NYSE$CSV

Carriage Services Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Announced record revenue, adjusted consolidated EBITDA, adjusted EPS, and adjusted free cash flow; reduced debt and raised four quarter outlook and annual dividend.

Carriage Services announced record third quarter results, including record revenue of $84.4 million, record adjusted consolidated EBITDA of $27.7 million, and record adjusted EPS of $0.51. The company also reduced debt by $37.5 million and raised its four-quarter outlook and annual dividend.

  • Record revenue, adjusted consolidated EBITDA, adjusted EPS, and adjusted free cash flow were achieved.
  • Record debt reduction with debt to EBITDA ratio declining 20% to 4.8 times.
  • Four quarter outlook was raised.
  • Annual dividend was raised by $0.05 to $0.40 per share.

Headline financials

Total Revenue

$84.4M

Previous: $66.1M+27.6%
EPS (adj)

$0.51

Previous: $0.28+82.1%
Adj. Cons. EBITDA Margin

32.8%

Previous: 26.1%+25.7%
Total Field EBITDA Margin

44.2%

Previous: 38.9%+13.6%
Capital Expenditures

-$10M

Previous: -$11.5M+12.6%
Free Cash Flow

-$4.51M

Previous: -$10.9M+58.6%
Net Income

$5.53M

Previous: $577K+857.5%
Operating Income

$16.5M

Previous: $11.9M+38.1%
Gross Profit

$27.9M

Previous: $18.1M+54.4%
Cash & Equivalents

$725K

Previous: $5.81M-87.5%
Total Assets

$1.12B

Previous: $952M+17.7%
Stock-Based Comp

$927K

Previous: $513K+80.7%

Revenue & EPS history

Carriage Services · Revenue · Quarterly

$84.4M

Q3 2020+27.6%vs Q3 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Carriage Services · $97.5M total across 4 segments · Q2 2023

  • Funeral Operating
    $60.8M
  • Cemetery Operating
    $29.1M
  • Financial
    $6.29M
  • Ancillary
    $1.23M

Forward guidance

Carriage Services updated and raised its rolling four quarter outlook ending September 30, 2021.

Tailwinds

  • Total Revenue of $324 million - $332 million, up from $312 million - $320 million at June 30, 2020.
  • Adjusted Consolidated EBITDA of $102 million - $108 million, up from $95 million - $100 million.
  • Adjusted Consolidated EBITDA Margin of 31.5% - 32.5%, up from 30% - 31%.
  • Adjusted Diluted EPS of $2.08 - $2.18, up from $1.65 - $1.75.
  • Adjusted Free Cash Flow of $56 million - $60 million, up from $50 million - $55 million.

Headwinds

  • Adjusted Free Cash Flow Margin of 17.4% - 18.2%, up from 15.8% - 16.8%.
  • Total Debt to EBITDA Multiple of 3.8 – 4.2 times at September 30, 2021, down from a Rolling Four Quarter Outlook of 4.5 to 4.7 times at June 30, 2021.
  • The updated three year scenario does not include any new acquisitions.
  • The updated three year scenario does include the impact of our planned divestitures
  • The updated three year scenario includes the completion of a refinancing transaction of our high yield notes in June 2021.

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 Q3 2020

Historical avgQ3 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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