Carriage Services (CSV) Q2 2024 earnings summary

Executive summary

• Achieved Q2 2024 revenue of $102.3 million, up 4.8% year-over-year, driven by strong cemetery preneed sales and higher funeral contract averages, despite a 6.6% decline in funeral contract volume.

• Adjusted diluted EPS rose 18.9% to $0.63, while GAAP net income was $6.3 million, down due to $8.4 million in one-time costs including executive severance and strategic review.

• Outperformed expectations in six of the last seven quarters, reflecting disciplined capital allocation and operational improvement.

• Gross profit increased $5.8 million year-over-year to $37.0 million, with total field EBITDA margin up 440 basis points to 46.1%.

• Increased full-year 2024 guidance for revenue, adjusted EBITDA, and adjusted EPS based on strong operational trends and execution of strategic objectives.

Financial highlights

• Q2 2024 total revenue: $102.3M (+4.8% YoY); six months: $205.8M (+6.5% YoY).

• Adjusted consolidated EBITDA grew 13.6% to $32.6 million (31.9% margin); six months: $66.2M (32.2% margin).

• GAAP net income was $6.3 million, down $2 million YoY due to non-recurring expenses; adjusted net income was $9.9 million, up 20.1%.

• Adjusted diluted EPS increased 18.9% to $0.63; GAAP diluted EPS was $0.40, impacted by one-time costs.

• Average revenue per funeral contract increased 4.0% YoY to $5,711 in Q2 2024.

Outlook and guidance

• 2024 revenue guidance raised to $390–$400 million; adjusted EBITDA to $117–$123 million; adjusted EPS to $2.30–$2.40.

• Adjusted free cash flow guidance maintained at $55–$65 million.

• Capital expenditures expected at $18 million for the year, split evenly between growth and maintenance.

• Funeral volumes expected to decline slightly in Q3 and Q4, with stabilization and potential growth by Q1 2025.

• Management remains focused on debt reduction, cost management, and capital allocation for dividends and growth.