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): March 10, 1997
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 or former address, if changed since last report)
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Item 5. Other Events
On March 10, 1997 the Company issued the following press release.
CONTACT: Ronald H. Patron
Stewart Enterprises, Inc.
110 Veterans Blvd.
Metairie, LA 70005
504/837-5880
FOR IMMEDIATE RELEASE
STEWART ENTERPRISES REPORTS FIRST QUARTER FISCAL YEAR 1997 RESULTS -
EARNINGS PER SHARE INCREASE 23%
Metairie, Louisiana, March 10, 1997. . . Stewart Enterprises, Inc.
(Nasdaq NMS:STEI) today announced that net earnings and earnings per
share increased 23% to $15.4 million and $0.37, respectively, for the
first quarter ended January 31, 1997, from $12.5 million and $0.30,
respectively, reported for the comparable period last year. Per-share
amounts for fiscal year 1996 have been restated to reflect the Company's
3-for-2 stock split effective June 21, 1996. For the current quarter,
revenues increased 19%, to $122.7 million from $102.8 million reported
last year.
FINANCIAL PERFORMANCE ON TRACK; $600 MILLION BANK FACILITY PROVIDES FUEL
FOR GROWTH
Joseph P. Henican, III, CEO, commented, "We are delighted to report on
another successful quarter, demonstrated by earnings per share growth in
excess of 20%, driven by increases in revenues and net earnings. With
this solid performance as a foundation, we are on track to achieve our
goal of 20% growth in earnings per share for fiscal year 1997."
Mr. Henican continued, "We currently are in the process of syndicating a
new $600 million revolving credit facility, which will replace our
existing $350 million bank facility. The syndication was favorably
received by the participating banks, and we expect to close the
transaction shortly. The increased availability provided by this
facility will be used primarily to fund our continuing acquisition
program."
MARGINS CONTINUE TO EXPAND; ACQUISITION PACE STRONG
William E. Rowe, President and COO, stated, "We continue to experience
margin enhancement in both segments of our business. For the quarter,
our funeral gross margin increased 120 basis points over the comparable
quarter last year, and our cemetery gross margin expanded 100 basis
points over 1996 levels. These results were accomplished through
ongoing improvements in our core business and contributions from recent
acquisitions."
Mr. Rowe went on to say, "Thus far in fiscal year 1997, we have acquired
or committed to acquire 41 businesses for an aggregate purchase price of
approximately $115 million, including our recently announced entry into
Europe with the execution of a definitive agreement to acquire one of
the largest independent funeral firms in Spain. Through these
acquisitions and commitments, we entered New Mexico and Oklahoma, will
have added another 16 properties to our West Coast operations, and will
have expanded our presence in Australia and New Zealand with 13
additional businesses there. We remain committed to our strategy of
clustering our operations and growing our Company in a disciplined,
balanced manner, and we will continue to capitalize on attractive
acquisition opportunities as they arise."
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 323 funeral homes and 120 cemeteries in
23 states, Puerto Rico, Mexico, Australia, New Zealand and Canada.
#####
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STEWART ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended January 31,
_______________________________
1997 1996
_______ ________
Revenues:
Funeral $ 68,906 $ 53,087
Cemetery 53,756 49,670
_____________ _____________
Total revenues 122,662 102,757
_____________ _____________
Costs and expenses:
Funeral 46,405 36,369
Cemetery 40,387 37,789
_____________ _____________
Total costs and expenses 86,792 74,158
_____________ _____________
Gross profit 35,870 28,599
Corporate general and
administrative expenses 3,855 2,950
_____________ _____________
Operating earnings 32,015 25,649
Interest expense (8,962) (6,204)
Investment and other income 785 551
_____________ _____________
Earnings before income taxes 23,838 19,996
Income taxes 8,462 7,498
_____________ _____________
Net earnings $ 15,376 $ 12,498
============= =============
Earnings per common share $ 0.37 $ 0.30(a)
============= =============
Weighted average common shares
outstanding (in thousands) 41,853 41,031(a)
============= =============
Dividends per common share $ 0.020 $ 0.013(a)
============= =============
(a) Restated to reflect the Company's three-for-two stock
split effective June 21, 1996.
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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.
March 10, 1997 /s/ KENNETH C. BUDDE
______________________________
Kenneth C. Budde
Senior Vice President-Finance
Secretary and Treasurer
(Principal Accounting Officer)
