Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $102.1 million, essentially flat compared to the same quarter last year [5] - GAAP net income for the quarter was $11.7 million, up 85.7% from $6.3 million in the same quarter last year [8] - GAAP diluted EPS increased to $0.74 compared to $0.40, an 85% increase year-over-year [8] - Adjusted consolidated EBITDA for Q2 was $32.3 million, down 1% from the prior year [9] - Adjusted diluted EPS for Q2 was $0.74, a 17.5% increase compared to $0.63 in the prior year quarter [10] Business Line Data and Key Metrics Changes - Total funeral operating revenue grew 1.4% to $59.6 million, driven by a 0.5% increase in calls [6] - Cemetery operating revenue was $33.5 million, a slight decrease of 0.6% from the same period last year [7] - Financial revenue rose 18.8% to $8.2 million, primarily due to a 96.2% increase in preneed funeral commission income [7] Market Data and Key Metrics Changes - Year-to-date cemetery revenue is up 2.2%, below the year-over-year growth range of 10% to 20% [7] - The company anticipates a return to a normalized volume growth rate of 1% to 2% in 2026 [6] Company Strategy and Development Direction - The company is under contract to acquire new businesses, expected to close in Q3 2025, which will add significant revenue [11] - The focus is on high-quality acquisitions to add shareholder value, with a commitment to prudent capital management [12] - The company is rolling out a casket core line and enhancing service delivery through a "passion for service" program [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy and execution, noting a return to growth mode after disciplined capital management [11] - The company is monitoring broader economic trends and reaffirming its commitment to capital stewardship while pursuing strategic acquisitions [12] - Management expects a strong second half of the year, with updated guidance reflecting the impact of acquisitions and divestitures [22] Other Important Information - Cash from operating activities for the quarter totaled $8.1 million, an increase of $2.2 million from the same period last year [19] - The leverage ratio improved to 4.2 times compared to 4.6 times at the end of 2024 [20] - Overhead spending was reduced to 12.2% of revenue, down from 20% in the prior year quarter [20] Q&A Session Summary Question: Can you provide details on the M&A transactions? - Management confirmed that multiple transactions are involved, each with multiple businesses [24] Question: What is the pricing outlook for the acquisitions? - Pricing is in line with the company's valuation philosophy, generally in high single digits on multiples for premium businesses [25] Question: Can you break down the revenue guidance changes? - The increase in revenue guidance is attributed to acquisitions, divestitures, and organic business performance [52] Question: What are the expectations for cemetery growth in the back half of the year? - Management expects to return to over 10% growth, contingent on resolving inventory delays [55] Question: What is the outlook for future M&A activity? - The pipeline for acquisitions is strong, with ongoing conversations with owners of premium businesses [58]