Carriage Services Announces Strong Second Quarter 2024 Results and Increases Full-Year 2024 Outlook

Core Insights - Carriage Services, Inc. reported a revenue of $102.3 million for Q2 2024, reflecting a 4.8% increase year-over-year, driven by a 31.1% rise in consolidated cemetery preneed sales and a 4.0% increase in average funeral revenue per contract [2][3][9] - The company adjusted its 2024 revenue guidance to a range of $390-$400 million, with adjusted consolidated EBITDA projected between $117-$123 million and adjusted diluted EPS between $2.30-$2.40 [2][10] Financial Performance - Total revenue for Q2 2024 was $102.3 million, up from $97.7 million in Q2 2023, with a notable increase in preneed interment rights sold by 23.2% and a 12.8% rise in average price per preneed interment right [9] - Net income for Q2 2024 decreased to $6.3 million from $8.3 million in Q2 2023, attributed to increased general and administrative expenses, including one-time costs related to executive severance [7][9] - Adjusted diluted EPS rose by 18.9% to $0.63 compared to $0.53 in the prior year [5][9] Operational Highlights - The preneed funeral sales strategy saw a significant 251% increase in commissions income, reaching $1.4 million compared to $406 thousand in the prior-year quarter [4] - Total Field EBITDA margins improved to 46.1%, up from 41.7% in the prior-year quarter, reflecting effective cost management [4][7] - The company experienced a 6.6% decrease in funeral contract volume, which was partially offset by a 4.0% increase in average revenue per funeral contract [9] Guidance and Outlook - The company has increased its 2024 revenue guidance from a previous range of $380-$390 million to $390-$400 million, indicating confidence in continued growth [10] - Adjusted free cash flow guidance remains stable at $55-$65 million, suggesting a focus on maintaining cash generation despite fluctuations in revenue [2][10] Market Position - Carriage Services continues to execute its five-year strategic objectives, which have contributed to solid performance and revenue growth in the cemetery and funeral segments [3][6] - The company is optimistic about maintaining consistent trends for the remainder of the year, despite anticipated small declines in funeral volume due to historical seasonality [6]