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $120,057 $140,662
Current maturities of long-term debt 2,490 9,083
Liabilities associated with assets held for sale - 61,428
----------- ----------
122,547 211,173
Long-term debt 384,296 454,557
Deferred pre-need funeral and cemetery
contract revenue 97,494 82,971
Non-controlling interest in funeral and
cemetery trusts 544,650 553,617
Insurance policy liabilities 255,198 214,745
Deferred income tax liabilities 31,830 20,357
Other liabilities 21,143 21,954
----------- ----------
1,457,158 1,559,374
----------- ----------
Non-controlling interest in perpetual care trusts 245,569 257,141
Stockholders' equity
Common stock 405 400
Capital in excess of par value 743,131 740,210
Accumulated deficit (181,469) (213,588)
Accumulated other comprehensive income 26,774 28,890
----------- ----------
588,841 555,912
----------- ----------
$2,291,568 $2,372,427
----------- ----------
----------- ----------
ALDERWOODS GROUP, INC.
Consolidated Statements of Cash Flows (Unaudited)
Expressed in thousands of dollars
16 Weeks Ended 40 Weeks Ended
----------------------- -----------------------
October 08, October 09, October 08, October 09,
2005 2004 2005 2004
----------- ----------- ----------- -----------
CASH PROVIDED BY (APPLIED TO)
Operations
Net income (loss) $6,905 $(13,379) $32,119 $(15,018)
Income (loss) from
discontinued operations,
net of tax - (11,159) 1,678 5,013
Items not affecting cash
Depreciation and
amortization 13,778 12,956 34,873 31,057
Amortization of debt
issue costs 915 4,716 2,565 6,136
Insurance policy
benefit reserves 15,957 14,693 38,609 32,280
Provision for asset
impairment 254 (159) (1,373) 413
Gain on disposal of
business assets (165) (56) (6,068) (1,551)
Deferred income taxes (1,699) (5,723) 11,050 (770)
Premium on long-term
debt repurchase - 31,340 282 32,450
Other, including net
changes in other
non-cash balances 9,903 4,067 3,054 (14,166)
----------- ----------- ----------- -----------
Net cash provided by
continuing operations 45,848 37,296 116,789 75,844
Net cash provided by
(used in) discontinued
operations - 3,322 (601) 10,690
----------- ----------- ----------- -----------
45,848 40,618 116,188 86,534
----------- ----------- ----------- -----------
Investing
Proceeds on disposition
of business assets 3,757 2,455 14,916 14,542
Purchase of property
and equipment (15,507) (14,604) (31,823) (23,881)
Purchase of insurance
invested assets (24,794) (57,107) (90,025) (93,964)
Proceeds on disposition
and maturities of
insurance invested
assets 6,702 24,794 54,193 48,396
----------- ----------- ----------- -----------
Net cash used in
continuing operations (29,842) (44,462) (52,739) (54,907)
Net cash provided by
discontinued operations - 94,494 7,906 94,368
----------- ----------- ----------- -----------
(29,842) 50,032 (44,833) 39,461
----------- ----------- ----------- -----------
Financing
Increase in long-term
debt 47 365,224 5,199 389,899
Repayment of long-term
debt (23,111) (493,604) (82,320) (546,900)
Issuance of Common stock 1,401 47 2,777 56
----------- ----------- ----------- -----------
Net cash used in
continuing operations (21,663) (128,333) (74,344) (156,945)
Net cash used in
discontinued operations - (303) (57) (442)
----------- ----------- ----------- -----------
(21,663) (128,636) (74,401) (157,387)
----------- ----------- ----------- -----------
Decrease in cash and
cash equivalents (5,657) (37,986) (3,046) (31,392)
Cash and cash equivalents,
beginning of period 11,990 48,206 9,379 41,612
----------- ----------- ----------- -----------
Cash and cash equivalents,
end of period $6,333 $10,220 $6,333 $10,220
----------- ----------- ----------- -----------
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion