SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 11, 1996
STEWART ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)
LOUISIANA 0-19508 72-0693290
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
110 Veterans Memorial Boulevard
Metairie, Louisiana 70005
(Address of principal executive offices) (Zip Code)
(504) 837-5880
(Registrant's telephone number, including area code)
Not Applicable
(Former name of former address, if changed since last report)
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Item 5. Other Events
On June 11, 1996 the Company issued the attached earnings release
for the quarter ended April 30, 1996.
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CONTACT: Ronald H. Patron
Stewart Enterprises, Inc.
110 Veterans Blvd.
Metairie, LA 70005
504/837-5880
FOR IMMEDIATE RELEASE
STEWART ENTERPRISES REPORTS SECOND QUARTER RESULTS - REVENUES
RISE 16%, EARNINGS INCREASE 47%
Metairie, Louisiana, June 11, 1996. . . Stewart
Enterprises, Inc. (Nasdaq NMS:STEI) today announced a
16.4% increase in revenues and a 47.3% increase in net
earnings for the second quarter ended April 30, 1996.
Revenues for the second quarter increased 16.4% to $108.4
million from $93.1 million reported a year ago. Net
earnings climbed 47.3% to $13.4 million, and earnings per
share increased 19.5% to $.49 per share, from $9.1 million
and $.41 per share, respectively. Fiscal 1996 per share
performance reflects a 24.9% increase in the weighted
average number of common shares outstanding, from 22.1
million to 27.6 million, due principally to the Company's
public offering in May 1995 of 4,025,000 shares of Class A
Common Stock.
For the six months ended April 30, 1996, revenues grew
16.1% to $211.2 million from $181.9 million reported for
the comparable period last year. Net earnings increased
45.5% to $25.9 million, or $.94 per share, from the $17.8
million, or $.81 per share, reported for fiscal 1995. For
the current year to date period, the weighted average
number of common shares outstanding increased 25.0%, from
22.0 million to 27.5 million, principally as a result of
the Company's May 1995 secondary offering of 4,025,000
shares of Class A Common Stock.
(MORE)
REVENUES AND MARGINS CONTINUE TO EXPAND
Joseph P. Henican, III, CEO, commented, "Revenues grew by
16.4% for the quarter, while operating earnings increased
29.4%. In addition, our gross margin expanded to 27.4%
from 24.6%, and our operating margin increased to 24.4%
from 21.9%. For the six-month period, revenues increased
16.1% and operating earnings grew 32.9%. Our gross margin
increased to 27.6% from 24.2%, while our operating margin
expanded to 24.7% from 21.5%. These results reflect
continuing improvements in our core business and
contributions from recent acquisitions. We are pleased
that because of the diligent efforts of the entire Stewart
team, we are once again able to generate a strong
performance which ultimately increases shareholder value."
ACQUISITIONS
William E. Rowe, President and COO, stated, "During the
second quarter of 1996, we completed the acquisition of 24
funeral homes and four cemeteries for a total purchase
price of approximately $43.2 million. Since the end of
the quarter, we acquired another four properties for
approximately $7.7 million, and we currently have
outstanding commitments for the acquisition of five
businesses for approximately $2.7 million, bringing our
total acquisitions and commitments for the year to 36
funeral homes and 10 cemeteries for approximately $73.1
million."
Founded in 1910, Stewart Enterprises is the third largest
provider of products and services in the death care
industry in North America, currently owning and operating
196 funeral homes and 114 cemeteries in 21 states, Puerto
Rico, Mexico, Australia and New Zealand.
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STEWART ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Dollars in thousands, except per share amounts)
Three Months Ended April 30,
____________________________
1996 1995
____________ ______________
Revenues:
Funeral $ 54,916 $ 46,700
Cemetery 51,335 45,343
Construction and sales contracts 2,172 1,052
____________ ______________
Total revenues 108,423 93,095
____________ ______________
Costs and expenses:
Funeral 37,333 32,993
Cemetery 39,526 36,232
Construction and sales contracts 1,841 926
____________ ______________
Total costs and expenses 78,700 70,151
____________ ______________
Gross profit 29,723 22,944
Corporate general and administrative
expenses 3,315 2,576
____________ ______________
Operating earnings 26,408 20,368
Interest expense (5,818) (6,376)
Investment and other income 856 378
____________ ______________
Earnings before income taxes 21,446 14,370
Income taxes 8,043 5,317
____________ ______________
Net earnings $ 13,403 $ 9,053
============ ==============
Earnings per common share $ 0.49 $ 0.41
============ ==============
Weighted average common shares
outstanding (in thousands) 27,576 22,058
============ ==============
Dividends per common share $ 0.02 $ 0.01
============ ==============
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STEWART ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Dollars in thousands, except per share amounts)
Six Months Ended April 30,
____________________________
1996 1995
_____________ _____________
Revenues:
Funeral $ 108,003 $ 91,373
Cemetery 99,989 87,901
Construction and sales contracts 3,188 2,593
____________ ______________
Total revenues 211,180 181,867
____________ ______________
Costs and expenses:
Funeral 73,702 65,197
Cemetery 76,302 70,378
Construction and sales contracts 2,854 2,167
____________ ______________
Total costs and expenses 152,858 137,742
____________ ______________
Gross profit 58,322 44,125
Corporate general and administrative
expenses 6,265 4,957
____________ ______________
Operating earnings 52,057 39,168
Interest expense (12,022) (11,641)
Investment and other income 1,407 703
____________ ______________
Earnings before income taxes 41,442 28,230
Income taxes 15,541 10,445
____________ ______________
Net earnings $ 25,901 $ 17,785
============ ==============
Earnings per common share $ 0.94 $ 0.81
============ ==============
Weighted average common shares
outstanding (in thousands) 27,464 22,014
============ ==============
Dividends per common share $ 0.04 $ 0.02
============ ==============
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STEWART ENTERPRISES, INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED BALANCE SHEET DATA
(Unaudited)
(Dollars in thousands)
April 30, October 31,
1996 1995
____________ ______________
Current assets $ 157,573 $ 155,795
Total assets 1,160,801 1,056,113
Current liabilities 69,253 72,451
Long-term debt, less current
maturities 381,031 317,451
Shareholders' equity 520,951 483,978
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
STEWART ENTERPRISES, INC.
June 11, 1996 /s/ KENNETH C. BUDDE
_________________________________
Kenneth C. Budde
Senior Vice President Finance
Secretary and Treasurer
(Principal Accounting Officer)
