Carriage Services' Q4 2024: Revenue Growth, Divestiture Effects, and Volume Trends Under the Microscope

These are the key contradictions discussed in Carriage Services' latest 2024Q4 earnings call, specifically including: Revenue Growth Expectations, Divestiture Impact, Funeral Volume Trends and Revenue Growth Expectations, and Acquisition and Divestiture Plans:



Revenue Performance and Volume Trends:
- Carriage Services reported total revenue of $97.7 million for Q4 2024, a 1.1% decrease compared to the same quarter last year.
- The decrease was due to a 7.3% decline in funeral volumes and a 1.4% increase in average revenue per funeral contract, influenced by a shift in the flu season.

Cemetery Sales and Preneed Growth:
- The company experienced an 8.4% increase in preneed interment rights sold and a 4.2% increase in the average price per preneed interment rights sold, contributing to a 11.6% increase in cemetery operating revenue.
- This growth was driven by the strategic focus on cemetery preneed sales and optimized pricing strategies.

Earnings and Earnings Per Share:
- Adjusted consolidated EBITDA for the fourth quarter was $29.3 million, a 9.6% decrease from the prior year, affecting adjusted diluted EPS which fell by 19.5% to $0.62 per share.
- The decrease in earnings was primarily due to lower revenue in the funeral segment and increased investments in the Trinity system.

Cash Flow and Debt Management:
- Cash provided by operating activities for the quarter was $9.3 million``, down $4.4 million from the previous year, primarily due to lower income in the funeral segment and increased spending on Project Trinity.
- The company maintained a leverage ratio of 4.3x```, reflecting disciplined capital allocation and debt repayment efforts.