Service Corporation International Q2 2009 Earnings Transcript

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2009-08-06 19:58:11.0

Tags: Bank, Service Corporation International, Working Capital, Managerial Accounting, Finance, Seeking Alpha, Service Corp. International

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from the line of A.J. Rice from Soleil Securities. Please proceed.

A.J. Rice - Soleil Securities

Hi.

Eric Tanzberger

AJ, ---.

Operator

We actually have to remove his line. And your next question comes from the line of Robert Willoughby from Banc of America. Please proceed.

Robert Willoughby - Bank of America

Yeah. I don't think I am going to sound as cool as that. But... Did you, Eric, did you mentioned on the receivables that's been trending down for several quarters now, I mean what's specifically are you up to on that line item and it sounds like, I guess, moving into next year, you're expecting it to bounce back a bit?

Eric Tanzberger

Well, we have to say our manage our receivables as well, and our day sales outstanding is now probably when you -- markets are raise up to the high teens to low 20 days. I think it will go ahead all that, Robert, in terms of working capital management.

We also move in more room at payables as well thinking a whole, but again, I mentioned that we had some receipts this quarter from cash to valuable stuff about $15 million. That's the type of thing that I just want to highlight won't occur next year, bring it down to more normal working capital levels. But again, we'll continue to prudently manage working capital well into 2010 as well.

Robert Willoughby - Bank of America

Are you guys charging anymore for outstanding balances or is that part of the program or...

Thomas Ryan

Robert, this is Tom. I think couple of things, I think on the funeral asset to address before that those, there aren't any charges rapped they collected pretty quickly. When you talk about the cemetery Preneed side which is something that I think everybody has little more concerned with we've done somethings to try to enhance our flexibility. Giving example in certain markets we've actually lower the finance charges in offerings as long as long as people would sign us for bank draft to become a bank draft customer.

So that's more really assured us that is collectable. So, we're seeing today continue to be on cemetery side single pay customers are above 50% and we're seeing people that are financing 60% or up to 60% now they are financing on a bank draft. So, we're trying to do something they just make collectability a little more assured as it relates to interacting with our consumers.

 

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