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SERVICE CORPORATION INTERNATIONAL REPORTS EARNINGS FOR SECOND QUARTER OF 1992

 SERVICE CORPORATION INTERNATIONAL REPORTS EARNINGS
 FOR SECOND QUARTER OF 1992
 HOUSTON, July 21 /PRNewswire/ -- Service Corporation International ("SCI") (NYSE: SRV) today reported net income for the three months ending June 30, 1992, of $19.9 million, a 22 percent increase over the second quarter of last year. Quarterly earnings per share increased to $.26 per share, a 13 percent increase. Per share earnings reflect a three-for-two stock split that was effective June 30, 1992. Revenues increased by $31.0 million, or 20 percent, to $187.1 million during the current quarter.
 For the six months ended June 30, 1992, net income increased 29 percent to $45.0 million and earnings per share increased 16 percent to $.59 per share.
 SCI Chairman R. L. Waltrip said, "Our formula for success is proven time and again. Our operating methods, coupled with our ongoing acquisition activity, continue to intensify SCI's overall performance."
 Waltrip added, "Our operating locations continue to perform remarkably well in our restructured environment. As our funeral homes and cemeteries become even more closely aligned we will realize more positive, long-term effects."
 SCI moved its cemetery division to its Houston headquarters from San Diego last year and organized six operating regions under a single- line management structure.
 "The climate for acquisitions continues to improve," Waltrip said. "We are seeing ample opportunities for growth in our existing markets, and we're encouraged by inquiries from new markets."
 Since the beginning of 1992 SCI has acquired 19 funeral homes and two cemeteries with annualized revenues of $22.5 million. SCI's most active year for acquisitions was 1991, with the addition of 164 funeral homes and 18 cemeteries.
 Second quarter results from the company's three operating segments are as follows:
 Funeral service revenues of $132.4 million were up 26 percent compared to 1991's second quarter with operating profit increasing to $39.4 million, up 17 percent. Acquisitions contributed largely to the funeral segment growth. Revenues from comparable operations, those firms owned by the company during the second quarter of both years, increased 2 percent despite a nearly 5 percent decline (2 percent year to date) in the actual number of funerals performed. Segment operating profit margin remained strong at just under 30 percent.
 Revenues for the company's cemetery segment improved 11 percent to $51.9 million. Operating profit increased 20 percent to $10.6 million, with operating margin improving to more than 20 percent. Again, acquisitions accounted for a majority of the cemetery segment's second quarter growth; however, since the beginning of the year, revenues from comparable cemeteries have increased 7 percent while costs at these locations increased just over 2 percent. Operating profit from these comparable locations has increased 25 percent year to date.
 Provident Services, Inc., the company's finance subsidiary, produced operating profit of $1.0 million, down from the $1.2 million generated in the second quarter last year. Segment margin increased to 35 percent. Provident is continuing its steady loan portfolio growth, replacing the earnings from its customers acquired by SCI last year.
 Service Corporation International is the largest owner and operator of funeral homes and cemeteries in the world, with 653 funeral homes and 165 cemetery operations serving 458 cities in 37 states, the District of Columbia and four Canadian provinces.
 SERVICE CORPORATION INTERNATIONAL
 Consolidated Statement of Income
 (Unaudited; in thousands, except per share amounts)
 Periods ended Six Months Three Months
 June 30 1992 1991 1992 1991
 Revenues:
 Funeral $278,333 $210,860 $132,449 $105,055
 Cemetery 104,549 89,884 51,942 46,959
 Financial services 4,963 8,812 2,708 4,063
 Total revenues 387,845 309,556 187,099 156,077
 Cost and expenses:
 Funeral 188,909 141,221 93,064 71,447
 Cemetery 80,936 72,648 41,313 38,123
 Financial services 3,328 6,242 1,750 2,852
 Total cost and expenses 273,173 220,111 136,127 112,422
 Total 114,672 89,445 50,972 43,655
 General and administrative
 expense (19,587) (16,725) (9,010) (8,799)
 Income from operations 95,085 72,720 41,962 34,856
 Interest expense (27,172) (20,293) (13,887) (10,609)
 Income from corporate
 investments 3,258 3,143 2,352 1,534
 Gain from dispositions 1,371 756 1,545 406
 Total (22,543) (16,394) (9,990) (8,669)
 Income before income
 taxes 72,542 56,326 31,972 26,187
 Provision for income
 taxes (27,500) (21,300) (12,100) (9,900)
 Net income available to
 common shareholders $ 45,042 $ 35,026 $ 19,872 $ 16,287
 Weighted average number
 of common shares (A) 76,711 69,306 76,667 69,527
 Earnings per share (A) $.59 $.51 $.26 $.23
 (A) -- Adjusted for 3-for-2 stock split on June 30, 1992.
 -0- 7/21/92
 /CONTACT: Jim Proctor of SCI, 713-525-9060; or Steve Frankel of Burson-Marsteller, 212-614-5062, for SCI/
 (SRV) CO: Service Corporation International ST: Texas IN: SU: ERN


GK-SM -- NY095 -- 1498 07/21/92 16:21 EDT
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Date:Jul 21, 1992
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