FORM 10-Q |
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number: 1-11961 |
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) |
Large accelerated filer | o | Accelerated filer | x |
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | o |
Page | |
Item 1. | Financial Statements |
(unaudited) | |||||||
December 31, 2012 | June 30, 2013 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,698 | $ | 1,518 | |||
Accounts receivable, net of allowance for bad debts of $1,177 in 2012 and $841 in 2013 | 17,812 | 16,869 | |||||
Assets held for sale | 1,466 | 20,108 | |||||
Inventories | 5,133 | 4,736 | |||||
Prepaid expenses | 5,107 | 3,518 | |||||
Other current assets | 1,923 | 2,171 | |||||
Total current assets | 33,139 | 48,920 | |||||
Preneed cemetery trust investments | 70,960 | 66,749 | |||||
Preneed funeral trust investments | 82,896 | 93,170 | |||||
Preneed receivables, net of allowance for bad debts of $2,059 in 2012 and $1,819 in 2013 | 23,222 | 24,923 | |||||
Receivables from preneed trusts | 25,871 | 13,557 | |||||
Property, plant and equipment, net of accumulated depreciation of $84,291 in 2012 and $85,151 in 2013 | 152,433 | 154,415 | |||||
Cemetery property | 75,156 | 73,404 | |||||
Goodwill | 218,442 | 217,244 | |||||
Deferred charges and other non-current assets | 9,424 | 8,243 | |||||
Cemetery perpetual care trust investments | 46,542 | 39,485 | |||||
Total assets | $ | 738,085 | $ | 740,110 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Current portion of senior long-term debt and capital lease obligations | $ | 11,218 | $ | 12,139 | |||
Accounts payable | 5,243 | 5,064 | |||||
Other liabilities | 13,067 | 15,782 | |||||
Accrued liabilities | 12,278 | 12,199 | |||||
Liabilities associated with assets held for sale | 369 | 20,158 | |||||
Total current liabilities | 42,175 | 65,342 | |||||
Long-term debt, net of current portion | 118,841 | 112,621 | |||||
Revolving credit facility | 44,700 | 34,600 | |||||
Convertible junior subordinated debentures due in 2029 to an affiliate | 89,770 | 89,770 | |||||
Obligations under capital leases, net of current portion | 4,013 | 3,900 | |||||
Deferred preneed cemetery revenue | 63,998 | 56,371 | |||||
Deferred preneed funeral revenue | 39,794 | 32,838 | |||||
Deferred preneed cemetery receipts held in trust | 70,960 | 66,749 | |||||
Deferred preneed funeral receipts held in trust | 82,896 | 93,170 | |||||
Care trusts’ corpus | 45,920 | 39,133 | |||||
Total liabilities | 603,067 | 594,494 | |||||
Commitments and contingencies: | |||||||
Redeemable preferred stock | 200 | — | |||||
Stockholders’ equity: | |||||||
Common stock, $.01 par value; 80,000,000 shares authorized; 22,078,000 and 22,147,000 shares issued at December 31, 2012 and June 30, 2013, respectively | 221 | 221 | |||||
Additional paid-in capital | 202,462 | 203,861 | |||||
Accumulated deficit | (52,598 | ) | (43,199 | ) | |||
Treasury stock, at cost; 3,922,000 shares at December 31, 2012 and June 30, 2013 | (15,267 | ) | (15,267 | ) | |||
Total stockholders’ equity | 134,818 | 145,616 | |||||
Total liabilities and stockholders’ equity | $ | 738,085 | $ | 740,110 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2013 | 2012 | 2013 | ||||||||||||
Revenues: | |||||||||||||||
Funeral | $ | 36,611 | $ | 40,779 | $ | 76,645 | $ | 85,937 | |||||||
Cemetery | 12,066 | 13,375 | 22,714 | 25,638 | |||||||||||
48,677 | 54,154 | 99,359 | 111,575 | ||||||||||||
Field costs and expenses: | |||||||||||||||
Funeral | 23,048 | 24,571 | 46,007 | 50,995 | |||||||||||
Cemetery | 7,282 | 7,637 | 14,078 | 14,452 | |||||||||||
Depreciation and amortization | 2,336 | 2,706 | 4,480 | 5,185 | |||||||||||
Regional and unallocated funeral and cemetery costs | 2,080 | 2,312 | 4,413 | 5,073 | |||||||||||
34,746 | 37,226 | 68,978 | 75,705 | ||||||||||||
Gross profit | 13,931 | 16,928 | 30,381 | 35,870 | |||||||||||
Corporate costs and expenses: | |||||||||||||||
General and administrative costs and expenses | 4,852 | 7,077 | 10,094 | 13,355 | |||||||||||
Home office depreciation and amortization | 256 | 372 | 511 | 718 | |||||||||||
5,108 | 7,449 | 10,605 | 14,073 | ||||||||||||
Operating income | 8,823 | 9,479 | 19,776 | 21,797 | |||||||||||
Interest expense, net of other income | (4,518 | ) | (3,664 | ) | (9,070 | ) | (6,259 | ) | |||||||
Income from continuing operations before income taxes | 4,305 | 5,815 | 10,706 | 15,538 | |||||||||||
Provision for income taxes | (1,845 | ) | (2,210 | ) | (4,326 | ) | (6,501 | ) | |||||||
Net income from continuing operations | 2,460 | 3,605 | 6,380 | 9,037 | |||||||||||
Income from discontinued operations, net of tax | 203 | 539 | 742 | 366 | |||||||||||
Net income | 2,663 | 4,144 | 7,122 | 9,403 | |||||||||||
Preferred stock dividend | (3 | ) | — | (7 | ) | (4 | ) | ||||||||
Net income available to common stockholders | $ | 2,660 | $ | 4,144 | $ | 7,115 | $ | 9,399 | |||||||
Basic earnings per common share: | |||||||||||||||
Continuing operations | $ | 0.14 | $ | 0.20 | $ | 0.35 | $ | 0.50 | |||||||
Discontinued operations | 0.01 | 0.03 | 0.04 | 0.02 | |||||||||||
Basic earnings per common share | $ | 0.15 | $ | 0.23 | $ | 0.39 | $ | 0.52 | |||||||
Diluted earnings per common share: | |||||||||||||||
Continuing operations | $ | 0.14 | $ | 0.20 | $ | 0.35 | $ | 0.46 | |||||||
Discontinued operations | 0.01 | 0.03 | 0.04 | 0.02 | |||||||||||
Diluted earnings per common share | $ | 0.15 | $ | 0.23 | $ | 0.39 | $ | 0.48 | |||||||
Dividends declared per common share | $ | 0.025 | $ | 0.025 | $ | 0.050 | $ | 0.050 | |||||||
Weighted average number of common and common equivalent shares outstanding: | |||||||||||||||
Basic | 18,077 | 18,201 | 18,171 | 18,170 | |||||||||||
Diluted | 18,153 | 18,365 | 18,237 | 22,743 |
For the Six Months Ended June 30, | |||||||
2012 | 2013 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 7,122 | $ | 9,403 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Gain on sale of assets | (428 | ) | (146 | ) | |||
Impairment of goodwill | — | 100 | |||||
Depreciation and amortization | 5,050 | 5,953 | |||||
Amortization and write-off of deferred financing costs | 348 | (36 | ) | ||||
Provision for losses on accounts receivable | 1,102 | 782 | |||||
Stock-based compensation expense | 1,182 | 1,624 | |||||
Deferred income taxes | 2,266 | 1,894 | |||||
Other | 38 | 208 | |||||
Changes in operating assets and liabilities that provided (required) cash: | |||||||
Accounts and preneed receivables | (1,414 | ) | (2,070 | ) | |||
Inventories and other current assets | 740 | 1,211 | |||||
Deferred charges and other | 75 | 24 | |||||
Preneed funeral and cemetery trust investments | (146 | ) | (1,363 | ) | |||
Accounts payable and accrued liabilities | (2,552 | ) | 2,285 | ||||
Deferred preneed funeral and cemetery revenue | (177 | ) | (9,755 | ) | |||
Deferred preneed funeral and cemetery receipts held in trust | 168 | 13,879 | |||||
Net cash provided by operating activities | 13,374 | 23,993 | |||||
Cash flows from investing activities: | |||||||
Acquisitions and new construction | (16,729 | ) | (6,051 | ) | |||
Capital expenditures | (5,651 | ) | (4,468 | ) | |||
Net proceeds from the sale of businesses | — | 2,736 | |||||
Net cash used in investing activities | (22,380 | ) | (7,783 | ) | |||
Cash flows from financing activities: | |||||||
Net borrowings from (payments against) the revolving credit facility | 14,200 | (10,100 | ) | ||||
Payments on the term loan | — | (5,000 | ) | ||||
Payments on other long-term debt and obligations under capital leases | (342 | ) | (307 | ) | |||
Proceeds from the exercise of stock options and employee stock purchase plan | 440 | 492 | |||||
Stock option benefit | 24 | — | |||||
Dividends on common stock | (903 | ) | (906 | ) | |||
Dividend on redeemable preferred stock | (7 | ) | (4 | ) | |||
Payment of loan origination costs | — | (565 | ) | ||||
Purchase of treasury stock | (4,531 | ) | — | ||||
Net cash provided by (used in) financing activities | 8,881 | (16,390 | ) | ||||
Net decrease in cash and cash equivalents | (125 | ) | (180 | ) | |||
Cash and cash equivalents at beginning of period | 1,137 | 1,698 | |||||
Cash and cash equivalents at end of period | $ | 1,012 | $ | 1,518 |
1. | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
2. | RECENTLY ISSUED ACCOUNTING STANDARDS |
3. | ACQUISITIONS |
• | Size of business; |
• | Size of market; |
• | Competitive standing; |
• | Local market demographics; |
• | Strength of brand; and |
• | Barriers to entry. |
4. | ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS |
December 31, 2012 | June 30, 2013 | ||||||
Assets: | |||||||
Current assets | $ | 238 | $ | 572 | |||
Preneed cemetery trust investments | — | 7,745 | |||||
Preneed funeral trust investments | — | 63 | |||||
Receivables from preneed trusts | 293 | 691 | |||||
Property, plant and equipment, net | 504 | 3,069 | |||||
Goodwill | 85 | 1,097 | |||||
Deferred charges and other non-current assets | 346 | — | |||||
Cemetery perpetual care trust investments | — | 6,871 | |||||
Total | $ | 1,466 | $ | 20,108 | |||
Liabilities: | |||||||
Current liabilities | $ | 75 | $ | 143 | |||
Long-term debt, net of current portion | — | 70 | |||||
Deferred preneed cemetery revenue | — | 5,059 | |||||
Deferred preneed funeral revenue | 294 | 284 | |||||
Deferred preneed cemetery receipts held in trust | — | 7,745 | |||||
Deferred preneed funeral receipts held in trust | — | 63 | |||||
Care trusts corpus | — | $ | 6,794 | ||||
Total | $ | 369 | $ | 20,158 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2013 | 2012 | 2013 | ||||||||||||
Revenues | $ | 1,390 | $ | 946 | $ | 3,001 | $ | 2,269 | |||||||
Operating income | $ | 353 | $ | 239 | $ | 819 | $ | 543 | |||||||
Gain (loss) on disposition | (2 | ) | 630 | 426 | 47 | ||||||||||
Provision for income taxes | (148 | ) | (330 | ) | (503 | ) | (224 | ) | |||||||
Income from discontinued operations | $ | 203 | $ | 539 | $ | 742 | $ | 366 |
5. | GOODWILL |
Goodwill as of December 31, 2012 | $ | 218,442 | |
Impairment | (101 | ) | |
Reclassification of assets held for sale | (1,097 | ) | |
Goodwill as of June 30, 2013 | $ | 217,244 |
6. | PRENEED TRUST INVESTMENT |
December 31, 2012 | June 30, 2013 | ||||||
Preneed cemetery trust investments, at fair value | $ | 73,126 | $ | 68,784 | |||
Less: allowance for contract cancellation | (2,166 | ) | (2,035 | ) | |||
Preneed cemetery trust investments, net | $ | 70,960 | $ | 66,749 |
Fair Value Hierarchy Level | Cost | Unrealized Gains | Unrealized Losses | Fair Market Value | |||||||||||||
Cash and money market accounts | 1 | $ | 7,588 | $ | — | $ | — | $ | 7,588 | ||||||||
Fixed income securities: | |||||||||||||||||
Foreign debt | 2 | 2,524 | 69 | (71 | ) | 2,522 | |||||||||||
Corporate debt | 2 | 32,730 | 660 | (947 | ) | 32,443 | |||||||||||
Preferred stock | 2 | 16,931 | 283 | (33 | ) | 17,181 | |||||||||||
Mortgage backed securities | 2 | — | — | — | — | ||||||||||||
Common stock | 1 | 8,068 | 759 | (646 | ) | 8,181 | |||||||||||
Trust securities | $ | 67,841 | $ | 1,771 | $ | (1,697 | ) | $ | 67,915 | ||||||||
Accrued investment income | $ | 869 | $ | 869 | |||||||||||||
Preneed cemetery trust investments | $ | 68,784 | |||||||||||||||
Fair market value as a percentage of cost | 100.1 | % |
Due in one year or less | $ | — | |
Due in one to five years | 8,400 | ||
Due in five to ten years | 14,087 | ||
Thereafter | 29,659 | ||
Total | $ | 52,146 |
Fair Value Hierarchy Level | Cost | Unrealized Gains | Unrealized Losses | Fair Market Value | |||||||||||||
Cash and money market accounts | 1 | $ | 758 | $ | — | $ | — | $ | 758 | ||||||||
Fixed income securities: | |||||||||||||||||
Foreign debt | 2 | 2,008 | 450 | — | 2,458 | ||||||||||||
Corporate debt | 2 | 38,299 | 863 | (507 | ) | 38,655 | |||||||||||
Preferred stock | 2 | 22,362 | 824 | (294 | ) | 22,892 | |||||||||||
Mortgage backed securities | 2 | 1 | — | — | 1 | ||||||||||||
Common stock | 1 | 8,759 | 34 | (1,526 | ) | 7,267 | |||||||||||
Trust securities | $ | 72,187 | $ | 2,171 | $ | (2,327 | ) | $ | 72,031 | ||||||||
Accrued investment income | $ | 1,095 | $ | 1,095 | |||||||||||||
Preneed cemetery trust investments | $ | 73,126 | |||||||||||||||
Market value as a percentage of cost | 99.8 | % |
June 30, 2013 | |||||||||||||||||||||||
In Loss Position Less than 12 months | In Loss Position Greater than 12 months | Total | |||||||||||||||||||||
Fair market value | Unrealized Losses | Fair market value | Unrealized Losses | Fair market value | Unrealized Losses | ||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
Foreign debt | $ | 1,762 | $ | (71 | ) | $ | — | $ | — | $ | 1,762 | $ | (71 | ) | |||||||||
Corporate debt | 14,850 | (526 | ) | 996 | (420 | ) | 15,846 | (946 | ) | ||||||||||||||
Preferred stock | 3,267 | (34 | ) | — | — | 3,267 | (34 | ) | |||||||||||||||
Common stock | 2,023 | (402 | ) | 752 | (244 | ) | 2,775 | (646 | ) | ||||||||||||||
Total temporary impaired securities | $ | 21,902 | $ | (1,033 | ) | $ | 1,748 | $ | (664 | ) | $ | 23,650 | $ | (1,697 | ) |
December 31, 2012 | |||||||||||||||||||||||
In Loss Position Less than 12 months | In Loss Position Greater than 12 months | Total | |||||||||||||||||||||
Fair market value | Unrealized Losses | Fair market value | Unrealized Losses | Fair market value | Unrealized Losses | ||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
Corporate debt | $ | 11,363 | $ | (325 | ) | $ | 622 | $ | (182 | ) | $ | 11,985 | $ | (507 | ) | ||||||||
Preferred stock | 1,040 | (54 | ) | 2,284 | (240 | ) | 3,324 | (294 | ) | ||||||||||||||
Common stock | 5,088 | (934 | ) | 957 | (592 | ) | 6,045 | (1,526 | ) | ||||||||||||||
Total temporary impaired securities | $ | 17,491 | $ | (1,313 | ) | $ | 3,863 | $ | (1,014 | ) | $ | 21,354 | $ | (2,327 | ) |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2013 | 2012 | 2013 | ||||||||||||
Investment income | $ | 1,290 | $ | 1,072 | $ | 2,052 | $ | 1,765 | |||||||
Realized gains | 2,681 | 1,547 | 5,054 | 1,585 | |||||||||||
Realized losses | (2,195 | ) | (144 | ) | (2,309 | ) | (574 | ) | |||||||
Expenses and taxes | (1,894 | ) | (1,684 | ) | (2,025 | ) | (2,065 | ) | |||||||
Increase (decrease) in deferred preneed cemetery receipts held in trust | 118 | (791 | ) | (2,772 | ) | (711 | ) | ||||||||
$ | — | $ | — | $ | — | $ | — |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2013 | 2012 | 2013 | ||||||||||||
Purchases | $ | (33,060 | ) | $ | (11,543 | ) | $ | (57,099 | ) | $ | (15,705 | ) | |||
Sales | 33,404 | 13,811 | 57,492 | 18,820 |
December 31, 2012 | June 30, 2013 | ||||||
Preneed funeral trust investments, at fair value | $ | 85,415 | $ | 95,972 | |||
Less: allowance for contract cancellation | (2,519 | ) | (2,802 | ) | |||
Preneed funeral trust investments, net | $ | 82,896 | $ | 93,170 |
Fair Value Hierarchy Level | Cost | Unrealized Gains | Unrealized Losses | Fair Market Value | |||||||||||||
Cash and money market accounts | 1 | $ | 19,257 | $ | — | $ | — | $ | 19,257 | ||||||||
Fixed income securities: | |||||||||||||||||
U.S. treasury debt | 1 | 2,752 | 61 | (33 | ) | 2,780 | |||||||||||
U.S. agency obligations | 1 | 559 | 13 | (6 | ) | 566 | |||||||||||
Foreign debt | 2 | 1,981 | 54 | (56 | ) | 1,979 | |||||||||||
Corporate debt | 2 | 27,405 | 659 | (787 | ) | 27,277 | |||||||||||
Preferred stock | 2 | 14,765 | 452 | (59 | ) | 15,158 | |||||||||||
Mortgage backed securities | 2 | 1 | — | — | 1 | ||||||||||||
Common stock | 1 | 6,989 | 690 | (553 | ) | 7,126 | |||||||||||
Mutual funds: | |||||||||||||||||
Equity | 1 | 11,598 | 1,610 | (25 | ) | 13,183 | |||||||||||
Fixed income | 2 | 5,403 | 19 | (145 | ) | 5,277 | |||||||||||
Other investments | 2 | 2,688 | — | (26 | ) | 2,662 | |||||||||||
Trust securities | $ | 93,398 | $ | 3,558 | $ | (1,690 | ) | $ | 95,266 | ||||||||
Accrued investment income | $ | 706 | $ | 706 | |||||||||||||
Preneed funeral trust investments | $ | 95,972 | |||||||||||||||
Fair market value as a percentage of cost | 102.0 | % |
Due in one year or less | $ | 736 | |
Due in one to five years | 8,515 | ||
Due in five to ten years | 12,603 | ||
Thereafter | 25,907 | ||
Total | $ | 47,761 |
Fair Value Hierarchy Level | Cost | Unrealized Gains | Unrealized Losses | Fair Market Value | |||||||||||||
Cash and money market accounts | 1 | $ | 13,448 | $ | — | $ | — | $ | 13,448 | ||||||||
Fixed income securities: | |||||||||||||||||
U.S. treasury debt | 1 | 3,001 | 75 | — | 3,076 | ||||||||||||
U.S agency obligations | 1 | 142 | 4 | — | 146 | ||||||||||||
Foreign debt | 2 | 1,217 | 273 | — | 1,490 | ||||||||||||
Corporate debt | 2 | 25,060 | 661 | (331 | ) | 25,390 | |||||||||||
Preferred stock | 2 | 15,228 | 715 | (193 | ) | 15,750 | |||||||||||
Common stock | 1 | 5,770 | 27 | (996 | ) | 4,801 | |||||||||||
Mutual funds: | |||||||||||||||||
Equity | 11,843 | 487 | (78 | ) | 12,252 | ||||||||||||
Fixed income | 1 | 6,105 | 181 | (40 | ) | 6,246 | |||||||||||
Other investments | 2 | 2,143 | — | (15 | ) | 2,128 | |||||||||||
Trust securities | 2 | $ | 83,957 | $ | 2,423 | $ | (1,653 | ) | $ | 84,727 | |||||||
Accrued investment income | $ | 688 | $ | 688 | |||||||||||||
Preneed funeral trust investments | $ | 85,415 | |||||||||||||||
Market value as a percentage of cost | 100.9 | % |
June 30, 2013 | |||||||||||||||||||||||
In Loss Position Less than 12 months | In Loss Position Greater than 12 months | Total | |||||||||||||||||||||
Fair market value | Unrealized Losses | Fair market value | Unrealized Losses | Fair market value | Unrealized Losses | ||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
U.S. debt | $ | 838 | $ | (33 | ) | $ | — | $ | — | $ | 838 | $ | (33 | ) | |||||||||
U.S. agency obligations | 206 | (6 | ) | — | — | 206 | (6 | ) | |||||||||||||||
Foreign debt | 1,383 | (56 | ) | — | — | 1,383 | (56 | ) | |||||||||||||||
Corporate debt | 12,342 | (438 | ) | 828 | (349 | ) | 13,170 | (787 | ) | ||||||||||||||
Preferred stock | 5,860 | (59 | ) | — | — | 5,860 | (59 | ) | |||||||||||||||
Common stock | — | — | — | — | — | — | |||||||||||||||||
Mutual funds: | |||||||||||||||||||||||
Equity | 1,732 | (344 | ) | 644 | (209 | ) | 2,376 | (553 | ) | ||||||||||||||
Equity and other | 33 | — | 542 | (25 | ) | 575 | (25 | ) | |||||||||||||||
Fixed income | 2,691 | (145 | ) | — | — | 2,691 | (145 | ) | |||||||||||||||
Other investments | — | — | 44 | (26 | ) | 44 | (26 | ) | |||||||||||||||
Total temporary impaired securities | $ | 25,085 | $ | (1,081 | ) | $ | 2,058 | $ | (609 | ) | $ | 27,143 | $ | (1,690 | ) |
December 31, 2012 | |||||||||||||||||||||||
In Loss Position Less than 12 months | In Loss Position Greater than 12 months | Total | |||||||||||||||||||||
Fair market value | Unrealized Losses | Fair market value | Unrealized Losses | Fair market value | Unrealized Losses | ||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
Corporate debt | $ | 7,419 | $ | (212 | ) | $ | 406 | $ | (119 | ) | $ | 7,825 | $ | (331 | ) | ||||||||
Preferred stock | 685 | (35 | ) | 1,504 | (158 | ) | 2,189 | (193 | ) | ||||||||||||||
Common stock | 3,323 | (609 | ) | 625 | (387 | ) | 3,948 | (996 | ) | ||||||||||||||
Mutual funds: | |||||||||||||||||||||||
Equity | 1,613 | (25 | ) | 632 | (53 | ) | 2,245 | (78 | ) | ||||||||||||||
Fixed income | 3,085 | (40 | ) | — | — | 3,085 | (40 | ) | |||||||||||||||
Other investments | — | — | 30 | (15 | ) | 30 | (15 | ) | |||||||||||||||
Total temporary impaired securities | $ | 16,125 | $ | (921 | ) | $ | 3,197 | $ | (732 | ) | $ | 19,322 | $ | (1,653 | ) |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2013 | 2012 | 2013 | ||||||||||||
Investment income | $ | 1,089 | $ | 917 | $ | 1,951 | $ | 1,523 | |||||||
Realized gains | 603 | 1,087 | 1,338 | 6,214 | |||||||||||
Realized losses | (1,727 | ) | (221 | ) | (2,177 | ) | (5,553 | ) | |||||||
Expenses and taxes | (793 | ) | (807 | ) | (1,003 | ) | (1,055 | ) | |||||||
Increase (decrease) in deferred preneed funeral receipts held in trust | 828 | (976 | ) | (109 | ) | (1,129 | ) | ||||||||
$ | — | $ | — | $ | — | $ | — |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2013 | 2012 | 2013 | ||||||||||||
Purchases | $ | (13,721 | ) | $ | (7,903 | ) | $ | (31,594 | ) | $ | (11,089 | ) | |||
Sales | 13,619 | 10,313 | 31,793 | 14,228 |
7. | PRENEED CEMETERY RECEIVABLES |
June 30, 2013 | |||
Beginning balance | $ | 1,903 | |
Write-offs and cancellations | (934 | ) | |
Provision | 438 | ||
Assets held for sale reclassification | (57 | ) | |
Ending balance | $ | 1,350 |
31-60 Past Due | 61-90 Past Due | 91-120 Past Due | >120 Past Due | Total Past Due | Current | Total Financing Receivables | |||||||||||||||||||||
Recognized revenue | $ | 506 | $ | 315 | $ | 165 | $ | 789 | $ | 1,775 | $ | 19,034 | $ | 20,809 | |||||||||||||
Deferred revenue | 215 | 121 | 87 | 320 | 743 | 8,568 | 9,311 | ||||||||||||||||||||
Total contracts | $ | 721 | $ | 436 | $ | 252 | $ | 1,109 | $ | 2,518 | $ | 27,602 | $ | 30,120 |
8. | RECEIVABLES FROM PRENEED TRUSTS |
December 31, 2012 | June 30, 2013 | ||||||
Preneed trust funds, at cost | $ | 26,671 | $ | 13,976 | |||
Less: allowance for contract cancellation | (800 | ) | (419 | ) | |||
Receivables from preneed trusts, net | $ | 25,871 | $ | 13,557 |
9. | CONTRACTS SECURED BY INSURANCE |
10. | CEMETERY PERPETUAL CARE TRUST INVESTMENTS |
December 31, 2012 | June 30, 2013 | ||||||
Trust assets, at fair value | $ | 46,542 | $ | 39,485 | |||
Pending withdrawals of income | (659 | ) | (464 | ) | |||
Pending deposits | 37 | 112 | |||||
Care trusts’ corpus | $ | 45,920 | $ | 39,133 |
Fair Value Hierarchy Level | Cost | Unrealized Gains | Unrealized Losses | Fair Market Value | |||||||||||||
Cash and money market accounts | 1 | $ | 4,025 | $ | — | $ | — | $ | 4,025 | ||||||||
Fixed income securities: | |||||||||||||||||
Foreign debt | 2 | 1,451 | 40 | (41 | ) | 1,450 | |||||||||||
Corporate debt | 2 | 18,961 | 391 | (549 | ) | 18,803 | |||||||||||
Preferred stock | 2 | 9,818 | 169 | (22 | ) | 9,965 | |||||||||||
Mortgage backed securities | 2 | — | — | — | — | ||||||||||||
Common stock | 1 | 4,672 | 439 | (376 | ) | 4,735 | |||||||||||
Trust securities | $ | 38,927 | $ | 1,039 | $ | (988 | ) | $ | 38,978 | ||||||||
Accrued investment income | $ | 507 | $ | 507 | |||||||||||||
Cemetery perpetual care trust investments | $ | 39,485 | |||||||||||||||
Fair market value as a percentage of cost | 100.1 | % |
Due in one year or less | $ | — | |
Due in one to five years | 4,877 | ||
Due in five to ten years | 8,146 | ||
Thereafter | 17,195 | ||
$ | 30,218 |
Fair Value Hierarchy Level | Cost | Unrealized Gains | Unrealized Losses | Fair Market Value | |||||||||||||
Cash and money market accounts | 1 | $ | 545 | $ | — | $ | — | $ | 545 | ||||||||
Fixed income securities: | |||||||||||||||||
Foreign debt | 2 | 1,267 | 284 | — | 1,551 | ||||||||||||
Corporate debt | 2 | 24,324 | 556 | (323 | ) | 24,557 | |||||||||||
Preferred stock | 2 | 14,225 | 525 | (187 | ) | 14,563 | |||||||||||
Mortgage backed securities | 2 | 1 | — | — | 1 | ||||||||||||
Common stock | 1 | 5,563 | 22 | (969 | ) | 4,616 | |||||||||||
Trust securities | $ | 45,925 | $ | 1,387 | $ | (1,479 | ) | $ | 45,833 | ||||||||
Accrued investment income | $ | 709 | $ | 709 | |||||||||||||
Cemetery perpetual care investments | $ | 46,542 | |||||||||||||||
Market value as a percentage of cost | 99.8 | % |
June 30, 2013 | |||||||||||||||||||||||
In Loss Position Less than 12 months | In Loss Position Greater than 12 months | Total | |||||||||||||||||||||
Fair market value | Unrealized Losses | Fair market value | Unrealized Losses | Fair market value | Unrealized Losses | ||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
Foreign debt | $ | 1,013 | $ | (41 | ) | $ | — | $ | — | $ | 1,013 | $ | (41 | ) | |||||||||
Corporate debt | 8,616 | (306 | ) | 578 | (244 | ) | 9,194 | (550 | ) | ||||||||||||||
Preferred stock | 2,097 | (21 | ) | — | — | 2,097 | (21 | ) | |||||||||||||||
Common stock | 1,177 | (234 | ) | 438 | (142 | ) | 1,615 | (376 | ) | ||||||||||||||
Total temporary impaired securities | $ | 12,903 | $ | (602 | ) | $ | 1,016 | $ | (386 | ) | $ | 13,919 | $ | (988 | ) |
December 31, 2012 | |||||||||||||||||||||||
In Loss Position Less than 12 months | In Loss Position Greater than 12 months | Total | |||||||||||||||||||||
Fair market value | Unrealized Losses | Fair market value | Unrealized Losses | Fair market value | Unrealized Losses | ||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
Corporate debt | $ | 7,236 | $ | (207 | ) | $ | 396 | $ | (116 | ) | $ | 7,632 | $ | (323 | ) | ||||||||
Preferred stock | 664 | (34 | ) | 1,459 | (153 | ) | 2,123 | (187 | ) | ||||||||||||||
Common stock | 3,231 | (593 | ) | 608 | (376 | ) | 3,839 | (969 | ) | ||||||||||||||
Total temporary impaired securities | $ | 11,131 | $ | (834 | ) | $ | 2,463 | $ | (645 | ) | $ | 13,594 | $ | (1,479 | ) |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2013 | 2012 | 2013 | ||||||||||||
Undistributable realized gains | $ | 1,269 | $ | 1,063 | $ | 2,400 | $ | 1,087 | |||||||
Undistributable realized losses | (1,027 | ) | (103 | ) | (1,079 | ) | (398 | ) | |||||||
Decrease in care trusts’ corpus | (242 | ) | (960 | ) | (1,321 | ) | (689 | ) | |||||||
$ | — | $ | — | $ | — | $ | — |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2013 | 2012 | 2013 | ||||||||||||
Interest and dividends | $ | 1,152 | $ | 1,234 | $ | 2,303 | $ | 2,469 | |||||||
Realized gains | 300 | 600 | 300 | 1,161 | |||||||||||
Expenses | — | (266 | ) | — | (478 | ) | |||||||||
Total | $ | 1,452 | $ | 1,568 | $ | 2,603 | $ | 3,152 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2013 | 2012 | 2013 | ||||||||||||
Purchases | $ | (21,520 | ) | $ | (7,252 | ) | $ | (37,737 | ) | $ | (9,838 | ) | |||
Sales | 21,644 | 8,674 | 38,265 | 11,795 |
11. | FAIR VALUE MEASUREMENTS |
• | Level 1 – Fair value of securities based on unadjusted quoted prices for identical assets or liabilities in active markets. Our investments classified as Level 1 securities include cash, common stock, U.S.treasury debt, U.S. agency obligations and equity mutual funds. |
• | Level 2 – Fair value of securities estimated based on quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted market prices that are observable or that can be corroborated by observable market data by correlation. These inputs include interest rates, yield curves, credit risk, prepayment speeds, rating and tax-exempt status. Our investments classified as Level 2 securities include corporate debt, preferred stocks, foreign debt, mortgage backed securities, certain fixed income securities and fixed income mutual funds. |
• | Level 3 – Unobservable inputs based upon the reporting entity’s internally developed assumptions which market participants would use in pricing the asset or liability. As of June 30, 2013, we did not have any assets that had fair values determined by Level 3 inputs and no liabilities measured at fair value. |
12. | LONG-TERM DEBT |
December 31, 2012 | June 30, 2013 | ||||||
Revolving credit facility, secured, floating rate | $ | 44,700 | $ | 34,600 | |||
Term loan, secured, floating rate | 127,500 | 122,500 | |||||
Acquisition debt | 2,427 | 2,095 | |||||
Less: current portion | (11,086 | ) | (11,974 | ) | |||
Total long-term debt | $ | 163,541 | $ | 147,221 |
13. | COMMITMENTS AND CONTINGENCIES |
14. | STOCK-BASED COMPENSATION |
2013 | |||
Dividend yield | 0.6 | % | |
Expected volatility | 33.63 | % | |
Risk-free interest rate | 0.41 | % | |
Expected life (years) | 3.56 |
2013 | |||
Dividend yield | 0.6 | % | |
Expected volatility | 31 | % | |
Risk-free interest rate | 0.08%, 0.12%, 0.135%, 0.15% | ||
Expected life (years) | 0.25, 0.50, 0.75, 1.00 |
15. | STOCKHOLDERS' EQUITY |
Accumulated Other Comprehensive Income | |||
Balance at December 31, 2012 | $ | — | |
Increase in net unrealized gains associated with available-for-sale securities of the trusts | 1,993 | ||
Reclassification of net unrealized gain activity attributable to the Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus’ | (1,993 | ) | |
Balance at June 30, 2013 | $ | — |
16. | MAJOR SEGMENTS OF BUSINESS |
Funeral | Cemetery | Corporate | Consolidated | ||||||||||||
Revenues from continuing operations: | |||||||||||||||
Six months ended June 30, 2013 | $ | 85,937 | $ | 25,638 | $ | — | $ | 111,575 | |||||||
Six months ended June 30, 2012 | $ | 76,645 | $ | 22,714 | $ | — | $ | 99,359 | |||||||
Income (loss) from continuing operations before income taxes: | |||||||||||||||
Six months ended June 30, 2013 | $ | 27,243 | $ | 7,807 | $ | (19,512 | ) | $ | 15,538 | ||||||
Six months ended June 30, 2012 | $ | 23,863 | $ | 5,911 | $ | (19,068 | ) | $ | 10,706 | ||||||
Total assets: | |||||||||||||||
June 30, 2013 | $ | 487,572 | $ | 237,608 | $ | 14,930 | $ | 740,110 | |||||||
December 31, 2012 | $ | 481,356 | $ | 237,897 | $ | 18,832 | $ | 738,085 |
17. | SUPPLEMENTAL DISCLOSURE OF STATEMENT OF OPERATIONS INFORMATION |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2013 | 2012 | 2013 | ||||||||||||
Revenues | |||||||||||||||
Goods | |||||||||||||||
Funeral | $ | 14,634 | $ | 15,962 | $ | 30,386 | $ | 33,978 | |||||||
Cemetery | 7,698 | 8,444 | 14,451 | 15,591 | |||||||||||
Total goods | $ | 22,332 | $ | 24,406 | $ | 44,837 | $ | 49,569 | |||||||
Services | |||||||||||||||
Funeral | $ | 20,163 | $ | 22,101 | $ | 42,321 | $ | 47,010 | |||||||
Cemetery | 2,280 | 2,456 | 4,497 | 5,068 | |||||||||||
Total services | $ | 22,443 | $ | 24,557 | $ | 46,818 | $ | 52,078 | |||||||
Financial revenue | |||||||||||||||
Preneed funeral commission income | $ | 450 | $ | 481 | $ | 901 | $ | 989 | |||||||
Preneed funeral trust earnings | 1,364 | 2,235 | 3,037 | 3,960 | |||||||||||
Cemetery trust earnings | 1,626 | 2,087 | 2,946 | 4,281 | |||||||||||
Cemetery finance charges | 462 | 388 | 820 | 698 | |||||||||||
Total financial revenue | $ | 3,902 | $ | 5,191 | $ | 7,704 | $ | 9,928 | |||||||
Total revenues | $ | 48,677 | $ | 54,154 | $ | 99,359 | $ | 111,575 | |||||||
Cost of revenues | |||||||||||||||
Goods | |||||||||||||||
Funeral | $ | 12,259 | $ | 12,935 | $ | 24,454 | $ | 27,006 | |||||||
Cemetery | 5,782 | 6,035 | 11,046 | 11,156 | |||||||||||
Total goods | $ | 18,041 | $ | 18,970 | $ | 35,500 | $ | 38,162 | |||||||
Services | |||||||||||||||
Funeral | $ | 10,440 | $ | 11,303 | $ | 20,853 | $ | 23,243 | |||||||
Cemetery | 1,500 | 1,556 | 3,032 | 3,201 | |||||||||||
Total services | $ | 11,940 | $ | 12,859 | $ | 23,885 | $ | 26,444 | |||||||
Financial expenses | |||||||||||||||
Preneed funeral commissions | $ | 349 | $ | 333 | $ | 700 | $ | 746 | |||||||
Trust administration fees | — | 46 | — | 95 | |||||||||||
Total financial expenses | $ | 349 | $ | 379 | $ | 700 | $ | 841 | |||||||
Total cost of revenues | $ | 30,330 | $ | 32,208 | $ | 60,085 | $ | 65,447 |
18. | SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
For the Six Months Ended June 30, | |||||||
2012 | 2013 | ||||||
Cash paid for interest and financing costs | $ | 8,968 | $ | 6,455 | |||
Cash paid for income taxes | 818 | 154 | |||||
Fair value of stock, stock options and performance awards issued to directors, officers and certain employees | 2,650 | 3,350 | |||||
Restricted common stock withheld for payroll taxes | 303 | 1,383 | |||||
Net deposits from preneed funeral trusts | (285 | ) | (10,337 | ) | |||
Net deposits from preneed cemetery trusts | (856 | ) | (3,535 | ) | |||
Net withdrawals from perpetual care trusts | 874 | 186 | |||||
Net increase in preneed receivables | (450 | ) | (2,108 | ) | |||
Net withdrawals of receivables from preneed trusts | 121 | 12,323 | |||||
Net change in preneed funeral receivables decreasing deferred revenue | (279 | ) | (6,963 | ) | |||
Net change in preneed cemetery receivables increasing/(decreasing) deferred revenue | 102 | (2,792 | ) | ||||
Net deposits into preneed funeral trust accounts increasing deferred preneed funeral receipts held in trust | 285 | 10,337 | |||||
Net deposits into cemetery trust accounts increasing deferred cemetery receipts held in trust | 856 | 3,535 | |||||
Net deposits (withdrawals) into (from) perpetual care trust accounts decreasing perpetual care trusts’ corpus | (973 | ) | 7 |
19. | EARNINGS PER SHARE |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2012 | 2013 | 2012 | 2013 | ||||||||||||
Net income | $ | 2,663 | $ | 4,144 | $ | 7,122 | $ | 9,403 | |||||||
Net income allocated to non-vested share awards | (85 | ) | (73 | ) | (196 | ) | (170 | ) | |||||||
Preferred stock dividend | (3 | ) | — | (7 | ) | (4 | ) | ||||||||
Undistributed earnings available to common stockholders | $ | 2,575 | $ | 4,071 | $ | 6,919 | $ | 9,229 | |||||||
Income from discontinued operations | 203 | 539 | 742 | 366 | |||||||||||
Undistributed earnings from continuing operations available to common stockholders | $ | 2,372 | $ | 3,532 | $ | 6,177 | $ | 8,863 | |||||||
Weighted average number of common shares outstanding for basic EPS computation | 18,077 | 18,201 | 18,171 | 18,170 | |||||||||||
Effect of dilutive securities: | — | ||||||||||||||
Stock options | 76 | 164 | 66 | 181 | |||||||||||
Convertible junior subordinated debentures | — | — | — | 4,392 | |||||||||||
Weighted average number of common and common equivalent shares outstanding for diluted EPS computation | 18,153 | 18,365 | 18,237 | 22,743 | |||||||||||
Basic earnings per common share: | |||||||||||||||
Undistributed earnings | $ | 0.14 | $ | 0.20 | $ | 0.34 | $ | 0.49 | |||||||
Allocation of earnings to non-vested share awards | — | — | 0.01 | 0.01 | |||||||||||
Basic earnings per share from continuing operations | $ | 0.14 | $ | 0.20 | $ | 0.35 | $ | 0.50 | |||||||
Discontinued operations | 0.01 | 0.03 | 0.04 | 0.02 | |||||||||||
Basic earnings per common share | $ | 0.15 | $ | 0.23 | $ | 0.39 | $ | 0.52 | |||||||
Diluted earnings per common share: | |||||||||||||||
Undistributed earnings | $ | 0.14 | $ | 0.20 | $ | 0.34 | $ | 0.45 | |||||||
Allocation of earnings to non-vested share awards | — | — | 0.01 | $ | 0.01 | ||||||||||
Diluted earnings per share from continuing operations | $ | 0.14 | $ | 0.20 | $ | 0.35 | $ | 0.46 | |||||||
Discontinued operations | 0.01 | 0.03 | 0.04 | 0.02 | |||||||||||
Diluted earnings per common share | $ | 0.15 | $ | 0.23 | $ | 0.39 | $ | 0.48 |
For the Three Months Ended June 30, 2013 | ||||||||||
Income (Numerator) | Shares (Denominator) | Per-Share Amount | ||||||||
Net income | $ | 4,144 | ||||||||
Less: Preferred Stock dividends | — | |||||||||
Basic earnings per share | ||||||||||
Net income available to common stockholders | 4,144 | 18,201 | $ | 0.23 | ||||||
Effect of dilutive securities | ||||||||||
Stock options | — | 164 | ||||||||
Convertible junior subordinated debentures | — | — | ||||||||
Diluted earnings per share | ||||||||||
Net income available to common stockholders and assumed conversions | $ | 4,144 | 18,365 | $ | 0.23 |
For the Six Months Ended June 30, 2013 | ||||||||||
Income (Numerator) | Shares (Denominator) | Per-Share Amount | ||||||||
Net income | $ | 9,403 | ||||||||
Less: Preferred Stock dividends | (4 | ) | ||||||||
Basic earnings per share | ||||||||||
Net income available to common stockholders | 9,399 | 18,170 | $ | 0.52 | ||||||
Effect of dilutive securities | ||||||||||
Stock options | — | 181 | ||||||||
Convertible junior subordinated debentures | 1,474 | 4,392 | ||||||||
Diluted earnings per share | ||||||||||
Net income available to common stockholders and assumed conversions | $ | 10,873 | 22,743 | $ | 0.48 |
20. | SUBSEQUENT EVENTS |
• | the execution of our Standards Operating Model; |
• | changes in the number of deaths in our markets; |
• | changes in consumer preferences; |
• | ability to find and retain skilled personnel; |
• | the effects of competition; |
• | the investment performance of our funeral and cemetery trust funds; |
• | fluctuations in interest rates; |
• | our ability to obtain debt or equity financing on satisfactory terms to fund additional acquisitions, expansion projects, working capital requirements and the repayment or refinancing of indebtedness; |
• | death benefits related to preneed funeral contracts funded through life insurance contracts; |
• | our ability to generate preneed sales; |
• | the financial condition of third-party insurance companies that fund our preneed funeral contracts; |
• | increased or unanticipated costs, such as insurance or taxes; |
• | effects of the application of applicable laws and regulations, including changes in such regulations or the interpretation thereof; |
• | consolidation of the deathcare industry; and |
• | other factors and uncertainties inherent in the deathcare industry. |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Balanced Operating Model – We believe a decentralized structure works best in the deathcare industry. Successful execution of the Standards Operating Model is highly dependent on strong local leadership, intelligent risk taking, entrepreneurial drive and corporate support aligned with the key drivers of a successful operation organized around three primary areas - market share, people and operating financial metrics. |
• | Incentives Aligned with Standards – We believe empowering Managing Partners to do the right things in their operations and local communities, and providing appropriate support with operating and financial practices, will enable long-term growth and sustainable profitability. Each Managing Partner participates in a variable bonus plan whereby he or she earns a percentage of his or her respective business' earnings based upon the actual standards achieved as long as the performance exceeds our minimum standards. |
• | The Right Local Leadership – Successful execution of our operating model is highly dependent on strong local leadership as defined by our 4E Leadership Model, intelligent risk taking and entrepreneurial empowerment. A Managing Partner’s performance is judged according to achievement of the Standards Operating Model for that business. |
• | Size of business; |
• | Size of market; |
• | Competitive standing; |
• | Local market demographics; |
• | Strength of brand; and |
• | Barriers to entry. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(In millions) | 2012 | 2013 | 2012 | 2013 | |||||||||||
Net income from continuing operations, as reported | $ | 2.5 | $ | 3.6 | $ | 6.4 | $ | 9.0 | |||||||
After-tax special items: | |||||||||||||||
Withdrawable trust income | — | 0.1 | 0.5 | 0.5 | |||||||||||
Acquisition expenses | 0.2 | 0.1 | 0.4 | 0.1 | |||||||||||
Severance costs | — | 0.3 | 0.3 | 0.5 | |||||||||||
Costs related to credit facility | — | 0.3 | — | 0.3 | |||||||||||
Other special items | — | 0.2 | 0.1 | 0.2 | |||||||||||
Non-GAAP net income | $ | 2.7 | $ | 4.6 | $ | 7.7 | $ | 10.6 |
Three Months Ended June 30, | Change | |||||||||||||
2012 | 2013 | Amount | % | |||||||||||
Revenues: | ||||||||||||||
Same store operating revenue | $ | 28,867 | $ | 29,369 | $ | 502 | 1.7 | % | ||||||
Acquired operating revenue | 5,930 | 8,694 | 2,764 | 46.6 | % | |||||||||
Preneed funeral insurance commissions | 450 | 481 | 31 | 6.9 | % | |||||||||
Preneed funeral trust earnings | 1,364 | 2,235 | 871 | 63.9 | % | |||||||||
Total | $ | 36,611 | $ | 40,779 | $ | 4,168 | 11.4 | % | ||||||
Operating profit: | ||||||||||||||
Same store operating profit | $ | 10,322 | $ | 11,276 | $ | 954 | 9.2 | % | ||||||
Acquired operating profit | 1,776 | 2,549 | 773 | 43.5 | % | |||||||||
Preneed funeral insurance commissions | 101 | 162 | 61 | 60.4 | % | |||||||||
Preneed funeral trust earnings | 1,364 | 2,221 | 857 | 62.8 | % | |||||||||
Total | $ | 13,563 | $ | 16,208 | $ | 2,645 | 19.5 | % |
Six Months Ended June 30, | Change | |||||||||||||
2012 | 2013 | Amount | % | |||||||||||
Revenues: | ||||||||||||||
Same store operating revenue | $ | 60,383 | $ | 62,540 | $ | 2,157 | 3.6 | % | ||||||
Acquired operating revenue | 12,324 | 18,448 | 6,124 | 49.7 | % | |||||||||
Preneed funeral insurance commissions | 901 | 989 | 88 | 9.8 | % | |||||||||
Preneed funeral trust earnings | 3,037 | 3,960 | 923 | 30.4 | % | |||||||||
Total | $ | 76,645 | $ | 85,937 | $ | 9,292 | 12.1 | % | ||||||
Operating profit: | ||||||||||||||
Same store operating profit | $ | 23,154 | $ | 24,825 | $ | 1,671 | 7.2 | % | ||||||
Acquired operating profit | 4,246 | 5,914 | 1,668 | 39.3 | % | |||||||||
Preneed funeral insurance commissions | 201 | 272 | 71 | 35.3 | % | |||||||||
Preneed funeral trust earnings | 3,037 | 3,931 | 894 | 29.4 | % | |||||||||
Total | $ | 30,638 | $ | 34,942 | $ | 4,304 | 14.0 | % |
Three Months Ended June 30, | Change | |||||||||||||
2012 | 2013 | Amount | % | |||||||||||
Revenues: | ||||||||||||||
Same store operating revenue | $ | 9,978 | $ | 10,826 | $ | 848 | 8.5 | % | ||||||
Acquired operating revenue | — | 74 | 74 | n/a | ||||||||||
Cemetery trust earnings | 1,626 | 2,087 | 461 | 28.4 | % | |||||||||
Preneed cemetery finance charges | 462 | 388 | (74 | ) | (16.0 | )% | ||||||||
Total | $ | 12,066 | $ | 13,375 | $ | 1,309 | 10.8 | % | ||||||
Operating profit: | ||||||||||||||
Same store operating profit | $ | 2,705 | $ | 3,328 | $ | 623 | 23.0 | % | ||||||
Acquired operating loss | (9 | ) | (19 | ) | (10 | ) | n/a | |||||||
Cemetery trust earnings | 1,626 | 2,041 | 415 | 25.5 | % | |||||||||
Preneed cemetery finance charges | 462 | 388 | (74 | ) | (16.0 | )% | ||||||||
Total | $ | 4,784 | $ | 5,738 | $ | 954 | 19.9 | % |
Six Months Ended June 30, | Change | |||||||||||||
2012 | 2013 | Amount | % | |||||||||||
Revenues: | ||||||||||||||
Same store operating revenue | $ | 18,948 | $ | 20,516 | $ | 1,568 | 8.3 | % | ||||||
Acquired operating revenue | — | 143 | 143 | n/a | ||||||||||
Cemetery trust earnings | 2,946 | 4,281 | 1,335 | 45.3 | % | |||||||||
Preneed cemetery finance charges | 820 | 698 | (122 | ) | (14.9 | )% | ||||||||
Total | $ | 22,714 | $ | 25,638 | $ | 2,924 | 12.9 | % | ||||||
Operating profit: | ||||||||||||||
Same store operating profit | $ | 4,879 | $ | 6,347 | $ | 1,468 | 30.1 | % | ||||||
Acquired operating loss | (9 | ) | (45 | ) | (36 | ) | n/a | |||||||
Cemetery trust earnings | 2,946 | 4,186 | 1,240 | 42.1 | % | |||||||||
Preneed cemetery finance charges | 820 | 698 | (122 | ) | (14.9 | )% | ||||||||
Total | $ | 8,636 | $ | 11,186 | $ | 2,550 | 29.5 | % |
Six Months Ended June 30, | |||||||
2012 | 2013 | ||||||
Cash at January 1st | $ | 1.1 | $ | 1.7 | |||
Cash flow from operating activities | 13.4 | 24.0 | |||||
Acquisitions and new construction | (16.7 | ) | (6.0 | ) | |||
Proceeds from the sale of businesses | — | 2.7 | |||||
Borrowings (payments) on our Credit Facility | 14.2 | (15.1 | ) | ||||
Maintenance capital expenditures | (2.3 | ) | (3.0 | ) | |||
Dividends on common stock | (0.9 | ) | (0.9 | ) | |||
Repurchase of common stock | (4.5 | ) | — | ||||
Growth capital expenditures | (3.4 | ) | (1.5 | ) | |||
Other financing costs | 0.1 | (0.4 | ) | ||||
Cash at June 30th | $ | 1.0 | $ | 1.5 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 6. | Exhibits |
Exhibit No. | Description | |
*10.1 | Incentive Stock Option Agreement Under Carriage Services, Inc. Second Amended and Restated 2006 Long-term Incentive Plan. | |
*10.2 | Restricted Stock Agreement Under Carriage Services, Inc. Second Amended and Restated 2006 Long-term Incentive Plan. | |
10.3 | Separation and Consulting Agreement and General Release, dated July 31, 2013 and between Carriage Services, Inc. and George J. Klug, Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed July 31, 2013. | |
*31.1 | Certification of Periodic Financial Reports by Melvin C. Payne in satisfaction of Section 302 of the Sarbanes-Oxley Act of 2002. | |
*31.2 | Certification of Periodic Financial Reports by L. William Heiligbrodt in satisfaction of Section 302 of the Sarbanes-Oxley Act of 2002. | |
*32 | Certification of Periodic Financial Reports by Melvin C. Payne and L. William Heiligbrodt in satisfaction of Section 906 of the Sarbanes-Oxley Act of 2002 and 18 U.S.C. Section 1350. | |
**101 | Interactive Data Files. |
* | Filed or furnished herewith, as applicable. |
** | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability. |
CARRIAGE SERVICES, INC. | ||
Date: | August 8, 2013 | /s/ L. William Heiligbrodt |
L. William Heiligbrodt | ||
Vice Chairman of the Board, Executive | ||
Vice President and Secretary | ||
(Principal Financial Officer and Duly Authorized Officer) |
Exhibit No. | Description | |
*10.1 | Incentive Stock Option Agreement Under Carriage Services, Inc. Second Amended and Restated 2006 Long-term Incentive Plan | |
*10.2 | Restricted Stock Agreement Under Carriage Services, Inc. Second Amended and Restated 2006 Long-term Incentive Plan | |
10.3 | Separation and Consulting Agreement and General Release, dated July 31, 2013 and between Carriage Services, Inc. and George J. Klug, Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed July 31, 2013. | |
*31.1 | Certification of Periodic Financial Reports by Melvin C. Payne in satisfaction of Section 302 of the Sarbanes-Oxley Act of 2002. | |
*31.2 | Certification of Periodic Financial Reports by L. William Heiligbrodt in satisfaction of Section 302 of the Sarbanes-Oxley Act of 2002. | |
*32 | Certification of Periodic Financial Reports by Melvin C. Payne and L. William Heiligbrodt in satisfaction of Section 906 of the Sarbanes-Oxley Act of 2002 and 18 U.S.C. Section 1350. | |
**101 | Interactive Data Files. |
* | Filed or furnished herewith, as applicable. |
** | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability. |
Name of Participant: | |
Option Period: | Five (5) years |
Number of Shares: | |
Exercise Price Per Share: | $ |
Vesting Schedule: | Subject to Section 7.5 of the Plan, the Option shall become vested with respect to 33⅓% of the total number of shares subject to the Option on each of the first three anniversaries of the Grant Date. |
DATED:_____________________, ________. | |
Name | |
Social Security Number | |
Address | |
City State Zip |
Percentage of Shares on | |
Date | Which Restrictions Lapse |
First Anniversary of Grant Date | 33% |
Second Anniversary of Grant Date | 33% |
Third Anniversary of Grant Date | 33% |
1. | I have reviewed this report on Form 10-Q of Carriage Services, Inc. (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Dated: | August 8, 2013 | /s/ Melvin C. Payne | |
Melvin C. Payne | |||
Chairman of the Board and | |||
Chief Executive Officer | |||
(Principal Executive Officer) |
1. | I have reviewed this report on Form 10-Q of Carriage Services, Inc. (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Dated: | August 8, 2013 | /s/ L. William Heiligbrodt | |
L. William Heiligbrodt | |||
Vice Chairman of the Board, Executive | |||
Vice President and Secretary | |||
(Principal Financial Officer) |
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: | August 8, 2013 | /s/ Melvin C. Payne | |
Melvin C. Payne | |||
Chairman of the Board and | |||
Chief Executive Officer | |||
(Principal Executive Officer) | |||
/s/ L. William Heiligbrodt | |||
L. William Heiligbrodt | |||
Vice Chairman of the Board, Executive | |||
Vice President and Secretary | |||
(Principal Financial Officer) |
Stock-Based Compensation Stock-Based Compensation (ESPP) (Details) (ESPP, USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Mar. 31, 2013
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Sep. 30, 2012
|
Dec. 31, 2012
|
Sep. 30, 2013
Scenario, Forecast [Member]
|
Dec. 31, 2013
Scenario, Forecast [Member]
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based compensation expense | $ 88 | $ 33 | $ 187 | $ 73 | ||||||
Expected dividend yield assumption (in Percent) | 0.60% | |||||||||
Expected volatility assumption (in Percent) | 31.00% | |||||||||
Risk-free interest rate assumption (in Percent) | 0.08% | 0.02% | 0.12% | 0.06% | 0.09% | 0.12% | 0.135% | 0.15% | ||
Expected life assumption (in Years) | 3 months | 3 months | 6 months | 6 months | 9 months | 1 year | 9 months | 1 year |
Long-Term Debt
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT The Company's senior long-term debt consisted of the following at December 31, 2012 and June 30, 2013 (in thousands):
As of June 30, 2013, we had a $255 million secured bank credit facility (the “Credit Facility”) with Bank of America, N.A. as Administrative Agent comprised of a $125 million revolving credit facility and a $130 million term loan. The Credit Facility also contains an accordion provision to borrow up to an additional $40 million in revolving loans, subject to certain conditions. The Credit Facility is set to mature on September 30, 2017 and is collateralized by all personal property and funeral home real property in certain states. As of June 30, 2013, $34.6 million was drawn under the revolving credit facility and $122.5 million was outstanding on the term loan. No letters of credit were issued and outstanding under the Credit Facility at June 30, 2013. Under the Credit Facility, outstanding borrowings bear interest at either a prime rate or a LIBOR rate, plus an applicable margin based upon the Company's leverage ratio. At June 30, 2013, the prime rate margin was equivalent to 2.00% and the LIBOR margin was 3.00%. The weighted average interest rate on the Credit Facility for the three and six months ended June 30, 2013 was 3.3% and 3.5%, respectively. On April 24, 2013, the Company entered into a Third amendment to the Credit Facility (the “Third Amendment”), which increased the revolving credit commitments under the Credit Facility from $105 million to $125 million and decreased the interest rate margin. The Third Amendment decreased the applicable margin for the Company's outstanding borrowings (for both prime rate and LIBOR base rates) by 50 basis points at each leverage ratio threshold. During the second quarter, in connection with this Third Amendment, we recorded a pretax charge of approximately $0.4 million to write off the unamortized loan costs. The Third Amendment also contains amendments which (a) allow the Company to issue subordinated debt or convertible subordinated debt in an amount not to exceed $100 million, (b) provide the Company with the ability to repurchase up to $15 million worth of stock-based employee awards and (c) allow for the Company to refinance its existing convertible junior subordinated debentures with the proceeds of certain issuances of subordinated debt or convertible subordinated debt. We have no material assets or operations independent of our subsidiaries. All assets and operations are held and conducted by subsidiaries, each of which (except for the Trust, which is a single purpose entity that holds our 7% debentures issued in connection with the issuance of the Trust’s term income deferrable equity securities (TIDES) 7% convertible preferred securities) have fully and unconditionally guaranteed our obligations under the Credit Facility. Additionally, we do not currently have any significant restrictions on our ability to receive dividends or loans from any subsidiary guarantor under the Credit Facility. We were in compliance with the covenants contained in the Credit Facility as of June 30, 2013. The Credit Facility calls for key ratios that we must comply with including a requirement to maintain a leverage ratio of no more than 3.75 to 1.00 through June 29, 2014 and no more than 3.50 to 1.00 thereafter, and a covenant to maintain a fixed charge coverage ratio of no less than 1.20 to 1.00. As of June 30, 2013, the leverage ratio was 2.77 to 1.00 and the fixed charge coverage ratio was 2.28 to 1.00. Acquisition debt consists of deferred purchase price and promissory notes payable to sellers. A majority of the notes bear interest ranging from 7.0% to 11.0%. A few notes bear interest at 0% and are discounted at imputed interest rates ranging from 9.5% to 10.0%. Original maturities range from one to ten years. |
Preneed Trust Investments (Components of preneed funeral trust investments) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Preneed funeral trust investments | $ 93,170 | $ 82,896 |
Preneed Funeral Trust Investments [Member]
|
||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Preneed funeral trust investments, at fair value | 95,972 | 85,415 |
Less: allowance for contract cancellation | (2,802) | (2,519) |
Preneed funeral trust investments | $ 93,170 | $ 82,896 |
Goodwill
|
6 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||
GOODWILL | GOODWILL Many of the former owners and staff of acquired funeral homes have provided high quality service to families for generations. The resulting loyalty often represents a substantial portion of the value of a funeral business. The excess of the purchase price over the fair value of net identifiable assets acquired, as determined by management in business acquisition transactions accounted for as purchases, is recorded as goodwill. The following table presents the changes in goodwill in our Consolidated Balance Sheets (in thousands):
The impairment of $0.1 million is related to a business discontinued in the first quarter of 2013 as the carrying value exceeded fair value. |
Earnings Per Share Earnings Per Share
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE Earnings per share for the three and six months ended June 30, 2012 and 2013 is calculated based on the weighted average number of common and common equivalent shares outstanding during the periods. The following table sets forth the computation of the basic and diluted earnings per share for the three and six months ended June 30, 2012 and 2013:
Share-based awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and included in the computation of both basic and diluted earnings per share. Our grants of restricted stock awards to our employees and directors are considered participating securities, and we have prepared our earnings per share calculations to include outstanding unvested restricted stock awards in the basic and diluted weighted average shares outstanding calculation. The fully diluted weighted average shares outstanding for the six months ended June 30, 2013, and the corresponding calculation of fully diluted earnings per share include approximately 4.4 million shares that would be issued upon conversion of our convertible junior subordinated debentures as a result of the application of the if-converted method prescribed by FASB ASC 260-10-45. For the three and six months ended June 30, 2012 and the three months ended June 30, 2013, the conversion of our convertible junior subordinated debentures is excluded from the fully diluted earnings per share calculation and the fully diluted weighted average share count because the inclusion of such converted shares would result in an antidilutive impact. The following table sets forth the reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three months ended June 30, 2013:
The following table sets forth the reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the six months ended June 30, 2013:
|
Cemetery Perpetual Care Trust Investments (Estimated maturities of fixed perpetual care trust income securities) (Details) (Perpetual Care Trust Invesments [Member], USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
---|---|
Perpetual Care Trust Invesments [Member]
|
|
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Due in one year or less | $ 0 |
Due in one to five years | 4,877 |
Due in five to ten years | 8,146 |
Thereafter | 17,195 |
Total | $ 30,218 |
Preneed Trust Investments (Preneed funeral trust investment security transactions) (Details) (Preneed Funeral Trust Investments [Member], Interest Income and Other, Net [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Preneed Funeral Trust Investments [Member] | Interest Income and Other, Net [Member]
|
||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Investment income | $ 917 | $ 1,089 | $ 1,523 | $ 1,951 |
Realized gains | 1,087 | 603 | 6,214 | 1,338 |
Realized losses | (221) | (1,727) | (5,553) | (2,177) |
Expenses and taxes | (807) | (793) | (1,055) | (1,003) |
Decrease in deferred preneed funeral receipts held in trust | $ (976) | $ 828 | $ (1,129) | $ (109) |
Commitments and Contingencies
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation We are a party to various litigation matters and proceedings. For each of our outstanding legal matters, we evaluate the merits of the case, our exposure to the matter, possible legal or settlement strategies and the likelihood of an unfavorable outcome. We intend to defend ourselves in the lawsuits described herein. If we determine that an unfavorable outcome is probable and can be reasonably estimated, we establish the necessary accruals. We hold certain insurance policies that may reduce cash outflows with respect to an adverse outcome of certain of these litigation matters. Leathermon, et al. v. Grandview Memorial Gardens, Inc., et al., United States District Court, Southern District of Indiana, Case No. 4:07-cv-137. On August 17, 2007, five plaintiffs filed a putative class action against the current and past owners of Grandview Cemetery in Madison, Indiana, including our subsidiaries that owned the cemetery from January 1997 until February 2001, on behalf of all individuals who purchased cemetery and burial goods and services at Grandview Cemetery. Plaintiffs are seeking monetary damages and claim that the cemetery owners performed burials negligently, breached Plaintiffs’ contracts and made misrepresentations regarding the cemetery. The Plaintiffs also allege that the claims occurred prior, during and after we owned the cemetery. On October 15, 2007, the case was removed from Jefferson County Circuit Court, Indiana to the Southern District of Indiana. On April 24, 2009, shortly before Defendants had been scheduled to file their briefs in opposition to Plaintiffs’ motion for class certification, Plaintiffs moved to amend their complaint to add new class representatives and claims, while also seeking to abandon other claims. We, as well as several other Defendants, opposed Plaintiffs’ motion to amend their complaint and add parties. In April 2009, two Defendants moved to disqualify Plaintiffs’ counsel from further representing Plaintiffs in this action. On June 30, 2010, the Court granted the Defendants’ motion to disqualify Plaintiffs’ counsel. In that order, the Court gave Plaintiffs 60 days within which to retain new counsel. On May 6, 2010, Plaintiffs filed a petition for writ of mandamus with the Seventh Circuit Court of Appeals seeking relief from the trial court’s order of disqualification of counsel. On May 19, 2010, the Defendants responded to the petition of mandamus. On July 8, 2010, the Seventh Circuit denied Plaintiffs’ petition for writ of mandamus. Thus, pursuant to the trial court’s order, Plaintiffs were given 60 days from July 8, 2010 in which to retain new counsel to prosecute this action on their behalf. Plaintiffs retained new counsel and the trial court granted the newly retained Plaintiffs’ counsel 90 days to review the case and advise the Court whether or not Plaintiffs would seek leave to amend their complaint to add and/or change the allegations as are currently stated therein and whether or not they would seek leave to amend the proposed class representatives for class certification. Plaintiffs moved for leave to amend both the class representatives and the allegations stated within the complaint. Defendants filed oppositions to such amendments. The Court issued an order permitting the Plaintiffs to proceed with amending the class representatives and a portion of their claims; however, certain of Plaintiffs’ claims have been dismissed. Discovery in this matter will now proceed. We intend to defend this action vigorously. Because the lawsuit is in its preliminary stages, we are unable to evaluate the likelihood of an unfavorable outcome to us or to estimate the amount or range of any potential loss, if any, at this time. |
Preneed Trust Investments (Purchases and sales of investments in preneed funeral trusts) (Details) (Preneed Funeral Trust Investments [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Preneed Funeral Trust Investments [Member]
|
||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Purchases | $ (7,903) | $ (13,721) | $ (11,089) | $ (31,594) |
Sales | $ 10,313 | $ 13,619 | $ 14,228 | $ 31,793 |
Supplemental Disclosure of Cash Flow Information (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Disclosure for the Consolidated Statements of Cash Flows | The following information is supplemental disclosure for the Consolidated Statements of Cash Flows (in thousands):
|
Assets Held for Sale and Discontinued Operations (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Held For Sale and Discontinued Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and liabilities associated with the cemetery and funeral home businesses held for sale | Assets and liabilities associated with the businesses held for sale in our Consolidated Balance Sheets at December 31, 2012 and June 30, 2013 consisted of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating results and gain on discontinued operations | The operating results of the discontinued businesses during the periods presented, as well as the gain or loss on the disposal, are presented in the discontinued operations section of the Consolidated Statements of Operations, along with the income tax effect as follows (in thousands):
|
Basis Of Presentation And Summary Of Significant Accounting Policies (Policies)
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation, Policy | Principles of Consolidation The accompanying Consolidated Financial Statements include us and our subsidiaries. All significant intercompany balances and transactions have been eliminated. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Use of Estimates, Policy | Use of Estimates The preparation of the Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, realization of accounts receivable, goodwill, intangible assets, property and equipment and deferred tax assets. We base our estimates on historical experience, third party data and assumptions that we believe to be reasonable under the circumstances. The results of these considerations form the basis for making judgments about the amount and timing of revenues and expenses, the carrying value of assets and the recorded amounts of liabilities. 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, as there can be no assurance that our results of operations will be consistent from year to year. |
Funeral and Cemetery Operations, Policy | Funeral and Cemetery Operations We record the revenue from sales of funeral and cemetery merchandise and services when the merchandise is delivered or the service is performed. Sales of cemetery interment rights are recorded as revenue in accordance with the retail land sales provisions for accounting for sales of real estate. This method provides for the recognition of revenue in the period in which the customer’s cumulative payments exceed 10% of the contract price related to the interment right. Costs related to the sales of interment rights, which include real property and other costs related to cemetery development activities, are charged to operations using the specific identification method in the period in which the sale of the interment right is recognized as revenue. Revenues to be recognized from the delivery of merchandise and performance of services related to contracts that were acquired in acquisitions are typically lower than those originated by the Company. Sales taxes collected are recognized on a net basis in our Consolidated Financial Statements. Allowances for bad debts and customer cancellations are provided at the date that the sale is recognized as revenue and are based on our historical experience and the current economic environment. We also monitor changes in delinquency rates and provide additional bad debt and cancellation reserves when warranted. When preneed sales of funeral services and merchandise are funded through third-party insurance policies, we earn a commission on the sale of the policies. Insurance commissions are recognized as revenues at the point at which the commission is no longer subject to refund, which is typically one year after the policy is issued. |
Discontinued Operations, Policy | Discontinued Operations In accordance with our Strategic Acquisition Model, non-strategic businesses are reviewed to determine whether such businesses should be sold and the proceeds redeployed elsewhere. A marketing plan is then developed for those locations which are identified as held for sale. When we receive a letter of intent and financing commitment from a buyer and the sale is expected to occur within one year, the location is no longer reported within our continuing operations. The assets and liabilities associated with the location are reclassified as held for sale on the Consolidated Balance Sheet and the operating results are presented on a comparative basis in the discontinued operations section of the Consolidated Statements of Operations. During the second quarter of 2013, we sold a funeral home in California, which was reported as held for sale at March 31, 2013. As of June 30, 2013, we had letters of intent outstanding on funeral homes in Kansas and Ohio and cemeteries in Virginia and Florida; as such, these businesses are no longer reported within our continuing operations. The assets and liabilities associated with these locations are included in assets held for sale on the Consolidated Balance Sheet as of June 30, 2013 and the operating results are presented on a comparative basis in the discontinued operations section of the Consolidated Statements of Operations. See Note 4 and Note 20 to the Consolidated Financial Statements herein for more information. |
Business Combinations, Policy | 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 customarily estimate related transaction costs known at closing. To the extent that information not available to us at the closing date of an acquisition subsequently becomes available during the allocation period, we may adjust goodwill, assets, or liabilities associated with such acquisition. Acquisition related costs are recognized separately from acquisitions and are expensed as incurred. During the second quarter of 2012, we completed one acquisition comprised of two funeral homes and one cemetery. There were no acquisitions during the second quarter of 2013. See Note 3 to the Consolidated Financial Statements herein for more information. The excess of the purchase price over the fair value of identifiable net assets of funeral home businesses acquired is recorded as goodwill. Goodwill has primarily been recorded in connection with the acquisition of funeral businesses. Goodwill is tested for impairment by assessing the fair value of each of our reporting units. The funeral segment reporting units consist of our East, Central and West regions in the United States, and we perform our annual impairment test of goodwill using information as of August 31 of each year. In addition, we assess the impairment of goodwill whenever events or changes in circumstances indicate that the carrying value may be greater than fair value. Factors that could trigger an interim impairment review include, but are not limited to, significant adverse changes in the business climate which may be indicated by a decline in our market capitalization or decline in operating results. |
Stock Plans and Stock-Based Compensation, Policy | Stock Plans and Stock-Based Compensation We have stock-based employee and director compensation plans under which we may grant restricted stock, stock options, performance awards and stock from our employee stock purchase plan, which are described in more detail in Note 17 to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2012. We recognize compensation expense in an amount equal to the fair value of the share-based awards expected to vest over the requisite service period. Fair value is determined on the date of the grant. The fair value of options or awards containing options is determined using the Black-Scholes valuation model. The fair value of the performance awards is determined using a Monte-Carlo simulation pricing model. See Note 14 to the Consolidated Financial Statements herein for additional information on our stock-based compensation plans. |
Computation of Earnings Per Common Share, Policy | Computation of Earnings Per Common Share Basic earnings per share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. Dilutive common equivalent shares consist of stock options and convertible junior subordinated debentures. Share-based awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are recognized as participating securities and included in the computation of both basic and diluted earnings per share. Our grants of restricted stock awards to our employees and directors are considered participating securities, and we have prepared our earnings per share calculations to include outstanding unvested restricted stock awards in both the basic and diluted weighted average shares outstanding calculation. See Note 19 to this Consolidated Financial Statements herein for the computations of per share earnings for the three and six month periods ended June 30, 2012 and 2013. |
Preneed Funeral and Cemetery Trust Funds, Policy | Preneed Funeral and Cemetery Trust Funds Our preneed and perpetual care trust funds are reported in accordance with the principles of consolidating Variable Interest Entities (“VIEs”). In the case of preneed trusts, the customers are the legal beneficiaries. In the case of perpetual care trusts, we do not have a right to access the corpus in the perpetual care trusts. For these reasons, we have recognized financial interests of third parties in the trust funds in our financial statements as Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus. The investments of such trust funds are classified as available-for-sale and are reported at fair market value; therefore, the unrealized gains and losses, as well as accumulated and undistributed income and realized gains and losses are recorded to Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus in our Consolidated Balance Sheets. Our future obligations to deliver merchandise and services are reported at estimated settlement amounts. Preneed funeral and cemetery trust investments are reduced by the trust investment earnings that we have been allowed to withdraw in certain states prior to maturity. These earnings, along with preneed contract collections not required to be placed in trust, are recorded in Deferred preneed funeral revenue and Deferred preneed cemetery revenue until the service is performed or the merchandise is delivered. In accordance with respective state laws, we are required to deposit a specified amount into perpetual and memorial care trust funds for each interment/entombment right and certain memorials sold. Income from the trust funds is distributed to us and used to provide care and maintenance for the cemeteries and mausoleums. Such trust fund income is recognized as revenue when realized by the trust and distributable to us. We are restricted from withdrawing any of the principal balances of these funds. An enterprise is required to perform an analysis to determine whether the enterprise’s variable interest(s) give it a controlling financial interest in a VIE. This analysis identifies the primary beneficiary of a VIE as the enterprise that has both the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses of the entity that could potentially be significant to the VIE, or the right to receive benefits from the entity that could potentially be significant to the VIE. Our analysis continues to support our position as the primary beneficiary in certain of our funeral and cemetery trust funds. Trust management fees are earned by us for investment management and advisory services that are provided by our wholly-owned registered investment advisor ("CSV RIA"). As of June 30, 2013, CSV RIA provides these services to one institution, which has custody of 75% of our trust assets, for a fee based on the market value of trust assets. Under state trust laws, we are allowed to charge the trust a fee for advising on the investment of the trust assets and these fees are recognized as income in the period in which services are provided. |
Fair Value Measurements, Policy | Fair Value Measurements We define fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date for items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). We disclose the extent to which fair value is used to measure financial assets and liabilities, the inputs utilized in calculating valuation measurements, and the effect of the measurement of significant unobservable inputs on earnings, or changes in net assets, as of the measurement date. Additional required disclosures are provided herein in Notes 6, 10 and 11 to the Consolidated Financial Statements. We currently do not have any assets that have fair values determined by Level 3 inputs and no liabilities measured at fair value. We have elected not to measure any additional financial instruments and certain other items at fair value that are not currently required to be measured at fair value. To determine the fair value of assets and liabilities in an environment where the volume and level of activity for the asset or liability have significantly decreased, the exit price is used as the fair value measurement. For the three and six month periods ended June 30, 2013, we did not incur significant decreases in the volume or level of activity of any asset or liability. We consider an impairment of debt and equity securities other-than-temporary unless (a) the investor has the ability and intent to hold an investment and (b) evidence indicating the cost of the investment is recoverable before we are more likely than not required to sell the investment. If impairment is indicated, then an adjustment is made to reduce the carrying amount to fair value. As of June 30, 2013, no impairments have been identified. In the ordinary course of business, we are typically exposed to a variety of market risks. Currently, these are primarily related to changes in fair market values related to outstanding debts and changes in the values of securities associated with the preneed and perpetual care trusts. Management is actively involved in monitoring exposure to market risk and developing and utilizing risk management techniques when appropriate and when available for a reasonable price. |
Income Taxes, Policy | Income Taxes We and our subsidiaries file a consolidated U.S. Federal income tax return, separate income tax returns in 16 states and combined or unitary income tax returns in 11 states in which we operate. |
Goodwill (Changes in Goodwill) (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Goodwill [Roll Forward] | |
Goodwill at beginning of period | $ 218,442 |
Impairment of goodwill | (101) |
Reclassification of assets held for sale | (1,097) |
Goodwill at end of period | $ 217,244 |
Stock-Based Compensation (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||
Schedule of valuation assumptions for stock options | The fair value of the option grants are estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions, as indicated by year:
|
||||||||||||||||||||||||||||
Assumptions for the fair value of the right (option) to purchase shares under ESPP | The fair value of the right (option) to purchase shares under the ESPP is estimated on the date of grant (January 1, 2013) associated with the four quarterly purchase dates using the following assumptions:
|
Preneed Trust Investments (Estimated maturities of fixed preneed cemetery trust income securities) (Details) (Preneed Cemetery Trust Investments [Member], USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
---|---|
Preneed Cemetery Trust Investments [Member]
|
|
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Due in one year or less | $ 0 |
Due in one to five years | 8,400 |
Due in five to ten years | 14,087 |
Thereafter | 29,659 |
Total | $ 52,146 |
Receivables from Preneed Trusts (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Receivables From Preneed Trusts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Receivables from Preneed Trusts | As of December 31, 2012 and June 30, 2013, receivables from preneed trusts are as follows (in thousands):
|
Contracts Secured by Insurance (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Contracts Secured by Insurance [Abstract] | ||
Preneed funeral contracts secured by insurance | $ 280.0 | $ 237.4 |
Fair Value Measurements (Narrative) (Details) (USD $)
|
Jun. 30, 2013
|
---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Liabilities measured at fair value | $ 0 |
Convertible Junior Subordinated Debt [Member]
|
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term debt measured at fair value | $ 88,000,000 |
Receivables from Preneed Trusts (Receivables from preneed funeral trust funds) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Receivables From Preneed Trusts [Abstract] | ||
Preneed trust funds, at cost | $ 13,976 | $ 26,671 |
Less: Allowance for contract cancellation | (419) | (800) |
Receivables from preneed trusts, net | $ 13,557 | $ 25,871 |
Acquisitions (Narrative) (Details) (USD $)
|
3 Months Ended | 6 Months Ended | 3 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2013
acquisitions
|
Jun. 30, 2012
funeral_homes
cemeteries
acquisitions
|
Jun. 30, 2013
criteria
acquisitions
|
Jun. 30, 2012
|
Mar. 31, 2013
Land [Member]
|
|
Property, Plant and Equipment [Line Items] | |||||
Number of strategic ranking criteria used to differentiate acquisition price | 6 | ||||
Number of acquisitions (in Acquisitions) | 0 | 1 | 0 | ||
Number of funeral homes acquired (in Funeral Homes) | 2 | ||||
Number of cemeteries acquired (in Cemeteries) | 1 | ||||
Cost of acquired entities | $ 4,800,000 | $ 4,800,000 | |||
Goodwill acquired during period | 500,000 | ||||
Cost of land acquired for development | $ 4,468,000 | $ 5,651,000 | $ 6,000,000 |
Cemetery Perpetual Care Trust Investments (Perpetual care trust investment security transactions recorded in interest income and other, net) (Details) (Perpetual Care Trust Invesments [Member], Interest Income and Other, Net [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Perpetual Care Trust Invesments [Member] | Interest Income and Other, Net [Member]
|
||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Undistributable realized gains | $ 1,063 | $ 1,269 | $ 1,087 | $ 2,400 |
Undistributable realized losses | (103) | (1,027) | (398) | (1,079) |
Increase in Care trusts' corpus | $ (960) | $ (242) | $ (689) | $ (1,321) |
Subsequent Events Subsequent Events
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On July 22, 2013, we sold a funeral home in Ohio for $0.6 million and recognized a net gain of approximately $0.1 million. On August 2, 2013, we sold a cemetery in Virginia for $5.0 million and recognized a net gain of approximately $6.3 million. |
Basis of Presentation and Summary of Significant Accounting Policies
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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 deathcare services and merchandise in the United States. As of June 30, 2013, we owned and operated 166 funeral homes in 26 states and 33 cemeteries in 11 states. Principles of Consolidation The accompanying Consolidated Financial Statements include us and our subsidiaries. All significant intercompany balances and transactions have been eliminated. Interim Condensed Disclosures The information for the three and six month periods ended June 30, 2012 and 2013 is unaudited, but in the opinion of management, reflects all adjustments which are normal, recurring and necessary for a fair presentation of our financial position and results of operations as of and for the interim periods presented. Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted. The accompanying Consolidated Financial Statements have been prepared consistent with the accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2012 and should be read in conjunction therewith. Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation with no effect on our previously reported results of operations, consolidated financial position, or cash flows. Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Use of Estimates The preparation of the Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, realization of accounts receivable, goodwill, intangible assets, property and equipment and deferred tax assets. We base our estimates on historical experience, third party data and assumptions that we believe to be reasonable under the circumstances. The results of these considerations form the basis for making judgments about the amount and timing of revenues and expenses, the carrying value of assets and the recorded amounts of liabilities. 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, as there can be no assurance that our results of operations will be consistent from year to year. Funeral and Cemetery Operations We record the revenue from sales of funeral and cemetery merchandise and services when the merchandise is delivered or the service is performed. Sales of cemetery interment rights are recorded as revenue in accordance with the retail land sales provisions for accounting for sales of real estate. This method provides for the recognition of revenue in the period in which the customer’s cumulative payments exceed 10% of the contract price related to the interment right. Costs related to the sales of interment rights, which include real property and other costs related to cemetery development activities, are charged to operations using the specific identification method in the period in which the sale of the interment right is recognized as revenue. Revenues to be recognized from the delivery of merchandise and performance of services related to contracts that were acquired in acquisitions are typically lower than those originated by the Company. Sales taxes collected are recognized on a net basis in our Consolidated Financial Statements. Allowances for bad debts and customer cancellations are provided at the date that the sale is recognized as revenue and are based on our historical experience and the current economic environment. We also monitor changes in delinquency rates and provide additional bad debt and cancellation reserves when warranted. When preneed sales of funeral services and merchandise are funded through third-party insurance policies, we earn a commission on the sale of the policies. Insurance commissions are recognized as revenues at the point at which the commission is no longer subject to refund, which is typically one year after the policy is issued. Accounts receivable included approximately $8.4 million and $7.9 million of funeral receivables at December 31, 2012 and June 30, 2013, respectively, and $9.2 million and $8.7 million of cemetery receivables at December 31, 2012 and June 30, 2013, respectively. Non-current preneed receivables represent the payments expected to be received beyond one year from the balance sheet date. Non-current preneed receivables consisted of approximately $7.3 million and $8.2 million of funeral receivables and $15.9 million and $16.7 million of cemetery receivables at December 31, 2012 and June 30, 2013, respectively. Accounts receivable also include minor amounts of other receivables. Bad debt expense totaled $1.1 million and $0.8 million for the six months ended June 30, 2012 and 2013, respectively. Discontinued Operations In accordance with our Strategic Acquisition Model, non-strategic businesses are reviewed to determine whether such businesses should be sold and the proceeds redeployed elsewhere. A marketing plan is then developed for those locations which are identified as held for sale. When we receive a letter of intent and financing commitment from a buyer and the sale is expected to occur within one year, the location is no longer reported within our continuing operations. The assets and liabilities associated with the location are reclassified as held for sale on the Consolidated Balance Sheet and the operating results are presented on a comparative basis in the discontinued operations section of the Consolidated Statements of Operations. During the second quarter of 2013, we sold a funeral home in California, which was reported as held for sale at March 31, 2013. As of June 30, 2013, we had letters of intent outstanding on funeral homes in Kansas and Ohio and cemeteries in Virginia and Florida; as such, these businesses are no longer reported within our continuing operations. The assets and liabilities associated with these locations are included in assets held for sale on the Consolidated Balance Sheet as of June 30, 2013 and the operating results are presented on a comparative basis in the discontinued operations section of the Consolidated Statements of Operations. See Note 4 and Note 20 to the Consolidated Financial Statements herein for more information. 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 customarily estimate related transaction costs known at closing. To the extent that information not available to us at the closing date of an acquisition subsequently becomes available during the allocation period, we may adjust goodwill, assets, or liabilities associated with such acquisition. Acquisition related costs are recognized separately from acquisitions and are expensed as incurred. During the second quarter of 2012, we completed one acquisition comprised of two funeral homes and one cemetery. There were no acquisitions during the second quarter of 2013. See Note 3 to the Consolidated Financial Statements herein for more information. The excess of the purchase price over the fair value of identifiable net assets of funeral home businesses acquired is recorded as goodwill. Goodwill has primarily been recorded in connection with the acquisition of funeral businesses. Goodwill is tested for impairment by assessing the fair value of each of our reporting units. The funeral segment reporting units consist of our East, Central and West regions in the United States, and we perform our annual impairment test of goodwill using information as of August 31 of each year. In addition, we assess the impairment of goodwill whenever events or changes in circumstances indicate that the carrying value may be greater than fair value. Factors that could trigger an interim impairment review include, but are not limited to, significant adverse changes in the business climate which may be indicated by a decline in our market capitalization or decline in operating results. Our methodology for goodwill impairment testing is described in more detail in Notes 1 and 4 to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2012. Stock Plans and Stock-Based Compensation We have stock-based employee and director compensation plans under which we may grant restricted stock, stock options, performance awards and stock from our employee stock purchase plan, which are described in more detail in Note 17 to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2012. We recognize compensation expense in an amount equal to the fair value of the share-based awards expected to vest over the requisite service period. Fair value is determined on the date of the grant. The fair value of options or awards containing options is determined using the Black-Scholes valuation model. The fair value of the performance awards is determined using a Monte-Carlo simulation pricing model. See Note 14 to the Consolidated Financial Statements herein for additional information on our stock-based compensation plans. Computation of Earnings Per Common Share Basic earnings per share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. Dilutive common equivalent shares consist of stock options and convertible junior subordinated debentures. Share-based awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are recognized as participating securities and included in the computation of both basic and diluted earnings per share. Our grants of restricted stock awards to our employees and directors are considered participating securities, and we have prepared our earnings per share calculations to include outstanding unvested restricted stock awards in both the basic and diluted weighted average shares outstanding calculation. See Note 19 to this Consolidated Financial Statements herein for the computations of per share earnings for the three and six month periods ended June 30, 2012 and 2013. The fully diluted weighted average shares outstanding for the six months ended June 30, 2013, and the corresponding calculation of fully diluted earnings per share, include approximately 4.4 million shares that would be issued upon conversion of our convertible junior subordinated debentures as a result of the application of the if-converted method prescribed by FASB ASC 260-10-45. For the three and six months ended June 30, 2012 and the three months ended June 30, 2013, the conversion of our convertible junior subordinated debentures is excluded from fully diluted earnings per share calculations and the fully diluted weighted average share count because the inclusion of such converted shares would result in an antidilutive impact. Preneed Funeral and Cemetery Trust Funds Our preneed and perpetual care trust funds are reported in accordance with the principles of consolidating Variable Interest Entities (“VIEs”). In the case of preneed trusts, the customers are the legal beneficiaries. In the case of perpetual care trusts, we do not have a right to access the corpus in the perpetual care trusts. For these reasons, we have recognized financial interests of third parties in the trust funds in our financial statements as Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus. The investments of such trust funds are classified as available-for-sale and are reported at fair market value; therefore, the unrealized gains and losses, as well as accumulated and undistributed income and realized gains and losses are recorded to Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus in our Consolidated Balance Sheets. Our future obligations to deliver merchandise and services are reported at estimated settlement amounts. Preneed funeral and cemetery trust investments are reduced by the trust investment earnings that we have been allowed to withdraw in certain states prior to maturity. These earnings, along with preneed contract collections not required to be placed in trust, are recorded in Deferred preneed funeral revenue and Deferred preneed cemetery revenue until the service is performed or the merchandise is delivered. In accordance with respective state laws, we are required to deposit a specified amount into perpetual and memorial care trust funds for each interment/entombment right and certain memorials sold. Income from the trust funds is distributed to us and used to provide care and maintenance for the cemeteries and mausoleums. Such trust fund income is recognized as revenue when realized by the trust and distributable to us. We are restricted from withdrawing any of the principal balances of these funds. An enterprise is required to perform an analysis to determine whether the enterprise’s variable interest(s) give it a controlling financial interest in a VIE. This analysis identifies the primary beneficiary of a VIE as the enterprise that has both the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses of the entity that could potentially be significant to the VIE, or the right to receive benefits from the entity that could potentially be significant to the VIE. Our analysis continues to support our position as the primary beneficiary in certain of our funeral and cemetery trust funds. Trust management fees are earned by us for investment management and advisory services that are provided by our wholly-owned registered investment advisor ("CSV RIA"). As of June 30, 2013, CSV RIA provides these services to one institution, which has custody of 75% of our trust assets, for a fee based on the market value of trust assets. Under state trust laws, we are allowed to charge the trust a fee for advising on the investment of the trust assets and these fees are recognized as income in the period in which services are provided. Fair Value Measurements We define fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date for items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). We disclose the extent to which fair value is used to measure financial assets and liabilities, the inputs utilized in calculating valuation measurements, and the effect of the measurement of significant unobservable inputs on earnings, or changes in net assets, as of the measurement date. Additional required disclosures are provided herein in Notes 6, 10 and 11 to the Consolidated Financial Statements. We currently do not have any assets that have fair values determined by Level 3 inputs and no liabilities measured at fair value. We have elected not to measure any additional financial instruments and certain other items at fair value that are not currently required to be measured at fair value. To determine the fair value of assets and liabilities in an environment where the volume and level of activity for the asset or liability have significantly decreased, the exit price is used as the fair value measurement. For the three and six month periods ended June 30, 2013, we did not incur significant decreases in the volume or level of activity of any asset or liability. We consider an impairment of debt and equity securities other-than-temporary unless (a) the investor has the ability and intent to hold an investment and (b) evidence indicating the cost of the investment is recoverable before we are more likely than not required to sell the investment. If impairment is indicated, then an adjustment is made to reduce the carrying amount to fair value. As of June 30, 2013, no impairments have been identified. In the ordinary course of business, we are typically exposed to a variety of market risks. Currently, these are primarily related to changes in fair market values related to outstanding debts and changes in the values of securities associated with the preneed and perpetual care trusts. Management is actively involved in monitoring exposure to market risk and developing and utilizing risk management techniques when appropriate and when available for a reasonable price. Our convertible junior subordinated debentures, payable to Carriage Services Capital Trust (the “Trust”), pay interest at a fixed rate of 7% and are carried on our Consolidated Balance Sheets at a cost of approximately $89.8 million. The fair value of these securities is estimated to be approximately $88.0 million at June 30, 2013, based on available broker quotes of the corresponding preferred securities issued by the Trust. Income Taxes We and our subsidiaries file a consolidated U.S. Federal income tax return, separate income tax returns in 16 states and combined or unitary income tax returns in 11 states in which we operate. We record deferred taxes for temporary differences between the tax basis and financial reporting basis of assets and liabilities. We record a valuation allowance to reflect the estimated amount of deferred tax assets for which realization is uncertain. Management reviews the valuation allowance at the end of each quarter and makes adjustments if it is determined that it is more likely than not that the tax benefits will be realized. We analyze tax benefits for uncertain tax positions and how they are to be recognized, measured, and derecognized in financial statements; provide certain disclosures of uncertain tax matters; and specify how reserves for uncertain tax positions should be classified on our Consolidated Balance Sheets. We have reviewed our income tax positions and identified certain tax deductions, primarily related to business acquisitions that are not certain. Our policy with respect to potential penalties and interest is to record them as “Other” expense and “Interest” expense, respectively. The entire balance of unrecognized tax benefits, if recognized, would affect our effective tax rate. We do not anticipate a significant increase or decrease in our unrecognized tax benefits during the next twelve months. Subsequent Events Management evaluated events and transactions during the period subsequent to June 30, 2013 through the date the financial statements were issued for potential recognition or disclosure in the accompanying financial statements covered by this report. For more information regarding subsequent events, see Note 20 to the Consolidated Financial Statements herein. |
Acquisitions
|
6 Months Ended | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||
ACQUISITIONS | ACQUISITIONS Our growth strategy includes the execution of our Strategic Acquisition Model. We assess acquisition candidates using six strategic ranking criteria to differentiate the price we are willing to pay under a discounted cash flow methodology. Those criteria are:
During the second quarter of 2012, we completed one acquisition consisting of two funeral homes and one cemetery. We paid $4.8 million in cash as consideration for this acquisition. We acquired substantially all of the assets and assumed certain operating liabilities, including obligations associated with existing preneed contracts. The assets and liabilities were recorded at fair value and included goodwill of $0.5 million. We acquired land for approximately $6.0 million during the first quarter of 2013 for funeral home expansion projects. There were no acquisitions during the second quarter of 2013. The pro forma impact of the second quarter 2012 acquisition on the prior periods is not presented as the impact is not material to reported results. Thus, the results of the acquired businesses are included in our results from the date of acquisition. |
Preneed Trust Investments
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preneed Trust Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PRENEED TRUST INVESTMENTS | PRENEED TRUST INVESTMENT Preneed Cemetery Trust Investments Preneed cemetery trust investments represent trust fund assets that we are generally permitted to withdraw when the merchandise or services are provided. The components of Preneed cemetery trust investments in our Consolidated Balance Sheets at December 31, 2012 and June 30, 2013 are as follows (in thousands):
Upon cancellation of a preneed cemetery contract, a customer is generally entitled to receive a refund of the corpus and some or all of the earnings held in trust. In certain jurisdictions, we are obligated to fund any shortfall if the amounts deposited by the customer exceed the funds in trust, including some or all investment income. As a result, when realized or unrealized losses of a trust result in the trust being under-funded, we assess whether we are responsible for replenishing the corpus of the trust, in which case a loss provision is recorded. Earnings from our preneed cemetery trust investments are recognized in revenue when a service is performed or merchandise is delivered. Trust management fees charged by our wholly-owned registered investment advisor are included in revenue in the period in which they are earned. 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, common stock, U.S. treasury debt, U.S. agency obligations 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 other inputs other than quoted prices that can corroborate observable market data. These investments are corporate debt, preferred stocks, foreign debt, mortgage backed securities and fixed income securities, all of which are classified within Level 2 of the valuation hierarchy. There were no significant transfers between Levels 1 and 2 for the three and six months ended June 30, 2013. There are no Level 3 investments in the preneed cemetery trust investment portfolio. See Note 11 for further information of the fair value measurement and the three-level valuation hierarchy. The cost and fair market values associated with preneed cemetery trust investments at June 30, 2013 are detailed below (in thousands):
The estimated maturities of the fixed income securities included above are as follows (in thousands):
The cost and fair market values associated with preneed cemetery trust investments at December 31, 2012 are detailed below (in thousands):
We determine whether or not the assets in the preneed cemetery trusts have an other-than-temporary impairment on a security-by-security basis. This assessment is made based upon a number of criteria including the length of time a security has been in a loss position, changes in market conditions and concerns related to the specific issuer. If a loss is considered to be other-than-temporary, the cost basis of the security is adjusted downward to its fair market value. Any reduction in the cost basis of the investment due to an other-than-temporary impairment is likewise recorded as a reduction in Deferred preneed cemetery receipts held in trust. There will be no impact on earnings unless and until such time as the investment is withdrawn from the trust in accordance with state regulations at an amount that is less than its original basis. We have determined that the unrealized losses in our preneed cemetery trust investments are considered temporary in nature, as the unrealized losses were due to temporary fluctuations in interest rates and equity prices. The investments are diversified across multiple industry segments using a balanced allocation strategy to minimize long-term risk. We believe that none of the securities are other-than-temporarily impaired based on our analysis of the investments. Our cemetery merchandise and service trust investment unrealized losses, their associated fair market values, and the duration of unrealized losses as of June 30, 2013 and December 31, 2012, respectively, are shown in the following tables (in thousands):
Preneed cemetery trust investment security transactions recorded in Interest expense, net of other income in the Consolidated Statements of Operations for the three and six months ended June 30, 2012 and 2013 are as follows (in thousands):
Purchases and sales of investments in the preneed cemetery trusts were as follows (in thousands):
Preneed Funeral Trust Investments Preneed funeral trust investments represent trust fund assets that we are permitted to withdraw as services and merchandise are provided to customers. Preneed funeral contracts are secured by funds paid by the customer to us. Preneed funeral trust investments are reduced by the trust earnings we have been allowed to withdraw prior to our performance and amounts received from customers that are not required to be deposited into trust, pursuant to various state laws. The components of Preneed funeral trust investments in our Consolidated Balance Sheets at December 31, 2012 and June 30, 2013 are as follows (in thousands):
Upon cancellation of a preneed funeral contract, a customer is generally entitled to receive a refund of the corpus and some or all of the earnings held in trust. In certain jurisdictions, we are obligated to fund any shortfall if the amounts deposited by the customer exceed the funds in trust, including some or all investment income. As a result, when realized or unrealized losses of a trust result in the trust being under-funded, we assess whether we are responsible for replenishing the corpus of the trust, in which case a loss provision is recorded. Earnings from our preneed funeral trust investments are recognized in revenue when a service is performed or merchandise is delivered. Trust management fees charged by our wholly-owned registered investment advisor are included in revenue in the period in which they are earned. 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. government, agencies and municipalities, common stocks 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 other inputs other than quoted prices that can corroborate observable market data. These investments are corporate debt, preferred stocks, foreign debt, mortgage backed securities and fixed income securities, all of which are classified within Level 2 of the valuation hierarchy. There were no significant transfers between Levels 1 and 2 for the three and six months ended June 30, 2013. There are no Level 3 investments in the preneed funeral trust investment portfolio. See Note 11 for further information of the fair value measurement and the three-level valuation hierarchy. The cost and fair market values associated with preneed funeral trust investments at June 30, 2013 are detailed below (in thousands):
The estimated maturities of the fixed income securities included above are as follows (in thousands):
The cost and fair market values associated with preneed funeral trust investments at December 31, 2012 are detailed below (in thousands):
We determine whether or not the assets in the preneed funeral trusts have other-than-temporary impairments on a security-by-security basis. This assessment is made based upon a number of criteria including the length of time a security has been in a loss position, changes in market conditions and concerns related to the specific issuer. If a loss is considered to be other-than-temporary, the cost basis of the security is adjusted downward to its fair market value. Any reduction in the cost basis of the investment due to an other-than-temporary impairment is likewise recorded as a reduction to Deferred preneed funeral receipts held in trust. There will be no impact on earnings unless and until such time as the investment is withdrawn from the trust in accordance with state regulations at an amount that is less than its original basis. We have determined that the unrealized losses in our preneed funeral trust investments are considered temporary in nature, as the unrealized losses were due to temporary fluctuations in interest rates and equity prices. The investments are diversified across multiple industry segments using a balanced allocation strategy to minimize long-term risk. We believe that none of the securities are other-than-temporarily impaired based on our analysis of the investments. Our preneed funeral trust investment unrealized losses, their associated fair market values, and the duration of unrealized losses as of June 30, 2013 and December 31, 2012, respectively, are shown in the following tables (in thousands):
Preneed funeral trust investment security transactions recorded in Interest expense, net of other income in the Consolidated Statements of Operations for the three and six months ended June 30, 2012 and 2013 are as follows (in thousands):
Purchases and sales of investments in the preneed funeral trusts are as follows (in thousands):
|
Long-Term Debt Long-Term Debt (Long-term Debt Table) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Debt Instrument [Line Items] | ||
Current maturities on long-term debt | $ (11,974) | $ (11,086) |
Long-term debt, excluding current maturities | 147,221 | 163,541 |
Secured Debt [Member] | Revolving Credit Facility [Member]
|
||
Debt Instrument [Line Items] | ||
Long-term debt | 34,600 | 44,700 |
Secured Debt [Member] | Term Loan [Member]
|
||
Debt Instrument [Line Items] | ||
Long-term debt | 122,500 | 127,500 |
Notes Payable, Other Payables [Member] | Acquisition Debt, Deferred Purchase Price [Member]
|
||
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,095 | $ 2,427 |
Assets Held for Sale and Discontinued Operations
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Held For Sale and Discontinued Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS | ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS We continually review locations to optimize the sustainable earning power and return on our invested capital. Our strategy, the Strategic Acquisition Model, also uses strategic ranking criteria to assess potential disposition candidates. The execution of this strategy entails selling generally non-strategic businesses. During the second quarter of 2013, we sold a funeral home in California, which was reported as held for sale at March 31, 2013. During the second quarter of 2012, we did not dispose of any business. As of June 30, 2013, we had letters of intent outstanding on funeral homes in Kansas and Ohio and cemeteries in Virginia and Florida; as such, these businesses are no longer reported within our continuing operations. The assets and liabilities associated with these locations are included in assets held for sale on the Consolidated Balance Sheet as of June 30, 2013 and the operating results are presented on a comparative basis in the discontinued operations section of the Consolidated Statements of Operations. Assets and liabilities associated with the businesses held for sale in our Consolidated Balance Sheets at December 31, 2012 and June 30, 2013 consisted of the following (in thousands):
The operating results of the discontinued businesses during the periods presented, as well as the gain or loss on the disposal, are presented in the discontinued operations section of the Consolidated Statements of Operations, along with the income tax effect as follows (in thousands):
|
Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Summary of Significant Accounting Policies (Business Combinations) (Details)
|
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2013
acquisitions
|
Jun. 30, 2012
funeral_homes
cemeteries
acquisitions
|
Jun. 30, 2013
acquisitions
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of acquisitions (in Acquisitions) | 0 | 1 | 0 |
Number of funeral homes acquired (in Funeral Homes) | 2 | ||
Number of cemeteries acquired (in Cemeteries) | 1 |
Goodwill (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||
Changes in Goodwill | The following table presents the changes in goodwill in our Consolidated Balance Sheets (in thousands):
|
Cemetery Perpetual Care Trust Investments (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cemetery Perpetual Care Trust Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of care trusts' corpus | The components of Care trusts’ corpus as of December 31, 2012 and June 30, 2013 are as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost and fair market values associated with the trust investments held in perpetual care trust funds | The following table reflects the cost and fair market values associated with the trust investments held in perpetual care trust funds at June 30, 2013 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated maturities of fixed perpetual care trust income securities | The estimated maturities of the fixed income securities included above are as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost and fair Market Values Associated with Trust Investments Held in Perpetual Care Trust Funds [Table Text Block] | The following table reflects the cost and fair market values associated with the trust investments held in perpetual care trust funds at December 31, 2012 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair market value and unrealized loss on perteptual care trust investments | Our perpetual care trust investment unrealized losses, their associated fair market values, and the duration of unrealized losses for the period as of June 30, 2013 and December 31, 2012, respectively, are shown in the following tables (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Perpetual care trust investment security transactions recorded in interest income and other, net | Perpetual care trust investment security transactions recorded in Interest expense, net of other income in the Consolidated Statements of Operations for the three and six months ended June 30, 2012 and 2013 are as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Perpetual care trust investment security transactions recorded in cemetery revenue | Perpetual care trust investment security transactions recorded in Cemetery revenue for the three and six months ended June 30, 2012 and 2013 are as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases and sales of investments in perpetual care trusts | Purchases and sales of investments in the perpetual care trusts were as follows (in thousands):
|
Cemetery Perpetual Care Trust Investments (Purchases and sales of investments in perpetual care trusts) (Details) (Perpetual Care Trust Invesments [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Sep. 30, 2011
|
|
Perpetual Care Trust Invesments [Member]
|
||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Purchases | $ (7,252) | $ (21,520) | $ (9,838) | $ (37,737) |
Sales | $ 8,674 | $ 21,644 | $ 11,795 | $ 38,265 |
Supplemental Disclosure of Statement of Operations Information (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Income Statement Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Disclosure for the Consolidated Statements of Operations | The following information is supplemental disclosure for the Consolidated Statements of Operations (in thousands):
|
Cemetery Perpetual Care Trust Investments (Perpetual care trust investment security transactions recorded in Cemetery revenue) (Details) (Perpetual Care Trust Invesments [Member], Cemetery Revenue [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Perpetual Care Trust Invesments [Member] | Cemetery Revenue [Member]
|
||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Investment income | $ 1,234 | $ 1,152 | $ 2,469 | $ 2,303 |
Realized gains | 600 | 300 | 1,161 | 300 |
Expenses | (266) | 0 | (478) | 0 |
Total | $ 1,568 | $ 1,452 | $ 3,152 | $ 2,603 |
Preneed Trust Investments (Estimated maturities of fixed preneed funeral trust income securities) (Details) (Preneed Funeral Trust Investments [Member], USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
---|---|
Preneed Funeral Trust Investments [Member]
|
|
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Due in one year or less | $ 736 |
Due in one to five years | 8,515 |
Due in five to ten years | 12,603 |
Thereafter | 25,907 |
Total | $ 47,761 |