Carriage Services' Board Of Directors Approves Share Repurchase Plan
Commenting on the announcement,
We have recently begun to invest more of our Free Cash Flow on internal growth projects in select large strategic markets where we have strong competitive brands and highly favorable future market demographics. We will continue to be active and highly selective in our acquisition strategy using our updated Strategic Acquisition Model and Methodologies. However, we do not believe it is wise or necessary to rely primarily on acquisitions for growth in our performance metrics that lead to shareholder value creation.
We have concluded that allocation of our Free Cash Flow should also include repurchasing common shares when the price does not fully reflect the cash earning power and intrinsic value of our company, which we believe is currently the case. When we launched
As fully explained in our recently released Carriage Investor Reference Book and our Company Investment Profile, both of which are available on our website, we believe that Carriage as a consolidation and operating platform for the funeral and cemetery industry has evolved into a superior value creation investment platform. We are the right size with the right models and the right capital structure in a historically low rate environment to leverage 6-8% annual revenue increases into much larger increases in Adjusted Diluted EPS and Adjusted Free Cash Flow over time. Notwithstanding that our price per common share has increased about 350% from
We are currently trading at a significant performance valuation discount to our sector peer group as to Adjusted EPS and normalized recurring Free Cash Flow. Carriage's Rolling Four Quarter Outlook reflects a "roughly right" range of
We will repurchase shares under our
Our company goal remains the creation of long term value for our shareholders and improvement of our credit profile over time consistent with our high and sustainable performance through 4E Leadership execution of our three models since beginning the Carriage Good To Great Journey in 2012", concluded
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 and Cautionary Statements" in the Company's Annual Report and Form 10-K for the year ended
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