Carriage Services Announces 2010 Fourth Quarter and Record 2010 Results
"Our greatest achievement of 2010 was maintaining our client family market share across our total portfolio, as our same store funeral contracts were flat and our cemetery interments were down less than 1% in what was generally believed to be a slightly down death rate year. We have now experienced flat to slightly up same store funeral contracts in two of the last three years, which we attribute to the quality of our Managing Partner business leaders and the heavy weighting of market share in our Standards Operating Model."
"Under the leadership of
Highlights of the 2010 year compared to 2009 performance were as follows:
- Record Total Revenue of
$184.9 million , an increase of 4.1% compared to$177.6 million in 2009; - Record Consolidated EBITDA of
$42.1 million , an increase of 1.3% compared to$41.6 million in 2009; - Record Net Income of
$8.1 million , an increase of 14.6% compared to$7.0 million in 2009; - Record EPS of
$0.45 per diluted share, an increase of 12.5% compared to$0.40 per diluted share in 2009; - Record Free Cash Flow of
$18.6 million , an increase of 31.0% compared to adjusted free cash flow of$14.2 million in 2009.
Highlights of the fourth quarter of 2010 compared to the fourth quarter of 2009 performance were as follows:
- Total Revenue of
$48.1 million , an increase of 6.6% compared to$45.1 million in the fourth quarter of 2009; - Consolidated EBITDA of
$10.3 million , a decrease of 1.1% compared to$10.4 million in the fourth quarter of 2009; - Net Income of
$2.1 million , an increase of 19.3% compared to$1.8 million in the fourth quarter of 2009; - EPS of
$0.12 per diluted share, an increase of 20.0% compared to$0.10 per diluted share in 2009; - Free Cash Flow of
$7.1 million , an increase of 13.3% compared to$6.2 million in 2009.
FOUR QUARTER OUTLOOK 2011
"Looking ahead to 2011, we are focused on improving our existing portfolio revenues and Field EBITDA Margins and are seeing positive early trends in our markets and financial performance. Because of the timing of the 2010 acquisitions and the costs related to acquiring and transitioning the new businesses into our Standards Operating Model under new management, these acquisitions had a minimal impact on our 2010 bottom line. Our goal is to realize 80-90% of the underwritten benefits by the end of the first quarter of 2011. As a result, we expect to report substantially higher revenues and earnings in 2011 from our 2010 acquisitions."
"We are therefore raising all of our key performance metrics for the Four Quarter Outlook ending December 31, 2011, including EPS to a range of
TREND REPORTING
Management monitors consolidated same store and acquisition field operating and financial results both on a five year and most recent rolling four quarters basis ("Trend Reports") to reflect long term and short term trends and seasonality. "Acquisition" is defined as businesses acquired since
UNAUDITED INCOME STATEMENT | |||||
Period Ended December 31, 2010 | |||||
($000's) | |||||
For the Three | For the Three | For the Twelve | For the Twelve | ||
Months Ended | Months Ended | Months Ended | Months Ended | ||
December 31, 2009 | December 31, 2010 | December 31, 2009 | December 31, 2010 | ||
CONTINUING OPERATIONS | |||||
Same Store Contracts | |||||
Atneed Contracts | 4,130 | 4,073 | 16,173 | 16,147 | |
Preneed Contracts | 979 | 1,016 | 3,870 | 3,902 | |
Total Same Store Funeral Contracts | 5,109 | 5,089 | 20,043 | 20,049 | |
Acquisition Contracts | |||||
Atneed Contracts | 914 | 1,463 | 3,465 | 4,593 | |
Preneed Contracts | 228 | 350 | 854 | 1,159 | |
Total Acquisition Funeral Contracts | 1,142 | 1,813 | 4,319 | 5,752 | |
Total Funeral Contracts | 6,251 | 6,902 | 24,362 | 25,801 | |
Funeral Operating Revenue | |||||
Same Store Revenue | $ 27,995 | $ 27,399 | $ 108,513 | $ 107,351 | |
Acquisition Revenue | 4,419 | 6,918 | 16,603 | 22,392 | |
Total Funeral Operating Revenue | $ 32,414 | $ 34,317 | $ 125,116 | $ 129,743 | |
Cemetery Operating Revenue | |||||
Same Store Revenue | $ 8,803 | $ 8,509 | $ 36,021 | $ 34,211 | |
Acquisition Revenue | 1,475 | 1,481 | 6,276 | 6,239 | |
Total Cemetery Operating Revenue | $ 10,278 | $ 9,990 | $ 42,297 | $ 40,450 | |
Financial Revenue | |||||
Preneed Funeral Commission Income | $ 451 | $ 448 | $ 2,024 | $ 2,265 | |
Preneed Funeral Trust Earnings | 970 | 1,543 | 3,911 | 6,117 | |
Cemetery Trust Earnings | 598 | 1,446 | 2,747 | 4,815 | |
Preneed Cemetery Finance Charges | 396 | 354 | 1,532 | 1,557 | |
Total Financial Revenue | $ 2,415 | $ 3,791 | $ 10,214 | $ 14,754 | |
Total Revenue | $ 45,107 | $ 48,098 | $ 177,627 | $ 184,947 | |
Field EBITDA | |||||
Same Store Funeral Field EBITDA | $ 11,242 | $ 10,444 | $ 42,562 | $ 42,030 | |
Same Store Funeral Field EBITDA Margin | 38.4% | 35.9% | 37.4% | 36.6% | |
Acquired Funeral Field EBITDA | $ 1,468 | $ 1,845 | $ 5,420 | $ 6,121 | |
Acquired Funeral Field EBITDA Margin | 32.0% | 25.5% | 31.5% | 26.2% | |
Total Funeral Field EBITDA | $ 12,710 | $ 12,289 | $ 47,982 | $ 48,151 | |
Total Funeral Field EBITDA Margin | 37.6% | 33.8% | 36.6% | 34.9% | |
Same Store Cemetery Field EBITDA | $ 2,763 | $ 3,189 | $ 11,596 | $ 13,002 | |
Same Store Cemetery Field EBITDA Margin | 28.5% | 31.9% | 29.2% | 32.6% | |
Acquired Cemetery Field EBITDA | $ 418 | $ 660 | $ 1,996 | $ 2,417 | |
Acquired Cemetery Field EBITDA Margin | 26.7% | 36.6% | 29.2% | 34.8% | |
Total Cemetery Field EBITDA | $ 3,181 | $ 3,849 | $ 13,592 | $ 15,419 | |
Total Cemetery Field EBITDA Margin | 28.2% | 32.6% | 29.2% | 32.9% | |
Total Field EBITDA | $ 15,891 | $ 16,138 | $ 61,574 | $ 63,570 | |
Total Field EBITDA Margin | 35.2% | 33.6% | 34.7% | 34.4% | |
Overhead | |||||
Total Variable Overhead | $ 1,051 | $ 1,203 | $ 3,212 | $ 3,573 | |
Total Regional Fixed Overhead | 896 | 792 | 3,093 | 3,370 | |
Total Corporate Fixed Overhead | 3,503 | 3,819 | 13,646 | 14,476 | |
Total Overhead | $ 5,450 | $ 5,814 | $ 19,951 | $ 21,419 | |
12.1% | 12.1% | 11.2% | 11.6% | ||
Consolidated EBITDA | $ 10,441 | $ 10,324 | $ 41,623 | $ 42,151 | |
Consolidated EBITDA Margin | 23.1% | 21.5% | 23.4% | 22.8% | |
Property Depreciation & Amortization | $ 2,499 | $ 2,522 | $ 10,339 | $ 9,977 | |
Non Cash Stock Compensation | 280 | 357 | 1,169 | 1,533 | |
Interest Expense | 4,641 | 4,566 | 18,498 | 18,262 | |
Other (Income) | (4) | (598) | (228) | (1,068) | |
Pretax Income | $ 3,025 | $ 3,477 | $ 11,845 | $ 13,447 | |
Income tax | 1,225 | 1,330 | 4,797 | 5,368 | |
Net income | $ 1,800 | $ 2,147 | $ 7,048 | $ 8,079 | |
4.0% | 4.5% | 4.0% | 4.4% | ||
Diluted EPS from Continuing Operations | $ 0.10 | $ 0.12 | $ 0.40 | $ 0.45 | |
Diluted Shares Outstanding | 17,539,490 | 18,424,000 | 17,749,847 | 17,938,000 | |
FUNERAL OPERATIONS
Total Funeral Operating Revenue for the fourth quarter increased 5.9% to
Total Funeral Operating Revenue for 2010 increased 3.7% to
Funeral Operating Revenue from the Acquired Portfolio increased
CEMETERY OPERATIONS
Total Cemetery Operating Revenue for the fourth quarter decreased 2.8% to
Total Cemetery Operating Revenue for 2010 declined
FINANCIAL REVENUE
Total Financial Revenue includes preneed funeral insurance commission income, earnings from three types of trust funds and preneed insurance policies, and finance charges on our preneed cemetery receivables portfolio. During the fourth quarter Total Financial Revenue increased by approximately
TRUST FUND PERFORMANCE
We have previously reported on the significant increase in the market value and income in our three types of trust funds that was a result of a highly successful repositioning strategy coordinated with our investment advisor. Total fixed income and equity gains realized in 2010 were
($ in 000's) | ||||||||||||
Discretionary Accounts | Total Trust Funds | |||||||||||
CSV Trust Funds Market Value, Income, Yield and Gain (Loss) | CSV Trust Funds Market Value, Income, Yield and Gain (Loss) | |||||||||||
Date | Market Value | Est. Annual Income* | Yield on Cost | Unrealized Gain / (Loss) | Date | Market Value | Est. Annual Income* | Yield on Cost | Unrealized Gain / (Loss) | |||
12/31/08 | $101,554 | $5,431 | 5.27% | ($25,753) | 12/31/08 | $138,537 | $6,654 | 3.98% | ($28,705) | |||
12/31/09 | $155,053 | $7,170 | 7.65% | $34,965 | 12/31/09 | $198,113 | $8,221 | 5.04% | $35,034 | |||
12/31/10 | $182,970 | $8,420 | 6.10% | $26,965 | 12/31/10 | $233,371 | $9,749 | 4.74% | $27,698 | |||
*Estimated Annual Income adjusted starting Q4 2009 to reflect current portfolio holdings. | ||||||||||||
Investment Performance | |||||||||
Investment Performance | Index Performance(1) | ||||||||
Timeframe | Discretionary | Total Trust | DJIA | S&P 500 | NASDAQ | 50/50 index Benchmark | |||
1 year ending 12/31/09 | 50.6% | 47.4% | 18.8% | 23.5% | 43.9% | 16.2% | |||
1 year ending 12/31/10 | 21.2% | 18.4% | 16.7% | 15.1% | 16.9% | 10.8% | |||
(1) Investment performance includes realized income and unrealized appreciation. | |||||||||
CSV Trust Funds: Portfolio Profile | |||||||||||
12/31/2010 | 12/31/2010 | ||||||||||
Discretionary Trust Funds | Total Trust Funds | ||||||||||
Asset Class | MV | % | MV | % | |||||||
Equities | $ 84,010 | 46% | $ 95,439 | 41% | |||||||
Fixed Income | 95,199 | 52% | 120,505 | 52% | |||||||
Cash | 3,761 | 2% | 17,427 | 7% | |||||||
Total Portfolios | $182,970 | 100% | $233,371 | 100% | |||||||
OVERHEAD
The increase in Total Overhead for the fourth quarter was primarily attributable to higher annual field incentive compensation accruals and termination expenses, which impacted EPS by
FREE CASH FLOW
Carriage achieved record Free Cash Flow in 2010 of
2009 | 2010 | |||
Cash flow provided by operations | $ 19.4(1) | $ 25.7 | ||
Cash used for maintenance capital expenditures | (5.2) | (7.1) | ||
Free Cash Flow | $ 14.2 | $ 18.6 | ||
Cash at beginning of year | 5.0 | 3.6 | ||
Acquisitions | (3.1) | (19.0) | ||
Borrowings under credit facility | — | 0.6 | ||
Cash used for growth capital expenditures — funeral homes | (0.8) | (1.3) | ||
Cash used for growth capital expenditures — cemeteries | (3.3) | (2.3) | ||
Cash used for litigation settlement | (3.3) | — | ||
Share repurchase program | (4.3) | — | ||
Other investing and financing activities, net | (0.8) | 1.1 | ||
Cash at December 31st | $ 3.6 | $ 1.3 | ||
Credit Facility borrowing at December 31st | $ — | $ 0.6 | ||
(1) Cash flow provided by operations excludes $3.3 million litigation settlement reported in the fourth quarter of 2008 and paid in the first quarter of 2009. | ||||
FOUR QUARTER OUTLOOK
The Four Quarter Outlook ranges for the rolling four quarter period ending December 31, 2011 are intended to approximate what the Company believes will be the sustainable earning power of its portfolio of death care assets over the next four quarters as its three models are effectively executed. Performance drivers include funeral contract volumes, cremation mix, cemetery preneed property sales, preneed maturities and deliveries, average revenue per service, financial revenue and overhead items. Other variables include the outstanding amounts under our bank credit facility, our effective tax rate which is currently estimated to be approximately 40%, and the estimated number of diluted shares outstanding which is currently estimated to be approximately 18.2 million.
Though we expect to acquire additional businesses during the next twelve months, we have not forecast any acquisitions in the Four Quarter Outlook ending December 31, 2011 because of the uncertainty as to the timing and size of acquisitions.
ROLLING FOUR QUARTER OUTLOOK — Period Ending December 31, 2011 (amounts in millions, except per share amounts) | ||
Range | ||
Revenues | $190 - $195 | |
Field EBITDA | $66.5 - $68.5 | |
Field EBITDA Margin | 35% | |
Total Overhead | $21.5 - $22.5 | |
Consolidated EBITDA | $45 - $46 | |
Consolidated EBITDA Margin | 23.5% | |
Interest | $18.5 | |
Depreciation & Amortization | $11.5 | |
Income Taxes | $6.0 — $6.4 | |
Net Income | $9.0 — $9.6 | |
Diluted Earnings Per Share | $0.50 — $0.54 | |
Free Cash Flow | $17.0 — $19.0 | |
Revenue and earnings for the four quarter period ending
- Increase in same store Funeral Revenue averages and same store Funeral Field EBITDA Margins
- Increase in acquired Funeral Revenue and acquired Funeral Field EBITDA from the 2010 acquisitions
- Increase in Financial Revenue from three categories of trust funds
Long Term Outlook — Through 2015 (Base Year 2010) | |
Revenue growth of 6-7% annually, including acquisitions Consolidated EBITDA growth of 8-10% annually, including acquisitions Consolidated EBITDA Margin range of 24-26% EPS growth of 14-16% annually, including acquisitions | |
DIRECTOR ERICKSON RETIRING
CONFERENCE CALL
USE OF NON-GAAP FINANCIAL MEASURES
This press release uses the following Non-GAAP financial measures "free cash flow" and "EBITDA". Both free cash flow and EBITDA are used by investors to value common stock. The Company considers free cash flow to be an important indicator of its ability to generate cash for acquisitions and other strategic investments. The Company has included EBITDA in this press release because it is widely used by investors to compare the Company's financial performance with the performance of other death care companies. The Company also uses Field EBITDA and Field EBITDA Margin to monitor and compare the financial performance of the individual funeral and cemetery field businesses. EBITDA does not give effect to the cash the Company must use to service its debt or pay its income taxes and thus does not reflect the funds actually available for capital expenditures. In addition, the Company's presentation of EBITDA may not be comparable to similarly titled measures other companies report. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported operating results or cash flow from operations or any other measure of performance as determined in accordance with GAAP. Reconciliations of the Non-GAAP financial measures to GAAP measures are provided at the back of the press release.
The Company categorizes its general and administrative expenses into three categories of overhead: (1) variable overhead, (2) regional fixed overhead and (3) corporate fixed overhead. Variable overhead consists of cost and expense such as incentive compensation which will vary with profitability and legal expenses unrelated to day to day operations. Regional fixed overhead and corporate fixed overhead represent the cost and expenses of regional operations leaders and the home office and will not vary as a result of changes in profitability.
FORWARD-LOOKING STATEMENTS
Certain statements made herein or elsewhere by, or on behalf of, the Company that are not historical facts are intended to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions that the Company believes are reasonable; however, many important factors, as discussed under "Forward-Looking Statements" in the Company's Annual Report and Form 10-K for the year ended December 31, 2009, could cause the Company's results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by, or on behalf of, the Company. The Company assumes no obligation to update or publicly release any revisions to forward-looking statements made herein or any other
forward-looking statements made by, or on behalf of, the Company. A copy of the Company's Form 10-K, and other
— Financial Statements and Tables to Follow —
CARRIAGE SERVICES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, expect share data) | |||||
December 31, | December 31, | ||||
ASSETS | 2009 | 2010 | |||
Current assets: | |||||
Cash and cash equivalents | $ 3,616 | $ 1,279 | |||
Accounts receivable, net of allowance for bad debts | 15,177 | 15,587 | |||
Inventories and other current assets | 14,683 | 10,828 | |||
Total current assets | 33,476 | 27,694 | |||
Preneed cemetery and funeral trust investments | 183,484 | 206,569 | |||
Preneed receivables, net of allowance for bad debts | 16,782 | 24,099 | |||
Receivables from preneed funeral trusts | 14,629 | 21,866 | |||
Property, plant and equipment, net of accumulated depreciation | 124,800 | 128,472 | |||
Cemetery property | 71,661 | 71,128 | |||
Goodwill | 166,930 | 183,324 | |||
Deferred charges and other non-current assets | 7,536 | 7,860 | |||
Total assets | $ 619,298 | $ 671,012 | |||
LIABILITIES AND STOCKHOLDER'S EQUITY | |||||
Current liabilities: | |||||
Current portion of long-term debt and obligations under capital leases | $ 558 | $ 563 | |||
Accounts payable and accrued liabilities | 20,914 | 24,596 | |||
Total current liabilities | 21,472 | 25,159 | |||
Senior long-term debt, net of current portion | 131,898 | 132,416 | |||
Convertible junior subordinated debenture due in 2029 to an affiliated trust | 93,750 | 92,858 | |||
Obligations under capital leases, net of current portion | 4,418 | 4,289 | |||
Deferred preneed cemetery and funeral revenue | 75,834 | 89,642 | |||
Deferred preneed cemetery and funeral receipts held in trust | 143,101 | 160,834 | |||
Care trusts' corpus | 40,403 | 45,941 | |||
Total liabilities | 510,876 | 551,139 | |||
Commitments and contingencies | |||||
Redeemable Preferred Stock | 200 | 200 | |||
Stockholders' equity | |||||
Common Stock | 205 | 213 | |||
Additional paid-in capital | 197,033 | 200,987 | |||
Accumulated deficit | (79,016) | (70,951) | |||
Treasury stock | (10,000) | (10,576) | |||
Total stockholders' equity | 108,222 | 119,673 | |||
Total liabilities and stockholders' equity | $ 619,298 | $ 671,012 | |||
CARRIAGE SERVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data) | |||||||||
For the three months ended December 31, | For the years ended December 31, | ||||||||
2009 | 2010 | 2009 | 2010 | ||||||
Revenues | $ 45,107 | $ 48,098 | $ 177,627 | $ 184,947 | |||||
Field costs and expenses | 33,289 | 36,260 | 131,509 | 137,500 | |||||
Gross profit | 11,818 | 11,838 | 46,118 | 47,447 | |||||
General and administrative expenses | 4,156 | 4,393 | 16,003 | 16,806 | |||||
Operating income | 7,662 | 7,445 | 30,115 | 30,641 | |||||
Interest expense | (4,641) | (4,566) | (18,498) | (18,262) | |||||
Other income | 4 | 598 | 228 | 1,068 | |||||
Income before income taxes | 3,025 | 3,477 | 11,845 | 13,447 | |||||
Provision for income taxes | (1,225) | (1,330) | (4,797) | (5,368) | |||||
Net income | 1,800 | 2,147 | 7,048 | 8,079 | |||||
Preferred stock dividend | 4 | 4 | 14 | 14 | |||||
Net income available to common stockholders | $ 1,796 | $ 2,143 | $ 7,034 | $ 8,065 | |||||
Basic earnings per common share: | $ 0.10 | $ 0.12 | $ 0.40 | $ 0.46 | |||||
Diluted earnings per common share: | $ 0.10 | $ 0.12 | $ 0.40 | $ 0.45 | |||||
Weighted average number of common and common equivalent shares outstanding: | |||||||||
Basic | 17,325 | 17,890 | 17,573 | 17,635 | |||||
Diluted | 17,539 | 18,424 | 17,749 | 17,938 | |||||
CARRIAGE SERVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands, except per share data) | |||||
For the years ended December 31, | |||||
2009 | 2010 | ||||
Cash flows from operating activities: | |||||
Net income | $ 7,048 | $ 8,079 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 11,106 | 10,704 | |||
Provision for losses on accounts receivable | 3,937 | 4,031 | |||
Stock-based compensation expense | 1,588 | 1,759 | |||
Deferred income taxes | 4,797 | 1,521 | |||
Other | (37) | (470) | |||
Changes in operating assets and liabilities that provided (required) cash: | |||||
Accounts and preneed receivables | (7,241) | (4,761) | |||
Inventories and other current assets | 112 | 1,830 | |||
Preneed funeral and cemetery trust investments | (3,737) | (1,369) | |||
Accounts payable and accrued liabilities | (2,072) | 2,975 | |||
Litigation settlement | (3,300) | — | |||
Deferred preneed funeral and cemetery revenue | (784) | 168 | |||
Deferred preneed funeral and cemetery receipts held in trust | 4,678 | 1,212 | |||
Net cash provided by operating activities | 16,095 | 25,679 | |||
Cash flows from investing activities: | |||||
Net proceeds from the sale of assets | 67 | 400 | |||
Acquisitions | (3,102) | (19,007) | |||
Growth capital expenditures | (4,120) | (3,559) | |||
Maintenance capital expenditures | (5,250) | (7,102) | |||
Net cash used in investing activities | (12,405) | (29,268) | |||
Cash flows from financing activities: | |||||
Net borrowings under credit facility | — | 600 | |||
Payments on senior long-term debt and obligations under capital leases | (778) | (474) | |||
Purchase of convertible junior subordinated debenture | — | (576) | |||
Proceeds from the exercise of stock options and employee stock purchase plan | 476 | 1,759 | |||
Purchase of treasury stock | (4,260) | — | |||
Dividend on redeemable preferred stock | (14) | (14) | |||
Other financing expenses | (505) | (43) | |||
Net cash provided by (used in) financing activities | (5,081) | 1,252 | |||
Net decrease in cash and cash equivalents | (1,391) | (2,337) | |||
Cash and cash equivalents at beginning of period | 5,007 | 3,616 | |||
Cash and cash equivalents at end of period | $ 3,616 | $ 1,279 | |||
CARRIAGE SERVICES, INC. Selected Financial Data December 31, 2010 (unaudited) | |||||
December 31, | December 31, | ||||
Selected Balance Sheet Data: | 2009 | 2010 | |||
Cash and short-term investments | $ 3,616 | $ 1,279 | |||
Total Senior Debt (a) | 136,874 | 137,268 | |||
Days sales in funeral accounts receivable | 20.0 | 20.3 | |||
Senior Debt to total capitalization | 39.9 | 39.2 | |||
Senior Debt to EBITDA (rolling twelve months) | 3.3 | 3.3 | |||
(a) Senior debt does not include the convertible junior subordinated debentures. | |||||
Reconciliation of Non-GAAP Financial Measures:
This press release includes the use of certain financial measures that are not GAAP measures. The non-GAAP financial measures are presented for additional information and are reconciled to their most comparable GAAP measures below.
Reconciliation of Net Income to EBITDA for the three months and year ended December 31, 2009 and 2010 and the estimated rolling four quarters ended December 31, 2011 (presented at approximately the midpoint of the range identified in the release)(in 000's):
Three months ended December 31, | ||||
2009 | 2010 | |||
Net income | $ 1,800 | $ 2,147 | ||
Provision for income taxes | 1,225 | 1,330 | ||
Pre-tax earnings | 3,025 | 3,477 | ||
Interest expense, including loan cost amortization | 4,641 | 4,566 | ||
Other income | (4) | (598) | ||
Depreciation & amortization | 2,779 | 2,879 | ||
EBITDA | $ 10,441 | $ 10,324 | ||
Revenue | $ 45,107 | $ 48,098 | ||
EBITDA margin | 23.1% | 21.5% | ||
Twelve months ended December 31, | Rolling Four Quarter | |||||
Outlook | ||||||
2009 | 2010 | December 31, 2011 E | ||||
Net income | $ 7,048 | $ 8,079 | $ 9,300 | |||
Provision for income taxes | 4,797 | 5,368 | 6,200 | |||
Pre-tax earnings | 11,845 | 13,447 | 15,500 | |||
Interest expense, including loan cost amortization | 18,498 | 18,262 | 18,500 | |||
Other income | (228) | (1,068) | — | |||
Depreciation & amortization | 11,508 | 11,510 | 11,500 | |||
EBITDA | $ 41,623 | $ 42,151 | $ 45,500 | |||
Revenue | $ 177,627 | $ 184,947 | $ 192,500 | |||
EBITDA margin | 23.4% | 22.8% | 23.6% | |||
Reconciliation of Non-GAAP Financial Measures, Continued:
Reconciliation of cash provided by operating activities to free cash flow (in 000's):
Three months ended December 31, | ||||
2009 | 2010 | |||
Cash provided by operating activities | $ 8,177 | $ 9,131 | ||
Less maintenance capital expenditures | (1,930) | (2,053) | ||
Free cash flow | $ 6,247 | $ 7,078 | ||
Twelve months ended December 31, | ||||
2009 | 2010 | |||
Cash provided by operating activities | $ 16,095 | $ 25,679 | ||
Cash used for litigation settlement | 3,300 | — | ||
Adjusted cash provided by operating activities | $ 19,395 | $ 25,679 | ||
Less maintenance capital expenditures | (5,250) | (7,102) | ||
Adjusted free cash flow | $ 14,145 | $ 18,577 | ||
SOURCE
News Provided by Acquire Media