Financial Data and Key Metrics Changes - 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 [8] - GAAP net income was $20.9 million, an increase of $13.9 million or 200.1% year-over-year [21] - Adjusted diluted EPS for the first quarter was $0.96 per share, an increase of $0.21 or 28% compared to the prior year quarter [12] Business Line Data and Key Metrics Changes - Total funeral operating revenue was $69.1 million, an increase of $3 million or 4.6% year-over-year, driven by a 1.8% increase in average revenue per contract and a 2.4% increase in admin volume [8][9] - Total cemetery revenue reached $27.9 million, an increase of $1.5 million or 5.8% [10] - Financial revenue was $7.4 million, an increase of $613,000 or 9.1%, primarily from preneed insurance funeral sales [11] Market Data and Key Metrics Changes - The company observed a shift in flu season affecting volume, with a positive variance of 7.7% compared to the first quarter of the previous year [9] - The preneed cemetery growth rate is expected to be between 10% to 20% for the year [10] Company Strategy and Development Direction - The company is focused on disciplined execution and strategic initiatives, including the implementation of the Trinity system and supply chain optimization [15][16] - The company aims to maintain its current guidance while monitoring economic conditions, with potential adjustments based on performance in the second quarter [14][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum and the strength of its financial strategy, despite broader economic uncertainties [13][14] - The company plans to reinvest proceeds from divestitures into higher quality EBITDA-producing businesses, with expectations for acquisitions in the second half of the year [41][43] Other Important Information - Adjusted consolidated EBITDA for the first quarter was $32.9 million, a decrease of $653,000 or 1.9% [11] - Overhead expenses decreased to $15.3 million from $19.4 million in the prior year, with adjusted overhead as a percentage of revenue at 14.3% [24][25] Q&A Session Summary Question: How was March and April performance? - Management indicated that momentum has continued strongly from January through April, primarily due to volume increases [28][29] Question: Does the strength year-over-year suggest the COVID hangover is behind? - Management noted it is challenging to forecast but believes this year will level up and potentially increase volume moving forward [30][32] Question: What is attributed to the decline in preneed and terming rates sold? - Management attributed the decline to delays in available inventory at premier cemeteries rather than discretionary spending [34][36] Question: What are the expected proceeds from property monetization in Q2? - Expected proceeds from property monetization in Q2 are around $6 million, which is factored into guidance [62][63] Question: How does the company plan to react in a recessionary environment? - Management expressed confidence in the resilience of the industry and plans to accelerate lead generation programs to maintain growth [55][57]

Financial Data and Key Metrics Changes - For the first quarter, total revenue was reported at $107.1 million, an increase of $3.6 million or 3.5% compared to the same quarter last year [9] - GAAP net income for the first quarter was $20.9 million, an increase of $13.9 million or 200.1% [22] - Adjusted diluted EPS for the first quarter was $0.96 per share, an increase of $0.21 or 28% compared to the prior year quarter [13] - Adjusted consolidated EBITDA was $32.9 million, a decrease of $653,000 or 1.9% [12] Business Line Data and Key Metrics Changes - Total funeral operating revenue was $69.1 million, an increase of $3 million or 4.6% year-over-year, driven by a 1.8% increase in average revenue per contract and a 2.4% increase in admin volume [9] - Total cemetery revenue reached $27.9 million, an increase of $1.5 million or 5.8% [11] - Financial revenue was $7.4 million, an increase of $613,000 or 9.1%, primarily from preneed insurance funeral sales [12] Market Data and Key Metrics Changes - The company observed a shift in flu season, impacting volume expectations, with a positive variance of 7.7% compared to the first quarter of the previous year [10] - The preneed cemetery growth rate is expected to be between 10% to 20% for the year [11] Company Strategy and Development Direction - The company is maintaining its current guidance while monitoring economic conditions, with plans to potentially raise guidance if momentum continues [14][15] - The Trinity system is in Phase one of implementation, focusing on back office systems, with Phase two expected to begin in the third quarter [16] - The company is excited about the rollout of its express funeral funding partnership, aimed at improving family financial flexibility and unlocking new sales potential [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum and the strength of its financial strategy, despite broader economic uncertainties [14][19] - The company is focused on operational excellence and innovation to create lasting value for shareholders [20] Other Important Information - Cash provided by operating activities for the quarter was $13.8 million, down from $19.7 million in the prior year [23] - The company ended the quarter with a maintained leverage ratio of 4.2 times, down from 5 times [24] Q&A Session Summary Question: How was March and April performance? - Management indicated that momentum has continued strongly from January through April, primarily due to volume increases [30][31] Question: What is the outlook for preneed and terming rates sold? - Management noted that while there was a decline in preneed property rights sold, they expect a return to normal growth rates starting in the second quarter [34][35] Question: What are the expected proceeds from property monetization in Q2? - Management estimated around $6 million in proceeds from property sales in Q2, which is factored into guidance [56] Question: How does the company plan to react in a recessionary environment? - Management expressed confidence in the resilience of the industry, noting that demand remains stable even during economic downturns [51][52] Question: What cost-saving measures are currently in place? - Management highlighted ongoing supply chain initiatives and fleet management as key areas for cost savings [47][48]

Group 1: Earnings Performance - Carriage Services (CSV) reported quarterly earnings of $0.96 per share, exceeding the Zacks Consensus Estimate of $0.80 per share, and up from $0.75 per share a year ago [1] - The earnings surprise for this quarter was 20%, following a previous quarter where earnings of $0.62 per share surpassed expectations of $0.51 per share by 21.57% [2] - Over the last four quarters, the company has consistently surpassed consensus EPS estimates [2] Group 2: Revenue Performance - The company posted revenues of $107.07 million for the quarter ended March 2025, which was 4.72% above the Zacks Consensus Estimate and an increase from $103.49 million year-over-year [3] - Carriage Services has also topped consensus revenue estimates in each of the last four quarters [3] Group 3: Stock Performance and Outlook - Carriage Services shares have increased approximately 1.3% since the beginning of the year, contrasting with a decline of 5.5% in the S&P 500 [4] - The future performance of the stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][5] - The current consensus EPS estimate for the upcoming quarter is $0.76 on revenues of $100.31 million, and for the current fiscal year, it is $3.21 on revenues of $407.85 million [8] Group 4: Industry Context - The Funeral Services industry, to which Carriage Services belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9]

Financial Performance - Total revenue for Q1 2025 was $107.1 million, representing a 3.5% increase compared to $103.5 million in Q1 2024[5] - GAAP net income grew by $14.0 million or 200.1% year-over-year, reaching $20.9 million in Q1 2025[4] - Adjusted diluted EPS increased to $0.96, up 28% from $0.75 in the prior year quarter[4] - Comparable funeral home revenue rose by 4.6%, driven by a 2.4% increase in at-need volume and a 2.2% increase in average revenue per at-need contract[3] - Total revenue for Q1 2025 was $107.069 million, a 3.1% increase from $103.493 million in Q1 2024[17] - Net income for Q1 2025 was $20.926 million, compared to $6.973 million in Q1 2024, representing a 200.5% increase[17] - Basic earnings per share increased to $1.35 in Q1 2025 from $0.46 in Q1 2024[17] - Operating income for Q1 2025 was $31.564 million, up from $19.477 million in Q1 2024, marking a 62% increase[17] - The company reported a gross profit of $37.842 million in Q1 2025, compared to $37.262 million in Q1 2024, a 1.6% increase[17] - Consolidated EBITDA for Q1 2025 was $32,948,000, compared to $26,971,000 in Q1 2024, reflecting a year-over-year increase of 22.1%[34] - Adjusted consolidated EBITDA margin for Q1 2025 was 30.8%, down from 32.5% in Q1 2024[34] Revenue Projections - The company expects total revenue for 2025 to be between $400 million and $410 million, factoring in divestitures[7] - Adjusted consolidated EBITDA for 2025 is projected to be between $128 million and $133 million[7] - The company expects total revenue for the year ending December 31, 2025, to be approximately $405,000,000, with an adjusted consolidated EBITDA margin of 32.3%[39] - The company anticipates cash provided by operating activities for the year ending December 31, 2025, to be $61,500,000[41] Asset and Liability Management - Total current assets rose to $49.900 million as of March 31, 2025, up from $44.536 million at the end of 2024, a 12.5% increase[16] - Total liabilities decreased to $1,052.167 million as of March 31, 2025, down from $1,071.030 million at the end of 2024, a reduction of 1.8%[16] - Cash and cash equivalents increased significantly to $4.643 million at the end of Q1 2025, compared to $1.165 million at the end of 2024[19] Cash Flow and Dividends - Cash flows from operating activities were $13.792 million in Q1 2025, down from $19.703 million in Q1 2024[19] - The company declared dividends of $0.1125 per share for both Q1 2025 and Q1 2024, maintaining the same level[17] - Adjusted free cash flow for Q1 2025 was $18,536,000, compared to $13,352,000 in Q1 2024, representing an increase of 39.1%[38] Strategic Initiatives - The company plans to divest certain non-core assets, which is expected to reduce 2025 revenue and adjusted consolidated EBITDA by approximately $7.9 million and $2.3 million, respectively[6] - The company has identified strategic alternatives and is reviewing potential acquisitions to enhance growth and market share[42] Risk Factors and Forward-Looking Statements - Investors are advised to review the "Risk Factors" in the Annual Report on Form 10-K for the year ended December 31, 2024, for material factors that could affect actual results[44] - The company does not undertake any obligation to publicly update or revise forward-looking statements except as required by law[44] Debt Management - The leverage ratio improved to 4.2x from 5.0x year-over-year, following a $17.0 million debt repayment[4] Pricing and Sales Trends - The average price per preneed interment right sold increased by 11.8% to $5,490, despite a 5.8% decrease in the number sold[5]

Core Insights - Carriage Services, Inc. reported strong financial results for Q1 2025, with a 4.6% increase in comparable funeral home revenue driven by a 2.4% rise in at-need volume and a 2.2% increase in average revenue per at-need contract, resulting in adjusted diluted EPS of $0.96, a 28% increase from the previous year [3][5][12] Financial Highlights - Total revenue for Q1 2025 was $107.1 million, a 3.5% increase from $103.5 million in Q1 2024, primarily due to an 11.8% increase in the average price per preneed interment rights sold and a 7.4% increase in total preneed sales [4][5][12] - Operating income rose to $31.6 million with an operating income margin of 29.5%, compared to $19.5 million and 18.8% in the prior year [4][5] - Net income increased by $14.0 million or 200.1% year-over-year, reaching $20.9 million, with diluted EPS of $1.34 compared to $0.45 in the prior year [5][19] - Adjusted consolidated EBITDA was $32.9 million with a margin of 30.8%, slightly down from $33.6 million and 32.5% in the previous year [4][14] Operational Metrics - The company sold 3,100 preneed interment rights at an average price of $5,490, up from $4,985 in the previous year [4][12] - Funeral contracts increased to 12,055 from 11,773 year-over-year, reflecting a 2.3% increase in average revenue per contract [4][5] Outlook for 2025 - The company anticipates total revenue between $400 million and $410 million for 2025, with adjusted consolidated EBITDA projected at $128 million to $133 million and adjusted diluted EPS expected to be between $3.10 and $3.30 [8][9][44] - The outlook includes the impact of divesting non-core assets, which is expected to reduce revenue and adjusted consolidated EBITDA by approximately $7.9 million and $2.3 million, respectively [8][9]

Core Viewpoint - Carriage Services, Inc. is set to release its first quarter 2025 financial results on April 30, 2025, followed by a conference call on May 1, 2025, at 8:00 a.m. Central Time [1][2] Company Overview - Carriage Services is a prominent provider of funeral and cemetery services and merchandise in the United States, operating 160 funeral homes across 25 states and 28 cemeteries in 10 states [3] - The company focuses on delivering premier experiences through innovation, partnership, and elevated service [3]

Core Viewpoint - Carriage Services, Inc. (NYSE: CSV) is a funeral and cemetery provider that was last analyzed in October 2023, prior to its third-quarter earnings report scheduled for October 30, 2024. The company maintains a 'Hold' rating due to its current valuation and market conditions [1]. Company Summary - The company focuses on generating income through investments in undervalued profitable stocks with strong balance sheets and minimal debt [1]. - The investment strategy includes writing calls against positions to generate additional income when opportunities arise [1]. - Risk management is emphasized through position sizing and the use of trailing stop losses over time [1].

Core Insights - The article emphasizes the importance of efficiency ratios in evaluating a company's potential for profitability and stock selection [1] Efficiency Ratios - **Receivables Turnover**: This ratio measures a company's ability to extend credit and collect debts, with a high ratio indicating effective collection practices [2] - **Asset Utilization**: This ratio assesses how well a company converts its assets into sales, with higher values suggesting greater efficiency [3] - **Inventory Turnover**: This ratio indicates a company's ability to manage inventory relative to its cost of goods sold, with high values reflecting efficient inventory management [4] - **Operating Margin**: This ratio measures the efficiency of a company in controlling operating expenses relative to sales, with higher values indicating better expense management [5] Screening Criteria - The screening process included a favorable Zacks Rank of 1 (Strong Buy) alongside the efficiency ratios to identify potentially profitable stocks [6] - The criteria narrowed down over 7,906 stocks to nine, highlighting companies with efficiency ratios above industry averages [7] Selected Companies - **Carriage Services (CSV)**: A leading provider of death care services in the U.S. with an average four-quarter earnings surprise of 27.5% [7] - **Brinker International (EAT)**: Operates various restaurant brands, including Chili's and Maggiano's, with an average four-quarter earnings surprise of 24.7% [8] - **Flexsteel Industries (FLXS)**: Engaged in the design and manufacture of upholstered furniture, with an average four-quarter earnings surprise of 19.8% [10]

Core Insights - Markets are showing signs of recovery due to soft inflation data, but concerns remain regarding global tensions, tariffs, and uncertainty over interest rate cuts [1][4][6] Consumer Staples Stocks - Investing in consumer staples stocks is recommended as they are considered defensive; notable picks include Molson Coors Beverage Company (TAP), Carriage Services, Inc. (CSV), and Tyson Foods (TSN) [2][3] - These stocks have a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [2] Inflation Data - The consumer price index (CPI) rose 0.2% sequentially in February, lower than the expected 0.3%, and year-over-year CPI increased 2.8%, below the anticipated 2.9% [4][6] - Core CPI, excluding food and energy, also rose 0.2% sequentially and 3.1% year-over-year, both below consensus estimates [5] Federal Reserve's Stance - The Federal Reserve has halted rate cuts due to persistent inflation, maintaining interest rates in the range of 4.25-4.5% [7] - The Fed is expected to adopt a cautious approach, with fewer rate cuts anticipated in 2025, possibly just a single 25 basis point cut in the second half of the year [8] Tariff Impacts - President Trump's tariffs have raised concerns about a potential global trade war, with 25% tariffs on Canadian and Mexican imports and 10% tariffs on Chinese goods [9][10] - These tariffs have contributed to market volatility, which is expected to continue until clarity on tariff policies is achieved [10] Company Profiles Molson Coors Beverage Company (TAP) - TAP has a diverse portfolio of brands and an expected earnings growth rate of 6.5% for the current year, with a Zacks Consensus Estimate improvement of 6.4% over the past 60 days [11][12] - The company has a beta of 0.81 and a current dividend yield of 3.11% [13] Carriage Services, Inc. (CSV) - CSV is a leading provider of death care services in the U.S., with an expected earnings growth rate of 21.1% for the current year and a Zacks Consensus Estimate improvement of 13.8% over the past 60 days [14][15] - The company has a beta of 0.91 and a current dividend yield of 1.18% [15] Tyson Foods (TSN) - TSN is the largest U.S. chicken company, with an expected earnings growth rate of 23.6% for the current year and a Zacks Consensus Estimate improvement of 8.8% over the past 60 days [16][17] - The company has a beta of 0.72 and a current dividend yield of 3.26% [17]

Core Viewpoint - Carriage Services, Inc. has announced an expanded national partnership with Express Funeral Funding, aiming to enhance service delivery and provide more funding options for families [1][2][3] Company Overview - Carriage Services operates 162 funeral homes across 26 states and 31 cemeteries in 11 states, focusing on delivering premier experiences through innovation and elevated service [4] Partnership Details - The collaboration with Express Funeral Funding will allow Carriage Services to refine its product portfolio and reach new markets, integrating EFF's insurance assignment funding into its offerings [2][3] - The partnership is expected to create new opportunities for both companies and enhance the value provided to families [4][6] Leadership Statements - Carlos Quezada, CEO of Carriage Services, expressed excitement about the partnership, highlighting its potential to broaden product offerings and improve service quality [3] - Andy Buckman, President of Express Funeral Funding, emphasized the partnership's potential to deliver greater value to families [4]