Carriage Services Inc (CSV) 10-Q Quarterly Report November 2023

HOUSTON - November 8, 2023 - (GLOBE NEWSWIRE) Carriage Services, Inc. (NYSE: CSV) today announced its financial results for the third quarter ended September 30, 2023.

Company Highlights:

•15.5% growth in cemetery operating revenue helped drive an increase of $3.0 million in total revenue over the prior year quarter;

•Adjusted consolidated EBITDA increased $1.4 million over the prior year quarter, or 6.1%, and adjusted consolidated EBITDA margin increased 70 basis points to 26.8%;

•Reported adjusted free cash flow of $21.4 million, a 30% increase over the third quarter of 2022;

•The Company paid down $16.7 million of debt on the credit facility during the quarter; and

•The Company has updated its full-year 2023 outlook to $375-$380 million in total revenue, adjusted consolidated EBITDA of $105-$110 million, adjusted diluted earnings per share of $1.90-$2.00; free cash flow of $50-$60 million remains unchanged.

Carlos Quezada, Vice Chairman and CEO, stated, “We are very pleased to report strong third-quarter results, demonstrating meaningful growth compared to the prior year. Our revenue growth has been primarily driven by preneed cemetery sales, resulting in substantial growth of 15.5% of our total cemetery operating revenue. Despite facing inflationary cost pressures and macroeconomic and pull-forward headwinds, we successfully maintained a 39.9% total field EBITDA margin. Moreover, we increased our adjusted consolidated EBITDA by 6.1%, and grew our adjusted consolidated EBITDA margin by 70 basis points.

Our strong operating results translated into robust free cash flow generation of $21.4 million for the quarter, allowing us to reduce our variable rate credit facility by $16.7 million. Nevertheless, despite this paydown, we experienced a significant increase in interest expense compared to last year's quarter. After accounting for the approximately 12 cent increase in interest expense, our adjusted diluted earnings per share aligns closely with last year's quarter.

Following three quarters of strong operational performance, we remain focused on navigating the current macroeconomic environment, which includes continued cost inflation and higher variable interest rates, along with death rate normalization, as the pull-forward effect of COVID continues to impact volume. Consequently, we are tightening our full-year guidance, with revenue anticipated to range between $375 million to $380 million, adjusted consolidated EBITDA of $105 million to $110 million, and adjusted diluted earnings per share between $1.90 to $2.00; additionally, we are reaffirming our strong adjusted free cash flow of $50 million to $60 million.

We remain focused on our revenue growth strategies, managing our cost structure and maintaining strong margins, and executing our capital allocation plan to accelerate debt payment. We are confident our team will continue to sustain High Performance and create long-term value for our shareholders,” concluded Mr. Quezada.

The following information was filed by Carriage Services Inc (CSV) on Wednesday, November 8, 2023 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Carriage Services Inc's 10-Q Quarterly Report:

Financial - Earnings Highlight
The increase of $11.8 million is primarily due to an $8.6 million withdrawal of realized capital gains and earnings from our preneed funeral and cemetery trust investments and receiving a $6.0 million incentive payment from a vendor related to a strategic partnership agreement to market and sell prearranged funeral services, partially offset by unfavorable working capital changes in income tax receivables.

Financial - Dividend Highlight
Cash Dividend Our Board declared the following dividends payable on the dates below (in thousands, except per share amounts): Credit Facility, Lease Obligations and Acquisition Debt The outstanding principal of our Credit Facility, lease obligations and acquisition debt at September 30, 2023 is as follows (in thousands): Credit Facility At September 30, 2023, our senior secured revolving credit facility (the "Credit Facility") was comprised of: (i) a $250.0 million revolving credit facility, including a $15.0 million subfacility for letters of credit and a $10.0 million swingline, and (ii) an accordion or incremental option allowing for future increases in the facility size by an additional amount of up to $75.0 million in the aggregate in the form of increased revolving commitments or incremental term loans.
Financial - Cash Flow Highlight
For additional information regarding known material factors that could cause cash flow or access to and cost of finance sources to differ from our expectations, please read Part I, Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022.
Financial - Earnings Highlight
The comparable operating profit margin increased 30 basis points to 37.1%.
M & A - Other Highlight
Our plan remains focused on integrating our recently acquired businesses and prioritizing our capital allocation for debt repayments, the payment of dividends and debt obligations and internal growth capital expenditures, which we expect to fund using cash on hand and borrowings under our Credit Facility, along with general corporate purposes, as allowed under our Credit Facility.
Revenue - Product
The increase in average revenue...Read more
Financial - Cash Flow
Based on our recent operating...Read more
Financial - Earnings
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Financial - Earnings
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Financial - Earnings
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Other - Other
Investing Activities Our investing activities,...Read more
Financial - Expense
Inflationary and Macroeconomic Trends During...Read more
Financial - Expense
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Financial - Expense
Although we have taken steps...Read more
Revenue - Product
The following table sets forth...Read more
Financial - Expense
Operating expenses as a percentage...Read more
Revenue - Product
Other revenue, which consists of...Read more
Revenue - Product
Other revenue and other operating...Read more
Revenue - Product
Funeral Home Segment The following...Read more
Financial - Debt
The Indenture contains restrictive covenants...Read more
Financial - Debt
The effective interest rate on...Read more
Other - Other
At September 30, 2023, we...Read more
Revenue - Product
Cemetery atneed revenue, which represents...Read more
Financial - Expense
Although we expect these trends...Read more
Other - Other
On July 24, 2023, Barry...Read more
Financial - Income
Income tax expense totaled $2.1...Read more
Financial - Income
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Revenue - Product
The increase in revenue is...Read more
Other - Other
At September 30, 2023, we...Read more
Financial - Debt
The debt discount and the...Read more
Revenue - Product
Cemetery atneed revenue, which represents...Read more
Financial - Earnings
Cemetery operating profit increased $1.1...Read more
Financial - Earnings
Cemetery operating profit increased $2.7...Read more
Financial - Expense
The interest expense and amortization...Read more
Financial - Expense
Regional and unallocated funeral and...Read more
Financial - Earnings
Gross profit for the three...Read more
Financial - Earnings
The increase in operating profit...Read more
Financial - Earnings
The increase in operating profit...Read more
Financial - Earnings
Funeral home operating profit for...Read more
Other - Other
These policies are considered critical...Read more
Revenue - Product
Other revenue and other operating...Read more
Financial - Debt
We believe that our existing...Read more
Financial - Expense
The interest expense and amortization...Read more
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Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Carriage Services Inc provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32: Section 1350 Certification

Ticker: CSV
CIK: 1016281
Form Type: 10-Q Quarterly Report
Accession Number: 0001016281-23-000132
Submitted to the SEC: Thu Nov 09 2023 4:35:36 PM EST
Accepted by the SEC: Thu Nov 09 2023
Period: Saturday, September 30, 2023
Industry: Personal Services

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Carriage Services Inc (CSV) SEC Filing 10-Q Quarterly Report for the period ending Saturday, September 30, 2023

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