Delaware | 1-11961 | 76-0423828 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered |
Common Stock, par value $.01 per share | CSV | New York Stock Exchange |
CARRIAGE SERVICES, INC. | |||
Dated: May 2, 2019 | By: | /s/ Viki K. Blinderman | |
Viki K. Blinderman | |||
Senior Vice President, Principal Financial Officer and Secretary | |||
Exhibit | Description | ||
99.1 |
David Keller | Lane Funeral Home-Coulter Chapel; Chattanooga, TN |
Ben Friberg | Heritage Funeral Home and Crematory; Ft. Oglethorpe, GA |
Joe Waterwash | Baird-Case Jordan-Fannin Fnl Home & Cremation Center; Ft. Lauderdale, FL |
Liz Coffelt | Becker-Ritter Funeral Home; Brookfield, WI |
Robert Green | Schooler-Armstrong Funeral Home & Chapel; Amarillo, TX |
Raymond Lucero | Berardinelli Family Funeral Service; Santa Fe, NM |
Ken Summers | P.L. Fry & Son Funeral Home; Manteca, CA |
Kristi AhYou | Franklin & Downs Funeral Homes; Modesto, CA |
Steve Mora | Conejo Mountain Memorial Park; Camarillo, CA |
Investment Performance | |||||||
Investment Performance(1) | Index Performance | ||||||
Discretionary | Total Trust | S&P 500 Stock Index | High Yield Index | 70/30 index Benchmark(2) | |||
3 months ended 3/31/19 | 11.0% | 10.0% | 13.6% | 7.3% | 9.2% | ||
1 year ended 12/31/18 | (8.3%) | (7.4%) | (4.2%) | (2.1%) | (2.7%) | ||
2 years ended 12/31/18 | 3.6% | 4.0% | 16.5% | 5.3% | 8.6% | ||
3 years ended 12/31/18 | 24.0% | 23.0% | 30.4% | 23.3% | 25.4% | ||
4 years ended 12/31/18 | 20.2% | 19.7% | 32.2% | 17.8% | 22.1% | ||
5 years ended 12/31/18 | 30.3% | 29.2% | 50.3% | 20.7% | 29.5% | ||
(1) Investment performance includes realized income and unrealized appreciation (depreciation). | |||||||
(2) The 70/30 Benchmark is 70% weighted to the High Yield Index and 30% weighted to the S&P 500 Stock Index. |
Asset Allocation as of March 31, 2019 (in thousands) | |||||||||||||||
Discretionary Trust Funds | Total Trust Funds | ||||||||||||||
Asset Class | MV | % | MV | % | |||||||||||
Equities | $ | 73,004 | 39 | % | $ | 75,575 | 34 | % | |||||||
Fixed Income | 95,291 | 51 | % | 107,975 | 48 | % | |||||||||
Cash | 17,760 | 9 | % | 38,646 | 17 | % | |||||||||
Other/Insurance | 2,797 | 1 | % | 2,981 | 1 | % | |||||||||
Total Portfolios | $ | 188,852 | 100 | % | $ | 225,177 | 100 | % |
For the Three Months Ended March 31, | |||||||
2018 | 2019 | ||||||
Cash flow provided by operations | $ | 14,883 | $ | 10,994 | |||
Cash used for maintenance capital expenditures | (1,446 | ) | (1,693 | ) | |||
Free Cash Flow | $ | 13,437 | $ | 9,301 | |||
Plus: Incremental Special Items: | |||||||
Severance and Retirement Costs | — | 217 | |||||
Litigation Reserve | — | 125 | |||||
Adjusted Free Cash Flow | $ | 13,437 | $ | 9,643 |
Range (in millions, except per share amounts) | ||
Revenues | $270 - $274 | |
Consolidated EBITDA | $77 - $79 | |
Adjusted Net Income | $24 - $26 | |
Adjusted Diluted Earnings Per Share | $1.34 - $1.44 | |
Free Cash Flow | $37 - $40 |
CARRIAGE SERVICES, INC. | ||||||||
OPERATING AND FINANCIAL TREND REPORT | ||||||||
(IN THOUSANDS - EXCEPT PER SHARE AMOUNTS) | ||||||||
Three Months Ended March 31, | ||||||||
2018 | 2019 | % Change | ||||||
Same Store Contracts | ||||||||
Atneed Contracts | 7,294 | 6,967 | (4.5 | %) | ||||
Preneed Contracts | 1,708 | 1,523 | (10.8 | %) | ||||
Total Same Store Funeral Contracts | 9,002 | 8,490 | (5.7 | %) | ||||
Acquisition Contracts | ||||||||
Atneed Contracts | 1,017 | 1,234 | 21.3 | % | ||||
Preneed Contracts | 93 | 157 | 68.8 | % | ||||
Total Acquisition Funeral Contracts | 1,110 | 1,391 | 25.3 | % | ||||
Total Funeral Contracts | 10,112 | 9,881 | (2.3 | %) | ||||
Funeral Operating Revenue | ||||||||
Same Store Revenue | $ | 49,120 | $ | 45,502 | (7.4 | %) | ||
Acquisition Revenue | 7,162 | 8,440 | 17.8 | % | ||||
Total Funeral Operating Revenue | $ | 56,282 | $ | 53,942 | (4.2 | %) | ||
Cemetery Operating Revenue | ||||||||
Same Store Revenue | $ | 11,251 | $ | 11,289 | 0.3 | % | ||
Acquisition Revenue | — | — | — | % | ||||
Total Cemetery Operating Revenue | $ | 11,251 | $ | 11,289 | 0.3 | % | ||
Financial Revenue | ||||||||
Preneed Funeral Commission Income | $ | 260 | $ | 359 | 38.1 | % | ||
Preneed Funeral Trust Earnings | 2,052 | 1,862 | (9.3 | %) | ||||
Cemetery Trust Earnings | 1,552 | 1,251 | (19.4 | %) | ||||
Preneed Cemetery Finance Charges | 379 | 378 | (0.3 | %) | ||||
Total Financial Revenue | $ | 4,243 | $ | 3,850 | (9.3 | %) | ||
Total Divested Revenue | $ | 1,611 | $ | — | ||||
Total Revenue | $ | 73,387 | $ | 69,081 | (5.9 | %) | ||
Field EBITDA | ||||||||
Same Store Funeral EBITDA | $ | 20,323 | $ | 17,968 | (11.6 | %) | ||
Same Store Funeral EBITDA Margin | 41.4 | % | 39.5 | % | (190 bp) | |||
Acquisition Funeral EBITDA | 2,725 | 3,245 | 19.1 | % | ||||
Acquisition Funeral EBITDA Margin | 38.0 | % | 38.4 | % | 40 bp | |||
Total Funeral EBITDA | $ | 23,048 | $ | 21,213 | (8.0 | %) | ||
Total Funeral EBITDA Margin | 41.0 | % | 39.3 | % | (170 bp) | |||
Same Store Cemetery EBITDA | $ | 3,863 | $ | 3,661 | (5.2 | %) | ||
Same Store Cemetery EBITDA Margin | 34.3 | % | 32.4 | % | (190 bp) | |||
Acquisition Cemetery EBITDA | — | — | — | % | ||||
Acquisition Cemetery EBITDA Margin | — | % | — | % | — bp | |||
Total Cemetery EBITDA | $ | 3,863 | $ | 3,661 | (5.2 | %) | ||
Total Cemetery EBITDA Margin | 34.3 | % | 32.4 | % | (190 bp) | |||
Funeral Financial EBITDA | $ | 2,047 | $ | 1,954 | (4.5 | %) | ||
Cemetery Financial EBITDA | 1,790 | 1,495 | (16.5 | %) | ||||
Total Financial EBITDA | $ | 3,837 | $ | 3,449 | (10.1 | %) | ||
Total Financial EBITDA Margin | 90.4 | % | 89.6 | % | (80 bp) | |||
Total Divested EBITDA | $ | 494 | $ | — | ||||
Total Divested EBITDA Margin | 30.7 | % | — | % | ||||
Total Field EBITDA | $ | 31,242 | $ | 28,323 | (9.3 | %) | ||
Total Field EBITDA Margin | 42.6 | % | 41.0 | % | (160 bp) | |||
OPERATING AND FINANCIAL TREND REPORT | ||||||||
(IN THOUSANDS - EXCEPT PER SHARE AMOUNTS) | ||||||||
Three Months Ended December 31, | ||||||||
2018 | 2019 | % Change | ||||||
Overhead | ||||||||
Total Variable Overhead | $ | 2,560 | $ | 1,938 | (24.3 | %) | ||
Total Regional Fixed Overhead | 1,077 | 1,001 | (7.1 | %) | ||||
Total Corporate Fixed Overhead | 5,162 | 4,877 | (5.5 | %) | ||||
Total Overhead | $ | 8,799 | $ | 7,816 | (11.2 | %) | ||
Overhead as a percentage of Revenue | 12.0 | % | 11.3 | % | (70 bp) | |||
Consolidated EBITDA | $ | 22,443 | $ | 20,507 | (8.6 | %) | ||
Consolidated EBITDA Margin | 30.6 | % | 29.7 | % | (90 bp) | |||
Other Expenses and Interest | ||||||||
Depreciation & Amortization | $ | 4,216 | $ | 4,323 | 2.5 | % | ||
Non-Cash Stock Compensation | 1,100 | 585 | (46.8 | %) | ||||
Interest Expense | 3,735 | 6,328 | 69.4 | % | ||||
Accretion of Discount on Convertible Subordinated Notes | 1,160 | 57 | (95.1 | %) | ||||
Other, Net | (2 | ) | 13 | |||||
Pre-Tax Income | $ | 12,234 | $ | 9,201 | (24.8 | %) | ||
Provision for Income Taxes | 3,365 | 2,577 | ||||||
Tax Adjustment Related to Certain Discrete Items | (487 | ) | 99 | |||||
Net Tax Provision | 2,878 | 2,676 | ||||||
GAAP Net Income | $ | 9,356 | $ | 6,525 | (30.3 | %) | ||
Special Items, Net of Tax, except for ** | ||||||||
Severance and Retirement Costs | $ | — | $ | 171 | ||||
Accretion of Discount on Convertible Subordinated Notes ** | 1,160 | 57 | ||||||
Litigation Reserve | — | 99 | ||||||
Adjusted Net Income | $ | 10,516 | $ | 6,852 | (34.8 | %) | ||
Adjusted Net Profit Margin | 14.3 | % | 9.9 | % | (440 bp) | |||
Adjusted Basic Earnings Per Share | $ | 0.65 | $ | 0.38 | (41.5 | %) | ||
Adjusted Diluted Earnings Per Share | $ | 0.59 | $ | 0.38 | (35.6 | %) | ||
GAAP Basic Earnings Per Share | $ | 0.58 | $ | 0.36 | (37.9 | %) | ||
GAAP Diluted Earnings Per Share | $ | 0.52 | $ | 0.36 | (30.8 | %) | ||
Weighted Average Basic Shares Outstanding | 16,094 | 18,057 | ||||||
Weighted Average Diluted Shares Outstanding | 17,700 | 18,097 | ||||||
Reconciliation to Adjusted Consolidated EBITDA | ||||||||
Consolidated EBITDA | $ | 22,443 | $ | 20,507 | (8.6 | %) | ||
Severance and Retirement Costs | — | 217 | ||||||
Litigation Reserve | — | 125 | ||||||
Adjusted Consolidated EBITDA | $ | 22,443 | $ | 20,849 | (7.1 | %) | ||
Adjusted Consolidated EBITDA Margin | 30.6 | % | 30.2 | % | (40 bp) | |||
(unaudited) | |||||||
December 31, 2018 | March 31, 2019 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 644 | $ | 674 | |||
Accounts receivable, net | 18,897 | 17,732 | |||||
Inventories | 6,751 | 6,815 | |||||
Prepaid and other current assets | 3,011 | 2,063 | |||||
Total current assets | 29,303 | 27,284 | |||||
Preneed cemetery trust investments | 62,432 | 67,742 | |||||
Preneed funeral trust investments | 82,074 | 87,013 | |||||
Preneed receivables, net | 18,441 | 18,610 | |||||
Receivables from preneed trusts | 17,073 | 17,058 | |||||
Property, plant and equipment, net | 260,838 | 259,594 | |||||
Cemetery property, net | 74,958 | 75,156 | |||||
Goodwill | 303,887 | 303,887 | |||||
Intangible and other non-current assets, net | 24,425 | 24,311 | |||||
Operating lease right-of-use assets | — | 15,887 | |||||
Cemetery perpetual care trust investments | 44,071 | 47,970 | |||||
Total assets | $ | 917,502 | $ | 944,512 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 2,015 | $ | 2,083 | |||
Current portion of finance lease obligations | 312 | 299 | |||||
Current portion of operating lease obligations | — | 2,653 | |||||
Accounts payable | 9,987 | 7,093 | |||||
Accrued and other liabilities | 22,644 | 21,352 | |||||
Total current liabilities | 34,958 | 33,480 | |||||
Long-term debt, net of current portion | 6,925 | 6,470 | |||||
Credit facility | 26,145 | 20,099 | |||||
Convertible subordinated notes due 2021 | 5,732 | 5,796 | |||||
Senior notes due 2026 | 319,108 | 319,261 | |||||
Obligations under finance leases, net of current portion | 6,143 | 6,073 | |||||
Obligations under operating leases, net of current portion | — | 13,990 | |||||
Deferred preneed cemetery revenue | 45,997 | 46,151 | |||||
Deferred preneed funeral revenue | 28,606 | 28,569 | |||||
Deferred tax liability | 31,263 | 32,254 | |||||
Other long-term liabilities | 3,133 | 1,771 | |||||
Deferred preneed cemetery receipts held in trust | 62,432 | 67,742 | |||||
Deferred preneed funeral receipts held in trust | 82,074 | 87,013 | |||||
Care trusts’ corpus | 43,494 | 47,734 | |||||
Total liabilities | 696,010 | 716,403 | |||||
Commitments and contingencies: | |||||||
Stockholders’ equity: | |||||||
Common stock | 257 | 258 | |||||
Additional paid-in capital | 243,849 | 243,940 | |||||
Retained earnings | 71,680 | 78,205 | |||||
Treasury stock | (94,294 | ) | (94,294 | ) | |||
Total stockholders’ equity | 221,492 | 228,109 | |||||
Total liabilities and stockholders’ equity | $ | 917,502 | $ | 944,512 |
(unaudited) | |||||||
Three Months Ended March 31, | |||||||
2018 | 2019 | ||||||
Revenues: | |||||||
Service revenue | $ | 38,685 | $ | 36,652 | |||
Property and merchandise revenue | 30,184 | 28,579 | |||||
Other revenue | 4,518 | 3,850 | |||||
73,387 | 69,081 | ||||||
Field costs and expenses: | |||||||
Cost of service | 18,617 | 18,097 | |||||
Cost of merchandise | 23,123 | 22,261 | |||||
Cemetery property amortization | 908 | 849 | |||||
Field depreciation expense | 2,865 | 3,085 | |||||
Regional and unallocated funeral and cemetery costs | 3,281 | 2,789 | |||||
Other expenses | 405 | 400 | |||||
49,199 | 47,481 | ||||||
Gross profit | 24,188 | 21,600 | |||||
Corporate costs and expenses: | |||||||
General, administrative and other | 6,618 | 5,612 | |||||
Home office depreciation and amortization | 443 | 389 | |||||
7,061 | 6,001 | ||||||
Operating income | 17,127 | 15,599 | |||||
Interest expense | (3,735 | ) | (6,328 | ) | |||
Accretion of discount on convertible subordinated notes | (1,160 | ) | (57 | ) | |||
Other, net | 2 | (13 | ) | ||||
Income before income taxes | 12,234 | 9,201 | |||||
Provision for income taxes | (3,365 | ) | (2,577 | ) | |||
Tax adjustment related to certain discrete items | 487 | (99 | ) | ||||
Total provision for income taxes | (2,878 | ) | (2,676 | ) | |||
Net income | $ | 9,356 | $ | 6,525 | |||
Basic earnings per common share: | $ | 0.58 | $ | 0.36 | |||
Diluted earnings per common share: | $ | 0.52 | $ | 0.36 | |||
Dividends declared per common share | $ | 0.075 | $ | 0.075 | |||
Weighted average number of common and common equivalent shares outstanding: | |||||||
Basic | 16,094 | 18,057 | |||||
Diluted | 17,700 | 18,097 |
(unaudited) | |||||||
Three Months Ended March 31, | |||||||
2018 | 2019 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 9,356 | $ | 6,525 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 4,216 | 4,323 | |||||
Provision for losses on accounts receivable | 459 | 366 | |||||
Stock-based compensation expense | 1,100 | 585 | |||||
Deferred income tax expense | 207 | 991 | |||||
Amortization of deferred financing costs | 208 | 94 | |||||
Amortization of capitalized commissions on preneed contracts | 149 | 138 | |||||
Accretion of discount on convertible subordinated notes | 1,160 | 57 | |||||
Accretion of discount on senior notes | — | 120 | |||||
Net loss on sale and disposal of other assets | 19 | 167 | |||||
Other | 145 | 294 | |||||
Changes in operating assets and liabilities that provided (used) cash: | |||||||
Accounts and preneed receivables | (533 | ) | 630 | ||||
Inventories, prepaid and other current assets | 429 | 736 | |||||
Intangible and other non-current assets | (85 | ) | (24 | ) | |||
Preneed funeral and cemetery trust investments | 3,886 | (14,133 | ) | ||||
Accounts payable | 727 | (2,895 | ) | ||||
Accrued and other liabilities | (3,154 | ) | (1,586 | ) | |||
Deferred preneed funeral and cemetery revenue | 1,346 | 117 | |||||
Deferred preneed funeral and cemetery receipts held in trust | (4,752 | ) | 14,489 | ||||
Net cash provided by operating activities | 14,883 | 10,994 | |||||
Cash flows from investing activities: | |||||||
Net proceeds from the sale of business and other assets | — | 100 | |||||
Capital expenditures | (2,065 | ) | (3,543 | ) | |||
Net cash used in investing activities | (2,065 | ) | (3,443 | ) | |||
Cash flows from financing activities: | |||||||
Payments against the term loan | (3,750 | ) | — | ||||
Borrowings from the credit facility | 3,700 | 10,100 | |||||
Payments against the credit facility | (11,500 | ) | (16,200 | ) | |||
Payments on other long-term debt and obligations under finance leases | (428 | ) | (471 | ) | |||
Payments on contingent consideration recorded at acquisition date | (138 | ) | (162 | ) | |||
Proceeds from the exercise of stock options and employee stock purchase plan contributions | 626 | 746 | |||||
Taxes paid on restricted stock vestings and exercises of non-qualified options | (294 | ) | (174 | ) | |||
Dividends on common stock | (1,207 | ) | (1,360 | ) | |||
Net cash used in financing activities | (12,991 | ) | (7,521 | ) | |||
Net increase (decrease) in cash and cash equivalents | (173 | ) | 30 | ||||
Cash and cash equivalents at beginning of year | 952 | 644 | |||||
Cash and cash equivalents at end of year | $ | 779 | $ | 674 |
• | Special Items are defined as charges or credits included in our GAAP financial statements that can vary from period to period and are not reflective of costs incurred in the ordinary course of our operations. Special Items are typically taxed at the federal statutory rate, except for the accretion of the discount on Convertible Subordinated Notes, as this is a non-tax deductible item. |
• | Adjusted Net Income is defined as net income plus adjustments for Special Items and other expenses or gains that we believe do not directly reflect our core operations and may not be indicative of our normal business operations. |
• | Consolidated EBITDA is defined as net income before income taxes, interest expenses, non-cash stock compensation, depreciation and amortization, and interest income and other, net. |
• | Adjusted Consolidated EBITDA is defined as Consolidated EBITDA plus adjustments for Special Items and other expenses or gains that we believe do not directly reflect our core operations and may not be indicative of our normal business operations. |
• | Adjusted Consolidated EBITDA Margin is defined as Adjusted Consolidated EBITDA as a percentage of revenue. |
• | Adjusted Free Cash Flow is defined as net cash provided by operations, adjusted by Special Items as deemed necessary, less cash for maintenance capital expenditures. |
• | Funeral Field EBITDA is defined as Funeral Gross Profit, excluding depreciation and amortization, regional and unallocated costs and Financial EBITDA related to the Funeral Home segment. |
• | Cemetery Field EBITDA is defined as Cemetery Gross Profit, excluding depreciation and amortization, regional and unallocated costs and Cemetery Financial EBITDA related to the Cemetery segment. |
• | Funeral Financial EBITDA is defined as Funeral Financial Revenue less Funeral Financial Expenses. |
• | Cemetery Financial EBITDA is defined as Cemetery Financial Revenue less Cemetery Financial Expenses. |
• | Total Field EBITDA is defined as Gross Profit, excluding field depreciation, cemetery property amortization and regional and unallocated funeral and cemetery costs. |
• | Total Field EBITDA Margin is defined as Total Field EBITDA as a percentage of revenue. |
• | Divested Revenue is defined as revenues from three cemetery businesses that we ceased to operate on September 30, 2018, as a result of an expired management agreement. |
• | Divested EBITDA is defined as Divested Revenue, less field level and financial expenses related to one funeral home business that was sold in 2017 and three cemetery businesses related to the expired management agreement noted above. |
• | Divested EBITDA Margin is defined as Divested EBITDA as a percentage of Divested Revenue. |
• | Adjusted Basic Earnings Per Share is defined as GAAP Basic Earnings Per Share, adjusted for Special Items. |
• | Adjusted Diluted Earnings Per Share is defined as GAAP Diluted Earnings Per Share, adjusted for Special Items. |
For the Three Months Ended March 31, | |||||||
2018 | 2019 | ||||||
Net Income | $ | 9,356 | $ | 6,525 | |||
Special Items, Net of Tax, except for ** | |||||||
Severance and Retirement Costs | — | 171 | |||||
Accretion of Discount on Convertible Subordinated Notes ** | 1,160 | 57 | |||||
Litigation Reserve | — | 99 | |||||
Adjusted Net Income | $ | 10,516 | $ | 6,852 | |||
** Special items are typically taxed at the federal statutory rate, except for the Accretion of the Discount on Convertible Subordinated Notes, as this is a non-tax deductible item. |
For the Three Months Ended March 31, | |||||||
2018 | 2019 | ||||||
Net Income | $ | 9,356 | $ | 6,525 | |||
Total Provision for Income Taxes | 2,878 | 2,676 | |||||
Income Before Income Taxes | 12,234 | 9,201 | |||||
Interest Expense | 3,735 | 6,328 | |||||
Accretion of Discount on Convertible Subordinated Notes | 1,160 | 57 | |||||
Non-Cash Stock Compensation | 1,100 | 585 | |||||
Depreciation & Amortization | 4,216 | 4,323 | |||||
Other, Net | (2 | ) | 13 | ||||
Consolidated EBITDA | $ | 22,443 | $ | 20,507 | |||
Adjusted For: | |||||||
Severance and Retirement Costs | — | 217 | |||||
Litigation Reserve | — | 125 | |||||
Adjusted Consolidated EBITDA | $ | 22,443 | $ | 20,849 | |||
Revenue | $ | 73,387 | $ | 69,081 | |||
Adjusted Consolidated EBITDA Margin | 30.6 | % | 30.2 | % |
For the Three Months Ended March 31, | |||||||
2018 | 2019 | ||||||
Funeral Gross Profit (GAAP) | $ | 19,664 | $ | 18,076 | |||
Depreciation & Amortization | 2,564 | 2,771 | |||||
Regional & Unallocated Costs | 2,864 | 2,320 | |||||
Funeral Financial EBITDA | (2,047 | ) | (1,954 | ) | |||
Funeral Divested EBITDA | 3 | — | |||||
Funeral Field EBITDA | $ | 23,048 | $ | 21,213 |
For the Three Months Ended March 31, | |||||||
2018 | 2019 | ||||||
Cemetery Gross Profit (GAAP) | $ | 4,524 | $ | 3,524 | |||
Depreciation & Amortization | 1,209 | 1,163 | |||||
Regional & Unallocated Costs | 417 | 469 | |||||
Cemetery Financial EBITDA | (1,790 | ) | (1,495 | ) | |||
Cemetery Divested EBITDA | (497 | ) | — | ||||
Cemetery Field EBITDA | $ | 3,863 | $ | 3,661 |
For the Three Months Ended March 31, | |||||||
2018 | 2019 | ||||||
Funeral Field EBITDA | $ | 23,048 | $ | 21,213 | |||
Cemetery Field EBITDA | 3,863 | 3,661 | |||||
Funeral Financial EBITDA | 2,047 | 1,954 | |||||
Cemetery Financial EBITDA | 1,790 | 1,495 | |||||
Funeral Divested EBITDA | (3 | ) | — | ||||
Cemetery Divested EBITDA | 497 | — | |||||
Total Field EBITDA | $ | 31,242 | $ | 28,323 |
For the Three Months Ended March 31, | |||||||
2018 | 2019 | ||||||
GAAP Basic Earnings Per Share | $ | 0.58 | $ | 0.36 | |||
Special Items | 0.07 | 0.02 | |||||
Adjusted Basic Earnings Per Share | $ | 0.65 | $ | 0.38 |
For the Three Months Ended March 31, | |||||||
2018 | 2019 | ||||||
GAAP Diluted Earnings Per Share | $ | 0.52 | $ | 0.36 | |||
Special Items | 0.07 | 0.02 | |||||
Adjusted Diluted Earnings Per Share | $ | 0.59 | $ | 0.38 |
Three Months Ended March 31, 2018 | Twelve Months Ended December 31, 2018 | ||||||||||||||
Revenue | EBITDA | Revenue | EBITDA | ||||||||||||
2014 Acquired Portfolio | $ | 3,611 | $ | 1,565 | $ | 12,989 | $ | 5,254 |
March 31, 2020E | |||
Net Income | $ | 24,800 | |
Total Tax Provision | 9,400 | ||
Pretax Income | 34,200 | ||
Net Interest Expense, including Accretion of Discount on Convertible Notes | 24,400 | ||
Depreciation & Amortization, including Non-cash Stock Compensation | 19,600 | ||
Consolidated EBITDA | $ | 78,200 |
March 31, 2020E | |||
Net Income | $ | 24,800 | |
Special Items | 200 | ||
Adjusted Net Income | $ | 25,000 |
March 31, 2020E | |||
GAAP Diluted Earnings Per Share | $ | 1.38 | |
Special Items | 0.01 | ||
Adjusted Diluted Earnings Per Share | $ | 1.39 |
March 31, 2020E | |||
Cash flow Provided by Operations | $ | 48,500 | |
Cash used for Maintenance Capital Expenditures | (10,000 | ) | |
Free Cash Flow | $ | 38,500 |
• | our ability to find and retain skilled personnel; |
• | our ability to execute our growth strategy; |
• | the effects of competition; |
• | the execution of our Standards Operating, 4E Leadership and Strategic Acquisition Models; |
• | changes in the number of deaths in our markets; |
• | changes in consumer preferences; |
• | our ability to generate preneed sales; |
• | the investment performance of our funeral and cemetery trust funds; |
• | fluctuations in interest rates; |
• | 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; |
• | 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 insurance or taxes; |
• | 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; |
• | consolidation of the funeral and cemetery industry; and |
• | other factors and uncertainties inherent in the funeral and cemetery industry. |
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