NYSE$CSV

Carriage Services Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Announced first quarter results, updated 2020 outlook, confirmed 2021/2022 outlook, increased dividend and introduced a new five-year shareholder value creation incentive plan

Carriage Services reported a 12.2% increase in total revenue to $77.5 million for the first quarter ended March 31, 2020. However, the company experienced a net loss of $4.2 million and a decrease in adjusted net income by 10.8% to $6.1 million.

  • Total revenue increased by 12.2% to $77.5 million.
  • Adjusted free cash flow increased by 30.7% to $12.6 million.
  • Net loss decreased by 164.3% to $4.2 million.
  • The company reaffirmed its roughly right ranges of performance for 2021 and 2022.

Headline financials

Total Revenue

$77.5M

Previous: $69.1M+12.2%
EPS (adj)

$0.35

Previous: $0.38-7.9%
Adj. Cons. EBITDA Margin

29.5%

Previous: 30.2%-2.3%
Total Field EBITDA Margin

38.8%

Previous: 41.0%-5.4%
Capital Expenditures

-$2.74M

Previous: -$3.54M+22.7%
Free Cash Flow

-$6.94M

Previous: $2.98M-332.6%
Net Income

-$4.2M

Previous: $6.53M-164.3%
Operating Income

$2.15M

Previous: $15.6M-86.2%
Gross Profit

$23.2M

Previous: $21.6M+7.3%
Cash & Equivalents

$11.9M

Previous: $674K+1668.5%
Total Assets

$1.12B

Previous: $945M+18.6%
Stock-Based Comp

$831K

Previous: $585K+42.1%

Revenue & EPS history

Carriage Services · Revenue · Quarterly

$77.5M

Q1 2020+12.2%vs Q1 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Carriage Services · $74.6M total across 3 segments · Q1 2020

  • Funeral Operating
    $56.6M
  • Cemetery Operating
    $13.7M
  • Financial
    $4.29M

Forward guidance

Carriage Services provided an updated 'roughly right' scenario for the balance of 2020, anticipating a return to normal operations as COVID-19 restrictions ease. The company also reaffirmed its performance outlook for 2021 and 2022.

Tailwinds

  • Free Cash Flow for 2020 is expected to be in line with previously published outlook.
  • The company's operating model demonstrates strength and flexibility.
  • The company anticipates an improved credit profile during the middle to latter half of next year.
  • The company expects that they should be able to refinance their high yield notes at a materially lower rate than the current 6.625%.
  • The company expects lower cash interest of $8 million to $10 million within a twelve to eighteen month period.

Headwinds

  • The short term negative impact of the Coronavirus Crisis on normalized revenue.
  • The company experienced significantly lower funeral revenue averages and cemetery preneed property sales in March.
  • The result was lower year over year Field EBITDA Margins and Consolidated EBITDA Margins not only in March but for the entire first quarter.
  • The company had a net loss of $4,197,000.
  • Equity portfolio decreased by $(19,031,000).

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.4%

Avg return

Earnings day

-0.4%

Avg return

5 days after

+0.9%

Avg return

30 days after

46%

30 / 65 earnings

Positive

+25.8%

Q1 2020

Best reaction

-25.6%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.5%-7.7%-19.4%
Q4 2025+2.3%+3.4%+1.2%
Q3 2025+2.2%-2.9%-2.0%
Q1 2025-0.6%+1.2%+8.9%
Q4 2024-3.6%-5.8%-5.7%
Q3 2024+14.7%+15.2%+24.4%
Q2 2024+1.3%-8.9%+3.7%
Q1 2024+0.3%+0.6%+5.1%
Q4 2023+1.6%+0.3%+4.6%
Q3 2023-8.4%-12.8%+7.7%
Q2 2023-2.9%-3.8%-4.4%
Q1 2023-7.7%-6.6%-7.5%
Q4 2022+8.5%+4.1%-5.6%
Q3 2022-25.6%-22.4%-23.1%
Q2 2022-15.6%-13.7%-14.1%
Q1 2022-7.4%-13.1%-16.6%
Q4 2021-1.0%-0.6%+10.9%
Q3 2021+13.2%+14.4%+19.3%
Q2 2021-0.8%+1.8%+22.6%
Q1 2021+4.7%+4.9%+6.3%
Q4 2020-2.7%-1.7%+4.3%
Q3 2020+6.1%+7.4%+19.8%
Q2 2020+20.0%+13.9%+16.0%
Q1 2020+25.8%+20.7%+25.1%
Q4 2019-9.1%-15.9%-36.7%
Q3 2019+20.7%+19.5%+8.0%
Q2 2019+14.8%+15.6%+9.3%
Q1 2019+1.3%+6.0%+3.8%
Q4 2018+3.3%+6.2%-5.5%
Q3 2018-20.7%-16.6%-9.7%
Q2 2018-0.7%-2.5%-4.8%
Q1 2018-2.3%-4.9%-11.4%
Q4 2017+2.9%+8.3%+11.3%
Q3 2017+5.7%+3.7%+1.0%
Q2 2017-9.6%-9.0%-9.0%
Q1 2017-5.0%-4.4%-8.3%
Q4 2016-2.5%-3.6%-1.6%
Q3 2016-0.5%-3.0%+11.2%
Q2 2016-1.3%-1.5%-3.7%
Q1 2016+4.1%
Q4 2015+2.7%
Q3 2015+1.8%
Q2 2015-3.3%
Q1 2015+2.8%
Q4 2014+0.8%
Q3 2014+1.4%
Q2 2014+11.5%
Q1 2014-2.3%
Q4 2013-4.2%
Q3 2013-2.3%
Q2 2013-0.1%
Q1 2013-0.4%
Q4 2012+4.0%
Q3 2012+2.1%
Q2 2012+0.5%
Q1 2011-0.1%
Q1 2012-1.2%
Q4 2009+1.8%
Q4 2011+1.8%
Q3 2010-2.7%
Q3 2011-2.7%
Q2 2010-3.1%
Q2 2011-3.1%
Q4 2010-3.1%
Q1 2010+0.0%

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