On April 30, Carriage Services reported its first-quarter earnings for the period ending March 31.
Company highlights included:
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GAAP net income growth of $14.0 million or 200.1% over the prior year quarter.
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GAAP diluted EPS of $1.34 and adjusted diluted earnings per share of 96 cents, compared to 45 cents and 75 cents in the prior year quarter, a growth of 197.8% and 28.0%, respectively.
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Total funeral operating revenue increased $3 million or 4.6% over the prior year quarter, driven by an increase in consolidated funeral average revenue per contract of 2.3%.
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Total revenue of $107.1 million, or 3.5% growth achieved over prior year driven by an 11.8% increase in consolidated average price per preneed internment rights sold, a 7.4% increase in total consolidated preneed sales and an increase of 2.3% in consolidated funeral average revenue per contract.
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The company divested non-core assets for proceeds from divestitures of $18.7 million.
- Leverage ratio lowered to 4.2x from 5.0x at the same period last year, as the company paid down $17.0 million of debt on its credit facility during the first quarter.
Carlos Quezada, vice chairman and CEO (pictured at top), stated, “We are proud of our first-quarter results, which reflect the strength of our strategy and execution discipline. Our solid financial performance, highlighted by a 4.6% increase in comparable funeral home revenue was primarily driven by a 2.4% increase in funeral home at-need volume and a 2.2% increase in average revenue per at-need contract, delivering adjusted diluted EPS of $0.96 cents, an increase of $0.21 cents or 28%, demonstrating our focus on the execution of our strategic objectives. Through continued investments in innovation, the expansion of key partnerships, and the empowerment of our people, we are building the Carriage of the future. As we become a premier experience company, we are proving that passion, operational excellence, and financial discipline turns vision into value for our shareholders.”
Other hihglights included:
- Total revenue for the three months ended March 31, 2025 increased $3.6 million compared to the three months ended March 31, 2024. The company experienced an 11.8% increase in the consolidated average price per preneed interment right sold, which was partially offset by a 5.8% decrease in the consolidated number of preneed interment rights (property) sold. Additionally, it experienced a 2.3% increase in the consolidated average revenue per funeral contract, as well as a 0.7% increase in consolidated funeral contract volume driven by the delayed flu season.
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Net income for the three months ended March 31, 2025, increased $14 million compared to the three months ended March 31, 2024. The company experienced a $9.3 million increase in gain on sale of divestitures and real property, a $4.2 million decrease in general, administrative and other expenses, a $1.4 million decrease in interest expense, and a $0.6 million increase in gross profit contribution from our businesses; offset by a $1.6 million increase in income tax expense.
Outlook for 2025
The company’s 2025 outlook incorporates previously stated organic growth initiatives around preneed sales, both in the cemetery and funeral businesses, and expected cost discipline while the company continues to deleverage the balance sheet. Additionally, in the first half of 2025, the company expects to divest certain non-core assets, reducing 2025 revenue and adjusted consolidated EBITDA by ~$7.9 million and ~$2.3 million, respectively – the 2025 outlook reflects the expected impact of these divestitures.
As a result, Carriage Services expects $400 to $410 million in total revenue for 2025, adjusted diluted earnings per share of $3.10 to $3.30 and adjusted free cash flow of $40 to $50 million.
