Delaware | 1-11961 | 76-0423828 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
CARRIAGE SERVICES, INC. | |||
Dated: April 25, 2016 | By: | /s/ Viki K. Blinderman | |
Viki K. Blinderman | |||
Chief Accounting Officer, Co-Chief Financial Officer and Secretary | |||
(Principal Accounting Officer) |
Exhibit | Description | ||
99.1 | Press Release dated April 25,2016. |
• | Total Revenue of $63.3 million, an increase of 0.1%; |
• | Total Field EBITDA of $27.7 million, an increase of 0.6%; |
• | Total Field EBITDA Margin up 20 basis points to 43.7%; |
• | Adjusted Consolidated EBITDA of $19.9 million, an increase of 1.1%; |
• | Adjusted Consolidated EBITDA Margin up 30 basis points to 31.4%; |
• | Adjusted Diluted Earnings Per Share of $0.47, an increase of 11.9%; and |
• | Adjusted Free Cash Flow of $11.7 million, an increase of 1.2%. |
Jason Cox | Lane Funeral Home–South Crest Chapel; Rossville, GA |
Tim Hauck | Cape Coral Group; Cape Coral, FL |
John Fitzpatrick | Donahue-Cecere Funeral Homes; Westbury, NY |
Scott Sanderford | Everly Wheatley Funeral Home; Alexandria, VA |
Jim Terry | James J. Terry Funeral Home; Downingtown, PA |
Scott Drzewiecki | Ft. Lauderdale Cemeteries; Ft. Lauderdale, FL |
Roger Allen | LaGrone-Blackburn-Shaw Funeral Homes; Amarillo, TX |
Mike Conner | Conner-Westbury Funeral Home; Griffin, GA |
Randy Valentine | Dieterle Memorial Home; Montgomery, IL |
Ken Summers | P.L. Fry & Son Funeral Home; Manteca, CA |
Michael Nicosia | Ouimet Brothers Concord Funeral Home; Concord, CA |
Steven Mora | Conejo Mountain Memorial Park; Camarillo, CA |
Alan Kerrick | Dakan Funeral Chapel; Caldwell, ID |
Nicholas Welzenbach | Los Gatos Memorial Park; San Jose, CA |
Range (in millions, except per share amounts) | ||
Revenues | $251 - $255 | |
Adjusted Consolidated EBITDA | $74 - $78 | |
Adjusted Net Income | $29 - $31 | |
Adjusted Diluted Earnings Per Share(1) | $1.71 - $1.75 |
(1) | The Rolling Four Quarter Outlook on Adjusted Diluted Earnings Per Share does not include any changes to our fully diluted share count that could occur related to additional share repurchases or a stock price increase and EPS dilution calculations related to our convertible subordinated notes and outstanding and exercisable stock options. |
Investment Performance | |||||||
Investment Performance(1) | Index Performance | ||||||
Discretionary | Total Trust | S&P 500 Stock Index | High Yield Index | 70/30 index Benchmark(2) | |||
3 months ended 03/31/16 | (2.2)% | (1.8)% | 1.3% | 3.2% | 2.7% | ||
1 year ended 12/31/15 | (3.1)% | (2.7)% | 1.4% | (4.7)% | (2.9)% | ||
2 years ended 12/31/15 | 5.0% | 5.0% | 15.2% | (2.3)% | 3.0% | ||
3 years ended 12/31/15 | 20.0% | 19.4% | 52.5% | 5.0% | 19.3% | ||
4 years ended 12/31/15 | 44.4% | 39.9% | 76.9% | 21.4% | 38.0% | ||
5 years ended 12/31/15 | 40.2% | 37.2% | 80.6% | 26.7% | 42.8% |
(1) | Investment performance includes realized income and unrealized appreciation (depreciation). |
(2) | The 70/30 Benchmark is 70% weighted to the High Yield Index and 30% weighted to the S&P 500 Stock Index. |
Asset Allocation as of March 31, 2016 (in thousands) | ||||||||||||||
Discretionary Trust Funds | Total Trust Funds | |||||||||||||
Asset Class | MV | % | MV | % | ||||||||||
Cash | $ | 12,013 | 7 | % | $ | 28,877 | 14 | % | ||||||
Equities | 28,818 | 17 | % | 31,295 | 15 | % | ||||||||
Fixed Income(1) | 129,049 | 74 | % | 139,544 | 69 | % | ||||||||
Other/Insurance | 3,398 | 2 | % | 3,588 | 2 | % | ||||||||
Total Portfolios | $ | 173,278 | 100 | % | $ | 203,304 | 100 | % |
(1) | Discretionary Trust - Fixed Income Portfolio Profile. . |
Industry/Sector | % | ||
Communications | 8.9 | % | |
Consumer | 11.5 | % | |
Energy | 11.8 | % | |
Financial | 45.8 | % | |
Government | 0.9 | % | |
Industrial | 0.7 | % | |
Media | 10.1 | % | |
Technology | 2.9 | % | |
Utilities | 7.4 | % | |
Total | 100% |
CARRIAGE SERVICES, INC. | ||||||||
OPERATING AND FINANCIAL TREND REPORT | ||||||||
FROM OPERATIONS (IN THOUSANDS - EXCEPT PER SHARE AMOUNTS) | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2016 | % Change | ||||||
Same Store Contracts | ||||||||
Atneed Contracts | 6,010 | 5,684 | -5.4 | % | ||||
Preneed Contracts | 1,497 | 1,418 | -5.3 | % | ||||
Total Same Store Funeral Contracts | 7,507 | 7,102 | -5.4 | % | ||||
Acquisition Contracts | ||||||||
Atneed Contracts | 1,177 | 1,334 | 13.3 | % | ||||
Preneed Contracts | 259 | 225 | -13.1 | % | ||||
Total Acquisition Funeral Contracts | 1,436 | 1,559 | 8.6 | % | ||||
Total Funeral Contracts | 8,943 | 8,661 | -3.2 | % | ||||
Funeral Operating Revenue | ||||||||
Same Store Revenue | $ | 38,991 | $ | 37,237 | -4.5 | % | ||
Acquisition Revenue | 8,593 | 9,677 | 12.6 | % | ||||
Total Funeral Operating Revenue | $ | 47,584 | $ | 46,914 | -1.4 | % | ||
Cemetery Operating Revenue | ||||||||
Same Store Revenue | $ | 10,268 | $ | 11,075 | 7.9 | % | ||
Acquisition Revenue | 822 | 766 | -6.8 | % | ||||
Total Cemetery Operating Revenue | $ | 11,090 | $ | 11,841 | 6.8 | % | ||
Financial Revenue | ||||||||
Preneed Funeral Commission Income | $ | 355 | $ | 421 | 18.6 | % | ||
Preneed Funeral Trust Earnings | 2,198 | 1,967 | -10.5 | % | ||||
Cemetery Trust Earnings | 1,641 | 1,766 | 7.6 | % | ||||
Preneed Cemetery Finance Charges | 385 | 422 | 9.6 | % | ||||
Total Financial Revenue | $ | 4,579 | $ | 4,576 | -0.1 | % | ||
Total Revenue | $ | 63,253 | $ | 63,331 | 0.1 | % | ||
Field EBITDA | ||||||||
Same Store Funeral Field EBITDA | $ | 15,898 | $ | 15,152 | -4.7 | % | ||
Same Store Funeral Field EBITDA Margin | 40.8 | % | 40.7 | % | -10 bp | |||
Acquisition Funeral Field EBITDA | 3,553 | 4,172 | 17.4 | % | ||||
Acquisition Funeral Field EBITDA Margin | 41.3 | % | 43.1 | % | 180 bp | |||
Total Funeral Field EBITDA | $ | 19,451 | $ | 19,324 | -0.7 | % | ||
Total Funeral Field EBITDA Margin | 40.9 | % | 41.2 | % | 30 bp | |||
Same Store Cemetery Field EBITDA | $ | 3,550 | $ | 3,843 | 8.3 | % | ||
Same Store Cemetery Field EBITDA Margin | 34.6 | % | 34.7 | % | 10 bp | |||
Acquisition Cemetery Field EBITDA | 300 | 221 | -26.3 | % | ||||
Acquisition Cemetery Field EBITDA Margin | 36.5 | % | 28.9 | % | -760 bp | |||
Total Cemetery Field EBITDA | $ | 3,850 | $ | 4,064 | 5.6 | % | ||
Total Cemetery Field EBITDA Margin | 34.7 | % | 34.3 | % | -40 bp | |||
Funeral Financial EBITDA | $ | 2,271 | $ | 2,197 | -3.3 | % | ||
Cemetery Financial EBITDA | 1,964 | 2,103 | 7.1 | % | ||||
Total Financial EBITDA | $ | 4,235 | $ | 4,300 | 1.5 | % | ||
Total Financial EBITDA Margin | 92.5 | % | 94.0 | % | 150 bp | |||
Total Field EBITDA | $ | 27,536 | $ | 27,688 | 0.6 | % | ||
Total Field EBITDA Margin | 43.5 | % | 43.7 | % | 20 bp |
OPERATING AND FINANCIAL TREND REPORT | ||||||||
FROM OPERATIONS (IN THOUSANDS - EXCEPT PER SHARE AMOUNTS) | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2016 | % Change | ||||||
Overhead | ||||||||
Total Variable Overhead | $ | 2,430 | $ | 5,400 | 122.2 | % | ||
Total Regional Fixed Overhead | 823 | 875 | 6.3 | % | ||||
Total Corporate Fixed Overhead | 5,353 | 5,063 | -5.4 | % | ||||
Total Overhead | $ | 8,606 | $ | 11,338 | 31.7 | % | ||
Overhead as a percent of sales | 13.6 | % | 17.9 | % | 430 bp | |||
Consolidated EBITDA | $ | 18,930 | $ | 16,350 | -13.6 | % | ||
Consolidated EBITDA Margin | 29.9 | % | 25.8 | % | -410 bp | |||
Other Expenses and Interest | ||||||||
Depreciation & Amortization | $ | 3,322 | $ | 3,734 | 12.4 | % | ||
Non-Cash Stock Compensation | 1,089 | 958 | -12.0 | % | ||||
Interest Expense | 2,550 | 2,851 | 11.8 | % | ||||
Accretion of Discount on Convertible Subordinated Notes | 827 | 927 | 12.1 | % | ||||
Loss on Early Extinguishment of Debt | — | 567 | ||||||
Other, Net | 119 | (305 | ) | -356.3 | % | |||
Pretax Income | $ | 11,023 | $ | 7,618 | -30.9 | % | ||
Net Tax Provision | 4,605 | 3,047 | ||||||
GAAP Net Income | $ | 6,418 | $ | 4,571 | -28.8 | % | ||
Special Items, Net of tax except for** | ||||||||
Withdrawable Trust Income | $ | — | $ | |||||
Acquisition and Divestiture Expenses | 335 | 336 | ||||||
Severance Costs | 84 | 1,794 | ||||||
Consulting Fees | 76 | 175 | ||||||
Accretion on Convertible Subordinated Notes** | 827 | 927 | ||||||
Costs Related to Credit Facility | — | 369 | ||||||
Gain on Sale of Asset | — | (198 | ) | |||||
Other Special Items | 98 | — | ||||||
Tax Adjustment from Prior Period** | 141 | — | ||||||
Sum of Special Items, Net of tax | $ | 1,561 | $ | 3,403 | 118.0 | % | ||
Adjusted Net Income | $ | 7,979 | $ | 7,974 | -0.1 | % | ||
Adjusted Net Profit Margin | 12.6 | % | 12.6 | % | 0 bp | |||
Adjusted Basic Earnings Per Share | $ | 0.43 | $ | 0.48 | 11.6 | % | ||
Adjusted Diluted Earnings Per Share | $ | 0.42 | $ | 0.47 | 11.9 | % | ||
GAAP Basic Earnings Per Share | $ | 0.35 | $ | 0.27 | -22.9 | % | ||
GAAP Diluted Earnings Per Share | $ | 0.34 | $ | 0.27 | -20.6 | % | ||
Weighted Average Basic Shares Outstanding | 18,208 | 16,459 | ||||||
Weighted Average Diluted Shares Outstanding | 18,804 | 16,650 | ||||||
Reconciliation to Adjusted Consolidated EBITDA | ||||||||
Consolidated EBITDA | $ | 18,930 | $ | 16,350 | -13.6 | % | ||
Withdrawable Trust Income | — | |||||||
Acquisition and Divestiture Expenses | 508 | 516 | ||||||
Severance Costs | 127 | 2,759 | ||||||
Consulting Fees | 115 | 268 | ||||||
Adjusted Consolidated EBITDA | $ | 19,680 | $ | 19,893 | 1.1 | % | ||
Adjusted Consolidated EBITDA Margin | 31.1 | % | 31.4 | % | 30 bp |
(unaudited) | |||||||
December 31, 2015 | March 31, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 535 | $ | 871 | |||
Accounts receivable, net | 18,181 | 17,911 | |||||
Inventories | 5,654 | 5,782 | |||||
Prepaid expenses | 4,684 | 4,770 | |||||
Other current assets | 4,707 | 3,853 | |||||
Total current assets | 33,761 | 33,187 | |||||
Preneed cemetery trust investments | 63,291 | 60,432 | |||||
Preneed funeral trust investments | 85,553 | 83,132 | |||||
Preneed receivables, net | 27,998 | 28,224 | |||||
Receivables from preneed trusts, net | 13,544 | 13,050 | |||||
Property, plant and equipment, net | 214,874 | 216,864 | |||||
Cemetery property, net | 75,597 | 75,784 | |||||
Goodwill | 264,416 | 264,416 | |||||
Deferred charges and other non-current assets | 10,978 | 10,748 | |||||
Cemetery perpetual care trust investments | 43,127 | 41,341 | |||||
Total assets | $ | 833,139 | $ | 827,178 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt and capital lease obligations | $ | 12,236 | $ | 12,533 | |||
Accounts payable | 7,917 | 6,162 | |||||
Other liabilities | 524 | 2,535 | |||||
Accrued liabilities | 16,541 | 14,623 | |||||
Total current liabilities | 37,218 | 35,853 | |||||
Long-term debt, net of current portion | 103,495 | 139,413 | |||||
Revolving credit facility | 91,514 | 52,633 | |||||
Convertible subordinated notes due 2021 | 115,227 | 116,278 | |||||
Obligations under capital leases, net of current portion | 2,875 | 2,816 | |||||
Deferred preneed cemetery revenue | 56,721 | 56,692 | |||||
Deferred preneed funeral revenue | 31,748 | 31,209 | |||||
Deferred tax liability | 39,956 | 38,968 | |||||
Other long-term liabilities | 5,531 | 5,782 | |||||
Deferred preneed cemetery receipts held in trust | 63,291 | 60,432 | |||||
Deferred preneed funeral receipts held in trust | 85,553 | 83,132 | |||||
Care trusts’ corpus | 42,416 | 41,292 | |||||
Total liabilities | 675,545 | 664,500 | |||||
Commitments and contingencies: | |||||||
Stockholders’ equity: | |||||||
Common stock, $.01 par value; 80,000,000 shares authorized; 22,497,873 and 22,481,301 issued as of December 31, 2015 and March 31, 2016, respectively | 225 | 225 | |||||
Additional paid-in capital | 214,250 | 214,763 | |||||
Retained earnings | 3,385 | 7,956 | |||||
Treasury stock, at cost; 5,849,316 shares at December 31, 2015 and March 31, 2016 | (60,266 | ) | (60,266 | ) | |||
Total stockholders’ equity | 157,594 | 162,678 | |||||
Total liabilities and stockholders’ equity | $ | 833,139 | $ | 827,178 |
For the Three Months Ended March 31, | |||||||
2015 | 2016 | ||||||
Revenues: | |||||||
Funeral | $ | 50,137 | $ | 49,302 | |||
Cemetery | 13,116 | 14,029 | |||||
63,253 | 63,331 | ||||||
Field costs and expenses: | |||||||
Funeral | 28,415 | 27,781 | |||||
Cemetery | 7,302 | 7,862 | |||||
Depreciation and amortization | 2,802 | 3,336 | |||||
Regional and unallocated funeral and cemetery costs | 2,525 | 3,049 | |||||
41,044 | 42,028 | ||||||
Gross profit | 22,209 | 21,303 | |||||
Corporate costs and expenses: | |||||||
General and administrative costs and expenses | 7,170 | 9,247 | |||||
Home office depreciation and amortization | 520 | 398 | |||||
7,690 | 9,645 | ||||||
Operating income | 14,519 | 11,658 | |||||
Interest expense | (2,550 | ) | (2,851 | ) | |||
Accretion of discount on convertible subordinated notes | (827 | ) | (927 | ) | |||
Loss on early extinguishment of debt | — | (567 | ) | ||||
Other income (loss) | (119 | ) | 305 | ||||
Income before income taxes | 11,023 | 7,618 | |||||
Provision for income taxes | (4,605 | ) | (3,047 | ) | |||
Net income | $ | 6,418 | $ | 4,571 | |||
Basic earnings per common share: | $ | 0.35 | $ | 0.27 | |||
Diluted earnings per common share: | $ | 0.34 | $ | 0.27 | |||
Dividends declared per common share | $ | 0.025 | $ | 0.025 | |||
Weighted average number of common and common equivalent shares outstanding: | |||||||
Basic | 18,208 | 16,459 | |||||
Diluted | 18,804 | 16,650 |
For the Three Months Ended March 31, | |||||||
2015 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 6,418 | $ | 4,571 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Net gain on sale and disposal of assets | — | (187 | ) | ||||
Loss on early extinguishment of debt | — | 567 | |||||
Depreciation and amortization | 3,322 | 3,734 | |||||
Amortization of deferred financing costs | 226 | 221 | |||||
Accretion of discount on convertible subordinated notes | 827 | 927 | |||||
Provision for losses on accounts receivable | 424 | 523 | |||||
Stock-based compensation expense | 1,089 | 1,297 | |||||
Deferred income tax expense | 1,559 | 379 | |||||
Changes in operating assets and liabilities that provided (required) cash: | |||||||
Accounts and preneed receivables | 56 | (479 | ) | ||||
Inventories and other current assets | 3,224 | (727 | ) | ||||
Deferred charges and other | 111 | 230 | |||||
Preneed funeral and cemetery trust investments | (760 | ) | 7,560 | ||||
Accounts payable | (9 | ) | (1,755 | ) | |||
Accrued and other liabilities | (5,020 | ) | (147 | ) | |||
Deferred preneed funeral and cemetery revenue | (82 | ) | (568 | ) | |||
Deferred preneed funeral and cemetery receipts held in trust | 1,237 | (6,404 | ) | ||||
Net cash provided by operating activities | 12,622 | 9,742 | |||||
Cash flows from investing activities: | |||||||
Acquisitions and land for new construction | (4,250 | ) | (2,685 | ) | |||
Purchase of land and buildings previously leased | (600 | ) | — | ||||
Net proceeds from the sale of assets | — | 555 | |||||
Capital expenditures | (5,798 | ) | (3,595 | ) | |||
Net cash used in investing activities | (10,648 | ) | (5,725 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings on the revolving credit facility | 10,600 | 11,500 | |||||
Payments against the revolving credit facility | (10,100 | ) | (50,100 | ) | |||
Borrowings on the term loan | — | 39,063 | |||||
Payments against the term loan | (2,344 | ) | (2,813 | ) | |||
Payments on other long-term debt and obligations under capital leases | (370 | ) | (321 | ) | |||
Proceeds from the exercise of stock options and employee stock purchase plan contributions | 212 | 228 | |||||
Dividends on common stock | (463 | ) | (415 | ) | |||
Payment of loan origination costs related to the credit facility | (13 | ) | (717 | ) | |||
Excess tax benefit (deficiency) of equity compensation | 408 | (106 | ) | ||||
Net cash used in financing activities | (2,070 | ) | (3,681 | ) | |||
Net increase (decrease) in cash and cash equivalents | (96 | ) | 336 | ||||
Cash and cash equivalents at beginning of period | 413 | 535 | |||||
Cash and cash equivalents at end of period | $ | 317 | $ | 871 | |||
• | Adjusted Net Income is defined as net income from continuing operations plus adjustments for special items and other non-recurring expenses or credits. |
• | Consolidated EBITDA is defined as net income from continuing operations before income taxes, interest expenses, non-cash stock compensation, depreciation and amortization, and interest income and other, net. |
• | Adjusted Consolidated EBITDA is defined as Consolidated EBITDA plus adjustments for special items and non-recurring expenses or credits. |
• | Adjusted Free Cash Flow is defined as net cash provided by operations, adjusted by special items as deemed necessary, less cash for maintenance capital expenditures. |
• | Funeral Field EBITDA is defined as Funeral Gross Profit less depreciation and amortization, regional and unallocated overhead expenses and net financial income. |
• | Cemetery Field EBITDA is defined as Cemetery Gross Profit less depreciation and amortization, regional and unallocated overhead expenses and net financial income. |
• | Financial EBITDA is defined as Financial Revenue less Financial Expenses. |
• | Total Field EBITDA is defined as Gross Profit less depreciation and amortization, regional and unallocated overhead expenses. |
• | Special Items are defined as charges or credits such as withdrawable trust income (prior to 2016), acquisition and divestiture expenses, severance costs, loss on early retirement of debt and other costs, discrete tax items and other non-recurring amounts. Special items are taxed at the federal statutory rate of 34 percent for the three months ended March 31, 2015 and 35 percent for the three months ended March 31, 2016, except for the accretion of the discount on Convertible Notes as this is a non-tax deductible item and the tax adjustment from prior period. |
• | Adjusted Basic Earnings Per Share is defined as GAAP Basic Earnings Per Share, adjusted for special items. |
• | Adjusted Diluted Earnings Per Share is defined as GAAP Diluted Earnings Per Share, adjusted for special items. |
Three Months Ended March 31, | |||||||
2015 | 2016 | ||||||
Net Income | $ | 6,418 | $ | 4,571 | |||
Special items, net of tax except for ** | |||||||
Withdrawable Trust Income | $ | — | $ | ||||
Acquisition and Divestiture Expenses | 335 | 336 | |||||
Severance Costs | 84 | 1,794 | |||||
Consulting Fees | 76 | 175 | |||||
Accretion of Discount on Convertible Subordinated Notes ** | 827 | 927 | |||||
Costs Related to the Credit Facility | — | 369 | |||||
Gain on Sale of Asset | — | (198 | ) | ||||
Other Special Items | 98 | — | |||||
Tax Adjustment from Prior Period ** | 141 | — | |||||
Total Special items affecting net income | $ | 1,561 | $ | 3,403 | |||
Adjusted Net Income | $ | 7,979 | $ | 7,974 |
Three Months Ended March 31, | |||||||
2015 | 2016 | ||||||
Net Income | $ | 6,418 | $ | 4,571 | |||
Net Tax Provision | 4,605 | 3,047 | |||||
Pretax Income | $ | 11,023 | $ | 7,618 | |||
Interest expense | 2,550 | 2,851 | |||||
Accretion of Discount on Convertible Subordinated Notes | 827 | 927 | |||||
Loss on Early Extinguishment of Debt | — | 567 | |||||
Non-cash Stock Compensation | 1,089 | 958 | |||||
Depreciation & Amortization | 3,322 | 3,734 | |||||
Other, net | 119 | (305 | ) | ||||
Consolidated EBITDA | $ | 18,930 | $ | 16,350 | |||
Adjusted For: | |||||||
Withdrawable Trust Income | $ | — | $ | ||||
Acquisition and Divestiture Expenses | 508 | 516 | |||||
Severance Costs | 127 | 2,759 | |||||
Consulting Fees | 115 | 268 | |||||
Adjusted Consolidated EBITDA | $ | 19,680 | $ | 19,893 | |||
Revenue | $ | 63,253 | $ | 63,331 | |||
Adjusted Consolidated EBITDA Margin | 31.1 | % | 31.4 | % |
Funeral Field EBITDA | Three Months Ended March 31, | ||||||
2015 | 2016 | ||||||
Gross Profit (GAAP) | $ | 17,996 | $ | 16,968 | |||
Depreciation & Amortization | 1,789 | 2,078 | |||||
Regional & Unallocated Costs | 1,937 | 2,475 | |||||
Net Financial Income | (2,271 | ) | (2,197 | ) | |||
Funeral Field EBITDA | $ | 19,451 | $ | 19,324 |
Cemetery Field EBITDA | Three Months Ended March 31, | ||||||
2015 | 2016 | ||||||
Gross Profit (GAAP) | $ | 4,213 | $ | 4,335 | |||
Depreciation & Amortization | 1,013 | 1,258 | |||||
Regional & Unallocated Costs | 588 | 574 | |||||
Net Financial Income | (1,964 | ) | (2,103 | ) | |||
Cemetery Field EBITDA | $ | 3,850 | $ | 4,064 |
Total Field EBITDA | Three Months Ended March 31, | ||||||
2015 | 2016 | ||||||
Funeral Field EBITDA | $ | 19,451 | $ | 19,324 | |||
Cemetery Field EBITDA | 3,850 | 4,064 | |||||
Funeral Financial EBITDA | 2,271 | 2,197 | |||||
Cemetery Financial EBITDA | 1,964 | 2,103 | |||||
Total Field EBITDA | $ | 27,536 | $ | 27,688 |
Three Months Ended March 31, | |||||||
2015 | 2016 | ||||||
Cash Flow Provided by Operations | $ | 12,622 | $ | 9,742 | |||
Cash used for Maintenance Capital Expenditures | (1,846 | ) | (1,618 | ) | |||
Free Cash Flow | $ | 10,776 | $ | 8,124 | |||
Plus: Incremental Special Items: | |||||||
Acquisition and Divestiture Expenses | 508 | 516 | |||||
Severance Costs | 127 | 2,759 | |||||
Consulting Fees | 115 | 268 | |||||
Adjusted Free Cash Flow | $ | 11,526 | $ | 11,667 |
Three Months Ended March 31, | |||||||
2015 | 2016 | ||||||
GAAP Basic Earnings Per Share | $ | 0.35 | $ | 0.27 | |||
Special Items Affecting Net Income | 0.08 | 0.21 | |||||
Adjusted Basic Earnings Per Share | $ | 0.43 | $ | 0.48 |
Three Months Ended March 31, | |||||||
2015 | 2016 | ||||||
GAAP Diluted Earnings Per Share | $ | 0.34 | $ | 0.27 | |||
Special Items Affecting Net Income | 0.08 | 0.20 | |||||
Adjusted Diluted Earnings Per Share | $ | 0.42 | $ | 0.47 |
• | the ability to find and retain skilled personnel; |
• | the effects of competition; |
• | the execution of our Standards Operating, 4E Leadership and Strategic Acquisition Models; |
• | changes in the number of deaths in our markets; |
• | changes in consumer preferences; |
• | our ability to generate preneed sales; |
• | 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; |
• | 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. |
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