Delaware | 1-11961 | 76-0423828 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
CARRIAGE SERVICES, INC. | |||
Dated: May 7, 2013 | By: | /s/ L. William Heiligbrodt | |
L. William Heiligbrodt | |||
Vice Chairman, Executive Vice President and Secretary | |||
(Principal Financial Officer) |
Exhibit | Description | ||
99.1 | Press Release dated May 7, 2013. |
• | Total Revenue up 13.2% to $58.1 million; |
• | Consolidated EBITDA up 14.5% to $16.0 million; |
• | Consolidated EBITDA Margin up 30 basis points to 27.6%; |
• | Adjusted Consolidated EBITDA up 7.2% to $16.8 million; |
• | Adjusted Consolidated EBITDA Margin down 160 basis points to 29.0%; |
• | Adjusted Basic Earnings Per Share up 21.4% to $0.34 from $0.28 in 2012; |
• | Adjusted Diluted Earnings Per Share up 18.5% to $0.32 from $0.27 in 2012; |
• | GAAP Basic EPS from Continuing Operations up 40.9% to $0.31 in 2013 from $0.22 in 2012; |
• | GAAP Diluted EPS from Continuing Operations up 22.7% to $0.27 in 2013 from $0.22 in 2012; |
• | Free Cash Flow up 314% to a record $9.1 million in 2013 from $2.2 million in 2012. |
• | Total Field Revenue increased 13.2% to $58.1 million; |
• | Total Field EBITDA increased 15.4% to $24.4 million; and |
• | Total Field EBITDA Margin increased 80 basis points to 42.1%. |
• | Total Funeral Operating Revenue increased 13.2% to $42.9 million; |
• | Same Store Funeral Revenue increased 5.3% with same store volume increasing 7.0%; |
• | Acquisition Funeral Revenue increased 52.5% with acquisition volume increasing 39.7%; |
• | Total Funeral Field EBITDA increased 10.5% to $16.9 million; |
• | Total Funeral Field EBITDA Margin decreased 100 basis points to 39.4%; |
• | Average revenue per contract decreased slightly from $5,397 to $5,365 in 2012; and |
• | Cremation rate increased 10 basis points to 46.4%. |
• | Total Cemetery Operating Revenue increased 8.6% to $10.2 million; |
• | Total Cemetery Field EBITDA increased 36.3% to $3.0 million; |
• | Total Cemetery Field EBITDA Margin increased 600 basis points to 29.7%; |
• | Cemetery pre-need property sale contracts increased 6.2% to 1,545; and |
• | Average Cemetery pre-need property sale per contract increased 12.2% to $2,659. |
• | Total Financial Revenue increased 23.6% to $5.0 million; |
• | Funeral Financial Revenue increased 5.1% to $2.2 million; |
• | Cemetery Financial Revenue increased 44.4% to $2.7 million; |
• | Total Financial EBITDA increased 22.8% to $4.5 million; and |
• | Total Financial EBITDA Margin decreased 50 basis points to 90.7%. |
For Three Months Ending March 31 | |||||||
2012 | 2013 | ||||||
Cash flow provided by continuing operations | $ | 3.1 | $ | 10.9 | |||
Cash used for maintenance capital expenditures | $ | (0.9 | ) | $ | (1.8 | ) | |
Free Cash Flow | $ | 2.2 | $ | 9.1 | |||
Cash at Beginning of period | $ | 1.1 | $ | 1.7 | |||
Cash used for growth capital expenditures | $ | (2.2 | ) | $ | (6.9 | ) | |
Cash used for acquisitions | $ | (11.6 | ) | $ | — | ||
Cash from discontinued operations | $ | 0.4 | $ | 2.0 | |||
Cash used to increase (reduce) loans from credit facilities | $ | 13.9 | $ | (4.2 | ) | ||
Cash used to increase (reduce) loans from other financing activities | $ | (2.9 | ) | $ | (0.4 | ) | |
Cash at end of period | $ | 0.9 | $ | 1.3 |
Range (in millions, except per share amounts) | |
Revenues | $231 – $232 |
Consolidated EBITDA | $58 – $60 |
Adjusted Consolidated EBITDA | $61 – $63 |
Net Income | $19 – $21 |
Adjusted Net Income | $20 – $22 |
Basic GAAP Earnings Per Share | $1.06 – $1.08 |
Basic Adjusted Earnings Per Share | $1.16 – $1.18 |
Fully Diluted GAAP Earnings Per Share | $1.03 – $1.05 |
Fully Diluted Adjusted Earnings Per Share | $1.11 – $1.13 |
Cash Flow from Operations | $34 – $36 |
Free Cash Flow | $30 – $32 |
• | Increases in Acquired Funeral Revenue and Acquired Funeral Field EBITDA; |
• | Modest increases in Same Store Funeral Revenue and Same Store Funeral Field EBITDA; |
• | Increases in Cemetery Revenue and Cemetery Field EBITDA; |
• | Increases in Financial Revenue and Financial EBITDA from trust funds; and |
• | Reduced interest expenses as result of the refinancing in September 2012 and the recent reduction in interest rate terms with the new amendment. |
Investment Performance | ||||||||||||
Investment Performance(1) | Index Performance | |||||||||||
Discretionary | Total Trust | S&P 500 Stock Index | Barclay’s U.S. Corporate High Yield Index | 50/50 index Benchmark(2) | ||||||||
3 months ended 3/31/13 | 4.3 | % | 4.3 | % | 10.6 | % | 2.9 | % | 6.8 | % | ||
1 year ended 12/31/12 | 20.3 | % | 17.1 | % | 16.0 | % | 15.8 | % | 15.9 | % | ||
2 years ended 12/31/12 | 16.8 | % | 14.9 | % | 18.4 | % | 21.6 | % | 20.0 | % | ||
3 years ended 12/31/12 | 41.0 | % | 35.8 | % | 36.3 | % | 40.0 | % | 38.1 | % | ||
4 years ended 12/31/12 | 119.4 | % | 99.8 | % | 72.3 | % | 121.4 | % | 96.9 | % |
(2) | The 50/50 Benchmark is 50% weighted to the S&P 500 Stock Index and 50% weighted to the Barclay’s U.S. Corporate High Yield Index |
Asset Allocation as of March 31, 2013 (in thousands) | |||||||||||||||
Discretionary Trust Funds | Total Trust Funds | ||||||||||||||
Asset Class | MV | % | MV | % | |||||||||||
Cash | $ | 4,356 | 2 | % | $ | 20,752 | 9.0 | % | |||||||
Equities | 24,890 | 14 | % | 44,065 | 18.0 | % | |||||||||
Fixed Income | 149,650 | 83 | % | 170,821 | 72.0 | % | |||||||||
Other/Insurance | 2,059 | 1 | % | 2,239 | 1.0 | % | |||||||||
Total Portfolios | $ | 180,955 | 100 | % | $ | 237,877 | 100 | % |
CARRIAGE SERVICES, INC. | ||||||||
NON-GAAP UNAUDITED TREND OPERATING AND FINANCIAL METRICS | ||||||||
FROM CONTINUING OPERATIONS (IN THOUSANDS - EXCEPT PER SHARE AMOUNTS) | ||||||||
Three Months Ended March 31, | ||||||||
2012 | 2013 | % Change | ||||||
Same Store Contracts | ||||||||
Atneed Contracts | 4,670 | 4,960 | 6.2 | % | ||||
Preneed Contracts | 1,250 | 1,372 | 9.8 | % | ||||
Total Same Store Funeral Contracts | 5,920 | 6,332 | 7.0 | % | ||||
Acquisition Contracts | ||||||||
Atneed Contracts | 1,226 | 1,645 | 34.2 | % | ||||
Preneed Contracts | 188 | 330 | 75.5 | % | ||||
Total Acquisition Funeral Contracts | 1,414 | 1,975 | 39.7 | % | ||||
Total Funeral Contracts | 7,334 | 8,307 | 13.3 | % | ||||
Funeral Operating Revenue | ||||||||
Same Store Revenue | $ | 31,517 | $ | 33,172 | 5.3 | % | ||
Acquisition Revenue | 6,394 | 9,754 | 52.5 | % | ||||
Total Funeral Operating Revenue | $ | 37,911 | $ | 42,926 | 13.2 | % | ||
Cemetery Operating Revenue | ||||||||
Same Store Revenue | $ | 9,403 | $ | 10,140 | 7.8 | % | ||
Acquisition Revenue | — | 69 | ||||||
Total Cemetery Operating Revenue | $ | 9,403 | $ | 10,209 | 8.6 | % | ||
Financial Revenue | ||||||||
Preneed Funeral Commission Income | 451 | 508 | 12.6 | % | ||||
Preneed Funeral Trust Earnings | 1,673 | 1,723 | 3.0 | % | ||||
Cemetery Trust Earnings | 1,516 | 2,403 | 58.5 | % | ||||
Preneed Cemetery Finance Charges | 369 | 318 | -13.8 | % | ||||
Total Financial Revenue | $ | 4,009 | $ | 4,952 | 23.5 | % | ||
Total Revenue | $ | 51,323 | $ | 58,087 | 13.2 | % | ||
Field EBITDA | ||||||||
Same Store Funeral Field EBITDA | $ | 12,833 | $ | 13,552 | 5.6 | % | ||
Same Store Funeral Field EBITDA Margin | 40.7 | % | 40.9 | % | 20 bp | |||
Acquisition Funeral Field EBITDA | 2,470 | 3,365 | 36.2 | % | ||||
Acquisition Funeral Field EBITDA Margin | 38.6 | % | 34.5 | % | -410 bp | |||
Total Funeral Field EBITDA | $ | 15,303 | $ | 16,917 | 10.5 | % | ||
Total Funeral Field EBITDA Margin | 40.4 | % | 39.4 | % | -100 bp | |||
Same Store Cemetery Field EBITDA | $ | 2,221 | $ | 3,055 | 37.6 | % | ||
Same Store Cemetery Field EBITDA Margin | 23.6 | % | 30.1 | % | 650 bp | |||
Acquisition Cemetery Field EBITDA | — | (27 | ) | |||||
Acquisition Cemetery Field EBITDA Margin | — | -39.1 | % | |||||
Total Cemetery Field EBITDA | $2,221 | $3,028 | 36.3 | % | ||||
Total Cemetery Field EBITDA Margin | 23.6 | % | 29.7 | % | 610 bp | |||
Funeral Financial EBITDA | $ | 1,773 | $ | 1,819 | 2.6 | % | ||
Cemetery Financial EBITDA | 1,885 | 2,674 | 41.9 | % | ||||
Total Financial EBITDA | $ | 3,658 | $ | 4,493 | 22.8 | % | ||
Total Financial EBITDA Margin | 91.2 | % | 90.7 | % | -50 bp | |||
Total Field EBITDA | 21,182 | 24,438 | 15.4 | % | ||||
Total Field EBITDA Margin | 41.3 | % | 42.1 | % | 80 bp |
CARRIAGE SERVICES, INC. | ||||||||
NON-GAAP UNAUDITED TREND OPERATING AND FINANCIAL METRICS | ||||||||
FROM CONTINUING OPERATIONS (IN THOUSANDS - EXCEPT PER SHARE AMOUNTS) | ||||||||
Three Months Ended March 31, | ||||||||
2012 | 2013 | % Change | ||||||
Overhead | ||||||||
Total Variable Overhead | $ | 2,191 | $ | 2,029 | -7.4 | % | ||
Total Regional Fixed Overhead | 783 | 1,463 | 86.8 | % | ||||
Total Corporate Fixed Overhead | 4,198 | 4,901 | 16.7 | % | ||||
Total Overhead | 7,172 | 8,393 | 17.0 | % | ||||
Overhead as a percent of sales | 14.0 | % | 14.5 | % | 50 bp | |||
Consolidated EBITDA | 14,009 | 16,045 | 14.5 | % | ||||
Consolidated EBITDA Margin | 27.3 | % | 27.6 | % | 30 bp | |||
Other Expenses and Interest | ||||||||
Property Depreciation & Amortization | $ | 2,411 | $ | 2,839 | 17.8 | % | ||
Non Cash Stock Compensation | 402 | 646 | 60.7 | % | ||||
Interest Expense | 4,569 | 2,613 | -42.8 | % | ||||
Interest Income and Other, Net | (17 | ) | (18 | ) | 5.9 | % | ||
Pretax Income | $ | 6,644 | $ | 9,965 | 50.0 | % | ||
Tax Provision | 2,574 | 4,384 | — | |||||
GAAP Net Income | $ | 4,070 | $ | 5,581 | 37.1 | % | ||
Special Items, Net of Tax | ||||||||
Withdrawable Trust Income | $ | 458 | $ | 328 | ||||
Acquisition Expenses | 249 | 5 | ||||||
Severance Costs | 319 | 126 | ||||||
Other special items | 89 | 54 | ||||||
Prior period amortization adjustments for TIDES | — | (538 | ) | |||||
Tax adjustment from prior period | — | 598 | ||||||
Sum of Special Items, net of tax | $ | 1,115 | $ | 573 | -48.6 | % | ||
Adjusted Net Income | $ | 5,185 | $ | 6,154 | 18.7 | % | ||
Adjusted Net Profit Margin | 10.1 | % | 10.6 | % | 50 bp | |||
Adjusted Basic Earnings Per Share | $ | 0.28 | $ | 0.34 | 21.4 | % | ||
Adjusted Diluted Earnings Per Share | $ | 0.27 | $ | 0.32 | 18.5 | % | ||
GAAP Basic Earnings Per Share | $ | 0.22 | $ | 0.31 | 40.9 | % | ||
GAAP Diluted Earnings Per Share | $ | 0.22 | $ | 0.27 | 22.7 | % | ||
Tax rate | 38.8 | % | 44.0 | % | 520 bp | |||
Reconciliation to Adjusted Consolidated EBITDA | ||||||||
Consolidated EBITDA | $ | 14,009 | $ | 16,045 | 14.5 | % | ||
Withdrawable Trust Income | $ | 694 | $ | 497 | ||||
Acquisition Expenses | 377 | 8 | ||||||
Severance Costs | 483 | 191 | ||||||
Other special items | 135 | 83 | ||||||
Adjusted Consolidated EBITDA | $ | 15,698 | $ | 16,824 | 7.2 | % | ||
Adjusted Consolidated EBITDA Margin | 30.6 | % | 29.0 | % | -160 bp |
December 31, 2012 | March 31, 2013 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,698 | $ | 1,290 | |||
Accounts receivable, net | 17,812 | 18,142 | |||||
Assets held for sale | 1,466 | 3,183 | |||||
Inventories | 5,133 | 5,010 | |||||
Prepaid expenses | 5,107 | 4,138 | |||||
Other current assets | 1,923 | 4,107 | |||||
Total current assets | 33,139 | 35,870 | |||||
Preneed cemetery trust investments | 70,960 | 73,067 | |||||
Preneed funeral trust investments | 82,896 | 85,224 | |||||
Preneed receivables, net | 23,222 | 24,181 | |||||
Receivables from preneed trusts | 25,871 | 26,938 | |||||
Property, plant and equipment, net | 152,433 | 155,677 | |||||
Cemetery property | 75,156 | 75,030 | |||||
Goodwill | 218,442 | 217,243 | |||||
Deferred charges and other non-current assets | 9,424 | 7,156 | |||||
Cemetery perpetual care trust investments | 46,542 | 47,165 | |||||
Total assets | $ | 738,085 | $ | 747,551 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Current portion of senior long-term debt and capital lease obligations | $ | 11,218 | $ | 11,629 | |||
Accounts payable | 5,243 | 4,359 | |||||
Other liabilities | 13,067 | 14,346 | |||||
Accrued liabilities | 12,278 | 11,671 | |||||
Liabilities associated with assets held for sale | 369 | 578 | |||||
Total current liabilities | 42,175 | 42,583 | |||||
Long-term debt, net of current portion | 118,841 | 115,718 | |||||
Line of credit | 44,700 | 43,000 | |||||
Convertible junior subordinated debentures due in 2029 to an affiliate | 89,770 | 89,770 | |||||
Obligations under capital leases, net of current portion | 4,013 | 3,943 | |||||
Deferred preneed cemetery revenue | 63,998 | 64,627 | |||||
Deferred preneed funeral revenue | 39,794 | 41,846 | |||||
Deferred preneed cemetery receipts held in trust | 70,960 | 73,067 | |||||
Deferred preneed funeral receipts held in trust | 82,896 | 85,224 | |||||
Care trusts’ corpus | 45,920 | 47,083 | |||||
Total liabilities | 603,067 | 606,861 | |||||
Commitments and contingencies: | |||||||
Redeemable preferred stock | 200 | 200 | |||||
Stockholders’ equity: | |||||||
Common stock, $.01 par value; 80,000,000 shares authorized; 22,078,000 and 22,053,000 shares issued at December 31, 2012 and March 31, 2013, respectively | 221 | 221 | |||||
Additional paid-in capital | 202,462 | 202,880 | |||||
Accumulated deficit | (52,598 | ) | (47,344 | ) | |||
Treasury stock, at cost; 3,922,000 shares at December 31, 2012 and March 31, 2013 | (15,267 | ) | (15,267 | ) | |||
Total stockholders’ equity | 134,818 | 140,490 | |||||
Total liabilities and stockholders’ equity | $ | 738,085 | $ | 747,551 |
For the three months ended March 31, | |||||||
2012 | 2013 | ||||||
Revenues | $ | 51,323 | $ | 58,087 | |||
Field costs and expenses | 34,632 | 39,409 | |||||
Gross profit | 16,691 | 18,678 | |||||
General and administrative expenses | 5,495 | 6,118 | |||||
Operating income | 11,196 | 12,560 | |||||
Interest expense | (4,569 | ) | (2,613 | ) | |||
Interest income and other, net | 17 | 18 | |||||
Income from continuing operations before income taxes | 6,644 | 9,965 | |||||
Provision for income taxes | (2,574 | ) | (4,384 | ) | |||
Net income from continuing operations | 4,070 | 5,581 | |||||
Net income (loss) from discontinued operations, net of tax | 389 | (323 | ) | ||||
Net income | 4,459 | 5,258 | |||||
Preferred stock dividend | 4 | 4 | |||||
Net income available to common stockholders | 4,455 | $ | 5,254 | ||||
Basic earnings per common share: | |||||||
Continuing operations | $ | 0.22 | $ | 0.31 | |||
Discontinued operations | 0.02 | (0.02 | ) | ||||
Basic earnings per common share | $ | 0.24 | $ | 0.29 | |||
Diluted earnings per common share: | |||||||
Continuing operations | $ | 0.22 | $ | 0.27 | |||
Discontinued operations | 0.02 | (0.02 | ) | ||||
Diluted earnings per common share | $ | 0.24 | $ | 0.25 | |||
Dividends declared per common share | $ | 0.025 | $ | 0.025 | |||
Weighted average number of common and common equivalent shares outstanding: | |||||||
Basic | 18,265 | 18,139 | |||||
Diluted | 18,320 | 22,728 |
For the three months ended March 31, | |||||||
2012 | 2013 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 4,459 | $ | 5,258 | |||
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||||||
(Income) loss from discontinued operations | (389 | ) | 323 | ||||
Depreciation and amortization | 2,412 | 2,839 | |||||
Amortization of deferred financing costs | 174 | (638 | ) | ||||
Provision for losses on accounts receivable | 486 | 440 | |||||
Stock-based compensation expense | 403 | 646 | |||||
Deferred income taxes | 2,104 | 1,354 | |||||
Other | (10 | ) | — | ||||
Changes in operating assets and liabilities that provided (required) cash: | |||||||
Accounts and preneed receivables | (1,240 | ) | (1,966 | ) | |||
Inventories and other current assets | (118 | ) | (1,868 | ) | |||
Deferred charges and other | (38 | ) | — | ||||
Preneed funeral and cemetery trust investments | 2,305 | 1,411 | |||||
Accounts payable and accrued liabilities | (5,310 | ) | 2,321 | ||||
Deferred preneed funeral and cemetery revenue | 182 | 2,678 | |||||
Deferred preneed funeral and cemetery receipts held in trust | (2,270 | ) | (1,935 | ) | |||
Net cash provided by continuing operating activities | 3,150 | 10,863 | |||||
Net cash provided by discontinued operating activities | 373 | 122 | |||||
Net cash provided by operating activities | 3,523 | 10,985 | |||||
Cash flows from investing activities: | |||||||
Acquisitions | (11,589 | ) | — | ||||
Capital expenditures | (3,090 | ) | (8,711 | ) | |||
Net cash used in continuing investing activities | (14,679 | ) | (8,711 | ) | |||
Net cash provided by discontinued investing activities | 9 | 1,928 | |||||
Net cash used in investing activities | (14,670 | ) | (6,783 | ) | |||
Cash flows from financing activities: | |||||||
Net borrowings from (payments against) the bank credit facility | 13,900 | (4,200 | ) | ||||
Payments on long-term debt and obligations under capital leases | (164 | ) | (160 | ) | |||
Proceeds from the exercise of stock options and employee stock purchase plan | 318 | 318 | |||||
Stock option benefit | 21 | — | |||||
Dividends on common stock | (454 | ) | (452 | ) | |||
Dividend on redeemable preferred stock | (4 | ) | (4 | ) | |||
Payment of loan origination costs | — | (98 | ) | ||||
Purchase of treasury stock | (2,731 | ) | — | ||||
Net cash provided by (used in) continuing financing activities | 10,886 | (4,596 | ) | ||||
Net cash used in discontinued financing activities | (7 | ) | (14 | ) | |||
Net cash provided by (used in) financing activities | 10,879 | (4,610 | ) | ||||
Net decrease in cash and cash equivalents | (268 | ) | (408 | ) | |||
Cash and cash equivalents at beginning of period | 1,137 | 1,698 | |||||
Cash and cash equivalents at end of period | $ | 869 | $ | 1,290 |
Three months ended March 31, | |||||||
2012 | 2013 | ||||||
Net Income from continuing operations | $ | 4,070 | $ | 5,581 | |||
Special items, net of tax | |||||||
Withdrawable Trust Income (loss) | 458 | 328 | |||||
Acquisition Expenses | 249 | 5 | |||||
Severance Costs | 319 | 126 | |||||
Other Special Items | 89 | 54 | |||||
Prior period amortization adjustments for TIDES | — | (538 | ) | ||||
Tax adjustment from prior period | — | 598 | |||||
Total Special items affecting net income | $ | 1,115 | $ | 573 | |||
Adjusted Net Income | $ | 5,185 | $ | 6,154 |
Three months ended March 31, | |||||||
2012 | 2013 | ||||||
Net income from continuing operations | $ | 4,070 | $ | 5,581 | |||
Provision for income taxes | 2,574 | 4,384 | |||||
Pre-tax earnings from continuing operations | 6,644 | 9,965 | |||||
Interest expense, net of refinancing costs | 4,569 | 2,613 | |||||
Interest income and other, net | (17 | ) | (18 | ) | |||
Non-cash stock compensation | 402 | 646 | |||||
Depreciation & amortization | 2,411 | 2,839 | |||||
Consolidated EBITDA | 14,009 | 16,045 | |||||
Adjusted For: | |||||||
Withdrawable Trust Income (loss) | 694 | 497 | |||||
Acquisition Expenses | 377 | 8 | |||||
Severance Costs | 483 | 191 | |||||
Other Special Items | 135 | 83 | |||||
Adjusted Consolidated EBITDA | $ | 15,698 | $ | 16,824 | |||
Revenue | $ | 51,323 | $ | 58,087 | |||
Adjusted Consolidated EBITDA Margin | 30.6 | % | 29.0 | % |
Three months ended March 31, | |||||||
2012 | 2013 | ||||||
GAAP basic earnings per share from continuing operations | $ | 0.22 | $ | 0.31 | |||
Special items affecting net income | $ | 0.06 | $ | 0.03 | |||
Adjusted basic earnings per share | $ | 0.28 | $ | 0.34 |
Three months ended March 31, | |||||||
2012 | 2013 | ||||||
GAAP diluted earnings per share from continuing operations | $ | 0.22 | $ | 0.27 | |||
Special items affecting net income | $ | 0.05 | $ | 0.05 | |||
Adjusted diluted earnings per share | $ | 0.27 | $ | 0.32 |
December 31, | March 31, | ||||||
2012 | 2013 | ||||||
Selected Balance Sheet Data: | |||||||
Cash and short-term investments | $ | 1,698 | $ | 1,290 | |||
Total Senior Debt (a) | 178,772 | 174,290 | |||||
Senior Debt to total capitalization | 44.3 | % | 43.2 | % | |||
Senior Debt to EBITDA (rolling 12 mos.) | 3.5 | 3.3 | |||||
Senior Debt to Adjusted Consolidated EBITDA (rolling 12 mos.) | 3.3 | 3.1 |
Funeral Field EBITDA | Three months ended March 31, | ||||||
2012 | 2013 | ||||||
Gross Profit (GAAP) | $ | 13,865 | $ | 14,579 | |||
Depreciation & amortization | 1,438 | 1,616 | |||||
Regional & unallocated costs | 1,773 | 2,540 | |||||
Net financial income | (1,773 | ) | (1,818 | ) | |||
Funeral Field EBITDA | $ | 15,303 | $ | 16,917 | |||
Funeral Field Operating Revenue | $ | 37,911 | $ | 42,926 | |||
Funeral Field EBITDA Margin | 40.4 | % | 39.4 | % |
Cemetery Field EBITDA | Three months ended March 31, | ||||||
2012 | 2013 | ||||||
Gross Profit (GAAP) | $ | 2,826 | $ | 4,098 | |||
Depreciation & amortization | 720 | 880 | |||||
Regional & unallocated costs | 560 | 724 | |||||
Net financial income | (1,885 | ) | (2,674 | ) | |||
Cemetery Field EBITDA | $ | 2,221 | $ | 3,028 | |||
Cemetery Field Operating Revenue | $ | 9,403 | $ | 10,209 | |||
Cemetery Field EBITDA Margin | 23.6 | % | 29.7 | % |
Rolling Four Quarter Outlook | ||||||
March 31, 2014E | ||||||
Net income from continuing operations | $ | 19,700 | ||||
Provision for income taxes | 12,800 | |||||
Pre-tax earnings from continuing operations | 32,500 | |||||
Net interest expense, including loan cost amortization | 13,200 | |||||
Depreciation & amortization, including stock compensation | 13,300 | |||||
Consolidated EBITDA | $ | 59,000 |
Rolling Four Quarter Outlook | ||||||
March 31, 2014E | ||||||
Cash flow from operations | $ | 35,000 | ||||
Maintenance Capital Expenditures | (4,000 | ) | ||||
Free Cash Flow | $ | 31,000 |
• | Adjusted Net Income is defined as net income from continuing operations plus adjustments for special items and other non-recurring expenses or credits. |
• | Consolidated EBITDA is defined as net income from continuing operations before income taxes, interest expenses, non-cash stock compensation, depreciation and amortization, and interest income and other, net. |
• | Adjusted Consolidated EBITDA as Consolidated EBITDA plus adjustments for special items and non-recurring expenses or credits. |
• | Free Cash Flow as net cash provided by continuing operations less cash for maintenance capital expenditures. |
• | Funeral Field EBITDA is defined as Funeral Gross Profit less depreciation and amortization, regional and unallocated overhead expenses and net financial income. |
• | Cemetery Field EBITDA is defined as Cemetery Gross Profit less depreciation and amortization, regional and unallocated overhead expenses and net financial income. |
• | Total Field EBITDA is defined as Gross Profit less depreciation and amortization, regional and unallocated overhead expenses. |
• | Special Items is defined as charges or credits that are non-GAAP but are non-recurring such as withdrawable trust income, acquisition expenses, litigation settlements, prior period adjustments, discrete tax items and other non-recurring adjustments. |
• | Adjusted Basic Earnings Per Share is defined as adjusted net income divided by basic shares outstanding. |
• | Adjusted Diluted Earnings Per Share is defined as Adjusted Net Income after factoring in the effect of any restricted stock, stock options or the effect of any dilution from convertible debt. |
• | the execution of our Standards Operating Model; |
• | changes in the number of deaths in our markets; |
• | changes in consumer preferences; |
• | ability to find and retain skilled personnel; |
• | the effects of competition; |
• | 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; |
• | our ability to generate preneed sales; |
• | 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; and |
• | other factors and uncertainties inherent in the deathcare industry. |