Carriage Services(CSV) - 2024 Q4 - Annual Results

Financial Performance - Total revenue for the year ended December 31, 2024, was $404.2 million, representing a growth of 5.7% compared to the prior year[6] - Adjusted consolidated EBITDA for the year increased by 11.5% to$ 126.2 million, while GAAP net income declined by 1.4% to $33.0 million[6] - The company achieved adjusted diluted EPS of$ 2.65, an increase of 21.0% over the prior year, despite a GAAP diluted EPS decline of 1.9% to $2.10[6] - Total revenue for 2023 was$ 382,520, a slight increase from $370,174 in 2022, representing a growth of 3.6%[14] - Total EBITDA for 2023 was$ 161,076, with an EBITDA margin of 42.1%, compared to $161,361 and 43.6% in 2022[14] - Adjusted net income for 2023 was$ 34,131, down from $41,086 in 2022, reflecting a decrease of 16.9%[14] - The company reported a GAAP diluted earnings per share of$ 2.14 for 2023, compared to $2.63 in 2022, a decline of 18.6%[14] - Operating income for the year ended December 31, 2024, was$ 81,799 million, slightly up from $80,979 million in 2023, representing a 1.0% increase[19] - Net income for the year ended December 31, 2024, was$ 32,953 million, a decrease of 1.4% from $33,413 million in 2023[19] Revenue and Sales - Preneed cemetery sales increased by 26.7%, contributing to a 3.1% rise in average revenue per funeral contract[6] - The average price per preneed interment right sold increased by 4.2% to$ 5,379[9] - The company experienced a 7.3% decrease in funeral contract volume for the year, offset by a 3.1% increase in average revenue per contract[9] - Cemetery operating revenue increased significantly to $101,150 in 2023, up 13.6% from$ 89,045 in 2022[14] - Total revenue for the year ended December 31, 2024, was $404,198 million, an increase of 5.7% compared to$ 382,520 million in 2023[19] Cash Flow and Liquidity - Cash provided by operating activities for the year was $52.0 million, down from$ 75.6 million in the prior year[7] - Cash flows from operating activities for the year ended December 31, 2024, were $51,996 million, a decrease of 31.2% compared to$ 75,590 million in 2023[22] - Cash provided by operating activities for Q4 2024 was $9,280,000, down from$ 13,741,000 in Q4 2023, leading to free cash flow of $6,981,000 compared to$ 11,591,000[48] - Adjusted free cash flow for the year 2024 was $51,471,000, compared to$ 55,107,000 in 2023[48] - Cash provided by operating activities for 2025 is estimated at $61,500,000, with cash used for capital expenditures at$ 21,000,000, resulting in a free cash flow of $40,500,000[54] Guidance and Projections - The 2025 guidance includes total revenue of$ 400- $410 million and adjusted consolidated EBITDA of$ 128- $133 million[6] - Expected divestitures of non-core assets are projected to reduce 2025 revenue and EBITDA by approximately$ 7.9 million and $2.3 million, respectively[10] - For the estimated year ended December 31, 2025, total revenue is expected to reach$ 405,000,000, with an adjusted consolidated EBITDA margin of 32.3%[53] - The estimated adjusted diluted earnings per share for 2025 is projected at $3.20, down from$ 3.50 in GAAP diluted earnings per share[53] - Adjusted free cash flow for 2025 is projected to be $45,000,000 after accounting for special items of$ 4,500,000[54] Assets and Liabilities - Total assets increased to $1,279,580 in December 2023, up from$ 1,268,052 in December 2022[17] - Total liabilities decreased to $1,071,030 in December 2023, down from$ 1,094,992 in December 2022[17] - The company’s cash and cash equivalents decreased to $1,165 in December 2023 from$ 1,523 in December 2022[17] Operational Metrics - Service revenue for Q4 2024 was $44,003 million, a decrease of 3.8% from$ 45,729 million in Q4 2023[19] - Gross profit for Q4 2024 was $33,645 million, down from$ 34,626 million in Q4 2023, reflecting a decrease of 2.8%[19] - Operating income for Q4 2024 was $21,056,000, a decrease from$ 23,921,000 in Q4 2023, while total revenue decreased to $97,700,000 from$ 98,834,000[37] - Consolidated EBITDA for Q4 2024 was $29,296,000, down from$ 31,225,000 in Q4 2023, with an adjusted consolidated EBITDA of $29,296,000 compared to$ 32,444,000 in the same period[37] - The operating income margin for Q4 2024 was 21.6%, down from 24.2% in Q4 2023, while the adjusted consolidated EBITDA margin decreased to 30.0% from 32.8%[37] Strategic Initiatives - The company plans to focus on market expansion and new product development in the upcoming year[14] - The company plans to continue reviewing strategic alternatives, which may impact future financial performance[45] - The company recognized a vendor incentive payment of $6,000,000 in 2023 for entering into a strategic partnership agreement[49] Risks and Uncertainties - The company acknowledges significant risks and uncertainties that could affect future results, including competition, economic conditions, and changes in consumer preferences[55] - Forward-looking statements include expectations regarding earnings, revenue, and capital allocation, with no assurance that future developments will align with current projections[55]