HOUSTON, July 30 /PRNewswire-FirstCall/ -- Carriage Services, Inc.
(NYSE: CSV) today announced results for the second quarter ended
June 30, 2009. Financial highlights from continuing operations for
the second quarter of 2009 compared to the second quarter of 2008
were as follows: Second Quarter Selected Financial Results (amounts
in millions, except per share amounts) Change Q2 2008(1) Q2 2009
Amount Percent ---------- ------- ------ ------- Total Revenues
$42.7 $44.5 $1.8 4 % Consolidated EBITDA $8.5 $11.0 $2.5 28 %
Consolidated EBITDA Margin 20.0 % 24.6 % 460 bp 23 % Net Income
$0.7 $2.0 $1.4 196 % Diluted Earnings per Share $0.04 $0.12 $0.08
200 % (1) For comparability purposes Q2 2008 is adjusted to exclude
special charges totaling $1.1 million. HIGHLIGHTS Melvin C. Payne,
Chairman and Chief Executive Officer, stated, "We have had good
quarters before, but our second quarter this year was special. Our
field leadership executed extraordinarily well, producing a ten
year record high for second quarter diluted earnings per share of
$0.12 when applying current accounting principles to our previous
second quarter results. While we continue to be impacted by weak
death rates and difficult economic conditions in our local markets,
our Managing Partners, Sales Managers and employees rose to the
challenge and made the most of their service and sales revenue
opportunities with client families, resulting in a revenue increase
of 4.2%. "We had many performance highlights during the second
quarter, including an increase of 5.3% in our same store funeral
revenue averages, excellent cost management across our funeral and
cemetery portfolios resulting in an increase of $2.4 million or 18%
in Total Field EBITDA and a 410 basis point increase to 34.9% in
Total Field EBITDA Margin, as well as an increase of 35.2% in the
market value of our discretionary trust funds. But the greatest
highlight in the midst of a deep recession was the performance of
our cemetery sales teams, who set an all time preneed property
sales record in April and then substantially exceeded it with
another record month in May. Such exceptional performance produced
a historically high recognized preneed property sales record for
the second quarter that was 78% higher than the prior year and
which made our EPS record high of $0.12 possible. "I want to
congratulate and thank our leaders and employees for an amazing
second quarter performance in a very difficult revenue environment.
Now the challenge is to maintain our focus and to sustain our
performance during the second half of 2009 and beyond. Because of
our confidence in the execution skills of our operating and sales
leaders and employees, we are increasing our rolling four quarter
EPS outlook range to $0.38-$0.42 per share." UNAUDITED INCOME
STATEMENT FROM CONTINUING OPERATIONS Period Ended June 30, 2009
($000's) Three Three Six Six Months Months Months Months Ended
Ended Ended Ended June 30, June 30, June 30, June 30, 2008 2009
2008 2009 ---- ---- ---- ---- CONTINUING OPERATIONS Same Store
Contracts Atneed Contracts 4,103 3,927 8,743 8,093 Preneed
Contracts 983 919 2,133 1,969 --- --- ----- ----- Total Same Store
Funeral Contracts 5,086 4,846 10,876 10,062 ----- ----- ------
------ Acquisition Contracts Atneed Contracts 723 698 1,523 1,412
Preneed Contracts 229 220 469 462 New Store Openings 232 209 442
444 --- --- --- --- Total Funeral Contracts 6,270 5,973 13,310
12,380 ===== ===== ====== ====== Funeral Home Revenue Same Store
Funeral Operations Revenue $26,724 $26,819 $58,028 $56,274 Preneed
Commission and Other Revenue 675 502 1,427 1,090 --- --- -----
----- Total Funeral Same Store Revenue 27,399 27,321 59,455 57,364
Acquired Funeral Operations Revenue 4,752 4,475 9,713 9,272 -----
----- ----- ----- Total Funeral Home Revenue $32,151 $31,796
$69,168 $66,636 Cemetery Revenue Same Store Cemetery Operations
Revenue $8,163 $9,893 $15,580 $18,337 Same Store Cemetery Financial
Revenue 1,004 935 2,008 1,934 ----- --- ----- ----- Total Cemetery
Same Store Revenue 9,167 10,828 17,588 20,271 Acquired Cemetery
Operations Revenue 1,380 1,843 3,004 3,269 Acquired Cemetery
Financial Revenue 39 83 120 177 -- -- --- --- Total Cemetery
Acquisition Revenue 1,419 1,926 3,124 3,446 ----- ----- ----- -----
Total Cemetery Revenue $10,586 $12,754 $20,712 $23,717 Total
Revenue from Continuing Operations $42,737 $44,550 $89,880 $90,353
======= ======= ======= ======= Field EBITDA from Continuing
Operations Same Store Funeral Field EBITDA $9,099 $9,823 $22,780
$21,752 Same Store Funeral Field EBITDA Margin 33.2% 36.0% 38.3%
37.9% Acquired Funeral Field EBITDA 1,347 1,521 3,093 3,131
Acquired Funeral Field EBITDA Margin 28.3% 34.0% 31.8% 33.8% ----
---- ---- ---- Total Funeral Home Field EBITDA $10,446 $11,344
$25,873 $24,883 Total Funeral Home Field EBITDA Margin 32.5% 35.7%
37.4% 37.3% Same Store Cemetery Field EBITDA 2,307 3,591 4,476
6,121 Same Store Cemetery Field EBITDA Margin 25.2% 33.2% 25.4%
30.2% Acquired Cemetery Field EBITDA 415 615 1,094 1,089 Acquired
Cemetery Field EBITDA Margin 29.2% 31.9% 35.0% 31.6% ---- ---- ----
---- Total Cemetery Field EBITDA $2,722 $4,206 $5,570 $7,210 Total
Cemetery Field EBITDA Margin 25.7% 33.0% 26.9% 30.4% ---- ---- ----
---- Total Field EBITDA from Continuing Operations $13,168 $15,550
$31,443 $32,093 Total Field EBITDA Margin from Continuing
Operations 30.8% 34.9% 35.0% 35.5% Overhead Total Variable Overhead
$338 $472 $1,405 $1,483 Total Regional Fixed Overhead 833 710 1,666
1,471 Total Corporate Fixed Overhead 3,465 3,415 6,435 6,788 -----
----- ----- ----- Total Overhead $4,636 $4,597 $9,506 $9,742 10.8%
10.3% 10.6% 10.8% Adjusted Consolidated EBITDA from Continuing
Operations $8,532 $10,953 $21,937 $22,351 ------ ------- -------
------- Adjusted Consolidated EBITDA Margin from Continuing
Operations 20.0% 24.6% 24.4% 24.7% Special Charges Litigation
Related Legal Costs $258 $- $923 $- Termination Expenses 653 - 700
- Other Special Charges 153 - 193 - --- --- --- --- Sum of Special
Charges $1,064 $- $1,816 $- ------ ------- ------- -------
Consolidated EBITDA from Continuing Operations $7,468 $10,953
$20,121 $22,351 ------ ------- ------- ------- 17.5% 24.6% 22.4%
24.7% Property Depreciation & Amortization 2,545 2,795 5,075
5,399 Restricted Stock Amortization 347 300 561 542 Interest
Expense 4,556 4,660 9,176 9,259 Interest (Income) and Other (51)
(220) (142) (223) --- ---- ---- ---- Pretax Income $71 $3,418
$5,451 $7,374 --- ------ ------ ------ Income tax 28 1,384 2,153
2,986 Net income from Continuing Operations $43 $2,034 $3,298
$4,388 === ====== ====== ====== 0.1% 4.6% 3.7% 4.9% Diluted EPS
from Continuing Operations $- $0.12 $0.17 $0.25 Diluted EPS from
Continuing Operations Excluding Special Charges $0.04 $0.12 $0.23
$0.25 Diluted Shares Outstanding 19,408 17,379 19,355 17,410 TREND
REPORTING Management monitors consolidated same store and
acquisition field operating and financial results both on a five
year and most recent rolling four quarters basis ("Trend Reports")
to reflect long term and short term trends and seasonality.
"Acquisition" is defined as businesses acquired since January 2005
(date of refinancing our Senior Notes). The Trend Reports highlight
trends in volumes, revenues, Field EBITDA (controllable profit),
Field EBITDA Margin (controllable profit margin) and the components
of our overhead. Trend reporting allows us to focus on the key
operational and financial drivers relevant to the longer term
performance and valuation of our portfolio of deathcare businesses.
Please go to the Investor Relations homepage of Carriage's web site
at http://www.carriageservices.com/ for a link to our consolidated
Annual and Quarterly Trend Reports. CONSOLIDATED RESULTS Carriage
earned $0.12 for the second quarter ended June 30, 2009. For the
second quarter of 2008, Carriage reported $0.00 per diluted share,
as earnings were negatively impacted by special charges totaling
$1.1 million. Excluding those special charges, Carriage would have
reported diluted earnings per share of $0.04 and Consolidated
EBITDA of $8.5 million for the second quarter of 2008. After
adjusting 2008, our 2009 second quarter EPS increased by $.08 or
200% and Consolidated EBITDA increased by $2.5 million or 28% on a
$1.8 million increase in revenue and $1.4 million reduction in
operating costs across all areas of our company. For the six months
ended June 30, 2009, Carriage earned $0.25 per diluted share which
compared to $0.23 for the first half of 2008 excluding special
charges totaling $1.8 million. First half total revenue increased
$0.5 million to $90.4 million. First half 2009 Consolidated EBITDA
was $22.4 million and Consolidated EBITDA Margin was 24.7% compared
to 2008 adjusted Consolidated EBITDA of $21.9 million and adjusted
Consolidated EBITDA Margin of 24.4%. FUNERAL OPERATIONS Second
quarter Same Store Funeral Operating Revenue increased slightly by
$95,000 or 0.4% as the average revenue per contract increased 5.3%
while the number of contracts declined 4.7%. Funeral Revenue from
the Acquisition portfolio decreased $0.3 million or 5.8% as the
average revenue per contract decreased 1.0% and the number of
contracts declined 4.8%. The overall cremation rate for the second
quarter of 2009 was 41.8% compared to 39.9% for the second quarter
of last year. A recent initiative implemented in the third quarter
of 2008 to increase the average revenue per cremation contract,
largely by converting direct cremations to cremations with
services, continues to gain traction and helped not only our
cremation average but also customer satisfaction levels with our
cremation families. As a result of this initiative, which includes
new training and presentation options for client families, the
average revenue per cremation contract in the current quarter
increased 3.2% from the second quarter of 2008. Cremations with
services have risen from 34.7% of our total cremation contracts in
the third quarter of 2008 to 40.4% in the second quarter of 2009.
Same Store Funeral Field EBITDA increased by $0.7 million or 8.0%
compared to the second quarter of 2008, while the related Field
EBITDA Margin increased 280 basis points to 36.0% from 33.2%. Our
Acquisition portfolio Funeral Field EBITDA increased $174,000 or
12.9% to $1.5 million and the related Field EBITDA Margin increased
570 basis points to 34.0% from 28.3%. The year over year
improvement in Same Store and Acquisition Field EBITDA was
substantially due to the ability of our Managing Partners to reduce
operating costs across almost all expense categories. For the six
months ended June 30, 2009, total funeral revenue was $66.6
million, a year over year decline of $2.6 million or 3.8%,
resulting primarily from a 7.0% decrease in the number of contracts
and a 4.0% increase in the average revenue per contract. Total
Funeral Field EBITDA declined by $1.0 million or 3.8% to $24.9
million, as our Total Funeral Field EBITDA Margin remained flat at
37.3% because of excellent cost management in a weak revenue
environment. CEMETERY OPERATIONS Same Store Cemetery Operations
Revenue increased $1.7 million or 21.2% to $9.9 million and
Cemetery Operations Revenue from our Acquisition portfolio
increased $0.5 million or 33.6% to $1.8 million. The revenue
improvement arose from preneed sales of cemetery property which
increased $2.9 million or 78% driven by a 43% increase in the
number of properties sold along with an 18% increase in the average
revenue per space sold. A substantial portion of the increase in
the average revenue per space sold is due to sales of recently
constructed higher value mausoleum and ground inventory.
Additionally, 90% of the property sales qualified for revenue
recognition in the current year compared to 82% a year ago, which
reflects an increase in the quality of our sales. Same Store
Cemetery Field EBITDA increased by $1.3 million or 56% for the
second quarter which was the result of $1.7 million higher revenue
and 800 basis point increase in Field EBITDA Margin to 33.2% from
25.2% in the prior year's second quarter. Acquisition Cemetery
Field EBITDA increased by $.02 million or 48% as a result of the
higher revenue and lower operating costs. Field EBITDA Margin
increased to 31.9% from 29.2% in the prior year. In order to
increase revenues from preneed property sales and to build new
heritage for our largest cemeteries, we began an initiative in the
third quarter of 2008 to upgrade our sales leadership and increase
both the quantity and quality of the cemetery sales counselors at
our major parks. We subsequently reached our minimum headcount
target at the end of January 2009, but continue to hire quality
cemetery sales counselors to improve our sales force, as the
recessionary environment has created a larger and higher quality
pool of candidates from which we can select. The combination of
stronger sales leadership, more and better preneed sales counselors
and greater product offerings in our inventory resulted in
significantly higher preneed cemetery property sales activity
levels and sales success in this quarter compared to the second
quarter of 2008. Total Cemetery Financial Revenue from trust funds
and finance charges declined by approximately $25,000 compared to
the second quarter a year ago. Financial income from our perpetual
care trust funds, where current earnings are recognized, increased
by $0.2 million. Financial income from our merchandise and services
trust funds, where cumulative realized earnings are recognized at
the point when the merchandise and services are provided, decreased
by $0.2 million. For the six months ended June 30, 2009 total
cemetery operating revenue increased $3.0 million or 14.5% to $23.7
million compared to the prior year period, driven by an increase in
preneed property sales of $3.1 million or 39.2%. Total Cemetery
Field EBITDA increased by $1.6 million or 29.4%, as Total Cemetery
Field EBITDA Margin increased 350 basis points to 30.4% from 26.9%
on the strength of the big increase in preneed property sales.
OVERHEAD Total Overhead declined $39,000 to $4.6 million in the
second quarter of 2009 as compared to the second quarter of 2008
and declined $548,000, or 10.7% sequentially from the first quarter
of 2009 as costs in almost all departments in our home office
trended down. Total Overhead in the first half was $9.7 million,
approximately $0.2 million higher than the same 2008 period because
of higher preneed administration costs. SHARE REPURCHASE PROGRAM
During 2008 the Board of Directors approved plans for common stock
repurchases totaling $10 million. During the second quarter of 2009
we purchased 672,994 shares of common stock at an average cost per
share of $3.15. Through June 30, 2009, we have repurchased a
cumulative total of 2,753,353 shares at an average cost of $3.12
per share. As of June 30, 2009, the amount available to spend in
the future for share repurchases is $1.4 million. TRUST FUND
PERFORMANCE Over the last nine months, we have successfully
repositioned the investments in the discretionary trust fund
accounts by exploiting credit and illiquidity opportunities during
the recent capital markets crisis. We are now well positioned to
produce higher amounts of both income and capital gains from our
trust funds over the next few years in support of our field
operations. Shown below are consolidated performance metrics for
our combined trust fund portfolios (preneed funeral, cemetery
merchandise and cemetery perpetual care) at key dates since June
30, 2008. ($in 000's) Discretionary Accounts ----------------------
Market Value, Income, Yield, Gain (Loss)
------------------------------------------ Est. Yield Unrealized
Market Annual on Gain / Date Value Income Cost (Loss) ---- ------
------ ----- ----------- 6/30/08 $132,794 $4,262 3.19% ($1,853)
12/31/08 $101,554 $5,431 5.27% ($25,753) 3/9/09 $79,439 $6,611
7.16% ($40,408) 3/31/09 $89,249 $7,208 7.52% ($29,217) 6/30/09
$120,667 $7,352 7.82% $7,014 Total Trust Funds -----------------
Cost, Market Value, Gain (Loss) -------------------------------
Unrealized Cost Market Gain / Date Basis Value (Loss) ---- -------
------ ---------- 6/30/08 $181,622 $179,938 ($1,684) 12/31/08
$167,242 $138,476 ($28,766) 3/9/09 $156,262 $112,114 ($44,147)
3/31/09 $159,023 $126,324 ($32,699) 6/30/09 $153,999 $158,928
$4,929 CSV Trust Funds: Market Value Performance Discretionary
Total Trust Accounts Funds --------------- -------------- Timeframe
Amount Percent Amount Percent ---------- ------ ------- ------
------- 1 year ending 6/30/09 ($12,127) -9.1% ($21,010) -11.7% 6
months ending 6/30/09 +$19,113 +18.8% +$20,452 +14.8% 3/9/09 to
6/30/09 +$41,228 +51.9% +$46,814 +41.8% 3 months ending 6/30/09
+$31,418 +35.2% +$32,604 +25.8% Equity Index Performance
------------------------ Timeframe DJIA S&P 500 NASDAQ
--------- ---- ------- ------ 1 year ending 6/30/09 -25.6% -28.2%
-20.0% 6 months ending 6/30/09 -3.8% +3.2% +16.4% 3/9/09 to 6/30/09
+29.0% +36.9% +44.6% 3 months ending 6/30/09 +11.0% +15.9% +20.0%
CSV Trust Funds: Portfolio Profile
----------------------------------- 6/30/2008 6/30/2009 ---------
--------- Total Trust Funds Total Trust Funds -----------------
----------------- Asset Class MV % MV % ----------- -- - -- -
Equities $92,043 51% $65,160 41% Fixed Income $58,678 33% $81,053
51% Cash $29,217 16% $12,714 8% ---- ------- -- ------- --- Total
Portfolios $179,938 100% $158,928 100% ---------------- --------
--- -------- --- We believe the financial revenue to be derived
from our cemetery perpetual care trusts and the maturing contracts
in our preneed funeral and cemetery trusts will modestly increase
our earnings in the second half of 2009 compared to prior years,
and will have an increasingly positive earnings impact in future
years from maturing contracts with higher levels of accumulated
income. CASH FLOW We generated Free Cash Flow (defined as cash flow
from operations less maintenance capital expenditures) of $6.5
million during the second quarter of 2009 compared to Free Cash
Flow of $6.7 million for the corresponding 2008 period. The sources
and uses of cash for the first six months of 2009 consisted of the
following (in millions): Adjusted cash provided by operations(1)
$10.2 Cash used for maintenance capital expenditures (1.6) ----
Adjusted Free Cash Flow for First Six Months of 2009 $8.6 Cash and
liquid investments at beginning of year 5.0 Proceeds from sales of
assets 0.7 Cash used for growth capital expenditures - funeral
homes (0.3) Cash used for growth capital expenditures - cemeteries
(1.9) Cash used for litigation settlement (3.3) Share repurchase
program (2.8) Other financing activities (0.4) ---- Cash at June
30, 2009 $5.6 ==== (1) Cash provided by operations excludes the
$3.3 million litigation settlement reported in the fourth quarter
of 2008 and paid in the first quarter of 2009. OUTLOOK The Four
Quarter Outlook ranges for the rolling four quarter period ending
June 30, 2010 are intended to approximate what the Company believes
will be the sustainable earning power of its portfolio of deathcare
assets over the next four quarters as our three models are
effectively executed. Performance drivers include funeral contract
volumes, cremation mix, preneed sales, preneed maturities and
deliveries, average revenue per service and overhead items. Other
variables include the effective tax rate, which is currently
estimated to be in the range of 39% to 41% and the estimated number
of diluted shares outstanding which is currently estimated to be
approximately 17 million and is subject to change based on changes
in the share price and activity in the share repurchase plan.
Though we expect to acquire businesses in the future, we have not
forecast any acquisitions in the Four Quarter Outlook ending June
30, 2010, because of the uncertainty as to the timing and size of
acquisitions. ROLLING FOUR QUARTER OUTLOOK - Period Ending June 30,
2010 (amounts in millions, except per share amounts) Range -----
Revenues $177.0 - $182.0 Field EBITDA $62.0 - $64.5 Field EBITDA
Margin 35.0% - 35.5% Total Overhead $21.0 - $22.2 Consolidated
EBITDA $41.0 - $42.3 Consolidated EBITDA Margin 23.2% Interest
$18.1 Depreciation & Amortization $12.0 Income Taxes $4.2 -
$4.9 Net Income $6.5 - $7.3 Diluted Earnings Per Share $0.38 -
$0.42 Free Cash Flow $14.5 - $16.0 Earnings for this period are
expected to increase relative to 12 months ending June 30, 2009 for
the following reasons: -- Increase in Funeral Field EBITDA with
better execution of the Standards Operating Model -- Increase in
Same Store Cemetery EBITDA with higher preneed sales and lower bad
debt expense -- Higher cemetery financial revenue -- Tighter
management of overhead expenses -- Lower special charges due
primarily to elimination of most litigation Long Term Outlook -
Through 2013 (Base Year 2008)
--------------------------------------------------------------------
Revenue growth of 6-7% annually, including acquisitions
Consolidated EBITDA growth of 9-11% annually, including
acquisitions Consolidated EBITDA Margin range of 23-26% Delever the
Company through increasing EPS and Free Cash Flow
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CONFERENCE CALL Carriage Services has scheduled a conference call
for tomorrow, Friday, July 31, 2009 at 10:30 a.m. eastern time. To
participate in the call, please dial 480-629-9692 at least ten
minutes before the conference call begins and ask for the Carriage
Services conference call. A telephonic replay of the conference
call will be available through August 7, 2009 and may be accessed
by dialing 303-590-3030 and using pass code 4116677#. An audio
archive will also be available on the company's website at
http://www.carriageservices.com/ shortly after the call and will be
accessible for approximately 90 days. For more information, please
contact Karen Roan at DRG&E at 713-529-6600 or email . Carriage
Services is a leading provider of death care services and products.
Carriage operates 134 funeral homes in 25 states and 32 cemeteries
in 11 states. Use of Non-GAAP Financial Measures This press release
uses the following Non-GAAP financial measures "free cash flow" and
"EBITDA". Both free cash flow and EBITDA are used by investors to
value common stock. The Company considers free cash flow to be an
important indicator of its ability to generate cash for
acquisitions and other strategic investments. The Company has
included EBITDA in this press release because it is widely used by
investors to compare the Company's financial performance with the
performance of other deathcare companies. The Company also uses
Field EBITDA and Field EBITDA Margin to monitor and compare the
financial performance of the individual funeral and cemetery field
businesses. EBITDA does not give effect to the cash the Company
must use to service its debt or pay its income taxes and thus does
not reflect the funds actually available for capital expenditures.
In addition, the Company's presentation of EBITDA may not be
comparable to similarly titled measures other companies report.
Non-GAAP financial measures should be viewed in addition to, and
not as an alternative for, the Company's reported operating results
or cash flow from operations or any other measure of performance as
determined in accordance with GAAP. The Company categorizes its
general and administrative expenses into three categories of
overhead: (1) variable overhead, (2) regional fixed overhead and
(3) corporate fixed overhead. Variable overhead consists of cost
and expense such as incentive compensation which will vary with
profitability or legal expense unrelated to our day to day
operations. Regional fixed overhead and corporate fixed overhead
represent the cost and expenses of our regional operations leaders
and the home office and will not vary as a result of profitability.
Special charges are considered by management to be unusual in
nature, unique and not expected to occur in the normal course of
business. Forward-Looking Statements Certain statements made herein
or elsewhere by, or on behalf of, the Company that are not
historical facts are intended to be forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements are based on assumptions that the Company
believes are reasonable; however, many important factors, as
discussed under "Forward-Looking Statements and Cautionary
Statements" in the Company's Annual Report and Form 10-K for the
year ended December 31, 2008, could cause the Company's results in
the future to differ materially from the forward-looking statements
made herein and in any other documents or oral presentations made
by, or on behalf of, the Company. The Company assumes no obligation
to update or publicly release any revisions to forward-looking
statements made herein or any other forward-looking statements made
by, or on behalf of, the Company. A copy of the Company's Form
10-K, and other Carriage Services information and news releases,
are available at http://www.carriageservices.com/. Contacts: Terry
Sanford, SVP & CFO Carriage Services, Inc. 713-332-8400 Ken
Dennard / Kip Rupp / DRG&E / 713-529-6600 - Tables to Follow -
CARRIAGE SERVICES, INC. Selected Financial Data June 30, 2009
(unaudited) Selected Balance Sheet Data (in 000's): 12/31/2008
6/30/2009 ---------- --------- Cash and short-term investments
$5,007 $5,598 Total Senior Debt (a) $137,732 $137,239 Common shares
outstanding 17,835 17,371 Ratios and other data Days sales in
funeral accounts receivable 21.3 20.2 Senior Debt to total
capitalization 41.1 40.7 Senior Debt to adjusted EBITDA from
continuing operations rolling twelve (rolling twelve months) 3.6
3.5 (a) - Senior debt does not include the convertible junior
subordinated debentures. Reconciliation of Non-GAAP Financial
Measures: This press release includes the use of certain financial
measures that are not GAAP measures. The non-GAAP financial
measures are presented for additional information and are
reconciled to their most comparable GAAP measures below.
Reconciliation of Net Income from continuing operations to adjusted
EBITDA from continuing operations for the three months ended June
30, 2008 and 2009 and the estimated rolling four quarters ended
June 30, 2010 (presented at the midpoint of the range)(in 000's):
Rolling Three Three Four months months Quarter ended ended Outlook
6/30/2008 6/30/2009 6/30/2010 E ---------- -------------
----------- Net income from continuing operations $43 $2,034 $6,900
Provision for income taxes 28 1,384 4,500 --- ----- ----- Pre-tax
earnings from continuing operations 71 3,418 11,400 Net interest
expense, including loan cost amortization 4,505 4,440 18,100
Special charges 1,064 - - Restricted stock amortization 347 300
1,000 Depreciation 2,545 2,795 11,000 ----- ----- ------ Adjusted
EBITDA from continuing operations $8,532 $10,953 $41,500 ======
======= ======= Revenue from continuing operations $42,737 $44,550
$179,500 Adjusted EBITDA margin from continuing operations 20.0%
24.6% 23.1% Reconciliation of Non-GAAP Financial Measures
Continued: Reconciliation of cash provided by operating activities
from continuing operations to free cash flow (in 000's): Three
months Three months ended ended 6/30/2008 6/30/2009 ------------
-------------- Cash provided by operating activities $8,599 $7,507
Less maintenance capital (1,909) (1,025) ------ ------ Free cash
flow $6,690 $6,482 ====== ====== Rolling Six Six Four months months
Quarter ended ended Outlook 6/30/2008 6/30/2009 (1) 6/30/2010 E
---------- ------------- ----------- Cash provided by operating
activities $12,008 $10,251 $21,500 Less maintenance capital
expenditures (3,223) (1,646) (6,500) ------ ------ ------ Free cash
flow $8,785 $8,605 $15,000 ====== ====== ======= (1) Excludes the
$3.3 million litigation settlement payment in the first quarter of
2009. DATASOURCE: Carriage Services, Inc. CONTACT: Terry Sanford,
SVP & CFO of Carriage Services, Inc., +1-713-332-8400; or Ken
Dennard, , or Kip Rupp, , both of DRG&E, +1-713-529-6600, for
Carriage Services, Inc. Web Site: http://www.carriageservices.com/
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