Carriage Services Announces Record 2016 Second Quarter Results, Reaffirms Rolling Four Quarter Outlook
Three Months Ended
- Record Total Revenue of
$61.9 million , an increase of 4.4%; - Record Net Income of
$5.2 million , an increase of 14.1%; - Record GAAP Diluted Earnings Per Share of
$0.30 , an increase of 25.0%;
- Record Total Field EBITDA of
$25.1 million , an increase of 6.5%; - Total Field EBITDA Margin up 90 basis points to 40.6%;
- Record Adjusted Consolidated EBITDA of
$17.8 million , an increase of 3.5%; - Adjusted Consolidated EBITDA Margin down 30 basis points to 28.7%;
- Record Adjusted Diluted Earnings Per Share of
$0.37 , an increase of 8.8%; and - Adjusted Free Cash Flow of
$13.2 million , a decrease of 5.1%.
Six Months Ended
- Record Total Revenue of
$125.2 million , an increase of 2.2%; - Net Income of
$9.8 million , a decrease of 11.0%; - GAAP Diluted Earnings Per Share remained flat at
$0.57 ;
- Record Total Field EBITDA of
$52.8 million , an increase of 3.3%; - Record Total Field EBITDA Margin up 50 basis points to 42.2%;
- Record Adjusted Consolidated EBITDA of
$37.7 million , an increase of 2.2%; - Adjusted Consolidated EBITDA Margin remained flat at 30.1%
- Record Adjusted Diluted Earnings Per Share of
$0.84 , an increase of 10.5%; and - Adjusted Free Cash Flow of
$24.9 million , a decrease of 2.2%.
Our record second quarter field operating performance fueled an exceptionally strong consolidated earnings performance with the least 'Non-GAAP noise' in years, as record GAAP Diluted EPS of
Our performance for the first six months of 2016 was simply extraordinary and achieved numerous records, including Total Revenue of
Our Adjusted Consolidated EBITDA Margin of 30.1% for the first six months, which we consider the "cash earning power margin" of each dollar of revenue, was equal to last year's record but would have been 120 basis points higher this year if last year was adjusted on an apples-to-apples basis using our new Non-GAAP reporting methodology. Looking forward as we have cleaner Non-GAAP reporting, our goal is to achieve a 30% Adjusted Consolidated EBITDA Margin which has never been done by any public consolidation company in the sixty year history of deathcare consolidation using current accounting methodology.
Our change in corporate Non-GAAP performance reporting policy is consistent with recent
Some of our investors and investor candidates have voiced concern that our current Total Leverage Ratio of five times Adjusted Consolidated EBITDA seems too high and implies a high risk credit profile, which in turn creates an obstacle with some institutional investors for meaningful investment in our common shares. However, this view misses three fundamental leverage capacity points specific only to Carriage.
First, our annualized Adjusted Consolidated EBITDA Margin is 300 - 400 basis points higher than our much larger industry benchmark comparison, a cash earning power margin spread that has been widening over the last several years and which produces approximately 15% greater capacity relative to dollars of revenue to handle leverage. Secondly, our total debt is comprised of
With respect to our acquisition activity, our focus is on partnering with the best remaining independent funeral and cemetery owners in the best remaining major markets around the country. Accordingly, we are proud to announce that on
We are optimistic about the opportunity to partner with one or more premier firms in the second half of 2016 consistent with our view that the next several years will have more growth from high quality acquisitions as the seeds of our corporate development activity reach fruition. We believe our ten Strategic Acquisition Criteria along with an assessment of cultural fit provide a highly disciplined and selective process that will add businesses to our Acquisition Portfolio over the next five years that have a relatively higher revenue and earnings growth profile compared to our same store portfolio, portfolio performance characteristics that are clearly evident in our existing funeral same store and acquisition portfolios for the first six months of 2016.
After hosting our Annual Partnership Meeting during the week of
|
|
|
|
|
|
|
|
|
|
|
|
|
Everly Community Funeral Care; |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deegan Funeral Chapels; |
|
|
|
Rolling Hills Memorial Park; |
|
|
Houston Support Office: |
|
|
Houston Support-Treasury |
|
|
*Notes |
After becoming active again last fall (inactive since 2007) with institutional investor meetings and presentations both to existing shareholders and new candidates, I was frankly surprised at the confusion and lack of understanding of the three core models that define our company and make it so unique compared to any other company that has ever consolidated the funeral and cemetery industry. So rather than wait to explain more comprehensively to institutional investors the high performance culture ideas, concepts and models that define our company in my annual shareholder letters, as I have done over the last four years, I will elaborate on one of our three core models in more detail in each quarterly earnings release, starting this second quarter with the Standards Operating Model.
STANDARDS OPERATING MODEL
Our ability as a consolidator and operator of funeral homes and cemeteries to produce cash from revenue at a margin of about 30% has never been done before because no other company (public or private) would take the risk of launching a radically innovative business model that has been continuously evolving since 2003. When we developed and rolled out our Funeral Standards Operating Model at the beginning of 2004, I got skeptically questioned by our Board of Directors as to the source of this 'crazy idea' to eliminate the budget and control methodology used throughout Corporate America and to replace this well understood business model with eight simple 'Funeral Operating Standards' that would not change from year to year.
Literally no one in our company at that time understood or believed in this idea and its component standards other than me and about fifteen of our best field funeral home managers and former owners. So we formed our first "Being The Best"
We have found through experience and sophisticated data correlation analysis that the "normalized Field EBITDA Margin" as well as all the other desirable financial outcome characteristics can be determined (assume top notch management) with great predictability and consistency within a tight range of performance for each of our funeral and cemetery groupings. It was through evolution of our Standards Operating Model that we determined around 2006 that we needed a Leadership Model to profile entrepreneurial leaders who were more than just managers and caring service providers, i.e. they were not satisfied with their market share and had a burning passion to grow market share by taking it from their local competitors (hunters rather than just gatherers).
The very essence of the Standards Operating Model is that its simplicity is designed around the financial concept of operating leverage, which means that our
However, operating leverage is a two-edged sword, so if market share and revenues are declining, the Field EBITDA Margin and Field EBITDA will decline at a faster rate than revenues. When "Standards Achievement" falls below 50% for more than two quarters, our
Rather than continue on in this earnings release or repeat the more comprehensive explanation of our Standards Operating Model contained in our Company and Investment Profile and in past shareholder letters and industry articles, I will refer those interested in learning more about the high performance concepts underpinning all the elements and linkages of our High Performance Culture Framework to the Beyond Budgeting Round Table (BBRT) founded in the
The above summary explanation of the pioneering business model research done by
For many years in the 1990's and thereafter I studied the leadership lessons and techniques of
Unlike
Our Standards Operating Model does not automatically produce sustainable and superior operating and financial results from a funeral or cemetery business. Each business must have a Managing Partner with 4E Leadership characteristics and highly motivated and skilled employees consistent with our two people standards - Right Quality of Staff and Continuous Upgrading of Staff. While we have been criticized and Monday morning quarterbacked over the years about the "subjectiveness and undefineability" of 4E Leadership and our two people standards, we stayed the course seeking to continuously improve how we define and calibrate these high performance people characteristics with differentiating individual business and employee performance data. Consequently, we are light years ahead of where we used to be with our ability to find, develop, support and unleash more leadership and people power in all of our operating businesses. I will cover the 4E Leadership Model, our people standards and the leadership and people high performance concepts of Good To Great in more detail in our third quarter earnings release.
After learning so much in the 1990's about what not to do, and then evolving our three core models into a superior high performance culture framework for operating and consolidating funeral homes and cemeteries, we as a senior leadership team are excited to think about what the performance of our portfolio will look like five and ten years from now as we add larger, higher growth businesses to our portfolio. So stay tuned, as we believe the best is yet to come because as a company "We Choose To Be Great" on the Carriage Good To Great Journey that never ends! In other words, we believe it is a very good time to be a long term shareholder of our Company," concluded
ADJUSTED FREE CASH FLOW
We produced Adjusted Free Cash Flow from operations for the three and six months ended
For the Three Months |
For the Six Months | ||||||||||||||
2015 |
2016 |
2015 |
2016 | ||||||||||||
Cash Flow Provided by Operations |
$ |
15,708 |
$ |
14,716 |
$ |
28,330 |
$ |
24,458 |
|||||||
Cash used for Maintenance Capital Expenditures |
(3,002) |
(1,755) |
(4,848) |
(3,373) |
|||||||||||
Free Cash Flow |
$ |
12,706 |
$ |
12,961 |
$ |
23,482 |
$ |
21,085 |
|||||||
Plus: Incremental Special Items: |
|||||||||||||||
Acquisition and Divestiture Expenses |
29 |
— |
537 |
516 |
|||||||||||
Severance Costs |
489 |
— |
616 |
2,759 |
|||||||||||
Consulting Fees |
673 |
228 |
788 |
496 |
|||||||||||
Adjusted Free Cash Flow |
$ |
13,897 |
$ |
13,189 |
$ |
25,423 |
$ |
24,856 |
ROLLING FOUR QUARTER OUTLOOK
The Rolling Four Quarter Outlook ("Outlook") reflects management's opinion on the performance of the portfolio of existing businesses, including performance of existing trusts, and excludes size and timing of acquisitions for the Rolling Four Quarter Outlook period ending
ROLLING FOUR QUARTER OUTLOOK - Period Ending
Range | ||
Revenues |
| |
Adjusted Consolidated EBITDA |
| |
Adjusted Net Income |
| |
Adjusted Diluted Earnings Per Share(1) |
|
Factors affecting our analysis include, among others, funeral contract volumes, average revenue per funeral service, cemetery interment volumes, preneed cemetery sales, capital expenditures, execution of our funeral and cemetery Standards Operating Model, market volatility and changes in
(1) |
The Rolling Four Quarter Outlook on Adjusted Diluted Earnings Per Share does not include any changes to our fully diluted share count that could occur related to additional share repurchases or a stock price increase and EPS dilution calculations related to our convertible subordinated notes and outstanding and exercisable stock options. |
TRUST FUND PERFORMANCE
Shown below are consolidated performance metrics for the combined trust fund portfolios (preneed funeral, cemetery merchandise and services and cemetery perpetual care) at key dates.
Investment Performance | |||||||
Investment Performance(1) |
Index Performance | ||||||
Discretionary |
|
S&P 500 |
High Yield |
70/30 index | |||
6 months ended |
1.9% |
1.9% |
3.8% |
9.3% |
7.7% | ||
1 year ended |
(3.1%) |
(2.7%) |
1.4% |
(4.7%) |
(2.9%) | ||
2 years ended |
5.0% |
5.0% |
15.2% |
(2.3%) |
3.0% | ||
3 years ended |
20.0% |
19.4% |
52.5% |
5.0% |
19.3% | ||
4 years ended |
44.4% |
39.9% |
76.9% |
21.4% |
38.0% | ||
5 years ended |
40.2% |
37.2% |
80.6% |
26.7% |
42.8% |
(1) |
Investment performance includes realized income and unrealized appreciation (depreciation). |
(2) |
The 70/30 Benchmark is 70% weighted to the High Yield Index and 30% weighted to the S&P 500 Stock Index. |
Asset Allocation as of | |||||||||||||
(in thousands) | |||||||||||||
Discretionary |
Total | ||||||||||||
Asset Class |
MV |
% |
MV |
% |
|||||||||
Cash |
$ |
7,663 |
4% |
$ |
24,663 |
12% |
|||||||
Equities |
23,716 |
14% |
26,166 |
13% |
|||||||||
Fixed Income(1) |
141,108 |
80% |
151,496 |
73% |
|||||||||
Other/Insurance |
3,353 |
2% |
3,543 |
2% |
|||||||||
Total Portfolios |
$ |
175,840 |
100% |
$ |
205,868 |
100% |
(1) |
|
Industry/Sector |
% | ||
Basic Materials |
0.7% | ||
Communications |
8.1% | ||
Consumer |
12.8% | ||
Energy |
12.2% | ||
Financial |
42.1% | ||
Government |
1.1% | ||
Media |
9.6% | ||
Technology |
7.7% | ||
Utilities |
5.7% | ||
Total |
100% |
For the quarter ended
As with the first quarter our overall trust fund performance for the first six months of 2016 was particularly affected by weakness in our 10 year warrant portfolio of five "Too Big To Fail" banks and insurance companies, which in the past has acted as a hedge against our high fixed income allocation. Our fixed income portfolio tracked the performance of the high yield bond market and was up over 10% year to date. The strong performance of our fixed income portfolio was predominantly driven by the investment decisions we made during the first quarter.
While we will no longer report Withdrawable Trust Income in our Non-GAAP Trend reporting, for the sake of full transparency we will disclose the total throughout 2016 in this section. The Withdrawable Trust Income for the first six months of 2016 would have been approximately
CONFERENCE CALL AND INVESTOR RELATIONS CONTACT
| |||||||||||||||||
OPERATING AND FINANCIAL TREND REPORT | |||||||||||||||||
(IN THOUSANDS - EXCEPT PER SHARE AMOUNTS) | |||||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||||
2015 |
2016 |
% Change |
2015 |
2016 |
% Change | ||||||||||||
Same Store Contracts |
|||||||||||||||||
Atneed Contracts |
5,257 |
5,345 |
1.7% |
11,267 |
11,029 |
(2.1%) |
|||||||||||
Preneed Contracts |
1,289 |
1,267 |
(1.7%) |
2,786 |
2,685 |
(3.6%) |
|||||||||||
Total Same Store Funeral Contracts |
6,546 |
6,612 |
1.0% |
14,053 |
13,714 |
(2.4%) |
|||||||||||
Acquisition Contracts |
|||||||||||||||||
Atneed Contracts |
1,096 |
1,291 |
17.8% |
2,273 |
2,625 |
15.5% |
|||||||||||
Preneed Contracts |
243 |
239 |
(1.6%) |
502 |
464 |
(7.6%) |
|||||||||||
Total Acquisition Funeral Contracts |
1,339 |
1,530 |
14.3% |
2,775 |
3,089 |
11.3% |
|||||||||||
Total Funeral Contracts |
7,885 |
8,142 |
3.3% |
16,828 |
16,803 |
(0.1%) |
|||||||||||
Funeral Operating Revenue |
|||||||||||||||||
Same Store Revenue |
$ |
34,169 |
$ |
34,856 |
2.0% |
$ |
73,160 |
$ |
72,093 |
(1.5%) |
|||||||
Acquisition Revenue |
8,113 |
9,472 |
16.8% |
16,706 |
19,149 |
14.6% |
|||||||||||
Total Funeral Operating Revenue |
$ |
42,282 |
$ |
44,328 |
4.8% |
$ |
89,866 |
$ |
91,242 |
1.5% |
|||||||
Cemetery Operating Revenue |
|||||||||||||||||
Same Store Revenue |
$ |
11,266 |
$ |
12,345 |
9.6% |
$ |
21,534 |
$ |
23,420 |
8.8% |
|||||||
Acquisition Revenue |
930 |
774 |
(16.8%) |
1,752 |
1,540 |
(12.1%) |
|||||||||||
Total Cemetery Operating Revenue |
$ |
12,196 |
$ |
13,119 |
7.6% |
$ |
23,286 |
$ |
24,960 |
7.2% |
|||||||
Financial Revenue |
|||||||||||||||||
Preneed Funeral Commission Income |
$ |
370 |
$ |
356 |
(3.8%) |
$ |
725 |
$ |
777 |
7.2% |
|||||||
Preneed Funeral Trust Earnings |
1,849 |
1,783 |
(3.6%) |
4,047 |
3,750 |
(7.3%) |
|||||||||||
Cemetery Trust Earnings |
2,176 |
1,831 |
(15.9%) |
3,817 |
3,597 |
(5.8%) |
|||||||||||
Preneed Cemetery Finance Charges |
388 |
448 |
15.5% |
773 |
870 |
12.5% |
|||||||||||
Total Financial Revenue |
$ |
4,783 |
$ |
4,418 |
(7.6%) |
$ |
9,362 |
$ |
8,994 |
(3.9%) |
|||||||
Total Revenue |
$ |
59,261 |
$ |
61,865 |
4.4% |
$ |
122,514 |
$ |
125,196 |
2.2% |
|||||||
Field EBITDA |
|||||||||||||||||
Same Store Funeral Field EBITDA |
$ |
12,117 |
$ |
12,855 |
6.1% |
$ |
28,015 |
$ |
28,007 |
—% |
|||||||
Same Store Funeral Field EBITDA Margin |
35.5% |
36.9% |
140 bp |
38.3% |
38.8% |
50 bp |
|||||||||||
Acquisition Funeral Field EBITDA |
3,196 |
3,908 |
22.3% |
6,749 |
8,080 |
19.7% |
|||||||||||
Acquisition Funeral Field EBITDA Margin |
39.4% |
41.3% |
190 bp |
40.4% |
42.2% |
180 bp |
|||||||||||
Total Funeral Field EBITDA |
$ |
15,313 |
$ |
16,763 |
9.5% |
$ |
34,764 |
$ |
36,087 |
3.8% |
|||||||
Total Funeral Field EBITDA Margin |
36.2% |
37.8% |
160 bp |
38.7% |
39.6% |
90 bp |
|||||||||||
Same Store Cemetery Field EBITDA |
$ |
3,537 |
$ |
4,049 |
14.5% |
$ |
7,087 |
$ |
7,892 |
11.4% |
|||||||
Same Store Cemetery Field EBITDA Margin |
31.4% |
32.8% |
140 bp |
32.9% |
33.7% |
80 bp |
|||||||||||
Acquisition Cemetery Field EBITDA |
288 |
140 |
(51.4%) |
588 |
361 |
(38.6%) |
|||||||||||
Acquisition Cemetery Field EBITDA Margin |
31.0% |
18.1% |
(1,290 bp) |
33.6% |
23.4% |
(1,020 bp) |
|||||||||||
Total Cemetery Field EBITDA |
$ |
3,825 |
$ |
4,189 |
9.5% |
$ |
7,675 |
$ |
8,253 |
7.5% |
|||||||
Total Cemetery Field EBITDA Margin |
31.4% |
31.9% |
50 bp |
33.0% |
33.1% |
10 bp |
|||||||||||
Funeral Financial EBITDA |
$ |
1,925 |
$ |
1,921 |
(0.2%) |
$ |
4,196 |
$ |
4,118 |
(1.9%) |
|||||||
Cemetery Financial EBITDA |
2,489 |
2,220 |
(10.8%) |
4,453 |
4,323 |
(2.9%) |
|||||||||||
Total Financial EBITDA |
$ |
4,414 |
$ |
4,141 |
(6.2%) |
$ |
8,649 |
$ |
8,441 |
(2.4%) |
|||||||
Total Financial EBITDA Margin |
92.3% |
93.7% |
140 bp |
92.4% |
93.9% |
150 bp |
|||||||||||
Total Field EBITDA |
$ |
23,552 |
$ |
25,093 |
6.5% |
$ |
51,088 |
$ |
52,781 |
3.3% |
|||||||
Total Field EBITDA Margin |
39.7% |
40.6% |
90 bp |
41.7% |
42.2% |
50 bp |
|||||||||||
OPERATING AND FINANCIAL TREND REPORT | |||||||||||||||||
(IN THOUSANDS - EXCEPT PER SHARE AMOUNTS) | |||||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||||
2015 |
2016 |
% Change |
2015 |
2016 |
% Change | ||||||||||||
Overhead |
|||||||||||||||||
Total Variable Overhead |
$ |
1,766 |
$ |
2,186 |
23.8% |
$ |
4,196 |
$ |
7,586 |
80.8% |
|||||||
Total Regional Fixed Overhead |
884 |
844 |
(4.5%) |
1,707 |
1,719 |
0.7% |
|||||||||||
Total Corporate Fixed Overhead |
5,260 |
4,510 |
(14.3%) |
10,613 |
9,573 |
(9.8%) |
|||||||||||
Total Overhead |
$ |
7,910 |
$ |
7,540 |
(4.7%) |
$ |
16,516 |
$ |
18,878 |
14.3% |
|||||||
Overhead as a percentage of Revenue |
13.3% |
12.2% |
(110 bp) |
13.5% |
15.1% |
160 bp |
|||||||||||
Consolidated EBITDA |
$ |
15,642 |
$ |
17,553 |
12.2% |
$ |
34,572 |
$ |
33,903 |
(1.9%) |
|||||||
Consolidated EBITDA Margin |
26.4% |
28.4% |
200 bp |
28.2% |
27.1% |
(110 bp) |
|||||||||||
Other Expenses and Interest |
|||||||||||||||||
Depreciation & Amortization |
$ |
3,365 |
$ |
3,957 |
17.6% |
$ |
6,687 |
$ |
7,691 |
15.0% |
|||||||
Non-Cash Stock Compensation |
1,287 |
1,006 |
(21.8%) |
2,376 |
1,964 |
(17.3%) |
|||||||||||
Interest Expense |
2,492 |
2,968 |
19.1% |
5,042 |
5,819 |
15.4% |
|||||||||||
Accretion of Discount on Convertible Subordinated Notes |
851 |
954 |
12.1% |
1,678 |
1,881 |
12.1% |
|||||||||||
Loss on Early Extinguishment of Debt |
— |
— |
—% |
— |
567 |
—% |
|||||||||||
Other, Net |
(13) |
— |
(100.0%) |
106 |
(305) |
(387.7%) |
|||||||||||
Pretax Income |
$ |
7,660 |
$ |
8,668 |
13.2% |
$ |
18,683 |
$ |
16,286 |
(12.8%) |
|||||||
Net Tax Provision |
3,103 |
3,468 |
7,708 |
6,515 |
|||||||||||||
GAAP Net Income |
$ |
4,557 |
$ |
5,200 |
14.1% |
$ |
10,975 |
$ |
9,771 |
(11.0%) |
|||||||
Special Items, Net of tax except for ** |
|||||||||||||||||
Withdrawable Trust Income |
$ |
230 |
n/a |
$ |
230 |
n/a |
|||||||||||
Acquisition and Divestiture Expenses |
19 |
— |
354 |
336 |
|||||||||||||
Severance Costs |
323 |
— |
407 |
1,794 |
|||||||||||||
Consulting Fees |
445 |
148 |
521 |
323 |
|||||||||||||
Accretion of Discount on Convertible Subordinated Notes ** |
851 |
954 |
1,678 |
1,881 |
|||||||||||||
Loss on Early Extinguishment of Debt |
— |
— |
— |
369 |
|||||||||||||
Gain on Asset Purchase |
— |
— |
— |
(198) |
|||||||||||||
Other Special Items |
— |
— |
98 |
— |
|||||||||||||
Tax Adjustment from Prior Period ** |
— |
— |
141 |
— |
|||||||||||||
Sum of Special Items, Net of tax |
$ |
1,868 |
$ |
1,102 |
(41.0%) |
$ |
3,429 |
$ |
4,505 |
31.4% |
|||||||
Adjusted Net Income |
$ |
6,425 |
$ |
6,302 |
(1.9%) |
$ |
14,404 |
$ |
14,276 |
(0.9%) |
|||||||
Adjusted Net Profit Margin |
10.8% |
10.2% |
(60 bp) |
11.8% |
11.4% |
(40 bp) |
|||||||||||
Adjusted Basic Earnings Per Share |
$ |
0.35 |
$ |
0.38 |
8.6% |
$ |
0.78 |
$ |
0.86 |
10.3% |
|||||||
Adjusted Diluted Earnings Per Share |
$ |
0.34 |
$ |
0.37 |
8.8% |
$ |
0.76 |
$ |
0.84 |
10.5% |
|||||||
GAAP Basic Earnings Per Share |
$ |
0.25 |
$ |
0.31 |
24.0% |
$ |
0.59 |
$ |
0.59 |
—% |
|||||||
GAAP Diluted Earnings Per Share |
$ |
0.24 |
$ |
0.30 |
25.0% |
$ |
0.57 |
$ |
0.57 |
—% |
|||||||
Weighted Average Basic Shares Outstanding |
18,268 |
16,516 |
18,238 |
16,488 |
|||||||||||||
Weighted Average Diluted Shares Outstanding |
18,880 |
17,075 |
18,844 |
16,862 |
|||||||||||||
Reconciliation to Adjusted Consolidated EBITDA |
|||||||||||||||||
Consolidated EBITDA |
$ |
15,642 |
$ |
17,553 |
12.2% |
$ |
34,572 |
$ |
33,903 |
(1.9%) |
|||||||
Withdrawable Trust Income |
348 |
n/a |
348 |
n/a |
|||||||||||||
Acquisition and Divestiture Expenses |
29 |
— |
537 |
516 |
|||||||||||||
Severance Costs |
489 |
— |
616 |
2,759 |
|||||||||||||
Consulting Fees |
673 |
228 |
788 |
496 |
|||||||||||||
Adjusted Consolidated EBITDA |
$ |
17,181 |
$ |
17,781 |
3.5% |
$ |
36,861 |
$ |
37,674 |
2.2% |
|||||||
Adjusted Consolidated EBITDA Margin |
29.0% |
28.7% |
(30 bp) |
30.1% |
30.1% |
0 bp |
| |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(unaudited and in thousands, except share data) | |||||||
|
| ||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
535 |
$ |
883 |
|||
Accounts receivable, net |
18,181 |
18,246 |
|||||
Inventories |
5,654 |
5,792 |
|||||
Prepaid expenses |
4,684 |
2,988 |
|||||
Other current assets |
4,707 |
809 |
|||||
Total current assets |
33,761 |
28,718 |
|||||
Preneed cemetery trust investments |
63,291 |
61,775 |
|||||
Preneed funeral trust investments |
85,553 |
83,429 |
|||||
Preneed receivables, net |
27,998 |
29,152 |
|||||
Receivables from preneed trusts |
13,544 |
12,865 |
|||||
Property, plant and equipment, net |
214,874 |
228,898 |
|||||
Cemetery property, net |
75,597 |
75,878 |
|||||
|
264,416 |
265,249 |
|||||
Intangible and other non-current assets |
10,978 |
14,307 |
|||||
Cemetery perpetual care trust investments |
43,127 |
42,505 |
|||||
Total assets |
$ |
833,139 |
$ |
842,776 |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Current liabilities: |
|||||||
Current portion of long-term debt and capital lease obligations |
$ |
12,236 |
$ |
12,605 |
|||
Accounts payable |
7,917 |
6,858 |
|||||
Other liabilities |
524 |
2,497 |
|||||
Accrued liabilities |
16,541 |
16,021 |
|||||
Total current liabilities |
37,218 |
37,981 |
|||||
Long-term debt, net of current portion |
103,495 |
139,693 |
|||||
Revolving credit facility |
91,514 |
58,703 |
|||||
Convertible subordinated notes due 2021 |
115,227 |
117,355 |
|||||
Obligations under capital leases, net of current portion |
2,875 |
2,757 |
|||||
Deferred preneed cemetery revenue |
56,721 |
56,669 |
|||||
Deferred preneed funeral revenue |
31,748 |
31,131 |
|||||
Deferred tax liability |
39,956 |
36,816 |
|||||
Other long-term liabilities |
5,531 |
5,813 |
|||||
Deferred preneed cemetery receipts held in trust |
63,291 |
61,775 |
|||||
Deferred preneed funeral receipts held in trust |
85,553 |
83,429 |
|||||
Care trusts' corpus |
42,416 |
42,117 |
|||||
Total liabilities |
675,545 |
674,239 |
|||||
Commitments and contingencies: |
|||||||
Stockholders' equity: |
|||||||
Common stock, |
225 |
225 |
|||||
Additional paid-in capital |
214,250 |
215,422 |
|||||
Retained earnings |
3,385 |
13,156 |
|||||
|
(60,266) |
(60,266) |
|||||
Total stockholders' equity |
157,594 |
168,537 |
|||||
Total liabilities and stockholders' equity |
$ |
833,139 |
$ |
842,776 |
| |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(unaudited and in thousands, except per share data) | |||||||||||||||
For the Three Months |
For the Six Months | ||||||||||||||
2015 |
2016 |
2015 |
2016 | ||||||||||||
Revenues: |
|||||||||||||||
Funeral |
$ |
44,501 |
$ |
46,467 |
$ |
94,638 |
$ |
95,769 |
|||||||
Cemetery |
14,760 |
15,398 |
27,876 |
29,427 |
|||||||||||
59,261 |
61,865 |
122,514 |
125,196 |
||||||||||||
Field costs and expenses: |
|||||||||||||||
Funeral |
27,263 |
27,783 |
55,678 |
55,564 |
|||||||||||
Cemetery |
8,446 |
8,989 |
15,748 |
16,851 |
|||||||||||
Depreciation and amortization |
2,993 |
3,571 |
5,795 |
6,907 |
|||||||||||
Regional and unallocated funeral and cemetery costs |
2,311 |
2,715 |
4,836 |
5,764 |
|||||||||||
41,013 |
43,058 |
82,057 |
85,086 |
||||||||||||
Gross profit |
18,248 |
18,807 |
40,457 |
40,110 |
|||||||||||
Corporate costs and expenses: |
|||||||||||||||
General and administrative costs and expenses |
6,886 |
5,831 |
14,056 |
15,078 |
|||||||||||
Home office depreciation and amortization |
372 |
386 |
892 |
784 |
|||||||||||
7,258 |
6,217 |
14,948 |
15,862 |
||||||||||||
Operating income |
10,990 |
12,590 |
25,509 |
24,248 |
|||||||||||
Interest expense |
(2,479) |
(2,968) |
(5,148) |
(5,819) |
|||||||||||
Accretion of discount on convertible subordinated notes |
(851) |
(954) |
(1,678) |
(1,881) |
|||||||||||
Loss on early extinguishment of debt |
— |
— |
— |
(567) |
|||||||||||
Other income |
— |
— |
— |
305 |
|||||||||||
Income before income taxes |
7,660 |
8,668 |
18,683 |
16,286 |
|||||||||||
Provision for income taxes |
(3,103) |
(3,468) |
(7,708) |
(6,515) |
|||||||||||
Net income |
$ |
4,557 |
$ |
5,200 |
$ |
10,975 |
$ |
9,771 |
|||||||
Basic earnings per common share: |
$ |
0.25 |
$ |
0.31 |
$ |
0.59 |
$ |
0.59 |
|||||||
Diluted earnings per common share: |
$ |
0.24 |
$ |
0.30 |
$ |
0.57 |
$ |
0.57 |
|||||||
Dividends declared per common share |
$ |
0.025 |
$ |
0.025 |
$ |
0.050 |
$ |
0.050 |
|||||||
Weighted average number of common and common equivalent shares outstanding: |
|||||||||||||||
Basic |
18,268 |
16,516 |
18,238 |
16,488 |
|||||||||||
Diluted |
18,880 |
17,075 |
18,844 |
16,862 |
| |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(unaudited and in thousands) | |||||||
For the Six Months Ended | |||||||
2015 |
2016 | ||||||
Cash flows from operating activities: |
|||||||
Net income |
$ |
10,975 |
$ |
9,771 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Depreciation and amortization |
6,687 |
7,691 |
|||||
Provision for losses on accounts receivable |
833 |
1,052 |
|||||
Stock-based compensation expense |
2,376 |
2,303 |
|||||
Deferred income tax expense |
1,452 |
1,116 |
|||||
Amortization of deferred financing costs |
460 |
420 |
|||||
Accretion of discount on convertible subordinated notes |
1,678 |
1,881 |
|||||
Loss on early extinguishment of debt |
— |
567 |
|||||
Net gain on sale and disposal of assets |
— |
(67) |
|||||
Changes in operating assets and liabilities that provided (required) cash: |
|||||||
Accounts and preneed receivables |
1,358 |
(2,271) |
|||||
Inventories and other current assets |
4,062 |
1,303 |
|||||
Intangible and other non-current assets |
117 |
300 |
|||||
Preneed funeral and cemetery trust investments |
1,603 |
4,941 |
|||||
Accounts payable |
167 |
(1,148) |
|||||
Accrued and other liabilities |
(953) |
1,207 |
|||||
Deferred preneed funeral and cemetery revenue |
(814) |
(669) |
|||||
Deferred preneed funeral and cemetery receipts held in trust |
(1,671) |
(3,939) |
|||||
Net cash provided by operating activities |
28,330 |
24,458 |
|||||
Cash flows from investing activities: |
|||||||
Acquisitions and land for new construction |
(4,250) |
(9,406) |
|||||
Purchase of land and buildings previously leased |
(6,080) |
(6,258) |
|||||
Net proceeds from the sale of other assets |
— |
555 |
|||||
Capital expenditures |
(15,285) |
(7,830) |
|||||
Net cash used in investing activities |
(25,615) |
(22,939) |
|||||
Cash flows from financing activities: |
|||||||
Borrowings from the revolving credit facility |
24,500 |
27,100 |
|||||
Payments against the revolving credit facility |
(18,600) |
(59,700) |
|||||
Borrowings from the term loan |
— |
39,063 |
|||||
Payments against the term loan |
(4,688) |
(5,625) |
|||||
Payments on other long-term debt and obligations under capital leases |
(401) |
(689) |
|||||
Proceeds from the exercise of stock options and employee stock purchase plan contributions |
410 |
457 |
|||||
Dividends on common stock |
(925) |
(831) |
|||||
Payment of loan origination costs related to the credit facility |
(13) |
(717) |
|||||
Purchase of treasury stock |
(3,082) |
— |
|||||
Excess tax benefit (deficiency) of equity compensation |
229 |
(229) |
|||||
Net cash used in financing activities |
(2,570) |
(1,171) |
|||||
Net increase in cash and cash equivalents |
145 |
348 |
|||||
Cash and cash equivalents at beginning of period |
413 |
535 |
|||||
Cash and cash equivalents at end of period |
$ |
558 |
$ |
883 |
|||
NON-GAAP FINANCIAL MEASURES
This press release uses Non-GAAP financial measures to present the financial performance of the Company. 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. We believe the Non-GAAP results are useful to investors because such results help investors compare our results to previous periods and provide insights into underlying trends in our business. The Company's GAAP financial statements accompany this release. Reconciliations of the Non-GAAP financial measures to GAAP measures are provided in this press release.
The Non-GAAP financial measures include "Special Items", "Adjusted Net Income", "Consolidated EBITDA", "Adjusted Consolidated EBITDA", "Adjusted Consolidated EBITDA Margin", "Adjusted Free Cash Flow", "Funeral, Cemetery and Financial EBITDA", "Total Field EBITDA", "Total Field EBITDA Margin", "Adjusted Basic Earnings Per Share" and "Adjusted Diluted Earnings Per Share" in this press release. These financial measurements are defined as similar GAAP items adjusted for Special Items and are reconciled to GAAP in this press release. In addition, the Company's presentation of these measures may not be comparable to similarly titled measures in other companies' reports. The definitions used by the Company for our internal management purposes and in this press release are as follows:
- Special Items are defined as charges or credits such as withdrawable trust income (prior to 2016), acquisition and divestiture expenses, severance costs, loss on early retirement of debt and other costs, discrete tax items and other non-recurring amounts. Special Items are taxed at the federal statutory rate of 34 percent for the three and six months ended
June 30, 2015 and 35 percent for the three and six months endedJune 30, 2016 , except for the accretion of the discount on Convertible Notes as this is a non-tax deductible item and the tax adjustment from prior period. - Adjusted Net Income is defined as net income plus adjustments for Special Items and other non-recurring expenses or credits.
- Consolidated EBITDA is defined as net income before income taxes, interest expenses, non-cash stock compensation, depreciation and amortization, and interest income and other, net.
- Adjusted Consolidated EBITDA is defined as Consolidated EBITDA plus adjustments for Special Items and non-recurring expenses or credits.
- Adjusted Consolidated EBITDA Margin is defined as Adjusted Consolidated EBITDA as a percentage of revenue.
- Adjusted Free Cash Flow is defined as net cash provided by operations, adjusted by Special Items as deemed necessary, less cash for maintenance capital expenditures.
- Funeral Field EBITDA is defined as Funeral Gross Profit, which is funeral revenue minus funeral field costs and expenses, less depreciation and amortization, regional and unallocated funeral overhead expenses and Funeral Financial EBITDA.
- Cemetery Field EBITDA is defined as Cemetery Gross Profit, which is cemetery revenue minus cemetery field costs and expenses, less depreciation and amortization, regional and unallocated cemetery overhead expenses and Cemetery Financial EBITDA.
- Funeral Financial EBITDA is defined as Funeral Financial Revenue less Funeral Financial Expenses.
- Cemetery Financial EBITDA is defined as Cemetery Financial Revenue less Cemetery Financial Expenses.
- Total Field EBITDA is defined as Gross Profit less depreciation and amortization, regional and unallocated overhead expenses.
- Total Field EBITDA Margin is defined as Total Field EBITDA as a percentage of revenue.
- Adjusted Basic Earnings Per Share is defined as GAAP Basic Earnings Per Share, adjusted for Special Items.
- Adjusted Diluted Earnings Per Share is defined as GAAP Diluted Earnings Per Share, adjusted for Special Items.
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 Adjusted Net Income for the three and six months ended | |||||||||||||||
For the Three Months |
For the Six Months | ||||||||||||||
2015 |
2016 |
2015 |
2016 | ||||||||||||
Net Income |
$ |
4,557 |
$ |
5,200 |
$ |
10,975 |
$ |
9,771 |
|||||||
Special Items, net of tax except for ** |
|||||||||||||||
Withdrawable Trust Income |
230 |
n/a |
230 |
n/a | |||||||||||
Acquisition and Divestiture Expenses |
19 |
— |
354 |
336 |
|||||||||||
Severance Costs |
323 |
— |
407 |
1,794 |
|||||||||||
Consulting Fees |
445 |
148 |
521 |
323 |
|||||||||||
Accretion of Discount on Convertible Subordinated Notes ** |
851 |
954 |
1,678 |
1,881 |
|||||||||||
Costs Related to the Credit Facility |
— |
— |
— |
369 |
|||||||||||
Gain on Sale of Asset |
— |
— |
— |
(198) |
|||||||||||
Other Special Items |
— |
— |
98 |
— |
|||||||||||
Tax Adjustment from Prior Period ** |
— |
— |
141 |
— |
|||||||||||
Total Special Items affecting Net Income |
$ |
1,868 |
$ |
1,102 |
$ |
3,429 |
$ |
4,505 |
|||||||
Adjusted Net Income |
$ |
6,425 |
$ |
6,302 |
$ |
14,404 |
$ |
14,276 |
Reconciliation of Net Income to Consolidated EBITDA and Adjusted Consolidated EBITDA for the three and six months ended | |||||||||||||||
For the Three Months |
For the Six Months | ||||||||||||||
2015 |
2016 |
2015 |
2016 | ||||||||||||
Net Income |
$ |
4,557 |
$ |
5,200 |
$ |
10,975 |
$ |
9,771 |
|||||||
Net Tax Provision |
3,103 |
3,468 |
7,708 |
6,515 |
|||||||||||
Pretax Income |
$ |
7,660 |
$ |
8,668 |
$ |
18,683 |
$ |
16,286 |
|||||||
Interest Expense |
2,492 |
2,968 |
5,042 |
5,819 |
|||||||||||
Accretion of Discount on Convertible Subordinated Notes |
851 |
954 |
1,678 |
1,881 |
|||||||||||
Loss on Early Extinguishment of Debt |
— |
— |
— |
567 |
|||||||||||
Non-cash Stock Compensation |
1,287 |
1,006 |
2,376 |
1,964 |
|||||||||||
Depreciation & Amortization |
3,365 |
3,957 |
6,687 |
7,691 |
|||||||||||
Other, net |
(13) |
— |
106 |
(305) |
|||||||||||
Consolidated EBITDA |
$ |
15,642 |
$ |
17,553 |
$ |
34,572 |
$ |
33,903 |
|||||||
Adjusted For: |
|||||||||||||||
Withdrawable Trust Income |
348 |
n/a |
348 |
n/a |
|||||||||||
Acquisition and Divestiture Expenses |
29 |
— |
537 |
516 |
|||||||||||
Severance Costs |
489 |
— |
616 |
2,759 |
|||||||||||
Consulting Fees |
673 |
228 |
788 |
496 |
|||||||||||
Adjusted Consolidated EBITDA |
$ |
17,181 |
$ |
17,781 |
$ |
36,861 |
$ |
37,674 |
|||||||
Revenue |
$ |
59,261 |
$ |
61,865 |
$ |
122,514 |
$ |
125,196 |
|||||||
Adjusted Consolidated EBITDA Margin |
29.0% |
28.7% |
30.1% |
30.1% |
Reconciliation of funeral and cemetery income before income taxes to Field EBITDA for the three and six months ended | |||||||||||||||
Funeral Field EBITDA |
For the Three Months |
For the Six Months | |||||||||||||
2015 |
2016 |
2015 |
2016 | ||||||||||||
Gross Profit (GAAP) |
$ |
13,644 |
$ |
14,388 |
$ |
31,640 |
$ |
31,356 |
|||||||
Depreciation & Amortization |
1,876 |
2,138 |
3,665 |
4,216 |
|||||||||||
Regional & Unallocated Costs |
1,718 |
2,158 |
3,655 |
4,633 |
|||||||||||
Funeral Financial EBITDA |
(1,925) |
(1,921) |
(4,196) |
(4,118) |
|||||||||||
Funeral Field EBITDA |
$ |
15,313 |
$ |
16,763 |
$ |
34,764 |
$ |
36,087 |
|||||||
Cemetery Field EBITDA |
For the Three Months |
For the Six Months | |||||||||||||
2015 |
2016 |
2015 |
2016 | ||||||||||||
Gross Profit (GAAP) |
$ |
4,604 |
$ |
4,419 |
$ |
8,817 |
$ |
8,754 |
|||||||
Depreciation & Amortization |
1,117 |
1,433 |
2,130 |
2,691 |
|||||||||||
Regional & Unallocated Costs |
593 |
557 |
1,181 |
1,131 |
|||||||||||
Cemetery Financial EBITDA |
(2,489) |
(2,220) |
(4,453) |
(4,323) |
|||||||||||
Cemetery Field EBITDA |
$ |
3,825 |
$ |
4,189 |
$ |
7,675 |
$ |
8,253 |
|||||||
Total Field EBITDA |
For the Three Months |
For the Six Months | |||||||||||||
2015 |
2016 |
2015 |
2016 | ||||||||||||
Funeral Field EBITDA |
$ |
15,313 |
$ |
16,763 |
$ |
34,764 |
$ |
36,087 |
|||||||
Cemetery Field EBITDA |
3,825 |
4,189 |
7,675 |
8,253 |
|||||||||||
Funeral Financial EBITDA |
1,925 |
1,921 |
4,196 |
4,118 |
|||||||||||
Cemetery Financial EBITDA |
2,489 |
2,220 |
4,453 |
4,323 |
|||||||||||
Total Field EBITDA |
$ |
23,552 |
$ |
25,093 |
$ |
51,088 |
$ |
52,781 |
Reconciliation of GAAP Basic Earnings Per Share to Adjusted Basic Earnings Per Share for the three and six months ended | |||||||||||||||
For the Three Months |
For the Six Months | ||||||||||||||
2015 |
2016 |
2015 |
2016 | ||||||||||||
GAAP Basic Earnings Per Share |
$ |
0.25 |
$ |
0.31 |
$ |
0.59 |
$ |
0.59 |
|||||||
Special Items Affecting Net Income |
0.10 |
0.07 |
0.19 |
0.27 |
|||||||||||
Adjusted Basic Earnings Per Share |
$ |
0.35 |
$ |
0.38 |
$ |
0.78 |
$ |
0.86 |
Reconciliation of GAAP Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share for the three and six months ended | |||||||||||||||
For the Three Months |
For the Six Months | ||||||||||||||
2015 |
2016 |
2015 |
2016 | ||||||||||||
GAAP Diluted Earnings Per Share |
$ |
0.24 |
$ |
0.30 |
$ |
0.57 |
$ |
0.57 |
|||||||
Special Items Affecting Net Income |
0.10 |
0.07 |
0.19 |
0.27 |
|||||||||||
Adjusted Diluted Earnings Per Share |
$ |
0.34 |
$ |
0.37 |
$ |
0.76 |
$ |
0.84 |
On page six of this press release, we present the Rolling Four Quarter Outlook ("Outlook") which reflects management's opinion on the performance of the portfolio of existing businesses, including performance of existing trusts, and excludes size and timing of acquisitions for the Rolling Four Quarter Outlook period ending
Reconciliation of Net Income to Consolidated EBITDA and Adjusted Consolidated EBITDA for the estimated Rolling Four Quarters ending | |||||||
Rolling Four Quarter Outlook | |||||||
June, 2017E |
|||||||
Net Income |
$ |
25,900 |
|||||
Net Tax Provision |
17,200 |
||||||
Pretax Income |
$ |
43,100 |
|||||
Net Interest Expense, including Accretion of Discount on Convertible Subordinated Notes |
14,900 |
||||||
Depreciation & Amortization, including Non-cash Stock Compensation |
18,500 |
||||||
Consolidated EBITDA |
$ |
76,500 |
|||||
Adjusted for Special Items |
— |
||||||
Adjusted Consolidated EBITDA |
$ |
76,500 |
Reconciliation of Net Income from Adjusted Net Income for the estimated Rolling Four Quarters ending | |||||||
Rolling Four Quarter Outlook | |||||||
|
|||||||
Net Income |
$ |
25,900 |
|||||
Special Items |
4,100 |
||||||
Adjusted Net Income |
$ |
30,000 |
Reconciliation of GAAP Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share for the estimated Rolling Four Quarters ending | |||||||
Rolling Four Quarter Outlook | |||||||
|
|||||||
GAAP Diluted Earnings Per Share |
$ |
1.49 |
|||||
Special Items Affecting Net Income |
0.24 |
||||||
Adjusted Diluted Earnings Per Share |
$ |
1.73 |
CAUTIONARY STATEMENT ON 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. In addition to historical information, this Press Release contains certain statements and information that may constitute forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding any projections of earnings, revenues, asset sales, cash flow, debt levels or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing and are based on our current expectations and beliefs concerning future developments and their potential effect on us. The words "may", "will", "estimate", "intend", "believe", "expect", "seek", "project", "forecast", "foresee", "should", "would", "could", "plan", "anticipate" and other similar words or expressions are intended to identify forward-looking statements, which are generally not historical in nature. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future revenues and operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those summarized below:
- the ability to find and retain skilled personnel;
- the effects of competition;
- the execution of our Standards Operating, 4E Leadership and Strategic Acquisition Models;
- changes in the number of deaths in our markets;
- changes in consumer preferences;
- our ability to generate preneed sales;
- the investment performance of our funeral and cemetery trust funds;
- fluctuations in interest rates;
- our ability to obtain debt or equity financing on satisfactory terms to fund additional acquisitions, expansion projects, working capital requirements and the repayment or refinancing of indebtedness;
- death benefits related to preneed funeral contracts funded through life insurance contracts;
- the financial condition of third-party insurance companies that fund our preneed funeral contracts;
- increased or unanticipated costs, such as insurance or taxes;
- effects of the application of applicable laws and regulations, including changes in such regulations or the interpretation thereof;
- consolidation of the deathcare industry; and
- other factors and uncertainties inherent in the deathcare industry.
For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see "Risk Factors" in our most recent Annual Report on Form 10-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise. A copy of the Company's Form 10-K, other
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 in the tables presented above.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/carriage-services-announces-record-2016-second-quarter-results-reaffirms-rolling-four-quarter-outlook-300303795.html
SOURCE
News Provided by Acquire Media