10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

                      FORM 10-Q

(Mark One)

☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

OR

☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

    For the transition period from ___________  to   ____________        

                         Commission File Number: 1-11961

CARRIAGE SERVICES, INC.

(Exact name of registrant as specified in its charter)

Delaware	76-0423828
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

3040 Post Oak Boulevard, Suite 300

Houston, Texas, 77056

(Address of principal executive offices)

(713) 332-8400

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $.01 per share	CSV	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Securities Exchange Act of 1934.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐  (Do not check if a smaller reporting company)	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

The number of shares of the registrant’s Common Stock, $.01 par value per share, outstanding as of April 30, 2021 was 18,048,354.

CARRIAGE SERVICES, INC.

INDEX

	Page
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements	3
Consolidated Balance Sheet as of December 31, 2020 and March 31, 2021	3
Consolidated Statements of Operations for the Three Months ended March 31, 2020 and 2021	4
Consolidated Statements of Cash Flows for the Three Months ended March 31, 2020 and 2021	5
Consolidated Statements of Changes in Stockholders' Equity for the Three Months ended March 31, 2020 and 2021	6
Condensed Notes to Consolidated Financial Statements	7
Cautionary Statement on Forward–Looking Statements	40
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	42
Item 3. Quantitative and Qualitative Disclosures About Market Risk	57
Item 4. Controls and Procedures	58
PART II – OTHER INFORMATION
Item 1. Legal Proceedings	59
Item 1A. Risk Factors	59
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	60
Item 3. Defaults Upon Senior Securities	60
Item 4. Mine Safety Disclosures	60
Item 5. Other Information	60
Item 6. Exhibits	60
SIGNATURE	61
INDEX OF EXHIBITS	62

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PART I – FINANCIAL INFORMATION

Item 1.Financial Statements.

CARRIAGE SERVICES, INC.

CONSOLIDATED BALANCE SHEET

(in thousands, except share data)

			(unaudited)
	December 31, 2020		March 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	889	$	406
Accounts receivable, net	25,103		25,585
Inventories	7,259		7,386
Prepaid and other current assets	2,076		2,076
Total current assets	35,327		35,453
Preneed cemetery trust investments	86,604		92,363
Preneed funeral trust investments	101,235		105,201
Preneed cemetery receivables, net	21,081		21,533
Receivables from preneed trusts, net	16,844		16,976
Property, plant and equipment, net	269,051		267,055
Cemetery property, net	101,134		101,109
Goodwill	392,978		391,972
Intangible and other non-current assets, net	29,542		29,502
Operating lease right-of-use assets	21,201		20,747
Cemetery perpetual care trust investments	70,828		75,815
Total assets	$	1,145,825	$	1,157,726
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of debt and lease obligations	$	3,432	$	3,301
Accounts payable	11,259		9,543
Accrued and other liabilities	31,138		39,599
Convertible subordinated notes due 2021	2,538		—
Total current liabilities	48,367		52,443
Acquisition debt, net of current portion	4,482		4,442
Credit facility	46,064		27,282
Senior notes due 2026	395,968		396,122
Obligations under finance leases, net of current portion	5,531		5,445
Obligations under operating leases, net of current portion	20,302		19,876
Deferred preneed cemetery revenue	47,846		48,840
Deferred preneed funeral revenue	27,992		28,181
Deferred tax liability	46,477		47,991
Other long-term liabilities	4,748		2,677
Deferred preneed cemetery receipts held in trust	86,604		92,363
Deferred preneed funeral receipts held in trust	101,235		105,201
Care trusts’ corpus	69,707		75,360
Total liabilities	905,323		906,223
Commitments and contingencies:
Stockholders’ equity:
Common stock, $0.01 par value; 80,000,000 shares authorized and 26,020,494 and 26,073,693 shares issued, respectively and 17,995,155 and 18,048,354 shares outstanding, respectively	260		261
Additional paid-in capital	239,989		238,056
Retained earnings	102,303		115,236
Treasury stock, at cost; 8,025,339 at both December 31, 2020 and March 31, 2021	(102,050)		(102,050)
Total stockholders’ equity	240,502		251,503
Total liabilities and stockholders’ equity	$	1,145,825	$	1,157,726

The accompanying condensed notes are an integral part of these Consolidated Financial Statements.

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CARRIAGE SERVICES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in thousands, except per share data)

	Three months ended March 31,
	2020		2021
Revenue:
Service revenue	$	40,732	$	47,757
Property and merchandise revenue	31,271		41,896
Other revenue	5,487		6,984
	77,490		96,637
Field costs and expenses:
Cost of service	21,057		20,967
Cost of merchandise	25,063		28,520
Cemetery property amortization	877		1,517
Field depreciation expense	3,290		3,136
Regional and unallocated funeral and cemetery costs	2,756		6,073
Other expenses	1,276		1,363
	54,319		61,576
Gross profit	23,171		35,061
Corporate costs and expenses:
General, administrative and other	5,946		8,834
Home office depreciation and amortization	382		289
Net loss (gain) on divestitures and impairments charges	14,693		(308)
Operating income	2,150		26,246
Interest expense	(8,428)		(7,584)
Accretion of discount on convertible subordinated notes	(65)		(20)
Other, net	(4)		(68)
Income (loss) before income taxes	(6,347)		18,574
Benefit (expense) for income taxes	2,136		(5,758)
Tax adjustment related to discrete items	14		117
Total benefit (expense) for income taxes	2,150		(5,641)
Net income (loss)	$	(4,197)	$	12,933
Basic earnings (loss) per common share:	$	(0.23)	$	0.72
Diluted earnings (loss) per common share:	$	(0.23)	$	0.71
Dividends declared per common share:	$	0.075	$	0.1000
Weighted average number of common and common equivalent shares outstanding:
Basic	17,805		17,965
Diluted	17,805		18,199

The accompanying condensed notes are an integral part of these Consolidated Financial Statements.

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CARRIAGE SERVICES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited and in thousands)

	Three months ended March 31,
	2020		2021
Cash flows from operating activities:
Net income (loss)	$	(4,197)	$	12,933
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,549		4,942
Provision for bad debt and credit losses	690		588
Stock-based compensation expense	831		1,307
Deferred income tax expense	3,596		1,514
Amortization of deferred financing costs	200		193
Amortization of capitalized commissions and non-compete agreements	328		320
Accretion of discount on convertible subordinated notes	65		20
Accretion of debt discount, net of debt premium on senior notes	75		80
Net loss (gain) on divestiture and impairment charges	14,693		(308)
Net loss on disposal of other assets	60		329
Other	19		—
Changes in operating assets and liabilities that provided (required) cash:
Accounts and preneed receivables	2,179		(1,521)
Inventories, prepaid and other current assets	(8,748)		(153)
Intangible and other non-current assets	(290)		(291)
Preneed funeral and cemetery trust investments	(2,890)		(2,952)
Accounts payable	(2,133)		(1,712)
Accrued and other liabilities	(114)		6,853
Deferred preneed funeral and cemetery revenue	1,080		1,183
Deferred preneed funeral and cemetery receipts held in trust	3,553		3,486
Net cash provided by operating activities	13,546		26,811
Cash flows from investing activities:
Acquisition of businesses	(28,000)		—
Acquisition of real estate	—		(350)
Proceeds from divestitures and sale of other assets	78		2,800
Capital expenditures	(2,738)		(4,347)
Net cash used in investing activities	(30,660)		(1,897)
Cash flows from financing activities:
Borrowings from the credit facility	63,200		15,168
Payments against the credit facility	(33,000)		(34,068)
Conversions and maturity of the convertible subordinated notes due 2021	—		(3,980)
Payments of debt issuance costs and transaction costs	(14)		(7)
Payments on acquisition debt and obligations under finance leases	(487)		(233)
Payments on contingent consideration recorded at acquisition date	(169)		(461)
Proceeds from the exercise of stock options and employee stock purchase plan	361		625
Taxes paid on restricted stock vestings and exercise of stock options	(234)		(642)
Dividends paid on common stock	(1,339)		(1,799)
Net cash provided by (used in) financing activities	28,318		(25,397)
Net increase (decrease) in cash and cash equivalents	11,204		(483)
Cash and cash equivalents at beginning of period	716		889
Cash and cash equivalents at end of period	$	11,920	$	406

The accompanying condensed notes are an integral part of these Consolidated Financial Statements.

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CARRIAGE SERVICES, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(unaudited and in thousands)

	Shares Outstanding	Common Stock		Additional Paid-in Capital		Retained Earnings		Treasury Stock		Total
Balance – December 31, 2019	17,855	$	259	$	242,147	$	86,213	$	(102,050)	$	226,569
Net loss - 2020	—	—		—		(4,197)		—		(4,197)
Issuance of common stock from employee stock purchase plan	27	—		361		—		—		361
Issuance of common stock to directors	9	—		142		—		—		142
Issuance of restricted common stock	10	—		—		—		—		—
Cancellation and surrender of restricted common stock	(10)	—		(234)		—		—		(234)
Stock-based compensation expense	—	—		689		—		—		689
Dividends on common stock	—	—		(1,339)		—		—		(1,339)
Other	18	—		468		—		—		468
Balance – March 31, 2020	17,909	$	259	$	242,234	$	82,016	$	(102,050)	$	222,459

	Shares Outstanding	Common Stock		Additional Paid-in Capital		Retained Earnings		Treasury Stock		Total
Balance – December 31, 2020	17,995	$	260	$	239,989	$	102,303	$	(102,050)	$	240,502
Net income - 2021	—	—		—		12,933		—		12,933
Issuance of common stock from employee stock purchase plan	18	1		478		—		—		479
Issuance of common stock to directors	5	—		177		—		—		177
Issuance of restricted common stock	9	—		—		—		—		—
Exercise of stock options	30	—		(148)		—		—		(148)
Cancellation and surrender of restricted common stock	(9)	—		(347)		—		—		(347)
Stock-based compensation expense	—	—		1,130		—		—		1,130
Dividends on common stock	—	—		(1,799)		—		—		(1,799)
Convertible notes conversions	—	—		(1,424)		—		—		(1,424)
Balance – March 31, 2021	18,048	$	261	$	238,056	$	115,236	$	(102,050)	$	251,503

The accompanying notes are an integral part of these Consolidated Financial Statements.

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CARRIAGE SERVICES, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1.BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company

Carriage Services, Inc. (“Carriage,” the “Company,” “we,” “us,” or “our”) is a leading provider of funeral and cemetery services and merchandise in the United States. As of March 31, 2021, we operated 173 funeral homes in 26 states and 32 cemeteries in 12 states. Our operations are reported in two business segments: Funeral Home Operations, which currently account for approximately 75% of our revenue and Cemetery Operations, which currently account for approximately 25% of our revenue.

Our funeral home operations are principally service businesses that generate revenue from sales of burial and cremation services and related merchandise, such as caskets and urns. Funeral services include consultation, the removal and preparation of remains, the use of funeral home facilities for visitation and memorial services and transportation services. We provide funeral services and products on both an “atneed” (time of death) and “preneed” (planned prior to death) basis.

Our cemetery operations generate revenue primarily through sales of cemetery interment rights (primarily grave sites, lawn crypts, mausoleum spaces and niches), related cemetery merchandise (such as memorial markers, outer burial containers and monuments) and services (interments, inurnments and installation of cemetery merchandise). We provide cemetery services and products on both an atneed and preneed basis.

Principles of Consolidation and Interim Condensed Disclosures

Our unaudited consolidated financial statements include the Company and its subsidiaries. All intercompany balances and transactions have been eliminated. Our interim consolidated financial statements are unaudited but include all adjustments, which consist of normal, recurring accruals, that are necessary for a fair presentation of our financial position and results of operations as of and for the interim periods presented. Our unaudited consolidated financial statements have been prepared in a manner consistent with the accounting principles described in our Annual Report on Form 10-K for the year ended December 31, 2020 unless otherwise disclosed herein, and should be read in conjunction therewith.

Reclassifications

Certain reclassifications have been made to prior period amounts on our Consolidated Statements of Cash Flows related to the amortization of non-compete agreements and on our Statement of Changes in Stockholders Equity related to the issuance of common stock to conform to the current period financial statement presentation with no effect on our previously reported Consolidated Statements of Operations and Consolidated Balance Sheet.

Use of Estimates

The preparation of our Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses. On an ongoing basis, we evaluate our estimates and judgments, which include those related to the realization of our accounts receivable, valuation of goodwill, intangible assets, deferred tax assets and liabilities and depreciation of property and equipment. 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 revenue 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.

Cash and Cash Equivalents

We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Funeral and Cemetery Receivables

Our funeral receivables are recorded in Accounts receivable, net and primarily consist of amounts due for funeral services already performed.

Atneed cemetery receivables and preneed cemetery receivables with payments expected to be received within one year from the balance sheet date are recorded in Accounts receivable, net. Preneed cemetery receivables with payments expected to

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be received beyond one year from the balance sheet date are recorded in Preneed cemetery receivables, net. Our cemetery receivables generally consist of preneed sales of cemetery interment rights and related products and services, which are typically financed through interest-bearing installment sales contracts, generally with terms of up to five years, with such interest income reflected as Other revenue. In substantially all cases, we receive an initial down payment at the time the contract is signed. 

For our funeral and atneed cemetery receivables, we have a collections policy where statements are sent to the customer at 30 days past due. Past due notification letters are sent at 45 days and continue until payment is received or the contract is placed with a third-party collections agency. For our preneed cemetery receivables, we have a collections policy where past due notification letters are sent to the customer beginning at 15 days past due and periodically thereafter until payment is received or the contract is cancelled.

Our allowance for credit losses reflects our best estimate of expected credit losses over the term of both our funeral and cemetery receivables. Our policy is to write off receivables when we have determined they will no longer be collectible. Write-offs are applied as a reduction to the allowance for credit losses and any recoveries of previous write-offs are netted against bad debt expense in the period recovered.

We determine our allowance for credit losses by using a loss-rate methodology, in which we assess our historical write-off of receivables against our total receivables over several years. From this historical loss-rate approach, we also consider the current and forecasted economic conditions expected to be in place over the life of our receivables. These estimates are impacted by a number of factors, including changes in the economy, demographics and competition in our local communities. We monitor our ongoing credit exposure through an active review of our customers’ receivables balance against contract terms and due dates. Our activities include timely performance of our accounts receivable reconciliations, assessment of our aging of receivables, dispute resolution and payment confirmation. We monitor any change in our historical write-off of receivables utilized in our loss-rate methodology and assess forecasted changes in market conditions within our credit reserve.

See Note 5 to the Consolidated Financial Statements herein for additional information related to our funeral and cemetery receivables.

Inventory

Inventory consists primarily of caskets, outer burial containers and cemetery monuments and markers and is recorded at the lower of its cost basis or net realizable value. Inventory is relieved using specific identification in fulfillment of performance obligations on our contracts.

Business Combinations

Tangible and intangible assets acquired and liabilities assumed are recorded at fair value and goodwill is recognized for any difference between the price of the acquisition and fair value. We recognize the assets acquired, the liabilities assumed and any non-controlling interest in the acquiree at the acquisition date, measured at the fair value as of that date. Acquisition related costs are recognized separately from the acquisition and are expensed as incurred. We customarily estimate related transaction costs known at closing. To the extent that information not available to us at the closing date subsequently becomes available during the allocation period, we may adjust goodwill, intangible assets, assets or liabilities associated with the acquisition.

During the three months ended March 31, 2020, we acquired one funeral home and cemetery combination business in Lafayette, California for $33.0 million in cash, of which $5.0 million was deposited in escrow in 2019 and $28.0 million was paid at closing in 2020. We acquired substantially all of the assets and assumed certain operating liabilities of these businesses.

Divested Operations

Prior to divesting a funeral home or cemetery, we first determine whether the sale of the net assets and activities (together referred to as a “set”) qualifies as a business. First, we perform a screen test to determine if the set is not a business. The principle of the screen is that if substantially all of the fair value of the gross assets sold resides in a single asset or group of similar assets, the set is not a business. If the screen is not met, we perform an assessment to determine if the set is a business by evaluating whether the set has both inputs and a substantive process that together significantly contribute to the ability to create outputs. When both inputs and a substantive process are present then the set is determined to be a business and we apply the guidance in Accounting Standards Codification (“ASC”) Topic 350 – Intangibles – Goodwill and Other to determine the accounting treatment of goodwill for that set (see discussion of Goodwill below). Goodwill is only allocated to the sale if the set is considered to be a business.

See Notes 3 and 4 to the Consolidated Financial Statements herein for additional information related to our divestitures.

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Goodwill

The excess of the purchase price over the fair value of identifiable net assets of funeral home businesses and cemeteries acquired is recorded as goodwill. Goodwill has an indefinite life and is not subject to amortization. As such, we test goodwill for impairment on an annual basis as of August 31st each year. Under current guidance, we are permitted to first assess qualitative factors to determine whether it is more-likely-than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test.

Our intent is to perform a quantitative impairment test at least once every three years and perform a qualitative assessment during the remaining two years. In addition to our annual test, we assess the impairment of goodwill whenever events or changes in circumstances indicate that the carrying value of a reporting unit may be greater than fair value. Factors that could trigger an interim impairment review include, but are not limited to, significant negative industry or economic trends and significant adverse changes in the business climate, which may be indicated by a decline in our market capitalization or decline in operating results.

When we divest a portion of a reporting unit that constitutes a business in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), we allocate goodwill associated with that business to be included in the gain or loss on divestiture. The goodwill allocated is based on the relative fair values of the business being divested and the portion of the reporting unit that will be retained. Additionally, after each divestiture, we will test the goodwill remaining in the portion of the reporting unit to be retained for impairment using a qualitative assessment unless we deem a quantitative assessment to be appropriate to ensure the fair value of our reporting units is greater than their carrying value.

See Note 3 to the Consolidated Financial Statements included herein for additional information related to our goodwill.

Intangible Assets

Our intangible assets include tradenames resulting from acquisitions and are included in Intangible and other non-current assets, net on our Consolidated Balance Sheet. Our tradenames are considered to have an indefinite life and are not subject to amortization. As such, we test our intangible assets for impairment on an annual basis as of August 31st each year. Under current guidance, we are permitted to first assess qualitative factors to determine whether it is more-likely-than not that the fair value of the tradename is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test.

Our intent is to perform a quantitative impairment test at least once every three years and perform a qualitative assessment during the remaining two years. In addition to our annual test, we assess the impairment of intangible assets whenever certain events or changes in circumstances indicate that the carrying value of the intangible asset may be greater than the fair value. Factors that could trigger an interim impairment review include, but are not limited to, significant under-performance relative to historical or projected future operating results and significant negative industry or economic trends.

See Note 9 to the Consolidated Financial Statements included herein for additional information related to our intangible assets.

Preneed and Perpetual Care Trust Funds

Preneed sales generally require deposits to a trust or purchase of a third-party insurance product. We have established a variety of trusts in connection with funeral home and cemetery operations as required under applicable state laws. Such trusts include (i) preneed funeral trusts; (ii) preneed cemetery merchandise and service trusts; and (iii) cemetery perpetual care trusts.

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.

Our trust fund assets are reflected in our financial statements as Preneed cemetery trust investments, Preneed funeral trust investments and Cemetery perpetual care trust investments. 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 fair value of our trust fund assets are accounted for as Collateralized Financing Entities (“CFEs”) in ASC Topic 810. The accounting guidance for CFEs allows companies to elect to measure both the financial assets and financial liabilities using the more observable of the fair value of the financial assets or fair value of the financial liabilities. Pursuant to this guidance, we have determined the fair value of the financial assets of the trusts are more observable and we first measure those financial assets at fair value. Our fair value of the financial liabilities mirror the fair value of the financial assets, in accordance with the ASC. Any changes in fair value are recognized in earnings.

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In accordance with ASC Topic 326, we present our credit losses for fixed income securities as an allowance rather than as a write-down on the fixed income securities we do not intend to sell and it is likely that we will not be required to sell prior to their anticipated recovery.

In accordance with respective state laws, we are required to deposit a specified amount into perpetual and memorial care trust funds for each interment right and certain memorials sold. Income from the trust funds is distributed to us and used to provide for the care and maintenance of 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 the 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 the majority of our funeral and cemetery trust funds.

See Notes 6 and 7 to the Consolidated Financial Statements herein for additional information related to our preneed and perpetual care trust funds.

Fair Value Measurements

We measure the securities held by our funeral merchandise and service, cemetery merchandise and service, and cemetery perpetual care trusts at fair value on a recurring basis in accordance with ASC Topic 820. This guidance defines fair value as the price that would be received in 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). The guidance establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.

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. 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 not elected to measure any additional financial instruments and certain other items at fair value that are not currently required to be measured at fair value.

See Notes 6 and 8 to the Consolidated Financial Statements herein for additional required disclosures related to our fair value measurement of our financial assets and liabilities.

Capitalized Commissions on Preneed Contracts

We capitalize sales commissions and other direct selling costs related to preneed cemetery merchandise and services and preneed funeral trust contracts as these costs are incremental and recoverable costs of obtaining a contract with a customer. Our capitalized commissions on preneed contracts are amortized on a straight-line basis over the average maturity period of ten years for our preneed funeral trust contracts and eight years for our preneed cemetery merchandise and services contracts.

The selling costs related to the sales of cemetery interment rights, which include real property and other costs related to cemetery development activities, continue to be expensed using the specific identification method in the period in which the sale of the cemetery interment right is recognized as revenue. The selling costs related to preneed funeral insurance contracts continue to be expensed in the period incurred as these contracts are not included on our Consolidated Balance Sheet.

See Note 9 to the Consolidated Financial Statements herein for additional information related to our capitalized commissions on preneed contracts.

Property, Plant and Equipment

Property, plant and equipment (including equipment under finance leases) are stated at cost. The costs of ordinary maintenance and repairs are charged to operations as incurred, while renewals and major replacements that extend the useful economic life of the asset are capitalized. Depreciation of property, plant and equipment (including equipment under finance leases) is computed based on the straight-line method over the estimated useful lives of the assets.

Long-lived assets, such as property, plant and equipment subject to depreciation and amortization, are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC Topic 360 – Property, Plant and Equipment.

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Property, plant and equipment is comprised of the following (in thousands):

	December 31, 2020		March 31, 2021
Land	$	82,615	$	81,981
Buildings and improvements	240,567		240,988
Furniture, equipment and automobiles	91,302		91,481
Property, plant and equipment, at cost	414,484		414,450
Less: accumulated depreciation	(145,433)		(147,395)
Property, plant and equipment, net	$	269,051	$	267,055

During the three months ended March 31, 2021, we acquired land for $0.4 million. We also divested two funeral homes that had a carrying value of property, plant and equipment of $1.5 million, which was included in the gain on sale of divestitures and recorded in Net loss (gain) on divestitures and impairment charges on our Consolidated Statements of Operations, described in Note 4 to the Consolidated Financial Statements included herein.

Our growth and maintenance capital expenditures totaled $2.7 million and $4.3 million for the three months ended March 31, 2020 and 2021, respectively, for property, plant, equipment and cemetery development. In addition, we recorded depreciation expense of $3.6 million and $3.4 million for the three months ended March 31, 2020 and 2021, respectively.

Cemetery Property

When we acquire a cemetery, we utilize an internal and external approach to determine the fair value of the cemetery property. From an external perspective, we obtain an accredited appraisal to provide reasonable assurance for property existence, property availability (unrestricted) for development, property lines, available spaces to sell, identifiable obstacles or easements and general valuation inclusive of known variables in that market. From an internal perspective, we conduct a detailed analysis of the acquired cemetery property using other cemeteries in our portfolio as a benchmark. This provides the added benefit of relevant data that is not available to third party appraisers. Through this thorough internal process, the Company is able to identify viable costs of property based on historical experience, particular markets and demographics, reasonable margins, practical retail prices and park infrastructure and condition.

Cemetery property was $101.1 million at both December 31, 2020 and March 31, 2021, net of accumulated amortization of $46.6 million and $48.1 million, respectively. When cemetery property is sold, the value of the cemetery property (interment right costs) is expensed as amortization using the specific identification method in the period in which the sale of the interment right is recognized as revenue. We recorded amortization expense for cemetery interment rights of $0.9 million and $1.5 million for the three months ended March 31, 2020 and 2021, respectively.

Leases

We have operating and finance leases. We lease certain office facilities, certain funeral homes and equipment under operating leases with original terms ranging from one to nineteen years. Many leases include one or more options to renew, some of which include options to extend the leases for up to 26 years. We lease certain funeral homes under finance leases with original terms ranging from ten to forty years. We do not have lease agreements with residual value guarantees, sale-leaseback terms, material restrictive covenants or related parties. We do not have any material sublease arrangements.

We determine if an arrangement is a lease at inception based on the facts and circumstances of the agreement. A right-of-use (“ROU”) asset represents our right to use the underlying asset for the lease term and the lease liability represents our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized on our Consolidated Balance Sheet at the lease commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The lease terms used to calculate the ROU asset and related lease liability include options to extend the lease when it is reasonably certain that we will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense, while the expense for finance leases is recognized as depreciation expense and interest expense using the accelerated interest method of recognition. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or liabilities. These are expensed as incurred and recorded as variable lease expense. We have real estate lease agreements which require payments for lease and non-lease components and account for these as a single lease component. Leases with an initial term of 12 months or less, that do not include an option to renew the underlying asset, are not recorded on our Consolidated Balance Sheet and expense is recognized on a straight-line basis over the lease term.

Operating lease ROU assets are included in Operating lease right-of-use assets and operating lease liabilities are included in Current portion of operating lease obligations and Obligations under operating leases, net of current portion on our

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Consolidated Balance Sheet. Finance lease ROU assets are included in Property, plant and equipment, net and finance lease liabilities are included in Current portion of finance lease obligations and Obligations under finance leases, net of current portion on our Consolidated Balance Sheet.

See Notes 13 to the Consolidated Financial Statements included herein for additional information related to our leases.

Equity Plans and Stock-Based Compensation

We have equity-based employee and director compensation plans under which we have granted stock awards, stock options and performance awards. We also have an employee stock purchase plan (the “ESPP”). We recognize compensation expense in an amount equal to the fair value of the stock-based awards expected to vest or to be purchased over the requisite service period. We recognize the effect of forfeitures in compensation cost when they occur and any previously recognized compensation cost for an award is reversed in the period that the award is forfeited.

Fair value is determined on the date of the grant. The fair value of restricted stock is determined using the stock price on the grant date. The fair value of options or awards containing options is determined using the Black-Scholes valuation model or the Monte-Carlo simulation pricing model. The fair value of the performance awards related to market performance conditions is determined using a Monte-Carlo simulation pricing model. The fair value of the ESPP is determined based on the discount element offered to employees and the embedded option element, which is determined using an option calculation model.

We recognize all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) as income tax benefit or expense in the income statement. We treat the tax effects of exercised or vested awards as discrete items in the reporting period in which they occur. Excess tax benefits or deficiencies related to share-based payments are included in operating cash flows on the Consolidated Statements of Cash Flows.

See Note 14 to the Consolidated Financial Statements included herein for additional information related to our equity plans and stock-based compensation.

Revenue Recognition

Funeral and Cemetery Operations Revenue is recognized when control of the merchandise or services is transferred to the customer. Our performance obligations include the delivery of funeral and cemetery merchandise and services and cemetery property interment rights. Control transfers when merchandise is delivered or services are performed. For cemetery property interment rights, control transfers to the customer when the property is developed and the interment right has been sold and can no longer be marketed or sold to another customer. Sales taxes collected are recognized on a net basis in our consolidated financial statements. On our atneed contracts, we generally deliver the merchandise and perform the services at the time of need.

Memorial services frequently include performance obligations to direct the service, provide facilities and motor vehicles, catering, flowers, and stationary products. All other performance obligations on these contracts, including arrangement, removal, preparation, embalming, cremation, interment, and delivery of urns and caskets and related memorialization merchandise are fulfilled at the time of need. Personalized marker merchandise and marker installation services sold on atneed contracts are recognized when control is transferred to the customer, generally when the marker is delivered and installed in the cemetery.

Some of our contracts with customers include multiple performance obligations. For these contracts, we allocate the transaction price to each performance obligation based on its relative standalone selling price, which is based on prices charged to customers per our general price list. Packages for service and ancillary items are offered to help the customer make decisions during emotional and stressful times. Package discounts are reflected net in Revenue. We recognize revenue when the merchandise is transferred or the service is performed, in satisfaction of the corresponding performance obligation. Sales taxes collected are recognized on a net basis in our Consolidated Financial Statements.

Ancillary funeral service revenue, which is recorded in Other revenue, represents revenue from our flower shop, pet cremation and online cremation businesses.

The earnings from our preneed trust investments, as well as trust management fees charged by our wholly-owned registered investment advisory firm (“CSV RIA”) are recorded in Other revenue. As of March 31, 2021, CSV RIA provided investment management and advisory services to approximately 80% 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.

Balances due on undelivered preneed funeral trust contracts have been reclassified to reduce Deferred preneed funeral revenue on our Consolidated Balance Sheet of $8.2 million and $8.1 million at December 31, 2020 and March 31, 2021, respectively. As these performance obligations are to be completed after the date of death, we cannot quantify the recognition of revenue in future periods. However, we estimate an average maturity period of ten years for preneed funeral contracts.

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Balances due from customers on delivered preneed cemetery contracts are included in Accounts receivable, net and Preneed cemetery receivables, net on our Consolidated Balance Sheet. Balances due on undelivered preneed cemetery contracts have been reclassified to reduce Deferred preneed cemetery revenue on our Consolidated Balance Sheet. The transaction price allocated to preneed merchandise and service performance obligations that were unfulfilled were $7.9 million and $8.5 million at December 31, 2020 and March 31, 2021, respectively. As these performance obligations are to be completed after the date of death, we cannot quantify the recognition of revenue in future periods. However, we estimate an average maturity period of eight years for preneed cemetery contracts.

See Note 16 to the Consolidated Financial Statements herein for additional information related to revenue.

Income Taxes

We and our subsidiaries file a consolidated U. S. federal income tax return, separate income tax returns in 15 states in which we operate and combined or unitary income tax returns in 14 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 classify our deferred tax liabilities and assets as non-current on our Consolidated Balance Sheet.

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 the financial statements; provide certain disclosures of uncertain tax matters; and specify how reserves for uncertain tax positions should be classified on our Consolidated Balance Sheet.

The Consolidated Appropriations Act was signed into law on December 27, 2020. This Act included several tax provisions directly benefiting individual and corporate taxpayers. The primary benefit in this legislation is a temporary allowance for full deduction for business meals paid or incurred between December 31, 2020 and January 1, 2023.

We filed carryback refund claims for the 2018 and 2019 tax years as allowed by the legislative changes included in the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was enacted March 27, 2020. As a result of requesting a tax refund in excess of $5 million, we must receive Joint Committee approval and undergo an audit for the tax year ending December 31, 2018. This audit is currently in progress. In 2020, the 2018 tax return was amended to take full advantage of the CARES Act legislative benefits resulting in additional losses that increase the amount of our carryback refund claim. The majority of the net operating losses generated in 2018 are the result of filing non-automatic accounting method changes relating to the recognition of revenue from our cemetery property and merchandise and services sales. Due to the uncertainty of receiving Internal Revenue Service (“IRS”) approval regarding our non-automatic accounting method changes, a reserve has been recorded against the benefit derived from this carrying back that the net operating losses generated. At both December 31, 2020 and March 31, 2021, the reserve for uncertain tax positions was $3.7 million.

Income tax expense during interim periods is based on our forecasted annual effective tax rate plus any discrete items, which are recorded in the period in which they occur. Discrete items include, but are not limited to, such events as changes in estimates due to finalization of income tax returns, tax audit settlements, tax effects of exercised or vested stock-based awards and increases or decreases in valuation allowances on deferred tax assets.

Our income tax benefit was $2.2 million for the three months ended March 31, 2020 compared to an income tax expense of $5.6 million for the three months ended March 31, 2021. Our operating tax rate before discrete items was 33.6% and 31.0% for the three months ended March 31, 2020 and 2021, respectively.

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.

Share-based awards that contain non-forfeitable 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 attributable to common stockholders to exclude outstanding unvested restricted stock awards, using the two-class method, in both the basic and diluted weighted average shares outstanding calculation. 

See Note 15 to the Consolidated Financial Statements included herein related to the computation of earnings per share.

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Subsequent Events

We have evaluated events and transactions during the period subsequent to March 31, 2021 through the date the financial statements were issued for potential recognition or disclosure in the accompanying financial statements covered by this report.

See Note 18 to the Consolidated Financial Statements included herein for additional information related to our subsequent events.

2.RECENTLY ISSUED ACCOUNTING STANDARDS

Accounting Pronouncements Not Yet Adopted

Reference Rate Reform

In March 2020, the FASB issued ASU, Reference Rate Reform (“Topic 848”) to provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference London InterBank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company did not utilize the optional expedients and exceptions provided by this ASU during the three months ended March 31, 2021.

3.GOODWILL

The following table presents changes in goodwill in the accompanying Consolidated Balance Sheet (in thousands):

	December 31, 2020		March 31, 2021
Goodwill at the beginning of the period	$	398,292	$	392,978
Net increase in goodwill related to acquisitions	14,054		—
Decrease in goodwill related to divestitures	(5,736)		(1,006)
Decrease in goodwill related to impairments	(13,632)		—
Goodwill at the end of the period	$	392,978	$	391,972

During the three months ended March 31, 2021, we allocated $1.0 million of goodwill to the sale of one funeral home for a loss recorded in Net loss (gain) on divestitures and impairment charges.

4.DIVESTED OPERATIONS

During the three months ended March 31, 2021, we sold two funeral homes for $2.8 million. During the three months ended March 31, 2020, we did not sell any funeral homes or cemeteries.

The operating results of these divested funeral homes are reflected in our Consolidated Statements of Operations as shown in the table below (in thousands):

	Three months ended March 31,
	2020		2021
Revenue	$	—	$	282
Operating income	—		60
Gain on divestitures(1)	—		308
Income tax expense	—		(114)
Net income from divested operations, after tax	$	—	$	254

(1) Gain on divestitures is recorded in Net loss (gain) on divestitures and impairment charges on our Consolidated Statements of Operations.

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5.RECEIVABLES

Accounts Receivable

Accounts receivable is comprised of the following (in thousands):

	March 31, 2021
	Funeral		Cemetery		Corporate		Total
Trade and financed receivables	$	9,827	$	12,451	$	—	$	22,278
Other receivables	426		2,769		1,395		4,590
Allowance for credit losses	(284)		(999)		—		(1,283)
Accounts receivable, net	$	9,969	$	14,221	$	1,395	$	25,585

	December 31, 2020
	Funeral		Cemetery		Corporate		Total
Trade and financed receivables	$	11,448	$	12,230	$	—	$	23,678
Other receivables	367		2,144		201		2,712
Allowance for credit losses	(327)		(960)		—		(1,287)
Accounts receivable, net	$	11,488	$	13,414	$	201	$	25,103

Other receivables include supplier rebates, commissions due from third party insurance companies, perpetual care income receivables and proceeds due from an insurance claim. We do not provide an allowance for credit losses for these receivables as we have historically not had any collectability issues nor do we expect any in the foreseeable future.

The following table summarizes the activity in our allowance for credit losses by portfolio segment (in thousands):

	January 1, 2021		Provision for Credit Losses		Write Offs		Recoveries		March 31, 2021
Trade and financed receivables:
Funeral	$	(327)	$	(203)	$	553	$	(307)	$	(284)
Cemetery	(960)		(139)		100		—		(999)
Total allowance for credit losses on Trade and financed receivables	$	(1,287)	$	(342)	$	653	$	(307)	$	(1,283)

Preneed Cemetery Receivables

Our preneed cemetery receivables are comprised of the following (in thousands):

	December 31, 2020		March 31, 2021
Cemetery interment rights	$	36,696	$	38,108
Cemetery merchandise and services	10,526		10,789
Cemetery financed receivables	$	47,222	$	48,897

The components of our preneed cemetery receivables are as follows (in thousands):

	December 31, 2020		March 31, 2021
Preneed cemetery receivables	$	47,222	$	48,897
Less: unearned finance charges	(4,348)		(4,508)
Preneed cemetery receivables, at amortized cost	$	42,874	$	44,389
Less: allowance for credit losses	(2,604)		(2,864)
Less: balances due on undelivered cemetery preneed contracts	(7,919)		(8,540)
Less: amounts in accounts receivable	(11,270)		(11,452)
Preneed cemetery receivables, net	$	21,081	$	21,533

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The following table summarizes the activity in our allowance for credit losses for Preneed cemetery receivables, net (in thousands):

	January 1, 2021		Provision for Credit Losses		Write Offs		March 31, 2021
Total allowance for credit losses on Preneed cemetery receivables, net	$	(1,644)	$	(246)	$	25	$	(1,865)

The amortized cost basis of our preneed cemetery receivables by year of origination as of March 31, 2021 is as follows (in thousands):

	2021		2020		2019		2018		2017		Prior		Total
Total preneed cemetery receivables, at amortized cost	$	7,913	$	16,490	$	9,585	$	5,118	$	2,814	$	2,469	$	44,389

The aging of past due preneed cemetery receivables as of March 31, 2021 is as follows (in thousands):

	31-60 Past Due		61-90 Past Due		91-120 Past Due		>120 Past Due		Total Past Due		Current		Total
Recognized revenue	$	623	$	404	$	194	$	1,990	$	3,211	$	32,953	$	36,164
Deferred revenue	184		140		46		600		970		11,763		12,733
Total contracts	$	807	$	544	$	240	$	2,590	$	4,181	$	44,716	$	48,897

6.TRUST INVESTMENTS

Preneed trust investments represent trust fund assets that we are generally permitted to withdraw as the services and merchandise are provided to customers. Preneed funeral and cemetery contracts are secured by payments from customers, less amounts not required by law to be deposited into trust. These earnings are recognized in Other revenue on our Consolidated Statements of Operations, when a service is performed or merchandise is delivered. Trust management fees charged by CSV RIA are included as revenue in the period in which they are earned. Our investments are diversified across multiple industry segments using a balanced allocation strategy to minimize long-term risk. We do not intend to sell and it is likely that we will not be required to sell the securities prior to their anticipated recovery.

Cemetery perpetual care trust investments represent a portion of the proceeds from the sale of cemetery property interment rights which we are required by various state laws to deposit into perpetual care trust funds. The income earned from these perpetual care trusts offsets maintenance expenses for cemetery property and memorials. This trust fund income is recognized in Other revenue.

Where quoted prices are available in an active market, investments held by the trusts are classified as Level 1 investments pursuant to the three-level valuation hierarchy. Our Level 1 investments include cash, U.S. treasury debt, common stock and equity mutual funds. Where quoted market prices are not available for the specific security, then fair values are estimated by using quoted prices of similar securities in active markets or inputs other than quoted prices that can corroborate observable market data. These investments are fixed income securities, including foreign debt, corporate debt, preferred stocks, mortgage-backed securities and fixed income mutual funds and other investments, all of which are classified within Level 2 of the valuation hierarchy. We review and update our fair value hierarchy classifications quarterly. See Note 8 to the Consolidated Financial Statements included herein for further information of the fair value measurement.

Changes in the fair value of our trust fund assets (Preneed funeral, cemetery and perpetual care trust investments) are offset by changes in the fair value of our trust fund liabilities (Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus) and reflected in Other, net. There is no impact on earnings until such time the services are performed or the merchandise is delivered, causing the contract to be withdrawn from the trust in accordance with state regulations and the gain or loss is allocated to the contract.

For fixed income securities in an unrealized loss position, we first assess whether we intend to sell or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For fixed income securities that do not meet the aforementioned criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If our assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis.

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We rely on our trust investments to provide funding for the various contractual obligations that arise upon maturity of the underlying preneed contracts. Because of the long-term relationship between the establishment of trust investments and the required performance of the underlying contractual obligations, the impact of current market conditions that may exist at any given time is not necessarily indicative of our ability to generate profit on our future performance obligations.

Preneed Cemetery Trust Investments

The components of Preneed cemetery trust investments on our Consolidated Balance Sheet are as follows (in thousands):

	December 31, 2020		March 31, 2021
Preneed cemetery trust investments, at market value	$	89,081	$	94,882
Less: allowance for contract cancellation	(2,477)		(2,519)
Preneed cemetery trust investments	$	86,604	$	92,363

The cost and market values associated with preneed cemetery trust investments at March 31, 2021 are detailed below (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	1,464	$	—	$	—	$	1,464
Fixed income securities:
Foreign debt	2	15,996		2,244		(620)		17,620
Corporate debt	2	14,509		1,849		(91)		16,267
Preferred stock	2	11,922		689		(360)		12,251
Mortgage-backed securities	2	—		—		—		—
Common stock	1	31,925		7,912		(3,508)		36,329
Mutual funds:
Equity	1	27		1		—		28
Fixed Income	2	8,110		1,729		(137)		9,702
Trust securities		$	83,953	$	14,424	$	(4,716)	$	93,661
Accrued investment income		$	1,221					$	1,221
Preneed cemetery trust investments								$	94,882
Market value as a percentage of cost								111.6		%

The estimated maturities of the fixed income securities (excluding mutual funds) included above are as follows (in thousands):

Due in one year or less	$	—
Due in one to five years	13,602
Due in five to ten years	8,505
Thereafter	24,031
Total fixed income securities	$	46,138

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The cost and market values associated with preneed cemetery trust investments at December 31, 2020 are detailed below (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	1,859	$	—	$	—	$	1,859
Fixed income securities:
Foreign debt	2	15,953		2,083		(702)		17,334
Corporate debt	2	14,856		1,820		(358)		16,318
Preferred stock	2	11,886		980		(336)		12,530
Mortgage-backed securities	2	272		—		(159)		113
Common stock	1	30,253		7,642		(6,601)		31,294
Mutual funds:
Fixed income	2	7,494		1,331		(185)		8,640
Trust Securities		$	82,573	$	13,856	$	(8,341)	$	88,088
Accrued investment income		$	993					$	993
Preneed cemetery trust investments								$	89,081
Market value as a percentage of cost								106.7		%

The following table summarized our fixed income securities (excluding mutual funds) within our preneed cemetery trust investments in an unrealized loss position at March 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	March 31, 2021
	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	$	2,590	$	(114)	$	509	$	(506)	$	3,099	$	(620)
Corporate debt	735		(9)		682		(82)		1,417		(91)
Preferred stock	3,912		(324)		837		(36)		4,749		(360)
Total fixed income securities with an unrealized loss	$	7,237	$	(447)	$	2,028	$	(624)	$	9,265	$	(1,071)

The following table summarized our fixed income securities (excluding mutual funds) within our preneed cemetery trust investments in an unrealized loss position at December 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	December 31, 2020
	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	$	2,517	$	(57)	$	371	$	(645)	$	2,888	$	(702)
Corporate debt	784		(99)		542		(259)		1,326		(358)
Preferred stock	709		(118)		4,049		(218)		4,758		(336)
Mortgage-backed securities	—		—		112		(159)		112		(159)
Total fixed income securities with an unrealized loss	$	4,010	$	(274)	$	5,074	$	(1,281)	$	9,084	$	(1,555)

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Preneed cemetery trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Investment income	$	319	$	467
Realized gains	1,916		4,092
Realized losses	(1,372)		(2,518)
Unrealized gains (losses), net	(16,305)		9,708
Expenses and taxes	(187)		(327)
Net change in deferred preneed cemetery receipts held in trust	15,629		(11,422)
	$	—	$	—

Purchases and sales of investments in the preneed cemetery trusts are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Purchases	$	(18,857)	$	(8,411)
Sales	13,231		8,049

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 payments from customers, less retained amounts not required to be deposited into trust.

The components of Preneed funeral trust investments on our Consolidated Balance Sheet are as follows (in thousands):

	December 31, 2020		March 31, 2021
Preneed funeral trust investments, at market value	$	104,166	$	108,131
Less: allowance for contract cancellation	(2,931)		(2,930)
Preneed funeral trust investments	$	101,235	$	105,201

The cost and market values associated with preneed funeral trust investments at March 31, 2021 are detailed below (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	18,119	$	—	$	—	$	18,119
Fixed income securities:
U.S treasury debt	1	816		5		—		821
Foreign debt	2	14,959		2,142		(551)		16,550
Corporate debt	2	12,826		1,639		(87)		14,378
Preferred stock	2	10,816		637		(340)		11,113
Common stock	1	29,618		7,546		(3,120)		34,044
Mutual funds:
Equity	1	26		1		—		27
Fixed income	2	6,600		1,534		(87)		8,047
Other investments	2	3,901		—		—		3,901
Trust securities		$	97,681	$	13,504	$	(4,185)	$	107,000
Accrued investment income		$	1,131					$	1,131
Preneed funeral trust investments								$	108,131
Market value as a percentage of cost								109.5		%

- 22 -

The estimated maturities of the fixed income securities (excluding mutual funds) included above are as follows (in thousands):

Due in one year or less	$	821
Due in one to five years	12,143
Due in five to ten years	7,855
Thereafter	22,043
Total fixed income securities	$	42,862

The cost and market values associated with preneed funeral trust investments at December 31, 2020 are detailed below (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	18,478	$	—	$	—	$	18,478
Fixed income securities:
U.S. treasury debt	1	819		6		—		825
Foreign debt	2	15,144		2,018		(634)		16,528
Corporate debt	2	13,292		1,638		(310)		14,620
Preferred stock	2	10,944		900		(298)		11,546
Mortgage-backed securities	2	293		1		(155)		139
Common stock	1	28,327		7,364		(6,052)		29,639
Mutual funds:
Fixed income	2	6,475		1,198		(121)		7,552
Other investments	2	3,928		—		—		3,928
Trust securities		$	97,700	$	13,125	$	(7,570)	$	103,255
Accrued investment income		$	911					$	911
Preneed funeral trust investments								$	104,166
Market value as a percentage of cost								105.7		%

The following table summarized our fixed income securities (excluding mutual funds) within our preneed funeral trust investment in an unrealized loss position at March 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	March 31, 2021
	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	$	2,270	$	(100)	$	456	$	(451)	$	2,726	$	(551)
Corporate debt	705		(9)		654		(78)		1,359		(87)
Preferred stock	3,750		(311)		599		(29)		4,349		(340)
Total fixed income securities with an unrealized loss	$	6,725	$	(420)	$	1,709	$	(558)	$	8,434	$	(978)

- 23 -

The following table summarized our fixed income securities (excluding mutual funds) within our preneed funeral trust investment in an unrealized loss position at December 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	December 31, 2020
	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	$	2,225	$	(55)	$	337	$	(579)	$	2,562	$	(634)
Corporate debt	763		(96)		528		(214)		1,291		(310)
Preferred stock	506		(87)		3,942		(211)		4,448		(298)
Mortgage-backed securities	—		—		111		(155)		111		(155)
Total fixed income securities with an unrealized loss	$	3,494	$	(238)	$	4,918	$	(1,159)	$	8,412	$	(1,397)

Preneed funeral trust investment security transactions recorded in Other, net on the Consolidated Statements of Operations are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Investment income	$	258	$	369
Realized gains	2,551		3,871
Realized losses	(1,129)		(2,368)
Unrealized gains (losses), net	(15,274)		9,319
Expenses and taxes	(97)		(196)
Net change in deferred preneed funeral receipts held in trust	13,691		(10,995)
	$	—	$	—

Purchases and sales of investments in the preneed funeral trusts are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Purchases	$	(18,538)	$	(7,628)
Sales	15,968		7,524

Cemetery Perpetual Care Trust Investments

Care trusts’ corpus on our Consolidated Balance Sheet represent the corpus of those trusts plus undistributed income. The components of Care trusts’ corpus are as follows (in thousands):

	December 31, 2020		March 31, 2021
Cemetery perpetual care trust investments, at market value	$	70,828	$	75,815
Obligations due from trust	(1,121)		(455)
Care trusts’ corpus	$	69,707	$	75,360

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The following table reflects the cost and fair market values associated with the trust investments held in perpetual care trust funds at March 31, 2021 (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	528	$	—	$	—	$	528
Fixed income securities:
Foreign debt	2	12,642		1,775		(508)		13,909
Corporate debt	2	11,525		1,540		(69)		12,996
Preferred stock	2	10,518		558		(299)		10,777
Common stock	1	25,151		6,436		(2,945)		28,642
Mutual funds:
Equity	1	20		1				21
Fixed Income	2	6,739		1,374		(164)		7,949
Trust securities		$	67,123	$	11,684	$	(3,985)	$	74,822
Accrued investment income		$	993					$	993
Cemetery perpetual care investments								$	75,815
Market value as a percentage of cost								111.5		%

The estimated maturities of the fixed income securities (excluding mutual funds) included above are as follows (in thousands):

Due in one year or less	$	—
Due in one to five years	10,149
Due in five to ten years	7,216
Thereafter	20,317
Total fixed income securities	$	37,682

The following table reflects the cost and fair market values associated with the trust investments held in perpetual care trust funds at December 31, 2020 (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	686	$	—	$	—	$	686
Fixed income securities:
Foreign debt	2	12,539		1,641		(582)		13,598
Corporate debt	2	11,684		1,506		(240)		12,950
Preferred stock	2	10,444		819		(355)		10,908
Mortgage-backed securities	2	206		—		(121)		85
Common stock	1	23,662		6,108		(5,255)		24,515
Mutual funds:
Fixed income	2	6,444		1,054		(220)		7,278
Trust securities		$	65,665	$	11,128	$	(6,773)	$	70,020
Accrued investment income		$	808					$	808
Cemetery perpetual care investments								$	70,828
Market value as a percentage of cost								106.6		%

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The following table summarized our fixed income securities (excluding mutual funds) within our perpetual care trust investment in an unrealized loss position at March 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	March 31, 2021
	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	$	1,800	$	(79)	$	430	$	(429)	$	2,230	$	(508)
Corporate debt	559		(7)		519		(62)		1,078		(69)
Preferred stock	2,973		(246)		1,318		(53)		4,291		(299)
Total fixed income securities with an unrealized loss	$	5,332	$	(332)	$	2,267	$	(544)	$	7,599	$	(876)

The following table summarized our fixed income securities (excluding mutual funds) within our perpetual care trust investment in an unrealized loss position at December 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	December 31, 2020
	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	$	1,728	$	(43)	$	312	$	(539)	$	2,040	$	(582)
Corporate debt	592		(74)		410		(166)		1,002		(240)
Preferred stock	1,142		(191)		3,060		(164)		4,202		(355)
Mortgage-backed securities	—		—		85		(121)		85		(121)
Total fixed income securities with an unrealized loss	$	3,462	$	(308)	$	3,867	$	(990)	$	7,329	$	(1,298)

Perpetual care trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Realized gains	$	709	$	691
Realized losses	(679)		(420)
Unrealized gains (losses), net	(13,525)		7,699
Net change in Care trusts’ corpus	13,495		(7,970)
Total	$	—	$	—

Perpetual care trust investment security transactions recorded in Other revenue on our Consolidated Statements of Operations are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Investment income	$	1,405	$	2,513
Realized losses, net	(36)		(138)
Total	$	1,369	$	2,375

Purchases and sales of investments in the perpetual care trusts are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Purchases	$	(14,612)	$	(6,137)
Sales	12,694		5,956

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7.RECEIVABLES FROM PRENEED TRUSTS

Our receivables from preneed trusts represent assets in trusts which are controlled and operated by third parties in which we do not have a controlling financial interest (less than 50%) in the trust assets. We account for these investments at cost. Receivables from preneed trusts are as follows (in thousands): 

	December 31, 2020		March 31, 2021
Preneed trust funds, at cost	$	17,365	$	17,502
Less: allowance for contract cancellation	(521)		(526)
Receivables from preneed trusts, net	$	16,844	$	16,976

The following summary reflects the composition of the assets held in trust and controlled by third parties to satisfy our future obligations under preneed arrangements related to the preceding contracts at December 31, 2020 and March 31, 2021. The cost basis includes reinvested interest and dividends that have been earned on the trust assets. Fair value includes unrealized gains and losses on trust assets.

The composition of the preneed trust funds at March 31, 2021 is as follows (in thousands):

	Historical Cost Basis		Fair Value
Cash and cash equivalents	$	4,697	$	4,697
Fixed income investments	10,473		10,473
Mutual funds and common stocks	2,327		2,406
Annuities	5		5
Total	$	17,502	$	17,581

The composition of the preneed trust funds at December 31, 2020 is as follows (in thousands):

	Historical Cost Basis		Fair Value
Cash and cash equivalents	$	4,604	$	4,604
Fixed income investments	10,355		10,355
Mutual funds and common stocks	2,402		2,569
Annuities	4		4
Total	$	17,365	$	17,532

8.FAIR VALUE MEASUREMENTS

We evaluated our financial assets and liabilities for those financial assets and liabilities that met the criteria of the disclosure requirements and fair value framework. The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate the fair values of those instruments due to the short-term nature of the instruments. The fair values of our receivables on preneed cemetery contracts are impracticable to estimate because of the lack of a trading market and the diverse number of individual contracts with varying terms. Our acquisition debt and Credit Facility (as defined in Note 10) and Senior Notes (as defined in Note 12) are classified within Level 2 of the Fair Value Measurements hierarchy.

At March 31, 2021, the carrying value and fair value of our Credit Facility was $28.3 million. We believe that our Credit Facility bears interest at a rate that approximates prevailing market rates for instruments with similar characteristics and therefore, the carrying value of our Credit Facility approximates fair value. We estimate the fair value of our acquisition debt utilizing an income approach, which uses a present value calculation to discount payments based on current market rates as of the reporting date. At March 31, 2021, the carrying value of our acquisition debt was $5.4 million, which approximated its fair value. The fair value of our Senior Notes was approximately $417.6 million at March 31, 2021 based on the last traded or broker quoted price.

At December 31, 2020 and March 31, 2021, we did not have any assets that had fair values determined by Level 3 inputs and no liabilities measured at fair value.

We identified investments in fixed income securities, common stock and mutual funds presented within the preneed and perpetual care trust investments categories on our Consolidated Balance Sheet as having met the criteria for fair value measurement. Our receivables from preneed trusts represent assets in trusts which are controlled and operated by third parties in which we do not have a controlling financial interest (less than 50%) in the trust assets. We account for these investments at cost.

- 28 -

See Notes 6 and 7 to our Consolidated Financial Statements herein for the fair value hierarchy levels of our trust investments.

9.INTANGIBLE AND OTHER NON-CURRENT ASSETS

Intangible and other non-current assets are as follows (in thousands):

	December 31, 2020		March 31, 2021
Tradenames	$	23,565	$	23,565
Prepaid agreements not-to-compete, net of accumulated amortization of $3,193 and $3,361, respectively	2,785		2,676
Capitalized commissions on preneed contracts, net of accumulated amortization of $1,594 and $1,746, respectively	3,141		3,240
Other	51		21
Intangible and other non-current assets, net	$	29,542	$	29,502

Tradenames

Our tradenames have indefinite lives and therefore are not amortized.

Prepaid Agreements

Prepaid agreements not-to-compete are amortized over the term of the respective agreements, ranging generally from one to ten years. Amortization expense was $187,000 and $168,000 for the three months ended March 31, 2020 and 2021, respectively.

Capitalized Commissions

We capitalize our selling costs related to preneed cemetery merchandise and services and preneed funeral trust contracts. These costs are amortized on a straight-line basis over the average maturity period for our preneed cemetery merchandise and services contracts and preneed funeral trust contracts, of eight and ten years, respectively. Amortization expense related to capitalized commissions totaled $141,000 and $152,000 for the three months ended March 31, 2020 and 2021, respectively.

The aggregate amortization expense for our non-compete agreements and capitalized commissions as of March 31, 2021 is as follows (in thousands):

	Non-Compete Agreements		Capitalized Commissions
Years ending December 31,
Remainder of 2021	$	459	$	437
2022	519		543
2023	446		488
2024	380		425
2025	373		359
Thereafter	499		988
Total amortization expense	$	2,676	$	3,240

10.CREDIT FACILITY AND ACQUISITION DEBT

At March 31, 2021, our $190.0 million senior secured revolving credit facility (the “Credit Facility”) was comprised of: (i) a $190.0 million revolving credit facility, including a $15.0 million subfacility for letters of credit and a $10.0 million swingline, and (ii) an accordion or incremental option allowing for future increases in the facility size by an additional amount of up to $75.0 million in the form of increased revolving commitments or incremental term loans. The final maturity of the Credit Facility will occur on May 31, 2023.

The Credit Facility is secured by a first-priority perfected security interest in and lien on substantially all of the Company’s personal property assets and those of the Credit Facility Guarantors. In the event the Company’s actual Total Leverage Ratio is not at least 0.25 less than the required Total Leverage Ratio covenant level, at the discretion of the Administrative Agent, the Administrative Agent may unilaterally compel the Company and the Credit Facility Guarantors to grant and perfect first-priority mortgage liens on fee-owned real property assets which account for no less than 50% of funeral operations EBITDA.

- 29 -

The Credit Facility contains customary affirmative covenants, including, but not limited to, covenants with respect to the use of proceeds, payment of taxes and other obligations, continuation of the Company’s business and the maintenance of existing rights and privileges, the maintenance of property and insurance, amongst others.

In addition, the Credit Facility also contains customary negative covenants, including, but not limited to, covenants that restrict (subject to certain exceptions) the ability of the Company and its subsidiaries party thereto as guarantors (the “Credit Facility Guarantors”) to incur additional indebtedness, grant liens on assets, make investments, engage in mergers and acquisitions, and pay dividends and other restricted payments, and certain financial covenants. As of March 31, 2021, we were subject to the following financial covenants under our Credit Facility: (A) a Total Leverage Ratio not to exceed 5.50 to 1.00, (B) a Senior Secured Leverage Ratio (as defined in the Credit Facility) not to exceed 2.00 to 1.00 as of the end of any period of four consecutive fiscal quarters, and (C) a Fixed Charge Coverage Ratio (as defined in the Credit Facility) of not less than 1.20 to 1.00 as of the end of any period of four consecutive fiscal quarters. These financial maintenance covenants are calculated for the Company and its subsidiaries on a consolidated basis.

We were in compliance with the total leverage ratio, fixed charge coverage ratio and senior secured leverage ratio covenants contained in our Credit Facility as of March 31, 2021.

Our Credit Facility and Acquisition debt consisted of the following (in thousands):

	December 31, 2020		March 31, 2021
Credit Facility	$	47,200	$	28,300
Debt issuance costs, net of accumulated amortization of $819 and $937, respectively	(1,136)		(1,018)
Total Credit Facility	$	46,064	$	27,282
Acquisition debt	$	5,509	$	5,355
Less: current portion	(1,027)		(913)
Total acquisition debt, net of current portion	$	4,482	$	4,442

At March 31, 2021, we had outstanding borrowings under the Credit Facility of $28.3 million. We also had one letter of credit for $2.1 million outstanding under the Credit Facility, which bears interest at 3.125% and will expire on November 25, 2021. The letter of credit will automatically renew annually and secures our obligations under our various self-insured policies. At March 31, 2021, we had $159.6 million of availability under the Credit Facility after giving effect to the $2.1 million of the outstanding letter of credit.

Outstanding borrowings under our Credit Facility bear interest at either a prime rate or a LIBOR rate, plus an applicable margin based upon our leverage ratio. At March 31, 2021, the prime rate margin was equivalent to 1.5% and the LIBOR rate margin was 2.5%. The weighted average interest rate on our Credit Facility was 4.3% and 3.3% for the three months ended March 31, 2020 and 2021, respectively.

The interest expense and amortization of debt issuance costs related to our Credit Facility are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Credit Facility interest expense	$	1,230	$	445
Credit Facility amortization of debt issuance costs	126		118

See Note 18 to the Consolidated Financial Statements herein for additional information related to our Credit Facility.

Acquisition debt consists of deferred purchase price and promissory notes payable to sellers. A majority of the deferred purchase price and notes bear no interest and are discounted at imputed interest rates ranging from 7.3% to 10.0%. Original maturities range from five to twenty years.

The imputed interest expense related to our acquisition debt is as follows (in thousands):

	Three months ended March 31,
	2020		2021
Acquisition debt imputed interest expense	$	127	$	97

- 30 -

11.CONVERTIBLE SUBORDINATED NOTES

During the three months ended March 31, 2021, we converted approximately $2.4 million in aggregate principal amount of our 2.75% convertible subordinated notes due 2021 (the “Convertible Notes”) held by certain holders for approximately $3.8 million in cash and recorded $1.4 million for the reacquisition of the equity component. The Convertible Notes matured on March 15, 2021, at which time all Convertible Notes outstanding, approximately $0.2 million in aggregate principal amount, were paid in full in cash at par value. Therefore, no Convertible Notes remain outstanding at March 31, 2021.

The carrying values of the liability and equity components of our Convertible Notes are reflected on our Consolidated Balance Sheet as follows (in thousands):

	December 31, 2020		March 31, 2021
Current liabilities:
Principal amount	$	2,559	$	—
Unamortized discount of liability component	(20)		—
Convertible Notes issuance costs, net of accumulated amortization of $63 and $64, respectively	(1)		—
Carrying value of the liability component	$	2,538	$	—
Carrying value of the equity component	$	319	$	—

The carrying value of the liability component and the carrying value of the equity component are recorded in Convertible subordinated notes due 2021 and Additional paid-in capital, respectively, on our Consolidated Balance Sheet at December 31, 2020.

The interest expense and accretion of debt discount and debt issuance costs related to our Convertible Notes are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Convertible Notes interest expense	$	43	$	18
Convertible Notes accretion of debt discount	65		20
Convertible Notes amortization of debt issuance costs	6		1

The effective interest rate on the unamortized debt discount for both the three months ended March 31, 2020 and 2021 was 11.4%. The effective interest rate on the debt issuance costs for the three months ended March 31, 2020 and 2021 was 3.2% and 3.1%, respectively.

12.SENIOR NOTES

The carrying value of our 6.625% senior notes due 2026 (the “Senior Notes”) is reflected on our Consolidated Balance Sheet as follows (in thousands):

	December 31, 2020		March 31, 2021
Long-term liabilities:
Principal amount	$	400,000	$	400,000
Debt premium, net of accumulated amortization of $221 and $279, respectively	1,467		1,409
Debt discount, net of accumulated amortization of $1,293 and $1,431, respectively	(3,582)		(3,444)
Debt issuance costs, net of accumulated amortization of $496 and $570, respectively	(1,917)		(1,843)
Carrying value of the Senior Notes	$	395,968	$	396,122

At March 31, 2021, the fair value of the Senior Notes, which are Level 2 measurements, was $417.6 million.

The Senior Notes were issued under an indenture, dated as of May 31, 2018 (the “Indenture”), among us, certain of our existing subsidiaries (collectively, the “Subsidiary Guarantors”), as guarantors, and Wilmington Trust, National Association., as trustee. The Senior Notes are unsecured, senior obligations and are fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally, by each of the Subsidiary Guarantors. The Senior Notes are due on June 1, 2026 unless earlier redeemed or repurchased and bear interest at 6.625% per year, which is payable semi-annually in arrears on June 1 and December 1 of each year.

- 31 -

We may redeem all or part of the Senior Notes at any time prior to June 1, 2021 at a redemption price equal to 100% of the principal amount of Senior Notes redeemed, plus a “make whole” premium, and accrued and unpaid interest, if any, to the date of redemption. We have the right to redeem the Senior Notes at any time on or after June 1, 2021 at the redemption prices described in the Indenture, plus accrued and unpaid interest, if any, to the date of redemption. Additionally, at any time before June 1, 2021, we may redeem up to 40% of the aggregate principal amount of the Senior Notes issued with an amount equal to the net proceeds of certain equity offerings, at a price equal to 106.625% of the principal amount of the Senior Notes, plus accrued and unpaid interest, if any, to the date of redemption; provided that (1) at least 60% of the aggregate principal amount of the Senior Notes (including any additional Senior Notes) originally issued under the Indenture remain outstanding immediately after the occurrence of such redemption (excluding Senior Notes held by us); and (2) each such redemption must occur within 180 days of the date of the closing of each such equity offering.

If a “change of control” occurs, holders of the Senior Notes will have the option to require us to purchase for cash all or a portion of their Senior Notes at a price equal to 101% of the principal amount of the Senior Notes, plus accrued and unpaid interest. In addition, if we make certain asset sales and do not reinvest the proceeds thereof or use such proceeds to repay certain debt, we will be required to use the proceeds of such asset sales to make an offer to purchase the Senior Notes at a price equal to 100% of the principal amount of the Senior Notes, plus accrued and unpaid interest.

The Indenture contains restrictive covenants limiting our ability and our Restricted Subsidiaries (as defined in the Indenture) to, among other things, incur additional indebtedness or issue certain preferred shares, create liens on certain assets to secure debt, pay dividends or make other equity distributions, purchase or redeem capital stock, make certain investments, sell assets, agree to certain restrictions on the ability of Restricted Subsidiaries to make payments to us, consolidate, merge, sell or otherwise dispose of all or substantially all assets, or engage in transactions with affiliates. The Indenture also contains customary events of default.

The interest expense and amortization of debt discount, debt premium and debt issuance costs related to our Senior Notes are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Senior Notes interest expense	$	6,625	$	6,625
Senior Notes amortization of debt discount	129		138
Senior Notes amortization of debt premium	54		58
Senior Notes amortization of debt issuance costs	67		74

The debt discount, the debt premium and the debt issuance costs are being amortized using the effective interest method over the remaining term of approximately 62 months of the Senior Notes. The effective interest rate on the unamortized debt discount and the unamortized debt issuance costs for the Senior Notes, issued in May 2018, for both three months ended March 31, 2020 and 2021 was 6.87% and 6.69%, respectively. The effective interest rate on the unamortized debt premium and the unamortized debt issuance costs for the Senior Notes, issued in December 2019, for both three months ended March 31, 2020 and 2021 was 6.20% and 6.88%, respectively.

On April 30, 2021, we delivered a notice of conditional redemption to the trustee for the Senior Notes to call for redemption on June 1, 2021, all of the outstanding aggregate principal amount of the Senior Notes at a redemption price of 104.969% of the principal amount thereof, plus accrued and unpaid interest up to, but excluding, the scheduled redemption date. See Note 18 to the Consolidated Financial Statements herein for additional information regarding the notice of conditional redemption for our Senior Notes.

- 32 -

13.LEASES

Our lease obligations consist of operating and finance leases related to real estate and equipment. The components of lease cost are as follows (in thousands):

		Three months ended March 31,
	Income Statement Classification	2020		2021
Operating lease cost	Facilities and grounds expense(1)	$	957	$	960
Short-term lease cost	Facilities and grounds expense(1)	32		49
Variable lease cost	Facilities and grounds expense(1)	25		41
Finance lease cost:
Depreciation of leased assets	Depreciation and amortization(2)	$	109	$	108
Interest on lease liabilities	Interest expense	126		120
Total finance lease cost		235		228
Total lease cost		$	1,249	$	1,278

(1)	Facilities and grounds expense is included within Cost of service and General, administrative and other on our Consolidated Statements of Operations.
(2)	Depreciation and amortization expense is included within Field depreciation and Home office depreciation and amortization on our Consolidated Statements of Operations.

Supplemental cash flow information related to our leases is as follows (in thousands):

	Three months ended March 31,
	2020		2021
Cash paid for operating leases included in operating activities	$	696	$	965
Cash paid for finance leases included in financing activities	200		209

Right-of-use assets obtained in exchange for new leases is as follows (in thousands):

	Three months ended March 31,
	2020		2021
Right-of-use assets obtained in exchange for new operating lease liabilities	$	77	$	56
Right-of-use assets obtained in exchange for new finance lease liabilities	—		—

Supplemental balance sheet information related to leases is as follows (in thousands):

Lease Type	Balance Sheet Classification	December 31, 2020		March 31, 2021
Operating lease right-of-use assets	Operating lease right-of-use assets	$	21,201	$	20,747
Finance lease right-of-use assets	Property, plant and equipment, net	$	6,770	$	6,770
Accumulated depreciation	Property, plant and equipment, net	(2,005)		(2,113)
Finance lease right-of-use assets, net		$	4,765	$	4,657
Operating lease current liabilities	Current portion of operating lease obligations	$	2,082	$	2,057
Finance lease current liabilities	Current portion of finance lease obligations	323		331
Total current lease liabilities		$	2,405	$	2,388
Operating lease non-current liabilities	Obligations under operating leases, net of current portion	$	20,302	$	19,876
Finance lease non-current liabilities	Obligations under finance leases, net of current portion	5,531		5,445
Total non-current lease liabilities		$	25,833	$	25,321
Total lease liabilities		$	28,238	$	27,709

The average lease terms and discount rates at March 31, 2021 are as follows:

	Weighted-average remaining lease term (years)	Weighted-average discount rate
Operating leases	10.7	8.1	%
Finance leases	5.6	8.2	%

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The aggregate future lease payments for operating and finance leases as of March 31, 2021 are as follows (in thousands):

	Operating		Finance
Lease payments due:
Remainder of 2021	$	2,854	$	627
2022	3,439		860
2023	3,318		860
2024	3,301		791
2025	3,161		736
Thereafter	16,188		5,555
Total lease payments	32,261		9,429
Less: Interest	(10,328)		(3,653)
Present value of lease liabilities	$	21,933	$	5,776

At March 31, 2021, we had no additional significant operating or finance leases that had not yet commenced.

14.STOCKHOLDERS’ EQUITY

Restricted Stock

During the three months ended March 31, 2021, we issued restricted stock to certain employees totaling 9,300 shares that vest over a three-year period and had an aggregate grant date market value of $324,000 at a weighted average stock price of $34.79. During the three months ended March 31, 2020, we issued restricted stock to certain employees totaling 10,200 shares that vest over a three-year period and had an aggregate grant date market value of $255,000 at a weighted average stock price of $25.00.

We recorded stock-based compensation expense, which is included in General, administrative and other expenses, for restricted stock awards of $184,000 and $121,000, for the three months ended March 31, 2020 and 2021, respectively.

Stock Options

During the three months ended March 31, 2021, we granted 701,400 options to certain key employee at a weighted average price of $34.79. These options will vest in one-fifth increments over a five-year period and have a ten-year term. The fair value of these options was $7.1 million. During the three months ended March 31, 2020, we did not issue any stock options.

The fair value of the options granted were estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

Grant date	February 17, 2021
Dividend yield	1.15	%
Expected volatility	36.72	%
Risk-free interest rate	0.57	%
Expected holding period (years)	5.0
Black-Scholes value	$10.14

During the three months ended March 31, 2021, employees exercised 101,000 stock options at a weighted average exercise price of $24.18 with an aggregate intrinsic value of $1.3 million. We received $147,000 in cash for payment of the option price and we withheld $295,000 for payment of payroll taxes. In addition, we accelerated 12,980 options in connection with the resignation of an employee which resulted in an additional $129,000 of stock-based compensation expense.

During the three months ended March 31, 2021, we also granted an additional 150,000 options to a certain key employee at a weighted average price of $34.79. These options will vest when the price of our common stock closes at or above the specified prices below for three consecutive days within the ten-year term and the employee has remained continuously employed by us through such date. The fair value of these options was $1.7 million.

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The fair value of the options granted were estimated on the date of grant using the Monte-Carlo simulation pricing model using the following assumptions:

Grant date	February 17, 2021		February 17, 2021
Awards granted	50,000		100,000
Fair value (in millions)	$0.5		$1.2
Vesting share price	$53.39		$77.34
Dividend yield	1.15	%	1.15	%
Expected volatility	34.08	%	34.08	%
Risk-free interest rate	1.29	%	1.29	%

We recorded stock-based compensation expense, which is included in General, administrative and other expenses, for stock options, including the accelerated stock options discussed above of $215,000 and $560,000, for the three months ended March 31, 2020 and 2021, respectively.

Performance Awards

During the three months ended March 31, 2021, we did not issue any performance awards and we cancelled 27,948 performance awards in connection with the resignation of two employees.

During the three months ended March 31, 2020, we issued 237,500 performance awards to certain employees, payable in shares, with a fair value of $2.8 million. On May 19, 2020, we cancelled all performance award agreements previously awarded to all individuals during 2019 and the February 19, 2020 award. Concurrently with the cancellation, the Compensation Committee of the Board of Directors (the “Board”) approved 368,921 new performance awards to be issued to certain employees. These new performance awards were treated as a modification of the cancelled awards and resulted in an additional $1.7 million of incremental compensation costs.

We recorded stock-based compensation expense, which is included in General, administrative and other expenses, for performance awards of $121,000 and $237,000 for the three months ended March 31, 2020 and 2021, respectively.

Employee Stock Purchase Plan

During the three months ended March 31, 2021, employees purchased a total of 18,182 shares at a weighted average price of $26.32 per share. During the three months ended March 31, 2020, employees purchased a total of 26,294 shares at a weighted average price of $13.73 per share.

The fair value of the right (option) to purchase shares under the ESPP is estimated at the date of purchase with the four quarterly purchase dates using the following assumptions:

	2021
Dividend yield	0.01%
Expected volatility	48.14%
Risk-free interest rate	0.09%, 0.09%, 0.10%, 0.10%
Expected life (years)	0.25, 0.50, 0.75, 1.00

We recorded stock-based compensation expense, which is included in General, administrative and other expenses and Regional and unallocated funeral and cemetery costs, for the ESPP totaling $163,000 and $206,000 for the three months ended March 31, 2020 and 2021, respectively.

Non-Employee Director Compensation

During the three months ended March 31, 2021, we granted 5,040 shares of our common stock to six Directors, which were valued at $177,000 at a weighted average stock price of $35.19. During the three months ended March 31, 2020, we granted 8,821 shares of our common stock to five Directors, which were valued at $147,000 at a weighted average stock price of $16.15.

We recorded stock-based compensation expense, which is included in General, administrative and other expenses, related to annual retainers, including the value of stock granted to Directors above, of $201,000 and $231,000 for the three months ended March 31, 2020 and 2021, respectively.

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Share Repurchase

On July 31, 2019, our Board approved an additional $25.0 million under our share repurchase program in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended. During the three months ended March 31, 2021, we did not repurchase any shares of our common stock. At March 31, 2021, we had approximately $25.6 million available for repurchases under our share repurchase program.

Cash Dividends

Our Board declared the following dividends payable on the dates below (in thousands, except per share amounts):

2021	Per Share		Dollar Value
March 1st	$	0.100	$	1,799
2020	Per Share		Dollar Value
March 1st	$	0.075	$	1,339

15.EARNINGS PER SHARE

The following table sets forth the computation of the basic and diluted earnings per share (in thousands, except per share data):

	Three months ended March 31,
	2020		2021
Numerator for basic and diluted earnings per share:
Net income (loss)	$	(4,197)	$	12,933
Less: Loss (earnings) allocated to unvested restricted stock	13		(27)
Income (loss) attributable to common stockholders	$	(4,184)	$	12,906
Denominator:
Denominator for basic earnings per common share - weighted average shares outstanding	17,805		17,965
Effect of dilutive securities:
Stock options	—		234
Denominator for diluted earnings per common share - weighted average shares outstanding	17,805		18,199
Basic earnings (loss) per common share:	$	(0.23)	$	0.72
Diluted earnings (loss) per common share:	$	(0.23)	$	0.71

For the three months ended March 31, 2020 there were 1,034,084 stock options excluded from the computation of diluted earnings per share because the inclusion of such stock options would result in an antidilutive effect and 27,085 shares were excluded from the computation of diluted earnings per share amounts because the loss attributable to common stockholders was a loss, not income. For the three months ended March 31, 2021, no stock options were excluded from the computation of diluted earnings per share.

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16.SEGMENT REPORTING

Revenue, disaggregated by major source for each of our reportable segments was as follows (in thousands):

Three months ended March 31, 2021
	Funeral		Cemetery		Total
Services	$	43,522	$	4,235	$	47,757
Merchandise	24,461		3,424		27,885
Cemetery property	—		14,011		14,011
Other revenue	3,791		3,193		6,984
Total	$	71,774	$	24,863	$	96,637

Three months ended March 31, 2020
	Funeral		Cemetery		Total
Services	$	37,559	$	3,173	$	40,732
Merchandise	20,700		2,286		22,986
Cemetery property	—		8,285		8,285
Other revenue	3,483		2,004		5,487
Total	$	61,742	$	15,748	$	77,490

The following table presents operating income (loss), income (loss) before income taxes and total assets (in thousands): 

	Funeral		Cemetery		Corporate		Consolidated
Operating income (loss):
Three months ended March 31, 2021	$	25,876	$	9,493	$	(9,123)	$	26,246
Three months ended March 31, 2020	4,311		4,167		(6,328)		2,150
Income (loss) before income taxes:
Three months ended March 31, 2021	$	25,718	$	9,476	$	(16,620)	$	18,574
Three months ended March 31, 2020	4,119		4,105		(14,571)		(6,347)
Total assets:
March 31, 2021	$	763,761	$	378,945	$	15,020	$	1,157,726
December 31, 2020	764,535		366,964		14,326		1,145,825

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17.SUPPLEMENTARY DATA

Balance Sheet

The following table presents the detail of certain balance sheet accounts (in thousands):

	December 31, 2020		March 31, 2021
Prepaid and other current assets:
Prepaid expenses	$	1,919	$	1,913
Other current assets	157		163
Total prepaid and other current assets	$	2,076	$	2,076
Current portion of debt and lease obligations:
Current portion of acquisition debt	$	1,027	$	913
Current portion of finance lease obligations	323		331
Current portion of operating lease obligations	2,082		2,057
Total current portion of debt and lease obligations	$	3,432	$	3,301
Accrued and other liabilities:
Accrued salaries and wages	$	1,392	$	3,307
Accrued incentive compensation	11,139		5,964
Accrued vacation	3,271		3,440
Accrued insurance	3,016		3,507
Accrued interest	2,291		8,888
Accrued ad valorem and franchise taxes	435		1,059
Employer payroll tax deferral	1,773		1,773
Accrued commissions	634		912
Perpetual care trust payable	908		1,097
Income tax payable	798		4,392
Other accrued liabilities	1,825		1,604
Unrecognized tax benefit	3,656		3,656
Total accrued and other liabilities	$	31,138	$	39,599
Other long-term liabilities:
Incentive compensation	$	2,975	$	351
Employer payroll tax deferral	1,773		1,773
Accrued severance	—		553
Total other long-term liabilities	$	4,748	$	2,677

Cash Flow

The following information is supplemental disclosure for the Consolidated Statements of Cash Flows (in thousands):

	Three months ended March 31,
	2020		2021
Cash paid for interest and financing costs	$	1,337	$	616
Cash paid for taxes	96		532
Fair value of donated real property	—		635

18.SUBSEQUENT EVENTS

New Notes Purchase Agreement

On April 29, 2021, we and certain of our existing subsidiaries (the “Subsidiary Guarantors”) entered into a Purchase Agreement with BofA Securities, Inc., as representative of the several initial purchasers named therein (collectively, the “Purchasers”), under which we agreed to sell $400 million in aggregate principal amount of 4.25% Senior Notes due 2029 (the “New Notes”) in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A and to certain non-U.S. persons outside of the United States pursuant to Regulation S, each under the Securities Act of 1933, as amended. The New Notes will be issued pursuant to an indenture to be entered into among the Company, the Subsidiary Guarantors and Wilmington Trust, National Association, as trustee.

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The sale of the New Notes to the Purchasers is expected to settle on May 13, 2021, subject to customary closing conditions, and is expected to result in approximately $394 million in net proceeds to us after deducting the Purchasers’ discount and estimated offering expenses payable by us.

We intend to use the net proceeds of the sale of the New Notes, together with borrowings under the amended and restated credit facility, which we expect to enter into concurrently with the settlement of the sale of the New Notes, to redeem all of our existing Senior Notes.

The New Notes will be our unsecured senior obligations and will bear interest at a rate of 4.25% per year. Interest will be payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2021. The New Notes will mature on May 15, 2029, unless earlier repurchased or redeemed.

The New Notes will be guaranteed on a senior unsecured basis by the Subsidiary Guarantors.

Notice of Conditional Redemption

On April 30, 2021, we delivered a notice of conditional redemption to the trustee for the Senior Notes to call for redemption on June 1, 2021, all of the outstanding aggregate principal amount of the Senior Notes at a redemption price of 104.969% of the principal amount thereof, plus accrued and unpaid interest up to, but excluding, the scheduled redemption date. Our redemption obligation is conditioned on and subject to the completion of the offering of New Notes and the entry into an amended and restated credit facility in connection with the closing of the offering.

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CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

In addition to historical information, this Quarterly Report on Form 10-Q contains certain statements and information that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical information, should be deemed to be forward-looking statements. The words “may”, “will”, “estimate”, “intend”, “believe”, “expect”, “seek”, “project”, “forecast”, “foresee”, “should”, “would”, “could”, “plan”, “anticipate” and other similar words or expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements include, but are not limited to, statements regarding any projections of earnings, revenue, asset sales, cash flow, debt levels or other financial items; any statements of the plans, strategies and objectives of management for future operations or future acquisitions; any statements of the plans, timing and objectives of management for acquisition and divestiture activities; any statements of the plans, timing, expectations and objectives of management for future financing activities; any statements regarding future economic and market conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing and are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future revenue and operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those summarized below:

•our ability to find and retain skilled personnel;

•the effects of our incentive and compensation plans and programs, including such effects on our Standards Operating Model and our operational and financial performance;

•our ability to execute our growth strategy;

•the execution of our Standards Operating, 4E Leadership and Strategic Acquisition Models;

•the effects of competition;

•changes in the number of deaths in our markets;

•changes in consumer preferences and our ability to adapt to or meet those changes;

•our ability to generate preneed sales, including implementing our cemetery portfolio sales strategy;

•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;

•our ability to meet the timing, objectives and cost saving expectations related to anticipated financing activities, including our deleveraging program, forecasts and planned uses of free cash flow, expected plans and projections for refinancing our senior notes and future capital allocation, including potential acquisitions, share repurchases, dividend increases, or debt repayment plans;

•our ability to meet the projected financial performance metrics included in our updated Milestone Two-Year Scenario, if at all;

•the timely and full payment of 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;

•our level of indebtedness and the cash required to service our indebtedness;

•changes in federal income tax laws and regulations and the implementation and interpretation of these laws and regulations by the Internal Revenue Service;

•effects of the application of other applicable laws and regulations, including changes in such regulations or the interpretation thereof;

•the potential impact of epidemics and pandemics, including the COVID-19 coronavirus (“COVID-19”), on customer preferences and on our business;

•effects of litigation;

•consolidation of the funeral and cemetery industry;

•our ability to consummate the divestiture of low performing businesses as currently expected, if at all, including expected use of proceeds related thereto;

•our ability to integrate acquired businesses with our existing businesses, including expected performance and financial improvements related thereto;

•economic, financial and stock market fluctuations;

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•interruptions or security lapses of our information technology, including any cybersecurity or ransomware incidents;

•our failure to maintain effective control over financial reporting; and

•other factors and uncertainties inherent in the funeral and cemetery industry.

For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see (i) Part II, Item 1A “Risk Factors” in this Quarterly Report on Form 10-Q and (ii) Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020.

Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations.

OVERVIEW

General

Carriage Services, Inc. (“Carriage,” the “Company,” “we,” “us,” or “our”) was incorporated in the State of Delaware in December 1993 and is a leading U.S. provider of funeral and cemetery services and merchandise. We operate in two business segments: Funeral Home Operations, which currently account for approximately 75% of our revenue, and Cemetery Operations, which currently account for approximately 25% of our revenue.

At March 31, 2021, we operated 173 funeral homes in 26 states and 32 cemeteries in 12 states. We compete with other publicly held and independent operators of funeral and cemetery companies. We believe we are a market leader in most of our markets.

Funeral home and cemetery businesses provide products and services to families in three principal areas: (i) ceremony and tribute, generally in the form of a funeral or memorial service; (ii) disposition of remains, either through burial or cremation; and (iii) memorialization, generally through monuments, markers or inscriptions. Our funeral homes offer a complete range of services to meet a family’s funeral needs, including consultation, the removal and preparation of remains, the sale of caskets and related funeral merchandise, the use of funeral home facilities for visitation and memorial services and transportation services. Most of our funeral homes have a non-denominational chapel on the premises, which permits family visitation and services to take place at one location and thereby reduces transportation costs and inconvenience to the family.

Our cemeteries provide interment rights (primarily grave sites, lawn crypts, mausoleum spaces and niches), related cemetery merchandise (such as outer burial containers, memorial markers and floral placements) and services (interments, inurnments and installation of cemetery merchandise).

We provide funeral and cemetery services and products on both an “atneed” (time of death) and “preneed” (planned prior to death) basis.

Recent Developments

Divestitures

During the three months ended March 31, 2021, we divested two funeral homes for a total of $2.8 million, at a gain of $0.3 million.

Convertible Notes Conversions and Maturity

During the three months ended March 31, 2021, we converted approximately $2.4 million in aggregate principal amount of our 2.75% convertible subordinated notes due 2021 (the “Convertible Notes”) held by certain holders for approximately $3.8 million in cash. The Convertible Notes matured on March 15, 2021, at which time all Convertible Notes outstanding, approximately $0.2 million in aggregate principal amount, were paid in full in cash at par value. Therefore, no Convertible Notes remain outstanding at March 31, 2021.

Business Impact under the Macroeconomic Environment of COVID-19

On March 11, 2020, COVID-19 was deemed a global pandemic and since then, the Company has continued to proactively monitor and assess the pandemic’s current and potential impact to the Company’s operations. Beginning in early March 2020, the Company’s senior leadership team took certain steps to assist our businesses in appropriately adjusting and adapting to the conditions resulting from the COVID-19 pandemic. Our businesses have been designated as essential services and, therefore, each one of the Company’s business locations remains open and ready to provide service to their communities in this time of need. While our businesses provide an essential public function, along with a critical responsibility to the communities and families they serve, the health and safety of our employees and the families we serve remain our top priority. The Company has taken additional steps during this time to continually review and update our processes and procedures to comply with all regulatory mandates and procure additional supplies to ensure that each of our businesses have appropriate personal protective equipment to provide these essential services. Additionally, in many of our business locations, we have also updated staffing and service guidelines, such as reducing the number of team members present for a service, restricting the size and number of attendees and adjusting other operating procedures. The Company has also implemented additional safety and precautionary measures as it concerns our businesses’ day-to-day interaction with the families and communities they serve.

The overall impact of the macroeconomic environment to the deathcare industry from COVID-19 may provide varying results as compared to other industries. Our industry’s revenues are impacted by various factors, including the number of funeral services performed, the average price for a service and the mix of traditional burial versus cremation contracts. Changes

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in the macroeconomic environment as a result of the pandemic have, to this point, led to an increase in volume and may create situations where people choose to spend less on funerals by purchasing less expensive caskets, minimize the scale of services and visitations, or elect not to make a preneed funeral or cemetery arrangement. During this time, our businesses have been focused on being innovative and resourceful, providing some type of immediate service as part of the grieving process. Gathering restrictions across many areas of the country have, in some cases, limited our ability to provide large, in-person memorialization services and we have seen client families elect webcasting and livestreaming services, hold services with smaller attendance or rotating visitors, outdoor services, or in some cases, choose to delay services to a future date.

Within our financial reporting environment, we have considered various areas that could affect the results of our operations, though the scope, severity and duration of these impacts remain uncertain at this time because the COVID-19 pandemic is continually evolving and the ultimate impact of COVID-19 remains uncertain. Certain estimates inherently involve assumptions about future events and annual results, making reliable estimates for those matters challenging in periods of economic instability. We do not believe we are vulnerable to certain concentrations, whether by geographic area, revenue for specific products or our relationships with our vendors. Our relationships with our vendors and suppliers have remained consistent and we continue to receive reliable service. Remote working arrangements, when utilized, have not materially affected our ability to maintain and support operations, including financial reporting systems, internal controls over financial reporting, and disclosure controls and procedures.

We believe our access to capital, the cost of our capital, or the sources and uses of our cash should be relatively consistent in the near term, but given the unprecedented nature of COVID-19, we also believe, it is prudent for us to take a broad-based approach to ensuring we maintain financial flexibility throughout the expected duration of the pandemic. While the expected duration of the pandemic is unknown, we have not currently experienced any material negative impacts to our liquidity position, access to capital, or cash flows as a result of COVID-19. See Liquidity within Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, for additional information related to our liquidity position.

We have also applied certain measures of the CARES Act, which has provided a cash benefit in the form of tax payment refunds, tax credits related to employee retention, cash deferral for the employer portion of the Social Security tax and anticipated minimal cash taxes for 2020. Although we expect to take advantage of certain tax relief provisions of the CARES Act, we do not believe it will have a significant impact on our short-term or long-term liquidity position. See Item 1, Financial Statements and Supplementary Data, Note 1 for additional information related to the CARES Act.

The COVID-19 pandemic, and related gathering restrictions issued by state and local officials, did impact aspects of our financial results in the first quarter including revenue, volume, preneed cemetery sales, and average revenue per contract. We will continue to assess these impacts and implement appropriate procedures, plans, strategy, and issue any disclosures that may be required, as the situation surrounding the pandemic and related gathering restrictions evolves.

Funeral Home Operations

Our funeral homes offer a complete range of high value personal services to meet a family’s funeral needs, including consultation, the removal and preparation of remains, the sale of caskets and related funeral merchandise, the use of funeral home facilities for visitation and remembrance services and transportation services. Factors affecting our funeral operating results include, but are not limited to: demographic trends relating to population growth and average age, which impact death rates and number of deaths; establishing and maintaining leading market share positions supported by strong local heritage and relationships; effectively responding to increasing cremation trends by selling complementary services and merchandise; controlling salary and merchandise costs; and exercising pricing leverage to increase average revenue per contract.

Cemetery Operations

Our cemeteries provide interment rights (grave sites and mausoleum spaces) and related merchandise, such as markers and outer burial containers both on an atneed and preneed basis. Factors affecting our cemetery operating results include, but are not limited to: the size and success of our sales organization; local perceptions and heritage of our cemeteries; our ability to adapt to changes in the economy and consumer confidence; and our response to fluctuations in capital markets and interest rates, which affect investment earnings on trust funds, finance charges on installment contracts and our securities portfolio within the trust funds.

Business Strategy

Our business strategy is based on strong, local leadership with entrepreneurial principles that is focused on sustainable long term market share, revenue, and profitability growth in each local business. We believe Carriage has the most innovative operating model in the funeral and cemetery industry, which we are able to achieve through a decentralized, high-performance culture operating framework linked with incentive compensation programs that attract top-quality industry talent to our organization. We also believe that Carriage provides a unique consolidation and operating framework that offers a highly

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attractive succession planning solution for owners who want their legacy family business to remain operationally prosperous in their local communities.

Our Mission Statement states that “we are committed to being the most professional, ethical and highest quality funeral and cemetery service organization in our industry” and our Guiding Principles state our core values, which are comprised of:

•Honesty, integrity and quality in all that we do;

•Hard work, pride of accomplishment, and shared success through employee ownership;

•Belief in the power of people through individual initiative and teamwork;

•Outstanding service and profitability to hand-in-hand; and

•Growth of the company is driven by decentralization and partnership.

Our five Guiding Principles collectively embody our Being The Best high-performance culture and operating framework. Our operations and business strategy are built upon the execution of the following three models:

•Standards Operating Model;

•4E Leadership Model; and

•Strategic Acquisition Model.

Standards Operating Model

Our Standards Operating Model is focused on growing local market share, providing personalized high-value services to our client families and guests, and operating financial metrics that drive long-term, sustainable revenue growth and improved earning power of our portfolio of businesses by employing leadership and entrepreneurial principles that fit the nature of our high-value personal service business. Standards Achievement is the measure by which we judge the success of each business and incentivize our local managers and their teams. Our Standards Operating Model is not designed to produce maximum short-term earnings because we believe such performance is unsustainable and will ultimately stress the business, which very often leads to declining market share, revenue and earnings.

4E Leadership Model

Our 4E Leadership Model requires strong local leadership in each business to grow an entrepreneurial, decentralized, high-value, personal service and sales business at sustainable profit margins. Our 4E Leadership Model is based upon principles established by Jack Welch during his tenure at General Electric, and is based upon 4E qualities essential to succeed in a high performance culture: Energy to get the job done; the ability to Energize others; the Edge necessary to make difficult decisions; and the ability to Execute and produce results. To achieve a high level within our Standards in a business year after year, we require local Managing Partners that have the 4E Leadership skills to entrepreneurially grow the business by hiring, training and developing highly motivated and productive local teams.

Strategic Acquisition Model

Our Standards Operating Model led to the development of our Strategic Acquisition Model, which guides our acquisition strategy. We believe that both models, when executed effectively, will drive long-term, sustainable increases in market share, revenue, earnings and cash flow. We believe a primary driver of higher revenue and profits in the future will be the execution of our Strategic Acquisition Model using strategic ranking criteria to assess acquisition candidates. As we execute this strategy over time, we expect to acquire larger, higher margin strategic businesses.

We have learned that the long-term growth or decline of a local branded funeral and cemetery business is reflected by several criteria that correlate strongly with five to ten year performance in volumes (market share), revenue and sustainable field-level earnings before interest, taxes, depreciation and amortization (“EBITDA”) margins (a non-GAAP measure). We use criteria such as cultural alignment, volume and price trends, size of business, size of market, competitive standing, demographics, strength of brand and barriers to entry to evaluate the strategic position of potential acquisition candidates. Our financial valuation of the acquisition candidate is then determined through the application of an appropriate after-tax cash return on investment that exceeds our cost of capital.

Our belief in our Mission Statement and Guiding Principles and proper execution of the three models that define our strategy have given us a competitive advantage in every market where we compete. We believe that we can execute our three models without proportionate incremental investment in our consolidation platform infrastructure and without additional fixed regional and corporate overhead. This gives us a competitive advantage that is evidenced by the sustained earning power of our portfolio as defined by our EBITDA margin.

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LIQUIDITY AND CAPITAL RESOURCES

Overview

Our primary sources of liquidity and capital resources are internally generated cash flows from operating activities and availability under our Credit Facility.

We generate cash in our operations primarily from atneed sales and delivery of preneed sales. We also generate cash from earnings on our cemetery perpetual care trusts. Based on our recent operating results, current cash position and anticipated future cash flows, we do not anticipate any significant liquidity constraints in the foreseeable future. We have the ability to draw on our Credit Facility, subject to its customary terms and conditions. However, if our capital expenditures or acquisition plans change, we may need to access the capital markets to obtain additional funding. Further, to the extent operating cash flow or access to and cost of financing sources are materially different than expected, future liquidity may be adversely affected. For additional information regarding known material factors that could cause cash flow or access to and cost of finance sources to differ from our expectations, please read Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 and Part II, Item 1A “Risk Factors” in this Quarterly Report on Form 10-Q.

Our plan is to remain focused on integrating our newly acquired businesses and to use cash on hand and borrowings under our Credit Facility primarily for general corporate purposes, payment of dividends and debt obligations. However, if the conditions set forth in our conditional notice of redemption are satisfied and we are able to redeem our existing Senior Notes on June 1, 2021, then it may provide us the ability, from a capital allocation perspective, to potentially resume strategic acquisitions, internal growth capital expenditures, share repurchases, dividend increases and further debt repayments. See Item 1, Financial Statements and Supplementary Data, Note 18 for additional details regarding the notice of conditional redemption for our Senior Notes. We also expect continued divestiture activity for the next 6-9 months, which could yield approximately $3-5 million of cash from the proceeds of the sale. From time to time we may also use available cash resources (including borrowings under our Credit Facility) to repurchase shares of our common stock, subject to satisfying certain financial covenants in our Credit Facility. We believe that our existing and anticipated cash resources will be sufficient to meet our anticipated working capital requirements, capital expenditures, scheduled debt payments, commitments and dividends for the next 12 months.

Cash Flows

We began 2021 with $0.9 million in cash and ended the first quarter with $0.4 million in cash. At March 31, 2021, we had borrowings of $28.3 million outstanding on our Credit Facility compared to $47.2 million at December 31, 2020.

The following table sets forth the elements of cash flow (in thousands):

	Three months ended March 31,
	2020		2021
Cash at beginning of year	$	716	$	889
Net cash provided by operating activities	13,546		26,811
Acquisitions of businesses	(28,000)		—
Acquisitions of real estate	—		(350)
Proceeds from divestitures and sale of other assets	78		2,800
Capital expenditures	(2,738)		(4,347)
Net cash used in investing activities	(30,660)		(1,897)
Net borrowings (payments) on our Credit Facility, acquisition debt and finance lease obligations	29,713		(19,133)
Conversions and maturity of the Convertibles Notes	—		(3,980)
Payment of debt issuance and transaction costs	(14)		(7)
Net proceeds (payments) related to employee equity plans	127		(17)
Dividends paid on common stock	(1,339)		(1,799)
Other financing costs	(169)		(461)
Net cash provided by (used in) financing activities	28,318		(25,397)
Cash at end of the period	$	11,920	$	406

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Operating Activities

For the three months ended March 31, 2021, cash provided by operating activities was $26.8 million compared to $13.5 million for the three months ended March 31, 2020. The increase of $13.3 million is a reflection of the resilient cash generating ability of our portfolio of high-quality funeral home and cemetery operations. Our operating income (excluding the non-cash impact of the divestitures and impairment charges) increased $9.1 million in addition to other favorable working capital changes.

Investing Activities

Our investing activities, resulted in a net cash outflow of $1.9 million for the three months ended March 31, 2021 compared to $30.7 million for the three months ended March 31, 2020, a decrease of $28.8 million.

Acquisition and Divestiture Activity

During the three months ended March 31, 2021, we sold two funeral homes for $2.8 million and purchased real estate for $0.4 million.

During the three months ended March 31, 2020, we acquired a funeral home and cemetery combination business in Lafayette, California for $33.0 million in cash, of which $5.0 million was deposited in escrow in 2019 and $28.0 million was paid in 2020.

Capital Expenditures

For the three months ended March 31, 2021, capital expenditures (comprising of growth and maintenance spend) totaled $4.3 million compared to $2.7 million for the three months ended March 31, 2020, an increase of $1.6 million.

The following tables present our growth and maintenance capital expenditures (in thousands):

	Three months ended March 31,
	2020		2021
Growth
Cemetery development	$	954	$	1,486
Renovations at certain businesses	141		710
Other	87		11
Total Growth	$	1,182	$	2,207

	Three months ended March 31,
	2020		2021
Maintenance
Facility repairs and improvements	$	246	$	253
Vehicles	428		514
General equipment and furniture	649		1,130
Paving roads and parking lots	132		182
Other	101		61
Total Maintenance	$	1,556	$	2,140

Financing Activities

Our financing activities resulted in a net cash outflow of $25.4 million for the three months ended March 31, 2021 compared to a net cash inflow of $28.3 million for the three months ended March 31, 2020, an increase of $53.7 million. 

During the three months ended March 31, 2021, we had net payments on our Credit Facility, acquisition debt and finance leases of $19.1 million, we paid $1.8 million in dividends and $4.0 million for the conversions and maturity of our Convertible Notes.

During the three months ended March 31, 2020, we had net borrowings on our Credit Facility, acquisition debt and finance leases of $29.7 million and paid $1.3 million in dividends.

Share Repurchase

During the three months ended March 31, 2021, we did not repurchase any shares of our common stock. At March 31, 2021, we had approximately $25.6 million available for repurchases under our share repurchase program.

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Dividends

Our Board declared the following dividends payable on the dates below (in thousands, except per share amounts):

2020	Per Share		Dollar Value
March 1st	$	0.075	$	1,339

2021	Per Share		Dollar Value
March 1st	$	0.100	$	1,799

Credit Facility, Lease Obligations and Acquisition Debt

The outstanding principal of our Credit Facility, lease obligations and acquisition debt at March 31, 2021 is as follows (in thousands):

	March 31, 2021
Credit Facility	$	28,300
Finance leases	5,776
Operating leases	21,933
Acquisition debt	5,355
Total	$	61,364

Credit Facility

At March 31, 2021, our $190.0 million senior secured revolving credit facility (the “Credit Facility”) was comprised of: (i) a $190.0 million revolving credit facility, including a $15.0 million subfacility for letters of credit and a $10.0 million swingline, and (ii) an accordion or incremental option allowing for future increases in the facility size by an additional amount of up to $75.0 million in the form of increased revolving commitments or incremental term loans. The final maturity of the Credit Facility will occur on May 31, 2023.

The Credit Facility is secured by a first-priority perfected security interest in and lien on substantially all of the Company’s personal property assets and those of the Credit Facility Guarantors. In the event the Company’s actual Total Leverage Ratio is not at least 0.25 less than the required Total Leverage Ratio covenant level, at the discretion of the Administrative Agent, the Administrative Agent may unilaterally compel the Company and the Credit Facility Guarantors to grant and perfect first-priority mortgage liens on fee-owned real property assets which account for no less than 50% of funeral operations EBITDA.

The Credit Facility contains customary affirmative covenants, including, but not limited to, covenants with respect to the use of proceeds, payment of taxes and other obligations, continuation of the Company’s business and the maintenance of existing rights and privileges, the maintenance of property and insurance, amongst others.

In addition, the Credit Facility also contains customary negative covenants, including, but not limited to, covenants that restrict (subject to certain exceptions) the ability of the Company and its subsidiaries party thereto as guarantors (the “Credit Facility Guarantors”) to incur additional indebtedness, grant liens on assets, make investments, engage in mergers and acquisitions, and pay dividends and other restricted payments, and certain financial covenants. As of March 31, 2021, we were subject to the following financial covenants under our Credit Facility: (A) a Total Leverage Ratio not to exceed 5.50 to 1.00, (B) a Senior Secured Leverage Ratio (as defined in the Credit Facility) not to exceed 2.00 to 1.00 as of the end of any period of four consecutive fiscal quarters, and (C) a Fixed Charge Coverage Ratio (as defined in the Credit Facility) of not less than 1.20 to 1.00 as of the end of any period of four consecutive fiscal quarters. These financial maintenance covenants are calculated for the Company and its subsidiaries on a consolidated basis.

We were in compliance with the total leverage ratio, fixed charge coverage ratio and senior secured leverage ratio covenants contained in our Credit Facility as of March 31, 2021.

At March 31, 2021, we had outstanding borrowings under our Credit Facility of $28.3 million. We also had one letter of credit for $2.1 million outstanding under the Credit Facility, which bears interest at 3.125% and will expire on November 25, 2021. The letter of credit will automatically renew annually and secures our obligations under our various self-insured policies. At March 31, 2021, we had $159.6 million of availability under the Credit Facility after giving effect to the $2.1 million of the outstanding letter of credit.

Outstanding borrowings under our Credit Facility bear interest at either a prime rate or a LIBOR rate, plus an applicable margin based upon our leverage ratio. At March 31, 2021, the prime rate margin was equivalent to 1.5% and the LIBOR rate margin was 2.5%. The weighted average interest rate on our Credit Facility was 4.3% and 3.3% for the three months ended March 31, 2020 and 2021, respectively.

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The interest expense and amortization of debt issuance costs related to our Credit Facility are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Credit Facility interest expense	$	1,230	$	445
Credit Facility amortization of debt issuance costs	126		118

Lease Obligations

Our lease obligations consist of operating and finance leases. We lease certain office facilities, certain funeral homes and equipment under operating leases with original terms ranging from one to nineteen years. Many leases include one or more options to renew, some of which include options to extend the leases for up to 26 years. We lease certain funeral homes under finance leases with original terms ranging from ten to forty years.

The lease cost related to our operating leases and short-term leases and depreciation expense and interest expense related to our finance leases are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Operating lease cost	$	957	$	960
Short-term lease cost	32		49
Variable lease cost	25		41
Finance lease cost:
Depreciation of lease right-of-use assets	$	109	$	108
Interest on lease liabilities	126		120

Acquisition Debt

Acquisition debt consists of deferred purchase price and promissory notes payable to sellers. A majority of the deferred purchase price and notes bear no interest and are discounted at imputed interest rates ranging from 7.3% to 10.0%. Original maturities range from five to twenty years.

The imputed interest expense related to our acquisition debt is as follows (in thousands):

	Three months ended March 31,
	2020		2021
Acquisition debt imputed interest expense	$	127	$	97

Convertible Subordinated Notes due 2021

During the three months ended March 31, 2021, we converted approximately $2.4 million in aggregate principal amount of our Convertible Notes held by certain holders for approximately $3.8 million in cash. The Convertible Notes matured on March 15, 2021, at which time all Convertible Notes outstanding, approximately $0.2 million in aggregate principal amount, were paid in full in cash at par value. Therefore, no Convertible Notes remain outstanding at March 31, 2021.

The interest expense and accretion of debt discount and debt issuance costs related to our Convertible Notes are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Convertible Notes interest expense	$	43	$	18
Convertible Notes accretion of debt discount	65		20
Convertible Notes amortization of debt issuance costs	6		1

The effective interest rate on the unamortized debt discount for both the three months ended March 31, 2020 and 2021 was 11.4%. The effective interest rate on the debt issuance costs for the three months ended March 31, 2020 and 2021 was 3.2% and 3.1%, respectively.

Senior Notes due 2026

At March 31, 2021, the principal amount of our 6.625% senior notes due 2026 (the “Senior Notes”) was $400.0 million. The Senior Notes were issued under an indenture, dated as of May 31, 2018 (the “Indenture”), among us, certain of our existing subsidiaries (collectively, the “Subsidiary Guarantors”), as guarantors, and Wilmington Trust, National Association., as trustee. The Senior Notes are unsecured, senior obligations and are fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally, by each of the Subsidiary Guarantors. The Senior Notes are due on June 1, 2026 unless earlier redeemed

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or repurchased and bear interest at 6.625% per year, which is payable semi-annually in arrears on June 1 and December 1 of each year.

We may redeem all or part of the Senior Notes at any time prior to June 1, 2021 at a redemption price equal to 100% of the principal amount of Senior Notes redeemed, plus a “make whole” premium, and accrued and unpaid interest, if any, to the date of redemption. We have the right to redeem the Senior Notes at any time on or after June 1, 2021 at the redemption prices described in the Indenture, plus accrued and unpaid interest, if any, to the date of redemption. Additionally, at any time before June 1, 2021, we may redeem up to 40% of the aggregate principal amount of the Senior Notes issued with an amount equal to the net proceeds of certain equity offerings, at a price equal to 106.625% of the principal amount of the Senior Notes, plus accrued and unpaid interest, if any, to the date of redemption; provided that (1) at least 60% of the aggregate principal amount of the Senior Notes (including any additional Senior Notes) originally issued under the Indenture remain outstanding immediately after the occurrence of such redemption (excluding Senior Notes held by us); and (2) each such redemption must occur within 180 days of the date of the closing of each such equity offering.

If a “change of control” occurs, holders of the Senior Notes will have the option to require us to purchase for cash all or a portion of their Senior Notes at a price equal to 101% of the principal amount of the Senior Notes, plus accrued and unpaid interest. In addition, if we make certain asset sales and do not reinvest the proceeds thereof or use such proceeds to repay certain debt, we will be required to use the proceeds of such asset sales to make an offer to purchase the Senior Notes at a price equal to 100% of the principal amount of the Senior Notes, plus accrued and unpaid interest.

The Indenture contains restrictive covenants limiting our ability and our Restricted Subsidiaries (as defined in the Indenture) to, among other things, incur additional indebtedness or issue certain preferred shares, create liens on certain assets to secure debt, pay dividends or make other equity distributions, purchase or redeem capital stock, make certain investments, sell assets, agree to certain restrictions on the ability of Restricted Subsidiaries to make payments to us, consolidate, merge, sell or otherwise dispose of all or substantially all assets, or engage in transactions with affiliates. The Indenture also contains customary events of default.

The interest expense and amortization of debt discount, debt premium and debt issuance costs related to our Senior Notes are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Senior Notes interest expense	$	6,625	$	6,625
Senior Notes amortization of debt discount	129		138
Senior Notes amortization of debt premium	54		58
Senior Notes amortization of debt issuance costs	67		74

At March 31, 2021, the fair value of the Senior Notes, which are Level 2 measurements, was $417.6 million.

The debt discount, the debt premium and the debt issuance costs are being amortized using the effective interest method over the remaining term of approximately 62 months of the Senior Notes. The effective interest rate on the unamortized debt discount and the unamortized debt issuance costs for the Senior Notes, issued in May 2018, for both three months ended March 31, 2020 and 2021 was 6.87% and 6.69%, respectively. The effective interest rate on the unamortized debt premium and the unamortized debt issuance costs for the Senior Notes, issued in December 2019, for both three months ended March 31, 2020 and 2021 was 6.20% and 6.88%, respectively.

On April 30, 2021, we delivered a notice of conditional redemption to the trustee for the Senior Notes to call for redemption on June 1, 2021, all of the outstanding aggregate principal amount of the Senior Notes at a redemption price of 104.969% of the principal amount thereof, plus accrued and unpaid interest up to, but excluding, the scheduled redemption date. Our redemption obligation is conditioned on and subject to the completion of the offering of $400 million in aggregate principal amount of 4.25% Senior Notes due 2029 and the entry into an amended and restated credit facility in connection with the closing of the offering.

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FINANCIAL HIGHLIGHTS

Below are our financial highlights (in thousands except for volumes and averages):

	Three months ended March 31,
	2020		2021
Revenue	$	77,490	$	96,637
Funeral contracts	11,493		13,296
Average revenue per funeral contract	$	5,233	$	5,276
Preneed interment rights (property) sold	1,868		2,658
Average price per preneed interment right sold	$	3,779	$	4,551
Gross profit	$	23,171	$	35,061
Net income (loss)	$	(4,197)	$	12,933

Revenue for the three months ended March 31, 2021 increased $19.1 million compared to the three months ended March 31, 2020, as we experienced a 15.7% increase in total funeral contracts primarily due to a peak spike in Covid deaths in the first quarter of 2021 when compared to the first quarter of 2020, which resulted in market share gains for the majority of our businesses, while the average revenue per funeral contract remained flat. In addition, we experienced a 42.3% increase in the number of preneed interment rights (property) sold, as well as a 20.4% increase in the average price per interment right sold of 20.4%, primarily due to 1) the full integration of the cemetery acquisitions made in the fourth quarter of 2019 and first quarter of 2020, and 2) the execution of the initial stages of our two year cemetery sales strategy of building high performance sales teams and standardized sales systems across our portfolio of cemeteries.

Gross profit for the three months ended March 31, 2021 increased $11.9 million compared to the three months ended March 31, 2020, primarily due to the increase in revenue from both our funeral home and cemetery segments, as well as disciplined expense and cost management by leaders at each business.

Net income for the three months ended March 31, 2021 increased $17.1 million compared to the three months ended March 31, 2020, primarily due to the increase in gross profit and the $14.7 million impairment charge we recorded in the first quarter of 2020 that did not occur in first quarter of 2021, offset by the $7.8 million increase in tax expense in the first quarter of 2021 as we experienced a net loss in the first quarter of 2020.

Further discussion of Revenue and the components of Gross profit for our funeral home and cemetery segments is presented herein under “– Results of Operations.”

Further discussion of General, administrative and other expenses, Home office depreciation and amortization expense, Interest expense, Income taxes and other components of income and expenses are presented herein under “– Other Financial Statement Items.”

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REPORTING AND NON-GAAP FINANCIAL MEASURES

We also present our financial performance in our “Operating and Financial Trend Report” (“Trend Report”) as reported in our earnings release for the three months ended March 31, 2021 issued on April 21, 2021 and discussed in the corresponding earnings conference call. The Trend Report is used as a supplemental financial statement by management and investors to compare our current financial performance with our previous results and with the performance of other companies. We do not intend for this information to be considered in isolation or as a substitute for other measures of performance prepared in accordance with United States generally accepted accounting principles (“GAAP”). The Trend Report is a non-GAAP statement that also provides insight into underlying trends in our business.

Below is a reconciliation of Net income (loss), a GAAP measure, to Adjusted net income, a non-GAAP measure, (in thousands):

	Three months ended March 31,
	2020		2021
Net income (loss)	$	(4,197)	$	12,933
Special items, net of tax(1)
Acquisition expenses	90		—
Severance and separation costs(2)	228		1,244
Accretion of discount on Convertible Notes(1)	65		20
Gain on divestitures(3)	—		(213)
Net impact of impairment of goodwill and other intangibles(3)	9,757		—
Litigation reserve	59		—
Natural disaster and pandemic costs(4)	111		706
Adjusted net income(5)	$	6,113	$	14,690

(1)	Special items are defined as charges or credits included in our GAAP financial statements that can vary from period to period and are not reflective of costs incurred in the ordinary course of our operations. Special items are taxed at the federal statutory rate of 21.0%, except for the Accretion of the discount on Convertible Notes, as this is a non-tax deductible item. The Gain on divestitures and the Net impact of impairment of goodwill and other intangibles taxed at the operating tax rate during the respective period (described below).
(2)	The increase is due to separation costs related to the resignation of two members of senior leadership in the first quarter of 2021.
(3)	Net of the operating tax rate of 33.6% in 2020 and 31.0% in 2021.
(4)	The increase is primarily due to health and safety expenses, including personal protective equipment (“PPE”). In the first quarter of 2020, we purchased PPE during the last few weeks of March 2020 when the Pandemic began compared to three months in the first quarter of 2021.
(5)	Adjusted net income is defined as Net income plus adjustments for Special items and other expenses or gains that we believe do not directly reflect our core operations and may not be indicative of our normal business operations.

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Below is a reconciliation of Gross profit (a GAAP measure) to Operating profit (a non-GAAP measure) (in thousands):

	Three months ended March 31,
	2020		2021
Gross profit	$	23,171	$	35,061
Cemetery property amortization	877		1,517
Field depreciation expense	3,290		3,136
Regional and unallocated funeral and cemetery costs	2,756		6,073
Operating profit(1)	$	30,094	$	45,787

(1) Operating profit is defined as Gross profit less Cemetery property amortization, Field depreciation expense and Regional and unallocated funeral and cemetery costs.

Our operations are reported in two business segments: Funeral Home and Cemetery. Below is a breakdown of Operating profit (a non-GAAP measure) by Segment (in thousands):

	Three months ended March 31,
	2020		2021
Funeral Home	$	24,274	$	32,906
Cemetery	5,820		12,881
Operating profit	$	30,094	$	45,787
Operating profit margin(1)	38.8%		47.4%

(1) Operating profit margin is defined as Operating profit as a percentage of Revenue.

Further discussion of Operating profit for our funeral home and cemetery segments is presented herein under “– Results of Operations.”

RESULTS OF OPERATIONS

The following is a discussion of our results of operations for the three months ended March 31, 2021 and 2020.

The term “same store” refers to funeral homes and cemeteries acquired prior to January 1, 2017 and owned and operated for the entirety of each period being presented, excluding certain funeral home and cemetery businesses that we intend to divest in the near future.

The term “acquired” refers to funeral homes and cemeteries purchased after December 31, 2016, excluding any funeral home and cemetery businesses that we intend to divest in the near future. This classification of acquisitions has been important to management and investors in monitoring the results of these businesses and to gauge the leveraging performance contribution that a selective acquisition program can have on total company performance.

The term “divested” when discussed in the Funeral Home Segment, refers to the two funeral homes we sold in first quarter of 2021.

“Planned divested” refers to the funeral home and cemetery businesses that we intend to divest.

“Ancillary” in the Funeral Home Segment represents our flower shop, pet cremation business and online cremation business.

Cemetery property amortization, Field depreciation expense and Regional and unallocated funeral and cemetery costs, are not included in Operating profit, a non-GAAP financial measure. Adding back these items will result in Gross profit, a GAAP financial measure.

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Funeral Home Segment

The following table sets forth certain information regarding our Revenue and Operating profit from our funeral home operations (in thousands):

	Three months ended March 31,
	2020		2021
Revenue:
Same store operating revenue	$	46,696	$	56,683
Acquired operating revenue	8,885		10,139
Divested/planned divested revenue	2,757		1,217
Ancillary revenue	1,151		1,207
Preneed funeral insurance commissions	366		330
Preneed funeral trust and insurance	1,887		2,198
Total	$	61,742	$	71,774
Operating profit:
Same store operating profit	$	18,062	$	25,812
Acquired operating profit	3,247		4,467
Divested/planned divested operating profit	673		134
Ancillary operating profit	295		242
Preneed funeral insurance commissions	156		91
Preneed funeral trust and insurance	1,841		2,160
Total	$	24,274	$	32,906

The following measures reflect the significant metrics over this comparative period:

	Three months ended March 31,
	2020		2021
Same store:
Contract volume	9,058		11,028
Average revenue per contract, excluding preneed funeral trust earnings	$	5,155	$	5,140
Average revenue per contract, including preneed funeral trust earnings	$	5,344	$	5,318
Burial rate	36.9%		36.6%
Cremation rate	55.0%		57.0%
Acquired:
Contract volume	1,733		2,002
Average revenue per contract, excluding preneed funeral trust earnings	$	5,127	$	5,065
Average revenue per contract, including preneed funeral trust earnings	$	5,182	$	5,135
Burial rate	42.0%		41.1%
Cremation rate	54.6%		54.1%

Funeral home same store operating revenue for the three months ended March 31, 2021 increased $10.0 million compared to the three months ended March 31, 2020. The increase in operating revenue is primarily due to a 21.7% same store contract volume increase, while the average revenue per contract excluding preneed interest, remained flat in the three months ended March 31, 2021 compared to the same period in 2020. The increase in volume is primarily due to a peak spike in Covid deaths in the first quarter of 2021, which resulted in market share gains for the majority of our businesses.

Funeral home same store operating profit for the three months ended March 31, 2021 increased $7.8 million when compared to the three months ended March 31, 2020. The comparable operating profit margin increased 680 basis points to 45.5%. The increase in operating profit is primarily due to the increase in same store operating revenue along with disciplined expense and cost management by leaders at each business. Operating expenses as a percent of operating revenue decreased 6.9% for the three months ending 2021 compared to the same period in 2020. The largest decrease was in salaries and benefits, which decreased 3.7% as a percent of operating revenue as we increased revenue without adding extra personnel.

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Funeral home acquired operating revenue for the three months ended March 31, 2021 increased $1.3 million compared to the three months ended March 31, 2020. The increase in operating revenue is primarily due to a 15.5% increase in acquired contract volume primarily due to the increased deaths related to the COVID-19 pandemic and broad market share gains, which was partially offset by a 1.2% decrease in the average revenue per contract, excluding preneed interest, due to a 90 basis point decrease in the burial rate, along with a 5.4% decrease of cremation contracts with services.

Acquired operating profit for the three months ended March 31, 2021 increased $1.2 million when compared to the three months ended March 31, 2020. The comparable operating profit margin increased 760 basis points to 44.1%. The increase in operating profit is primarily due to the increase in acquired operating revenue along with disciplined expense and cost management by leaders at each business. The operating margin of the nine businesses acquired in the fourth quarter of 2019 increased 310 basis points and the operating margin of the business acquired in the first quarter of 2020 increased 520 basis points during the three months ended March 31, 2021 compared to the same period in 2020. Overall acquired operating expenses as a percent of operating revenue decreased 7.5%, with the largest decrease in salaries and benefits of 5.9% as we increased revenue without adding extra personnel.

Ancillary revenue, which is recorded in Other revenue, represents revenue from our flower shop, pet cremation and online cremation businesses acquired in the fourth quarter of 2019. Ancillary revenue increased 4.9% for the three months ending March 31, 2021 compared to the three months ending March 31, 2020 primarily due to an increase in our online cremation business.

Ancillary operating profit decreased 18.0% for the three months ended March 31, 2021 compared to the same period in 2020, primarily due to an increase in operating expenses with the largest increase in third party pick up and embalming and general and administrative expenses at our online cremation business.

Preneed funeral insurance commissions and preneed funeral trust and insurance, also recorded in Other revenue, on a combined basis, increased $0.3 million or 12.2% for the three months ended March 31, 2021 compared to the same period in 2020. The increase is primarily related to a 13.9% increase in preneed contracts maturing to atneed which triggers the recognition of trust earnings on matured contracts. Operating profit for preneed funeral insurance commissions and preneed trust and insurance, on a combined basis, increased $0.3 million or 12.7% for the same comparative period, primarily due to the increase in preneed funeral trust and insurance revenue.

Cemetery Segment

The following table sets forth certain information regarding our Revenue and Operating profit from our cemetery operations (in thousands):

	Three months ended March 31,
	2020		2021
Revenue:
Same store operating revenue	$	10,907	$	14,621
Acquired operating revenue	2,799		6,980
Divested/planned divested revenue	58		108
Preneed cemetery trust revenue	1,742		2,889
Preneed cemetery finance charges	242		265
Total	$	15,748	$	24,863
Operating profit:
Same store operating profit	$	3,167	$	5,711
Acquired operating profit	827		4,102
Divested/planned divested operating profit	3		38
Preneed cemetery trust operating profit	1,581		2,765
Preneed cemetery finance charges	242		265
Total	$	5,820	$	12,881

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The following measures reflect the significant metrics over this comparative period:

	Three months ended March 31,
	2020		2021
Same store:
Preneed revenue as a percentage of operating revenue	58%		58%
Preneed revenue (in thousands)	$	6,303	$	8,460
Atneed revenue (in thousands)	$	4,604	$	6,162
Number of preneed interment rights sold	1,561		1,887
Average price per interment right sold	$	3,615	$	3,879
Acquired:
Preneed revenue as a percentage of operating revenue	62%		64%
Preneed revenue (in thousands)	1,736		$	4,444
Atneed revenue (in thousands)	1,063		$	2,537
Number of preneed interment rights sold	300		750
Average price per interment right sold	$	4,696	$	5,800

Cemetery same store preneed revenue increased $2.2 million for the three months ended March 31, 2021 compared to the same period in 2020, as we experienced a 20.9% increase in the number of interments rights sold, as well as a 7.3% increase in the average price per interment right sold. The increase is primarily due to the execution of the initial stages of our two year cemetery sales strategy of building high performance sales teams and standardized sales systems across our portfolio of cemeteries. Cemetery same store atneed revenue, which represents 42% of our same store operating revenue, increased $1.6 million as we experienced a 23.7% increase in same store atneed contracts and an 8.3% increase in the average sale per contract for the three months ended March 31, 2021 compared to the same period in 2020, primarily due to the increased deaths related to the COVID-19 pandemic.

Cemetery same store operating profit for the three months ended March 31, 2021 increased $2.5 million from the same period in 2020. The comparable operating profit margin increased 1,010 basis points to 39.1% primarily as a result of the increase in operating revenue, along with disciplined expense and cost management by leaders at each business. Operating expenses as a percent of operating revenue decreased 10.0% in the first quarter of 2021 compared to the same period in 2020, most notably in salaries and wages, which decreased 4.5% as a percent of operating revenue, followed by promotional expenses and facilities and grounds costs which decreased 1.8% and 1.3% respectively, as a percent of operating revenue.

There are three businesses in our acquired cemetery portfolio, two of which were acquired in the fourth quarter of 2019 and one acquired in the first quarter of 2020. In the first quarter of 2020, we hired new sales leadership at two of the newly acquired cemeteries and continued to build their respective sales team throughout the year. As a result, our acquired cemetery portfolio experienced a $2.7 million increase in preneed revenue and a $1.5 million increase in atneed revenue for the period ended March 31, 2021 compared to the same period in 2020.

Cemetery acquired operating profit increased $3.3 million for three months ended March 31, 2021. The comparable operating profit margin increased 2,930 basis points to 58.8% primarily as a result of the increase in operating revenue, along with disciplined expense and cost management by leaders at each business. Operating expenses as a percent of operating revenue decreased 29% in the first quarter of 2021 compared to the same period in 2020, as we experienced decreases in the majority of our operating costs, most notably in salaries and wages, which decreased 17% as a percent of operating revenue, as we increased revenue without adding extra personnel.

Preneed cemetery trust revenue and preneed cemetery finance charges, which are recorded in Other revenue, on a combined basis increased $1.2 million for the three months ended March 31, 2021 compared to the same period in 2020. The increase in our trust fund income is primarily due to our execution of a major repositioning strategy beginning at the height of the COVID-19 market crisis in March 2020, substantially increasing our preneed cemetery trust revenue and operating profit. We experienced a $0.9 million increase in income and a $0.2 million increase in realized capital gains within our trusts in the first quarter of 2021 compared to the same period of 2020. Operating profit for the two categories of Other revenue, on a combined basis, increased $1.2 million for three months ended March 31, 2021 compared to the same period in 2020 primarily due to the increase in preneed cemetery trust revenue.

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Cemetery property amortization. Cemetery property amortization totaled $1.5 million for the three months ended March 31, 2021, an increase of $0.6 million compared to the three months ended March 31, 2020, due to the increase in property sold across our cemetery portfolio.

Field depreciation. Depreciation expense for our field businesses decreased $0.2 million for the three months ended March 31, 2021 compared to the three months ended March 31, 2020. The decrease was primarily due to building structures and older vehicles becoming fully depreciated without any newly acquired building structures and vehicles to offset the decrease.

Regional and unallocated funeral and cemetery costs. Regional and unallocated funeral and cemetery costs consist of salaries and benefits for regional management, field incentive compensation and other related costs for field infrastructure. Regional and unallocated funeral and cemetery costs totaled $6.1 million for the three months ended March 31, 2021, an increase of $3.3 million primarily due to the following: (1) a $2.2 million increase in cash incentives and equity compensation, as a result of our improved performance, which reinforces our strategy of aligning incentives with long-term value creation; (2) a $0.7 million increase in health and safety expenses related to the COVID-19 pandemic; and (3) a $0.4 million increase in other general administrative costs.

Other Financial Statement Items

General, administrative and other. General, administrative and other expenses totaled $8.8 million for the three months ended March 31, 2021, an increase of $2.9 million compared to the three months ended March 31, 2020. The increase was primarily attributable to the following: (1) a $1.4 million increase in cash incentives and equity compensation, as a result of our improved performance, which reinforces our strategy of aligning incentives with long-term value creation; (2) a $1.3 million increase in separation expenses related to the resignation of two members of senior leadership; and (3) a $0.2 million increase in other general administrative costs.

Home office depreciation and amortization. Home office depreciation and amortization expense totaled $0.3 million for the three months ended March 31, 2021, a decrease of $0.1 million compared to the three months ended March 31, 2020 primarily due to equipment and software at the home office becoming fully depreciated in the latter half of 2020 without any newly acquired assets to offset the decrease.

Net loss (gain) on divestitures and impairments charges. The components of Net loss (gain) on divestitures and impairment charges are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Goodwill impairment	$	13,632	$	—
Tradename impairment	1,061		—
Gain on divestitures	—		(308)
Total	$	14,693	$	(308)

During the three months ended March 31, 2021, we divested two funeral homes for a gain of $0.3 million.

During the three months ended March 31, 2020, we recorded an impairment for goodwill of $13.6 million as the carrying amount of our funeral homes in the Eastern Region Reporting Unit exceeded the fair value and we recorded an impairment for certain of our tradenames of $1.1 million as the carrying amount of these tradenames exceeded the fair value.

Interest expense. Interest expense totaled $7.6 million for the three months ended March 31, 2021, a decrease of $0.8 million compared to the three months ended March 31, 2020, primarily due to decreased borrowings on our Credit Facility.

Income taxes. Our income tax expense was $5.6 million for the three months ended March 31, 2021 compared to an income tax benefit of $2.2 million for the three months ended March 31, 2020. Our operating tax rate before discrete items was 31.0% and 33.6% for the three months ended March 31, 2021 and 2020.

We filed carryback refund claims for the 2018 and 2019 tax years as allowed by the legislative changes included in the CARES Act. As a result of requesting a tax refund in excess of $5 million, we must receive Joint Committee approval and undergo an audit for the tax year ending December 31, 2018. This audit is currently in progress. In 2020, the 2018 tax return was amended to take full advantage of the CARES Act legislative benefits resulting in additional losses that increase the amount of our carryback refund claim. The majority of the net operating losses generated in 2018 are the result of filing non-automatic accounting method changes relating to the recognition of revenue from our cemetery property and merchandise and services sales. Due to the uncertainty of receiving Internal Revenue Service approval regarding our non-automatic accounting method changes, a reserve has been recorded against the benefit derived from this carrying back that the net operating losses generated. At March 31, 2021, the reserve for uncertain tax positions was $3.7 million.

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OVERVIEW OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of the Consolidated Financial Statements requires us to make estimates and judgments that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. 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 revenue 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 because there can be no assurance that our margins, operating income and net income, as a percentage of revenue, will be consistent from year to year.

Management’s discussion and analysis of financial condition and results of operations (“MD&A”) is based upon our Consolidated Financial Statements presented herewith, which have been prepared in accordance with GAAP. Our critical accounting policies are discussed in MD&A in our Annual Report on Form 10-K for the year ended December 31, 2020.

SEASONALITY

Our business can be affected by seasonal fluctuations in the death rate. Generally, the death rate is higher during the winter months because the incidences of death from influenza and pneumonia are higher during this period than other periods of the year.

Item 3.Quantitative and Qualitative Disclosures About Market Risk.

In the ordinary course of business, we are typically exposed to a variety of market risks. Currently, these are primarily related to interest rate risk 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 appropriate risk management techniques when appropriate and when available for a reasonable price. We are not exposed to any other significant market risks other than those related to COVID-19 which are described in more detail in Item 1A - Risk Factors below.

The following quantitative and qualitative information is provided about financial instruments to which we are a party at March 31, 2021 and from which we may incur future gains or losses from changes in market conditions. We do not enter into derivative or other financial instruments for speculative or trading purposes.

Hypothetical changes in interest rates and the values of securities associated with the preneed and perpetual care trusts chosen for the following estimated sensitivity analysis are considered to be reasonable near-term changes generally based on consideration of past fluctuations for each risk category. However, since it is not possible to accurately predict future changes in interest rates, these hypothetical changes may not necessarily be an indicator of probable future fluctuations.

The following information about our market-sensitive financial instruments constitutes a “forward-looking statement.”

In connection with our preneed funeral operations and preneed cemetery merchandise and service sales, the related funeral and cemetery trust funds own investments in equity and debt securities and mutual funds, which are sensitive to current market prices. Cost and market values of such investments as of March 31, 2021 are presented in Item 1, “Condensed Notes to Consolidated Financial Statements,” Note 6 to our Consolidated Financial Statements in this Quarterly Report on Form 10-Q. The sensitivity of the fixed income securities is such that a 0.25% change in interest rates causes an approximate 1.38% change in the value of the fixed income securities.

We monitor current and forecasted interest rate risk in the ordinary course of business and seek to maintain optimal financial flexibility, quality and solvency. As of March 31, 2021, we had outstanding borrowings under the Credit Facility of $28.3 million. Any further borrowings or voluntary prepayments against the Credit Facility or any change in the floating rate would cause a change in interest expense. We have the option to pay interest under the Credit Facility at either prime rate or the LIBOR rate plus a margin. At March 31, 2021, the prime rate margin was equivalent to 1.5% and the LIBOR rate margin was 2.5%. Assuming the outstanding balance remains unchanged, a change of 100 basis points in our borrowing rate would result in a change in income before taxes of $0.3 million. We have not entered into interest rate hedging arrangements in the past. Management continually evaluates the cost and potential benefits of interest rate hedging arrangements.

Our Senior Notes bear interest at the fixed annual rate of 6.625%. We may redeem all or part of the Senior Notes at any time prior to June 1, 2021 at a redemption price equal to 100% of the principal amount of Senior Notes redeemed, plus a “make whole” premium, and accrued and unpaid interest, if any, to the date of redemption. We have the right to redeem the Senior Notes at any time on or after June 1, 2021 at the redemption prices described in the indenture governing the Senior Notes, plus accrued and unpaid interest, if any, to the date of redemption. At March 31, 2021, the carrying value of the Senior Notes on our Consolidated Balance Sheet was $396.1 million and the fair value of the Senior Notes was $417.6 million based on the last

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traded or broker quoted price, reported by the Financial Industry Regulatory Authority, Inc. Increases in market interest rates may cause the value of the Senior Notes to decrease, but such changes will not affect our interest costs. 

The remainder of our long-term debt and leases consist of non-interest bearing notes and fixed rate instruments that do not trade in a market and do not have a quoted market value. Any increase in market interest rates causes the fair value of those liabilities to decrease, but such changes will not affect our interest costs.

Item 4.Controls and Procedures.

Management’s Evaluation of Disclosure Controls and Procedures

Our management, including our principal executive and principal financial officers, have evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act as of the end of the period covered by this Quarterly Report on Form 10-Q. Our disclosure controls and procedures are designed to ensure that the information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, and to ensure that such information is accumulated and communicated to management, including our principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure. Based on such evaluation, our principal executive and principal financial officers concluded that our disclosure controls and procedures are effective as of March 31, 2021 and that the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q fairly present, in all material respects, our financial condition, results of operations, and cash flows for the periods presented in conformity with US GAAP.

Changes in Internal Control over Financial Reporting

There was no change in our system of internal control over financial reporting (defined in Rules 13a-15(f) or 15d-15(f) under the Exchange Act) during the fiscal quarter covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1.Legal Proceedings.

We and our subsidiaries are parties to a number of legal proceedings that arise from time to time in the ordinary course of our business. While the outcome of these proceedings cannot be predicted with certainty, we do not expect these matters to have a material adverse effect on our financial statements.

We self-insure against certain risks and carry insurance with coverage and coverage limits for risk in excess of the coverage amounts consistent with our assessment of risks in our business and of an acceptable level of financial exposure. Although there can be no assurance that self-insurance reserves and insurance will be sufficient to mitigate all damages, claims, or contingencies, we believe that the reserves and our insurance provides reasonable coverage for known asserted and unasserted claims. In the event we sustain a loss from a claim and the insurance carrier disputes coverage or coverage limits, we may record a charge in a different period than the recovery, if any, from the insurance carrier.

Item 1A.Risk Factors.

Risk Factor Update

We are supplementing the risk factors as previously disclosed in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”), with the updated risk factors set out below. The risk factors below should be read in conjunction with the risk factors set out in our 2020 Form 10-K:

RISKS RELATED TO OUR BUSINESS

Key Employees and Compensation

Our “Good To Great” and “Good To Great II” incentive programs could result in significant future payments and the issuance of a significant number of shares of common stock to our Managing Partners and to certain critical employees who are not managing partners.

Our Good To Great incentive program rewards our Managing Partners for achieving an average net revenue compounded annual growth rate equal to at least 1% (the “Minimum Growth Rate”) over a five year performance period (the “Performance Period”) with respect to our funeral homes that they operate, which aligns our incentives with long-term value creation. Each Managing Partner that achieves the Minimum Growth Rate during the applicable Performance Period and remains continuously employed as a Managing Partner of the same business throughout the Performance Period will receive a one-time bonus, payable in a combination of cash and shares of our common stock, determined at our discretion. To date, we have had five Performance Periods ended, with the most recent period ended December 31, 2020, which over the course of those five Performance Periods our highest Good To Great incentive bonus paid to our Managing Partners was for the Performance Period ended December 31, 2016, totaling $2.4 million. Although we have had sufficient levels of cash on hand to make cash bonus payments under the program, there is the potential we could be required to make similar or higher cash bonus payments than our highest historical payment under the program, which could result in less cash available to fund our operations. Because the bonus payments under the program are subject to achieving a Minimum Growth Rate, which is determined by various operational, financial and performance measures, future potential bonus payments cannot be determined with certainty at this time. In addition, our Good To Great II incentive program rewards certain of our employees who are not Managing Partners in alignment with the incentive programs for our Managing Partners. For example, there is a potential risk of dilution to our shareholders if we achieve the highest performance tier under the Good To Great II incentive program, which equals a Common Stock Price Average (as defined by the program) of $77.34 per share. As of March 31, 2021, under such a scenario, a total of 971,820 shares of common stock would be awarded to participants under the program. We believe these incentive programs will result in improved field-level margins, market share and overall financial performance.

Please also refer to the complete set of Risk Factors discussed in Part I, Item 1A “Risk Factors” in our 2020 Form 10-K, which could materially affect our business, financial condition or future results. The risks described in our 2020 Form 10-K are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The following table sets forth certain information with respect to repurchases of our common stock during the quarter ended March 31, 2021:

Period	Total Number of Shares Purchased(1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Program	Dollar Value of Shares That May Yet Be Purchased Under the Program(2)
January 1, 2021 - January 31, 2021	—	$	—	—	$	25,601,446
February 1, 2021 - February 28, 2021	9,688	$	35.81	—	$	25,601,446
March 1, 2021 - March 31, 2021	—	$	—	—	$	25,601,446
Total for quarter ended March 31, 2021	9,688			—

(1)	Represents shares surrendered by employees to pay taxes withheld upon the vesting of restricted stock awards.
(2)	See Part I, Item 1, Financial Statements and Supplementary Data, Note 14 for additional information on our publicly announced share repurchase program.

Item 3.Defaults Upon Senior Securities.

Not applicable.

Item 4.Mine Safety Disclosures.

Not applicable.

Item 5.Other Information.

None.

Item 6.Exhibits.

The exhibits required to be filed pursuant to the requirements of Item 601 of Regulation S-K are set forth in the Exhibit Index accompanying this Quarterly Report on Form 10-Q and are incorporated herein by reference.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		CARRIAGE SERVICES, INC.
Date:	May 5, 2021	/s/ C. Benjamin Brink
		C. Benjamin Brink
		Senior Vice President, Chief Financial Officer and Treasurer
		(Principal Financial Officer)

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CARRIAGE SERVICES, INC.

INDEX OF EXHIBITS

Exhibit No.	Description
10.1	First Amendment to Employment Agreement dated February 17, 2021 by and between the Company and Melvin C. Payne. Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on February 18, 2021. †
*10.2	Form of First Amendment to Employment Agreement Consideration $77.34 Option Grant dated February 17, 2021 by and between the Company and Melvin C. Payne. †
*10.3	Form of First Amendment to Employment Agreement Consideration $53.39 Option Grant dated February 17, 2021 by and between the Company and Melvin C. Payne. †
10.4	Release and Separation Agreement by and between Carriage Services, Inc. and Viki K. Blinderman, dated February 2, 2021 and effective March 31, 2021. Incorporated by reference to Exhibit 10.40 to the Company's Annual Report on Form 10-K filed on March 2, 2021. †
10.5	Second Amendment to the Amended and Restated Carriage Services, Inc. 2007 Employee Stock Purchase Plan. Incorporated by reference to Appendix A to the Company’s Definitive Proxy Statement on Schedule 14A filed with the SEC on April 5, 2021 and Amendment No. 1 to our Definitive Proxy Statement on Schedule 14A filed with the SEC on April 6, 2021. †
*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 C. Benjamin Brink in satisfaction of Section 302 of the Sarbanes-Oxley Act of 2002.
**32	Certification of Periodic Financial Reports by Melvin C. Payne and C. Benjamin Brink in satisfaction of Section 906 of the Sarbanes-Oxley Act of 2002 and 18 U.S.C. Section 1350.
*101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
*101.SCH	Inline XBRL Taxonomy Extension Schema Documents.
*101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
*101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
*101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
*104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

 __________________

(*)	Filed herewith.
(**)	Furnished herewith.
(†)	Management contract or compensatory plan or arrangement.

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EX-10.2

STOCK OPTION AGREEMENT

UNDER CARRIAGE SERVICES, INC.

2017 OMNIBUS INCENTIVE PLAN

THIS STOCK OPTION AGREEMENT (this “Agreement”) evidences the grant by CARRIAGE SERVICES, INC., a Delaware corporation (the “Company”), of an option (the “Option”) to purchase the number of shares of common stock, $.01 par value (“Common Stock”), of the Company specified below, to the Participant whose name appears below and who has evidenced his acceptance hereof by signing at the bottom of this Agreement. The term of the Option shall be for the number of years indicated below, commencing on the date of grant set forth below opposite the Company’s signature (the “Grant Date”), and for the number of shares and at the exercise price shown below, subject to adjustment as provided in Section 4.4 of the Carriage Services, Inc. 2017 Omnibus Incentive Plan (the “Plan”). The Option shall be subject to the vesting schedule set forth below. The Option is designated below as either an incentive stock option (“ISO”) or a non-qualified stock option (“NQSO”) within the meaning of Section 422 of the Internal Revenue Code. The Company makes no representation or guarantee that an initial grant of an ISO will continue to qualify as such. If the Participant’s employment with the Company terminates, the exercising of an Option(s) shall be governed pursuant to the termination provisions set forth in Section 6.3 of the Plan.

Name of Participant:	Melvin C. Payne
Option Period:	Ten (10) years
Number of ISO Options:	N/A
Number of NQSO Options:	100,000
Exercise Price Per Share:	$34.79
Vesting Schedule:	Subject to Section 6.3 of the Plan, the Option shall become vested when the Company’s Common Stock closes at, or above, the below specified price for three consecutive trading days.

Vesting Schedule

	$77.34
NQSO	100,000

The terms and conditions of this Agreement are subject to the terms and provisions of the Plan, as amended, of which the Participant acknowledges receiving a copy.

GRANTED EFFECTIVE this    CARRIAGE SERVICES, INC.

17th day of February, 2021

                                    By:_________________________________________

STEVEN D. METZGER, Senior Vice President, General Counsel & Secretary

ACCEPTANCE BY PARTICIPANT

THE UNDERSIGNED PARTICIPANT, by his execution below, hereby (i) accepts the grant of the Option on the terms set forth above, (ii) agrees to be bound by all of the terms and conditions of the Carriage Services, Inc. 2017 Omnibus Incentive Plan, including termination provisions in Section 6.3, a copy of which the Participant acknowledges having read and reviewed (together with any counsel or advisors of the Participant’s choice), and (iii) understands all of the legal, tax and other consequences hereof and thereof.

DATED:_____________________, ________.
	Melvin C. Payne

EX-10.3

STOCK OPTION AGREEMENT

UNDER CARRIAGE SERVICES, INC.

2017 OMNIBUS INCENTIVE PLAN

THIS STOCK OPTION AGREEMENT (this “Agreement”) evidences the grant by CARRIAGE SERVICES, INC., a Delaware corporation (the “Company”), of an option (the “Option”) to purchase the number of shares of common stock, $.01 par value (“Common Stock”), of the Company specified below, to the Participant whose name appears below and who has evidenced his acceptance hereof by signing at the bottom of this Agreement. The term of the Option shall be for the number of years indicated below, commencing on the date of grant set forth below opposite the Company’s signature (the “Grant Date”), and for the number of shares and at the exercise price shown below, subject to adjustment as provided in Section 4.4 of the Carriage Services, Inc. 2017 Omnibus Incentive Plan (the “Plan”). The Option shall be subject to the vesting schedule set forth below. The Option is designated below as either an incentive stock option (“ISO”) or a non-qualified stock option (“NQSO”) within the meaning of Section 422 of the Internal Revenue Code. The Company makes no representation or guarantee that an initial grant of an ISO will continue to qualify as such. If the Participant’s employment with the Company terminates, the exercising of an Option(s) shall be governed pursuant to the termination provisions set forth in Section 6.3 of the Plan.

Name of Participant:	Melvin C. Payne
Option Period:	Ten (10) years
Number of ISO Options:	N/A
Number of NQSO Options:	50,000
Exercise Price Per Share:	$34.79
Vesting Schedule:	Subject to Section 6.3 of the Plan, the Option shall become vested when the Company’s Common Stock closes at, or above, the below specified price for three consecutive trading days.

Vesting Schedule

	$53.39
NQSO	50,000

The terms and conditions of this Agreement are subject to the terms and provisions of the Plan, as amended, of which the Participant acknowledges receiving a copy.

GRANTED EFFECTIVE this    CARRIAGE SERVICES, INC.

17th day of February, 2021

                                    By:_________________________________________

STEVEN D. METZGER, Senior Vice President, General Counsel & Secretary

ACCEPTANCE BY PARTICIPANT

THE UNDERSIGNED PARTICIPANT, by his execution below, hereby (i) accepts the grant of the Option on the terms set forth above, (ii) agrees to be bound by all of the terms and conditions of the Carriage Services, Inc. 2017 Omnibus Incentive Plan, including termination provisions in Section 6.3, a copy of which the Participant acknowledges having read and reviewed (together with any counsel or advisors of the Participant’s choice), and (iii) understands all of the legal, tax and other consequences hereof and thereof.

DATED:_____________________, ________.
	Melvin C. Payne

EX-31.1

EXHIBIT 31.1

I, Melvin C. Payne, certify that:

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:	May 5, 2021	/s/ Melvin C. Payne
		Melvin C. Payne
		Chief Executive Officer and Chairman of the Board
		(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

I, C. Benjamin Brink, certify that:

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:	May 5, 2021	/s/ C. Benjamin Brink
		C. Benjamin Brink
		Senior Vice President, Chief Financial Officer and Treasurer
		(Principal Financial Officer)

EX-32

EXHIBIT 32

Certification of

Chief Executive Officer and Chief Financial Officer

under Section 906 of the

Sarbanes Oxley Act of 2002, 18 U.S.C. § 1350

In connection with the Quarterly Report on Form 10-Q of Carriage Services, Inc. (the “Company”), as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Melvin C. Payne, Chief Executive Officer of the Company, and C. Benjamin Brink, Senior Vice President, Principal Financial Officer, Chief Financial Officer and Treasurer of the Company, each certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:

(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:	May 5, 2021	/s/ Melvin C. Payne
		Melvin C. Payne
		Chief Executive Officer and Chairman of the Board
		(Principal Executive Officer)
		/s/ C. Benjamin Brink
		C. Benjamin Brink
		Senior Vice President, Chief Financial Officer and Treasurer
		(Principal Financial Officer)

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	Apr. 30, 2021
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	1-11961
Entity Registrant Name	CARRIAGE SERVICES, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	76-0423828
Entity Address, Address Line One	3040 Post Oak Boulevard
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77056
City Area Code	713
Local Phone Number	332-8400
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	CSV
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		18,048,354
Entity Central Index Key	0001016281
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Subsequent Events	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS New Notes Purchase Agreement

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 406	$ 889
Accounts receivable, net	25,585	25,103
Inventories	7,386	7,259
Prepaid and other current assets	2,076	2,076
Total current assets	35,453	35,327
Preneed cemetery trust investments	92,363	86,604
Preneed funeral trust investments	105,201	101,235
Preneed cemetery receivables, net	21,533	21,081
Receivables from preneed trusts, net	16,976	16,844
Property, plant and equipment, net	267,055	269,051
Cemetery property, net	101,109	101,134
Goodwill	391,972	392,978
Intangible and other non-current assets, net	29,502	29,542
Operating lease right-of-use assets	20,747	21,201
Cemetery perpetual care trust investments	75,815	70,828
Total assets	1,157,726	1,145,825
Current liabilities:
Current portion of debt and lease obligations	3,301	3,432
Accounts payable	9,543	11,259
Accrued and other liabilities	39,599	31,138
Convertible subordinated notes due 2021	0	2,538
Total current liabilities	52,443	48,367
Acquisition debt, net of current portion	4,442	4,482
Credit facility	27,282	46,064
Acquisition debt, net of current portion	396,122	395,968
Obligations under finance leases, net of current portion	5,445	5,531
Obligations under operating leases, net of current portion	19,876	20,302
Deferred preneed cemetery revenue	48,840	47,846
Deferred preneed funeral revenue	28,181	27,992
Deferred tax liability	47,991	46,477
Other long-term liabilities	2,677	4,748
Deferred preneed cemetery receipts held in trust	92,363	86,604
Deferred preneed funeral receipts held in trust	105,201	101,235
Care trusts’ corpus	75,360	69,707
Total liabilities	906,223	905,323
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 80,000,000 shares authorized and 26,020,494 and 26,073,693 shares issued, respectively and 17,995,155 and 18,048,354 shares outstanding, respectively	261	260
Additional paid-in capital	238,056	239,989
Retained earnings	115,236	102,303
Treasury stock, at cost; 8,025,339 at both December 31, 2020 and March 31, 2021	(102,050)	(102,050)
Total stockholders’ equity	251,503	240,502
Total liabilities and stockholders’ equity	$ 1,157,726	$ 1,145,825
Common Stock, Shares, Outstanding	17,995,155	18,048,354

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	80,000,000	80,000,000
Common stock, shares issued	26,073,693	26,020,494
Treasury stock, shares	8,025,339	8,025,339

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Revenues	$ 96,637	$ 77,490
Field costs and expenses:
Cemetery property amortization	1,517	877
Field depreciation expense	3,136	3,290
Regional and unallocated funeral and cemetery costs	6,073	2,756
Other expenses	1,363	1,276
Total field costs and expenses	61,576	54,319
Gross profit	35,061	23,171
Corporate costs and expenses:
General, administrative and other	8,834	5,946
Home office depreciation and amortization	289	382
Net loss (gain) on divestitures and impairments charges	(308)	14,693
Operating income	26,246	2,150
Interest expense	(7,584)	(8,428)
Accretion of discount on convertible subordinated notes	(20)	(65)
Other, net	(68)	(4)
Income (loss) before income taxes	18,574	(6,347)
Benefit (expense) for income taxes	(5,758)	2,136
Tax adjustment related to discrete items	(117)	(14)
Total benefit (expense) for income taxes	(5,641)	2,150
Net income (loss)	$ 12,933	$ (4,197)
Earnings Per Share, Basic and Diluted [Abstract]
Continuing operations (in dollars per Share)	$ 0.72	$ (0.23)
Continuing operations (in dollars per Share)	0.71	(0.23)
Dividends declared per common share (in dollars per Share)	$ 0.1000	$ 0.075
Weighted average number of common and common equivalent shares outstanding:
Basic (in Shares)	17,965	17,805
Diluted (in Shares)	18,199	17,805
Funeral
Segment Reporting Information [Line Items]
Revenues	$ 71,774	$ 61,742
Field costs and expenses:
Cost of operating	20,967	21,057
Corporate costs and expenses:
Operating income	25,876	4,311
Income (loss) before income taxes	25,718	4,119
Cemetery
Segment Reporting Information [Line Items]
Revenues	24,863	15,748
Field costs and expenses:
Cost of operating	28,520	25,063
Corporate costs and expenses:
Operating income	9,493	4,167
Income (loss) before income taxes	9,476	4,105
Service Revenue [Member]
Segment Reporting Information [Line Items]
Revenues	47,757	40,732
Property and Merchandise [Member]
Segment Reporting Information [Line Items]
Revenues	41,896	31,271
Other Revenue [Member]
Segment Reporting Information [Line Items]
Revenues	6,984	5,487
Other Revenue [Member] | Funeral
Segment Reporting Information [Line Items]
Revenues	3,791	3,483
Other Revenue [Member] | Cemetery
Segment Reporting Information [Line Items]
Revenues	$ 3,193	$ 2,004

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net income	$ 12,933	$ (4,197)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,942	4,549
Provision for bad debt and credit losses	588	690
Stock-based compensation expense	1,307	831
Deferred income tax expense	1,514	3,596
Amortization of deferred financing costs	193	200
Amortization of capitalized commissions and non-compete agreements	152	141
Accretion of discount on convertible subordinated notes	20	65
Accretion of debt discount, net of debt premium on senior notes	80	75
Net loss (gain) on divestiture and impairment charges	(308)	14,693
Net loss on disposal of other assets	329	60
Other	0	19
Changes in operating assets and liabilities that provided (required) cash:
Accounts and preneed receivables	(1,521)	2,179
Inventories, prepaid and other current assets	(153)	(8,748)
Intangible and other non-current assets	(291)	(290)
Preneed funeral and cemetery trust investments	(2,952)	(2,890)
Accounts payable	(1,712)	(2,133)
Accrued and other liabilities	6,853	(114)
Deferred preneed funeral and cemetery revenue	1,183	1,080
Deferred preneed funeral and cemetery receipts held in trust	3,486	3,553
Net cash provided by operating activities	26,811	13,546
Cash flows from investing activities:
Acquisition of businesses	0	(28,000)
Proceeds from divestitures and sale of other assets	2,800	78
Capital expenditures	(4,347)	(2,738)
Net cash used in investing activities	(1,897)	(30,660)
Cash flows from financing activities:
Borrowings from the credit facility	15,168	63,200
Payments against the credit facility	(34,068)	(33,000)
Conversions and maturity of the convertible subordinated notes due 2021	(3,980)	0
Payments on acquisition debt and obligations under finance leases	(233)	(487)
Payments on contingent consideration recorded at acquisition date	(461)	(169)
Proceeds from the exercise of stock options and employee stock purchase plan	625	361
Taxes paid on restricted stock vestings and exercise of stock options	(642)	(234)
Dividends paid on common stock	(1,799)	(1,339)
Net cash provided by (used in) financing activities	(25,397)	28,318
Net increase (decrease) in cash and cash equivalents	(483)	11,204
Cash and cash equivalents at beginning of period	889	716
Cash and cash equivalents at end of period	406	11,920
Senior Notes [Member]
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred financing costs	74	67
Cash flows from financing activities:
Payments of debt issuance costs and transaction costs	(7)	(14)
Senior Notes [Member] | Senior Note Two [Member]
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of debt discount, net of debt premium on senior notes	58	54
Convertible Subordinated Notes [Member]
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred financing costs	$ 1	$ 6

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 19, 2014
Amortization of Intangible Assets	$ 320	$ 328
Convertible Subordinated Notes [Member]
Stated interest rate percentage			2.75%
Senior Notes [Member] | Senior Note Two [Member]
Stated interest rate percentage	6.625%

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Director [Member]	Common stock	Common stock Director [Member]	Additional Paid-in Capital	Additional Paid-in Capital Director [Member]	Retained Earnings [Member]	Treasury Stock
Beginning balance, shares outstanding at Dec. 31, 2019			17,855
Beginning Balance at Dec. 31, 2019	$ 226,569		$ 259		$ 242,147		$ 86,213	$ (102,050)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)	(4,197)						(4,197)
Isuuance of common stock, shares			27	9
Issuance of common stock from employee stock purchase plan	361	$ 142	$ 0		361	$ 142
Issuance of restricted common stock, shares			10
Issuance of restricted common stock	0		$ 0		0
Cancellation and retirement of restricted common stock, shares			(10)
Cancellation and surrender of restricted common stock	(234)		$ 0		(234)
Stock-based compensation expense	689				689
Dividends on common stock	(1,339)				(1,339)
Other, shares			18
Other	468				468
Ending balance, shares outstanding at Mar. 31, 2020			17,909
Ending Balance at Mar. 31, 2020	222,459		$ 259		242,234		82,016	(102,050)
Beginning balance, shares outstanding at Dec. 31, 2020			17,995
Beginning Balance at Dec. 31, 2020	240,502		$ 260		239,989		102,303	(102,050)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Isuuance of common stock, shares			18	5
Issuance of common stock from employee stock purchase plan	$ 479	$ 177	$ 1		478	$ 177
Exercise of stock options, shares	101		30
Exercise of stock options	$ (148)				(148)
Issuance of restricted common stock, shares			9
Issuance of restricted common stock	0		$ 0		0
Cancellation and retirement of restricted common stock, shares			(9)
Cancellation and surrender of restricted common stock	(347)		$ 0		(347)
Stock-based compensation expense	1,130				1,130
Dividends on common stock	(1,799)				(1,799)
Adjustments to Additional Paid in Capital, Other					(1,400)
Ending balance, shares outstanding at Mar. 31, 2021			18,048
Ending Balance at Mar. 31, 2021	251,503		$ 261		238,056		$ 115,236	$ (102,050)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Repurchase	$ (1,424)				$ (1,424)

XML

Basis of Presentation and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

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 funeral and cemetery services and merchandise in the United States. As of March 31, 2021, we operated 173 funeral homes in 26 states and 32 cemeteries in 12 states. Our operations are reported in two business segments: Funeral Home Operations, which currently account for approximately 75% of our revenue and Cemetery Operations, which currently account for approximately 25% of our revenue.

Our funeral home operations are principally service businesses that generate revenue from sales of burial and cremation services and related merchandise, such as caskets and urns. Funeral services include consultation, the removal and preparation of remains, the use of funeral home facilities for visitation and memorial services and transportation services. We provide funeral services and products on both an “atneed” (time of death) and “preneed” (planned prior to death) basis.

Our cemetery operations generate revenue primarily through sales of cemetery interment rights (primarily grave sites, lawn crypts, mausoleum spaces and niches), related cemetery merchandise (such as memorial markers, outer burial containers and monuments) and services (interments, inurnments and installation of cemetery merchandise). We provide cemetery services and products on both an atneed and preneed basis.

Principles of Consolidation and Interim Condensed Disclosures

Our unaudited consolidated financial statements include the Company and its subsidiaries. All intercompany balances and transactions have been eliminated. Our interim consolidated financial statements are unaudited but include all adjustments, which consist of normal, recurring accruals, that are necessary for a fair presentation of our financial position and results of operations as of and for the interim periods presented. Our unaudited consolidated financial statements have been prepared in a manner consistent with the accounting principles described in our Annual Report on Form 10-K for the year ended December 31, 2020 unless otherwise disclosed herein, and should be read in conjunction therewith.

Reclassifications

Certain reclassifications have been made to prior period amounts on our Consolidated Statements of Cash Flows related to the amortization of non-compete agreements and on our Statement of Changes in Stockholders Equity related to the issuance of common stock to conform to the current period financial statement presentation with no effect on our previously reported Consolidated Statements of Operations and Consolidated Balance Sheet.

Use of Estimates

The preparation of our Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses. On an ongoing basis, we evaluate our estimates and judgments, which include those related to the realization of our accounts receivable, valuation of goodwill, intangible assets, deferred tax assets and liabilities and depreciation of property and equipment. 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 revenue 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.

Cash and Cash Equivalents

We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Funeral and Cemetery Receivables

Our funeral receivables are recorded in Accounts receivable, net and primarily consist of amounts due for funeral services already performed.

Atneed cemetery receivables and preneed cemetery receivables with payments expected to be received within one year from the balance sheet date are recorded in Accounts receivable, net. Preneed cemetery receivables with payments expected to

be received beyond one year from the balance sheet date are recorded in Preneed cemetery receivables, net. Our cemetery receivables generally consist of preneed sales of cemetery interment rights and related products and services, which are typically financed through interest-bearing installment sales contracts, generally with terms of up to five years, with such interest income reflected as Other revenue. In substantially all cases, we receive an initial down payment at the time the contract is signed. 

For our funeral and atneed cemetery receivables, we have a collections policy where statements are sent to the customer at 30 days past due. Past due notification letters are sent at 45 days and continue until payment is received or the contract is placed with a third-party collections agency. For our preneed cemetery receivables, we have a collections policy where past due notification letters are sent to the customer beginning at 15 days past due and periodically thereafter until payment is received or the contract is cancelled.

Our allowance for credit losses reflects our best estimate of expected credit losses over the term of both our funeral and cemetery receivables. Our policy is to write off receivables when we have determined they will no longer be collectible. Write-offs are applied as a reduction to the allowance for credit losses and any recoveries of previous write-offs are netted against bad debt expense in the period recovered.

We determine our allowance for credit losses by using a loss-rate methodology, in which we assess our historical write-off of receivables against our total receivables over several years. From this historical loss-rate approach, we also consider the current and forecasted economic conditions expected to be in place over the life of our receivables. These estimates are impacted by a number of factors, including changes in the economy, demographics and competition in our local communities. We monitor our ongoing credit exposure through an active review of our customers’ receivables balance against contract terms and due dates. Our activities include timely performance of our accounts receivable reconciliations, assessment of our aging of receivables, dispute resolution and payment confirmation. We monitor any change in our historical write-off of receivables utilized in our loss-rate methodology and assess forecasted changes in market conditions within our credit reserve.

See Note 5 to the Consolidated Financial Statements herein for additional information related to our funeral and cemetery receivables.

Inventory

Inventory consists primarily of caskets, outer burial containers and cemetery monuments and markers and is recorded at the lower of its cost basis or net realizable value. Inventory is relieved using specific identification in fulfillment of performance obligations on our contracts.

Business Combinations

Tangible and intangible assets acquired and liabilities assumed are recorded at fair value and goodwill is recognized for any difference between the price of the acquisition and fair value. We recognize the assets acquired, the liabilities assumed and any non-controlling interest in the acquiree at the acquisition date, measured at the fair value as of that date. Acquisition related costs are recognized separately from the acquisition and are expensed as incurred. We customarily estimate related transaction costs known at closing. To the extent that information not available to us at the closing date subsequently becomes available during the allocation period, we may adjust goodwill, intangible assets, assets or liabilities associated with the acquisition.

During the three months ended March 31, 2020, we acquired one funeral home and cemetery combination business in Lafayette, California for $33.0 million in cash, of which $5.0 million was deposited in escrow in 2019 and $28.0 million was paid at closing in 2020. We acquired substantially all of the assets and assumed certain operating liabilities of these businesses.

Divested Operations

Prior to divesting a funeral home or cemetery, we first determine whether the sale of the net assets and activities (together referred to as a “set”) qualifies as a business. First, we perform a screen test to determine if the set is not a business. The principle of the screen is that if substantially all of the fair value of the gross assets sold resides in a single asset or group of similar assets, the set is not a business. If the screen is not met, we perform an assessment to determine if the set is a business by evaluating whether the set has both inputs and a substantive process that together significantly contribute to the ability to create outputs. When both inputs and a substantive process are present then the set is determined to be a business and we apply the guidance in Accounting Standards Codification (“ASC”) Topic 350 – Intangibles – Goodwill and Other to determine the accounting treatment of goodwill for that set (see discussion of Goodwill below). Goodwill is only allocated to the sale if the set is considered to be a business.

See Notes 3 and 4 to the Consolidated Financial Statements herein for additional information related to our divestitures.

Goodwill

The excess of the purchase price over the fair value of identifiable net assets of funeral home businesses and cemeteries acquired is recorded as goodwill. Goodwill has an indefinite life and is not subject to amortization. As such, we test goodwill for impairment on an annual basis as of August 31st each year. Under current guidance, we are permitted to first assess qualitative factors to determine whether it is more-likely-than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test.

Our intent is to perform a quantitative impairment test at least once every three years and perform a qualitative assessment during the remaining two years. In addition to our annual test, we assess the impairment of goodwill whenever events or changes in circumstances indicate that the carrying value of a reporting unit may be greater than fair value. Factors that could trigger an interim impairment review include, but are not limited to, significant negative industry or economic trends and significant adverse changes in the business climate, which may be indicated by a decline in our market capitalization or decline in operating results.

When we divest a portion of a reporting unit that constitutes a business in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), we allocate goodwill associated with that business to be included in the gain or loss on divestiture. The goodwill allocated is based on the relative fair values of the business being divested and the portion of the reporting unit that will be retained. Additionally, after each divestiture, we will test the goodwill remaining in the portion of the reporting unit to be retained for impairment using a qualitative assessment unless we deem a quantitative assessment to be appropriate to ensure the fair value of our reporting units is greater than their carrying value.

See Note 3 to the Consolidated Financial Statements included herein for additional information related to our goodwill.

Intangible Assets

Our intangible assets include tradenames resulting from acquisitions and are included in Intangible and other non-current assets, net on our Consolidated Balance Sheet. Our tradenames are considered to have an indefinite life and are not subject to amortization. As such, we test our intangible assets for impairment on an annual basis as of August 31st each year. Under current guidance, we are permitted to first assess qualitative factors to determine whether it is more-likely-than not that the fair value of the tradename is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test.

Our intent is to perform a quantitative impairment test at least once every three years and perform a qualitative assessment during the remaining two years. In addition to our annual test, we assess the impairment of intangible assets whenever certain events or changes in circumstances indicate that the carrying value of the intangible asset may be greater than the fair value. Factors that could trigger an interim impairment review include, but are not limited to, significant under-performance relative to historical or projected future operating results and significant negative industry or economic trends.

See Note 9 to the Consolidated Financial Statements included herein for additional information related to our intangible assets.

Preneed and Perpetual Care Trust Funds

Preneed sales generally require deposits to a trust or purchase of a third-party insurance product. We have established a variety of trusts in connection with funeral home and cemetery operations as required under applicable state laws. Such trusts include (i) preneed funeral trusts; (ii) preneed cemetery merchandise and service trusts; and (iii) cemetery perpetual care trusts.

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.

Our trust fund assets are reflected in our financial statements as Preneed cemetery trust investments, Preneed funeral trust investments and Cemetery perpetual care trust investments. 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 fair value of our trust fund assets are accounted for as Collateralized Financing Entities (“CFEs”) in ASC Topic 810. The accounting guidance for CFEs allows companies to elect to measure both the financial assets and financial liabilities using the more observable of the fair value of the financial assets or fair value of the financial liabilities. Pursuant to this guidance, we have determined the fair value of the financial assets of the trusts are more observable and we first measure those financial assets at fair value. Our fair value of the financial liabilities mirror the fair value of the financial assets, in accordance with the ASC. Any changes in fair value are recognized in earnings.

In accordance with ASC Topic 326, we present our credit losses for fixed income securities as an allowance rather than as a write-down on the fixed income securities we do not intend to sell and it is likely that we will not be required to sell prior to their anticipated recovery.

In accordance with respective state laws, we are required to deposit a specified amount into perpetual and memorial care trust funds for each interment right and certain memorials sold. Income from the trust funds is distributed to us and used to provide for the care and maintenance of 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 the 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 the majority of our funeral and cemetery trust funds.

See Notes 6 and 7 to the Consolidated Financial Statements herein for additional information related to our preneed and perpetual care trust funds.

Fair Value Measurements

We measure the securities held by our funeral merchandise and service, cemetery merchandise and service, and cemetery perpetual care trusts at fair value on a recurring basis in accordance with ASC Topic 820. This guidance defines fair value as the price that would be received in 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). The guidance establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.

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. 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 not elected to measure any additional financial instruments and certain other items at fair value that are not currently required to be measured at fair value.

See Notes 6 and 8 to the Consolidated Financial Statements herein for additional required disclosures related to our fair value measurement of our financial assets and liabilities.

Capitalized Commissions on Preneed Contracts

We capitalize sales commissions and other direct selling costs related to preneed cemetery merchandise and services and preneed funeral trust contracts as these costs are incremental and recoverable costs of obtaining a contract with a customer. Our capitalized commissions on preneed contracts are amortized on a straight-line basis over the average maturity period of ten years for our preneed funeral trust contracts and eight years for our preneed cemetery merchandise and services contracts.

The selling costs related to the sales of cemetery interment rights, which include real property and other costs related to cemetery development activities, continue to be expensed using the specific identification method in the period in which the sale of the cemetery interment right is recognized as revenue. The selling costs related to preneed funeral insurance contracts continue to be expensed in the period incurred as these contracts are not included on our Consolidated Balance Sheet.

See Note 9 to the Consolidated Financial Statements herein for additional information related to our capitalized commissions on preneed contracts.

Property, Plant and Equipment

Property, plant and equipment (including equipment under finance leases) are stated at cost. The costs of ordinary maintenance and repairs are charged to operations as incurred, while renewals and major replacements that extend the useful economic life of the asset are capitalized. Depreciation of property, plant and equipment (including equipment under finance leases) is computed based on the straight-line method over the estimated useful lives of the assets.

Long-lived assets, such as property, plant and equipment subject to depreciation and amortization, are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC Topic 360 – Property, Plant and Equipment.

Property, plant and equipment is comprised of the following (in thousands):

	December 31, 2020		March 31, 2021
Land	$	82,615	$	81,981
Buildings and improvements	240,567		240,988
Furniture, equipment and automobiles	91,302		91,481
Property, plant and equipment, at cost	414,484		414,450
Less: accumulated depreciation	(145,433)		(147,395)
Property, plant and equipment, net	$	269,051	$	267,055

During the three months ended March 31, 2021, we acquired land for $0.4 million. We also divested two funeral homes that had a carrying value of property, plant and equipment of $1.5 million, which was included in the gain on sale of divestitures and recorded in Net loss (gain) on divestitures and impairment charges on our Consolidated Statements of Operations, described in Note 4 to the Consolidated Financial Statements included herein.

Our growth and maintenance capital expenditures totaled $2.7 million and $4.3 million for the three months ended March 31, 2020 and 2021, respectively, for property, plant, equipment and cemetery development. In addition, we recorded depreciation expense of $3.6 million and $3.4 million for the three months ended March 31, 2020 and 2021, respectively.

Cemetery Property

When we acquire a cemetery, we utilize an internal and external approach to determine the fair value of the cemetery property. From an external perspective, we obtain an accredited appraisal to provide reasonable assurance for property existence, property availability (unrestricted) for development, property lines, available spaces to sell, identifiable obstacles or easements and general valuation inclusive of known variables in that market. From an internal perspective, we conduct a detailed analysis of the acquired cemetery property using other cemeteries in our portfolio as a benchmark. This provides the added benefit of relevant data that is not available to third party appraisers. Through this thorough internal process, the Company is able to identify viable costs of property based on historical experience, particular markets and demographics, reasonable margins, practical retail prices and park infrastructure and condition.

Cemetery property was $101.1 million at both December 31, 2020 and March 31, 2021, net of accumulated amortization of $46.6 million and $48.1 million, respectively. When cemetery property is sold, the value of the cemetery property (interment right costs) is expensed as amortization using the specific identification method in the period in which the sale of the interment right is recognized as revenue. We recorded amortization expense for cemetery interment rights of $0.9 million and $1.5 million for the three months ended March 31, 2020 and 2021, respectively.

Leases

We have operating and finance leases. We lease certain office facilities, certain funeral homes and equipment under operating leases with original terms ranging from one to nineteen years. Many leases include one or more options to renew, some of which include options to extend the leases for up to 26 years. We lease certain funeral homes under finance leases with original terms ranging from ten to forty years. We do not have lease agreements with residual value guarantees, sale-leaseback terms, material restrictive covenants or related parties. We do not have any material sublease arrangements.

We determine if an arrangement is a lease at inception based on the facts and circumstances of the agreement. A right-of-use (“ROU”) asset represents our right to use the underlying asset for the lease term and the lease liability represents our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized on our Consolidated Balance Sheet at the lease commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The lease terms used to calculate the ROU asset and related lease liability include options to extend the lease when it is reasonably certain that we will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense, while the expense for finance leases is recognized as depreciation expense and interest expense using the accelerated interest method of recognition. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or liabilities. These are expensed as incurred and recorded as variable lease expense. We have real estate lease agreements which require payments for lease and non-lease components and account for these as a single lease component. Leases with an initial term of 12 months or less, that do not include an option to renew the underlying asset, are not recorded on our Consolidated Balance Sheet and expense is recognized on a straight-line basis over the lease term.

Operating lease ROU assets are included in Operating lease right-of-use assets and operating lease liabilities are included in Current portion of operating lease obligations and Obligations under operating leases, net of current portion on our

Consolidated Balance Sheet. Finance lease ROU assets are included in Property, plant and equipment, net and finance lease liabilities are included in Current portion of finance lease obligations and Obligations under finance leases, net of current portion on our Consolidated Balance Sheet.

See Notes 13 to the Consolidated Financial Statements included herein for additional information related to our leases.

Equity Plans and Stock-Based Compensation

We have equity-based employee and director compensation plans under which we have granted stock awards, stock options and performance awards. We also have an employee stock purchase plan (the “ESPP”). We recognize compensation expense in an amount equal to the fair value of the stock-based awards expected to vest or to be purchased over the requisite service period. We recognize the effect of forfeitures in compensation cost when they occur and any previously recognized compensation cost for an award is reversed in the period that the award is forfeited.

Fair value is determined on the date of the grant. The fair value of restricted stock is determined using the stock price on the grant date. The fair value of options or awards containing options is determined using the Black-Scholes valuation model or the Monte-Carlo simulation pricing model. The fair value of the performance awards related to market performance conditions is determined using a Monte-Carlo simulation pricing model. The fair value of the ESPP is determined based on the discount element offered to employees and the embedded option element, which is determined using an option calculation model.

We recognize all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) as income tax benefit or expense in the income statement. We treat the tax effects of exercised or vested awards as discrete items in the reporting period in which they occur. Excess tax benefits or deficiencies related to share-based payments are included in operating cash flows on the Consolidated Statements of Cash Flows.

See Note 14 to the Consolidated Financial Statements included herein for additional information related to our equity plans and stock-based compensation.

Revenue Recognition

Funeral and Cemetery Operations Revenue is recognized when control of the merchandise or services is transferred to the customer. Our performance obligations include the delivery of funeral and cemetery merchandise and services and cemetery property interment rights. Control transfers when merchandise is delivered or services are performed. For cemetery property interment rights, control transfers to the customer when the property is developed and the interment right has been sold and can no longer be marketed or sold to another customer. Sales taxes collected are recognized on a net basis in our consolidated financial statements. On our atneed contracts, we generally deliver the merchandise and perform the services at the time of need.

Memorial services frequently include performance obligations to direct the service, provide facilities and motor vehicles, catering, flowers, and stationary products. All other performance obligations on these contracts, including arrangement, removal, preparation, embalming, cremation, interment, and delivery of urns and caskets and related memorialization merchandise are fulfilled at the time of need. Personalized marker merchandise and marker installation services sold on atneed contracts are recognized when control is transferred to the customer, generally when the marker is delivered and installed in the cemetery.

Some of our contracts with customers include multiple performance obligations. For these contracts, we allocate the transaction price to each performance obligation based on its relative standalone selling price, which is based on prices charged to customers per our general price list. Packages for service and ancillary items are offered to help the customer make decisions during emotional and stressful times. Package discounts are reflected net in Revenue. We recognize revenue when the merchandise is transferred or the service is performed, in satisfaction of the corresponding performance obligation. Sales taxes collected are recognized on a net basis in our Consolidated Financial Statements.

Ancillary funeral service revenue, which is recorded in Other revenue, represents revenue from our flower shop, pet cremation and online cremation businesses.

The earnings from our preneed trust investments, as well as trust management fees charged by our wholly-owned registered investment advisory firm (“CSV RIA”) are recorded in Other revenue. As of March 31, 2021, CSV RIA provided investment management and advisory services to approximately 80% 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.

Balances due on undelivered preneed funeral trust contracts have been reclassified to reduce Deferred preneed funeral revenue on our Consolidated Balance Sheet of $8.2 million and $8.1 million at December 31, 2020 and March 31, 2021, respectively. As these performance obligations are to be completed after the date of death, we cannot quantify the recognition of revenue in future periods. However, we estimate an average maturity period of ten years for preneed funeral contracts.

Balances due from customers on delivered preneed cemetery contracts are included in Accounts receivable, net and Preneed cemetery receivables, net on our Consolidated Balance Sheet. Balances due on undelivered preneed cemetery contracts have been reclassified to reduce Deferred preneed cemetery revenue on our Consolidated Balance Sheet. The transaction price allocated to preneed merchandise and service performance obligations that were unfulfilled were $7.9 million and $8.5 million at December 31, 2020 and March 31, 2021, respectively. As these performance obligations are to be completed after the date of death, we cannot quantify the recognition of revenue in future periods. However, we estimate an average maturity period of eight years for preneed cemetery contracts.

See Note 16 to the Consolidated Financial Statements herein for additional information related to revenue.

Income Taxes

We and our subsidiaries file a consolidated U. S. federal income tax return, separate income tax returns in 15 states in which we operate and combined or unitary income tax returns in 14 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 classify our deferred tax liabilities and assets as non-current on our Consolidated Balance Sheet.

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 the financial statements; provide certain disclosures of uncertain tax matters; and specify how reserves for uncertain tax positions should be classified on our Consolidated Balance Sheet.

The Consolidated Appropriations Act was signed into law on December 27, 2020. This Act included several tax provisions directly benefiting individual and corporate taxpayers. The primary benefit in this legislation is a temporary allowance for full deduction for business meals paid or incurred between December 31, 2020 and January 1, 2023.

We filed carryback refund claims for the 2018 and 2019 tax years as allowed by the legislative changes included in the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was enacted March 27, 2020. As a result of requesting a tax refund in excess of $5 million, we must receive Joint Committee approval and undergo an audit for the tax year ending December 31, 2018. This audit is currently in progress. In 2020, the 2018 tax return was amended to take full advantage of the CARES Act legislative benefits resulting in additional losses that increase the amount of our carryback refund claim. The majority of the net operating losses generated in 2018 are the result of filing non-automatic accounting method changes relating to the recognition of revenue from our cemetery property and merchandise and services sales. Due to the uncertainty of receiving Internal Revenue Service (“IRS”) approval regarding our non-automatic accounting method changes, a reserve has been recorded against the benefit derived from this carrying back that the net operating losses generated. At both December 31, 2020 and March 31, 2021, the reserve for uncertain tax positions was $3.7 million.

Income tax expense during interim periods is based on our forecasted annual effective tax rate plus any discrete items, which are recorded in the period in which they occur. Discrete items include, but are not limited to, such events as changes in estimates due to finalization of income tax returns, tax audit settlements, tax effects of exercised or vested stock-based awards and increases or decreases in valuation allowances on deferred tax assets.

Our income tax benefit was $2.2 million for the three months ended March 31, 2020 compared to an income tax expense of $5.6 million for the three months ended March 31, 2021. Our operating tax rate before discrete items was 33.6% and 31.0% for the three months ended March 31, 2020 and 2021, respectively.

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.

Share-based awards that contain non-forfeitable 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 attributable to common stockholders to exclude outstanding unvested restricted stock awards, using the two-class method, in both the basic and diluted weighted average shares outstanding calculation. 

See Note 15 to the Consolidated Financial Statements included herein related to the computation of earnings per share.

Subsequent Events

We have evaluated events and transactions during the period subsequent to March 31, 2021 through the date the financial statements were issued for potential recognition or disclosure in the accompanying financial statements covered by this report.

See Note 18 to the Consolidated Financial Statements included herein for additional information related to our subsequent events.

XML

Recently Issued Accounting Standards	3 Months Ended
	Mar. 31, 2021
Accounting Changes and Error Corrections [Abstract]
RECENTLY ISSUED ACCOUNTING STANDARDS	RECENTLY ISSUED ACCOUNTING STANDARDSAccounting Pronouncements Not Yet Adopted

XML

Goodwill (Notes)

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

GOODWILL

The following table presents changes in goodwill in the accompanying Consolidated Balance Sheet (in thousands):

	December 31, 2020		March 31, 2021
Goodwill at the beginning of the period	$	398,292	$	392,978
Net increase in goodwill related to acquisitions	14,054		—
Decrease in goodwill related to divestitures	(5,736)		(1,006)
Decrease in goodwill related to impairments	(13,632)		—
Goodwill at the end of the period	$	392,978	$	391,972

XML

DIVESTED OPERATIONS

3 Months Ended

Mar. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

DIVESTED OPERATIONS

DIVESTED OPERATIONS

During the three months ended March 31, 2021, we sold two funeral homes for $2.8 million. During the three months ended March 31, 2020, we did not sell any funeral homes or cemeteries.

The operating results of these divested funeral homes are reflected in our Consolidated Statements of Operations as shown in the table below (in thousands):

	Three months ended March 31,
	2020		2021
Revenue	$	—	$	282
Operating income	—		60
Gain on divestitures(1)	—		308
Income tax expense	—		(114)
Net income from divested operations, after tax	$	—	$	254

(1) Gain on divestitures is recorded in Net loss (gain) on divestitures and impairment charges on our Consolidated Statements of Operations.

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Trust Investments

3 Months Ended

Mar. 31, 2021

Preneed Trust Investments [Abstract]

Trust Investments

TRUST INVESTMENTS

Preneed trust investments represent trust fund assets that we are generally permitted to withdraw as the services and merchandise are provided to customers. Preneed funeral and cemetery contracts are secured by payments from customers, less amounts not required by law to be deposited into trust. These earnings are recognized in Other revenue on our Consolidated Statements of Operations, when a service is performed or merchandise is delivered. Trust management fees charged by CSV RIA are included as revenue in the period in which they are earned. Our investments are diversified across multiple industry segments using a balanced allocation strategy to minimize long-term risk. We do not intend to sell and it is likely that we will not be required to sell the securities prior to their anticipated recovery.

Cemetery perpetual care trust investments represent a portion of the proceeds from the sale of cemetery property interment rights which we are required by various state laws to deposit into perpetual care trust funds. The income earned from these perpetual care trusts offsets maintenance expenses for cemetery property and memorials. This trust fund income is recognized in Other revenue.

Where quoted prices are available in an active market, investments held by the trusts are classified as Level 1 investments pursuant to the three-level valuation hierarchy. Our Level 1 investments include cash, U.S. treasury debt, common stock and equity mutual funds. Where quoted market prices are not available for the specific security, then fair values are estimated by using quoted prices of similar securities in active markets or inputs other than quoted prices that can corroborate observable market data. These investments are fixed income securities, including foreign debt, corporate debt, preferred stocks, mortgage-backed securities and fixed income mutual funds and other investments, all of which are classified within Level 2 of the valuation hierarchy. We review and update our fair value hierarchy classifications quarterly. See Note 8 to the Consolidated Financial Statements included herein for further information of the fair value measurement.

Changes in the fair value of our trust fund assets (Preneed funeral, cemetery and perpetual care trust investments) are offset by changes in the fair value of our trust fund liabilities (Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus) and reflected in Other, net. There is no impact on earnings until such time the services are performed or the merchandise is delivered, causing the contract to be withdrawn from the trust in accordance with state regulations and the gain or loss is allocated to the contract.

For fixed income securities in an unrealized loss position, we first assess whether we intend to sell or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For fixed income securities that do not meet the aforementioned criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If our assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis.

We rely on our trust investments to provide funding for the various contractual obligations that arise upon maturity of the underlying preneed contracts. Because of the long-term relationship between the establishment of trust investments and the required performance of the underlying contractual obligations, the impact of current market conditions that may exist at any given time is not necessarily indicative of our ability to generate profit on our future performance obligations.

Preneed Cemetery Trust Investments

The components of Preneed cemetery trust investments on our Consolidated Balance Sheet are as follows (in thousands):

	December 31, 2020		March 31, 2021
Preneed cemetery trust investments, at market value	$	89,081	$	94,882
Less: allowance for contract cancellation	(2,477)		(2,519)
Preneed cemetery trust investments	$	86,604	$	92,363

The cost and market values associated with preneed cemetery trust investments at March 31, 2021 are detailed below (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	1,464	$	—	$	—	$	1,464
Fixed income securities:
Foreign debt	2	15,996		2,244		(620)		17,620
Corporate debt	2	14,509		1,849		(91)		16,267
Preferred stock	2	11,922		689		(360)		12,251
Mortgage-backed securities	2	—		—		—		—
Common stock	1	31,925		7,912		(3,508)		36,329
Mutual funds:
Equity	1	27		1		—		28
Fixed Income	2	8,110		1,729		(137)		9,702
Trust securities		$	83,953	$	14,424	$	(4,716)	$	93,661
Accrued investment income		$	1,221					$	1,221
Preneed cemetery trust investments								$	94,882
Market value as a percentage of cost								111.6		%

The estimated maturities of the fixed income securities (excluding mutual funds) included above are as follows (in thousands):

Due in one year or less	$	—
Due in one to five years	13,602
Due in five to ten years	8,505
Thereafter	24,031
Total fixed income securities	$	46,138

The cost and market values associated with preneed cemetery trust investments at December 31, 2020 are detailed below (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	1,859	$	—	$	—	$	1,859
Fixed income securities:
Foreign debt	2	15,953		2,083		(702)		17,334
Corporate debt	2	14,856		1,820		(358)		16,318
Preferred stock	2	11,886		980		(336)		12,530
Mortgage-backed securities	2	272		—		(159)		113
Common stock	1	30,253		7,642		(6,601)		31,294
Mutual funds:
Fixed income	2	7,494		1,331		(185)		8,640
Trust Securities		$	82,573	$	13,856	$	(8,341)	$	88,088
Accrued investment income		$	993					$	993
Preneed cemetery trust investments								$	89,081
Market value as a percentage of cost								106.7		%

The following table summarized our fixed income securities (excluding mutual funds) within our preneed cemetery trust investments in an unrealized loss position at March 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	March 31, 2021
	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	$	2,590	$	(114)	$	509	$	(506)	$	3,099	$	(620)
Corporate debt	735		(9)		682		(82)		1,417		(91)
Preferred stock	3,912		(324)		837		(36)		4,749		(360)
Total fixed income securities with an unrealized loss	$	7,237	$	(447)	$	2,028	$	(624)	$	9,265	$	(1,071)

The following table summarized our fixed income securities (excluding mutual funds) within our preneed cemetery trust investments in an unrealized loss position at December 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	December 31, 2020
	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	$	2,517	$	(57)	$	371	$	(645)	$	2,888	$	(702)
Corporate debt	784		(99)		542		(259)		1,326		(358)
Preferred stock	709		(118)		4,049		(218)		4,758		(336)
Mortgage-backed securities	—		—		112		(159)		112		(159)
Total fixed income securities with an unrealized loss	$	4,010	$	(274)	$	5,074	$	(1,281)	$	9,084	$	(1,555)

Preneed cemetery trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Investment income	$	319	$	467
Realized gains	1,916		4,092
Realized losses	(1,372)		(2,518)
Unrealized gains (losses), net	(16,305)		9,708
Expenses and taxes	(187)		(327)
Net change in deferred preneed cemetery receipts held in trust	15,629		(11,422)
	$	—	$	—

Purchases and sales of investments in the preneed cemetery trusts are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Purchases	$	(18,857)	$	(8,411)
Sales	13,231		8,049

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 payments from customers, less retained amounts not required to be deposited into trust.

The components of Preneed funeral trust investments on our Consolidated Balance Sheet are as follows (in thousands):

	December 31, 2020		March 31, 2021
Preneed funeral trust investments, at market value	$	104,166	$	108,131
Less: allowance for contract cancellation	(2,931)		(2,930)
Preneed funeral trust investments	$	101,235	$	105,201

The cost and market values associated with preneed funeral trust investments at March 31, 2021 are detailed below (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	18,119	$	—	$	—	$	18,119
Fixed income securities:
U.S treasury debt	1	816		5		—		821
Foreign debt	2	14,959		2,142		(551)		16,550
Corporate debt	2	12,826		1,639		(87)		14,378
Preferred stock	2	10,816		637		(340)		11,113
Common stock	1	29,618		7,546		(3,120)		34,044
Mutual funds:
Equity	1	26		1		—		27
Fixed income	2	6,600		1,534		(87)		8,047
Other investments	2	3,901		—		—		3,901
Trust securities		$	97,681	$	13,504	$	(4,185)	$	107,000
Accrued investment income		$	1,131					$	1,131
Preneed funeral trust investments								$	108,131
Market value as a percentage of cost								109.5		%

The estimated maturities of the fixed income securities (excluding mutual funds) included above are as follows (in thousands):

Due in one year or less	$	821
Due in one to five years	12,143
Due in five to ten years	7,855
Thereafter	22,043
Total fixed income securities	$	42,862

The cost and market values associated with preneed funeral trust investments at December 31, 2020 are detailed below (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	18,478	$	—	$	—	$	18,478
Fixed income securities:
U.S. treasury debt	1	819		6		—		825
Foreign debt	2	15,144		2,018		(634)		16,528
Corporate debt	2	13,292		1,638		(310)		14,620
Preferred stock	2	10,944		900		(298)		11,546
Mortgage-backed securities	2	293		1		(155)		139
Common stock	1	28,327		7,364		(6,052)		29,639
Mutual funds:
Fixed income	2	6,475		1,198		(121)		7,552
Other investments	2	3,928		—		—		3,928
Trust securities		$	97,700	$	13,125	$	(7,570)	$	103,255
Accrued investment income		$	911					$	911
Preneed funeral trust investments								$	104,166
Market value as a percentage of cost								105.7		%

The following table summarized our fixed income securities (excluding mutual funds) within our preneed funeral trust investment in an unrealized loss position at March 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	March 31, 2021
	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	$	2,270	$	(100)	$	456	$	(451)	$	2,726	$	(551)
Corporate debt	705		(9)		654		(78)		1,359		(87)
Preferred stock	3,750		(311)		599		(29)		4,349		(340)
Total fixed income securities with an unrealized loss	$	6,725	$	(420)	$	1,709	$	(558)	$	8,434	$	(978)

The following table summarized our fixed income securities (excluding mutual funds) within our preneed funeral trust investment in an unrealized loss position at December 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	December 31, 2020
	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	$	2,225	$	(55)	$	337	$	(579)	$	2,562	$	(634)
Corporate debt	763		(96)		528		(214)		1,291		(310)
Preferred stock	506		(87)		3,942		(211)		4,448		(298)
Mortgage-backed securities	—		—		111		(155)		111		(155)
Total fixed income securities with an unrealized loss	$	3,494	$	(238)	$	4,918	$	(1,159)	$	8,412	$	(1,397)

Preneed funeral trust investment security transactions recorded in Other, net on the Consolidated Statements of Operations are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Investment income	$	258	$	369
Realized gains	2,551		3,871
Realized losses	(1,129)		(2,368)
Unrealized gains (losses), net	(15,274)		9,319
Expenses and taxes	(97)		(196)
Net change in deferred preneed funeral receipts held in trust	13,691		(10,995)
	$	—	$	—

Purchases and sales of investments in the preneed funeral trusts are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Purchases	$	(18,538)	$	(7,628)
Sales	15,968		7,524

Cemetery Perpetual Care Trust Investments

Care trusts’ corpus on our Consolidated Balance Sheet represent the corpus of those trusts plus undistributed income. The components of Care trusts’ corpus are as follows (in thousands):

	December 31, 2020		March 31, 2021
Cemetery perpetual care trust investments, at market value	$	70,828	$	75,815
Obligations due from trust	(1,121)		(455)
Care trusts’ corpus	$	69,707	$	75,360

The following table reflects the cost and fair market values associated with the trust investments held in perpetual care trust funds at March 31, 2021 (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	528	$	—	$	—	$	528
Fixed income securities:
Foreign debt	2	12,642		1,775		(508)		13,909
Corporate debt	2	11,525		1,540		(69)		12,996
Preferred stock	2	10,518		558		(299)		10,777
Common stock	1	25,151		6,436		(2,945)		28,642
Mutual funds:
Equity	1	20		1				21
Fixed Income	2	6,739		1,374		(164)		7,949
Trust securities		$	67,123	$	11,684	$	(3,985)	$	74,822
Accrued investment income		$	993					$	993
Cemetery perpetual care investments								$	75,815
Market value as a percentage of cost								111.5		%

The estimated maturities of the fixed income securities (excluding mutual funds) included above are as follows (in thousands):

Due in one year or less	$	—
Due in one to five years	10,149
Due in five to ten years	7,216
Thereafter	20,317
Total fixed income securities	$	37,682

The following table reflects the cost and fair market values associated with the trust investments held in perpetual care trust funds at December 31, 2020 (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	686	$	—	$	—	$	686
Fixed income securities:
Foreign debt	2	12,539		1,641		(582)		13,598
Corporate debt	2	11,684		1,506		(240)		12,950
Preferred stock	2	10,444		819		(355)		10,908
Mortgage-backed securities	2	206		—		(121)		85
Common stock	1	23,662		6,108		(5,255)		24,515
Mutual funds:
Fixed income	2	6,444		1,054		(220)		7,278
Trust securities		$	65,665	$	11,128	$	(6,773)	$	70,020
Accrued investment income		$	808					$	808
Cemetery perpetual care investments								$	70,828
Market value as a percentage of cost								106.6		%

The following table summarized our fixed income securities (excluding mutual funds) within our perpetual care trust investment in an unrealized loss position at March 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	March 31, 2021
	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	$	1,800	$	(79)	$	430	$	(429)	$	2,230	$	(508)
Corporate debt	559		(7)		519		(62)		1,078		(69)
Preferred stock	2,973		(246)		1,318		(53)		4,291		(299)
Total fixed income securities with an unrealized loss	$	5,332	$	(332)	$	2,267	$	(544)	$	7,599	$	(876)

The following table summarized our fixed income securities (excluding mutual funds) within our perpetual care trust investment in an unrealized loss position at December 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	December 31, 2020
	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	$	1,728	$	(43)	$	312	$	(539)	$	2,040	$	(582)
Corporate debt	592		(74)		410		(166)		1,002		(240)
Preferred stock	1,142		(191)		3,060		(164)		4,202		(355)
Mortgage-backed securities	—		—		85		(121)		85		(121)
Total fixed income securities with an unrealized loss	$	3,462	$	(308)	$	3,867	$	(990)	$	7,329	$	(1,298)

Perpetual care trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Realized gains	$	709	$	691
Realized losses	(679)		(420)
Unrealized gains (losses), net	(13,525)		7,699
Net change in Care trusts’ corpus	13,495		(7,970)
Total	$	—	$	—

Perpetual care trust investment security transactions recorded in Other revenue on our Consolidated Statements of Operations are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Investment income	$	1,405	$	2,513
Realized losses, net	(36)		(138)
Total	$	1,369	$	2,375

Purchases and sales of investments in the perpetual care trusts are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Purchases	$	(14,612)	$	(6,137)
Sales	12,694		5,956

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Receivables

3 Months Ended

Mar. 31, 2021

Preneed Cemetery Receivables [Abstract]

Receivables

RECEIVABLES

Accounts Receivable

Accounts receivable is comprised of the following (in thousands):

	March 31, 2021
	Funeral		Cemetery		Corporate		Total
Trade and financed receivables	$	9,827	$	12,451	$	—	$	22,278
Other receivables	426		2,769		1,395		4,590
Allowance for credit losses	(284)		(999)		—		(1,283)
Accounts receivable, net	$	9,969	$	14,221	$	1,395	$	25,585

	December 31, 2020
	Funeral		Cemetery		Corporate		Total
Trade and financed receivables	$	11,448	$	12,230	$	—	$	23,678
Other receivables	367		2,144		201		2,712
Allowance for credit losses	(327)		(960)		—		(1,287)
Accounts receivable, net	$	11,488	$	13,414	$	201	$	25,103

Other receivables include supplier rebates, commissions due from third party insurance companies, perpetual care income receivables and proceeds due from an insurance claim. We do not provide an allowance for credit losses for these receivables as we have historically not had any collectability issues nor do we expect any in the foreseeable future.

The following table summarizes the activity in our allowance for credit losses by portfolio segment (in thousands):

	January 1, 2021		Provision for Credit Losses		Write Offs		Recoveries		March 31, 2021
Trade and financed receivables:
Funeral	$	(327)	$	(203)	$	553	$	(307)	$	(284)
Cemetery	(960)		(139)		100		—		(999)
Total allowance for credit losses on Trade and financed receivables	$	(1,287)	$	(342)	$	653	$	(307)	$	(1,283)

Preneed Cemetery Receivables

Our preneed cemetery receivables are comprised of the following (in thousands):

	December 31, 2020		March 31, 2021
Cemetery interment rights	$	36,696	$	38,108
Cemetery merchandise and services	10,526		10,789
Cemetery financed receivables	$	47,222	$	48,897

The components of our preneed cemetery receivables are as follows (in thousands):

	December 31, 2020		March 31, 2021
Preneed cemetery receivables	$	47,222	$	48,897
Less: unearned finance charges	(4,348)		(4,508)
Preneed cemetery receivables, at amortized cost	$	42,874	$	44,389
Less: allowance for credit losses	(2,604)		(2,864)
Less: balances due on undelivered cemetery preneed contracts	(7,919)		(8,540)
Less: amounts in accounts receivable	(11,270)		(11,452)
Preneed cemetery receivables, net	$	21,081	$	21,533

The following table summarizes the activity in our allowance for credit losses for Preneed cemetery receivables, net (in thousands):

	January 1, 2021		Provision for Credit Losses		Write Offs		March 31, 2021
Total allowance for credit losses on Preneed cemetery receivables, net	$	(1,644)	$	(246)	$	25	$	(1,865)

The amortized cost basis of our preneed cemetery receivables by year of origination as of March 31, 2021 is as follows (in thousands):

	2021		2020		2019		2018		2017		Prior		Total
Total preneed cemetery receivables, at amortized cost	$	7,913	$	16,490	$	9,585	$	5,118	$	2,814	$	2,469	$	44,389

The aging of past due preneed cemetery receivables as of March 31, 2021 is as follows (in thousands):

	31-60 Past Due		61-90 Past Due		91-120 Past Due		>120 Past Due		Total Past Due		Current		Total
Recognized revenue	$	623	$	404	$	194	$	1,990	$	3,211	$	32,953	$	36,164
Deferred revenue	184		140		46		600		970		11,763		12,733
Total contracts	$	807	$	544	$	240	$	2,590	$	4,181	$	44,716	$	48,897

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Receivables from Preneed Trusts

3 Months Ended

Mar. 31, 2021

Receivables From Preneed Trusts [Abstract]

RECEIVABLES FROM PRENEED TRUSTS

RECEIVABLES FROM PRENEED TRUSTS

Our receivables from preneed trusts represent assets in trusts which are controlled and operated by third parties in which we do not have a controlling financial interest (less than 50%) in the trust assets. We account for these investments at cost. Receivables from preneed trusts are as follows (in thousands): 

	December 31, 2020		March 31, 2021
Preneed trust funds, at cost	$	17,365	$	17,502
Less: allowance for contract cancellation	(521)		(526)
Receivables from preneed trusts, net	$	16,844	$	16,976

The following summary reflects the composition of the assets held in trust and controlled by third parties to satisfy our future obligations under preneed arrangements related to the preceding contracts at December 31, 2020 and March 31, 2021. The cost basis includes reinvested interest and dividends that have been earned on the trust assets. Fair value includes unrealized gains and losses on trust assets.

The composition of the preneed trust funds at March 31, 2021 is as follows (in thousands):

	Historical Cost Basis		Fair Value
Cash and cash equivalents	$	4,697	$	4,697
Fixed income investments	10,473		10,473
Mutual funds and common stocks	2,327		2,406
Annuities	5		5
Total	$	17,502	$	17,581

The composition of the preneed trust funds at December 31, 2020 is as follows (in thousands):

	Historical Cost Basis		Fair Value
Cash and cash equivalents	$	4,604	$	4,604
Fixed income investments	10,355		10,355
Mutual funds and common stocks	2,402		2,569
Annuities	4		4
Total	$	17,365	$	17,532

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Fair Value Measurements

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

We evaluated our financial assets and liabilities for those financial assets and liabilities that met the criteria of the disclosure requirements and fair value framework. The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate the fair values of those instruments due to the short-term nature of the instruments. The fair values of our receivables on preneed cemetery contracts are impracticable to estimate because of the lack of a trading market and the diverse number of individual contracts with varying terms. Our acquisition debt and Credit Facility (as defined in Note 10) and Senior Notes (as defined in Note 12) are classified within Level 2 of the Fair Value Measurements hierarchy.

At March 31, 2021, the carrying value and fair value of our Credit Facility was $28.3 million. We believe that our Credit Facility bears interest at a rate that approximates prevailing market rates for instruments with similar characteristics and therefore, the carrying value of our Credit Facility approximates fair value. We estimate the fair value of our acquisition debt utilizing an income approach, which uses a present value calculation to discount payments based on current market rates as of the reporting date. At March 31, 2021, the carrying value of our acquisition debt was $5.4 million, which approximated its fair value. The fair value of our Senior Notes was approximately $417.6 million at March 31, 2021 based on the last traded or broker quoted price.

At December 31, 2020 and March 31, 2021, we did not have any assets that had fair values determined by Level 3 inputs and no liabilities measured at fair value.

We identified investments in fixed income securities, common stock and mutual funds presented within the preneed and perpetual care trust investments categories on our Consolidated Balance Sheet as having met the criteria for fair value measurement. Our receivables from preneed trusts represent assets in trusts which are controlled and operated by third parties in which we do not have a controlling financial interest (less than 50%) in the trust assets. We account for these investments at cost.

See Notes 6 and 7 to our Consolidated Financial Statements herein for the fair value hierarchy levels of our trust investments.

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Intangible and Other Non-Current Assets

3 Months Ended

Mar. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Intangible and Other Non-Current Assets

INTANGIBLE AND OTHER NON-CURRENT ASSETS

Intangible and other non-current assets are as follows (in thousands):

	December 31, 2020		March 31, 2021
Tradenames	$	23,565	$	23,565
Prepaid agreements not-to-compete, net of accumulated amortization of $3,193 and $3,361, respectively	2,785		2,676
Capitalized commissions on preneed contracts, net of accumulated amortization of $1,594 and $1,746, respectively	3,141		3,240
Other	51		21
Intangible and other non-current assets, net	$	29,542	$	29,502

Tradenames

Our tradenames have indefinite lives and therefore are not amortized.

Prepaid Agreements

Prepaid agreements not-to-compete are amortized over the term of the respective agreements, ranging generally from one to ten years. Amortization expense was $187,000 and $168,000 for the three months ended March 31, 2020 and 2021, respectively.

Capitalized Commissions

We capitalize our selling costs related to preneed cemetery merchandise and services and preneed funeral trust contracts. These costs are amortized on a straight-line basis over the average maturity period for our preneed cemetery merchandise and services contracts and preneed funeral trust contracts, of eight and ten years, respectively. Amortization expense related to capitalized commissions totaled $141,000 and $152,000 for the three months ended March 31, 2020 and 2021, respectively.

The aggregate amortization expense for our non-compete agreements and capitalized commissions as of March 31, 2021 is as follows (in thousands):

	Non-Compete Agreements		Capitalized Commissions
Years ending December 31,
Remainder of 2021	$	459	$	437
2022	519		543
2023	446		488
2024	380		425
2025	373		359
Thereafter	499		988
Total amortization expense	$	2,676	$	3,240

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CREDIT FACILITY AND ACQUISITION DEBT

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

CREDIT FACILITY AND ACQUISITION DEBT

DEBT

At March 31, 2021, our $190.0 million senior secured revolving credit facility (the “Credit Facility”) was comprised of: (i) a $190.0 million revolving credit facility, including a $15.0 million subfacility for letters of credit and a $10.0 million swingline, and (ii) an accordion or incremental option allowing for future increases in the facility size by an additional amount of up to $75.0 million in the form of increased revolving commitments or incremental term loans. The final maturity of the Credit Facility will occur on May 31, 2023.

The Credit Facility is secured by a first-priority perfected security interest in and lien on substantially all of the Company’s personal property assets and those of the Credit Facility Guarantors. In the event the Company’s actual Total Leverage Ratio is not at least 0.25 less than the required Total Leverage Ratio covenant level, at the discretion of the Administrative Agent, the Administrative Agent may unilaterally compel the Company and the Credit Facility Guarantors to grant and perfect first-priority mortgage liens on fee-owned real property assets which account for no less than 50% of funeral operations EBITDA.

The Credit Facility contains customary affirmative covenants, including, but not limited to, covenants with respect to the use of proceeds, payment of taxes and other obligations, continuation of the Company’s business and the maintenance of existing rights and privileges, the maintenance of property and insurance, amongst others.

In addition, the Credit Facility also contains customary negative covenants, including, but not limited to, covenants that restrict (subject to certain exceptions) the ability of the Company and its subsidiaries party thereto as guarantors (the “Credit Facility Guarantors”) to incur additional indebtedness, grant liens on assets, make investments, engage in mergers and acquisitions, and pay dividends and other restricted payments, and certain financial covenants. As of March 31, 2021, we were subject to the following financial covenants under our Credit Facility: (A) a Total Leverage Ratio not to exceed 5.50 to 1.00, (B) a Senior Secured Leverage Ratio (as defined in the Credit Facility) not to exceed 2.00 to 1.00 as of the end of any period of four consecutive fiscal quarters, and (C) a Fixed Charge Coverage Ratio (as defined in the Credit Facility) of not less than 1.20 to 1.00 as of the end of any period of four consecutive fiscal quarters. These financial maintenance covenants are calculated for the Company and its subsidiaries on a consolidated basis.

We were in compliance with the total leverage ratio, fixed charge coverage ratio and senior secured leverage ratio covenants contained in our Credit Facility as of March 31, 2021.

Our Credit Facility and Acquisition debt consisted of the following (in thousands):

	December 31, 2020		March 31, 2021
Credit Facility	$	47,200	$	28,300
Debt issuance costs, net of accumulated amortization of $819 and $937, respectively	(1,136)		(1,018)
Total Credit Facility	$	46,064	$	27,282
Acquisition debt	$	5,509	$	5,355
Less: current portion	(1,027)		(913)
Total acquisition debt, net of current portion	$	4,482	$	4,442

At March 31, 2021, we had outstanding borrowings under the Credit Facility of $28.3 million. We also had one letter of credit for $2.1 million outstanding under the Credit Facility, which bears interest at 3.125% and will expire on November 25, 2021. The letter of credit will automatically renew annually and secures our obligations under our various self-insured policies. At March 31, 2021, we had $159.6 million of availability under the Credit Facility after giving effect to the $2.1 million of the outstanding letter of credit.

Outstanding borrowings under our Credit Facility bear interest at either a prime rate or a LIBOR rate, plus an applicable margin based upon our leverage ratio. At March 31, 2021, the prime rate margin was equivalent to 1.5% and the LIBOR rate margin was 2.5%. The weighted average interest rate on our Credit Facility was 4.3% and 3.3% for the three months ended March 31, 2020 and 2021, respectively.

The interest expense and amortization of debt issuance costs related to our Credit Facility are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Credit Facility interest expense	$	1,230	$	445
Credit Facility amortization of debt issuance costs	126		118

See Note 18 to the Consolidated Financial Statements herein for additional information related to our Credit Facility.

Acquisition debt consists of deferred purchase price and promissory notes payable to sellers. A majority of the deferred purchase price and notes bear no interest and are discounted at imputed interest rates ranging from 7.3% to 10.0%. Original maturities range from five to twenty years.

The imputed interest expense related to our acquisition debt is as follows (in thousands):

	Three months ended March 31,
	2020		2021
Acquisition debt imputed interest expense	$	127	$	97

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Convertible Subordinated Notes

3 Months Ended

Mar. 31, 2021

Convertible Subordinated Notes [Abstract]

Convertible Subordinated Notes

CONVERTIBLE SUBORDINATED NOTES

During the three months ended March 31, 2021, we converted approximately $2.4 million in aggregate principal amount of our 2.75% convertible subordinated notes due 2021 (the “Convertible Notes”) held by certain holders for approximately $3.8 million in cash and recorded $1.4 million for the reacquisition of the equity component. The Convertible Notes matured on March 15, 2021, at which time all Convertible Notes outstanding, approximately $0.2 million in aggregate principal amount, were paid in full in cash at par value. Therefore, no Convertible Notes remain outstanding at March 31, 2021.

The carrying values of the liability and equity components of our Convertible Notes are reflected on our Consolidated Balance Sheet as follows (in thousands):

	December 31, 2020		March 31, 2021
Current liabilities:
Principal amount	$	2,559	$	—
Unamortized discount of liability component	(20)		—
Convertible Notes issuance costs, net of accumulated amortization of $63 and $64, respectively	(1)		—
Carrying value of the liability component	$	2,538	$	—
Carrying value of the equity component	$	319	$	—

The carrying value of the liability component and the carrying value of the equity component are recorded in Convertible subordinated notes due 2021 and Additional paid-in capital, respectively, on our Consolidated Balance Sheet at December 31, 2020.

The interest expense and accretion of debt discount and debt issuance costs related to our Convertible Notes are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Convertible Notes interest expense	$	43	$	18
Convertible Notes accretion of debt discount	65		20
Convertible Notes amortization of debt issuance costs	6		1

The effective interest rate on the unamortized debt discount for both the three months ended March 31, 2020 and 2021 was 11.4%. The effective interest rate on the debt issuance costs for the three months ended March 31, 2020 and 2021 was 3.2% and 3.1%

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Senior Notes (Notes)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

SENIOR NOTES

The carrying value of our 6.625% senior notes due 2026 (the “Senior Notes”) is reflected on our Consolidated Balance Sheet as follows (in thousands):

	December 31, 2020		March 31, 2021
Long-term liabilities:
Principal amount	$	400,000	$	400,000
Debt premium, net of accumulated amortization of $221 and $279, respectively	1,467		1,409
Debt discount, net of accumulated amortization of $1,293 and $1,431, respectively	(3,582)		(3,444)
Debt issuance costs, net of accumulated amortization of $496 and $570, respectively	(1,917)		(1,843)
Carrying value of the Senior Notes	$	395,968	$	396,122

At March 31, 2021, the fair value of the Senior Notes, which are Level 2 measurements, was $417.6 million.

The Senior Notes were issued under an indenture, dated as of May 31, 2018 (the “Indenture”), among us, certain of our existing subsidiaries (collectively, the “Subsidiary Guarantors”), as guarantors, and Wilmington Trust, National Association., as trustee. The Senior Notes are unsecured, senior obligations and are fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally, by each of the Subsidiary Guarantors. The Senior Notes are due on June 1, 2026 unless earlier redeemed or repurchased and bear interest at 6.625% per year, which is payable semi-annually in arrears on June 1 and December 1 of each year.

We may redeem all or part of the Senior Notes at any time prior to June 1, 2021 at a redemption price equal to 100% of the principal amount of Senior Notes redeemed, plus a “make whole” premium, and accrued and unpaid interest, if any, to the date of redemption. We have the right to redeem the Senior Notes at any time on or after June 1, 2021 at the redemption prices described in the Indenture, plus accrued and unpaid interest, if any, to the date of redemption. Additionally, at any time before June 1, 2021, we may redeem up to 40% of the aggregate principal amount of the Senior Notes issued with an amount equal to the net proceeds of certain equity offerings, at a price equal to 106.625% of the principal amount of the Senior Notes, plus accrued and unpaid interest, if any, to the date of redemption; provided that (1) at least 60% of the aggregate principal amount of the Senior Notes (including any additional Senior Notes) originally issued under the Indenture remain outstanding immediately after the occurrence of such redemption (excluding Senior Notes held by us); and (2) each such redemption must occur within 180 days of the date of the closing of each such equity offering.

If a “change of control” occurs, holders of the Senior Notes will have the option to require us to purchase for cash all or a portion of their Senior Notes at a price equal to 101% of the principal amount of the Senior Notes, plus accrued and unpaid interest. In addition, if we make certain asset sales and do not reinvest the proceeds thereof or use such proceeds to repay certain debt, we will be required to use the proceeds of such asset sales to make an offer to purchase the Senior Notes at a price equal to 100% of the principal amount of the Senior Notes, plus accrued and unpaid interest.

The Indenture contains restrictive covenants limiting our ability and our Restricted Subsidiaries (as defined in the Indenture) to, among other things, incur additional indebtedness or issue certain preferred shares, create liens on certain assets to secure debt, pay dividends or make other equity distributions, purchase or redeem capital stock, make certain investments, sell assets, agree to certain restrictions on the ability of Restricted Subsidiaries to make payments to us, consolidate, merge, sell or otherwise dispose of all or substantially all assets, or engage in transactions with affiliates. The Indenture also contains customary events of default.

The interest expense and amortization of debt discount, debt premium and debt issuance costs related to our Senior Notes are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Senior Notes interest expense	$	6,625	$	6,625
Senior Notes amortization of debt discount	129		138
Senior Notes amortization of debt premium	54		58
Senior Notes amortization of debt issuance costs	67		74

The debt discount, the debt premium and the debt issuance costs are being amortized using the effective interest method over the remaining term of approximately 62 months of the Senior Notes. The effective interest rate on the unamortized debt discount and the unamortized debt issuance costs for the Senior Notes, issued in May 2018, for both three months ended March 31, 2020 and 2021 was 6.87% and 6.69%, respectively. The effective interest rate on the unamortized debt premium and the unamortized debt issuance costs for the Senior Notes, issued in December 2019, for both three months ended March 31, 2020 and 2021 was 6.20% and 6.88%, respectively.

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LEASES

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

LEASES

LEASES

Our lease obligations consist of operating and finance leases related to real estate and equipment. The components of lease cost are as follows (in thousands):

		Three months ended March 31,
	Income Statement Classification	2020		2021
Operating lease cost	Facilities and grounds expense(1)	$	957	$	960
Short-term lease cost	Facilities and grounds expense(1)	32		49
Variable lease cost	Facilities and grounds expense(1)	25		41
Finance lease cost:
Depreciation of leased assets	Depreciation and amortization(2)	$	109	$	108
Interest on lease liabilities	Interest expense	126		120
Total finance lease cost		235		228
Total lease cost		$	1,249	$	1,278

(1)	Facilities and grounds expense is included within Cost of service and General, administrative and other on our Consolidated Statements of Operations.
(2)	Depreciation and amortization expense is included within Field depreciation and Home office depreciation and amortization on our Consolidated Statements of Operations.

Supplemental cash flow information related to our leases is as follows (in thousands):

	Three months ended March 31,
	2020		2021
Cash paid for operating leases included in operating activities	$	696	$	965
Cash paid for finance leases included in financing activities	200		209

Right-of-use assets obtained in exchange for new leases is as follows (in thousands):

	Three months ended March 31,
	2020		2021
Right-of-use assets obtained in exchange for new operating lease liabilities	$	77	$	56
Right-of-use assets obtained in exchange for new finance lease liabilities	—		—

Supplemental balance sheet information related to leases is as follows (in thousands):

Lease Type	Balance Sheet Classification	December 31, 2020		March 31, 2021
Operating lease right-of-use assets	Operating lease right-of-use assets	$	21,201	$	20,747
Finance lease right-of-use assets	Property, plant and equipment, net	$	6,770	$	6,770
Accumulated depreciation	Property, plant and equipment, net	(2,005)		(2,113)
Finance lease right-of-use assets, net		$	4,765	$	4,657
Operating lease current liabilities	Current portion of operating lease obligations	$	2,082	$	2,057
Finance lease current liabilities	Current portion of finance lease obligations	323		331
Total current lease liabilities		$	2,405	$	2,388
Operating lease non-current liabilities	Obligations under operating leases, net of current portion	$	20,302	$	19,876
Finance lease non-current liabilities	Obligations under finance leases, net of current portion	5,531		5,445
Total non-current lease liabilities		$	25,833	$	25,321
Total lease liabilities		$	28,238	$	27,709

The average lease terms and discount rates at March 31, 2021 are as follows:

	Weighted-average remaining lease term (years)	Weighted-average discount rate
Operating leases	10.7	8.1	%
Finance leases	5.6	8.2	%

The aggregate future lease payments for operating and finance leases as of March 31, 2021 are as follows (in thousands):

	Operating		Finance
Lease payments due:
Remainder of 2021	$	2,854	$	627
2022	3,439		860
2023	3,318		860
2024	3,301		791
2025	3,161		736
Thereafter	16,188		5,555
Total lease payments	32,261		9,429
Less: Interest	(10,328)		(3,653)
Present value of lease liabilities	$	21,933	$	5,776

At March 31, 2021, we had no additional significant operating or finance leases that had not yet commenced.

LEASES

LEASES

Our lease obligations consist of operating and finance leases related to real estate and equipment. The components of lease cost are as follows (in thousands):

		Three months ended March 31,
	Income Statement Classification	2020		2021
Operating lease cost	Facilities and grounds expense(1)	$	957	$	960
Short-term lease cost	Facilities and grounds expense(1)	32		49
Variable lease cost	Facilities and grounds expense(1)	25		41
Finance lease cost:
Depreciation of leased assets	Depreciation and amortization(2)	$	109	$	108
Interest on lease liabilities	Interest expense	126		120
Total finance lease cost		235		228
Total lease cost		$	1,249	$	1,278

(1)	Facilities and grounds expense is included within Cost of service and General, administrative and other on our Consolidated Statements of Operations.
(2)	Depreciation and amortization expense is included within Field depreciation and Home office depreciation and amortization on our Consolidated Statements of Operations.

Supplemental cash flow information related to our leases is as follows (in thousands):

	Three months ended March 31,
	2020		2021
Cash paid for operating leases included in operating activities	$	696	$	965
Cash paid for finance leases included in financing activities	200		209

Right-of-use assets obtained in exchange for new leases is as follows (in thousands):

	Three months ended March 31,
	2020		2021
Right-of-use assets obtained in exchange for new operating lease liabilities	$	77	$	56
Right-of-use assets obtained in exchange for new finance lease liabilities	—		—

Supplemental balance sheet information related to leases is as follows (in thousands):

Lease Type	Balance Sheet Classification	December 31, 2020		March 31, 2021
Operating lease right-of-use assets	Operating lease right-of-use assets	$	21,201	$	20,747
Finance lease right-of-use assets	Property, plant and equipment, net	$	6,770	$	6,770
Accumulated depreciation	Property, plant and equipment, net	(2,005)		(2,113)
Finance lease right-of-use assets, net		$	4,765	$	4,657
Operating lease current liabilities	Current portion of operating lease obligations	$	2,082	$	2,057
Finance lease current liabilities	Current portion of finance lease obligations	323		331
Total current lease liabilities		$	2,405	$	2,388
Operating lease non-current liabilities	Obligations under operating leases, net of current portion	$	20,302	$	19,876
Finance lease non-current liabilities	Obligations under finance leases, net of current portion	5,531		5,445
Total non-current lease liabilities		$	25,833	$	25,321
Total lease liabilities		$	28,238	$	27,709

The average lease terms and discount rates at March 31, 2021 are as follows:

	Weighted-average remaining lease term (years)	Weighted-average discount rate
Operating leases	10.7	8.1	%
Finance leases	5.6	8.2	%

The aggregate future lease payments for operating and finance leases as of March 31, 2021 are as follows (in thousands):

	Operating		Finance
Lease payments due:
Remainder of 2021	$	2,854	$	627
2022	3,439		860
2023	3,318		860
2024	3,301		791
2025	3,161		736
Thereafter	16,188		5,555
Total lease payments	32,261		9,429
Less: Interest	(10,328)		(3,653)
Present value of lease liabilities	$	21,933	$	5,776

At March 31, 2021, we had no additional significant operating or finance leases that had not yet commenced.

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Stockholders' Equity

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

Restricted Stock

During the three months ended March 31, 2021, we issued restricted stock to certain employees totaling 9,300 shares that vest over a three-year period and had an aggregate grant date market value of $324,000 at a weighted average stock price of $34.79. During the three months ended March 31, 2020, we issued restricted stock to certain employees totaling 10,200 shares that vest over a three-year period and had an aggregate grant date market value of $255,000 at a weighted average stock price of $25.00.

We recorded stock-based compensation expense, which is included in General, administrative and other expenses, for restricted stock awards of $184,000 and $121,000, for the three months ended March 31, 2020 and 2021, respectively.

Stock Options

During the three months ended March 31, 2021, we granted 701,400 options to certain key employee at a weighted average price of $34.79. These options will vest in one-fifth increments over a five-year period and have a ten-year term. The fair value of these options was $7.1 million. During the three months ended March 31, 2020, we did not issue any stock options.

The fair value of the options granted were estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

Grant date	February 17, 2021
Dividend yield	1.15	%
Expected volatility	36.72	%
Risk-free interest rate	0.57	%
Expected holding period (years)	5.0
Black-Scholes value	$10.14

During the three months ended March 31, 2021, employees exercised 101,000 stock options at a weighted average exercise price of $24.18 with an aggregate intrinsic value of $1.3 million. We received $147,000 in cash for payment of the option price and we withheld $295,000 for payment of payroll taxes. In addition, we accelerated 12,980 options in connection with the resignation of an employee which resulted in an additional $129,000 of stock-based compensation expense.

During the three months ended March 31, 2021, we also granted an additional 150,000 options to a certain key employee at a weighted average price of $34.79. These options will vest when the price of our common stock closes at or above the specified prices below for three consecutive days within the ten-year term and the employee has remained continuously employed by us through such date. The fair value of these options was $1.7 million.

The fair value of the options granted were estimated on the date of grant using the Monte-Carlo simulation pricing model using the following assumptions:

Grant date	February 17, 2021		February 17, 2021
Awards granted	50,000		100,000
Fair value (in millions)	$0.5		$1.2
Vesting share price	$53.39		$77.34
Dividend yield	1.15	%	1.15	%
Expected volatility	34.08	%	34.08	%
Risk-free interest rate	1.29	%	1.29	%

We recorded stock-based compensation expense, which is included in General, administrative and other expenses, for stock options, including the accelerated stock options discussed above of $215,000 and $560,000, for the three months ended March 31, 2020 and 2021, respectively.

Performance Awards

During the three months ended March 31, 2021, we did not issue any performance awards and we cancelled 27,948 performance awards in connection with the resignation of two employees.

During the three months ended March 31, 2020, we issued 237,500 performance awards to certain employees, payable in shares, with a fair value of $2.8 million. On May 19, 2020, we cancelled all performance award agreements previously awarded to all individuals during 2019 and the February 19, 2020 award. Concurrently with the cancellation, the Compensation Committee of the Board of Directors (the “Board”) approved 368,921 new performance awards to be issued to certain employees. These new performance awards were treated as a modification of the cancelled awards and resulted in an additional $1.7 million of incremental compensation costs.

We recorded stock-based compensation expense, which is included in General, administrative and other expenses, for performance awards of $121,000 and $237,000 for the three months ended March 31, 2020 and 2021, respectively.

Employee Stock Purchase Plan

During the three months ended March 31, 2021, employees purchased a total of 18,182 shares at a weighted average price of $26.32 per share. During the three months ended March 31, 2020, employees purchased a total of 26,294 shares at a weighted average price of $13.73 per share.

The fair value of the right (option) to purchase shares under the ESPP is estimated at the date of purchase with the four quarterly purchase dates using the following assumptions:

	2021
Dividend yield	0.01%
Expected volatility	48.14%
Risk-free interest rate	0.09%, 0.09%, 0.10%, 0.10%
Expected life (years)	0.25, 0.50, 0.75, 1.00

We recorded stock-based compensation expense, which is included in General, administrative and other expenses and Regional and unallocated funeral and cemetery costs, for the ESPP totaling $163,000 and $206,000 for the three months ended March 31, 2020 and 2021, respectively.

Non-Employee Director Compensation

During the three months ended March 31, 2021, we granted 5,040 shares of our common stock to six Directors, which were valued at $177,000 at a weighted average stock price of $35.19. During the three months ended March 31, 2020, we granted 8,821 shares of our common stock to five Directors, which were valued at $147,000 at a weighted average stock price of $16.15.

We recorded stock-based compensation expense, which is included in General, administrative and other expenses, related to annual retainers, including the value of stock granted to Directors above, of $201,000 and $231,000 for the three months ended March 31, 2020 and 2021, respectively.

Share Repurchase

On July 31, 2019, our Board approved an additional $25.0 million under our share repurchase program in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended. During the three months ended March 31, 2021, we did not repurchase any shares of our common stock. At March 31, 2021, we had approximately $25.6 million available for repurchases under our share repurchase program.

Cash Dividends

Our Board declared the following dividends payable on the dates below (in thousands, except per share amounts):

2021	Per Share		Dollar Value
March 1st	$	0.100	$	1,799
2020	Per Share		Dollar Value
March 1st	$	0.075	$	1,339

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Earnings Per Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

The following table sets forth the computation of the basic and diluted earnings per share (in thousands, except per share data):

	Three months ended March 31,
	2020		2021
Numerator for basic and diluted earnings per share:
Net income (loss)	$	(4,197)	$	12,933
Less: Loss (earnings) allocated to unvested restricted stock	13		(27)
Income (loss) attributable to common stockholders	$	(4,184)	$	12,906
Denominator:
Denominator for basic earnings per common share - weighted average shares outstanding	17,805		17,965
Effect of dilutive securities:
Stock options	—		234
Denominator for diluted earnings per common share - weighted average shares outstanding	17,805		18,199
Basic earnings (loss) per common share:	$	(0.23)	$	0.72
Diluted earnings (loss) per common share:	$	(0.23)	$	0.71

For the three months ended March 31, 2020 there were 1,034,084 stock options excluded from the computation of diluted earnings per share because the inclusion of such stock options would result in an antidilutive effect and 27,085 shares were excluded from the computation of diluted earnings per share amounts because the loss attributable to common stockholders was a loss, not income. For the three months ended March 31, 2021, no stock options were excluded from the computation of diluted earnings per share.

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SEGMENT REPORTING

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

Revenue, disaggregated by major source for each of our reportable segments was as follows (in thousands):

Three months ended March 31, 2021
	Funeral		Cemetery		Total
Services	$	43,522	$	4,235	$	47,757
Merchandise	24,461		3,424		27,885
Cemetery property	—		14,011		14,011
Other revenue	3,791		3,193		6,984
Total	$	71,774	$	24,863	$	96,637

Three months ended March 31, 2020
	Funeral		Cemetery		Total
Services	$	37,559	$	3,173	$	40,732
Merchandise	20,700		2,286		22,986
Cemetery property	—		8,285		8,285
Other revenue	3,483		2,004		5,487
Total	$	61,742	$	15,748	$	77,490

The following table presents operating income (loss), income (loss) before income taxes and total assets (in thousands): 

	Funeral		Cemetery		Corporate		Consolidated
Operating income (loss):
Three months ended March 31, 2021	$	25,876	$	9,493	$	(9,123)	$	26,246
Three months ended March 31, 2020	4,311		4,167		(6,328)		2,150
Income (loss) before income taxes:
Three months ended March 31, 2021	$	25,718	$	9,476	$	(16,620)	$	18,574
Three months ended March 31, 2020	4,119		4,105		(14,571)		(6,347)
Total assets:
March 31, 2021	$	763,761	$	378,945	$	15,020	$	1,157,726
December 31, 2020	764,535		366,964		14,326		1,145,825

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Supplementary Data

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplementary Data

SUPPLEMENTARY DATA

Balance Sheet

The following table presents the detail of certain balance sheet accounts (in thousands):

	December 31, 2020		March 31, 2021
Prepaid and other current assets:
Prepaid expenses	$	1,919	$	1,913
Other current assets	157		163
Total prepaid and other current assets	$	2,076	$	2,076
Current portion of debt and lease obligations:
Current portion of acquisition debt	$	1,027	$	913
Current portion of finance lease obligations	323		331
Current portion of operating lease obligations	2,082		2,057
Total current portion of debt and lease obligations	$	3,432	$	3,301
Accrued and other liabilities:
Accrued salaries and wages	$	1,392	$	3,307
Accrued incentive compensation	11,139		5,964
Accrued vacation	3,271		3,440
Accrued insurance	3,016		3,507
Accrued interest	2,291		8,888
Accrued ad valorem and franchise taxes	435		1,059
Employer payroll tax deferral	1,773		1,773
Accrued commissions	634		912
Perpetual care trust payable	908		1,097
Income tax payable	798		4,392
Other accrued liabilities	1,825		1,604
Unrecognized tax benefit	3,656		3,656
Total accrued and other liabilities	$	31,138	$	39,599
Other long-term liabilities:
Incentive compensation	$	2,975	$	351
Employer payroll tax deferral	1,773		1,773
Accrued severance	—		553
Total other long-term liabilities	$	4,748	$	2,677

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Basis Of Presentation And Summary Of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principles of Consolidation and Interim Condensed Disclosures, Policy

Principles of Consolidation and Interim Condensed DisclosuresOur unaudited consolidated financial statements include the Company and its subsidiaries. All intercompany balances and transactions have been eliminated. Our interim consolidated financial statements are unaudited but include all adjustments, which consist of normal, recurring accruals, that are necessary for a fair presentation of our financial position and results of operations as of and for the interim periods presented. Our unaudited consolidated financial statements have been prepared in a manner consistent with the accounting principles described in our Annual Report on Form 10-K for the year ended December 31, 2020 unless otherwise disclosed herein, and should be read in conjunction therewith.

Reclassification, Policy

ReclassificationsCertain reclassifications have been made to prior period amounts on our Consolidated Statements of Cash Flows related to the amortization of non-compete agreements and on our Statement of Changes in Stockholders Equity related to the issuance of common stock to conform to the current period financial statement presentation with no effect on our previously reported Consolidated Statements of Operations and Consolidated Balance Sheet.

Use of Estimates, Policy

Use of Estimates

The preparation of our Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses. On an ongoing basis, we evaluate our estimates and judgments, which include those related to the realization of our accounts receivable, valuation of goodwill, intangible assets, deferred tax assets and liabilities and depreciation of property and equipment. 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 revenue 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.

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.

New Accounting Pronouncements Not Yet Adopted

Accounting Pronouncements Not Yet Adopted

Funeral and Cemetery Operations, Policy

Property, Plant and Equipment, Policy

Property, Plant and EquipmentProperty, plant and equipment (including equipment under finance leases) are stated at cost. The costs of ordinary maintenance and repairs are charged to operations as incurred, while renewals and major replacements that extend the useful economic life of the asset are capitalized. Depreciation of property, plant and equipment (including equipment under finance leases) is computed based on the straight-line method over the estimated useful lives of the assets.

Goodwill and Intangible Assets, Goodwill, Policy

Goodwill

The excess of the purchase price over the fair value of identifiable net assets of funeral home businesses and cemeteries acquired is recorded as goodwill. Goodwill has an indefinite life and is not subject to amortization. As such, we test goodwill for impairment on an annual basis as of August 31st each year. Under current guidance, we are permitted to first assess qualitative factors to determine whether it is more-likely-than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test.

Our intent is to perform a quantitative impairment test at least once every three years and perform a qualitative assessment during the remaining two years. In addition to our annual test, we assess the impairment of goodwill whenever events or changes in circumstances indicate that the carrying value of a reporting unit may be greater than fair value. Factors that could trigger an interim impairment review include, but are not limited to, significant negative industry or economic trends and significant adverse changes in the business climate, which may be indicated by a decline in our market capitalization or decline in operating results.

When we divest a portion of a reporting unit that constitutes a business in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), we allocate goodwill associated with that business to be included in the gain or loss on divestiture. The goodwill allocated is based on the relative fair values of the business being divested and the portion of the reporting unit that will be retained. Additionally, after each divestiture, we will test the goodwill remaining in the portion of the reporting unit to be retained for impairment using a qualitative assessment unless we deem a quantitative assessment to be appropriate to ensure the fair value of our reporting units is greater than their carrying value.

See Note 3 to the Consolidated Financial Statements included herein for additional information related to our goodwill.

Intangible Assets

Our intangible assets include tradenames resulting from acquisitions and are included in Intangible and other non-current assets, net on our Consolidated Balance Sheet. Our tradenames are considered to have an indefinite life and are not subject to amortization. As such, we test our intangible assets for impairment on an annual basis as of August 31st each year. Under current guidance, we are permitted to first assess qualitative factors to determine whether it is more-likely-than not that the fair value of the tradename is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test.

Our intent is to perform a quantitative impairment test at least once every three years and perform a qualitative assessment during the remaining two years. In addition to our annual test, we assess the impairment of intangible assets whenever certain events or changes in circumstances indicate that the carrying value of the intangible asset may be greater than the fair value. Factors that could trigger an interim impairment review include, but are not limited to, significant under-performance relative to historical or projected future operating results and significant negative industry or economic trends.

See Note 9 to the Consolidated Financial Statements included herein for additional information related to our intangible assets.

Subsequent Events, Policy

Subsequent Events

We have evaluated events and transactions during the period subsequent to March 31, 2021 through the date the financial statements were issued for potential recognition or disclosure in the accompanying financial statements covered by this report.

See Note 18 to the Consolidated Financial Statements included herein for additional information related to our subsequent events.

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Basis of Presentation and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Property, Plant and Equipment

Property, plant and equipment is comprised of the following (in thousands):

	December 31, 2020		March 31, 2021
Land	$	82,615	$	81,981
Buildings and improvements	240,567		240,988
Furniture, equipment and automobiles	91,302		91,481
Property, plant and equipment, at cost	414,484		414,450
Less: accumulated depreciation	(145,433)		(147,395)
Property, plant and equipment, net	$	269,051	$	267,055

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Revenue From Contracts With Customers (Tables)

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

Revenue, disaggregated by major source for each of our reportable segments was as follows (in thousands):

Three months ended March 31, 2021
	Funeral		Cemetery		Total
Services	$	43,522	$	4,235	$	47,757
Merchandise	24,461		3,424		27,885
Cemetery property	—		14,011		14,011
Other revenue	3,791		3,193		6,984
Total	$	71,774	$	24,863	$	96,637

Three months ended March 31, 2020
	Funeral		Cemetery		Total
Services	$	37,559	$	3,173	$	40,732
Merchandise	20,700		2,286		22,986
Cemetery property	—		8,285		8,285
Other revenue	3,483		2,004		5,487
Total	$	61,742	$	15,748	$	77,490

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Goodwill (Tables)

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table presents changes in goodwill in the accompanying Consolidated Balance Sheet (in thousands):

	December 31, 2020		March 31, 2021
Goodwill at the beginning of the period	$	398,292	$	392,978
Net increase in goodwill related to acquisitions	14,054		—
Decrease in goodwill related to divestitures	(5,736)		(1,006)
Decrease in goodwill related to impairments	(13,632)		—
Goodwill at the end of the period	$	392,978	$	391,972

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DIVESTED OPERATIONS (Tables)

3 Months Ended

Mar. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Operating Results And Gain On Discontinued Operations

The operating results of these divested funeral homes are reflected in our Consolidated Statements of Operations as shown in the table below (in thousands):

	Three months ended March 31,
	2020		2021
Revenue	$	—	$	282
Operating income	—		60
Gain on divestitures(1)	—		308
Income tax expense	—		(114)
Net income from divested operations, after tax	$	—	$	254

(1) Gain on divestitures is recorded in Net loss (gain) on divestitures and impairment charges on our Consolidated Statements of Operations.

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Trust Investments (Tables)

3 Months Ended

Mar. 31, 2021

Preneed Trust Investments [Abstract]

Components of preneed cemetery trust investments

The components of Preneed cemetery trust investments on our Consolidated Balance Sheet are as follows (in thousands):

	December 31, 2020		March 31, 2021
Preneed cemetery trust investments, at market value	$	89,081	$	94,882
Less: allowance for contract cancellation	(2,477)		(2,519)
Preneed cemetery trust investments	$	86,604	$	92,363

Cost and fair market values associated with preneed cemetery trust investments

The cost and market values associated with preneed cemetery trust investments at March 31, 2021 are detailed below (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	1,464	$	—	$	—	$	1,464
Fixed income securities:
Foreign debt	2	15,996		2,244		(620)		17,620
Corporate debt	2	14,509		1,849		(91)		16,267
Preferred stock	2	11,922		689		(360)		12,251
Mortgage-backed securities	2	—		—		—		—
Common stock	1	31,925		7,912		(3,508)		36,329
Mutual funds:
Equity	1	27		1		—		28
Fixed Income	2	8,110		1,729		(137)		9,702
Trust securities		$	83,953	$	14,424	$	(4,716)	$	93,661
Accrued investment income		$	1,221					$	1,221
Preneed cemetery trust investments								$	94,882
Market value as a percentage of cost								111.6		%

The cost and market values associated with preneed cemetery trust investments at December 31, 2020 are detailed below (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	1,859	$	—	$	—	$	1,859
Fixed income securities:
Foreign debt	2	15,953		2,083		(702)		17,334
Corporate debt	2	14,856		1,820		(358)		16,318
Preferred stock	2	11,886		980		(336)		12,530
Mortgage-backed securities	2	272		—		(159)		113
Common stock	1	30,253		7,642		(6,601)		31,294
Mutual funds:
Fixed income	2	7,494		1,331		(185)		8,640
Trust Securities		$	82,573	$	13,856	$	(8,341)	$	88,088
Accrued investment income		$	993					$	993
Preneed cemetery trust investments								$	89,081
Market value as a percentage of cost								106.7		%

Estimated maturities of fixed preneed cemetery trust income securities

The estimated maturities of the fixed income securities (excluding mutual funds) included above are as follows (in thousands):

Due in one year or less	$	—
Due in one to five years	13,602
Due in five to ten years	8,505
Thereafter	24,031
Total fixed income securities	$	46,138

Schedule of fair market value and unrealized loss on cemetery merchandise and service trust investments

The following table summarized our fixed income securities (excluding mutual funds) within our preneed cemetery trust investments in an unrealized loss position at March 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	March 31, 2021
	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	$	2,590	$	(114)	$	509	$	(506)	$	3,099	$	(620)
Corporate debt	735		(9)		682		(82)		1,417		(91)
Preferred stock	3,912		(324)		837		(36)		4,749		(360)
Total fixed income securities with an unrealized loss	$	7,237	$	(447)	$	2,028	$	(624)	$	9,265	$	(1,071)

The following table summarized our fixed income securities (excluding mutual funds) within our preneed cemetery trust investments in an unrealized loss position at December 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	December 31, 2020
	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	$	2,517	$	(57)	$	371	$	(645)	$	2,888	$	(702)
Corporate debt	784		(99)		542		(259)		1,326		(358)
Preferred stock	709		(118)		4,049		(218)		4,758		(336)
Mortgage-backed securities	—		—		112		(159)		112		(159)
Total fixed income securities with an unrealized loss	$	4,010	$	(274)	$	5,074	$	(1,281)	$	9,084	$	(1,555)

Preneed cemetery trust investment security transactions

Preneed cemetery trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Investment income	$	319	$	467
Realized gains	1,916		4,092
Realized losses	(1,372)		(2,518)
Unrealized gains (losses), net	(16,305)		9,708
Expenses and taxes	(187)		(327)
Net change in deferred preneed cemetery receipts held in trust	15,629		(11,422)
	$	—	$	—

Purchases and sales of investments in preneed cemetary trusts

Purchases and sales of investments in the preneed cemetery trusts are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Purchases	$	(18,857)	$	(8,411)
Sales	13,231		8,049

Components of preneed funeral trust investments

The components of Preneed funeral trust investments on our Consolidated Balance Sheet are as follows (in thousands):

	December 31, 2020		March 31, 2021
Preneed funeral trust investments, at market value	$	104,166	$	108,131
Less: allowance for contract cancellation	(2,931)		(2,930)
Preneed funeral trust investments	$	101,235	$	105,201

Estimated maturities of fixed preneed funeral trust income securities

The estimated maturities of the fixed income securities (excluding mutual funds) included above are as follows (in thousands):

Due in one year or less	$	821
Due in one to five years	12,143
Due in five to ten years	7,855
Thereafter	22,043
Total fixed income securities	$	42,862

Cost and fair market values associated with preneed funeral trust investments

The cost and market values associated with preneed funeral trust investments at March 31, 2021 are detailed below (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	18,119	$	—	$	—	$	18,119
Fixed income securities:
U.S treasury debt	1	816		5		—		821
Foreign debt	2	14,959		2,142		(551)		16,550
Corporate debt	2	12,826		1,639		(87)		14,378
Preferred stock	2	10,816		637		(340)		11,113
Common stock	1	29,618		7,546		(3,120)		34,044
Mutual funds:
Equity	1	26		1		—		27
Fixed income	2	6,600		1,534		(87)		8,047
Other investments	2	3,901		—		—		3,901
Trust securities		$	97,681	$	13,504	$	(4,185)	$	107,000
Accrued investment income		$	1,131					$	1,131
Preneed funeral trust investments								$	108,131
Market value as a percentage of cost								109.5		%

The cost and market values associated with preneed funeral trust investments at December 31, 2020 are detailed below (in thousands):

	Fair Value Hierarchy Level	Cost		Unrealized Gains		Unrealized Losses		Fair Market Value
Cash and money market accounts	1	$	18,478	$	—	$	—	$	18,478
Fixed income securities:
U.S. treasury debt	1	819		6		—		825
Foreign debt	2	15,144		2,018		(634)		16,528
Corporate debt	2	13,292		1,638		(310)		14,620
Preferred stock	2	10,944		900		(298)		11,546
Mortgage-backed securities	2	293		1		(155)		139
Common stock	1	28,327		7,364		(6,052)		29,639
Mutual funds:
Fixed income	2	6,475		1,198		(121)		7,552
Other investments	2	3,928		—		—		3,928
Trust securities		$	97,700	$	13,125	$	(7,570)	$	103,255
Accrued investment income		$	911					$	911
Preneed funeral trust investments								$	104,166
Market value as a percentage of cost								105.7		%

Schedule of fair market value and unrealized loss on preneed funeral trust investments

The following table summarized our fixed income securities (excluding mutual funds) within our preneed funeral trust investment in an unrealized loss position at March 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	March 31, 2021
	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	$	2,270	$	(100)	$	456	$	(451)	$	2,726	$	(551)
Corporate debt	705		(9)		654		(78)		1,359		(87)
Preferred stock	3,750		(311)		599		(29)		4,349		(340)
Total fixed income securities with an unrealized loss	$	6,725	$	(420)	$	1,709	$	(558)	$	8,434	$	(978)

The following table summarized our fixed income securities (excluding mutual funds) within our preneed funeral trust investment in an unrealized loss position at December 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	December 31, 2020
	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	$	2,225	$	(55)	$	337	$	(579)	$	2,562	$	(634)
Corporate debt	763		(96)		528		(214)		1,291		(310)
Preferred stock	506		(87)		3,942		(211)		4,448		(298)
Mortgage-backed securities	—		—		111		(155)		111		(155)
Total fixed income securities with an unrealized loss	$	3,494	$	(238)	$	4,918	$	(1,159)	$	8,412	$	(1,397)

Preneed funeral trust investment security transactions

Preneed funeral trust investment security transactions recorded in Other, net on the Consolidated Statements of Operations are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Investment income	$	258	$	369
Realized gains	2,551		3,871
Realized losses	(1,129)		(2,368)
Unrealized gains (losses), net	(15,274)		9,319
Expenses and taxes	(97)		(196)
Net change in deferred preneed funeral receipts held in trust	13,691		(10,995)
	$	—	$	—

Purchases and sales of investments in preneed funeral trusts

Purchases and sales of investments in the preneed funeral trusts are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Purchases	$	(18,538)	$	(7,628)
Sales	15,968		7,524

Purchases and sales of investments in the perpetual care trusts are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Purchases	$	(14,612)	$	(6,137)
Sales	12,694		5,956

Components of care trusts' corpus

Care trusts’ corpus on our Consolidated Balance Sheet represent the corpus of those trusts plus undistributed income. The components of Care trusts’ corpus are as follows (in thousands):

	December 31, 2020		March 31, 2021
Cemetery perpetual care trust investments, at market value	$	70,828	$	75,815
Obligations due from trust	(1,121)		(455)
Care trusts’ corpus	$	69,707	$	75,360

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

The following table summarized our fixed income securities (excluding mutual funds) within our perpetual care trust investment in an unrealized loss position at March 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	March 31, 2021
	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	$	1,800	$	(79)	$	430	$	(429)	$	2,230	$	(508)
Corporate debt	559		(7)		519		(62)		1,078		(69)
Preferred stock	2,973		(246)		1,318		(53)		4,291		(299)
Total fixed income securities with an unrealized loss	$	5,332	$	(332)	$	2,267	$	(544)	$	7,599	$	(876)

The following table summarized our fixed income securities (excluding mutual funds) within our perpetual care trust investment in an unrealized loss position at December 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):

	December 31, 2020
	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	$	1,728	$	(43)	$	312	$	(539)	$	2,040	$	(582)
Corporate debt	592		(74)		410		(166)		1,002		(240)
Preferred stock	1,142		(191)		3,060		(164)		4,202		(355)
Mortgage-backed securities	—		—		85		(121)		85		(121)
Total fixed income securities with an unrealized loss	$	3,462	$	(308)	$	3,867	$	(990)	$	7,329	$	(1,298)

Preneed Funeral Trust Investment Security Transactions [Table Text Block]

Perpetual care trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Realized gains	$	709	$	691
Realized losses	(679)		(420)
Unrealized gains (losses), net	(13,525)		7,699
Net change in Care trusts’ corpus	13,495		(7,970)
Total	$	—	$	—

Perpetual care trust investment security transactions recorded in Other revenue on our Consolidated Statements of Operations are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Investment income	$	1,405	$	2,513
Realized losses, net	(36)		(138)
Total	$	1,369	$	2,375

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Receivables (Tables)

3 Months Ended

Mar. 31, 2021

Preneed Cemetery Receivables [Abstract]

Preneed Cemetery Receivables

The following table summarizes the activity in our allowance for credit losses for Preneed cemetery receivables, net (in thousands):

	January 1, 2021		Provision for Credit Losses		Write Offs		March 31, 2021
Total allowance for credit losses on Preneed cemetery receivables, net	$	(1,644)	$	(246)	$	25	$	(1,865)

Aging of Past Due Financing Receivables

The aging of past due preneed cemetery receivables as of March 31, 2021 is as follows (in thousands):

	31-60 Past Due		61-90 Past Due		91-120 Past Due		>120 Past Due		Total Past Due		Current		Total
Recognized revenue	$	623	$	404	$	194	$	1,990	$	3,211	$	32,953	$	36,164
Deferred revenue	184		140		46		600		970		11,763		12,733
Total contracts	$	807	$	544	$	240	$	2,590	$	4,181	$	44,716	$	48,897

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Receivables from Preneed Trusts (Tables)

3 Months Ended

Mar. 31, 2021

Receivables From Preneed Trusts [Abstract]

Receivables from Preneed Trusts

	December 31, 2020		March 31, 2021
Preneed trust funds, at cost	$	17,365	$	17,502
Less: allowance for contract cancellation	(521)		(526)
Receivables from preneed trusts, net	$	16,844	$	16,976

Composition of Assets Held in Trust

The following summary reflects the composition of the assets held in trust and controlled by third parties to satisfy our future obligations under preneed arrangements related to the preceding contracts at December 31, 2020 and March 31, 2021. The cost basis includes reinvested interest and dividends that have been earned on the trust assets. Fair value includes unrealized gains and losses on trust assets.

The composition of the preneed trust funds at March 31, 2021 is as follows (in thousands):

	Historical Cost Basis		Fair Value
Cash and cash equivalents	$	4,697	$	4,697
Fixed income investments	10,473		10,473
Mutual funds and common stocks	2,327		2,406
Annuities	5		5
Total	$	17,502	$	17,581

The composition of the preneed trust funds at December 31, 2020 is as follows (in thousands):

	Historical Cost Basis		Fair Value
Cash and cash equivalents	$	4,604	$	4,604
Fixed income investments	10,355		10,355
Mutual funds and common stocks	2,402		2,569
Annuities	4		4
Total	$	17,365	$	17,532

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Intangible and Other Non-Current Assets (Tables)

3 Months Ended

Mar. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure

Intangible and other non-current assets are as follows (in thousands):

	December 31, 2020		March 31, 2021
Tradenames	$	23,565	$	23,565
Prepaid agreements not-to-compete, net of accumulated amortization of $3,193 and $3,361, respectively	2,785		2,676
Capitalized commissions on preneed contracts, net of accumulated amortization of $1,594 and $1,746, respectively	3,141		3,240
Other	51		21
Intangible and other non-current assets, net	$	29,542	$	29,502

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The aggregate amortization expense for our non-compete agreements and capitalized commissions as of March 31, 2021 is as follows (in thousands):

	Non-Compete Agreements		Capitalized Commissions
Years ending December 31,
Remainder of 2021	$	459	$	437
2022	519		543
2023	446		488
2024	380		425
2025	373		359
Thereafter	499		988
Total amortization expense	$	2,676	$	3,240

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CREDIT FACILITY AND ACQUISITION DEBT (Tables)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Our Credit Facility and Acquisition debt consisted of the following (in thousands):

	December 31, 2020		March 31, 2021
Credit Facility	$	47,200	$	28,300
Debt issuance costs, net of accumulated amortization of $819 and $937, respectively	(1,136)		(1,018)
Total Credit Facility	$	46,064	$	27,282
Acquisition debt	$	5,509	$	5,355
Less: current portion	(1,027)		(913)
Total acquisition debt, net of current portion	$	4,482	$	4,442

The imputed interest expense related to our acquisition debt is as follows (in thousands):

	Three months ended March 31,
	2020		2021
Acquisition debt imputed interest expense	$	127	$	97

Schedule of Line of Credit Facilities

he interest expense and amortization of debt issuance costs related to our Credit Facility are as follows (in thousands):

	Three months ended March 31,
	2020		2021
Credit Facility interest expense	$	1,230	$	445
Credit Facility amortization of debt issuance costs	126		118

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Convertible Subordinated Notes (Tables)

3 Months Ended

Mar. 31, 2021

Convertible Subordinated Notes [Abstract]

Schedule of Liability and Equity Components of Convertible Subordinated Notes

The carrying values of the liability and equity components of our Convertible Notes are reflected on our Consolidated Balance Sheet as follows (in thousands):

	December 31, 2020		March 31, 2021
Current liabilities:
Principal amount	$	2,559	$	—
Unamortized discount of liability component	(20)		—
Convertible Notes issuance costs, net of accumulated amortization of $63 and $64, respectively	(1)		—
Carrying value of the liability component	$	2,538	$	—
Carrying value of the equity component	$	319	$	—

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(Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Components of Lease Expense

The components of lease cost are as follows (in thousands):

		Three months ended March 31,
	Income Statement Classification	2020		2021
Operating lease cost	Facilities and grounds expense(1)	$	957	$	960
Short-term lease cost	Facilities and grounds expense(1)	32		49
Variable lease cost	Facilities and grounds expense(1)	25		41
Finance lease cost:
Depreciation of leased assets	Depreciation and amortization(2)	$	109	$	108
Interest on lease liabilities	Interest expense	126		120
Total finance lease cost		235		228
Total lease cost		$	1,249	$	1,278

(1)	Facilities and grounds expense is included within Cost of service and General, administrative and other on our Consolidated Statements of Operations.
(2)	Depreciation and amortization expense is included within Field depreciation and Home office depreciation and amortization on our Consolidated Statements of Operations.

Supplemental cash flow information related to our leases is as follows (in thousands):

	Three months ended March 31,
	2020		2021
Cash paid for operating leases included in operating activities	$	696	$	965
Cash paid for finance leases included in financing activities	200		209

Right-of-use assets obtained in exchange for new leases is as follows (in thousands):

	Three months ended March 31,
	2020		2021
Right-of-use assets obtained in exchange for new operating lease liabilities	$	77	$	56
Right-of-use assets obtained in exchange for new finance lease liabilities	—		—

Supplemental balance sheet information related to leases is as follows (in thousands):

Lease Type	Balance Sheet Classification	December 31, 2020		March 31, 2021
Operating lease right-of-use assets	Operating lease right-of-use assets	$	21,201	$	20,747
Finance lease right-of-use assets	Property, plant and equipment, net	$	6,770	$	6,770
Accumulated depreciation	Property, plant and equipment, net	(2,005)		(2,113)
Finance lease right-of-use assets, net		$	4,765	$	4,657
Operating lease current liabilities	Current portion of operating lease obligations	$	2,082	$	2,057
Finance lease current liabilities	Current portion of finance lease obligations	323		331
Total current lease liabilities		$	2,405	$	2,388
Operating lease non-current liabilities	Obligations under operating leases, net of current portion	$	20,302	$	19,876
Finance lease non-current liabilities	Obligations under finance leases, net of current portion	5,531		5,445
Total non-current lease liabilities		$	25,833	$	25,321
Total lease liabilities		$	28,238	$	27,709

The average lease terms and discount rates at March 31, 2021 are as follows:

	Weighted-average remaining lease term (years)	Weighted-average discount rate
Operating leases	10.7	8.1	%
Finance leases	5.6	8.2	%

Maturities of Operating Lease Liabilities

The aggregate future lease payments for operating and finance leases as of March 31, 2021 are as follows (in thousands):

	Operating		Finance
Lease payments due:
Remainder of 2021	$	2,854	$	627
2022	3,439		860
2023	3,318		860
2024	3,301		791
2025	3,161		736
Thereafter	16,188		5,555
Total lease payments	32,261		9,429
Less: Interest	(10,328)		(3,653)
Present value of lease liabilities	$	21,933	$	5,776

Maturities of Financing Lease Liabilities

The aggregate future lease payments for operating and finance leases as of March 31, 2021 are as follows (in thousands):

	Operating		Finance
Lease payments due:
Remainder of 2021	$	2,854	$	627
2022	3,439		860
2023	3,318		860
2024	3,301		791
2025	3,161		736
Thereafter	16,188		5,555
Total lease payments	32,261		9,429
Less: Interest	(10,328)		(3,653)
Present value of lease liabilities	$	21,933	$	5,776

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Dividends Declared

ur Board declared the following dividends payable on the dates below (in thousands, except per share amounts):

2021	Per Share		Dollar Value
March 1st	$	0.100	$	1,799
2020	Per Share		Dollar Value
March 1st	$	0.075	$	1,339

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of the basic and diluted earnings per share (in thousands, except per share data):

	Three months ended March 31,
	2020		2021
Numerator for basic and diluted earnings per share:
Net income (loss)	$	(4,197)	$	12,933
Less: Loss (earnings) allocated to unvested restricted stock	13		(27)
Income (loss) attributable to common stockholders	$	(4,184)	$	12,906
Denominator:
Denominator for basic earnings per common share - weighted average shares outstanding	17,805		17,965
Effect of dilutive securities:
Stock options	—		234
Denominator for diluted earnings per common share - weighted average shares outstanding	17,805		18,199
Basic earnings (loss) per common share:	$	(0.23)	$	0.72
Diluted earnings (loss) per common share:	$	(0.23)	$	0.71

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SEGMENT REPORTING (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Disaggregation of Revenue

Revenue, disaggregated by major source for each of our reportable segments was as follows (in thousands):

Three months ended March 31, 2021
	Funeral		Cemetery		Total
Services	$	43,522	$	4,235	$	47,757
Merchandise	24,461		3,424		27,885
Cemetery property	—		14,011		14,011
Other revenue	3,791		3,193		6,984
Total	$	71,774	$	24,863	$	96,637

Three months ended March 31, 2020
	Funeral		Cemetery		Total
Services	$	37,559	$	3,173	$	40,732
Merchandise	20,700		2,286		22,986
Cemetery property	—		8,285		8,285
Other revenue	3,483		2,004		5,487
Total	$	61,742	$	15,748	$	77,490

Revenue, pre-tax income and total and total assets by segments

	Funeral		Cemetery		Corporate		Consolidated
Operating income (loss):
Three months ended March 31, 2021	$	25,876	$	9,493	$	(9,123)	$	26,246
Three months ended March 31, 2020	4,311		4,167		(6,328)		2,150
Income (loss) before income taxes:
Three months ended March 31, 2021	$	25,718	$	9,476	$	(16,620)	$	18,574
Three months ended March 31, 2020	4,119		4,105		(14,571)		(6,347)
Total assets:
March 31, 2021	$	763,761	$	378,945	$	15,020	$	1,157,726
December 31, 2020	764,535		366,964		14,326		1,145,825

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Supplementary Data (Tables)

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplementary Balance Sheet Disclosures

he detail of certain balance sheet accounts (in thousands):

	December 31, 2020		March 31, 2021
Prepaid and other current assets:
Prepaid expenses	$	1,919	$	1,913
Other current assets	157		163
Total prepaid and other current assets	$	2,076	$	2,076
Current portion of debt and lease obligations:
Current portion of acquisition debt	$	1,027	$	913
Current portion of finance lease obligations	323		331
Current portion of operating lease obligations	2,082		2,057
Total current portion of debt and lease obligations	$	3,432	$	3,301
Accrued and other liabilities:
Accrued salaries and wages	$	1,392	$	3,307
Accrued incentive compensation	11,139		5,964
Accrued vacation	3,271		3,440
Accrued insurance	3,016		3,507
Accrued interest	2,291		8,888
Accrued ad valorem and franchise taxes	435		1,059
Employer payroll tax deferral	1,773		1,773
Accrued commissions	634		912
Perpetual care trust payable	908		1,097
Income tax payable	798		4,392
Other accrued liabilities	1,825		1,604
Unrecognized tax benefit	3,656		3,656
Total accrued and other liabilities	$	31,138	$	39,599
Other long-term liabilities:
Incentive compensation	$	2,975	$	351
Employer payroll tax deferral	1,773		1,773
Accrued severance	—		553
Total other long-term liabilities	$	4,748	$	2,677

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Basis of Presentation and Summary of Significant Accounting Policies (Operations) (Details) $ in Thousands		3 Months Ended		9 Months Ended
	Jan. 03, 2020 USD ($) funeral_home_and_cemetery	Mar. 31, 2021 USD ($) segment states divestiture funeral_homes cemeteries	Mar. 31, 2020 USD ($)	Sep. 30, 2021	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Dec. 31, 2020 USD ($)
Organization Description and Operations [Line Items]
Depreciation expense		$ 3,400	$ 3,600
Number of business segments | segment		2
Amortization Of Cemetery Property		$ 1,500	900
Trade and financed receivables		$ 22,278					$ 23,678
The percentage of trust assets in custody of institution receiving trust management services		80.00%
Accounts receivable, net of allowance for bad debts		$ 25,585					25,103
Preneed receivables		21,533					21,081
Bad debt expense		588	690
Income Tax Expense (Benefit), Net Of Uncertain Tax Positions		$ (5,641)	$ 2,150
Income taxes before discrete items		31.00%	33.60%
Goodwill, Impairment Loss		$ 0				$ 13,632
Unearned finance charges associated with receivables		4,508					4,348
Amortization of capitalized commissions and non-compete agreements		152	$ 141
Accumulated Amortization, Property, Plant, and Equipment		$ (48,100)					(46,600)
Option to renew lease		26 years
Property, plant and equipment, gross							$ 101,100
Proceeds from divestitures and sale of other assets		$ 2,800	78
Property, Plant and Equipment, Disposals		1,500
Property, Plant and Equipment, Additions		(4,300)	(2,700)
Total benefit for income taxes		$ 5,641	$ (2,150)
Number of Businesses Sold | divestiture		2
Funeral And Cemetery [Member]
Organization Description and Operations [Line Items]
Threshold period past due in which statements are sent		30 days
Threshold period past due in which past due notification letters are sent		45 days
Cemetery
Organization Description and Operations [Line Items]
Threshold period past due in which past due notification letters are sent		15 days
Funeral homes [Member]
Organization Description and Operations [Line Items]
Number of owned and operated funeral homes (in Funeral Homes) | funeral_homes		173
Number of states in which Company operates | states		26
Revenue, Percentage		75.00%
Cemeteries [Member]
Organization Description and Operations [Line Items]
Number of states in which Company operates | states		12
Number of owned and operated cemeteries (in Cemetaries) | cemeteries		32
Revenue, Percentage		25.00%
Lafayette, California [Member]
Organization Description and Operations [Line Items]
Number of Businesses Acquired | funeral_home_and_cemetery	1
Purchase price	$ 33,000
Payments to acquire businesses		$ 28,000			$ 5,000
Minimum [Member]
Organization Description and Operations [Line Items]
Service Contract, Term		8 years
Lessee, Operating Lease, Term of Contract		1 year
Lessee, Finance Lease, Term of Contract		10 years
Maximum [Member]
Organization Description and Operations [Line Items]
Service Contract, Term		10 years		10 years
Lessee, Operating Lease, Term of Contract		19 years
Lessee, Finance Lease, Term of Contract		40 years

XML

Basis of Presentation and Summary of Significant Accounting Policies (PPE) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 414,450		$ 414,484
Unearned finance charges associated with receivables	4,508		4,348
Provision for bad debt and credit losses	588	$ 690
Property, plant and equipment, gross			101,100
Accumulated Amortization, Property, Plant, and Equipment	48,100		46,600
Amortization Of Cemetery Property	1,500	900
Less: accumulated depreciation	(147,395)		(145,433)
Property, plant and equipment, net	267,055		269,051
Depreciation expense	$ 3,400	$ 3,600
Income taxes before discrete items	31.00%	33.60%
Unrecognized tax benefit	$ 3,656		3,656
Land [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	81,981		82,615
Buildings and improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	240,988		240,567
Furniture, equipment and automobiles [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 91,481		$ 91,302

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Basis of Presentation and Summary of Significant Accounting Policies Preneed Receivables (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Preneed cemetery receivables	$ 48,897	$ 47,222
Less: balances due on undelivered cemetery preneed contracts	(8,540)	(7,919)
Preneed cemetery receivables, net	$ 21,533	$ 21,081

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Basis of Presentation and Summary of Significant Accounting Policies Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Income (loss) before income taxes	$ 18,574	$ (6,347)
Income Tax Expense (Benefit)	$ (5,758)	$ 2,136
Income taxes before discrete items	31.00%	33.60%
Total benefit for income taxes	$ 5,641	$ (2,150)

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Basis of Presentation and Summary of Significant Accounting Policies Performance Obligation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Revenue from External Customer [Line Items]
Tax adjustment related to discrete items	$ (117)	$ (14)
Term of sales contract for cemetery interment rights, maximum (in Duration)	5 years
Funeral | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue from External Customer [Line Items]
Revenue, Remaining Performance Obligation, Amount			$ 8,200
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period			10 years
Funeral | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Revenue from External Customer [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 8,100
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	10 years
Cemetery | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue from External Customer [Line Items]
Revenue, Remaining Performance Obligation, Amount			$ 7,900
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period			8 years
Cemetery | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Revenue from External Customer [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 8,500
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	8 years

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Recently Issued Accounting Standards - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accounting Changes and Error Corrections [Abstract]
Operating lease right-of-use assets	$ 20,747	$ 21,201
Present value of lease liabilities	$ 21,933

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Recently Issued Accounting Standards - Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid expenses	$ 1,913	$ 1,919
Operating lease right-of-use assets	20,747	21,201
Assets	1,157,726	1,145,825
Other long-term liabilities	2,677	4,748
Current portion of operating lease obligations	2,057	2,082
Obligations under operating leases, net of current portion	19,876	20,302
Liabilities	$ 906,223	$ 905,323

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Revenue From Contracts With Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total	$ 96,637	$ 77,490
Funeral And Cemetery Services [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total	47,757	40,732
Merchandise [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total	27,885	22,986
Cemetery Interment Rights [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total	14,011	8,285
Other Revenue [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total	6,984	5,487
Funeral
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total	71,774	61,742
Funeral | Funeral And Cemetery Services [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total	43,522	37,559
Funeral | Merchandise [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total	24,461	20,700
Funeral | Cemetery Interment Rights [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total	0	0
Funeral | Other Revenue [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total	3,791	3,483
Cemetery
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total	24,863	15,748
Cemetery | Funeral And Cemetery Services [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total	4,235	3,173
Cemetery | Merchandise [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total	3,424	2,286
Cemetery | Cemetery Interment Rights [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total	14,011	8,285
Cemetery | Other Revenue [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total	$ 3,193	$ 2,004

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Revenue From Contracts With Customers Deferred Revenue (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Receivables from Preneed Funeral Trusts	$ (16,976)	$ (16,844)

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Revenue From Contracts With Customers Narrative (Details) - segment	3 Months Ended	9 Months Ended
	Mar. 31, 2021	Sep. 30, 2021
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Number of business segments	2
Minimum [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Service Contract, Term	8 years
Maximum [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Service Contract, Term	10 years	10 years

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Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 391,972	$ 392,978	$ 398,292

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Acquisitions (Assets Acquired) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill Recorded	$ 391,972	$ 392,978	$ 398,292

XML

Acquisitions Purchase Accounting (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 391,972	$ 392,978	$ 398,292

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Goodwill (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2021 USD ($) divestiture	Sep. 30, 2019 USD ($)
Goodwill [Roll Forward]
Goodwill at the beginning of year	$ 392,978	$ 398,292
Increase in goodwill related to acquisitions	0	14,054
Decrease in goodwill related to divestitures	(1,006)	(5,736)
Decrease in goodwill related to impairments	0	$ (13,632)
Goodwill at the end of the period	$ 391,972
Number of Businesses Sold | divestiture	2
Number of Businesses Sold (Goodwill Allocation) | divestiture	1

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DIVESTED OPERATIONS (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) divestiture	Mar. 31, 2020 USD ($)
Discontinued Operations and Disposal Groups [Abstract]
Number of Businesses Sold | divestiture	2
Proceeds from divestitures and sale of other assets | $	$ 2,800	$ 78

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DIVESTED OPERATIONS Divested business (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue	$ 282	$ 0
Operating income	60	0
Net loss on divestitures	308	0
Income tax expense	(114)	0
Net income from divested operations, after tax	$ 254	$ 0

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Trust Investments (Components of preneed cemetery trust investments) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Debt and Equity Securities, FV-NI [Line Items]
Preneed cemetery trust investments	$ 92,363	$ 86,604
Preneed Cemetery Trust Investments [Member]
Debt and Equity Securities, FV-NI [Line Items]
Preneed cemetery trust investments, at market value	94,882	89,081
Less: allowance for contract cancellation	(2,519)	(2,477)
Preneed cemetery trust investments	92,363	86,604
Available-for-sale Securities, Amortized Cost Basis	83,953	82,573
Unrealized Gains	14,424	13,856
Unrealized Losses	(4,716)	(8,341)
Fair Market Value	93,661	88,088
Preneed Cemetery Trust Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member]
Debt and Equity Securities, FV-NI [Line Items]
Available-for-sale Securities, Amortized Cost Basis	27
Unrealized Gains	1
Unrealized Losses	0
Fair Market Value	28
Preneed Funeral Trust Investments [Member]
Debt and Equity Securities, FV-NI [Line Items]
Preneed cemetery trust investments, at market value	108,131	104,166
Less: allowance for contract cancellation	(2,930)	(2,931)
Available-for-sale Securities, Amortized Cost Basis	97,681	97,700
Unrealized Gains	13,504	13,125
Unrealized Losses	(4,185)	(7,570)
Fair Market Value	107,000	$ 103,255
Preneed Funeral Trust Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member]
Debt and Equity Securities, FV-NI [Line Items]
Available-for-sale Securities, Amortized Cost Basis	26
Unrealized Gains	1
Unrealized Losses	0
Fair Market Value	$ 27

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Trust Investments (Cost and fair market values associated with preneed cemetery trust investments) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Preneed Cemetery Trust Investments [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	$ 83,953	$ 82,573
Unrealized Gains	14,424	13,856
Unrealized Losses	(4,716)	(8,341)
Fair Market Value	93,661	88,088
Preneed cemetery trust investments	$ 94,882	$ 89,081
Preneed cemetery trust investments, fair market value as a percentage of cost (in Percent)	111.60%	106.70%
Preneed Cemetery Trust Investments [Member] | Mortgage-backed securities
Debt and Equity Securities, FV-NI [Line Items]
Cost		$ 272
Unrealized Gains		0
Unrealized Losses		(159)
Fair Market Value		113
Preneed Cemetery Trust Investments [Member] | Accrued Investment Income [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	$ 1,221	993
Fair Market Value	1,221	993
Preneed Funeral Trust Investments [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	97,681	97,700
Unrealized Gains	13,504	13,125
Unrealized Losses	(4,185)	(7,570)
Fair Market Value	107,000	103,255
Preneed cemetery trust investments	$ 108,131	$ 104,166
Preneed cemetery trust investments, fair market value as a percentage of cost (in Percent)	109.50%	105.70%
Preneed Funeral Trust Investments [Member] | Accrued Investment Income [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	$ 1,131	$ 911
Fair Market Value	1,131	911
Fair Value, Inputs, Level 1 [Member] | Preneed Cemetery Trust Investments [Member] | Cash and money market accounts [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	1,464	1,859
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Market Value	1,464	1,859
Fair Value, Inputs, Level 1 [Member] | Preneed Cemetery Trust Investments [Member] | Common stock
Debt and Equity Securities, FV-NI [Line Items]
Cost	31,925	30,253
Unrealized Gains	7,912	7,642
Unrealized Losses	(3,508)	(6,601)
Fair Market Value	36,329	31,294
Fair Value, Inputs, Level 1 [Member] | Preneed Funeral Trust Investments [Member] | Cash and money market accounts [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	18,119	18,478
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Market Value	18,119	18,478
Fair Value, Inputs, Level 1 [Member] | Preneed Funeral Trust Investments [Member] | Common stock
Debt and Equity Securities, FV-NI [Line Items]
Cost	29,618	28,327
Unrealized Gains	7,546	7,364
Unrealized Losses	(3,120)	(6,052)
Fair Market Value	34,044	29,639
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Debt Security, Government, Non-US [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	15,996	15,953
Unrealized Gains	2,244	2,083
Unrealized Losses	(620)	(702)
Fair Market Value	17,620	17,334
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Corporate Debt [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	14,509	14,856
Unrealized Gains	1,849	1,820
Unrealized Losses	(91)	(358)
Fair Market Value	16,267	16,318
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Preferred Stock [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	11,922	11,886
Unrealized Gains	689	980
Unrealized Losses	(360)	(336)
Fair Market Value	12,251	12,530
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Mortgage-backed securities
Debt and Equity Securities, FV-NI [Line Items]
Cost	0
Unrealized Gains	0
Unrealized Losses	0
Fair Market Value	0
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Debt Security, Government, Non-US [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	14,959	15,144
Unrealized Gains	2,142	2,018
Unrealized Losses	(551)	(634)
Fair Market Value	16,550	16,528
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Corporate Debt [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	12,826	13,292
Unrealized Gains	1,639	1,638
Unrealized Losses	(87)	(310)
Fair Market Value	14,378	14,620
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Preferred Stock [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	10,816	10,944
Unrealized Gains	637	900
Unrealized Losses	(340)	(298)
Fair Market Value	$ 11,113	11,546
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Mortgage-backed securities
Debt and Equity Securities, FV-NI [Line Items]
Cost		293
Unrealized Gains		1
Unrealized Losses		(155)
Fair Market Value		$ 139

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Trust Investments (Estimated maturities of fixed preneed cemetery trust income securities) (Details) - Preneed Cemetery Trust Investments [Member] $ in Thousands	Mar. 31, 2021 USD ($)
Debt and Equity Securities, FV-NI [Line Items]
Due in one year or less	$ 0
Due in one to five years	13,602
Due in five to ten years	8,505
Thereafter	24,031
Total	$ 46,138

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Trust Investments (Unrealized losses on cemetery merchandise and service trust investments) (Details) - Preneed Cemetery Trust Investments [Member] - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Gain (Loss) on Securities [Line Items]
In Loss Position Less than 12 months	$ 7,237	$ 4,010
In Loss Position Less than 12 months	(447)	(274)
In Loss Position Greater than 12 months	2,028	5,074
In Loss Position Greater than 12 months	(624)	(1,281)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	9,265	9,084
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(1,071)	(1,555)
Available-for-sale Securities, Amortized Cost Basis	83,953	82,573
Unrealized Gains	14,424	13,856
Foreign debt
Gain (Loss) on Securities [Line Items]
In Loss Position Less than 12 months	2,590	2,517
In Loss Position Less than 12 months	(114)	(57)
In Loss Position Greater than 12 months	509	371
In Loss Position Greater than 12 months	(506)	(645)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	3,099	2,888
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(620)	(702)
Corporate Debt [Member]
Gain (Loss) on Securities [Line Items]
In Loss Position Less than 12 months	735	784
In Loss Position Less than 12 months	(9)	(99)
In Loss Position Greater than 12 months	682	542
In Loss Position Greater than 12 months	(82)	(259)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	1,417	1,326
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(91)	(358)
Preferred stock
Gain (Loss) on Securities [Line Items]
In Loss Position Less than 12 months	3,912	709
In Loss Position Less than 12 months	(324)	(118)
In Loss Position Greater than 12 months	837	4,049
In Loss Position Greater than 12 months	(36)	(218)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	4,749	4,758
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(360)	(336)
Mortgage-backed securities
Gain (Loss) on Securities [Line Items]
In Loss Position Less than 12 months		0
In Loss Position Less than 12 months		0
In Loss Position Greater than 12 months		112
In Loss Position Greater than 12 months		(159)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value		112
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss		(159)
Available-for-sale Securities, Amortized Cost Basis		272
Unrealized Gains		0
Fair Value, Inputs, Level 1 [Member] | Common stock
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	31,925	30,253
Unrealized Gains	7,912	7,642
Fair Value, Inputs, Level 2 [Member] | Corporate Debt [Member]
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	14,509	14,856
Unrealized Gains	1,849	$ 1,820
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	0
Unrealized Gains	$ 0

XML

Trust Investments (Preneed cemetery trust investment security transactions) (Details) - Preneed Cemetery Trust Investments [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Debt and Equity Securities, FV-NI [Line Items]
Unrealized Gain (Loss) on Investments	$ 9,708	$ (16,305)
Interest Income and Other, Net [Member]
Debt and Equity Securities, FV-NI [Line Items]
Investment income	467	319
Realized gain, net	4,092	1,916
Realized losses	(2,518)	(1,372)
Expenses and taxes	(327)	(187)
Increase (decrease) in deferred preneed cemetery receipts held in trust	$ (11,422)	$ 15,629

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Trust Investments (Purchases and sales of investments in preneed cemetery trusts) (Details) - Preneed Cemetery Trust Investments [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Debt and Equity Securities, FV-NI [Line Items]
Purchases	$ (8,411)	$ (18,857)
Sales	$ 8,049	$ 13,231

XML

Trust Investments (Components of preneed funeral trust investments) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Debt and Equity Securities, FV-NI [Line Items]
Preneed funeral trust investments	$ 105,201	$ 101,235
Preneed Funeral Trust Investments [Member]
Debt and Equity Securities, FV-NI [Line Items]
Preneed funeral trust investments, at fair value	108,131	104,166
Less: allowance for contract cancellation	(2,930)	(2,931)
Preneed funeral trust investments	105,201	101,235
Available-for-sale Securities, Amortized Cost Basis	97,681	97,700
Unrealized Gains	13,504	13,125
Unrealized Losses	(4,185)	(7,570)
Fair Market Value	107,000	$ 103,255
Preneed Funeral Trust Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member]
Debt and Equity Securities, FV-NI [Line Items]
Available-for-sale Securities, Amortized Cost Basis	26
Unrealized Gains	1
Unrealized Losses	0
Fair Market Value	$ 27

XML

Trust Investments (Cost and fair market value associated with preneed funeral trust investments) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Preneed Cemetery Trust Investments [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	$ 83,953	$ 82,573
Unrealized Gains	14,424	13,856
Unrealized Losses	(4,716)	(8,341)
Fair Market Value	93,661	88,088
Preneed cemetery trust investments	$ 94,882	$ 89,081
Preneed cemetery trust investments, fair market value as a percentage of cost (in Percent)	111.60%	106.70%
Preneed Cemetery Trust Investments [Member] | Mortgage-backed securities
Debt and Equity Securities, FV-NI [Line Items]
Cost		$ 272
Unrealized Gains		0
Unrealized Losses		(159)
Fair Market Value		113
Preneed Cemetery Trust Investments [Member] | Accrued Investment Income [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	$ 1,221	993
Fair Market Value	1,221	993
Preneed Funeral Trust Investments [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	97,681	97,700
Unrealized Gains	13,504	13,125
Unrealized Losses	(4,185)	(7,570)
Fair Market Value	107,000	103,255
Preneed cemetery trust investments	$ 108,131	$ 104,166
Preneed cemetery trust investments, fair market value as a percentage of cost (in Percent)	109.50%	105.70%
Preneed Funeral Trust Investments [Member] | Accrued Investment Income [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	$ 1,131	$ 911
Fair Market Value	1,131	911
Fair Value, Inputs, Level 1 [Member] | Preneed Cemetery Trust Investments [Member] | Cash and Money Market Accounts [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	1,464	1,859
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Market Value	1,464	1,859
Fair Value, Inputs, Level 1 [Member] | Preneed Cemetery Trust Investments [Member] | Common stock
Debt and Equity Securities, FV-NI [Line Items]
Cost	31,925	30,253
Unrealized Gains	7,912	7,642
Unrealized Losses	(3,508)	(6,601)
Fair Market Value	36,329	31,294
Fair Value, Inputs, Level 1 [Member] | Preneed Funeral Trust Investments [Member] | Cash and Money Market Accounts [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	18,119	18,478
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Market Value	18,119	18,478
Fair Value, Inputs, Level 1 [Member] | Preneed Funeral Trust Investments [Member] | U.S. Treasury Debt [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	816	819
Unrealized Gains	5	6
Unrealized Losses	0	0
Fair Market Value	821	825
Fair Value, Inputs, Level 1 [Member] | Preneed Funeral Trust Investments [Member] | Common stock
Debt and Equity Securities, FV-NI [Line Items]
Cost	29,618	28,327
Unrealized Gains	7,546	7,364
Unrealized Losses	(3,120)	(6,052)
Fair Market Value	34,044	29,639
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Debt Security, Government, Non-US [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	15,996	15,953
Unrealized Gains	2,244	2,083
Unrealized Losses	(620)	(702)
Fair Market Value	17,620	17,334
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Corporate Debt [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	14,509	14,856
Unrealized Gains	1,849	1,820
Unrealized Losses	(91)	(358)
Fair Market Value	16,267	16,318
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Preferred Stock [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	11,922	11,886
Unrealized Gains	689	980
Unrealized Losses	(360)	(336)
Fair Market Value	12,251	12,530
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Mortgage-backed securities
Debt and Equity Securities, FV-NI [Line Items]
Cost	0
Unrealized Gains	0
Unrealized Losses	0
Fair Market Value	0
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Equity Securities [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	27
Unrealized Gains	1
Unrealized Losses	0
Fair Market Value	28
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Fixed Income [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	8,110	7,494
Unrealized Gains	1,729	1,331
Unrealized Losses	(137)	(185)
Fair Market Value	9,702	8,640
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Debt Security, Government, Non-US [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	14,959	15,144
Unrealized Gains	2,142	2,018
Unrealized Losses	(551)	(634)
Fair Market Value	16,550	16,528
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Corporate Debt [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	12,826	13,292
Unrealized Gains	1,639	1,638
Unrealized Losses	(87)	(310)
Fair Market Value	14,378	14,620
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Preferred Stock [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	10,816	10,944
Unrealized Gains	637	900
Unrealized Losses	(340)	(298)
Fair Market Value	11,113	11,546
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Mortgage-backed securities
Debt and Equity Securities, FV-NI [Line Items]
Cost		293
Unrealized Gains		1
Unrealized Losses		(155)
Fair Market Value		139
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Equity Securities [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	26
Unrealized Gains	1
Unrealized Losses	0
Fair Market Value	27
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Fixed Income Securities [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	6,600	6,475
Unrealized Gains	1,534	1,198
Unrealized Losses	(87)	(121)
Fair Market Value	8,047	7,552
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Other Investments [Member]
Debt and Equity Securities, FV-NI [Line Items]
Cost	3,901	3,928
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Market Value	$ 3,901	$ 3,928

XML

Trust Investments (Estimated maturities of fixed preneed funeral trust income securities) (Details) - Preneed Funeral Trust Investments [Member] $ in Thousands	Mar. 31, 2021 USD ($)
Debt and Equity Securities, FV-NI [Line Items]
Due in one year or less	$ 821
Due in one to five years	12,143
Due in five to ten years	7,855
Thereafter	22,043
Total	$ 42,862

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Trust Investments (Preneed funeral trust investment security transactions) (Details) - Preneed Funeral Trust Investments [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Debt and Equity Securities, FV-NI [Line Items]
Unrealized Gain (Loss) on Investments	$ 9,319	$ (15,274)
Interest Income and Other, Net [Member]
Debt and Equity Securities, FV-NI [Line Items]
Investment income	369	258
Realized gain, net	3,871	2,551
Realized losses	(2,368)	(1,129)
Expenses and taxes	(196)	(97)
Decrease in deferred preneed funeral receipts held in trust	$ (10,995)	$ 13,691

XML

Trust Investments (Purchases and sales of investments in preneed funeral trusts) (Details) - Preneed Funeral Trust Investments [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Debt and Equity Securities, FV-NI [Line Items]
Purchases	$ (7,628)	$ (18,538)
Sales	$ 7,524	$ 15,968

XML

Trust Investments (Unrealized losses on preneed funeral trust investments) (Details) - Preneed Funeral Trust Investments [Member] - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Gain (Loss) on Securities [Line Items]
In Loss Position Less than 12 months	$ 6,725	$ 3,494
In Loss Position Less than 12 months	(420)	(238)
In Loss Position Greater than 12 months	1,709	4,918
In Loss Position Greater than 12 months	(558)	(1,159)
Total	8,434	8,412
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(978)	(1,397)
Foreign debt
Gain (Loss) on Securities [Line Items]
In Loss Position Less than 12 months	2,270	2,225
In Loss Position Less than 12 months	(100)	(55)
In Loss Position Greater than 12 months	456	337
In Loss Position Greater than 12 months	(451)	(579)
Total	2,726	2,562
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(551)	(634)
Corporate Debt [Member]
Gain (Loss) on Securities [Line Items]
In Loss Position Less than 12 months	705	763
In Loss Position Less than 12 months	(9)	(96)
In Loss Position Greater than 12 months	654	528
In Loss Position Greater than 12 months	(78)	(214)
Total	1,359	1,291
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(87)	(310)
Preferred stock
Gain (Loss) on Securities [Line Items]
In Loss Position Less than 12 months	3,750	506
In Loss Position Less than 12 months	(311)	(87)
In Loss Position Greater than 12 months	599	3,942
In Loss Position Greater than 12 months	(29)	(211)
Total	4,349	4,448
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ (340)	(298)
Collateralized Mortgage Backed Securities [Member]
Gain (Loss) on Securities [Line Items]
In Loss Position Less than 12 months		0
In Loss Position Less than 12 months		0
In Loss Position Greater than 12 months		111
In Loss Position Greater than 12 months		(155)
Total		111
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss		$ (155)

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Trust Investments (Narrative) (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Preneed Cemetery Trust Investments [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	$ 46,138
Preneed Funeral Trust Investments [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Amortized Cost	$ 42,862

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Trust Investments (Components of Care trusts’ corpus) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Gain (Loss) on Securities [Line Items]
Care trusts’ corpus	$ 75,360	$ 69,707
Perpetual Care Trust Invesments [Member]
Gain (Loss) on Securities [Line Items]
Cemetery perpetual care trust investments, at market value	75,815	70,828
Obligations due from trust	(455)	(1,121)
Care trusts’ corpus	$ 75,360	$ 69,707

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Trust Investments (Cost and fair market values associated with the trust investments held in perpetual care trust) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Perpetual Care Trust Invesments [Member]
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	$ 67,123	$ 65,665
Unrealized Gains	11,684	11,128
Unrealized Losses	(3,985)	(6,773)
Fair Market Value	74,822	70,020
Preneed cemetery trust investments	$ 75,815	$ 70,828
Preneed cemetery trust investments, fair market value as a percentage of cost (in Percent)	111.50%	106.60%
Perpetual Care Trust Invesments [Member] | Accrued Investment Income [Member]
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	$ 993	$ 808
Fair Market Value	993	808
Preneed Funeral Trust Investments [Member]
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	97,681	97,700
Unrealized Gains	13,504	13,125
Unrealized Losses	(4,185)	(7,570)
Fair Market Value	107,000	103,255
Preneed cemetery trust investments	$ 108,131	$ 104,166
Preneed cemetery trust investments, fair market value as a percentage of cost (in Percent)	109.50%	105.70%
Preneed Funeral Trust Investments [Member] | Accrued Investment Income [Member]
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	$ 1,131	$ 911
Fair Market Value	1,131	911
Fair Value, Inputs, Level 1 [Member] | Perpetual Care Trust Invesments [Member] | Cash and Money Market Accounts [Member]
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	528	686
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Market Value	528	686
Fair Value, Inputs, Level 1 [Member] | Perpetual Care Trust Invesments [Member] | Common stock
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	25,151	23,662
Unrealized Gains	6,436	6,108
Unrealized Losses	(2,945)	(5,255)
Fair Market Value	28,642	24,515
Fair Value, Inputs, Level 1 [Member] | Preneed Funeral Trust Investments [Member] | Cash and Money Market Accounts [Member]
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	18,119	18,478
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Market Value	18,119	18,478
Fair Value, Inputs, Level 1 [Member] | Preneed Funeral Trust Investments [Member] | Common stock
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	29,618	28,327
Unrealized Gains	7,546	7,364
Unrealized Losses	(3,120)	(6,052)
Fair Market Value	34,044	29,639
Fair Value, Inputs, Level 2 [Member] | Perpetual Care Trust Invesments [Member] | Debt Security, Government, Non-US [Member]
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	12,642	12,539
Unrealized Gains	1,775	1,641
Unrealized Losses	(508)	(582)
Fair Market Value	13,909	13,598
Fair Value, Inputs, Level 2 [Member] | Perpetual Care Trust Invesments [Member] | Corporate debt
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	11,525	11,684
Unrealized Gains	1,540	1,506
Unrealized Losses	(69)	(240)
Fair Market Value	12,996	12,950
Fair Value, Inputs, Level 2 [Member] | Perpetual Care Trust Invesments [Member] | Preferred Stock [Member]
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	10,518	10,444
Unrealized Gains	558	819
Unrealized Losses	(299)	(355)
Fair Market Value	10,777	10,908
Fair Value, Inputs, Level 2 [Member] | Perpetual Care Trust Invesments [Member] | Mortgage-backed securities
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis		206
Unrealized Gains		0
Unrealized Losses		(121)
Fair Market Value		85
Fair Value, Inputs, Level 2 [Member] | Perpetual Care Trust Invesments [Member] | Other Investments [Member]
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	6,739	6,444
Unrealized Gains	1,374	1,054
Unrealized Losses	(164)	(220)
Fair Market Value	7,949	7,278
Fair Value, Inputs, Level 2 [Member] | Perpetual Care Trust Invesments [Member] | Equity Securities [Member]
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	20
Unrealized Gains	1
Unrealized Losses
Fair Market Value	21
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Debt Security, Government, Non-US [Member]
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	14,959	15,144
Unrealized Gains	2,142	2,018
Unrealized Losses	(551)	(634)
Fair Market Value	16,550	16,528
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Corporate debt
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	12,826	13,292
Unrealized Gains	1,639	1,638
Unrealized Losses	(87)	(310)
Fair Market Value	14,378	14,620
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Preferred Stock [Member]
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	10,816	10,944
Unrealized Gains	637	900
Unrealized Losses	(340)	(298)
Fair Market Value	11,113	11,546
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Mortgage-backed securities
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis		293
Unrealized Gains		1
Unrealized Losses		(155)
Fair Market Value		139
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Fixed Income Securities [Member]
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	6,600	6,475
Unrealized Gains	1,534	1,198
Unrealized Losses	(87)	(121)
Fair Market Value	8,047	7,552
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Other Investments [Member]
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	3,901	3,928
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Market Value	3,901	$ 3,928
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Equity Securities [Member]
Gain (Loss) on Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	26
Unrealized Gains	1
Unrealized Losses	0
Fair Market Value	$ 27

XML

Trust Investments (Estimated maturities of the fixed income securities) (Details) - Perpetual Care Trust Invesments [Member] $ in Thousands	Mar. 31, 2021 USD ($)
Gain (Loss) on Securities [Line Items]
Due in one year or less	$ 0
Due in one to five years	10,149
Due in five to ten years	7,216
Thereafter	20,317
Total	$ 37,682

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Trust Investments (Fixed income securities within our perpetual care trust investment in an unrealized loss position) (Details) - Preneed Funeral Trust Investments [Member] - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair market value
In Loss Position Less than 12 months	$ 5,332	$ 3,462
In Loss Position Greater than 12 months	2,267	3,867
Total	7,599	7,329
Unrealized Losses
In Loss Position Less than 12 months	(332)	(308)
In Loss Position Greater than 12 months	(544)	(990)
Total	(876)	(1,298)
Foreign debt
Fair market value
In Loss Position Less than 12 months	1,800	1,728
In Loss Position Greater than 12 months	430	312
Total	2,230	2,040
Unrealized Losses
In Loss Position Less than 12 months	(79)	(43)
In Loss Position Greater than 12 months	(429)	(539)
Total	(508)	(582)
Corporate debt
Fair market value
In Loss Position Less than 12 months	559	592
In Loss Position Greater than 12 months	519	410
Total	1,078	1,002
Unrealized Losses
In Loss Position Less than 12 months	(7)	(74)
In Loss Position Greater than 12 months	(62)	(166)
Total	(69)	(240)
Preferred stock
Fair market value
In Loss Position Less than 12 months	2,973	1,142
In Loss Position Greater than 12 months	1,318	3,060
Total	4,291	4,202
Unrealized Losses
In Loss Position Less than 12 months	(246)	(191)
In Loss Position Greater than 12 months	(53)	(164)
Total	$ (299)	(355)
Mortgage-backed securities
Fair market value
In Loss Position Less than 12 months		0
In Loss Position Greater than 12 months		85
Total		85
Unrealized Losses
In Loss Position Less than 12 months		0
In Loss Position Greater than 12 months		(121)
Total		$ (121)

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Trust Investments (Perpetual care trust investment security transactions recorded in Other, net) (Details) - Preneed Funeral Trust Investments [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Gain (Loss) on Securities [Line Items]
Realized gains	$ 691	$ 709
Realized losses, net	(420)	(679)
Net change in Care trusts’ corpus	(7,970)	13,495
Interest Expense Net of Other Income
Gain (Loss) on Securities [Line Items]
Unrealized Gain (Loss) on Investments	$ 7,699	$ (13,525)

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Trust Investments (Perpetual care trust investment security transactions recorded in Other revenue) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Gain (Loss) on Securities [Line Items]
Total	$ 96,637	$ 77,490
Other Revenue [Member]
Gain (Loss) on Securities [Line Items]
Total	6,984	5,487
Other Revenue [Member] | Preneed Funeral Trust Investments [Member]
Gain (Loss) on Securities [Line Items]
Investment income	2,513	1,405
Realized losses, net	(138)	(36)
Total	$ 2,375	$ 1,369

XML

Trust Investments (Purchases and sales of investments in the perpetual care trusts) (Details) - Preneed Funeral Trust Investments [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Gain (Loss) on Securities [Line Items]
Purchases	$ (6,137)	$ (14,612)
Sales	$ 5,956	$ 12,694

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Receivables Accounts Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Trade and financed receivables	$ 22,278	$ 23,678
Other receivables	4,590	2,712
Allowance for credit losses	(1,283)	(1,287)
Accounts receivable, net	25,585	25,103
Allowance For Bad Debt And Contract Cancellation		1,287
Funeral
Segment Reporting Information [Line Items]
Trade and financed receivables	9,827	11,448
Other receivables	426	367
Allowance for credit losses	(284)	(327)
Accounts receivable, net	9,969	11,488
Allowance For Bad Debt And Contract Cancellation		327
Cemetery
Segment Reporting Information [Line Items]
Trade and financed receivables	12,451	12,230
Other receivables	2,769	2,144
Allowance for credit losses	(999)	(960)
Accounts receivable, net	14,221	13,414
Allowance For Bad Debt And Contract Cancellation		960
Corporate [Member]
Segment Reporting Information [Line Items]
Trade and financed receivables	0	0
Other receivables	1,395	201
Allowance for credit losses	0	0
Accounts receivable, net	$ 1,395	201
Allowance For Bad Debt And Contract Cancellation		$ 0

XML

Receivables (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	$ 1,283		$ 1,287
Term of sales contract for cemetery interment rights, maximum (in Duration)	5 years
Unearned finance charges associated with receivables	$ 4,508		4,348
Provision for bad debt and credit losses	588	$ 690
Preneed Cemetery Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	1,865		$ 1,644
Provision for bad debt and credit losses	$ 246

XML

Receivables (Preneed cemetery receivables) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Debt and Equity Securities, FV-NI [Line Items]
Preneed cemetery receivables	$ 48,897		$ 47,222
Unearned finance charges associated with receivables	(4,508)		(4,348)
Receivables From Preneed Funeral Trust Gross	44,389		42,874
Less: balances due on undelivered cemetery preneed contracts	(8,540)		(7,919)
Preneed cemetery receivables, net	21,533		21,081
Allowance for Contract Cancellations [Roll Forward]
Beginning balance	1,287
Provision	(588)	$ (690)
Ending balance	1,283
Trade and financed receivables	22,278		23,678
Receivables from Preneed Funeral Trusts	(16,976)		(16,844)
Preneed Funeral Trust Funds Allowance For Contract Cancellation And Credit Loss	(2,864)		(2,604)
Accounts Receivable, after Allowance for Credit Loss	(11,452)		(11,270)
Cemetery
Allowance for Contract Cancellations [Roll Forward]
Beginning balance	960
Ending balance	999
Trade and financed receivables	12,451		12,230
Preneed Cemetery Receivables [Member]
Allowance for Contract Cancellations [Roll Forward]
Beginning balance	1,644
Write-offs and cancellations	(25)
Provision	(246)
Ending balance	1,865
Cemetery interment rights
Debt and Equity Securities, FV-NI [Line Items]
Preneed cemetery receivables	38,108		36,696
Cemetery merchandise and services
Debt and Equity Securities, FV-NI [Line Items]
Preneed cemetery receivables	$ 10,789		$ 10,526

XML

Receivables (Aging of past due financing receivables) (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	$ 4,181
Current	44,716
Total Financing Receivables	48,897
Recognized Revenue [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	3,211
Current	32,953
Total Financing Receivables	36,164
Deferred Revenue [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	970
Current	11,763
Total Financing Receivables	12,733
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	807
Financing Receivables, 30 to 59 Days Past Due [Member] | Recognized Revenue [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	623
Financing Receivables, 30 to 59 Days Past Due [Member] | Deferred Revenue [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	184
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	544
Financing Receivables, 60 to 89 Days Past Due [Member] | Recognized Revenue [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	404
Financing Receivables, 60 to 89 Days Past Due [Member] | Deferred Revenue [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	140
Financing Receivables, 90 to 120 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	240
Financing Receivables, 90 to 120 Days Past Due [Member] | Recognized Revenue [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	194
Financing Receivables, 90 to 120 Days Past Due [Member] | Deferred Revenue [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	46
Financing Receivables, Greater Than 120 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	2,590
Financing Receivables, Greater Than 120 Days Past Due [Member] | Recognized Revenue [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	1,990
Financing Receivables, Greater Than 120 Days Past Due [Member] | Deferred Revenue [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Total Past Due	$ 600

XML

Receivables Allowance for credit losses by portfolio segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts Receivable, Credit Loss Expense (Reversal)	$ (342)
Accounts and Financing Receivable, Allowance for Credit Loss, Writeoff	653
Accounts Receivable, Allowance for Credit Loss, Recovery	(307)
Allowance for credit losses	(1,283)	$ (1,287)
Funeral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts Receivable, Credit Loss Expense (Reversal)	(203)
Accounts and Financing Receivable, Allowance for Credit Loss, Writeoff	553
Accounts Receivable, Allowance for Credit Loss, Recovery	(307)
Allowance for credit losses	(284)	(327)
Cemetery
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts Receivable, Credit Loss Expense (Reversal)	(139)
Accounts and Financing Receivable, Allowance for Credit Loss, Writeoff	100
Accounts Receivable, Allowance for Credit Loss, Recovery	0
Allowance for credit losses	$ (999)	$ (960)

XML

Receivables Amortized cost basis (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
2020	$ 7,913
2019	16,490
2018	9,585
2017	5,118
2016	2,814
Prior	2,469
Receivables From Preneed Funeral Trust Gross	$ 44,389	$ 42,874

XML

Receivables from Preneed Trusts (Receivables from preneed funeral trust funds) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Receivables From Preneed Trusts [Abstract]
Preneed trust funds, at cost	$ 17,502	$ 17,365
Less: Allowance for contract cancellation	(526)	(521)
Receivables from preneed trusts, net	$ 16,976	$ 16,844

XML

Receivables from Preneed Trusts Receivables from Preneed Trusts (Composition of Assets Held in Trusts) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair Value [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Assets held-in-trust	$ 17,581	$ 17,532
Fair Value [Member] | Cash and cash equivalents [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Assets held-in-trust	4,697	4,604
Fair Value [Member] | Fixed income investments [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Assets held-in-trust	10,473	10,355
Fair Value [Member] | Mutual funds and common stocks [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Assets held-in-trust	2,406	2,569
Fair Value [Member] | Annuities [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Assets held-in-trust	5	4
Historical Cost Basis [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Assets held-in-trust	17,502	17,365
Historical Cost Basis [Member] | Cash and cash equivalents [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Assets held-in-trust	4,697	4,604
Historical Cost Basis [Member] | Fixed income investments [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Assets held-in-trust	10,473	10,355
Historical Cost Basis [Member] | Mutual funds and common stocks [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Assets held-in-trust	2,327	2,402
Historical Cost Basis [Member] | Annuities [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Assets held-in-trust	$ 5	$ 4

XML

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 12, 2021	Dec. 31, 2020	Sep. 09, 2020	Mar. 19, 2014
Convertible Subordinated Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate percentage					2.75%
Carrying value of the liability component	$ 0	$ 200	$ 2,538	$ 0
Senior Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt measured at fair value	417,600
Line of Credit [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility, Secured, Floating Rate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of the liability component	28,300
Notes Payable, Other Payables [Member] | Acquisition Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of the liability component	$ 5,400

XML

Intangible and Other Non-Current Assets (Details) $ in Thousands	3 Months Ended			9 Months Ended
	Mar. 31, 2021 USD ($) divestiture	Sep. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Sep. 30, 2021	Dec. 31, 2020 USD ($)
Finite-Lived Intangible Assets [Line Items]
Other Assets, Noncurrent	$ 21				$ 51
Deferred Costs and Other Assets	29,502				29,542
Amortization of deferred financing costs	193		$ 200
Amortization of Intangible Assets	320		328
Amortization of capitalized commissions and non-compete agreements	152		141
Accumulated Amortization of Other Deferred Costs	$ 1,746				1,594
Number of Businesses Sold | divestiture	2
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Service Contract, Term	8 years
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Service Contract, Term	10 years			10 years
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Other Assets, Noncurrent	$ 23,565				23,565
Commissions [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Net	3,240				3,141
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Net	2,676				2,785
Finite-Lived Intangible Assets, Accumulated Amortization	3,361				$ 3,193
Amortization of Intangible Assets	$ 168		187
Noncompete Agreements [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Service Contract, Term	1 year
Noncompete Agreements [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Service Contract, Term	10 years
Credit Agreement 2018 [Member] | Revolving Credit Facility [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of deferred financing costs		$ 118	$ 126

XML

Intangible and Other Non-Current Assets - Aggregate amortization expense for our intangible assets (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Remainder of 2021	$ 459
2022	519
2023	446
2024	380
2025	373
Thereafter	499
Total amortization expense	2,676	$ 2,785
Commissions [Member]
Finite-Lived Intangible Assets [Line Items]
Remainder of 2021	437
2022	543
2023	488
2024	425
2025	359
Thereafter	988
Total amortization expense	$ 3,240	$ 3,141

XML

CREDIT FACILITY AND ACQUISITION DEBT (Long-term Debt Table) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Sep. 30, 2020	Mar. 31, 2020	Dec. 31, 2020
Debt Instrument [Line Items]
Accumulated Amortization, Debt Issuance Costs	$ 937,000			$ 819,000
Current maturities on long-term debt	(913,000)			(1,027,000)
Long-term debt, excluding current maturities	4,442,000			4,482,000
Revolving credit facility present accordion provisions	75,000,000.0
Credit Facility amortization of debt issuance costs	193,000		$ 200,000
Credit Agreement 2018 [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Carrying value of the liability component				47,200,000
Credit Facility amortization of debt issuance costs		$ 118,000	$ 126,000
Credit Agreement [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt issuance costs				(1,136,000)
Credit Agreement [Member] | Term Loan [Member]
Debt Instrument [Line Items]
Carrying value of the liability component	27,282,000			46,064,000
Notes Payable, Other Payables [Member] | Acquisition Debt, Deferred Purchase Price [Member]
Debt Instrument [Line Items]
Carrying value of the liability component	5,355,000			$ 5,509,000
Revolving Credit Facility [Member] | Credit Agreement [Member]
Debt Instrument [Line Items]
Debt issuance costs	$ (1,018,000)

XML

CREDIT FACILITY AND ACQUISITION DEBT (Narrative) (Details)		3 Months Ended			9 Months Ended
	Sep. 29, 2020 USD ($)	Mar. 31, 2021 USD ($)	Sep. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Sep. 30, 2020	Dec. 31, 2021	Mar. 12, 2021 USD ($)	Dec. 31, 2020 USD ($)	Sep. 09, 2020 USD ($)	Mar. 19, 2014
Debt Covenant To Actual Ratios [Line Items]
Repayments of Long-term Lines of Credit		$ 34,068,000		$ 33,000,000
Revolving credit facility present accordion provisions		75,000,000.0
Deferred payments	$ 2,100,000
Credit Facility amortization of debt issuance costs		193,000		200,000
Term Loan [Member]
Debt Covenant To Actual Ratios [Line Items]
Revolving credit facility, maximum borrowing capacity		190,000,000.0
Letter of Credit [Member]
Debt Covenant To Actual Ratios [Line Items]
Revolving credit facility, maximum borrowing capacity		15,000,000.0
Swingline [Member]
Debt Covenant To Actual Ratios [Line Items]
Revolving credit facility, maximum borrowing capacity		10,000,000.0
Senior Notes [Member]
Debt Covenant To Actual Ratios [Line Items]
Credit Facility amortization of debt issuance costs		74,000		67,000
Acquisition debt imputed interest expense		6,625,000		$ 6,625,000
Debt Instrument, Term				62 months
Credit Agreement [Member]
Debt Covenant To Actual Ratios [Line Items]
Acquisition debt imputed interest expense		$ 445,000		$ 1,230,000
Credit Agreement [Member] | Term Loan [Member]
Debt Covenant To Actual Ratios [Line Items]
Debt Instrument, Basis Spread on Variable Rate		3.125%
Convertible Subordinated Notes [Member]
Debt Covenant To Actual Ratios [Line Items]
Carrying value of the liability component		$ 0					$ 200,000	$ 2,538,000	$ 0
Credit Facility amortization of debt issuance costs		1,000		6,000
Stated interest rate percentage										2.75%
Acquisition debt imputed interest expense		$ 18,000		43,000
Prime Rate Option [Member] | Line of Credit [Member]
Debt Covenant To Actual Ratios [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.50%
Libor Margin Option [Member] | Line of Credit [Member]
Debt Covenant To Actual Ratios [Line Items]
Debt Instrument, Basis Spread on Variable Rate		2.50%
Series of Individually Immaterial Business Acquisitions [Member]
Debt Covenant To Actual Ratios [Line Items]
Acquisition debt imputed interest expense		$ 97,000		$ 127,000
Revolving Credit Facility, Secured, Floating Rate [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member]
Debt Covenant To Actual Ratios [Line Items]
Weighted average interest rate		3.30%		4.30%
Revolving Credit Facility, Secured, Floating Rate [Member] | Line of Credit [Member] | Revolving Credit Facility [Member]
Debt Covenant To Actual Ratios [Line Items]
Carrying value of the liability component		$ 28,300,000
Revolving Credit Facility, Secured, Floating Rate [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | Ratio Actual [Member]
Debt Covenant To Actual Ratios [Line Items]
Ratio of indebtedness to net capital (in Ratio) (below at March 31, 2015)		2.00
Ratio of earnings to fixed cost obligations (in Ratio)		1.20
Revolving Credit Facility [Member] | Credit Agreement 2018 [Member]
Debt Covenant To Actual Ratios [Line Items]
Carrying value of the liability component								$ 47,200,000
Credit Facility amortization of debt issuance costs			$ 118,000	$ 126,000
Forecast | Ratio Actual [Member]
Debt Covenant To Actual Ratios [Line Items]
Ratio of indebtedness to net capital (in Ratio) (below at March 31, 2015)						5.50
Minimum [Member] | Ratio Actual [Member]
Debt Covenant To Actual Ratios [Line Items]
Ratio of indebtedness to net capital (in Ratio) (below at March 31, 2015)						0.25
Minimum [Member] | Deferred Purchase Price Notes [Member]
Debt Covenant To Actual Ratios [Line Items]
Debt Instrument, Imputed Interest Rate		7.30%
Debt Instrument, Term					5 years
Maximum [Member] | Deferred Purchase Price Notes [Member]
Debt Covenant To Actual Ratios [Line Items]
Debt Instrument, Imputed Interest Rate		10.00%
Debt Instrument, Term					20 years

XML

CREDIT FACILITY AND ACQUISITION DEBT Credit Facility (Details)	3 Months Ended
	Mar. 31, 2021 USD ($)	Sep. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2021	Dec. 31, 2020 USD ($)
Debt Instrument [Line Items]
Credit Facility amortization of debt issuance costs	$ 193,000		$ 200,000
Debt Instrument, Debt Compliance, EBITDA	0.50
Ratio Actual [Member] | Minimum [Member]
Debt Instrument [Line Items]
Ratio of indebtedness to net capital (in Ratio) (below at March 31, 2015)				0.25
Credit Agreement 2018 [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit Facility amortization of debt issuance costs		$ 118,000	$ 126,000
Carrying value of the liability component					$ 47,200,000
Line of Credit [Member] | Revolving Credit Facility, Secured, Floating Rate [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Carrying value of the liability component	28,300,000
Remaining borrowing capacity	$ 159,600,000
Line of Credit [Member] | Revolving Credit Facility, Secured, Floating Rate [Member] | Revolving Credit Facility [Member] | Ratio Actual [Member]
Debt Instrument [Line Items]
Ratio of indebtedness to net capital (in Ratio) (below at March 31, 2015)	2.00

XML

Convertible Subordinated Notes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 12, 2021	Dec. 31, 2020	Sep. 09, 2020	Mar. 19, 2014
Carrying Values of Liability and Equity Components, Convertible Subordinated Notes
Credit Facility amortization of debt issuance costs	$ 193,000	$ 200,000
Accumulated Amortization, Debt Issuance Costs	$ 937,000			$ 819,000
Convertible Subordinated Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Discount Rate		11.40%
Debt Instrument, Unamortized Debt Issuance Costs	3.10%	3.20%
Stated interest rate percentage						2.75%
Carrying Values of Liability and Equity Components, Convertible Subordinated Notes
Convertible subordinated notes, principal amount				2,559,000
Unamortized discount of liability component	$ 0			(20,000)
Debt issuance costs	0			(1,000)
Carrying value of the liability component	0		$ 200,000	2,538,000	$ 0
Carrying value of the equity component	0			319,000
Contractual coupon interest expense	18,000	$ 43,000
Accretion of discount, convertible subordinated notes	20,000	65,000
Credit Facility amortization of debt issuance costs	1,000	$ 6,000
Accumulated Amortization, Debt Issuance Costs	$ 64,000			$ 63,000

XML

Convertible Subordinated Notes Convertible Subordinated Notes (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 12, 2021	Dec. 31, 2020	Sep. 09, 2020	Mar. 19, 2014
Debt Instrument [Line Items]
Common Stock, Par or Stated Value Per Share	$ 0.01			$ 0.01
Credit Facility amortization of debt issuance costs	$ 193,000	$ 200,000
Interest Expense	7,584,000	8,428,000
Conversions and maturity of the convertible subordinated notes due 2021	3,980,000	0
Payments for Repurchase of Redeemable Convertible Preferred Stock, Cash Payment	3,800,000
Convertible Preferred Stock, Nonredeemable or Redeemable, Issuer Option, Value					$ 2,400,000
Additional Paid-in Capital
Debt Instrument [Line Items]
Adjustments to Additional Paid in Capital, Other	1,400,000
Convertible Subordinated Notes [Member]
Debt Instrument [Line Items]
Convertible subordinated notes, principal amount				$ 2,559,000
Stated interest rate percentage						2.75%
Acquisition debt imputed interest expense	18,000	43,000
Credit Facility amortization of debt issuance costs	1,000	$ 6,000
Debt Instrument, Discount Rate		11.40%
Accretion of discount, convertible subordinated notes	20,000	$ 65,000
Carrying value of the liability component	$ 0		$ 200,000	$ 2,538,000	$ 0
Debt Instrument, Unamortized Debt Issuance Costs	3.10%	3.20%

XML

Senior Notes (Details) - USD ($)		3 Months Ended
	May 31, 2018	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Debt Instrument [Line Items]
Repayments of Long-term Lines of Credit		$ 34,068,000	$ 33,000,000
Accumulated Amortization, Debt Premium		279,000		$ 221,000
Accumulated Amortization, Debt Issuance Costs		937,000		819,000
Accretion of debt discount, net of debt premium on senior notes		80,000	75,000
Credit Facility amortization of debt issuance costs		$ 193,000	$ 200,000
Redemption period		180 days
Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Term			62 months
Principal amount		$ 400,000,000		400,000,000
Accumulated amortization, debt discount		1,431,000		1,293,000
Accumulated Amortization, Debt Issuance Costs		570,000		$ 496,000
Long-term Debt, Fair Value		417,600,000
Acquisition debt imputed interest expense		6,625,000	$ 6,625,000
Credit Facility amortization of debt issuance costs		$ 74,000	67,000
Senior Notes [Member] | Period One
Debt Instrument [Line Items]
Redemption price percentage	100.00%
Percentage of principal amount redeemed	40.00%
Senior Notes [Member] | Period Two
Debt Instrument [Line Items]
Redemption price percentage	106.625%
Percentage of principal amount redeemed	60.00%
Senior Notes [Member] | Period Three
Debt Instrument [Line Items]
Redemption price percentage	101.00%
Senior Notes [Member] | Period Four
Debt Instrument [Line Items]
Redemption price percentage	100.00%
Senior Notes [Member] | Senior Note One [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate During Period		6.69%
Debt Instrument, Discount Rate		6.87%
Accretion of debt discount, net of debt premium on senior notes		$ 138,000	129,000
Senior Notes [Member] | Senior Note Two [Member]
Debt Instrument [Line Items]
Stated interest rate percentage		6.625%
Debt Instrument, Interest Rate During Period		6.88%
Debt Instrument, Discount Rate		6.20%
Accretion of debt discount, net of debt premium on senior notes		$ 58,000	$ 54,000

XML

Senior Notes Carrying value of the Senior Notes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Debt Instrument [Line Items]
Accumulated Amortization, Debt Issuance Costs	$ 937,000		$ 819,000
Accretion of debt discount, net of debt premium on senior notes	80,000	$ 75,000
Senior Notes [Member]
Debt Instrument [Line Items]
Principal amount	400,000,000		400,000,000
Debt discount, net of accumulated amortization of $1,293 and $1,431, respectively	(3,444,000)		(3,582,000)
Debt issuance costs, net of accumulated amortization of $496 and $570, respectively	(1,843,000)		(1,917,000)
Carrying value of the Senior Notes	396,122,000		395,968,000
Accumulated amortization, debt discount	1,431,000		1,293,000
Accumulated Amortization, Debt Issuance Costs	570,000		496,000
Senior Notes [Member] | Senior Note Two [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Premium	1,409,000		$ 1,467,000
Accretion of debt discount, net of debt premium on senior notes	$ 58,000	$ 54,000

XML

- Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease right-of-use assets	$ 20,747	$ 21,201
Present value of lease liabilities	$ 21,933

XML

- Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Operating lease cost	$ 960	$ 957
Short-term lease cost	49	32
Variable Lease, Cost	41	25
Depreciation of leased assets	108	109
Interest on lease liabilities	120	126
Total finance lease cost	228	235
Total lease cost	$ 1,278	$ 1,249

XML

- Cash flow (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Cash paid for operating leases included in operating activities	$ 965	$ 696
Cash paid for finance leases included in financing activities	$ 209	$ 200

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LEASES - Right-of-use Assets Obtained in Exchange for New Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 56	$ 77
Right-of-use assets obtained in exchange for new finance lease liabilities	$ 0	$ 0

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- Carrying Values of Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease right-of-use assets	$ 20,747	$ 21,201
Finance lease right-of-use assets	6,770	6,770
Accumulated depreciation	(2,113)	(2,005)
Finance lease right-of-use assets, net	4,657	4,765
Current portion of operating lease obligations	2,057	2,082
Current portion of finance lease obligations	331	323
Total current lease liabilities	2,388	2,405
Obligations under operating leases, net of current portion	19,876	20,302
Finance lease non-current liabilities	5,445	5,531
Total non-current lease liabilities	25,321	25,833
Total lease liabilities	$ 27,709	$ 28,238

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- Lease Term and Discount Rate (Details)	Mar. 31, 2021
Weighted-average remaining lease term (years)
Operating leases	10 years 8 months 12 days
Finance leases	5 years 7 months 6 days
Weighted-average discount rate
Operating leases	8.10%
Finance leases	8.20%

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- Maturities of Operating and Financing Lease Liabilities (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Operating
Remainder of 2021	$ 2,854
2022	3,439
2023	3,318
2024	3,301
2025	3,161
Thereafter	16,188
Total lease payments	32,261
Less: Interest	(10,328)
Present value of lease liabilities	21,933
Finance
Remainder of 2021	627
2022	860
2023	860
2024	791
2025	736
Thereafter	5,555
Total lease payments	9,429
Less: Interest	(3,653)
Present value of lease liabilities	$ 5,776

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Stockholders' Equity Stockholders' Equity (Stock-Based Compensation Plans) (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		12 Months Ended
	Feb. 19, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Class of Stock [Line Items]
Exercise of stock options, shares		101,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price		$ 24.18
Payment, Tax Withholding, Share-based Payment Arrangement		$ 642	$ 234
Stock Options
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		5 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value		$ 1,300
Proceeds from Stock Options Exercised		147
Payment, Tax Withholding, Share-based Payment Arrangement		$ 295
Stock Options | Maximum [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		10 years
Stock Options | Black-Scholes
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		701,400
Share price at grant date		$ 34.79
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Options, Grants in Period, Aggregate Grant Date Market Value		$ 7,100
Stock Options | Monte-Carlo Pricing Model
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		150,000
Share price at grant date		$ 34.79
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Options, Grants in Period, Aggregate Grant Date Market Value		$ 1,700
Restricted Stock Units (RSUs) [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		3 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		9,300	10,200
Performance Shares [Member]
Class of Stock [Line Items]
Share-based Goods and Nonemployee Services Transaction, Modification of Terms, Incremental Compensation Cost				$ 1,700
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	237,500	27,948		368,921

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Stockholders' Equity (Narrative) (Details) $ / shares in Units, $ in Thousands				3 Months Ended					12 Months Ended
	Mar. 01, 2020 $ / shares	Feb. 19, 2020 USD ($) shares	Mar. 01, 2019 $ / shares	Jun. 30, 2021	Mar. 31, 2021 USD ($) director $ / shares shares	Dec. 31, 2020	Sep. 30, 2020	Mar. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield					1.15%
Number Of Directors | director					6
Directors compensation expense					$ 231			$ 201
Dividends declared per common share (in dollars per Share) | $ / shares	$ 0.100		$ 0.075		$ 0.1000			$ 0.075
Stock Repurchase Program, Remaining Authorized Repurchase Amount					$ 25,600
Stock Issued During Period, Shares, Employee Stock Purchase Plans | shares					18,182			26,294
Employee Stock Purchase Plan Weighted Average Purchase Price Of Shares Purchased (in USD per share) | $ / shares					$ 26.32			$ 13.73
Expected holding period (years)					5 years
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares					9,300			10,200
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Grants in Period, Aggregate Grant Date Market Value					$ 324			$ 255
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares					$ 34.79			$ 25.00
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					3 years
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield					0.01%
Share-based compensation expense					$ 206			$ 163
Expected volatility					48.14%
Risk-free interest rate					0.10%	0.09%	0.09%
Expected holding period (years)					9 months	6 months	3 months
ESPP | Forecast
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate				0.10%
Expected holding period (years)				1 year
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense					$ 121			184
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage					33.00%
Share-based compensation expense					$ 560			$ 215
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					5 years
Stock Options | Monte-Carlo Pricing Model
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares					150,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Options, Grants in Period, Aggregate Grant Date Market Value					$ 1,700
Share price at grant date | $ / shares					$ 34.79
Stock Options | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					10 years
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares		237,500			27,948				368,921
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Granted In Period, Fair Value		$ 2,800
Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares					5,040			8,821
Share Based Compensation Arrangement By Share Based Payment Award, Options, Aggregate Grant Date Fair Value					$ 177			$ 147
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares					$ 35.19			$ 16.15
Officers And Key Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Directors compensation expense					$ 237			$ 121

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Stockholders' Equity (Weighted Average Assumptions) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	1.15%
Expected holding period (years)	5 years
Black-Scholes value	$ 10.14
Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.29%
Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.29%
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.01%
Expected volatility	48.14%
Risk-free interest rate	0.10%	0.09%	0.09%
Expected holding period (years)	9 months	6 months	3 months
Stock Options | Black-Scholes
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	36.72%
Risk-free interest rate	0.57%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	701,400
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Options, Grants in Period, Aggregate Grant Date Market Value	$ 7.1
Stock Options | Monte-Carlo Pricing Model
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	150,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Options, Grants in Period, Aggregate Grant Date Market Value	$ 1.7
Stock Options | Share-based Payment Arrangement, Tranche One | Monte-Carlo Pricing Model
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	1.15%
Expected volatility	34.08%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	50,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Options, Grants in Period, Aggregate Grant Date Market Value	$ 0.5
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights	53.39
Stock Options | Share-based Payment Arrangement, Tranche Two | Monte-Carlo Pricing Model
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	1.15%
Expected volatility	34.08%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	100,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Options, Grants in Period, Aggregate Grant Date Market Value	$ 1.2
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights	77.34

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Stockholders' Equity Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended
	Mar. 01, 2020	Mar. 01, 2019	Mar. 31, 2021	Mar. 31, 2020
Equity [Abstract]
Dividends declared per common share (in dollars per Share)	$ 0.100	$ 0.075	$ 0.1000	$ 0.075
Dividends	$ 1,799	$ 1,339

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Stockholders' Equity Performance Awards Assumptions (Details) - shares		3 Months Ended	12 Months Ended
	Feb. 19, 2020	Mar. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected holding period (years)		5 years
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	237,500	27,948	368,921

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Earnings Per Share (EPS Computations) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Less: Loss (earnings) allocated to unvested restricted stock	$ 12,933	$ (4,197)
Income (loss) attributable to common stockholders	(27)	13
Income (loss) attributable to common stockholders	$ 12,906	$ (4,184)
Denominator [Abstract]
Denominator for basic earnings per common share - weighted average shares outstanding	17,965,000	17,805,000
Effect of dilutive securities, share options (in shares)	234,000	0
Weighted average number of common and common equivalent shares outstanding for diluted EPS computation	18,199,000	17,805,000
Basic and Diluted earnings per common share:
Continuing operations (in dollars per Share)	$ 0.72	$ (0.23)
Continuing operations (in dollars per Share)	$ 0.71	$ (0.23)
Stock Options
Basic and Diluted earnings per common share:
Antidilutive securities excluded from computation of diluted EPS	0	1,034,084
Common Shares Excluded Due to Net Loss
Basic and Diluted earnings per common share:
Antidilutive securities excluded from computation of diluted EPS	27,085

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SEGMENT REPORTING (Revenue, pre-tax income and total and total assets by segments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Segment Reporting Information [Line Items]
Revenues	$ 96,637	$ 77,490
Operating Income (Loss)	26,246	2,150
Income before income taxes	18,574	(6,347)
Total assets	1,157,726		$ 1,145,825
Funeral
Segment Reporting Information [Line Items]
Revenues	71,774	61,742
Operating Income (Loss)	25,876	4,311
Income before income taxes	25,718	4,119
Total assets	763,761		764,535
Cemetery
Segment Reporting Information [Line Items]
Revenues	24,863	15,748
Operating Income (Loss)	9,493	4,167
Income before income taxes	9,476	4,105
Total assets	378,945		366,964
Corporate [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	(9,123)	(6,328)
Income before income taxes	(16,620)	(14,571)
Total assets	15,020		$ 14,326
Funeral And Cemetery Services [Member]
Segment Reporting Information [Line Items]
Revenues	47,757	40,732
Funeral And Cemetery Services [Member] | Funeral
Segment Reporting Information [Line Items]
Revenues	43,522	37,559
Funeral And Cemetery Services [Member] | Cemetery
Segment Reporting Information [Line Items]
Revenues	4,235	3,173
Merchandise [Member]
Segment Reporting Information [Line Items]
Revenues	27,885	22,986
Merchandise [Member] | Funeral
Segment Reporting Information [Line Items]
Revenues	24,461	20,700
Merchandise [Member] | Cemetery
Segment Reporting Information [Line Items]
Revenues	3,424	2,286
Cemetery Interment Rights [Member]
Segment Reporting Information [Line Items]
Revenues	14,011	8,285
Cemetery Interment Rights [Member] | Funeral
Segment Reporting Information [Line Items]
Revenues	0	0
Cemetery Interment Rights [Member] | Cemetery
Segment Reporting Information [Line Items]
Revenues	14,011	8,285
Other Revenue [Member]
Segment Reporting Information [Line Items]
Revenues	6,984	5,487
Other Revenue [Member] | Funeral
Segment Reporting Information [Line Items]
Revenues	3,791	3,483
Other Revenue [Member] | Cemetery
Segment Reporting Information [Line Items]
Revenues	$ 3,193	$ 2,004

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SEGMENT REPORTING Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Revenues	$ 96,637	$ 77,490

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Supplementary Data (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Other current assets:
Prepaid expenses	$ 1,913		$ 1,919
Other current assets	163		157
Total other current assets	2,076		2,076
Current portion of acquisition debt	913		1,027
Current portion of finance lease obligations	331		323
Current portion of operating lease obligations	2,057		2,082
Total current portion of debt and lease obligations	3,301		3,432
Accrued liabilities:
Accrued salaries and wages	3,307		1,392
Accrued incentive compensation	5,964		11,139
Accrued vacation	3,440		3,271
Accrued insurance	3,507		3,016
Accrued interest	8,888		2,291
Accrued ad valorem and franchise taxes	1,059		435
Employer payroll tax deferral	1,773		1,773
Accrued commissions	912		634
Other accrued liabilities	1,097		908
Income tax payable	4,392		798
Federal income taxes payable	1,604		1,825
Unrecognized tax benefit	3,656		3,656
Total accrued liabilities	39,599		31,138
Other long-term liabilities:
Incentive compensation	351		2,975
Total other long-term liabilities	2,677		4,748
Employer Payroll Tax Deferral, Non-Current	1,773		1,773
Accrued Severance	553		$ 0
Cash Paid For Interest And Financing Costs	616	$ 1,337
Income Taxes Paid	532	96
Contribution of Property	$ 635	$ 0

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Label	Element	Value
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	$ 12,933,000
Retained Earnings [Member]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	$ 12,933,000