Revenue during the quarter went up marginally by 0.98 percent to $721.47 million from $714.45 million in the previous year period. Gross margin for the quarter contracted 32 basis points over the previous year period to 19.51 percent. Total expenses were 84.15 percent of quarterly revenues, up from 82.57 percent for the same period last year. That has resulted in a contraction of 158 basis points in operating margin to 15.85 percent.

Operating income for the quarter was $114.39 million, compared with $124.55 million in the previous year period.

Tom Ryan, the Company's chairman and chief executive officer, commented on the third quarter of 2016: "We are pleased to report double-digit percentage growth in both adjusted earnings per share and adjusted operating cash flow during the quarter. Growth in cemetery revenue and effectively managing back office overhead expenses coupled with reduced interest expense and shares outstanding were the primary drivers of our double-digit growth in the quarter. While funeral services performed were sluggish initially against our expectations, they improved in the back half of the quarter. We expect this momentum to continue in the fourth quarter of 2016 and we are reiterating our full year 2016 adjusted earnings per share and operating cash flow guidance. Our results are a testament to the hard work and dedication of our entire team, and I thank all 24,000 team members for their focus on delivering extraordinary service to our client families. We believe our long-term value creation plan is on track as we grow our revenues by remaining relevant with the consumer, drive future market share by growing our preneed sales, continue to leverage our scale, and deploy capital to enhance shareholder value."

The company has spent $179.14 million cash to meet investing activities during the nine month period as against cash outgo of $125.78 million in the last year period.

The company has spent $140.34 million cash to carry out financing activities during the nine month period as against cash outgo of $298.44 million in the last year period.

Cash and cash equivalents stood at $177.57 million as on Sep. 30, 2016, up 25.09 percent or $35.62 million from $141.95 million on Sep. 30, 2015.

Working capital remains negative
Working capital of Service Corporation International was negative $192.99 million on Sep. 30, 2016 compared with negative $225.90 million on Sep. 30, 2015. Current ratio was at 0.64 as on Sep. 30, 2016, up from 0.59 on Sep. 30, 2015.

Days sales outstanding were almost stable at 11 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 2 days for the quarter compared with 5 days for the previous year period.