Financial Performance - Total revenue for the year ended December 31, 2024, was $404.2 million, representing a growth of 5.7% compared to the prior year[6] - Adjusted consolidated EBITDA for the year increased by 11.5% to $126.2 million, while GAAP net income declined by 1.4% to $33.0 million[6] - The company achieved adjusted diluted EPS of $2.65, an increase of 21.0% over the prior year, despite a GAAP diluted EPS decline of 1.9% to $2.10[6] - Total revenue for 2023 was $382,520, a slight increase from $370,174 in 2022, representing a growth of 3.6%[14] - Total EBITDA for 2023 was $161,076, with an EBITDA margin of 42.1%, compared to $161,361 and 43.6% in 2022[14] - Adjusted net income for 2023 was $34,131, down from $41,086 in 2022, reflecting a decrease of 16.9%[14] - The company reported a GAAP diluted earnings per share of $2.14 for 2023, compared to $2.63 in 2022, a decline of 18.6%[14] - Operating income for the year ended December 31, 2024, was $81,799 million, slightly up from $80,979 million in 2023, representing a 1.0% increase[19] - Net income for the year ended December 31, 2024, was $32,953 million, a decrease of 1.4% from $33,413 million in 2023[19] Revenue and Sales - Preneed cemetery sales increased by 26.7%, contributing to a 3.1% rise in average revenue per funeral contract[6] - The average price per preneed interment right sold increased by 4.2% to $5,379[9] - The company experienced a 7.3% decrease in funeral contract volume for the year, offset by a 3.1% increase in average revenue per contract[9] - Cemetery operating revenue increased significantly to $101,150 in 2023, up 13.6% from $89,045 in 2022[14] - Total revenue for the year ended December 31, 2024, was $404,198 million, an increase of 5.7% compared to $382,520 million in 2023[19] Cash Flow and Liquidity - Cash provided by operating activities for the year was $52.0 million, down from $75.6 million in the prior year[7] - Cash flows from operating activities for the year ended December 31, 2024, were $51,996 million, a decrease of 31.2% compared to $75,590 million in 2023[22] - Cash provided by operating activities for Q4 2024 was $9,280,000, down from $13,741,000 in Q4 2023, leading to free cash flow of $6,981,000 compared to $11,591,000[48] - Adjusted free cash flow for the year 2024 was $51,471,000, compared to $55,107,000 in 2023[48] - Cash provided by operating activities for 2025 is estimated at $61,500,000, with cash used for capital expenditures at $21,000,000, resulting in a free cash flow of $40,500,000[54] Guidance and Projections - The 2025 guidance includes total revenue of $400-$410 million and adjusted consolidated EBITDA of $128-$133 million[6] - Expected divestitures of non-core assets are projected to reduce 2025 revenue and EBITDA by approximately $7.9 million and $2.3 million, respectively[10] - For the estimated year ended December 31, 2025, total revenue is expected to reach $405,000,000, with an adjusted consolidated EBITDA margin of 32.3%[53] - The estimated adjusted diluted earnings per share for 2025 is projected at $3.20, down from $3.50 in GAAP diluted earnings per share[53] - Adjusted free cash flow for 2025 is projected to be $45,000,000 after accounting for special items of $4,500,000[54] Assets and Liabilities - Total assets increased to $1,279,580 in December 2023, up from $1,268,052 in December 2022[17] - Total liabilities decreased to $1,071,030 in December 2023, down from $1,094,992 in December 2022[17] - The company’s cash and cash equivalents decreased to $1,165 in December 2023 from $1,523 in December 2022[17] Operational Metrics - Service revenue for Q4 2024 was $44,003 million, a decrease of 3.8% from $45,729 million in Q4 2023[19] - Gross profit for Q4 2024 was $33,645 million, down from $34,626 million in Q4 2023, reflecting a decrease of 2.8%[19] - Operating income for Q4 2024 was $21,056,000, a decrease from $23,921,000 in Q4 2023, while total revenue decreased to $97,700,000 from $98,834,000[37] - Consolidated EBITDA for Q4 2024 was $29,296,000, down from $31,225,000 in Q4 2023, with an adjusted consolidated EBITDA of $29,296,000 compared to $32,444,000 in the same period[37] - The operating income margin for Q4 2024 was 21.6%, down from 24.2% in Q4 2023, while the adjusted consolidated EBITDA margin decreased to 30.0% from 32.8%[37] Strategic Initiatives - The company plans to focus on market expansion and new product development in the upcoming year[14] - The company plans to continue reviewing strategic alternatives, which may impact future financial performance[45] - The company recognized a vendor incentive payment of $6,000,000 in 2023 for entering into a strategic partnership agreement[49] Risks and Uncertainties - The company acknowledges significant risks and uncertainties that could affect future results, including competition, economic conditions, and changes in consumer preferences[55] - Forward-looking statements include expectations regarding earnings, revenue, and capital allocation, with no assurance that future developments will align with current projections[55]

Company Highlights - Carriage Services, Inc. reported strong financial results for the full year 2024, exceeding expectations for adjusted EBITDA and EPS despite a decline in funeral home revenue in the fourth quarter [3][4] - The company raised its full-year guidance and achieved total revenue of $404.2 million, representing a growth of 5.7% over the prior year [7] - The decline in funeral service volume was attributed to a delayed flu season, impacting at-need funeral services [4][9] Financial Highlights - Total revenue for Q4 2024 was $97.7 million, a decrease from $98.8 million in Q4 2023, while total revenue for the year increased to $404.2 million from $382.5 million in 2023 [6][7] - Operating income for Q4 2024 was $21.1 million, down from $23.9 million in Q4 2023, with a net income of $9.9 million compared to $11.6 million in the same period last year [6][7] - Adjusted consolidated EBITDA for the year was $126.2 million, an increase of 11.5% from $113.2 million in 2023 [7][8] Operational Metrics - The company experienced a 26.7% increase in consolidated cemetery preneed sales and a 3.1% increase in average revenue per funeral contract [7] - The number of funeral contracts decreased to 10,620 in Q4 2024 from 11,211 in Q4 2023, while the average revenue per funeral contract increased to $5,524 from $5,471 [8][9] - The leverage ratio improved to 4.3x from 5.1x year-over-year, as the company paid down $42.1 million of debt [7] 2025 Outlook - The company anticipates total revenue for 2025 to be between $400 million and $410 million, with adjusted consolidated EBITDA expected to be between $128 million and $133 million [10] - The guidance reflects expected divestitures of non-core assets, which are projected to reduce revenue and EBITDA by approximately $7.9 million and $2.3 million, respectively [9][10] - The company aims to continue its organic growth initiatives in preneed sales while maintaining cost discipline [9]

Core Points - Carriage Services, Inc. plans to release its 2024 annual results on February 26, 2025, after market close [1] - A conference call to discuss the results is scheduled for February 27, 2025, at 9:30 a.m. Central Time, available via phone and webcast [2] - 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 [3]

Investment Philosophy - The investment philosophy focuses on identifying mispriced securities by understanding the drivers behind a company's financials, often revealed through a DCF model valuation [1] - This approach does not limit the investor to traditional value, dividend, or growth investing but considers all prospects of a stock to determine the risk-to-reward ratio [1] Market Focus - The investor has experience in US, Canadian, and European markets with a major focus on small-cap companies [1] Methodology - The methodology involves a comprehensive analysis of a company's financials and prospects to identify mispriced securities [1] - The DCF model valuation is a key tool in this investment strategy [1]

Market Overview - U.S. stock markets have experienced a significant rally in 2023, with the Dow, S&P 500, and Nasdaq Composite increasing by 13.8%, 26%, and 33.9% respectively [1] Stock Screening Criteria - Stocks with a percentage change in price over the last 12 weeks greater than 10% indicate momentum and reduce the risk of selecting stocks that may have gained attention due to overall market performance [4] - An average broker rating of 1 suggests strong optimism regarding the stock's future performance [5] - Stocks trading at more than 85% of their 52-week high indicate strong price resilience [6] - A percentage change in price over the last 4 weeks greater than zero shows recent upward movement [16] - Stocks must have a Zacks Rank of 1 (Strong Buy) to demonstrate a history of outperformance [17] - Stocks must be trading at a minimum price of $5 [18] Selected Stocks - **Private Bancorp of America Inc. (PBAM)**: Offers a range of banking products and services in California, including checking and savings accounts, loans, and online banking services. The stock price surged by 15% in the past four weeks, with expected earnings growth of 5.6% for next year [7][25] - **DXP Enterprises Inc. (DXPE)**: Provides innovative pumping solutions and supply-chain services. The stock price appreciated by 12% in the past four weeks, with expected earnings growth of 5.9% for next year [8][26] - **Qifu Technology Inc. (QFIN)**: Operates as a credit-tech platform in China, providing credit-driven services. The stock price advanced by 10.6% in the past four weeks, with expected earnings growth of 12% for next year [9][20] - **Carriage Services Inc. (CSV)**: A leading provider of death care services in the U.S., offering a range of funeral and burial services. The stock price gained 2.3% in the past four weeks, with expected earnings growth of 12.9% for next year [21][27] - **Universal Technical Institute Inc. (UTI)**: Provides education programs in transportation, skilled trades, and healthcare. The stock price was up 0.2% in the past four weeks, with an expected earnings growth rate of 29.3% for the current year [10][22]

Core Viewpoint - The article emphasizes the importance of identifying and sustaining trends in short-term investing, highlighting that successful trades require confirmation of strong fundamentals and positive earnings estimates to maintain momentum [1]. Group 1: Investment Strategy - Investors can utilize the "Recent Price Strength" screen to identify stocks that are trending upwards, supported by strong fundamentals and trading near their 52-week high-low range, indicating bullish sentiment [2]. - Carriage Services (CSV) is identified as a strong candidate for trend investors, having experienced a price increase of 23.3% over the past 12 weeks, reflecting investor confidence in its potential upside [3]. - A recent price increase of 3.2% over the last four weeks suggests that the upward trend for CSV is still intact, which is crucial for potential winners [4]. Group 2: Company Fundamentals - CSV is currently trading at 91.5% of its 52-week high-low range, indicating it may be on the verge of a breakout [5]. - The stock holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are key indicators of near-term price movements [5][6]. - An Average Broker Recommendation of 1 (Strong Buy) further confirms the stock's fundamental strength, reflecting high optimism from the brokerage community regarding its near-term performance [6]. Group 3: Market Performance - Historically, Zacks Rank 1 stocks have generated an average annual return of +25% since 1988, showcasing the effectiveness of the ranking system in identifying profitable investment opportunities [6]. - The article suggests that the price trend for CSV is unlikely to reverse soon, indicating a favorable outlook for investors [7].

Core Insights - Carriage Services, Inc. has been recognized as 33 on Forbes' list of Most Successful Small Companies for 2025, highlighting its growth and commitment to innovation in the funeral and cemetery services industry [1][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] Team and Culture - The ranking reflects the contributions of Carriage's team members, who embody the company's purpose of creating exceptional experiences through innovation and partnership [2] - CEO Carlos Quezada emphasized that the recognition is a tribute to the hard work and dedication of the team, which is committed to serving families and supporting one another [3] Recognition Criteria - Forbes selects its Most Successful Small Companies based on performance metrics such as revenue growth, profitability, and innovation, along with qualitative factors like leadership, impact, and culture [3]

Core Insights - Carriage Services, Inc. has been recognized as 33 on Forbes' list of Most Successful Small Companies for 2025, highlighting its growth, innovation, and commitment to serving families with compassion and care [1][3]. Company Performance - The ranking reflects the collective contributions of Carriage's team members, who embody the company's purpose of creating premier experiences through innovation and elevated service [2]. - Forbes evaluates companies based on performance metrics such as revenue growth, profitability, and innovation, along with qualitative factors like leadership, impact, and culture [3]. Company Overview - Carriage Services is a leading provider of funeral and cemetery services in the United States, operating 162 funeral homes across 26 states and 31 cemeteries in 11 states [4]. - The company is dedicated to delivering premier experiences through innovation and partnership [4].

Core Viewpoint - The article highlights Carriage Services (CSV) as a strong value stock, supported by various valuation metrics and a favorable earnings outlook [4][8]. Valuation Metrics - Carriage Services has a Forward P/E ratio of 14.43, significantly lower than the industry average of 20.84, indicating potential undervaluation [4]. - The PEG ratio for CSV is 0.96, compared to the industry average of 2.03, suggesting that the stock is undervalued relative to its expected earnings growth [5]. - The P/B ratio for CSV stands at 3.11, which is lower than the industry average of 6.42, further supporting the notion of undervaluation [6]. - CSV's P/CF ratio is 10.52, compared to the industry average of 13.32, indicating a favorable cash flow outlook relative to its peers [7]. Investment Outlook - The combination of strong valuation metrics and a positive earnings outlook positions Carriage Services as an attractive investment opportunity in the current market [8].

Core Insights - Carriage Services, Inc. has appointed John Enwright as Senior Vice President, Chief Financial Officer, and Treasurer, effective January 2, 2025, highlighting the company's commitment to enhancing its leadership team [1][3]. Group 1: Leadership Appointment - John Enwright brings over 25 years of financial leadership experience in omnichannel retail, having previously served as CFO for Edible Brands and Vera Bradley, and spent 15 years at Tiffany & Company [2]. - His strategic insights and leadership experience are expected to support Carriage's focus on disciplined capital allocation, purposeful growth, and relentless improvement [3]. Group 2: Company Vision and Goals - The appointment of Mr. Enwright is seen as a critical step in elevating Carriage's financial sophistication and operational excellence, aiming to accelerate growth and enhance client experiences [4]. - The company is positioned for future growth, emphasizing excellence, innovation, and a commitment to delivering premier services [5]. Group 3: Company Overview - Carriage Services is a leading provider of funeral and cemetery services in the U.S., operating 162 funeral homes across 26 states and 31 cemeteries in 11 states [6].