Service Corporation International (NYSE:SCI) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 09:00 am ET
Eric D. Tanzberger
So our maintenance and cemetery development capex spending totaled $44 million for the quarter, which is about $7 million lower than the prior year quarter. This decrease in maintenance spending reflects our actions taken late in the first quarter, which is at the onset of the pandemic. As a result of all of this, free cash flow for the quarter calculates at about $140 million. When normalized for the $62 million though of total deferred taxes that I just mentioned, free cash flow came in at about $78 million, which is still $45 million higher than what we generated in the second quarter of last year.
Now let's shift out of the quarter and kind of talk about the remainder of the year. Midyear through 2020, adjusted cash flow from operations has grown by $95 million from $269 million in the prior year to $364 million today. Again, adjusting for the $62 million in deferred taxes, we've grown $33 million, but a solid 12% over prior year. While we have seen operating improvement since the beginning of this pandemic, it still remains unclear whether we'll see any mandated lockdowns again in the communities we serve, which could obviously negatively impact our cash flows in the back half of this year. Therefore, there is still a high degree of economic uncertainty and the pandemic remains, as we all know a fluid situation.
While our locations are generally open to serve in the communities we operate, our ability to offer a full suite of products and services could be limited in certain geographies where outbreaks do occur. With these comments, though as a backdrop, let me provide you with a few thoughts on the cash flows for the back half of 2020 as compared to 2019.
We will pay, as I've mentioned a significant amount of cash taxes in the second half of 2020. Our second quarter this year benefited from the deferral of the $47 million of federal and state cash tax as I mentioned, and that was associated with the pandemic relief from the IRS and that will be paid again in the third quarter. Benefiting the second half of 2020 will also be an estimated $25 million of additional payroll tax deferrals in the back half of this year.
Finally, we expect cash interest to be around $10 million lower as we look to the back part of the year as compared to 2019, which is primarily associated with lower rates on our floating rate debt, as well as us benefited from debt refinancing and redemption activities that we've already completed over the past year.
And as you saw in our press release, putting all of this together, we're providing normalized operating cash flow guidance of $600 million to $660 million, that's for the full year of 2020. This updated guidance is reflected of the adjusted EPS guidance, which is in the press release, payroll tax deferrals from the CARES Act, lower cash interest and lower cash taxes, along