Carriage Services (CSV) Q3 2024 earnings summary

Executive summary

• Achieved third consecutive quarter with revenue exceeding $100 million, growing 11.3% year-over-year to $100.7 million, driven by strong preneed cemetery sales and higher average prices, despite funeral contract volume declines and divestitures.

• Net income for Q3 2024 rose to $9.9 million, up 112% year-over-year, reflecting higher gross profit and lower interest expense.

• Adjusted consolidated EBITDA increased 26.7% to $30.7 million, with margin up to 30.5%.

• Raised full-year 2024 guidance for revenue, adjusted EBITDA, and adjusted diluted EPS, reflecting confidence in ongoing performance.

• Continued focus on disciplined capital allocation, debt reduction, and operational improvements.

Financial highlights

• Q3 2024 revenue: $100.7 million, up $10.2 million (11.3%) year-over-year; nine-month revenue: $306.5 million.

• Preneed cemetery sales rose $4.9 million to $22.9 million, with preneed interment rights sold up 26.1% and average price up 4.4%.

• Adjusted consolidated EBITDA: $30.7 million, up 26.7% year-over-year; margin increased to 30.5%.

• GAAP net income: $9.9 million, up $5.2 million; GAAP diluted EPS: $0.63, up 110%; adjusted diluted EPS: $0.64, up 94%.

• Year-to-date revenue: $306.5 million (+8%), adjusted EBITDA: $96.9 million (+20.1%), adjusted EPS: $2.02 (+42.3%).

Outlook and guidance

• 2024 revenue guidance raised to $395–$405 million; adjusted EBITDA to $120–$125 million; adjusted EPS to $2.45–$2.55; adjusted free cash flow guidance maintained at $55–$65 million.

• Overhead expected at 13–14% of revenue (adjusted), with long-term efficiencies anticipated post-ERP implementation.

• Leverage ratio expected to end 2024 at 4.3–4.6x.

• Management expects continued focus on market share expansion, cost management, and execution of strategic plans despite ongoing fluctuations in death rates.

• No significant liquidity constraints are anticipated for the next 12 months.