Declining cemetery sales drop N.O.-based Stewart earnings

New Orleans CityBusiness, Mar 17, 2008

Stewart Enterprises experienced a 25 percent decline in its first- quarter net earnings, dropping from $11.9 million in the first quarter of 2007 to $8.9 million this year.

"Operating income was negatively impacted by a decline in cemetery revenue and above average increases in merchandise costs," said CEO and President Thomas Crawford. "While the overall first quarter performance did not meet our financial expectations, we were encouraged by the performance of our funeral operations."

Stewart's funeral revenue increased $1.3 million, or 1.8 percent, to $73.4 million.

"We have what we believe to be a sustainable long-term strategy to maintain and grow market share by focusing on the strong brand names in our local markets," Crawford said. "Currently, we are implementing enhanced funeral packages which should help us increase our average revenue per funeral."

Stewart Enterprises

Headquarters: Jefferson

President/CEO: Thomas Crawford

Principal business: funeral services

Net income first quarter: $8.9 million

Net income first quarter 2006: $11.9 million

Decrease: 25 decrease

Significant factor: decline in cemetery revenue and above average increases in merchandise costs

Ticker symbol: STEI on the Nasdaq exchange

Outlook: Overweight, according to MarketWatch.com

Source: CityBusiness staff research