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Carriage Services Inc. Reports Operating Results (10-Q)

August 07, 2012 | About:
10qk

10qk

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Carriage Services Inc. (CSV) filed Quarterly Report for the period ended 2012-06-30.

Carriage Services, Inc. has a market cap of $144.4 million; its shares were traded at around $8.19 with a P/E ratio of 12.5 and P/S ratio of 0.8. The dividend yield of Carriage Services, Inc. stocks is 1.2%. Carriage Services, Inc. had an annual average earning growth of 1.1% over the past 5 years.

Highlight of Business Operations:

Net income for the three months ended June 30, 2012 totaled $2.7 million, equal to $0.15 per diluted share, compared to net income for the three months ended June 30, 2011, which totaled $2.6 million, equal to $0.14 per diluted share. Net income for the six months ended June 30, 2012 totaled $7.1 million, equal to $0.39 per diluted share, compared to $5.9 million for the six months ended June 30, 2011, or $0.32 per diluted share. Total revenue for the three and six months ended June 30, 2012 was $50.1 million and $102.4 million, respectively, an increase of 5.1% and 4.1%, respectively, compared to $47.7 million and $98.3 million, respectively, for the comparable periods in 2011. Our funeral segment experienced increases in revenue and gross profit primarily as a result of our acquisitions. The cemetery segment experienced increases in revenue during the three and six month periods due to higher trust fund earnings. Cemetery gross profit was higher for the three months ended June 30, 2012, yet slightly lower for the six months ended June 30, 2012. We experienced increases in general and administrative expenses in the three months ended June 30, 2012 due to increases in severance, legal and acquisition expenses.

Funeral home same store operating revenues for the three months ended June 30, 2012 decreased $0.5 million, or 1.7%, when compared to the three months ended June 30, 2011, as we experienced a 4.7% decrease in the number of contracts, and the average revenue per contract increased 1.7%, or $91 per contract, to $5,489 for those existing operations. The average revenue per contract includes the impact of the funeral trust fund earnings recognized at the time that we provide the services pursuant to the preneed contract. Excluding funeral trust earnings, the average revenue per contract increased 3.2% to $5,258. The number of traditional burial contracts declined 6.6% while the average revenue per burial contract increased 2.1% to $8,311. The cremation rate for the same store businesses declined slightly from 44.6% to 44.3%. The average revenue per same store cremation contract increased 4.6% to $3,049 while the number of cremation contracts decreased 5.4%. Cremations with services declined from 36.7% of total cremation contracts in the second quarter of 2011 to 34.3% in the second quarter of 2012. The average revenue for other contracts, which make up approximately 7.9% of the total number of contracts, increased 8.0% from $1,967 to $2,124. Other contracts consist of charges for merchandise or services for which we do not perform a funeral service for the deceased during the period.

Funeral home acquired revenues for the three months ended June 30, 2012 increased $2.8 million, or 87.5%, when compared to the three months ended June 30, 2011, as we experienced a 58.7% increase in the number of contracts, and an increase of 17.6%, to $4,499, in the average revenue per contract for those acquired operations. Excluding funeral trust earnings, the average revenue per contract increased 18.1% to $4,435. The cremation rate for the acquired businesses was 52.5% for the second quarter of 2012, down from 61.2% in the prior year period. The average revenue per cremation contract increased 5.1% to $2,842 for the second quarter of 2012 and the number of cremation contracts increased 36.2% compared to the same period of 2011. The reason for the large increase in the average revenue per contract and the significant decline in the cremation rate is because the businesses acquired during the fourth quarter of 2011 and in the first six months of 2012 serve primarily traditional burial families.

Funeral home same store operating revenues for the six months ended June 30, 2012 decreased $2.2 million, or 3.4%, when compared to the six months ended June 30, 2011, as we experienced a 5.5% decrease in the number of contracts, and the average revenue per contract increased 1.9%, or $105 per contract, to $5,495 for those existing operations. The average revenue per contract includes the impact of the funeral trust fund earnings recognized at the time that we provide the services pursuant to the preneed contract. Excluding funeral trust earnings, the average revenue per contract increased 2.2% to $5,248. The number of traditional burial contracts declined 8.4% while the average revenue per burial contract increased 3.4% to $8,349. The cremation rate for the same store businesses rose from 44.1% to 45.0%. The average revenue per same store cremation contract increased 4.1% to $3,052 and the number of cremation contracts decreased 3.6%. Cremations with services declined from 37.2% of total cremation contracts in the six months ended June 30, 2011 to 34.9% in the second quarter of 2012. The average revenue for other contracts, which make up approximately 7.5% of the total number of contracts, decreased 1.7% from $2,107 to $2,071.

Funeral home acquired revenues for the six months ended June 30, 2012 increased $6.1 million, or 97.7%, when compared to the six months ended June 30, 2011, as we experienced a 62.9% increase in the number of contracts, and an increase of 21.0%, to $4,526, in the average revenue per contract for those acquired operations. Excluding funeral trust earnings, the average revenue per contract increased 21.3% to $4,461. The cremation rate for the acquired businesses was 53.2% for the six months ended June 30, 2012, down from 62.2% in the prior year period. The average revenue per cremation contract increased 8.4% to $2,952 for the six months ended June 30, 2012 and the number of cremation contracts increased 39.3%.

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