csv-20240630000101628112/312024Q2falseP3YP1YP9Y333.003.503.004.253.504.25xbrli:sharesiso4217:USDiso4217:USDxbrli:sharescsv:segmentxbrli:purecsv:funeral_homecsv:statecsv:cemeteriescsv:divestiturecsv:cemetarycsv:crematory00010162812024-01-012024-06-3000010162812024-07-2600010162812024-06-3000010162812023-12-310001016281csv:ServiceRevenueMember2024-04-012024-06-300001016281csv:ServiceRevenueMember2023-04-012023-06-300001016281csv:ServiceRevenueMember2024-01-012024-06-300001016281csv:ServiceRevenueMember2023-01-012023-06-300001016281csv:PropertyandMerchandiseMember2024-04-012024-06-300001016281csv:PropertyandMerchandiseMember2023-04-012023-06-300001016281csv:PropertyandMerchandiseMember2024-01-012024-06-300001016281csv:PropertyandMerchandiseMember2023-01-012023-06-300001016281csv:OtherRevenueMember2024-04-012024-06-300001016281csv:OtherRevenueMember2023-04-012023-06-300001016281csv:OtherRevenueMember2024-01-012024-06-300001016281csv:OtherRevenueMember2023-01-012023-06-3000010162812024-04-012024-06-3000010162812023-04-012023-06-3000010162812023-01-012023-06-3000010162812022-12-3100010162812023-06-300001016281us-gaap:CommonStockMember2024-03-310001016281us-gaap:AdditionalPaidInCapitalMember2024-03-310001016281us-gaap:RetainedEarningsMember2024-03-310001016281us-gaap:TreasuryStockCommonMember2024-03-3100010162812024-03-310001016281us-gaap:RetainedEarningsMember2024-04-012024-06-300001016281us-gaap:CommonStockMember2024-04-012024-06-300001016281us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-300001016281us-gaap:CommonStockMembersrt:DirectorMember2024-04-012024-06-300001016281us-gaap:AdditionalPaidInCapitalMembersrt:DirectorMember2024-04-012024-06-300001016281srt:DirectorMember2024-04-012024-06-300001016281us-gaap:CommonStockMember2024-06-300001016281us-gaap:AdditionalPaidInCapitalMember2024-06-300001016281us-gaap:RetainedEarningsMember2024-06-300001016281us-gaap:TreasuryStockCommonMember2024-06-300001016281us-gaap:CommonStockMember2023-03-310001016281us-gaap:AdditionalPaidInCapitalMember2023-03-310001016281us-gaap:RetainedEarningsMember2023-03-310001016281us-gaap:TreasuryStockCommonMember2023-03-3100010162812023-03-310001016281us-gaap:RetainedEarningsMember2023-04-012023-06-300001016281us-gaap:CommonStockMember2023-04-012023-06-300001016281us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001016281us-gaap:CommonStockMembersrt:DirectorMember2023-04-012023-06-300001016281us-gaap:AdditionalPaidInCapitalMembersrt:DirectorMember2023-04-012023-06-300001016281srt:DirectorMember2023-04-012023-06-300001016281us-gaap:CommonStockMember2023-06-300001016281us-gaap:AdditionalPaidInCapitalMember2023-06-300001016281us-gaap:RetainedEarningsMember2023-06-300001016281us-gaap:TreasuryStockCommonMember2023-06-300001016281us-gaap:CommonStockMember2023-12-310001016281us-gaap:AdditionalPaidInCapitalMember2023-12-310001016281us-gaap:RetainedEarningsMember2023-12-310001016281us-gaap:TreasuryStockCommonMember2023-12-310001016281us-gaap:RetainedEarningsMember2024-01-012024-06-300001016281us-gaap:CommonStockMember2024-01-012024-06-300001016281us-gaap:AdditionalPaidInCapitalMember2024-01-012024-06-300001016281us-gaap:CommonStockMembersrt:DirectorMember2024-01-012024-06-300001016281us-gaap:AdditionalPaidInCapitalMembersrt:DirectorMember2024-01-012024-06-300001016281srt:DirectorMember2024-01-012024-06-300001016281us-gaap:CommonStockMembercsv:FormerDirectorMember2024-01-012024-06-300001016281us-gaap:AdditionalPaidInCapitalMembercsv:FormerDirectorMember2024-01-012024-06-300001016281csv:FormerDirectorMember2024-01-012024-06-300001016281us-gaap:CommonStockMember2022-12-310001016281us-gaap:AdditionalPaidInCapitalMember2022-12-310001016281us-gaap:RetainedEarningsMember2022-12-310001016281us-gaap:TreasuryStockCommonMember2022-12-310001016281us-gaap:RetainedEarningsMember2023-01-012023-06-300001016281us-gaap:CommonStockMember2023-01-012023-06-300001016281us-gaap:AdditionalPaidInCapitalMember2023-01-012023-06-300001016281us-gaap:CommonStockMembersrt:DirectorMember2023-01-012023-06-300001016281us-gaap:AdditionalPaidInCapitalMembersrt:DirectorMember2023-01-012023-06-300001016281srt:DirectorMember2023-01-012023-06-300001016281us-gaap:SalesRevenueNetMembercsv:FuneralHomeMemberus-gaap:ProductConcentrationRiskMember2024-01-012024-06-300001016281us-gaap:SalesRevenueNetMembercsv:CemeteryMemberus-gaap:ProductConcentrationRiskMember2024-01-012024-06-300001016281csv:FuneralHomesMember2024-06-300001016281csv:CemeteriesMember2024-06-300001016281us-gaap:LandMember2024-06-300001016281us-gaap:LandMember2023-12-310001016281us-gaap:BuildingAndBuildingImprovementsMember2024-06-300001016281us-gaap:BuildingAndBuildingImprovementsMember2023-12-310001016281csv:FurnitureEquipmentAndAutomobilesMember2024-06-300001016281csv:FurnitureEquipmentAndAutomobilesMember2023-12-310001016281csv:FuneralHomesMember2024-01-012024-06-300001016281csv:FuneralHomeMember2024-06-300001016281csv:CemeteriesMember2024-01-012024-06-300001016281csv:BakersfieldCaliforniaMember2023-03-220001016281csv:BakersfieldCaliforniaMember2023-03-222023-03-220001016281csv:BakersfieldCaliforniaMember2023-03-232023-06-300001016281csv:BakersfieldCaliforniaMember2024-06-3000010162812023-03-232023-06-300001016281csv:BakersfieldCaliforniaMember2023-06-302023-06-300001016281us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMembercsv:BakersfieldCaliforniaMember2023-03-2200010162812023-01-012023-12-310001016281csv:FuneralHomeMember2024-01-012024-06-300001016281csv:CemeteryMember2024-01-012024-06-300001016281csv:CemeteryMember2023-01-012023-06-300001016281csv:FuneralHomeMember2023-01-012023-06-300001016281csv:FuneralHomeMember2024-04-012024-06-300001016281csv:FuneralHomeMember2023-04-012023-06-300001016281csv:CemeteryMember2024-06-300001016281us-gaap:CorporateMember2024-06-300001016281csv:FuneralHomeMember2023-12-310001016281csv:CemeteryMember2023-12-310001016281us-gaap:CorporateMember2023-12-310001016281csv:CemeteryIntermentRightsMember2024-06-300001016281csv:CemeteryIntermentRightsMember2023-12-310001016281csv:CemeteryMerchandiseandServicesMember2024-06-300001016281csv:CemeteryMerchandiseandServicesMember2023-12-310001016281csv:PreneedCemeteryReceivablesMember2023-12-310001016281csv:PreneedCemeteryReceivablesMember2024-01-012024-06-300001016281csv:PreneedCemeteryReceivablesMember2024-06-300001016281csv:RecognizedRevenueMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2024-06-300001016281csv:RecognizedRevenueMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2024-06-300001016281csv:RecognizedRevenueMembercsv:FinancingReceivables90to120DaysPastDueMember2024-06-300001016281csv:RecognizedRevenueMembercsv:FinancingReceivablesGreaterThan120DaysPastDueMember2024-06-300001016281us-gaap:FinancialAssetPastDueMembercsv:RecognizedRevenueMember2024-06-300001016281us-gaap:FinancialAssetNotPastDueMembercsv:RecognizedRevenueMember2024-06-300001016281csv:RecognizedRevenueMember2024-06-300001016281us-gaap:FinancingReceivables30To59DaysPastDueMembercsv:DeferredRevenueMember2024-06-300001016281us-gaap:FinancingReceivables60To89DaysPastDueMembercsv:DeferredRevenueMember2024-06-300001016281csv:FinancingReceivables90to120DaysPastDueMembercsv:DeferredRevenueMember2024-06-300001016281csv:FinancingReceivablesGreaterThan120DaysPastDueMembercsv:DeferredRevenueMember2024-06-300001016281us-gaap:FinancialAssetPastDueMembercsv:DeferredRevenueMember2024-06-300001016281us-gaap:FinancialAssetNotPastDueMembercsv:DeferredRevenueMember2024-06-300001016281csv:DeferredRevenueMember2024-06-300001016281us-gaap:FinancingReceivables30To59DaysPastDueMember2024-06-300001016281us-gaap:FinancingReceivables60To89DaysPastDueMember2024-06-300001016281csv:FinancingReceivables90to120DaysPastDueMember2024-06-300001016281csv:FinancingReceivablesGreaterThan120DaysPastDueMember2024-06-300001016281us-gaap:FinancialAssetPastDueMember2024-06-300001016281us-gaap:FinancialAssetNotPastDueMember2024-06-300001016281csv:CreditAgreement2018Memberus-gaap:RevolvingCreditFacilityMember2024-06-300001016281us-gaap:NotesPayableOtherPayablesMembercsv:AcquisitionDebtMember2024-06-300001016281us-gaap:SeniorNotesMember2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMember2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMember2023-12-310001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CashAndCashEquivalentsMember2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:PreferredStockMember2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesMember2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:CommonStockMemberus-gaap:FairValueInputsLevel1Member2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMembercsv:LimitedPartnershipFundMemberus-gaap:FairValueInputsLevel1Member2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMember2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FixedIncomeFundsMember2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMembercsv:AccruedInvestmentIncomeMember2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CashAndCashEquivalentsMember2023-12-310001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2023-12-310001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:PreferredStockMember2023-12-310001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesMember2023-12-310001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:CommonStockMemberus-gaap:FairValueInputsLevel1Member2023-12-310001016281csv:PreneedCemeteryTrustInvestmentsMembercsv:LimitedPartnershipFundMemberus-gaap:FairValueInputsLevel1Member2023-12-310001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMember2023-12-310001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FixedIncomeFundsMember2023-12-310001016281csv:PreneedCemeteryTrustInvestmentsMembercsv:AccruedInvestmentIncomeMember2023-12-310001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMembercsv:ForeignDebtSecuritiesMember2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:CorporateDebtSecuritiesMember2024-06-300001016281csv:PreferredStockSecuritiesMembercsv:PreneedCemeteryTrustInvestmentsMember2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:MortgageBackedSecuritiesMember2024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-12-310001016281csv:PreneedCemeteryTrustInvestmentsMembercsv:ForeignDebtSecuritiesMember2023-12-310001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:CorporateDebtSecuritiesMember2023-12-310001016281csv:PreferredStockSecuritiesMembercsv:PreneedCemeteryTrustInvestmentsMember2023-12-310001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:MortgageBackedSecuritiesMember2023-12-310001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:InterestIncomeMember2023-04-012023-06-300001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:InterestIncomeMember2024-04-012024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:InterestIncomeMember2023-01-012023-06-300001016281csv:PreneedCemeteryTrustInvestmentsMemberus-gaap:InterestIncomeMember2024-01-012024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMember2023-04-012023-06-300001016281csv:PreneedCemeteryTrustInvestmentsMember2024-04-012024-06-300001016281csv:PreneedCemeteryTrustInvestmentsMember2023-01-012023-06-300001016281csv:PreneedCemeteryTrustInvestmentsMember2024-01-012024-06-300001016281csv:PreneedFuneralTrustInvestmentsMember2024-06-300001016281csv:PreneedFuneralTrustInvestmentsMember2023-12-310001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CashAndCashEquivalentsMember2024-06-300001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-06-300001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2024-06-300001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-06-300001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:PreferredStockMember2024-06-300001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:CommonStockMemberus-gaap:FairValueInputsLevel1Member2024-06-300001016281csv:PreneedFuneralTrustInvestmentsMembercsv:LimitedPartnershipFundMemberus-gaap:FairValueInputsLevel1Member2024-06-300001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMember2024-06-300001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-06-300001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherInvestmentsMember2024-06-300001016281csv:PreneedFuneralTrustInvestmentsMembercsv:AccruedInvestmentIncomeMember2024-06-300001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CashAndCashEquivalentsMember2023-12-310001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-12-310001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2023-12-310001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:PreferredStockMember2023-12-310001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:CommonStockMemberus-gaap:FairValueInputsLevel1Member2023-12-310001016281csv:PreneedFuneralTrustInvestmentsMembercsv:LimitedPartnershipFundMemberus-gaap:FairValueInputsLevel1Member2023-12-310001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMember2023-12-310001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherInvestmentsMember2023-12-310001016281csv:PreneedFuneralTrustInvestmentsMembercsv:AccruedInvestmentIncomeMember2023-12-310001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:USTreasurySecuritiesMember2024-06-300001016281csv:PreneedFuneralTrustInvestmentsMembercsv:ForeignDebtSecuritiesMember2024-06-300001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:CorporateDebtSecuritiesMember2024-06-300001016281csv:PreneedFuneralTrustInvestmentsMembercsv:PreferredStockSecuritiesMember2024-06-300001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:USTreasurySecuritiesMember2023-12-310001016281csv:PreneedFuneralTrustInvestmentsMembercsv:ForeignDebtSecuritiesMember2023-12-310001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:CorporateDebtSecuritiesMember2023-12-310001016281csv:PreneedFuneralTrustInvestmentsMembercsv:PreferredStockSecuritiesMember2023-12-310001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:InterestIncomeMember2023-04-012023-06-300001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:InterestIncomeMember2024-04-012024-06-300001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:InterestIncomeMember2023-01-012023-06-300001016281csv:PreneedFuneralTrustInvestmentsMemberus-gaap:InterestIncomeMember2024-01-012024-06-300001016281csv:PreneedFuneralTrustInvestmentsMember2023-04-012023-06-300001016281csv:PreneedFuneralTrustInvestmentsMember2024-04-012024-06-300001016281csv:PreneedFuneralTrustInvestmentsMember2023-01-012023-06-300001016281csv:PreneedFuneralTrustInvestmentsMember2024-01-012024-06-300001016281csv:PerpetualCareTrustInvesmentsMember2023-12-310001016281csv:PerpetualCareTrustInvesmentsMember2024-06-300001016281csv:PerpetualCareTrustInvesmentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CashAndCashEquivalentsMember2024-06-300001016281csv:PerpetualCareTrustInvesmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2024-06-300001016281csv:PerpetualCareTrustInvesmentsMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-06-300001016281csv:PerpetualCareTrustInvesmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:PreferredStockMember2024-06-300001016281csv:PerpetualCareTrustInvesmentsMemberus-gaap:CommonStockMemberus-gaap:FairValueInputsLevel1Member2024-06-300001016281csv:PerpetualCareTrustInvesmentsMembercsv:LimitedPartnershipFundMemberus-gaap:FairValueInputsLevel1Member2024-06-300001016281csv:PerpetualCareTrustInvesmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMember2024-06-300001016281csv:PerpetualCareTrustInvesmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherInvestmentsMember2024-06-300001016281csv:PerpetualCareTrustInvesmentsMembercsv:AccruedInvestmentIncomeMember2024-06-300001016281csv:PerpetualCareTrustInvesmentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CashAndCashEquivalentsMember2023-12-310001016281csv:PerpetualCareTrustInvesmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2023-12-310001016281csv:PerpetualCareTrustInvesmentsMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001016281csv:PerpetualCareTrustInvesmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:PreferredStockMember2023-12-310001016281csv:PerpetualCareTrustInvesmentsMemberus-gaap:CommonStockMemberus-gaap:FairValueInputsLevel1Member2023-12-310001016281csv:PerpetualCareTrustInvesmentsMembercsv:LimitedPartnershipFundMemberus-gaap:FairValueInputsLevel1Member2023-12-310001016281csv:PerpetualCareTrustInvesmentsMemberus-gaap:FixedIncomeSecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001016281csv:PerpetualCareTrustInvesmentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:OtherInvestmentsMember2023-12-310001016281csv:PerpetualCareTrustInvesmentsMembercsv:AccruedInvestmentIncomeMember2023-12-310001016281csv:PerpetualCareTrustInvesmentsMembercsv:ForeignDebtSecuritiesMember2024-06-300001016281csv:PerpetualCareTrustInvesmentsMemberus-gaap:CorporateDebtSecuritiesMember2024-06-300001016281csv:PerpetualCareTrustInvesmentsMembercsv:PreferredStockSecuritiesMember2024-06-300001016281csv:PerpetualCareTrustInvesmentsMembercsv:ForeignDebtSecuritiesMember2023-12-310001016281csv:PerpetualCareTrustInvesmentsMemberus-gaap:CorporateDebtSecuritiesMember2023-12-310001016281csv:PerpetualCareTrustInvesmentsMembercsv:PreferredStockSecuritiesMember2023-12-310001016281csv:PerpetualCareTrustInvesmentsMembercsv:InterestExpenseNetofOtherIncomeMember2023-04-012023-06-300001016281csv:PerpetualCareTrustInvesmentsMembercsv:InterestExpenseNetofOtherIncomeMember2024-04-012024-06-300001016281csv:PerpetualCareTrustInvesmentsMembercsv:InterestExpenseNetofOtherIncomeMember2023-01-012023-06-300001016281csv:PerpetualCareTrustInvesmentsMembercsv:InterestExpenseNetofOtherIncomeMember2024-01-012024-06-300001016281csv:PerpetualCareTrustInvesmentsMember2023-04-012023-06-300001016281csv:PerpetualCareTrustInvesmentsMember2024-04-012024-06-300001016281csv:PerpetualCareTrustInvesmentsMember2023-01-012023-06-300001016281csv:PerpetualCareTrustInvesmentsMember2024-01-012024-06-300001016281csv:PerpetualCareTrustInvesmentsMembercsv:OtherRevenueMember2023-04-012023-06-300001016281csv:PerpetualCareTrustInvesmentsMembercsv:OtherRevenueMember2024-04-012024-06-300001016281csv:PerpetualCareTrustInvesmentsMembercsv:OtherRevenueMember2023-01-012023-06-300001016281csv:PerpetualCareTrustInvesmentsMembercsv:OtherRevenueMember2024-01-012024-06-300001016281us-gaap:CashAndCashEquivalentsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001016281us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:CashAndCashEquivalentsMember2024-06-300001016281us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FixedIncomeInvestmentsMember2024-06-300001016281us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FixedIncomeInvestmentsMember2024-06-300001016281csv:MutualFundsAndCommonStocksMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001016281us-gaap:EstimateOfFairValueFairValueDisclosureMembercsv:MutualFundsAndCommonStocksMember2024-06-300001016281csv:AnnuitiesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001016281csv:AnnuitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-06-300001016281us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001016281us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-06-300001016281us-gaap:CashAndCashEquivalentsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001016281us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:CashAndCashEquivalentsMember2023-12-310001016281us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FixedIncomeInvestmentsMember2023-12-310001016281us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FixedIncomeInvestmentsMember2023-12-310001016281csv:MutualFundsAndCommonStocksMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001016281us-gaap:EstimateOfFairValueFairValueDisclosureMembercsv:MutualFundsAndCommonStocksMember2023-12-310001016281csv:AnnuitiesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001016281csv:AnnuitiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001016281us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001016281us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001016281us-gaap:TradeNamesMember2024-06-300001016281us-gaap:TradeNamesMember2023-12-310001016281csv:CommissionsMember2024-06-300001016281csv:CommissionsMember2023-12-310001016281us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2023-12-310001016281us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2024-06-300001016281us-gaap:NoncompeteAgreementsMember2023-12-310001016281us-gaap:NoncompeteAgreementsMember2024-06-300001016281us-gaap:DisposalGroupNotDiscontinuedOperationsMemberus-gaap:TradeNamesMember2024-06-300001016281srt:MaximumMember2024-01-012024-06-300001016281srt:MinimumMember2024-01-012024-06-300001016281srt:MinimumMemberus-gaap:SoftwareAndSoftwareDevelopmentCostsMember2024-06-300001016281us-gaap:SoftwareAndSoftwareDevelopmentCostsMembersrt:MaximumMember2024-06-300001016281us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2024-04-012024-06-300001016281us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2024-01-012024-06-300001016281us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2023-01-012023-06-300001016281us-gaap:NoncompeteAgreementsMembersrt:MinimumMember2024-01-012024-06-300001016281us-gaap:NoncompeteAgreementsMembersrt:MaximumMember2024-01-012024-06-300001016281us-gaap:NoncompeteAgreementsMember2024-04-012024-06-300001016281us-gaap:NoncompeteAgreementsMember2024-01-012024-06-300001016281us-gaap:NoncompeteAgreementsMember2023-01-012023-06-300001016281csv:TermLoanMember2024-06-300001016281us-gaap:LetterOfCreditMember2024-06-300001016281csv:SwinglineMember2024-06-300001016281csv:RatioActualMember2024-06-300001016281csv:RatioActualMembercsv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2024-06-300001016281csv:CreditAgreement2018Memberus-gaap:RevolvingCreditFacilityMember2023-12-310001016281us-gaap:RevolvingCreditFacilityMembercsv:CreditAgreementMember2024-06-300001016281csv:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2023-12-310001016281csv:TermLoanMembercsv:CreditAgreementMember2024-06-300001016281csv:TermLoanMembercsv:CreditAgreementMember2023-12-310001016281us-gaap:NotesPayableOtherPayablesMembercsv:AcquisitionDebtDeferredPurchasePriceMember2024-06-300001016281us-gaap:NotesPayableOtherPayablesMembercsv:AcquisitionDebtDeferredPurchasePriceMember2023-12-3100010162812023-07-072023-07-070001016281csv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2024-06-300001016281csv:CreditAgreementMember2024-04-012024-06-300001016281csv:CreditAgreementMember2023-04-012023-06-300001016281csv:CreditAgreementMember2024-01-012024-06-300001016281csv:CreditAgreementMember2023-01-012023-06-300001016281us-gaap:LineOfCreditMember2024-04-012024-06-300001016281us-gaap:LineOfCreditMember2023-04-012023-06-300001016281csv:CreditAgreement2018Memberus-gaap:RevolvingCreditFacilityMember2024-01-012024-06-300001016281csv:CreditAgreement2018Memberus-gaap:RevolvingCreditFacilityMember2023-01-012023-06-300001016281us-gaap:LineOfCreditMembercsv:PrimeRateOptionMember2024-01-012024-06-300001016281us-gaap:LineOfCreditMembercsv:LiborMarginOptionMember2024-01-012024-06-300001016281csv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:RevolvingCreditFacilityMembercsv:CreditAgreementMember2024-04-012024-06-300001016281csv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:RevolvingCreditFacilityMembercsv:CreditAgreementMember2023-04-012023-06-300001016281csv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:RevolvingCreditFacilityMembercsv:CreditAgreementMember2024-01-012024-06-300001016281csv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:RevolvingCreditFacilityMembercsv:CreditAgreementMember2023-01-012023-06-300001016281csv:DeferredPurchasePriceNotesMembersrt:MinimumMember2024-06-300001016281csv:DeferredPurchasePriceNotesMembersrt:MaximumMember2024-06-300001016281csv:DeferredPurchasePriceNotesMembersrt:MinimumMember2024-04-012024-06-300001016281csv:DeferredPurchasePriceNotesMembersrt:MaximumMember2024-04-012024-06-300001016281us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2024-04-012024-06-300001016281us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2023-04-012023-06-300001016281us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2024-01-012024-06-300001016281us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2023-01-012023-06-300001016281csv:SeniorNotes425Membercsv:SeniorNoteTwoMember2024-06-300001016281us-gaap:SeniorNotesMember2023-12-310001016281us-gaap:SeniorNotesMember2024-04-012024-06-300001016281us-gaap:SeniorNotesMember2023-04-012023-06-300001016281us-gaap:SeniorNotesMember2024-01-012024-06-300001016281us-gaap:SeniorNotesMember2023-01-012023-06-300001016281csv:SeniorNotes425Member2024-01-012024-06-300001016281us-gaap:SeniorNotesMembercsv:SeniorNoteOneMember2024-01-012024-06-300001016281us-gaap:SeniorNotesMembercsv:SeniorNoteTwoMember2024-01-012024-06-300001016281us-gaap:RestrictedStockUnitsRSUMember2024-04-012024-06-300001016281us-gaap:RestrictedStockUnitsRSUMember2023-04-012023-06-300001016281us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-06-300001016281us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-06-300001016281us-gaap:RestrictedStockMember2024-04-012024-06-300001016281us-gaap:RestrictedStockMember2023-04-012023-06-300001016281us-gaap:RestrictedStockMember2024-01-012024-06-300001016281us-gaap:RestrictedStockMember2023-01-012023-06-300001016281csv:BlackScholesMembercsv:FiveYearVestingPeriodMemberus-gaap:EmployeeStockOptionMember2024-04-012024-06-300001016281csv:BlackScholesMembercsv:FiveYearVestingPeriodMemberus-gaap:EmployeeStockOptionMember2023-04-012023-06-300001016281csv:BlackScholesMemberus-gaap:EmployeeStockOptionMember2024-01-012024-06-300001016281csv:BlackScholesMemberus-gaap:EmployeeStockOptionMember2023-01-012023-06-300001016281csv:BlackScholesMemberus-gaap:EmployeeStockOptionMember2024-04-012024-06-300001016281csv:BlackScholesMemberus-gaap:EmployeeStockOptionMember2023-04-012023-06-300001016281csv:MonteCarloPricingModelMemberus-gaap:EmployeeStockOptionMember2024-01-012024-06-300001016281us-gaap:EmployeeStockOptionMember2024-01-012024-06-300001016281us-gaap:EmployeeStockOptionMember2024-04-012024-06-300001016281us-gaap:EmployeeStockOptionMember2023-04-012023-06-300001016281us-gaap:EmployeeStockOptionMember2023-01-012023-06-300001016281us-gaap:PerformanceSharesMember2024-04-012024-06-300001016281us-gaap:PerformanceSharesMember2023-04-012023-06-300001016281us-gaap:PerformanceSharesMember2024-01-012024-06-300001016281us-gaap:PerformanceSharesMember2023-01-012023-06-300001016281csv:OfficersAndKeyEmployeesMember2024-04-012024-06-300001016281csv:OfficersAndKeyEmployeesMember2023-04-012023-06-300001016281csv:OfficersAndKeyEmployeesMember2024-01-012024-06-300001016281csv:OfficersAndKeyEmployeesMember2023-01-012023-06-300001016281csv:EmployeeStockPurchasePlanMember2024-01-012024-06-300001016281csv:EmployeeStockPurchasePlanMember2023-10-012023-12-310001016281csv:EmployeeStockPurchasePlanMember2024-01-012024-03-310001016281csv:EmployeeStockPurchasePlanMember2024-04-012024-06-300001016281srt:ScenarioForecastMembercsv:EmployeeStockPurchasePlanMember2024-07-012024-09-300001016281csv:EmployeeStockPurchasePlanMember2023-04-012023-06-300001016281csv:EmployeeStockPurchasePlanMember2023-01-012023-06-300001016281us-gaap:CommonStockMember2024-04-012024-06-300001016281us-gaap:CommonStockMember2023-04-012023-06-300001016281us-gaap:CommonStockMember2024-01-012024-06-300001016281us-gaap:CommonStockMember2023-01-012023-06-300001016281csv:GoodToGreatAwardsMember2024-04-012024-06-300001016281csv:GoodToGreatAwardsMember2023-04-012023-06-300001016281csv:GoodToGreatAwardsMember2024-01-012024-06-300001016281csv:GoodToGreatAwardsMember2023-01-012023-06-300001016281csv:GoodToGreatAwardsMember2022-02-192022-02-190001016281csv:GoodToGreatAwardsMember2021-04-162021-04-160001016281srt:DirectorMember2024-04-022024-04-020001016281csv:ChairmanOfAuditCommitteeMember2024-04-022024-04-020001016281csv:LeadDirectorMember2024-04-022024-04-020001016281csv:ChairmanOfCompensationCommiteeMember2024-04-022024-04-020001016281csv:ChairmanOfCorporateGovernanceMember2024-04-022024-04-020001016281csv:AdvsiorMember2024-04-012024-06-300001016281csv:AdvsiorMember2023-04-012023-06-300001016281csv:AdvsiorMember2024-01-012024-06-300001016281csv:AdvsiorMember2023-01-012023-06-3000010162812024-03-012024-03-0100010162812024-06-012024-06-0100010162812023-03-012023-03-0100010162812023-06-012023-06-010001016281us-gaap:EmployeeStockOptionMember2024-04-012024-06-300001016281us-gaap:EmployeeStockOptionMember2023-04-012023-06-300001016281us-gaap:EmployeeStockOptionMember2024-01-012024-06-300001016281us-gaap:EmployeeStockOptionMember2023-01-012023-06-300001016281us-gaap:PerformanceSharesMember2024-04-012024-06-300001016281us-gaap:PerformanceSharesMember2023-04-012023-06-300001016281us-gaap:PerformanceSharesMember2024-01-012024-06-300001016281us-gaap:PerformanceSharesMember2023-01-012023-06-300001016281csv:FuneralHomeMembercsv:FuneralAndCemeteryServicesMember2024-04-012024-06-300001016281csv:CemeteryMembercsv:FuneralAndCemeteryServicesMember2024-04-012024-06-300001016281csv:FuneralAndCemeteryServicesMember2024-04-012024-06-300001016281csv:MerchandiseMembercsv:FuneralHomeMember2024-04-012024-06-300001016281csv:MerchandiseMembercsv:CemeteryMember2024-04-012024-06-300001016281csv:MerchandiseMember2024-04-012024-06-300001016281csv:CemeteryIntermentRightsMembercsv:FuneralHomeMember2024-04-012024-06-300001016281csv:CemeteryIntermentRightsMembercsv:CemeteryMember2024-04-012024-06-300001016281csv:CemeteryIntermentRightsMember2024-04-012024-06-300001016281csv:FuneralHomeMembercsv:OtherRevenueMember2024-04-012024-06-300001016281csv:CemeteryMembercsv:OtherRevenueMember2024-04-012024-06-300001016281csv:CemeteryMember2024-04-012024-06-300001016281csv:FuneralHomeMembercsv:FuneralAndCemeteryServicesMember2023-04-012023-06-300001016281csv:CemeteryMembercsv:FuneralAndCemeteryServicesMember2023-04-012023-06-300001016281csv:FuneralAndCemeteryServicesMember2023-04-012023-06-300001016281csv:MerchandiseMembercsv:FuneralHomeMember2023-04-012023-06-300001016281csv:MerchandiseMembercsv:CemeteryMember2023-04-012023-06-300001016281csv:MerchandiseMember2023-04-012023-06-300001016281csv:CemeteryIntermentRightsMembercsv:FuneralHomeMember2023-04-012023-06-300001016281csv:CemeteryIntermentRightsMembercsv:CemeteryMember2023-04-012023-06-300001016281csv:CemeteryIntermentRightsMember2023-04-012023-06-300001016281csv:FuneralHomeMembercsv:OtherRevenueMember2023-04-012023-06-300001016281csv:CemeteryMembercsv:OtherRevenueMember2023-04-012023-06-300001016281csv:CemeteryMember2023-04-012023-06-300001016281csv:FuneralHomeMembercsv:FuneralAndCemeteryServicesMember2024-01-012024-06-300001016281csv:CemeteryMembercsv:FuneralAndCemeteryServicesMember2024-01-012024-06-300001016281csv:FuneralAndCemeteryServicesMember2024-01-012024-06-300001016281csv:MerchandiseMembercsv:FuneralHomeMember2024-01-012024-06-300001016281csv:MerchandiseMembercsv:CemeteryMember2024-01-012024-06-300001016281csv:MerchandiseMember2024-01-012024-06-300001016281csv:CemeteryIntermentRightsMembercsv:FuneralHomeMember2024-01-012024-06-300001016281csv:CemeteryIntermentRightsMembercsv:CemeteryMember2024-01-012024-06-300001016281csv:CemeteryIntermentRightsMember2024-01-012024-06-300001016281csv:FuneralHomeMembercsv:OtherRevenueMember2024-01-012024-06-300001016281csv:CemeteryMembercsv:OtherRevenueMember2024-01-012024-06-300001016281csv:FuneralHomeMembercsv:FuneralAndCemeteryServicesMember2023-01-012023-06-300001016281csv:CemeteryMembercsv:FuneralAndCemeteryServicesMember2023-01-012023-06-300001016281csv:FuneralAndCemeteryServicesMember2023-01-012023-06-300001016281csv:MerchandiseMembercsv:FuneralHomeMember2023-01-012023-06-300001016281csv:MerchandiseMembercsv:CemeteryMember2023-01-012023-06-300001016281csv:MerchandiseMember2023-01-012023-06-300001016281csv:CemeteryIntermentRightsMembercsv:FuneralHomeMember2023-01-012023-06-300001016281csv:CemeteryIntermentRightsMembercsv:CemeteryMember2023-01-012023-06-300001016281csv:CemeteryIntermentRightsMember2023-01-012023-06-300001016281csv:FuneralHomeMembercsv:OtherRevenueMember2023-01-012023-06-300001016281csv:CemeteryMembercsv:OtherRevenueMember2023-01-012023-06-300001016281us-gaap:CorporateMember2024-04-012024-06-300001016281us-gaap:CorporateMember2023-04-012023-06-300001016281us-gaap:CorporateMember2024-01-012024-06-300001016281us-gaap:CorporateMember2023-01-012023-06-300001016281us-gaap:DomesticCountryMember2024-06-300001016281us-gaap:DomesticCountryMember2023-12-310001016281us-gaap:StateAndLocalJurisdictionMember2024-06-300001016281us-gaap:StateAndLocalJurisdictionMember2023-12-310001016281us-gaap:SubsequentEventMembercsv:LevelOneMembercsv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:LineOfCreditMembercsv:TermSOFRLetterOfCreditFeesMember2024-07-312024-07-310001016281us-gaap:BaseRateMemberus-gaap:SubsequentEventMembercsv:LevelOneMembercsv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:LineOfCreditMember2024-07-310001016281us-gaap:SubsequentEventMembercsv:RevolvingCreditFacilitySecuredFloatingRateMembercsv:LevelTwoMemberus-gaap:LineOfCreditMembercsv:TermSOFRLetterOfCreditFeesMember2024-07-312024-07-310001016281us-gaap:BaseRateMemberus-gaap:SubsequentEventMembercsv:RevolvingCreditFacilitySecuredFloatingRateMembercsv:LevelTwoMemberus-gaap:LineOfCreditMember2024-07-310001016281us-gaap:SubsequentEventMembercsv:LevelThreeMembercsv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:LineOfCreditMembercsv:TermSOFRLetterOfCreditFeesMember2024-07-312024-07-310001016281us-gaap:BaseRateMemberus-gaap:SubsequentEventMembercsv:LevelThreeMembercsv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:LineOfCreditMember2024-07-310001016281us-gaap:SubsequentEventMembercsv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:LineOfCreditMembercsv:LevelFourMembercsv:TermSOFRLetterOfCreditFeesMember2024-07-312024-07-310001016281us-gaap:BaseRateMemberus-gaap:SubsequentEventMembercsv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:LineOfCreditMembercsv:LevelFourMember2024-07-310001016281us-gaap:SubsequentEventMembercsv:CreditAgreement2018Memberus-gaap:RevolvingCreditFacilityMember2024-07-310001016281us-gaap:SubsequentEventMembercsv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2024-07-310001016281us-gaap:SubsequentEventMembercsv:LevelOneMembercsv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:LineOfCreditMember2024-07-310001016281us-gaap:SubsequentEventMembercsv:RevolvingCreditFacilitySecuredFloatingRateMembercsv:LevelTwoMemberus-gaap:LineOfCreditMembersrt:MaximumMember2024-07-310001016281us-gaap:SubsequentEventMembersrt:MinimumMembercsv:RevolvingCreditFacilitySecuredFloatingRateMembercsv:LevelTwoMemberus-gaap:LineOfCreditMember2024-07-310001016281us-gaap:SubsequentEventMembercsv:LevelThreeMembercsv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:LineOfCreditMembersrt:MaximumMember2024-07-310001016281us-gaap:SubsequentEventMembercsv:LevelThreeMembersrt:MinimumMembercsv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:LineOfCreditMember2024-07-310001016281us-gaap:SubsequentEventMembercsv:RevolvingCreditFacilitySecuredFloatingRateMemberus-gaap:LineOfCreditMembercsv:LevelFourMember2024-07-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to ____________
| | | | | |
Commission File Number: | 1-11961 |
CARRIAGE SERVICES, INC.
(Exact name of registrant as specified in its charter)
| | | | | |
Delaware | 76-0423828 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| |
3040 Post Oak Boulevard, Suite 300
Houston, Texas, 77056
(Address of principal executive offices)
(713) 332-8400
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | |
Title of each class | Trading Symbol | Name of each exchange on which registered |
Common Stock, par value $.01 per share | CSV | New York Stock Exchange |
| | |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Securities Exchange Act of 1934.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Large accelerated filer | ☐ | | | | | | | Accelerated filer | ☒ |
Non-accelerated filer | ☐ | | | | | | | Smaller reporting company | ☐ |
| | | | | | | | Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The number of shares of the registrant’s Common Stock, $.01 par value per share, outstanding as of July 26, 2024 was 15,208,587.
CARRIAGE SERVICES, INC.
INDEX
| | | | | |
| Page |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | |
| |
Item 3. Defaults Upon Senior Securities | |
| |
Item 4. Mine Safety Disclosures | |
| |
Item 5. Other Information | |
| |
| |
| |
| |
| |
| |
PART I – FINANCIAL INFORMATION
Item 1.Financial Statements.
CARRIAGE SERVICES, INC.
CONSOLIDATED BALANCE SHEET
(unaudited and in thousands, except share data)
| | | | | | | | | | | |
| June 30, 2024 | | December 31, 2023 |
ASSETS | | | |
Current assets: | | | |
Cash and cash equivalents | $ | 1,503 | | | $ | 1,523 | |
Accounts receivable, net | 29,398 | | | 27,060 | |
Inventories | 8,257 | | | 8,347 | |
Prepaid and other current assets | 3,965 | | | 4,791 | |
Total current assets | 43,123 | | | 41,721 | |
Preneed cemetery trust investments | 100,285 | | | 96,374 | |
Preneed funeral trust investments | 109,701 | | | 107,842 | |
Preneed cemetery receivables, net | 45,569 | | | 35,575 | |
Receivables from preneed funeral trusts, net | 22,074 | | | 21,530 | |
Property, plant and equipment, net | 280,355 | | | 287,484 | |
Cemetery property, net | 113,327 | | | 114,580 | |
Goodwill | 414,895 | | | 423,643 | |
Intangible and other non-current assets, net | 39,099 | | | 37,677 | |
Operating lease right-of-use assets | 16,058 | | | 16,295 | |
Cemetery perpetual care trust investments | 84,780 | | | 85,331 | |
Total assets | $ | 1,269,266 | | | $ | 1,268,052 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | |
Current liabilities: | | | |
Current portion of debt and lease obligations | $ | 3,924 | | | $ | 3,842 | |
Accounts payable | 16,180 | | | 11,866 | |
Accrued and other liabilities | 30,655 | | | 35,362 | |
| | | |
Total current liabilities | 50,759 | | | 51,070 | |
Acquisition debt, net of current portion | 5,388 | | | 5,461 | |
Credit facility | 153,970 | | | 177,794 | |
| | | |
Senior notes | 396,247 | | | 395,905 | |
Obligations under finance leases, net of current portion | 5,304 | | | 5,831 | |
Obligations under operating leases, net of current portion | 15,263 | | | 15,797 | |
Deferred preneed cemetery revenue | 65,375 | | | 61,048 | |
Deferred preneed funeral revenue | 40,386 | | | 39,537 | |
Deferred tax liability | 50,650 | | | 52,127 | |
Other long-term liabilities | 1,857 | | | 1,855 | |
Deferred preneed cemetery receipts held in trust | 100,285 | | | 96,374 | |
Deferred preneed funeral receipts held in trust | 109,701 | | | 107,842 | |
Care trusts’ corpus | 86,194 | | | 84,351 | |
Total liabilities | 1,081,379 | | | 1,094,992 | |
Commitments and contingencies: | | | |
Stockholders’ equity: | | | |
Common stock, $0.01 par value; 80,000,000 shares authorized and 26,864,187 and 26,627,319 shares issued, respectively and 15,236,369 and 14,999,501 shares outstanding, respectively | 269 | | | 266 | |
Additional paid-in capital | 242,883 | | | 241,291 | |
Retained earnings | 223,488 | | | 210,256 | |
Treasury stock, at cost; 11,627,818 shares | (278,753) | | | (278,753) | |
Total stockholders’ equity | 187,887 | | | 173,060 | |
Total liabilities and stockholders’ equity | $ | 1,269,266 | | | $ | 1,268,052 | |
The accompanying condensed notes are an integral part of these Consolidated Financial Statements.
CARRIAGE SERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three months ended June 30, | | Six months ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
Revenue: | | | | | | | |
Service revenue | $ | 44,433 | | | $ | 44,522 | | | $ | 94,132 | | | $ | 92,729 | |
Property and merchandise revenue | 49,590 | | | 45,630 | | | 95,092 | | | 85,641 | |
Other revenue | 8,295 | | | 7,526 | | | 16,587 | | | 14,822 | |
| 102,318 | | | 97,678 | | | 205,811 | | | 193,192 | |
Field costs and expenses: | | | | | | | |
Cost of service | 21,672 | | | 23,075 | | | 45,380 | | | 46,552 | |
Cost of merchandise | 31,981 | | | 32,219 | | | 63,931 | | | 61,953 | |
Cemetery property amortization | 2,560 | | | 1,892 | | | 4,316 | | | 3,093 | |
Field depreciation expense | 3,405 | | | 3,555 | | | 6,872 | | | 6,912 | |
Regional and unallocated funeral and cemetery costs | 4,245 | | | 4,131 | | | 8,087 | | | 9,568 | |
Other expenses | 1,462 | | | 1,604 | | | 2,970 | | | 2,857 | |
| 65,325 | | | 66,476 | | | 131,556 | | | 130,935 | |
Gross profit | 36,993 | | | 31,202 | | | 74,255 | | | 62,257 | |
Corporate costs and expenses: | | | | | | | |
General, administrative and other | 18,601 | | | 10,199 | | | 34,841 | | | 20,379 | |
| | | | | | | |
Net loss on divestitures, disposals and impairments charges | 23 | | | 265 | | | 1,568 | | | 506 | |
Operating income | 18,369 | | | 20,738 | | | 37,846 | | | 41,372 | |
| | | | | | | |
Interest expense | 8,324 | | | 9,396 | | | 17,036 | | | 17,935 | |
| | | | | | | |
| | | | | | | |
Net (gain) loss on property damage, net of insurance claims | (417) | | | (235) | | | (417) | | | 36 | |
Other, net | 3 | | | (125) | | | 46 | | | (647) | |
Income before income taxes | 10,459 | | | 11,702 | | | 21,181 | | | 24,048 | |
Expense for income taxes | 3,513 | | | 3,273 | | | 7,032 | | | 6,841 | |
Expense related to discrete income tax items | 687 | | | 143 | | | 917 | | | 77 | |
Total expense for income taxes | 4,200 | | | 3,416 | | | 7,949 | | | 6,918 | |
Net income | $ | 6,259 | | | $ | 8,286 | | | $ | 13,232 | | | $ | 17,130 | |
| | | | | | | |
Basic earnings per common share: | $ | 0.41 | | | $ | 0.55 | | | $ | 0.87 | | | $ | 1.14 | |
Diluted earnings per common share: | $ | 0.40 | | | $ | 0.53 | | | $ | 0.85 | | | $ | 1.10 | |
| | | | | | | |
Dividends declared per common share: | $ | 0.1125 | | | $ | 0.1125 | | | $ | 0.2250 | | | $ | 0.2250 | |
| | | | | | | |
Weighted average number of common and common equivalent shares outstanding: | | | | | | | |
Basic | 14,965 | | | 14,793 | | | 14,920 | | | 14,776 | |
Diluted | 15,403 | | | 15,454 | | | 15,356 | | | 15,461 | |
The accompanying condensed notes are an integral part of these Consolidated Financial Statements.
CARRIAGE SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)
| | | | | | | | | | | |
| Six months ended June 30, |
| 2024 | | 2023 |
Cash flows from operating activities: | | | |
Net income | $ | 13,232 | | | $ | 17,130 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | |
Depreciation and amortization | 11,664 | | | 10,437 | |
Provision for credit losses | 1,447 | | | 1,344 | |
Stock-based compensation expense | 2,671 | | | 4,163 | |
Deferred income tax (benefit) expense | (1,477) | | | 7 | |
Amortization of intangibles | 669 | | | 647 | |
Amortization of debt issuance costs | 352 | | | 349 | |
Amortization and accretion of debt | 266 | | | 255 | |
| | | |
| | | |
Net loss on divestitures, disposals and impairment charges | 1,568 | | | 506 | |
(Gain) loss on property damage, net of insurance claims | (417) | | | 36 | |
Gain on sale of excess land | — | | | (658) | |
| | | |
| | | |
Changes in operating assets and liabilities that provided (used) cash: | | | |
Accounts and preneed receivables | (13,939) | | | (1,694) | |
Inventories, prepaid and other current assets | 1,224 | | | 1,011 | |
Intangible and other non-current assets | (2,339) | | | (1,767) | |
Preneed funeral and cemetery trust investments | (9,523) | | | 5,341 | |
Accounts payable | 3,084 | | | (2,272) | |
Accrued and other liabilities | (3,999) | | | (3,328) | |
Incentive payment from vendor | — | | | 6,000 | |
Deferred preneed funeral and cemetery revenue | 7,064 | | | 8,106 | |
Deferred preneed funeral and cemetery receipts held in trust | 10,313 | | | (6,426) | |
Net cash provided by operating activities | 21,860 | | | 39,187 | |
| | | |
Cash flows from investing activities: | | | |
Acquisitions of businesses | — | | | (44,000) | |
| | | |
Proceeds from divestitures and sale of other assets | 11,174 | | | 1,973 | |
Proceeds from insurance claims | 314 | | | 1,092 | |
Capital expenditures | (7,096) | | | (8,960) | |
Net cash provided by (used in) investing activities | 4,392 | | | (49,895) | |
| | | |
Cash flows from financing activities: | | | |
Borrowings from the credit facility | 24,800 | | | 64,700 | |
Payments against the credit facility | (48,900) | | | (51,400) | |
| | | |
| | | |
| | | |
| | | |
| | | |
Payments on acquisition debt and obligations under finance leases | (305) | | | (256) | |
| | | |
Proceeds from the exercise of stock options and employee stock purchase plan contributions | 1,942 | | | 923 | |
Taxes paid on restricted stock vestings and exercise of stock options | (419) | | | (119) | |
Dividends paid on common stock | (3,390) | | | (3,340) | |
| | | |
| | | |
Net cash (used in) provided by financing activities | (26,272) | | | 10,508 | |
| | | |
Net decrease in cash and cash equivalents | (20) | | | (200) | |
Cash and cash equivalents at beginning of period | 1,523 | | | 1,170 | |
Cash and cash equivalents at end of period | $ | 1,503 | | | $ | 970 | |
The accompanying condensed notes are an integral part of these Consolidated Financial Statements.
CARRIAGE SERVICES, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited and in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three months ended June 30, 2024 |
| | | | | | | | | | | |
| Shares Outstanding | | Common Stock | | Additional Paid-in Capital | | Retained Earnings | | Treasury Stock | | Total |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Balance – March 31, 2024 | 15,165 | | | $ | 268 | | | $ | 240,811 | | | $ | 217,229 | | | $ | (278,753) | | | $ | 179,555 | |
Net income | — | | | — | | | — | | | 6,259 | | | — | | | 6,259 | |
Issuance of common stock from employee stock purchase plan | 15 | | | — | | | 324 | | | — | | | — | | | 324 | |
Issuance of common stock to directors and board advisor | 6 | | | — | | | 151 | | | — | | | — | | | 151 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Exercise of stock options | 50 | | | 1 | | | 1,271 | | | — | | | — | | | 1,272 | |
Cancellation and surrender of restricted common stock | — | | | — | | | (1) | | | — | | | — | | | (1) | |
Stock-based compensation expense | — | | | — | | | 2,031 | | | — | | | — | | | 2,031 | |
Dividends on common stock | — | | | — | | | (1,704) | | | — | | | — | | | (1,704) | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Balance – June 30, 2024 | 15,236 | | | $ | 269 | | | $ | 242,883 | | | $ | 223,488 | | | $ | (278,753) | | | $ | 187,887 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three months ended June 30, 2023 |
| |
| Shares Outstanding | | Common Stock | | Additional Paid-in Capital | | Retained Earnings | | Treasury Stock | | Total |
Balance – March 31, 2023 | 14,935 | | | $ | 266 | | | $ | 239,962 | | | $ | 185,687 | | | $ | (278,753) | | | $ | 147,162 | |
Net income | — | | | — | | | — | | | 8,286 | | | — | | | 8,286 | |
Issuance of common stock from employee stock purchase plan | 16 | | | — | | | 397 | | | — | | | — | | | 397 | |
Issuance of common stock to directors and board advisor | 2 | | | — | | | 65 | | | — | | | — | | | 65 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Exercise of stock options | 4 | | | — | | | (20) | | | — | | | — | | | (20) | |
Cancellation and surrender of restricted common stock | 1 | | | — | | | (1) | | | — | | | — | | | (1) | |
Stock-based compensation expense | — | | | — | | | 1,957 | | | — | | | — | | | 1,957 | |
Dividends on common stock | — | | | — | | | (1,679) | | | — | | | — | | | (1,679) | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Balance – June 30, 2023 | 14,958 | | | $ | 266 | | | $ | 240,681 | | | $ | 193,973 | | | $ | (278,753) | | | $ | 156,167 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Six months ended June 30, 2024 |
| | | | | | | | | | | |
| Shares Outstanding | | Common Stock | | Additional Paid-in Capital | | Retained Earnings | | Treasury Stock | | Total |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Balance – December 31, 2023 | 15,000 | | | $ | 266 | | | $ | 241,291 | | | $ | 210,256 | | | $ | (278,753) | | | $ | 173,060 | |
Net income | — | | | — | | | — | | | 13,232 | | | — | | | 13,232 | |
Issuance of common stock from employee stock purchase plan | 31 | | | — | | | 671 | | | — | | | — | | | 671 | |
Issuance of common stock to directors and board advisor | 10 | | | — | | | 264 | | | — | | | — | | | 264 | |
Issuance of common stock to former executive | — | | | — | | | — | | | — | | | — | | | — | |
Issuance of restricted common stock | 157 | | | 2 | | | (2) | | | — | | | — | | | — | |
Exercise of stock options | 50 | | | 1 | | | 1,271 | | | — | | | — | | | 1,272 | |
Cancellation and surrender of restricted common stock | (43) | | | — | | | (419) | | | — | | | — | | | (419) | |
Stock-based compensation expense | — | | | — | | | 2,407 | | | — | | | — | | | 2,407 | |
Dividends on common stock | — | | | — | | | (3,390) | | | — | | | — | | | (3,390) | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Other | 31 | | | — | | | 790 | | | — | | | — | | | 790 | |
Balance – June 30, 2024 | 15,236 | | | $ | 269 | | | $ | 242,883 | | | $ | 223,488 | | | $ | (278,753) | | | $ | 187,887 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Six months ended June 30, 2023 |
| |
| Shares Outstanding | | Common Stock | | Additional Paid-in Capital | | Retained Earnings | | Treasury Stock | | Total |
Balance – December 31, 2022 | 14,732 | | | $ | 264 | | | $ | 238,780 | | | $ | 176,843 | | | $ | (278,753) | | | $ | 137,134 | |
Net income | — | | | — | | | — | | | 17,130 | | | — | | | 17,130 | |
Issuance of common stock from employee stock purchase plan | 38 | | | — | | | 923 | | | — | | | — | | | 923 | |
Issuance of common stock to directors and board advisor | 6 | | | — | | | 177 | | | — | | | — | | | 177 | |
Issuance of common stock to former executive | 30 | | | — | | | 826 | | | — | | | — | | | 826 | |
Issuance of restricted common stock | 142 | | | 2 | | | (2) | | | — | | | — | | | — | |
Exercise of stock options | 5 | | | — | | | (41) | | | — | | | — | | | (41) | |
Cancellation and surrender of restricted common stock | (3) | | | — | | | (78) | | | — | | | — | | | (78) | |
Stock-based compensation expense | — | | | — | | | 3,160 | | | — | | | — | | | 3,160 | |
Dividends on common stock | — | | | — | | | (3,340) | | | — | | | — | | | (3,340) | |
| | | | | | | | | | | |
Other | 8 | | | — | | | 276 | | | — | | | — | | | 276 | |
Balance – June 30, 2023 | 14,958 | | | $ | 266 | | | $ | 240,681 | | | $ | 193,973 | | | $ | (278,753) | | | $ | 156,167 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
The accompanying condensed notes are an integral part of these Consolidated Financial Statements.
CARRIAGE SERVICES, INC.
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1.BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Company
Carriage Services, Inc. (“Carriage,” the “Company,” “we,” “us,” or “our”) is a leading provider of funeral and cemetery services and merchandise in the United States. Our operations are reported in two business segments: Funeral Home Operations, which currently accounts for approximately 65% of our total revenue, and Cemetery Operations, which currently accounts for approximately 35% of our total revenue. At June 30, 2024, we operated 164 funeral homes in 26 states and 31 cemeteries in 11 states.
Our funeral home operations are principally service businesses that generate revenue from sales of burial and cremation services and related merchandise, such as caskets and urns. Funeral services include consultation, the removal and preparation of remains, the sale of caskets and related funeral merchandise, the use of funeral home facilities for visitation and memorial services and transportation services. We provide funeral services and products on both an “atneed” (time of death) and “preneed” (planned prior to death) basis.
Our cemetery operations generate revenue primarily through sales of cemetery interment rights (primarily grave sites, lawn crypts, mausoleum spaces and niches), related cemetery merchandise (such as memorial markers, outer burial containers and monuments) and services (interments, inurnments and installation of cemetery merchandise). We provide cemetery services and products on both an atneed and preneed basis.
Principles of Consolidation and Interim Condensed Disclosures
Our unaudited Consolidated Financial Statements include the Company and its subsidiaries. All intercompany balances and transactions have been eliminated. Our interim Consolidated Financial Statements are unaudited, but include all adjustments, which consist of normal, recurring accruals, that are necessary for a fair presentation of our financial position and results of operations as of and for the interim periods presented.
There have been no material changes in our accounting policies previously disclosed in Part II, Item 8 “Financial Statements and Supplementary Data” in Note 1 in our Annual Report on Form 10-K for the year ended December 31, 2023. In addition, our unaudited Consolidated Financial Statements have been prepared in a manner consistent with the accounting principles described in our Annual Report on Form 10-K for the year ended December 31, 2023 unless otherwise disclosed herein, and should be read in conjunction therewith.
Use of Estimates
The preparation of our Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses. On an ongoing basis, we evaluate our critical estimates and judgments, which include those related to the impairment of goodwill and the fair value measurements used in business combinations. These policies are considered critical because they may result in fluctuations in our reported results from period to period due to the significant judgments, estimates and assumptions about complex and inherently uncertain matters and because the use of different judgments, assumptions or estimates could have a material impact on our financial condition or results of operations. Actual results may differ from these estimates and such estimates may change if the underlying conditions or assumptions change. Historical performance should not be viewed as indicative of future performance because there can be no assurance the margins, operating income and net earnings, as a percentage of revenue, will be consistent from period to period.
Cash and Cash Equivalents
We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
Inventory
Inventory consists primarily of caskets, outer burial containers and cemetery monuments and markers and is recorded at the lower of its cost basis or net realizable value. Inventory is relieved using specific identification in fulfillment of performance obligations on our contracts.
Contingent Liability
We recognize a contingent liability when both i) it is probable that a loss has been incurred and ii) the amount of the loss is reasonably estimable. In evaluating these two conditions, we consider all relevant information that is available as of the date the financial statements are issued. During the three and six months ended June 30, 2024, we recorded a $5.0 million contingent liability to reflect our agreement to pay our financial advisor in connection with the review of strategic alternatives.
Deferred Revenue
During the six months ended June 30, 2023, we withdrew $8.6 million of realized capital gains and earnings from our preneed funeral and cemetery trust investments. We did not withdraw any realized capital gains and earnings from our preneed trust investments during the six months ended June 30, 2024. In certain states, we are allowed to make these withdrawals prior to the delivery of preneed merchandise and service contracts. The realized capital gains and earnings withdrawn increase our cash flow from operations, but are not recognized as revenue in our Consolidated Statements of Operations, however, they reduce our Preneed funeral trust investments and Preneed cemetery trust investments and increase our Deferred preneed funeral revenue and Deferred preneed cemetery revenue.
Additionally, during the three and six months ended June 30, 2023, we received a $6.0 million incentive payment from a vendor for entering into a strategic partnership agreement to market and sell prearranged funeral services in the future, which increased our cash flow from operations and Deferred preneed funeral revenue. The incentive payment is subject to partial claw-back if certain preneed funeral sales volumes are not met within the ten-year term of the agreement. As such, we will recognize the incentive payment in proportion to our achieved preneed funeral sales volume per the agreement at each reporting period.
Property, Plant and Equipment
Property, plant and equipment is comprised of the following (in thousands):
| | | | | | | | | | | |
| June 30, 2024 | | December 31, 2023 |
Land | $ | 86,829 | | | $ | 87,635 | |
Buildings and improvements | 262,353 | | | 263,522 | |
Furniture, equipment and vehicles | 73,139 | | | 74,372 | |
Property, plant and equipment, at cost | 422,321 | | | 425,529 | |
Less: accumulated depreciation | (141,966) | | | (138,045) | |
Property, plant and equipment, net | $ | 280,355 | | | $ | 287,484 | |
During the six months ended June 30, 2024, we sold six funeral homes and one cemetery that had a carrying value of property, plant and equipment of $3.1 million, which was included in the loss on sale and recorded in Net loss on divestitures, disposals and impairment charges on our Consolidated Statements of Operations. Additionally, we sold real property for $0.3 million, with a carrying value of $0.3 million.
At June 30, 2024, we had $0.5 million of assets classified as held for sale in Property, plant and equipment, net on our Consolidated Balance Sheet related to one funeral home that we intend to divest within the next six months.
During the six months ended June 30, 2023, we acquired $12.8 million of property, plant and equipment related to our acquisition of a business located in Bakersfield, CA, as more fully described in Note 3 to the Consolidated Financial Statements. Additionally, we sold real property for $1.2 million, with a carrying value of $0.6 million, resulting in a gain on the sale of $0.6 million, which was recorded in Net loss on divestitures, disposals and impairment charges on our Consolidated Statements of Operations.
Our growth and maintenance capital expenditures totaled $1.9 million and $2.6 million for the three months ended June 30, 2024 and 2023, respectively, and $3.5 million and $5.5 million for the six months ended June 30, 2024 and 2023, respectively. In addition, we recorded depreciation expense of $3.5 million and $3.7 million for the three months ended June 30, 2024 and 2023, respectively, and $7.2 million for both the six months ended June 30, 2024 and 2023.
Cemetery Property
Cemetery property was $113.3 million and $114.6 million, net of accumulated amortization of $68.7 million and $64.6 million at June 30, 2024 and December 31, 2023, respectively. When cemetery property is sold, the value of the cemetery property (interment right costs) is expensed as amortization using the specific identification method in the period in which the sale of the interment right is recognized as revenue. Our growth capital expenditures for cemetery property development totaled $1.6 million and $1.4 million for the three months ended June 30, 2024 and 2023, respectively, and $3.6 million and $3.5 million for the six months ended June 30, 2024 and 2023, respectively. We recorded amortization expense for cemetery
interment rights of $2.6 million and $1.9 million for the three months ended June 30, 2024 and 2023, respectively, and $4.3 million and $3.1 million for the six months ended June 30, 2024 and 2023, respectively.
During the six months ended June 30, 2024, we sold one cemetery that had a carrying value of cemetery property of $0.8 million, which was included in the loss on sale and recorded in Net loss on divestitures, disposals and impairment charges on our Consolidated Statements of Operations.
During the six months ended June 30, 2023, we acquired cemetery property for $9.0 million related to our acquisition of a business located in Bakersfield, CA, as more fully described in Note 3 to the Consolidated Financial Statements. We also sold two cemeteries that had a carrying value of cemetery property of $0.8 million, which was included in the loss on sale and recorded in Net loss on divestitures, disposals and impairment charges on our Consolidated Statements of Operations.
Income Taxes
Income tax expense was $4.2 million and $3.4 million for the three months ended June 30, 2024 and 2023, respectively, and $7.9 million and $6.9 million for the six months ended June 30, 2024 and 2023, respectively. Our operating tax rate before discrete items was 33.6% and 28.0% for the three months ended June 30, 2024 and 2023, respectively, and 33.2% and 28.5% for the six months ended June 30, 2024 and 2023, respectively.
Subsequent Events
We have evaluated events and transactions during the period subsequent to June 30, 2024 through the date the financial statements were issued for potential recognition or disclosure in the accompanying financial statements covered by this report.
2.RECENTLY ISSUED ACCOUNTING STANDARDS
Segment Reporting
In November 2023, the FASB issued ASU, Segment Reporting - Improvements to Reportable Segment Disclosures (“Topic 280”) to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update require that a public entity disclose, on an annual and interim basis (1) significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss; and (2) an amount for other segment items, as described in the amendments, by reportable segment and a description of its composition. Additionally, the amendments require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and therefore were effective for us for our fiscal year beginning January 1, 2024 and for interim periods within our fiscal year beginning January 1, 2025. We expect the adoption will have no impact on our Consolidated Financial Statements.
Accounting Pronouncements Not Yet Adopted
Income Taxes
In December 2023, the FASB issued ASU, Income Taxes - Improvements to Income Tax Disclosures (“Topic 740”) to enhance the transparency about income tax information through improvements to income tax disclosures primarily related to rate reconciliation and income taxes paid information. The amendments in this update require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation; and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate). The amendments in this update also require that all entities disclose on an annual basis (1) the amount of net income taxes paid disaggregated by federal and state taxes; and (2) the amount of net income taxes paid disaggregated by individual jurisdictions in which net income taxes paid is equal to or greater than five percent of total net income taxes paid. The amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. We plan to adopt the amendments of Topic 740 for our fiscal year beginning January 1, 2025. We expect the adoption will have no impact on our Consolidated Financial Statements.
3. BUSINESS COMBINATIONS
Tangible and intangible assets acquired and liabilities assumed are recorded at fair value and goodwill is recognized for any difference between the price of the acquisition and fair value. We recognize the assets acquired, the liabilities assumed and any non-controlling interest in the acquiree at the acquisition date, measured at the fair value as of that date. Acquisition related costs are recognized separately from the acquisition and are expensed as incurred. We customarily estimate related transaction costs known at closing. To the extent that information not available to us at the closing date subsequently becomes available during the measurement period, we may adjust goodwill, intangible assets, assets or liabilities associated with the acquisition.
We did not acquire any businesses during the three and six months ended June 30, 2024. On March 22, 2023, we acquired a business consisting of three funeral homes, two cemeteries and one cremation focused business in the Bakersfield, CA area for $44.0 million in cash. We acquired substantially all of the assets and assumed certain operating liabilities of this business.
The pro forma impact of this acquisition on prior periods is not presented, as the impact is not significant to our reported results. The results of the acquired business are reflected in our Consolidated Statements of Operations from the date of acquisition.
The following table summarizes the breakdown of the purchase price allocation for our Bakersfield, CA business acquisition (in thousands):
| | | | | | | | | | | | | | | | | |
| Initial Purchase Price Allocation | | Adjustments | | Adjusted Purchase Price Allocation |
Current assets | $ | 7,087 | | | $ | 131 | | | $ | 7,218 | |
Preneed trust assets | — | | | 11,428 | | | 11,428 | |
Property, plant & equipment | 12,577 | | | 245 | | | 12,822 | |
Cemetery property | 9,035 | | | — | | | 9,035 | |
Goodwill | 13,612 | | | (106) | | | 13,506 | |
Intangible and other non-current assets | 3,763 | | | — | | | 3,763 | |
Assumed liabilities | (300) | | | (66) | | | (366) | |
| | | | | |
Preneed trust liabilities | — | | | (11,428) | | | (11,428) | |
Deferred revenue | (1,774) | | | (204) | | | (1,978) | |
Purchase price | $ | 44,000 | | | $ | — | | | $ | 44,000 | |
The current assets relate to accounts receivable and inventory. The intangible and other non-current assets relate to the fair value of tradenames and right-of-use operating lease assets. The assumed liabilities relate to operating lease obligations and commissions payable. As of December 31, 2023, our accounting for this acquisition was complete.
The following table summarizes the fair value of the assets acquired and liabilities assumed for this business (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisition Date | | Type of Business | | Market | | Assets Acquired (Excluding Goodwill) | | Goodwill Recorded | | Liabilities and Debt Assumed |
March 22, 2023 | | Three Funeral Homes, Two Cemeteries and One Cremation Focused Business | | Bakersfield, CA | | $ | 44,266 | | | $ | 13,506 | | | $ | (13,772) | |
4.GOODWILL
The following table presents changes in goodwill in the accompanying Consolidated Balance Sheet (in thousands):
| | | | | | | | | | | |
| June 30, 2024 | | December 31, 2023 |
Goodwill at the beginning of the period | $ | 423,643 | | | $ | 410,137 | |
Increase in goodwill related to acquisitions | — | | | 13,506 | |
Decrease in goodwill related to divestitures | (8,748) | | | — | |
| | | |
Goodwill at the end of the period | $ | 414,895 | | | $ | 423,643 | |
During the six months ended June 30, 2024, we allocated $8.7 million of goodwill to the sale of six funeral homes and one cemetery for a loss recorded in Net loss on divestitures, disposals and impairments charges, of which $7.8 million was allocated to our funeral homes segment and $1.0 million was allocated to our cemetery segment.
During the six months ended June 30, 2023, we recognized $13.5 million in goodwill related to our acquisition of a business located in Bakersfield, CA, of which $4.5 million was allocated to our cemetery segment and $9.0 million was allocated to our funeral home segment.
5.DIVESTED OPERATIONS
During the three months ended June 30, 2024, we merged one funeral home with another business we own in an existing market. During the six months ended June 30, 2024, we sold six funeral homes and one cemetery for an aggregate of $10.9 million and merged one funeral home with another business we own in an existing market.
During the three months ended June 30, 2023, we merged one funeral home with another business we own in an existing market. During the six months ended June 30, 2023, we sold one funeral home and two cemeteries for an aggregate of $0.8 million and merged one funeral home with another business we own in an existing market .
The operating results of these divested funeral homes and cemeteries are reflected on our Consolidated Statements of Operations as shown in the table below (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | |
| Three months ended June 30, | | Six months ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
Revenue | $ | 121 | | | $ | — | | | $ | 1,272 | | | $ | 66 | |
| | | | | | | |
Operating income (loss) | 33 | | | (2) | | | 151 | | | 24 | |
Loss on divestitures(1) | (8) | | | — | | | (1,509) | | | (82) | |
Income tax (expense) benefit | (8) | | | 1 | | | 451 | | | 17 | |
Net gain (loss) from divested operations, after tax | $ | 17 | | | $ | (1) | | | $ | (907) | | | $ | (41) | |
| | | | | | | | | | | | | | |
| | | | |
(1) | Loss on divestitures is recorded in Net loss on divestitures, disposals and impairments charges on our Consolidated Statements of Operations. |
6.RECEIVABLES
Accounts Receivable
Our funeral receivables are recorded in Accounts receivable, net and primarily consist of amounts due for funeral services already performed.
Atneed cemetery receivables and preneed cemetery receivables with payments expected to be received within one year from the balance sheet date are also recorded in Accounts receivable, net. Preneed cemetery receivables with payments expected to be received beyond one year from the balance sheet date are recorded in Preneed cemetery receivables, net.
Accounts receivable is comprised of the following (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | |
| June 30, 2024 |
| Funeral | | Cemetery | | Corporate | | Total |
Trade and financed receivables | $ | 8,138 | | | $ | 21,915 | | | $ | — | | | $ | 30,053 | |
Other receivables | 307 | | | 293 | | | 334 | | | 934 | |
Allowance for credit losses | (355) | | | (1,234) | | | — | | | (1,589) | |
Accounts receivable, net | $ | 8,090 | | | $ | 20,974 | | | $ | 334 | | | $ | 29,398 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2023 |
| Funeral | | Cemetery | | Corporate | | Total |
Trade and financed receivables | $ | 8,822 | | | $ | 18,459 | | | $ | — | | | $ | 27,281 | |
Other receivables | 404 | | | 595 | | | 286 | | | 1,285 | |
Allowance for credit losses | (266) | | | (1,240) | | | — | | | (1,506) | |
Accounts receivable, net | $ | 8,960 | | | $ | 17,814 | | | $ | 286 | | | $ | 27,060 | |
Other receivables include supplier rebates, commissions due from third party insurance companies and perpetual care income receivables. We do not provide an allowance for credit losses for these receivables as we have historically not had any collectability issues nor do we expect any in the foreseeable future.
The following table summarizes the activity in our allowance for credit losses by segment (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| January 1, 2024 | | Provision for Credit Losses | | | | Write Offs | | Recoveries | | June 30, 2024 |
Trade and financed receivables: | | | | | | | | | | | |
Funeral | $ | (266) | | | $ | (591) | | | | | $ | 975 | | | $ | (473) | | | $ | (355) | |
Cemetery | (1,240) | | | (343) | | | | | 349 | | | — | | | (1,234) | |
Total allowance for credit losses on trade and financed receivables | $ | (1,506) | | | $ | (934) | | | | | $ | 1,324 | | | $ | (473) | | | $ | (1,589) | |
Balances due on undelivered preneed funeral trust contracts have been reclassified to reduce Deferred preneed funeral revenue on our Consolidated Balance Sheet of $10.8 million and $10.7 million at June 30, 2024 and December 31, 2023, respectively. As these performance obligations are to be completed after the date of death, we cannot quantify the recognition of revenue in future periods. However, we estimate an average maturity period of ten years for preneed funeral contracts.
Cemetery Receivables
Our cemetery receivables are comprised of the following (in thousands):
| | | | | | | | | | | |
| June 30, 2024 | | December 31, 2023 |
Interment rights | $ | 71,864 | | | $ | 60,863 | |
Merchandise and services | 12,516 | | | 11,223 | |
Unearned finance charges | 6,466 | | | 5,669 | |
Cemetery receivables | $ | 90,846 | | | $ | 77,755 | |
The components of our cemetery receivables are as follows (in thousands):
| | | | | | | | | | | |
| June 30, 2024 | | December 31, 2023 |
Cemetery receivables | $ | 90,846 | | | $ | 77,755 | |
Less: unearned finance charges | (6,466) | | | (5,669) | |
Cemetery receivables, at amortized cost | $ | 84,380 | | | $ | 72,086 | |
Less: allowance for credit losses | (3,491) | | | (3,495) | |
Less: balances due on undelivered cemetery preneed contracts | (14,639) | | | (15,797) | |
Less: amounts in accounts receivable | (20,681) | | | (17,219) | |
Preneed cemetery receivables, net | $ | 45,569 | | | $ | 35,575 | |
The following table summarizes the activity in our allowance for credit losses for Preneed cemetery receivables, net (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | |
| January 1, 2024 | | Provision for Credit Losses | | Write Offs | | June 30, 2024 |
Total allowance for credit losses on Preneed cemetery receivables, net | $ | (2,255) | | | $ | (513) | | | $ | 511 | | | $ | (2,257) | |
The amortized cost basis of our cemetery receivables by year of origination at June 30, 2024 is as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior | | Total |
Total preneed cemetery receivables, at amortized cost | $ | 27,655 | | | $ | 27,698 | | | $ | 16,244 | | | $ | 7,837 | | | $ | 3,062 | | | $ | 1,884 | | | $ | 84,380 | |
The aging of past due cemetery receivables at June 30, 2024 is as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 31-60 Past Due | | 61-90 Past Due | | 91-120 Past Due | | >120 Past Due | | Total Past Due | | Current | | Total |
Recognized revenue | $ | 2,379 | | | $ | 782 | | | $ | 277 | | | $ | 3,339 | | | $ | 6,777 | | | $ | 62,964 | | | $ | 69,741 | |
Deferred revenue | 582 | | | 179 | | | 76 | | | 1,197 | | | 2,034 | | | 19,071 | | | 21,105 | |
Total contracts | $ | 2,961 | | | $ | 961 | | | $ | 353 | | | $ | 4,536 | | | $ | 8,811 | | | $ | 82,035 | | | $ | 90,846 | |
Balances due on undelivered preneed cemetery contracts have been reclassified to reduce Deferred preneed cemetery revenue on our Consolidated Balance Sheet. The transaction price allocated to preneed merchandise and service performance obligations that were unfulfilled were $14.6 million and $15.8 million at June 30, 2024 and December 31, 2023, respectively.
As these performance obligations are to be completed after the date of death, we cannot quantify the recognition of revenue in future periods. However, we estimate an average maturity period of eight years for preneed cemetery contracts.
7.FAIR VALUE MEASUREMENTS
We evaluated our financial assets and liabilities for those that met the criteria of the disclosure requirements and fair value framework. The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate the fair values of those instruments due to the short-term nature of the instruments. The fair values of our receivables on preneed cemetery contracts are impracticable to estimate because of the lack of a trading market and the diverse number of individual contracts with varying terms. Our acquisition debt and Credit Facility (as defined in Note 11) and Senior Notes (as defined in Note 12) are classified within Level 2 of the Fair Value Measurements hierarchy.
At June 30, 2024, the carrying value and fair value of our Credit Facility was $155.0 million. We believe that our Credit Facility bears interest at a rate that approximates prevailing market rates for instruments with similar characteristics and therefore, the carrying value of our Credit Facility approximates fair value. We estimate the fair value of our acquisition debt utilizing an income approach, which uses a present value calculation to discount payments based on current market rates as of the reporting date. At June 30, 2024, the carrying value of our acquisition debt was $6.0 million, which approximated its fair value. The fair value of our Senior Notes was $357.0 million at June 30, 2024 based on the last traded or broker quoted price.
We identified investments in fixed income securities, common stock and mutual funds presented within the preneed and perpetual care trust investments categories on our Consolidated Balance Sheet as having met the criteria for fair value measurement. Where quoted prices are available in an active market, investments held by the trusts are classified as Level 1 investments pursuant to the three-level valuation hierarchy. Our Level 1 investments include cash, U.S. treasury debt, common stock and equity mutual funds. Where quoted market prices are not available for the specific security, then fair values are estimated by using quoted prices of similar securities in active markets or inputs other than quoted prices that can corroborate observable market data. These investments are fixed income securities, including U.S. agency obligations, foreign debt, corporate debt, preferred stocks, certificates of deposit and fixed income mutual funds and other investments, all of which are classified within Level 2 of the valuation hierarchy.
In addition, we have an investment in a limited partnership fund, whose fair value has been estimated using the net asset value per share practical expedient described in ASC 820-10-35-59, Fair Value Measurement of Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) and therefore, has not been classified in the fair value hierarchy. The investment strategy of this fund is to generate attractive, risk-adjusted returns over a multi-year performance period through the construction of a concentrated portfolio of investments possessing certain distinct business attributes that suggest the potential for long-term value creation. Beginning March 31, 2024, the agreement permits us to withdraw a percentage of the value of the investments in this fund through quarterly withdrawals with the intention to permit withdrawal of the entire investment over twelve successive withdrawal dates. Our unfunded commitment for this investment at June 30, 2024 was $10.0 million.
Our receivables from preneed funeral trusts represent assets in trusts which are controlled and operated by third parties in which we do not have a controlling financial interest (less than 50%) in the trust assets. We account for these investments at cost. See Notes 8 and 9 to our Consolidated Financial Statements for the fair value hierarchy levels of our trust investments.
8.TRUST INVESTMENTS
Preneed trust investments represent trust fund assets that we are generally permitted to withdraw as the services and merchandise are provided to customers. Preneed funeral and cemetery contracts are secured by payments from customers, less amounts not required by law to be deposited into trust. These earnings are recognized in Other revenue on our Consolidated Statements of Operations, when a service is performed or merchandise is delivered. Trust management fees charged by our wholly-owned registered investment advisory firm are included as revenue in the period in which they are earned. Our investments are diversified across multiple industry segments using a balanced allocation strategy to minimize long-term risk. We do not intend to sell and it is likely that we will not be required to sell the securities prior to their anticipated recovery.
Cemetery perpetual care trust investments represent a portion of the proceeds from the sale of cemetery property interment rights that we are required by various state laws to deposit into perpetual care trust funds. The income earned from these perpetual care trusts offsets maintenance expenses for cemetery property and memorials. This trust fund income is recognized in Other revenue.
Changes in the fair value of our trust fund assets (Preneed funeral, cemetery and perpetual care trust investments) are offset by changes in the fair value of our trust fund liabilities (Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus) and reflected in Other, net. There is no impact on earnings until such time the services are performed or the
merchandise is delivered, causing the contract to be withdrawn from the trust in accordance with state regulations and the gain or loss is allocated to the contract.
We rely on our trust investments to provide funding for the various contractual obligations that arise upon maturity of the underlying preneed contracts. Because of the long-term relationship between the establishment of trust investments and the required performance of the underlying contractual obligations, the impact of current market conditions that may exist at any given time is not necessarily indicative of our ability to generate profit on our future performance obligations.
Preneed Cemetery Trust Investments
The components of Preneed cemetery trust investments on our Consolidated Balance Sheet are as follows (in thousands):
| | | | | | | | | | | |
| June 30, 2024 | | December 31, 2023 |
Preneed cemetery trust investments, at market value | $ | 103,516 | | | $ | 99,461 | |
Less: allowance for contract cancellation | (3,231) | | | (3,087) | |
Preneed cemetery trust investments | $ | 100,285 | | | $ | 96,374 | |
The cost and market values associated with preneed cemetery trust investments at June 30, 2024 are detailed below (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fair Value Hierarchy Level | | Cost | | Unrealized Gains | | Unrealized Losses | | Fair Market Value |
Cash and money market accounts | 1 | | $ | 20,809 | | | $ | — | | | $ | — | | | $ | 20,809 | |
Fixed income securities: | | | | | | | | | |
| | | | | | | | | |
U.S. agency obligations | 2 | | 665 | | | — | | | (55) | | | 610 | |
Foreign debt | 2 | | 8,914 | | | 1,464 | | | (11) | | | 10,367 | |
Corporate debt | 2 | | 14,280 | | | 210 | | | (2,897) | | | 11,593 | |
Preferred stock | 2 | | 11,477 | | | 503 | | | (1,788) | | | 10,192 | |
Certificates of deposit | 2 | | 79 | | | — | | | (7) | | | 72 | |
Common stock | 1 | | 32,774 | | | 2,868 | | | (3,265) | | | 32,377 | |
Limited partnership fund | | | 3,675 | | | 410 | | | — | | | 4,085 | |
Mutual funds: | | | | | | | | | |
Equity | 1 | | 944 | | | 71 | | | (5) | | | 1,010 | |
Fixed income | 2 | | 14,079 | | | 56 | | | (2,490) | | | 11,645 | |
Trust securities | | | $ | 107,696 | | | $ | 5,582 | | | $ | (10,518) | | | $ | 102,760 | |
Accrued investment income | | | $ | 756 | | | | | | | $ | 756 | |
Preneed cemetery trust investments | | | | | | | | | $ | 103,516 | |
Market value as a percentage of cost | | | | | | | | | 95.4% |
The estimated maturities of the fixed income securities (excluding mutual funds) included above are as follows (in thousands):
| | | | | |
Due in one year or less | $ | 137 | |
Due in one to five years | 13,451 | |
Due in five to ten years | 939 | |
Thereafter | 18,307 | |
Total fixed income securities | $ | 32,834 | |
The cost and market values associated with preneed cemetery trust investments at December 31, 2023 are detailed below (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fair Value Hierarchy Level | | Cost | | Unrealized Gains | | Unrealized Losses | | Fair Market Value |
Cash and money market accounts | 1 | | $ | 9,643 | | | $ | — | | | $ | — | | | $ | 9,643 | |
Fixed income securities: | | | | | | | | | |
U.S. agency obligations | 2 | | 803 | | | 1 | | | (51) | | | 753 | |
Foreign debt | 2 | | 7,764 | | | 1,371 | | | (17) | | | 9,118 | |
Corporate debt | 2 | | 15,071 | | | 342 | | | (3,657) | | | 11,756 | |
Preferred stock | 2 | | 10,965 | | | 473 | | | (1,572) | | | 9,866 | |
Certificate of deposit | 2 | | 79 | | | — | | | (7) | | | 72 | |
| | | | | | | | | |
Common stock | 1 | | 43,057 | | | 9,466 | | | (7,935) | | | 44,588 | |
Limited partnership fund | | | 3,575 | | | — | | | (3) | | | 3,572 | |
|