Carriage Services(US:CSV)2025-11-06 21:36Revenue and Profitability - Total revenue for the nine months ended September 30, 2025, increased by $5.5 million to $311.96 million compared to $306.50 million for the same period in 2024[171]. - Gross profit for the nine months ended September 30, 2025, increased by $0.3 million to $110.02 million compared to $109.74 million for the same period in 2024[175]. - Net income for the nine months ended September 30, 2025, increased by $16.1 million to $39.24 million compared to $23.10 million for the same period in 2024[176]. - Cash provided by operating activities was $46.6 million for the nine months ended September 30, 2025, compared to $42.7 million for the same period in 2024[162]. - Adjusted operating profit decreased by $0.2 million to $54.933 million for the nine months ended September 30, 2025, with a corresponding operating profit margin decrease of 280 basis points to 45.1%[197]. Acquisitions and Divestitures - The company acquired eight funeral homes, one cemetery, and one cremation-focused business for an aggregate price of $56.5 million during the nine months ended September 30, 2025[149]. - The company sold nine funeral homes and four cemeteries for an aggregate of $33.8 million, resulting in a gain of $0.8 million during the nine months ended September 30, 2025[150]. - Net loss on divestitures and impairment charges totaled $6.559 million for the three months ended September 30, 2025, compared to $387,000 in the same period of 2024[204]. Revenue Breakdown - Total revenue for the Funeral Home segment for the nine months ended September 30, 2025, was $202,644 thousand, an increase of $3,516 thousand from $199,128 thousand in 2024[189]. - Cemetery operating revenue increased by $5.3 million to $109.314 million for the nine months ended September 30, 2025, compared to $107.370 million in the same period of 2024, primarily due to a 6.9% increase in the average price per preneed interment right sold[196]. - Cemetery operating revenue increased by $4.0 million to $39,964 thousand for the three months ended September 30, 2025, driven by a 15.1% increase in the average price per interment right sold[193]. - Atneed revenue increased by $1.3 million to $28.405 million for the nine months ended September 30, 2025, driven by an 11.6% increase in atneed property sold[196]. Expenses and Financial Metrics - General, administrative, and other expenses decreased by $10.9 million to $36.2 million for the nine months ended September 30, 2025, primarily due to a decrease in salary and benefits expenses[203]. - Interest expense decreased to $21.278 million for the nine months ended September 30, 2025, from $25.071 million in 2024[205]. - Income tax expense increased by $0.7 million to $13.6 million for the nine months ended September 30, 2025, with an operating tax rate of 32.0% compared to 33.2% in 2024[208]. Contract and Revenue Metrics - Average revenue per funeral contract excluding preneed interest increased by 1.9% to $5,665 for the nine months ended September 30, 2025[171]. - Average revenue per contract, excluding preneed funeral trust earnings, increased by 1.1% to $5,756 for the nine months ended September 30, 2025, compared to $5,691 in 2024[189]. - Preneed revenue as a percentage of operating revenue increased to 70.7% for the nine months ended September 30, 2025, compared to 70.4% in 2024, with preneed revenue rising to $68.385 million from $64.387 million[196]. - Preneed revenue as a percentage of operating revenue for the Cemetery segment was 73.1% for the three months ended September 30, 2025, up from 71.7% in 2024[193]. - The number of preneed interment rights sold increased to 3,567 for the three months ended September 30, 2025, compared to 3,410 in 2024, reflecting a growth of 4.6%[193]. Cash and Capital Expenditures - Capital expenditures for the nine months ended September 30, 2025, totaled $12.7 million, an increase of $1.0 million compared to $11.7 million for the same period in 2024[167]. - The company ended the quarter with $1.2 million in cash, unchanged from the beginning of the year[159]. Volume and Performance Metrics - The company experienced a 1.8% decrease in funeral contract volume for the nine months ended September 30, 2025[174]. - Adjusted operating profit for the Funeral Home segment for the three months ended September 30, 2025, was $24,908 thousand, a decrease of $189 thousand from $25,097 thousand in 2024[179]. - Adjusted operating profit margin for the Funeral Home segment decreased to 36.8% for the three months ended September 30, 2025, down from 38.1% in 2024[186]. - Cemetery adjusted operating profit increased by $1.8 million to $21,411 thousand for the three months ended September 30, 2025, compared to $19,846 thousand in 2024[194]. - Other revenue for the Funeral Home segment increased by $1.4 million to $4,713 thousand for the three months ended September 30, 2025, compared to $3,309 thousand in 2024[188]. - Other revenue decreased by $0.7 million to $11.140 million for the nine months ended September 30, 2025, primarily due to realized capital gains in the third quarter of 2024[198].