CARRIAGE SERVICES, INC. CONDENSED OPERATING AND FINANCIAL TREND REPORT (in thousands – except per share amounts) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Funeral operating revenue $ 59,572 $ 58,753 $ 128,662 $ 124,801 Cemetery operating revenue 33,450 33,644 61,388 60,049 Financial revenue 8,224 6,921 15,580 13,664 Ancillary revenue 904 1,082 1,936 2,329 Divested revenue (3 ) 1,918 1,650 4,968 Total revenue $ 102,147 $ 102,318 $ 209,216 $ 205,811 Funeral operating EBITDA $ 22,030 $ 23,220 $ 51,570 $ 50,569 Funeral operating EBITDA margin 37.0 % 39.5 % 40.1 % 40.5 % Cemetery operating EBITDA 15,003 16,712 26,368 28,247 Cemetery operating EBITDA margin 44.9 % 49.7 % 43.0 % 47.0 % Financial EBITDA 7,610 6,385 14,165 12,715 Financial EBITDA margin 92.5 % 92.3 % 90.9 % 93.1 % Ancillary EBITDA 32 192 220 365 Ancillary EBITDA margin 3.5 % 17.7 % 11.4 % 15.7 % Divested EBITDA 49 694 628 1,634 Divested EBITDA margin (1633.3 )% 36.2 % 38.1 % 32.9 % Total field EBITDA $ 44,724 $ 47,203 $ 92,951 $ 93,530 Total field EBITDA margin 43.8 % 46.1 % 44.4 % 45.4 % Total overhead $ 12,462 $ 20,425 $ 27,741 $ 39,781 Overhead as a percentage of revenue 12.2 % 20.0 % 13.3 % 19.3 % Consolidated EBITDA $ 32,262 $ 26,778 $ 65,210 $ 53,749 Consolidated EBITDA margin 31.6 % 26.2 % 31.2 % 26.1 % Other expenses and interest Depreciation & amortization $ 6,173 $ 6,204 $ 11,574 $ 11,664 Non-cash stock compensation 2,092 2,182 3,845 2,671 Interest expense 7,034 8,324 14,332 17,036 Other 106 (391 ) (7,652 ) 1,197 Pretax income $ 16,857 $ 10,459 $ 43,111 $ 21,181 Net tax expense 5,118 4,200 10,446 7,949 Net income $ 11,739 $ 6,259 $ 32,665 $ 13,232 Special items(1) $ 12 $ 5,417 $ (8,217 ) $ 12,212 Tax on special items 4 1,825 (2,432 ) 4,054 Adjusted net income $ 11,747 $ 9,851 $ 26,880 $ 21,390 Adjusted net income margin 11.5 % 9.6 % 12.8 % 10.4 % Adjusted basic earnings per share $ 0.75 $ 0.65 $ 1.72 $ 1.42 Adjusted diluted earnings per share $ 0.74 $ 0.63 $ 1.70 $ 1.38 GAAP basic earnings per share $ 0.75 $ 0.41 $ 2.09 $ 0.87 GAAP diluted earnings per share $ 0.74 $ 0.40 $ 2.07 $ 0.85 Weighted average shares o/s – basic 15,458 14,965 15,352 14,920 Weighted average shares o/s – diluted 15,653 15,403 15,528 15,356 Reconciliation of Consolidated EBITDA to Adjusted consolidated EBITDA Consolidated EBITDA $ 32,262 $ 26,778 $ 65,210 $ 53,749 Special items(1) — 5,826 — 12,456 Adjusted consolidated EBITDA $ 32,262 $ 32,604 $ 65,210 $ 66,205 Adjusted consolidated EBITDA margin 31.6 % 31.9 % 31.2 % 32.2 % (1) A detail of our Special items presented in this table can be found in the Reconciliation of Non-GAAP Financial Measures section of this press release. CARRIAGE SERVICES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in thousands) Six months ended June 30, 2025 2024 Cash flows from operating activities: Net income $ 32,665 $ 13,232 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 11,574 11,664 Provision for credit losses 1,973 1,447 Stock-based compensation expense 3,845 2,671 Deferred income tax (benefit) expense 3,264 (1,477 ) Amortization of intangibles 660 669 Amortization of debt issuance costs 255 352 Amortization and accretion of debt 278 266 Net (gain) loss on divestitures, disposals, and impairment charges (5,771 ) 1,568 Net gain on property damage, net of insurance claims — (417 ) Gain on sale of excess real property (1,993 ) — Changes in operating assets and liabilities that provided (used) cash: Accounts and preneed receivables (11,430 ) (13,939 ) Inventories, prepaid, and other current assets (3,136 ) 1,224 Intangible and other non-current assets (1,117 ) (2,339 ) Preneed funeral and cemetery trust investments (4,281 ) (9,523 ) Accounts payable (2,245 ) 3,084 Accrued and other liabilities (10,458 ) (3,999 ) Deferred preneed funeral and cemetery revenue 1,941 7,064 Deferred preneed funeral and cemetery receipts held in trust 5,853 10,313 Net cash provided by operating activities 21,877 21,860 Cash flows from investing activities: Proceeds from divestitures and sale of other assets 18,822 11,174 Proceeds from insurance claims — 314 Capital expenditures (6,009 ) (7,096 ) Net cash provided by investing activities 12,813 4,392 Cash flows from financing activities: Borrowings from the credit facility 24,600 24,800 Payments against the credit facility (48,700 ) (48,900 ) Payments on acquisition debt and obligations under finance leases (221 ) (305 ) Proceeds from the exercise of stock options and employee stock purchase plan contributions 983 1,942 Taxes paid on restricted stock, performance award vestings, and exercise of stock options (7,631 ) (419 ) Dividends paid on common stock (3,488 ) (3,390 ) Net cash used in financing activities (34,457 ) (26,272 ) Net increase (decrease) in cash and cash equivalents 233 (20 ) Cash and cash equivalents at beginning of period 1,165 1,523 Cash and cash equivalents at end of period $ 1,398 $ 1,503 Important factors that could cause actual results to differ materially from those in the forward-looking statements include but are not limited to: our ability to find and retain skilled personnel; the effects of our talent recruitment efforts, incentive and compensation plans and programs, including such effects on our Standards Operating Model and the Company’s operational and financial performance; our ability to execute our strategic objectives and growth strategy, if at all; the potential adverse effects on the Company’s business, financial and equity performance if management fails to meet the expectations of its strategic objectives and growth plan; the execution of our Standards Operating and strategic acquisition frameworks; the effects of competition; changes in the number of deaths in our markets, which are not predictable from market to market or over the short term; changes in consumer preferences and our ability to adapt to or meet those changes; our ability to generate preneed sales, including implementing our cemetery portfolio sales strategy, product development and optimization plans; the investment performance of our funeral and cemetery trust funds; fluctuations in interest rates, including, but not limited to, the effects of increased borrowing costs under our Credit Facility and our ability to minimize such costs, if at all; the effects of inflation on our operational and financial performance, including the increased overall costs for our goods and services, the impact on customer preferences as a result of changes in discretionary income, and our ability, if at all, to mitigate such effects; our ability to obtain debt or equity financing on satisfactory terms to fund additional acquisitions, expansion projects, working capital requirements and the repayment or refinancing of indebtedness; our ability to meet the timing, objectives and expectations related to our capital allocation framework, including our forecasted rates of return, planned uses of free cash flow and future capital allocation, including debt repayment plans, internal growth projects, potential strategic acquisitions, dividend increases, or share repurchases; our ability to meet the projected financial and performance guidance to our full year outlook, if at all; the timely and full payment of death benefits related to preneed funeral contracts funded through life insurance contracts; the financial condition of third-party insurance companies that fund our preneed funeral contracts; increased or unanticipated costs, such as merchandise, goods, insurance or taxes, and our ability to mitigate or minimize such costs, if at all; our level of indebtedness and the cash required to service our indebtedness; changes in federal income tax laws and regulations and the implementation and interpretation of these laws and regulations by the Internal Revenue Service; effects of the application of other applicable laws and regulations, including changes in such regulations or the interpretation thereof; the potential impact of epidemics and pandemics, including any new or emerging public health threats, on customer preferences and on our business; government, social, business and other actions that have been and will be taken in response to pandemics and epidemics, including potential responses to any new or emerging public health threats; effects and expense of litigation; consolidation in the funeral and cemetery industry; our ability to identify and consummate strategic acquisitions on commercially reasonable terms and on a timely basis, if at all, and successfully integrate acquired businesses with our existing businesses, including expected performance and financial improvements related thereto; our ability to successfully complete any non-core asset divestitures on commercially reasonable terms and on a timely basis, if at all, and the impact of any such divestitures on our Company, including any financial, operational, tax or other similar impacts related thereto; the effects of any imposition or changes in tariffs or trade agreements including, but not limited to, any increased inflationary pressures on the economy or costs for our goods, and our ability, if at all, to mitigate such effects; economic, financial and stock market fluctuations; interruptions or security lapses of our information technology, including any cybersecurity or ransomware incidents; adverse developments affecting the financial services industry; acts of war or terrorists acts and the governmental or military response to such acts; our failure to maintain effective control over financial reporting; and other factors and uncertainties inherent in the funeral and cemetery industry.
Author: Carriage Services, Inc.
Published at: 2025-08-06 22:20:00
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