On July 31, 2024, Carriage Services Inc (CSV, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Carriage Services Inc is a provider of funeral and cemetery services and merchandise in the United States, operating in two business segments: Funeral Home Operations and Cemetery Operations. The company reported a solid performance, surpassing analyst estimates for both revenue and earnings per share (EPS).
Company Overview
Carriage Services Inc operates in two primary segments. The Funeral Home Operations segment offers burial, cremation, and consultation services, and sells related funeral merchandise. The Cemetery Operations segment provides services such as mausoleum crypts, private estates, and burial vaults. The majority of the company's revenue is derived from the Funeral Home Operations segment.
Q2 2024 Financial Highlights
Carriage Services Inc reported total revenue of $102.3 million for Q2 2024, a 4.8% increase compared to $97.7 million in the same period last year. This exceeded the analyst estimate of $94.98 million. The company's adjusted diluted EPS was $0.63, surpassing the analyst estimate of $0.53 and reflecting an 18.9% increase from $0.53 in Q2 2023.
Performance and Challenges
The company’s preneed cemetery sales team delivered a remarkable 31.1% year-over-year increase in preneed sales, contributing significantly to the total revenue growth. Additionally, the funeral average revenue per contract increased by 4.0%. However, the GAAP diluted EPS was lower than the prior-year quarter due to one-time items related to the final fees associated with the company's strategic alternatives review.
Carlos Quezada, Vice Chairman and CEO, stated, “We are excited to share that our continued focus on executing our five-year strategic objectives has delivered another solid performance in the second quarter of 2024. Our preneed cemetery sales team delivered another remarkable 31.1% year-over-year increase in preneed sales, highlighting the continued effectiveness of our cemetery sales growth plan.”
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $102.3 million | $97.7 million |
| Operating Income | $18.4 million | $20.7 million |
| Net Income | $6.3 million | $8.3 million |
| Adjusted Consolidated EBITDA | $32.6 million | $28.7 million |
| Adjusted Diluted EPS | $0.63 | $0.53 |
Financial Achievements
Carriage Services Inc achieved a 440 basis points increase in Total Field EBITDA Margins to 46.1%, compared to 41.7% in the prior-year quarter. The adjusted consolidated EBITDA margin also improved to 31.9% from 29.4% in Q2 2023. These achievements are significant as they reflect the company's effective cost management and operational efficiency, which are crucial in the personal services industry.
Income Statement and Balance Sheet Highlights
For the six months ended June 30, 2024, the company reported total revenue of $205.8 million, up from $193.2 million in the same period last year. Operating income for the same period was $37.8 million, down from $41.4 million. The company’s balance sheet showed total assets of $1.27 billion, with cash and cash equivalents of $1.5 million.
Cash Flow and Revised Outlook
Cash provided by operating activities for the first half of 2024 was $21.9 million, compared to $39.2 million in the same period last year. The company has revised its full-year 2024 outlook, increasing the total revenue guidance to $390-$400 million from the previous $380-$390 million. Adjusted diluted EPS guidance has also been raised to $2.30-$2.40 from $2.20-$2.30.
Carriage Services Inc's strong Q2 2024 performance and revised outlook indicate a positive trajectory for the remainder of the year. Investors and stakeholders can find more detailed information in the company's 8-K filing.
Explore the complete 8-K earnings release (here) from Carriage Services Inc for further details.
