Company Report Alderwoods Group, Inc.
Introduction
The funeral industry is comprised of thousands of independent operators and a few large corporations that each own and manage hundreds of funeral homes, cemeteries and crematoriums. Alderwoods Group, Inc. is a company that came into the funeral service industry in 2002 after the restructuring of the now bankrupt Loewen Group, Inc. (Financial Post). The price earnings ratio as of October, 2005 is seventeen times its earnings per share (Yahoo! Finance). In the next ten years both revenues and market cap is expected to increase at Alderwoods due to the aging baby boom generation and the fact that Alderwoods has aggressively been disposing of its debt by selling off many of its assets (which include cemeteries and funeral homes).
Funeral homes, cemeteries and crematories are businesses that service the post-life activities for families. The industry covers everything from casket manufacturers and lab equipment makers (suppliers), funeral homes (providers) to the ultimate final resting place in a cemetery (plots, vaults, headstones, internment vaults, mausoleums) or in the case of cremation, ovens, loaders and ultimately, urns. Within the industry there are four major competitors on a national scale: Service Corporation International (SCI), Alderwoods Group, Inc., Carriage Services, Inc. and, Stewart Enterprises, Inc. They are all public companies that manage funeral homes, cemeteries and crematoriums throughout North America.
As of January 1, 2005, the Alderwoods Group "employs approximately 8,500 people at 648 funeral homes, 79 cemeteries and 63 combinations funeral home and cemeteries throughout North America (Alderwoods 2004 Annual Report)." These totals are significantly down from the 1990's when Loewen's tried to capture market share and aggressively bought up hundreds of independent funeral homes and cemeteries. By overextending itself, and having to settle a $500 million breach of contract lawsuit, the Loewen Group filed for bankruptcy and sold many of its assets before reorganizing as Alderwoods (Financial Post). The Alderwoods Group had to continue to take drastic action to insure its survival and its return on investment. Consequently, management continued to sell off its assets and reduced its debt from $2,342,916,000 at the end of 2002 to $1,307,043,000 (Alderwoods Annual Reports, 2002 & 2004). As of January of 2003, Alderwoods downsized from 802 funeral homes and 185 cemeteries to where they are today (Alderwoods 2002 Annual Report). Adlerwoods stock performance has outpaced the S & P 500 over the previous two years (Yahoo! Finance).
However, whereas Caterpillar and John Deere manufacture machinery that are substitutes for each other, the success of complementary products are also crucial. Whereas Caterpillar is a company that is based on construction equipment, John Deere is first and foremost an agricultural company. More specifically, a corn-driven company. This is never more evident than when looking at 2015. The 16% drop in stock price in 2015 coincided with a very poor corn harvest, but things are looking up. The USDA recently forecasted a record-high in corn-production, along with soybean production. Corn production is expected to increase by 11% in 2016 compared to 2015, which will greatly help with John Deere equipment sales. In addition, corn prices are finally expected to begin to recover in the next three years (Clark, 2015), which provides yet another positive factor for the growth in sales of John
In the past four decades the cost of a funeral service has risen 1,328% (Boring) and that’s not just because Morticians wanted to out of pure greed. One must take into account that modern mortuaries are much more of a business than before. Prior to 1970, the majority of funeral homes were were independent, family run. Today about 14% of funeral homes are run by a publicly traded corporation (Boring) meaning there’s a plethora of capital involved in these businesses now. The homes are built better and by professionals rather than by individuals with some tools, the home’s are extremely more sanitary since there’s more than likely no one living in these funeral homes unlike before, and the quality of the products these services are providing is greater than before.
Lowe’s Companies, Inc. is the fourteenth largest retailer in America, and overall the world’s second largest home improvement retailer. They are the 108th ranked corporation on the Fortune 500 top corporations list. With an impressive in store stock of 40,000 home improvement items on hand, ranging from lumber to Home décor items, plus an additional 400,000 home improvement items available through a special order program. Lowe’s provides a onetime stop for all home improvement needs, for both the Do-It-Yourselfer, and the ever-expanding market of the Commercial Business Customer.
Assets turnover growth is impressive considering other competitors in the industry have closed many stores from losses caused by Amazon market share growth and Costco and Walmart low prices.
...d in rural communities and whites lived in the cities. The first African American funeral directors had the challenge of driving long distances, over dirt bumpy country roads in horse-drawn carriages, to care for the white dead at the family home. The dead were laid on a “cooling board” at the family home for the purpose of slowing the deterioration of the body. The funeral director had to provide the ice for the cooling board. In the1920s, blacks started moving into the major industrial cities to obtain good manufacturing jobs. Many were urged to attend mortuary school and start businesses to help bury the increasing urban African American community.
Morbid Funeral Home, Inc. is an accrual basis taxpayer who sells preneed funeral contracts. Customers pay Morbid in advance for goods and services to be provided at the contract beneficiary’s death. Under state law the payments are refundable if the contract purchaser requests them any time until the goods and services are furnished. Morbid, for both financial and tax accounting purposes, includes the payments in income for the year the funeral service is provided. Morbid insists that the amounts it receives under the contracts are customer deposits. The IRS agent insists that the payments are prepaid income that is subject to tax in the year of receipt.
Cemeteries are a place for people to bury their loved ones for them to rest to be visible and visitable later. People chose the location of their burial sites very carefully. Some people chose their cemetery because of its proximity to something meaningful (childhood home, family memory, current location) or to honor something greater (soldiers being buried at Arlington National Cemetery). Although the cemetery itself may have meaning, the gravesite within the cemetery itself can also be very important. The tombstone can be a sign of class, wealth, or nationality with the location and design of the tombstone. For my fieldwork was centered around the cemetery which my grandfather was buried at, and it shows the progression of a community of people and tells some ways to
the size of the funeral home at which you work and the number of cases handled.
For the last thirty years, Cracker Barrel Old Country Store, Inc. has been offering people on the highways of America an alternative to the fast food pit stop. Their restaurants serves home-style food, has quality gift shops and, most of all, a friendly and accommodating environment all go in to create a welcoming atmosphere. Making the guest comfortable is what makes them different. The waiters and waitresses let you take your time. You are seated and promptly drink orders are taken. They give the customer sufficient time to gaze over the menu. There are peg games on the table to occupy you or your young ones. If it is a game of checkers you wish, there is always a table in the corner ready to play.
Naturebox, Inc is a fast growing online monthly subscription box. A Four- year-old company has a great success from selling customized snacks and make it a well-known funded company in the online subscription box categories. “It’s rare to see a new food service company grow as rapidly and fervently as NatureBox,” says Canaan Partners general partner Warren Lee. (NatureBox raises $18M on 2,000% revenue growth, proves that listening to your customer is always a good policy, Michael Carney, 2014) It offers variety of snacks. Their goal is to provide healthy snacks for everyone. Naturebox raises 30 million in Series C funding in 2015 and its sales have grown over 300% since it was funded in 2012. In 2013, Naturebox received 8.5 million in funding
The defense of our nation and its allies across the globe is essential to the success of the world we live in. The methods in which this defense takes place varies in many different ways, in air, on land, and at sea. Within our nation lies some of the largest defense organizations on the face of the planet, most, if not all, of which strive to protect the United States of America in all arenas. One of these organizations is Northrop Grumman. Northrop Grumman is one of the largest global aerospace and defense technology companies in the world. The company employs over 68,000 employees worldwide, and was named as the fourth-largest defense contractor in the world in 2016 (Forbes, 2016). It grossed over $23.526 billion in 2015. Northrop Grumman
According to the textbook, memorial services are becoming increasingly popular in many Protestant churches. This coincides with my family’s faith; we belong to a local Presbyterian church. The memorial will take place at The West Metro Chapel, part of the cremation package through Newcomer Funeral Homes and Crematory. This will reduce the costs significantly, consolidating the facility rental fee to only $675. Considering their will be no open casket or closed casket display the cremation will take place shortly after death, making the date of the service more flexible ensuring everyone who wants to attend the service can make it. Cremating the body will also be universally ideal for any condition the body is in from the cause of
Imagine yourself as a mortician, certified as an embalmer, retort operator, funeral director, and a funeral cosmetologist. You get a call late at night, there’s been a terrible accident and someone has died. You arrive at the hospital and are directed to a small room where the body of the deceased is being held. There’s blood all over the sheets as the doctor and coronary assistant zip up the body bag and inform you the body was badly mangled in a car accident, which is going to make reconstructing the deceased very difficult. Your assistant puts the body on the stretcher and loads it into the hearse while you talk to the wife of the deceased man. She tells you they plan to have a funeral so you give her your card and a reassuring word before leaving the hospital and driving back to the funeral home. Now your job begins, not only will you have to reconstruct this man’s disfigured body, but you must meet with the family, discuss funeral arrangements, and deal with the family’s emotional trauma that comes with losing a loved one. Although working in the funeral business can be emotionally draining, it’s a satisfying feeling to see mourning families able to say goodbye to their loved ones. Despite the fact that working so closely with the deceased can be chilling, Mortuary science can be a thrilling field to work in.
MEMO RE CLARKSON LUMBER TO: John Doe President, Northrup National Bank FROM: George Dodge Loans Officer, Northrup National Bank Clarkson Lumber Company is owned and operated by the hardworking, 49-year-old Mr. Clarkson. It has low operating expenses, a small staff, and strong management. The overall impression is one of a conservative, efficient operation. Clarkson himself leads a frugal lifestyle with little personal debt. Clarkson Lumber is a company experiencing rapid growth but with a constant cash flow crisis.
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