Fri, May 2, 8:27 PM (10 days ago)
**Carriage Services, Inc. (CSV) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $107.1 million, up 3.5% YoY. - **Net Income:** $20.9 million, significantly higher than $6.9 million in Q1 2024. - **Earnings per Share (EPS):** $1.35, up from $0.46 in Q1 2024. - **Gross Profit:** $37.8 million, slightly up from $37.3 million in Q1 2024. - **Operating Income:** $31.6 million, up from $19.5 million in Q1 2024. - **Cash Flow from Operations:** $13.8 million, down from $19.7 million in Q1 2024. **Profit Margins:** - **Gross Margin:** Approximately 35.3%. - **Operating Margin:** Approximately 29.5%. - **Net Margin:** Approximately 19.5%. **Cash Flow:** - **Operating Cash Flow:** $13.8 million, down from $19.7 million in Q1 2024. - **Investing Cash Flow:** $15.5 million outflow, up from $7.4 million outflow in Q1 2024. - **Financing Cash Flow:** $25.8 million outflow, slightly down from $26.9 million in Q1 2024. **Earnings Changes:** - **Revenue Growth:** Driven by a 2.3% increase in average revenue per funeral contract and a 0.7% increase in funeral contract volume. - **Net Income Growth:** Driven by a $9.4 million gain on sale of divestitures and real property, a $4.2 million decrease in general, administrative, and other expenses, and a $1.4 million decrease in interest expense. **Quarterly Performance Discussion:** - **Funeral Home Operations:** Revenue increased by $3.0 million, driven by higher average revenue per contract and increased contract volume. - **Cemetery Operations:** Revenue increased by $1.5 million, driven by an 11.8% increase in the average price per interment right sold, offset by a 5.8% decrease in the number of preneed interment rights sold. - **Divestitures:** Sold two funeral homes and three cemeteries for $15.8 million, resulting in a gain of $5.9 million. Additionally, sold real property for $2.9 million, resulting in a gain of $2.0 million. **Trends and Uncertainties:** - **Macroeconomic Trends:** Mixed consumer spending, inflationary pressures, and potential tariff impacts. - **Death Rates:** Fluctuations in death rates due to factors like the flu season. - **Interest Rates:** Lower borrowing costs due to the Credit Facility Amendment and paydowns. - **Future Operations Impact:** Focus on strategic objectives, cost management, and debt repayments. **Segment Performance:** - **Funeral Home:** Revenue of $74.6 million, operating income of $28.2 million. - **Cemetery:** Revenue of $32.5 million, operating income of $15.4 million. - **Corporate:** Operating loss of $12.0 million. **Liquidity and Capital Resources:** - **Cash Position:** $4.6 million at the end of Q1 2025. - **Credit Facility:** $120.0 million outstanding, $127.8 million available. - **Debt:** $400.0 million in Senior Notes due in 2029. **Future Outlook:** - **Strategic Focus:** Debt repayments, dividend payments, internal growth, and general corporate purposes. - **Risk Factors:** Economic conditions, tariffs, inflation, and market risks. **Ticker:** CSV