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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 5, 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 June 5, 1997, the Company issued the following press release.
PRESS RELEASE
CONTACT: FOR IMMEDIATE RELEASE
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Fr. Gregory Coiro, O.F.M.Cap.
Office: (213)637-7215
Home: (818)952-1922
June 5, 1997 . . . Catholic Cemeteries of the Archdiocese of Los Angeles
and Stewart Enterprises, Inc. (NASDAQ NMS:STEI), one of the nation's leading
providers of mortuary services, are finalizing plans for Stewart to construct
and operate mortuaries on land leased from the Archdiocese.
The initial project, to be called "All Souls Mortuary," will operate as a
fully licensed, for-profit facility governed by applicable laws of the State of
California, at All Souls Cemetery in Long Beach, California.
"Catholic Cemeteries embarked on this project to expand and enhance the
Church's ministry to bereaved Catholic families," according to Monsignor
Terrance Fleming, moderator of the curia for the Archdiocese. "Offering
mortuary services that fully comply with Catholic traditions at the cemetery
will enable Catholic Cemeteries more fully to serve the Catholic Community in
the San Pedro Pastoral Region," he added.
Joseph P. Henican III, chief executive officer of Stewart Enterprises said,
"Our company has a long-standing reputation of meeting the individual funeral
and cemetery needs of families with quality products and services. We
understand the importance of upholding religious traditions and have developed
good working relationships with Catholic communities across the United States."
He added, "We consider it a privilege to have been chosen by the
Archdiocese of Los Angeles to help them better serve the needs of their
congregations."
Founded in 1910, Stewart Enterprises, Inc., is the third largest provider
of products and services to bereaved families. It currently owns 352 funeral
homes and 125 cemeteries in 23 states, Canada, Puerto Rico, Mexico, Australia,
New Zealand and Spain.
The nation's largest jurisdiction with more than 3.5 million Catholics, the
Archdiocese of Los Angeles owns and operates 11 cemeteries in its territory of
Los Angeles, Ventura and Santa Barbara counties, as well as two cemeteries in
the Diocese of Tucson, Arizona.
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On June 9, 1997, the Company issued the following earnings release for the
quarter ended April 30, 1997.
CONTACT: Ronald H. Patron
Stewart Enterprises, Inc.
110 Veterans Blvd.
Metairie, LA 70005
504/837-5880
FOR IMMEDIATE RELEASE
STEWART ENTERPRISES REPORTS SECOND QUARTER FISCAL YEAR 1997 RESULTS -EARNINGS
PER SHARE INCREASE 22%
Metairie, Louisiana, June 9, 1997. . . Stewart Enterprises, Inc. (Nasdaq
NMS:STEI) today announced that net earnings for the second quarter of fiscal
year 1997 increased 23% to $16.5 million, and earnings per share increased 22%,
to $.39, from $13.4 million and $.32, respectively, reported for the second
quarter of fiscal year 1996. 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 15%, to $125.1 million from $108.4
million reported for the corresponding quarter last fiscal year.
For the fiscal year-to-date period, net earnings increased 23% to $31.9 million,
and earnings per share increased 21% to $.76, from $25.9 million and $.63,
respectively, reported for the first half of fiscal year 1996. Per-share
amounts for fiscal year 1996 reflect the Company's June 21, 1996 3-for-2 stock
split. For the first half of fiscal year 1997, revenues increased 17%, to
$247.7 million from $211.2 million reported for the comparable period last year.
FINANCIAL PERFORMANCE ON TRACK; EQUITY OFFERING AND NEW CREDIT FACILITY PROVIDE
FUEL FOR GROWTH
Joseph P. Henican, III, CEO, commented, "Once again, we are delighted to report
on another successful quarter, demonstrated by earnings per share growth in
excess of 20%, driven by increases in revenues, margins and net earnings. As a
result of the success we have enjoyed during the first half of fiscal year 1997,
we are well positioned to achieve our goal of 20% growth in earnings per share
for the full fiscal year."
(MORE)
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Mr. Henican continued, "In April, we completed the syndication of a new $600
million revolving credit facility. In addition, we recently filed a registration
statement with the Securities and Exchange Commission covering a proposed
offering of 4.75 million shares of Class A Common Stock, of which 500,000 shares
are being offered by Frank B. Stewart, Jr. and a trust established by Mr. and
Mrs. Stewart. Funds provided by these transactions will be used principally to
fund our continuing business expansion program."
MARGINS CONTINUE TO ADVANCE; FIRST ACQUISITION IN EUROPE COMPLETED
William E. Rowe, President and COO, stated, "We continue to experience margin
enhancement in both the funeral and cemetery segments. For the quarter, our
funeral gross margin advanced 180 basis points over the comparable quarter last
year, and our cemetery gross margin expanded 240 basis points over 1996 levels.
For the year-to-date period, our funeral gross margin increased 150 basis
points, while our cemetery gross margin increased 170 basis points over fiscal
year 1996 levels. This performance is the result of our continued focus on
improving the performance of our core businesses and the maturation of recent
acquisitions."
Mr. Rowe went on to say, "Thus far in fiscal year 1997, we have acquired or
committed to acquire 75 businesses for an aggregate purchase price of
approximately $143 million, including our recent entry into Europe with the
acquisition of one of the largest independent funeral firms in Spain and the
commitment to acquire two additional properties in that country. This strategic
acquisition provides the foundation for the Company's expansion in Spain as well
as throughout Europe. Upon fulfillment of our commitments, we will have added
another 33 properties to our West Coast operations, including Sentinel Cremation
Societies, a premier firm in California, acquired in March 1997, and we will
have expanded our presence in Australia and New Zealand with 16 new 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 expansion 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 352 funeral homes and 125 cemeteries in 23 states, Puerto Rico,
Mexico, Australia, New Zealand, Canada and Spain.
(MORE)
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Statements made herein that are not historical facts are forward-looking
statements. The Company's actual results could differ materially due to several
important factors including the following: the Company's ability to sustain
recent levels of acquisition activity and enter new markets; the economy, death
rate and competition in the Company's markets; financial market conditions,
including stock and bond prices and interest rates; the Company's ability to
achieve economies of scale and manage growth; and the performance of acquired
businesses. Such factors, and others, are more fully described in Item 5 of the
Company's Form 10-Q for the quarter ended January 31, 1997. The Company assumes
no obligation to update information contained herein.
#####
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STEWART ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended April 30,
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1997 1996
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Revenues:
Funeral $ 71,604 $ 54,916
Cemetery 53,479 53,507
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Total revenues 125,083 108,423
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Costs and expenses:
Funeral 47,370 37,333
Cemetery 40,037 41,367
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Total costs and expenses 87,407 78,700
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Gross profit 37,676 29,723
Corporate general and administrative expenses 3,181 3,315
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Operating earnings 34,495 26,408
Interest expense (10,071) (5,818)
Investment and other income 781 856
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Earnings before income taxes 25,205 21,446
Income taxes 8,703 8,043
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Net earnings $ 16,502 $ 13,403
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Earnings per common share $ 0.39 $ 0.32 (a)
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Weighted average common shares
outstanding (in thousands) 42,161 41,364 (a)
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Dividends per common share $ 0.02 $ 0.013 (a)
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(a) Restated to reflect the Company's three-for-two stock split effective
June 21, 1996.
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STEWART ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in thousands, except per share amounts)
(Unaudited)
Six Months Ended April 30,
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1997 1996
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Revenues:
Funeral $ 140,510 $ 108,003
Cemetery 107,235 103,177
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Total revenues 247,745 211,180
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Costs and expenses:
Funeral 93,775 73,702
Cemetery 80,424 79,156
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Total costs and expenses 174,199 152,858
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Gross profit 73,546 58,322
Corporate general and administrative expenses 7,036 6,265
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Operating earnings 66,510 52,057
Interest expense (19,033) (12,022)
Investment and other income 1,566 1,407
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Earnings before income taxes 49,043 41,442
Income taxes 17,165 15,541
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Net earnings $ 31,878 $ 25,901
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Earnings per common share $ 0.76 $ 0.63 (a)
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Weighted average common shares
outstanding (in thousands) 42,005 41,196 (a)
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Dividends per common share $ 0.04 $ 0.027 (a)
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(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.
June 9, 1997 /s/ KENNETH C. BUDDE
______________________________
Kenneth C. Budde
Senior Vice President--Finance
Secretary and Treasurer
(Principal Accounting Officer)
