"An
advance directive is crucial for having control over your own
medical
care even if you become unable to make decisions or communicate.
Service Corporation International
to Present at Merrill Lynch Conference on April 21 2005; Updates 2005 Outlook for Accounting Change
No gain or loss is expected as a result of
this transaction as the asset values were
adjusted to fair market
value at December 31, 2004.
* Interest expense in 2005
is expected to be $98 to $102 million, of
which approximately $10 million is related to non
-cash amortization of
deferred loan costs. Important factors that could cause
us not to repurchase our shares include, among others,
unfavorable market conditions
, the market price of our common
stock, the nature of other investment opportunities
presented to
us from time to time, and the availability of funds necessary to
continue purchasing common stock. The reduction in
2005 compared to 2004
as a result of this payroll effect is
expected to occur in the first quarter of 2005.
federal income taxes in
2005 due to significant tax loss carry-forwards.demise ifpa
com/epg or ordered
by calling 1-800-541-1532.
T. A living will protects this right
even if a patient is no longer
able to speak. If a patient has no living will or health care agent,
end-of-life decisions may be
in the hands of doctors or the court
system. The presentation will be webcast live
and will be
available through the Investor Relations section of the Company's
website at http://www.37
$.
Guidance for 2005 excludes the following because this information is not
currently available:
* Effects from potential acquisitions or dispositions, including gains
or losses
associated with asset dispositions;
* Any potential costs associated with settlements of litigation
or the
recognition of receivables for insurance recoveries associated with
litigation;
* Gains or losses associated with the early extinguishment of debt,
changes in the
capital structure, or foreign currency transactions;
* Any potential tax payments, credits
or refunds; and
* Any potential cash contributions to our frozen cash balance pension
plan.
* General and administrative expenses are expected to be $80 to
$85
million in 2005.
- In March 2005, we received a tax refund of $29. In 2005, we expect to
pay $5 to $10 million for
various state, local and Canadian province taxes.
Service
Corporation International, headquartered in Houston, Texas, is the
leading provider of funeral and
cemetery services in the world.guaranteed funerals
Kaiser Permanente Highlights Online Availability of Advance Directives;
Kp.org Offers Free Information on Living Wills Medical Powers of Attorney
"They should consider
end-of-life issues while they're healthy enough to consider and
communicate their wishes. For
a summary of
information that is unavailable and its probable significance, see
the discussion under "Operating Measures" below.
* North America comparable cemetery
revenues are expected to be $545 to
$585 million in 2005. We expect inflationary increases
in other cemetery
costs. These
statements may be accompanied by words such as "believe
," "estimate,"
"project," "expect," "anticipate" or "predict," that convey the uncertainty of
future
events or outcomes.funeral lifefiles
(Eastern) on Thursday, April 21, 2005. Other selling costs associated with the
sales and marketing of
preneed contracts were already expensed as incurred. We expect that
the sale of Dignity Memorial(R) funeral and cremations plans will
continue to
positively impact the overall average revenue per
funeral service. This growth
in new sales will be partially offset by lower legacy revenues
recognized in 2005
. In 2005, we expect increased costs associated
with Sarbanes-Oxley related compliance efforts
.
FREE CASH FLOW
Free cash flow is a non-GAAP financial measure. If these tax matters
are unfavorably resolved, we will make
any required payments to tax authorities.uninformed cremation
Christensen
added. The law does not make a
distinction between stopping treatment and refusing treatment.
Patients
can be sure that their wishes will be understood with
these documents.2 million members in 9 states
and the
District of Columbia.
During the presentation Mr.03. Our
outlook for 2005
excludes the possibility of the recognition of costs
associated with settlements of litigation
or related receivables for
insurance recoveries.4 million shares of our common stock,
leaving us with the authority to invest approximately $86
million more
for future repurchases of our common stock.
* Cash flows from operating activities excluding
special items in 2005
are expected to be $265 to $280 million. This amount is
excluded from our expectations for cash flows from operating
activities excluding
special items and free cash flow.
- Capital expenditures intended to grow revenues and profits
are
expected to be $45 to $50 million and include items such as the
construction
of new funeral service facilities (particularly on
company-owned cemeteries), the development
of high-end cemetery
property such as private family estates, and the investment in
contemporary merchandising displays in our funeral homes. Important factors, which could cause
actual results to differ
materially from those in forward-looking statements include, among others
, the
following:
* Changes in general economic conditions, both domestically and
internationally, impacting financial markets (e.g.
* We maintain accruals for tax liabilities
which relate to uncertain tax
matters.
* The outcome of discussions with the SEC
related to our accounting
policies for preneed deferred selling costs.forethought finalizing
"The inheritance
distribution process can be complicated, with numerous
choices and deadlines to keep track of in
order to qualify for certain options
and long-term tax benefits," said Christine Fahlund, a senior
financial
planner at T. The
company also offers a variety of sophisticated investment planning
and
guidance tools. The
resulting conflict between Schiavo's husband and parents about her
true
desires led to years of conflict and litigation.
2005 OUTLOOK ASSUMPTIONS
Operating
Measures
* Comparable financial information as used in our 2005 outlook is
intended
to be reflective of "same store" results. We expect this increase in
average revenue
per funeral service to overcome an estimated 100 to
150 basis point increase in the percentage
of cremation services
performed. In 2005, we expect increases in salary expense and increases
in
costs related to additional redundant and monitoring controls we are
implementing
at the corporate level to improve field internal
controls. We also expect an increase in
preneed selling costs
compared to 2004 due to the accounting change described above. In
2005, we expect increases in salary expense and increases
in costs related to additional
redundant and monitoring controls we
are implementing at the corporate level to improve field
internal
controls.
* Consequences of the restatement of our financial results for
the first
three quarters of 2004.
* Changes in consumer demand and/or pricing for
our products and
services due to several factors, such as changes in numbers of deaths,
cremation rates, competitive pressures and local economic conditions. For more information
about
Service Corporation International, please visit our website at
http://www.longevity cremation
Ethical issues -- like
artificial hydration and nutrition, and CPR and mechanical ventilation
-- are also addressed on
the website. Today it encompasses the not-for-profit Kaiser
Foundation Health Plan, Inc., Kaiser
Foundation Hospitals and their
subsidiaries, and the for-profit Permanente Medical Groups. We previously
indicated that we would adopt SFAS No.
- The consolidated effective tax rate
for continuing operations in
2005 is expected to be approximately 35%.S. While we believe
free
cash flow, as defined, is helpful in managing our business and provides useful
information
to investors, certain events may arise, financial or otherwise,
which could require the use of free
cash flow so that it would not be
available for the purposes described above, as more fully described
in our
public filings with the Securities and Exchange Commission. We
assume no obligation to
publicly update or revise any forward-looking
statements made herein or any other forward-looking
statements made by us,
whether as a result of new information, future events or otherwise.
For additional information contact:
Investors: Debbie Young - Director / Investor Relations
(713) 525-9088
Media: Terry Hemeyer - Managing Director / Corporate Communications
(713) 525-5497
funeral longevity
The site addresses a full range of related
topics, including the
type of advance directives available and the
various ethical issues surrounding such decisions. It
outlines
general preferences for medical treatment, such as what measures
should be taken if the
patient is hospitalized with a serious illness. The courts
ultimately had to determine that Schiavo
's husband best knew her true
wishes, to the dismay of her parents.
A medical power of attorney
is a legal document that lets patients
appoint someone (usually called a health care agent or health
care
proxy) to make medical treatment decisions for him or her, not only at
the end of life but
any time the individual is unable to communicate
their wishes. For a summary of information that
is
unavailable and its probable significance, see the discussion under
"Cash
Flow Measures" below. The outlook for interest expense in 2005 assumes
the payment of scheduled
debt maturities only and does not take into
consideration the possibility of any prepayment
or restructuring of
debt.
- Diluted earnings from continuing operations excluding
special items
does not include effects from potential acquisitions or
dispositions
, including gains or losses associated with asset
dispositions; potential costs associated
with settlements of
litigation or the recognition of receivables for insurance
recoveries associated with litigation; and gains or losses
associated with the
early extinguishment of debt, changes in the
capital structure, or foreign currency transactions
.
- Our former funeral operations in France (which were sold in March
2004
) contributed $.
Cash Flow Measures
* Free cash flow in 2005 is expected to be
$200 to $220 million. We define free cash flow
as cash flows from operating activities (excluding
certain special items
described above under the heading "Cash Flow Measures") less capital
improvements
at our existing facilities.
* Our ability to successfully access surety and insurance markets
at a
reasonable cost.deni lifefiles
It can also help educate IRA
owners - who are in the process of
naming their beneficiaries - about the
decisions their heirs will have to make. HOUSTON, Service
Corporation
International (NYSE: SCI) announced today that the Company's President and
Chief Executive
Officer, Tom Ryan, will make a presentation at the Merrill
Lynch Deathcare Conference to be held
in New York, New York at 11:15 a.
The presentation slides will be archived for a period of approximately
ninety
days. Effective January 1, 2005, the
Company is expensing all preneed selling costs in
the period incurred.com . We expect inflationary increases in other funeral
costs. If these
tax matters are
favorably resolved, the accruals maintained by us will no longer be
required and the removal of such accruals will be recognized through
our consolidated
tax provision at the time of resolution.sci-corp.uninformed workbook
Rowe
Price Guide for IRA and 403(b) Account Beneficiaries
can be downloaded at
http://www.troweprice.kaiserpermanente.
While revenues could be
impacted in
2005 by potential divestitures and acquisitions in North America, the
impact on gross profits is expected to be minimal.
- We expect general agency revenues
to grow in 2005 to an amount
between $27 and $31 million. 123R, "Share-Based Payment
" in
July 2005 which requires the expensing of stock options.02 per share in 2004 that will
not recur in
2005. There can
be no assurance that we will buy our common
stock under our
share repurchase programs.
- Effective January 1, 2005
, we began funding our 401(k) retirement
plan with cash versus our historical funding method
of using our
common stock.
* Our ability to successfully implement our plan to
reduce costs and
increase cash flows associated with significant changes being made to
our organization structure, process and quality of our sales efforts.
For further
information on these and other risks and uncertainties, see
our Securities and Exchange Commission
filings, including our 2004 Annual
Report on Form 10-K, as amended.demise ifpa
, distributor.kaiserpermanente
.com/InvestorPres.
For a further discussion of risks related to our business that could affect
our
outlook for 2005, please refer to the cautionary statement on forward-
looking statements in this
press release and in our filings with the
Securities and Exchange Commission ("SEC").
- We expect revenues from Kenyon to grow in 2005 to an amount
between $5 and $10
million primarily related to its involvement
in the tsunami disaster recovery efforts
in Asia. In 2005, we expect
modest improvement from these businesses, excluding currency
fluctuations. Our outlook for 2005 excludes any
impact from these businesses
in 2005.8
million to repurchase 31. Because of these
tax loss carry
-forwards, we believe we will not pay federal income
taxes until 2007.
- In
addition to our anticipated capital spending of $105 to $115
million in 2005, we will
continue to look for attractive
acquisition opportunities if such acquisitions are available
at
reasonable market prices; however, we anticipate only modest
activity
due to elevated price expectations of potential sellers.
CAUTIONARY STATEMENT ON FORWARD
-LOOKING STATEMENTS
The statements in this press release that are not historical facts are
forward
-looking statements made in reliance on the "safe harbor" protections
provided under the Private Securities
Litigation Reform Act of 1995. These statements are based on assumptions that we
believe are reasonable;
however, many important factors could cause our actual
results in the future to differ materially
from the forward-looking statements
made herein and in any other documents or oral presentations
made by us, or on
our behalf.
* The outcomes of pending lawsuits and proceedings against
us described
more fully in our Securities and Exchange Commission filings.estimator straightforward
org -- and
thereby
clarify end-of-life decision-making.
"Patients should not wait for a doctor to bring up the subject
of
an advance directive," Dr. Laws vary from state to state; some states limit the
agent's authority
, so it is important to become familiar with the laws
in your state. An audio replay of the
webcast
will be available on the Company's website for approximately 14 days. Ryan will provide updated guidance
for the
year 2005 incorporating the effects of the Company's accounting change related
to the
treatment of preneed selling costs.29 to $. We have an
extensive network of businesses including
1,190 funeral service locations and
390 cemeteries in North America as of December 31, 2004.preneed demise
Rowe
Price's disciplined, risk-aware investment approach
focuses on diversification, style consistency
, and fundamental research.
As a public service to members and non-members alike, Kaiser
Permanente
is highlighting the advance directives pages of the
award-winning website, which provide visitors
with thorough guidance
about end-of-life decisions, written with the consultation of experts
in
medicine and bioethics.m.sci-corp.34
Cash Flow Measures
Free cash flow (B)
$200 to $220 Unchanged
Cash flows from operating activities
excluding
special items (C) $265 to $280 Unchanged
Total capital expenditures
$105 to $115 Unchanged
Capital improvements at existing
facilities
$60 to $65 Unchanged
Capital expenditures intended to
grow revenues and profits $45 to $50 Unchanged
(A) Diluted
earnings per share from continuing operations excluding
special items is a non-GAAP financial
measure. This extra bi-weekly payroll payment occurs every eleven
years and is not expected
to recur until 2015.preplanning uninformed
-- Investment ideas if current income isn't needed: Provides an
overview of investment options - including tax-efficient mutual
funds, tax-deferred
annuities, donor-advised funds, and 529 College
Savings Plans - investors may want to consider
if they must receive
required distributions but do not currently need the income. The
firm provides a broad array of mutual funds,
sub-advisory services, and separate account management
for individual and
institutional investors, retirement plans, and financial intermediaries.
- The guidance range for diluted earnings from continuing operations
excluding
special items in 2005 assumes the fully diluted weighted
average shares outstanding will
be reduced to approximately 305 to
310 million shares due to anticipated stock repurchases
.
* Total capital expenditures in 2005 are expected to be $105 to $115
million.
- Of the total projected capital expenditures in 2005, we expect to
spend approximately
$60 to $65 million on capital improvements at
our existing facilities.
* Changes
in credit relationships impacting the availability of credit
and the general availability
of credit in the marketplace.
* Our ability to successfully exploit our substantial purchasing
power
with certain of our vendors.guaranteed loved
Business Editors/Healthcare Editors/Legal Editors
OAKLAND, Calif. Had the Company expensed these selling costs
during 2004, pretax income in
2004 would have been reduced by approximately
$14 million and diluted earnings per share would have
been reduced by
approximately $.
Highlights of Updated 2005 Outlook:
In millions
, except earnings per share and gross margin percentage
Original Outlook Updated Outlook
Operating Measures
North America Comparable Operations
Funeral revenues $1,105 to $1,145 Unchanged
Funeral gross
margin percentage 18% to 22% Unchanged
Cemetery revenues
$545 to $585 Unchanged
Cemetery gross margin percentage 15% to 20%
13% to 18%
International Operations (Chile,
Singapore + Germany)
Revenues
$40 to $45 Unchanged
Gross margin percentage
22% to 25% Unchanged
General and administrative expenses $80 to $85
Unchanged
Other income $7 to $10 Unchanged
Interest expense $98 to $102 Unchanged
Depreciation and amortization
expense $140 to $145 $85 to $90
Diluted earnings per share from
continuing
operations excluding
special items (A) $.29 to $. Cash flows from operating
activities
calculated in accordance with GAAP is not currently accessible on a
forward-looking basis.
Below is a discussion of the assumptions underlying our 2005 Outlook
which
was originally included in our press release and related Form 8-K furnished
April 1, 2005
.
- From August 16, 2004 through March 31, 2005, we invested $213. We
intend, subject to market conditions and normal trading
restrictions, to make purchases
from time to time in the open
market or through privately negotiated transactions.
- In February 2004, we began trusting monies associated with new
preneed contracts
in Florida in lieu of surety bonding.sci-corp.deni guaranteed
The guide also discusses the issues related
to taking an immediate cash
distribution of your share of the assets or disclaiming some or all of
your
share in favor of other beneficiaries.
The outlook for 2005 above provides ranges
for certain items on the income
statement that could be used to calculate a broad range of diluted
earnings
per share from continuing operations; however, we believe it is more
appropriate to use
the range of diluted earnings per share provided. Cremation services have historically resulted in
lower
revenues than funeral services involving a burial. The impact of this
accelerated development is not expected to be significant in future
years. Based
on the
recent deferral of the required adoption date of SFAS No. 123R, we now
intend to defer the adoption of SFAS No.
* Diluted earnings from continuing operations excluding
special items
are expected to range from $. The cash outflow associated with our matching
contributions to our 401(k) retirement plan in 2005 is expected to
be $17
to $20 million. Furthermore, free
cash flow should be reviewed in addition to, but not as a substitute
for, the
data provided in our consolidated statement of cash flows.ifpa prearranged
"
Living wills and medical
powers of attorney are types of advance
directives. A patient's health care agent can use the information
in a living will as well as what he or she knows about the patient
personally to make decisions
about medical treatment. Kaiser Permanente serves
the health care needs of some 8. As a result of
this accounting change, the Company will incur a non-
cash pretax charge of approximately $310 million
in the first quarter of 2005
representing the write-off of deferred selling costs recorded on its
balance
sheet as of January 1, 2005. The accounting change also reduces the Company's guidance
for
diluted earnings per share from continuing operations; however, it has no
impact on cash flows from
operating activities or free cash flow.
- The number of funeral services performed at comparable
locations in
2005 is expected to decline 1% to 2% from 2004 levels.
- Property
sales are projected to increase 3% to 5% and merchandise
and service sales are projected
to increase 1% to 3%. These
increased costs will be partially offset by continued reductions
in
overhead costs.34 per share in 2005.
- Our former funeral operations in France
(which were sold in March
2004) contributed $18.
- Because our payroll is
done bi-weekly, we had an extra cash payroll
payment in 2004 of approximately $19 million
that will not recur in
2005.lifefiles longevity
BALTIMORE, T. Reviews the pros and cons for spousal
beneficiaries of rolling over assets to an IRA in their name or
leaving the
assets in the deceased owner's account. Against this backdrop, Kaiser
Permanente announced today
that consumers can obtain information about
advance directives on its website -- www.sci-corp.
* North America comparable funeral revenues are expected to be
$1,105 million to $1
,145 million in 2005. While these operations are included in our forecast for
the entire year
, it is possible that these businesses could be held
for sale during 2005 if we believe appropriate
values could be
obtained.
- Beginning January 1, 2005, we discontinued funding
the Company's
matching contributions to our 401(k) retirement plan with SCI
common stock and began to use cash instead. Free cash flow is not reduced by
mandatory
debt service requirements or by capital expenditures intended to
grow revenues and profits such as
the acquisition of funeral service locations
or cemeteries in large or strategic North America markets
, construction of
high-end cemetery property (such as private family estates) or the
construction
of funeral home facilities on SCI-owned cemeteries, and the
investment in contemporary merchandising
displays in our funeral homes.
* Our inability to certify the effectiveness of our internal
controls
over financial reporting and an adverse attestation report from our
auditors
, and our ability to successfully remediate in 2005 any
identified deficiencies in our internal
controls.demise funeral
Available for free, The T.----The confusion
and heartache surrounding the Terri Schiavo
case could have been
averted had the Florida woman completed an advance directive for
healthcare
, specifying a course of action in the event she could not
answer or make decisions for herself.org
"It's critical that that people consult with loved ones and their
doctors, and then formalize
their wishes," said Kate Christensen, MD,
Medical Director, Kaiser Permanente Internet Services Group
.org website offers a checklist of issues to consider,
including the type of health care and medical
procedures a patient
might want, the four steps in preparing an advance directive, and
information
about how to become an organ donor.html . The accounting change reduces the Company's previous 2005
North America gross profit guidance by approximately $15 million. This
reduction in gross profits
reduces the cemetery margin guidance previously
given, but does not materially impact the funeral
gross margin guidance
previously given. Copies of this press release as
well as other SEC filings
can be obtained from our website at
http://www. For purposes of
our 2005 guidance, we
consider comparable operations as businesses
that were acquired or constructed prior to December
31, 2005 or
divested after January 1, 2004. Legacy revenues represents revenues associated
with previously sold property that will be constructed and
recognized in
2005. Our outlook for 2005 excludes
the possibility of gains or losses associated with the
early
extinguishment of debt or with foreign currency transactions. For
more information
regarding free cash flow, see "Free Cash Flow" below. Special items include, among
others
, any potential tax payments or refunds, potential contributions
to our frozen cash balance
pension plan and any possible payments that
could be made associated with the settlement
of litigation matters or
related insurance recoveries.0 million resulting
from
certain federal tax carry-back losses.
* Our ability to successfully implement our strategic
plan related to
producing operating improvements and strong cash flows.
* Changes
to net income as a result of our ongoing reconciliation
processes regarding our trust assets
and preneed backlogs.com .lifefiles ifpa
-- Special considerations for multiple beneficiaries: Discusses
the
advantages of opening separate accounts for each beneficiary. T. Rowe Price Investment
Services, Inc.
A person must be a competent adult (having full abilities to make
decisions for
him- or herself) in order to fill out an advance
directive.
- The average revenue per
funeral service in 2005 is expected to
increase 1% to 3% from 2004 levels.
- Cemetery trust fund income is expected to decline approximately
$5 million from 2004
levels.
* International operations represent our cemetery business in Chile and
funeral businesses in Singapore and Germany.
- As in 2004, we do not expect to pay U., marketable
security values, as well as currency and interest rate fluctuations)
that could
negatively affect us, particularly, but not limited to,
levels of trust fund income, interest
expense, pension expense and
negative currency translation effects.funeral forethought
T. Rowe Price Offers Free
IRA Beneficiaries Guide
Rowe Price has developed a
new guide to help beneficiaries better understand
their distribution options,
legal obligations, and deadlines when inheriting assets from a traditional
IRA, SEP-IRA, Simple IRA, or 403(b) account.
The patient can
also add their own written
treatment preferences and values regarding
life-prolonging medical interventions.
Founded in 1945
, it is a not-for-profit, group practice prepayment
program with headquarters in Oakland, Calif.
Nationwide
, Kaiser Permanente includes approximately 134,000
technical, administrative and clerical employees
and more than 12,000
physicians representing all specialties.
* North America funeral gross
margin percentage is expected to be 18% to
22%. The increased costs
related to
Sarbanes-Oxley will be partially offset by reductions in
information technology costs and
trust operations expenses.
* Other income in 2005 is expected to be $7 to $10 million and consists
of cash overrides received from a third party insurance provider
related to the
sale of insurance funded preneed funeral contracts,
interest income from cash investments
and notes receivable, partially
offset by surety bond premium costs.
* The outcome
of a pending Internal Revenue Service audit and future tax
deductions resulting from potential
asset sales.
* Changes in domestic and international political and/or regulatory
environments in which we operate, including potential changes in tax,
accounting and trusting
policies.com .unprepared funeral
"Since some options could result in considerably
more after-tax dollars over the
long term, the guide can help heirs make more
informed decisions when inheriting IRA assets."
Founded in 1937, Baltimore-based T.
Terri Schiavo had no advance directive to explain her
end-of-life
healthcare wishes when she became incapacitated at age 29.
However, laws vary from
state to state regarding when a person may
refuse life support through an advance directive. Prior
to January 1, 2005, the Company deferred and amortized selling costs that
varied with, and were
primarily related to, the production of deferred
revenues associated with preneed funeral trust contracts
and preneed cemetery
contracts.
For more detail regarding these excluded items and other
important factors
that may affect our actual 2005 results, see our "Outlook Assumptions" below.
- Preneed funeral sales production is expected to grow 3% to 5% in
2005 compared
to 2004.
We believe that free cash flow provides useful information to investors
regarding
our financial condition and liquidity as well as our ability to
generate cash for purposes such as
reducing debt, expanding through strategic
investments and repurchasing stock or paying dividends
.ifpa heppell
The kp.
About Kaiser Permanente
Kaiser Permanente is America's leading integrated
health plan.
The accounting change has no impact on the Company's cash position or cash
flow
.
(B) Free cash flow is a non-GAAP financial measure.
* North America cemetery gross
margin percentage is expected to be 13%
to 18%. We expect
net trust deposits
relating to post February 2004 Florida preneed
sales to increase by $5 to $8 million during
2005.funeral eventual
The guide uses charts and clear, straightforward text to explain:
-- Beneficiary
basics: Covers the essential steps and deadlines to get
started, including tax implications
and an explanation of when
required minimum distributions must be taken and how they are
calculated.
-- Options that keep assets tax-deferred: Shows both spouse and
non-
spouse beneficiaries how they can maintain the tax-deferred status
of
their inherited assets. Rowe Price. Rowe Price (Nasdaq: TROW) is a global
investment management firm
with $212 billion in assets under management as of
September 30, 2004. A living will, also called
a treatment directive,
documents personal wishes about end-of-life medical treatment in case
decision
-making or communication abilities are lost.32 to $. Earnings per share
from continuing
operations calculated in accordance with GAAP is not
currently accessible on a forward
-looking basis. See our definition
of free cash flow under the heading "Free Cash Flow
" below. These
increased costs will be partially offset by continued reductions in
overhead costs. The expected reduction in legacy revenues is a
result of our recent
focus on shortening the time between when
property is sold and when it is constructed
.
- During February 2005, we completed the sale of our businesses in
Argentina
and Uruguay. 123R until 2006; however, it
does not meaningfully change our guidance range
. Copies of this document as well as other SEC
filings can be obtained from our website at http:/
/www.heppell ifpa
To learn more,
consumers should go to the Health Encyclopedia found on
www. The Schiavo controversy
has
underscored the importance of advance directives like living wills or
medical powers of attorney
.
Patients have the right to stop or refuse any medical treatment,
even if doing so results in
death. This also spares loved ones the burden of making
difficult decisions on someone else's behalf
without knowing their
desires.
(C) Cash flows from operating activities excluding special
items is a
non-GAAP financial measure.
- Included in funeral revenues are general
agency revenues related to
the sale of insurance funded preneed funeral contracts and
revenues
from Kenyon, our mass fatality and disaster assistance subsidiary. Although
the revenues associated with
funeral preneed sales are deferred until the funeral services
are
performed; we believe preneed funeral sales are an important
measure
and indicator of future performance. We also expect an increase in preneed selling costs
compared to 2004 due to the accounting change described above.
* Depreciation and amortization
expense in 2005 is expected to be $85 to
$90 million, representing a decrease of approximately
$55 to $60
million from 2004 due to the change in accounting for preneed selling
costs described above.3 million of cash flow from operating
activities in 2004 that
will not recur in 2005.
* Our ability to successfully complete our ongoing process improvement
and system implementation projects.cremation ifpa
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