On May 1, 2024, Carriage Services Inc (CSV, Financial), a prominent provider of funeral and cemetery services in the United States, disclosed its financial outcomes for the first quarter ended March 31, 2024. The company announced a total revenue of $103.5 million, marking an 8.4% increase from the previous year, primarily driven by a significant 38.4% rise in cemetery preneed sales. This performance exceeded the analyst's revenue estimate of $98.79 million. However, CSV reported a GAAP diluted EPS of $0.45, falling below the estimated $0.59, alongside an adjusted diluted EPS of $0.75. The full details of the earnings can be accessed through the company's 8-K filing.
Company Overview
Carriage Services Inc operates primarily through two segments: Funeral Home Operations and Cemetery Operations. The Funeral Home Operations segment offers comprehensive services including burial, cremation, and consultation, alongside selling related merchandise. The Cemetery Operations segment, contributing significantly to revenue growth this quarter, provides a range of services from traditional burial sites to mausoleum crypts and private estates.
Financial and Operational Highlights
The first quarter saw a robust increase in cemetery preneed sales, which significantly contributed to the overall revenue growth. Despite a 1.9% decline in funeral service volumes due to a COVID-related "pull forward" effect, targeted enhancements in pricing strategies led to a 1.8% growth in funeral operating revenue compared to the previous year. The company also achieved a 20.9% increase in adjusted consolidated EBITDA and expanded its adjusted EBITDA margin by 340 basis points to 32.5%.
Carlos Quezada, Vice Chairman and CEO of Carriage Services, highlighted the effectiveness of the company's strategic objectives, particularly in preneed cemetery sales, and reiterated the company's commitment to its new purpose statement focused on innovation and elevated service.
Challenges and Forward-Looking Statements
Despite the positive revenue growth, Carriage Services faced challenges including a decrease in net income from $8.8 million in Q1 2023 to $7.0 million in Q1 2024, attributed to increased general, administrative, and other expenses, alongside losses on divestitures. The company remains cautious about the ongoing "pull forward" effect impacting funeral service volumes but is optimistic about its strategic pricing and cost management initiatives to bolster future performances.
Conclusion
Carriage Services Inc's first quarter of 2024 presented a mixed financial picture, with significant revenue growth overshadowed by challenges in net income and EPS figures. As the company continues to navigate the complexities of the market and refine its strategic objectives, investors and stakeholders will be keenly watching its ability to maintain growth trajectories and manage operational challenges effectively.
For detailed financial metrics and further information, stakeholders are encouraged to review the full earnings report and stay tuned for updates on Carriage Services' strategic progress in the coming quarters.
Explore the complete 8-K earnings release (here) from Carriage Services Inc for further details.
