Carriage Services (CSV) Q4 2024 earnings summary

Executive summary

• Achieved total revenue of $404.2M in 2024, up 5.7% year-over-year, with adjusted consolidated EBITDA of $126.2M and adjusted diluted EPS of $2.65, reflecting strong operational performance and exceeding guidance.

• Significant debt reduction with $42.1M paid down, improving leverage ratio to 4.3x from 5.1x.

• New management team, including a new CFO, focused on strategic execution, M&A, and enhancing consumer experience.

• Strategic supply chain initiatives, Project Trinity ERP rollout, and new partnerships launched to drive future growth.

• Disciplined capital allocation with ~$250M deployed for acquisitions since 2019 and ongoing divestitures of non-core assets.

Financial highlights

• Full-year 2024 revenue reached $404.2M, up from $382.5M in 2023; Q4 revenue was $97.7M, down 1.1% year-over-year due to lower funeral volumes.

• Adjusted consolidated EBITDA for 2024 was $126.2M (31.2% margin), up 11.5% year-over-year; Q4 EBITDA was $29.3M.

• Adjusted diluted EPS increased 21% to $2.65; GAAP diluted EPS declined 1.9% to $2.10.

• Adjusted free cash flow for 2024 was $42.7M, down from $45.1M in 2023, reflecting higher capital expenditures.

• Net income for 2024 was $32.95M, down from $33.41M in 2023.

Outlook and guidance

• 2025 revenue guidance is $400–$410M, with low single-digit organic growth expected, excluding divestitures.

• Adjusted consolidated EBITDA forecasted at $128–$133M, with margin improvements anticipated.

• Adjusted diluted EPS expected at $3.10–$3.30, driven by lower interest and tax rates.

• Adjusted free cash flow projected at $40–$50M; total capital spending expected at $19–$21M.

• Divestitures in 2025 expected to reduce revenue by ~$7.9M and field EBITDA by ~$2.3M.