On July 31, Carriage Services announced its financial results for the second quarter ended June 30, 2024.
The company reported adjusted diluted quarterly earnings per share of 63 cents compared with 53 cents in the year-ago period.
Company Highlights:
- A 31.1% increase in consolidated cemetery preneed sales, and an increase of 4.0% in consolidated funeral average, helped drive revenue of $102.3 million, representing growth of 4.8% over the prior-year quarter;
- GAAP diluted EPS of $0.40 and adjusted diluted EPS of $0.63, compared to $0.53 and $0.53 in the prior-year quarter, respectively;
- Leverage ratio of 4.58x and executed an amendment to the Company’s Credit Agreement, highlighted by a more favorable fee schedule, resulting in near-term interest expense reduction; and
- The company increased its guidance for 2024 to $390-$400 million in total revenue, adjusted consolidated EBITDA of $117-$123 million, and adjusted diluted EPS of $2.30-$2.40. Adjusted free cash flow remains at $55-$65 million.
Carlos Quezada, vice chairman and CEO (pictured at top), 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. This cemetery performance, in addition to an increase of 4.0% in our funeral average revenue per contract, contributed significantly to our total revenue growth of 4.8% compared to the prior-year quarter.”
He continued, “Our preneed funeral sales strategy also delivered strong results, with an impressive 251% increase in preneed funeral commissions income to $1.4 million, compared to $406 thousand in the prior-year quarter. This substantial increase in revenue, combined with our focus on cost management, has led to a 440 basis points increase in our Total Field EBITDA Margins to 46.1%, compared to 41.7% in the prior-year quarter.
Finally, while our GAAP diluted EPS was lower than the prior-year quarter due to one-time items related to the final fees associated with our previously concluded review of strategic alternatives, we are excited to see that our adjusted diluted EPS increased by 18.9% to $0.63, compared to $0.53 during the same period in 2023. Due to this strong performance, and our expectations for the remainder of the year, we are increasing our guidance for 2024.
As we continue to execute our five-year strategic objectives, we expect these trends to remain consistent for the remainder of the year with small declines in funeral volume and historical seasonality back in play. Our second quarter results further support our team’s excitement for the future of Carriage.”
Other highlights included:
- Total revenue for the three months ended June 30, 2024 increased $4.6 million compared to the three months ended June 30, 2023. We experienced a 23.2% increase in the number of preneed interment rights (property) sold and a 12.8% increase in the average price per preneed interment right sold. Additionally, we experienced a 6.6% decrease in funeral contract volume, which was partially offset by a 4.0% increase in the average revenue per funeral contract.
- Net income for the three months ended June 30, 2024 decreased $2.0 million compared to the three months ended June 30, 2023. We experienced a $5.8 million increase in gross profit contribution from our businesses and a $1.1 million decrease in interest expense, which was more than offset by an $8.4 million increase in general, administrative and other expenses, primarily composed of one-time costs related to executive severance payments and the Company’s review of strategic alternatives.
- Total revenue for the six months ended June 30, 2024 increased $12.6 million compared to the six months ended June 30, 2023. We experienced a 29.2% increase in the number of preneed interment rights (property) sold and a 10.3% increase in the average price per preneed interment right sold. Additionally, we experienced a 4.5% decrease in funeral contract volume, which was partially offset by a 4.0% increase in the average revenue per funeral contract.
- Net income for the six months ended June 30, 2024 decreased $3.9 million compared to the six months ended June 30, 2023. We experienced a $12.0 million increase in gross profit contribution from our businesses, which was more than offset by a $14.5 million increase in general, administrative and other expenses, primarily composed of one-time costs related to executive severance payments and the Company’s review of strategic alternatives.
Read the full earnings release.
Follow FuneralVision.com on LinkedIn.