Carriage Services reports Q3 adjusted EPS 33c, consensus 50c

Reports Q3 revenue $90.5M, consensus $93.18M. Carlos Quezada, Vice Chairman and CEO, stated, “We are very pleased to report strong third-quarter results, demonstrating meaningful growth compared to the prior year. Our revenue growth has been primarily driven by preneed cemetery sales, resulting in substantial growth of 15.5% of our total cemetery operating revenue. Despite facing inflationary cost pressures and macroeconomic and pull-forward headwinds, we successfully maintained a 39.9% total field EBITDA margin. Moreover, we increased our adjusted consolidated EBITDA by 6.1%, and grew our adjusted consolidated EBITDA margin by 70 basis points. Our strong operating results translated into robust free cash flow generation of $21.4 million for the quarter, allowing us to reduce our variable rate credit facility by $16.7 million. Nevertheless, despite this paydown, we experienced a significant increase in interest expense compared to last year’s quarter. After accounting for the approximately 12 cent increase in interest expense, our adjusted diluted earnings per share aligns closely with last year’s quarter. Following three quarters of strong operational performance, we remain focused on navigating the current macroeconomic environment, which includes continued cost inflation and higher variable interest rates, along with death rate normalization, as the pull-forward effect of COVID continues to impact volume. Consequently, we are tightening our full-year guidance, with revenue anticipated to range between $375 million to $380 million, adjusted consolidated EBITDA of $105 million to $110 million, and adjusted diluted earnings per share between $1.90 to $2.00; additionally, we are reaffirming our strong adjusted free cash flow of $50 million to $60 million. We remain focused on our revenue growth strategies, managing our cost structure and maintaining strong margins, and executing our capital allocation plan to accelerate debt payment. We are confident our team will continue to sustain High Performance and create long-term value for our shareholders,” concluded Mr. Quezada.