Service Corporation International(NYSE:SCI) the World’s Largest Funeral Corporation showed an increase in revenue. But there is a serious problem, By the company’s own admission the report does not include unrealized preneed losses. So in effect the financial report is apparently not honest, truthful and the usual deception. 43.8 Million Dollars of unrealized losses are not included in this report.
This corporation continually makes things appear better than what they are-
As of March 31, 2010, we have cumulative net unrealized losses of $26.5 million in our preneed funeral and cemetery merchandise and service trusts, and cumulative net unrealized losses of $17.3 million in our cemetery perpetual care trusts, as discussed in Notes 4, 5, and 6 , Financial Statements and Supplementary Data. At March 31, 2010, these net unrealized losses represented 1.7% of our original cost basis of $2.6 billion. As explained in “Critical Accounting Policies, Fair Value Measurements”, changes in unrealized gains and/or losses related to these securities are reflected in Other comprehensive income (loss) and offset by the Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus interest in those unrealized gains and/or losses. Therefore, the majority of these net unrealized losses are not reflected in our consolidated statement of operations for the quarter ended March 31, 2010. We do, however, rely on our trust investments to provide funding for the various contractual obligations that arise upon maturity of the underlying preneed contracts. Because of the long-term relationship between the establishment of trust investments and the required performance of the underlying contractual obligations, the impact of current market conditions that may exist at any given time is not necessarily indicative of our ability to generate profit on our future
One little paragraph explains away millions in unreported losses.
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