Carriage Services, Inc. Q1 FY2025 earnings call

• Financial results: Total revenue up 3.5% y-o-y, adjusted consolidated EBITDA $32.9 million (down $653,000 or 1.9%), adjusted diluted EPS $0.96 per share (up $0.21 or 28% y-o-y). - Strategic initiatives: Trinity system in Phase 1 (back-office systems), Phase 2 to begin Q3; new earned core line launched for supply chain optimization; Express Funeral Funding partnership to simplify insurance assignments; cemetery development projects in progress, expected to return to 10%-20% growth rate in Q2. - Team recognition: Appreciation for Carriage team's dedication in delivering comfort and care to client families.

Total revenue for the first quarter was $107.1 million, an increase of $3.6 million or 3.5% compared to the same quarter last year. Funeral operating revenue ended at $69.1 million, an increase of $3 million or 4.6% over the same period last year, driven by a 1.8% increase in funeral home average revenue per contract and a 2.4% increase in funeral home at-need volume. Cemetery revenue was $27.9 million, an increase of $1.5 million or 5.8%. Financial revenue was $7.4 million, an increase of $613,000 or 9.1%, primarily driven by a strong preneed insurance funeral sales strategy, with 2,541 net preneed insurance contracts, an increase of 332 contracts or 15% compared to the same quarter last year.

• Maintain current guidance for now; if Q2 momentum holds, expect to raise guidance. - Full year outlook: Revenues expected to be in the $400 million to $410 million range, adjusted consolidated EBITDA in the range of $128 million to $133 million, adjusted diluted EPS of $3.10 to $3.30, overhead expense to be in the 13% to 14% of revenue range, adjusted free cash flow in the range of $40 million to $50 million.

• Broader economic environment uncertainties including market volatility, inflation, recession concerns. - Uncertainty around flu season shift impact on volume and cemetery inventory delays affecting preneed sales.

Q: How was March and April for the funeral segment?

A: The momentum has continued, strong on volume and average revenue per contract.

Q: Attribute the decline in preneed interment rights sold?

A: Delay of available inventory in two premier cemeteries, but expect to return to 10%-20% growth in Q2.

Q: Timing of M&A?

A: Back half of 2025, more to report in Q3 and Q4.

Q: Vaccine fatigue impact?

A: Not related to business performance, momentum due to strategy changes.

Q: Tariff impact?

A: Not significant, maximum impact less than 10 basis points full year.