Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 22, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CARRIAGE SERVICES INC | |
Entity Central Index Key | 0001016281 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 17,908,764 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 11,920 | $ 716 |
Accounts receivable, net | 20,845 | 21,478 |
Inventories | 7,188 | 6,989 |
Prepaid and other current assets | 14,447 | 10,667 |
Total current assets | 54,400 | 39,850 |
Preneed cemetery trust investments | 60,776 | 72,382 |
Preneed funeral trust investments | 81,377 | 96,335 |
Preneed cemetery receivables, net | 20,402 | 20,173 |
Receivables from preneed trusts | 18,089 | 18,024 |
Property, plant and equipment, net | 278,995 | 279,200 |
Cemetery property, net | 101,797 | 87,032 |
Goodwill | 396,696 | 398,292 |
Intangible and other non-current assets, net | 33,457 | 32,116 |
Operating lease right-of-use assets | 21,891 | 22,304 |
Cemetery perpetual care trust investments | 52,677 | 64,047 |
Total assets | 1,120,557 | 1,129,755 |
Current liabilities: | ||
Current portion of debt and lease obligations | 3,219 | 3,150 |
Accounts payable | 6,425 | 8,413 |
Accrued and other liabilities | 23,788 | 24,026 |
Convertible subordinated notes due 2021 | 6,042 | 0 |
Total current liabilities | 39,474 | 35,589 |
Acquisition debt, net of current portion | 5,462 | 5,658 |
Credit facility | 112,509 | 82,182 |
Convertible subordinated notes due 2021 | 0 | 5,971 |
Acquisition debt, net of current portion | 395,575 | 395,447 |
Obligations under finance leases, net of current portion | 5,776 | 5,854 |
Obligations under operating leases, net of current portion | 21,106 | 21,533 |
Deferred preneed cemetery revenue | 46,980 | 46,569 |
Deferred preneed funeral revenue | 29,363 | 29,145 |
Deferred tax liability | 45,491 | 41,368 |
Other long-term liabilities | 1,435 | 1,737 |
Deferred preneed cemetery receipts held in trust | 60,776 | 72,382 |
Deferred preneed funeral receipts held in trust | 81,377 | 96,335 |
Care trusts’ corpus | 52,774 | 63,416 |
Total liabilities | 898,098 | 903,186 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $.01 par value; 80,000,000 shares authorized and 25,880,362 and 25,934,103 shares issued at December 31, 2019 and March 31, 2020, respectively | 259 | 259 |
Additional paid-in capital | 242,234 | 242,147 |
Retained earnings | 82,016 | 86,213 |
Treasury stock, at cost; 8,025,339 at both December 31, 2019 and March 31, 2020 | (102,050) | (102,050) |
Total stockholders’ equity | 222,459 | 226,569 |
Total liabilities and stockholders’ equity | $ 1,120,557 | $ 1,129,755 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 25,934,103 | 25,880,362 |
Treasury stock, shares | 8,025,339 | 8,025,339 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 77,490 | $ 69,081 |
Field costs and expenses: | ||
Cost of operating | 1,276 | 400 |
Cemetery property amortization | 877 | 849 |
Field depreciation expense | 3,290 | 3,085 |
Regional and unallocated funeral and cemetery costs | 2,756 | 2,789 |
Total field costs and expenses | 54,319 | 47,481 |
Gross profit | 23,171 | 21,600 |
Corporate costs and expenses: | ||
General, administrative and other | 5,946 | 5,612 |
Home office depreciation and amortization | 382 | 389 |
Total corporate costs and expenses | 6,328 | 6,001 |
Impairment of goodwill and other intangibles | (14,693) | 0 |
Operating income | 2,150 | 15,599 |
Interest expense | (8,428) | (6,328) |
Accretion of discount on convertible subordinated notes | (65) | (57) |
Other, net | (4) | (13) |
Income (loss) before income taxes | (6,347) | 9,201 |
Benefit (expense) for income taxes | 2,136 | (2,577) |
Tax adjustment related to discrete items | (14) | 99 |
Total benefit (expense) for income taxes | 2,150 | (2,676) |
Net income (loss) | $ (4,197) | $ 6,525 |
Basic earnings per common share: | ||
Continuing operations (in dollars per Share) | $ (0.23) | $ 0.36 |
Continuing operations (in dollars per Share) | (0.23) | 0.36 |
Dividends declared per common share (in dollars per Share) | $ 0.075 | $ 0.075 |
Weighted average number of common and common equivalent shares outstanding: | ||
Basic (in Shares) | 17,805 | 18,057 |
Diluted (in Shares) | 17,805 | 18,097 |
Funeral | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 61,742 | $ 56,163 |
Field costs and expenses: | ||
Cost of operating | 21,057 | 18,097 |
Corporate costs and expenses: | ||
Operating income | 4,311 | 18,076 |
Income (loss) before income taxes | 4,119 | 17,862 |
Cemetery | ||
Segment Reporting Information [Line Items] | ||
Revenues | 15,748 | 12,918 |
Field costs and expenses: | ||
Cost of operating | 25,063 | 22,261 |
Corporate costs and expenses: | ||
Operating income | 4,167 | 3,524 |
Income (loss) before income taxes | 4,105 | 3,585 |
Service Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 40,732 | 36,652 |
Property and Merchandise [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 31,271 | 28,579 |
Other revenue | ||
Segment Reporting Information [Line Items] | ||
Revenues | 5,487 | 3,850 |
Other revenue | Funeral | ||
Segment Reporting Information [Line Items] | ||
Revenues | 3,483 | 2,221 |
Other revenue | Cemetery | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 2,004 | $ 1,629 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net income | $ (4,197) | $ 6,525 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 4,549 | 4,323 |
Provision for bad debt and credit losses | 690 | 366 |
Stock-based compensation expense | 831 | 585 |
Deferred income tax (benefit) expense | 3,596 | 991 |
Amortization of deferred financing costs | 200 | 94 |
Amortization of capitalized commissions on preneed contracts | 141 | 138 |
Accretion of discount on convertible subordinated notes | 65 | 57 |
Accretion of debt discount, net of debt premium on senior notes | 75 | 120 |
Net loss on sale of businesses and disposal of other assets | 60 | 167 |
Goodwill and other impairments | 14,693 | 0 |
Other | 19 | 0 |
Changes in operating assets and liabilities that provided (required) cash: | ||
Accounts and preneed receivables | 2,179 | 630 |
Inventories, prepaid and other current assets | (8,748) | 736 |
Intangible and other non-current assets | (103) | (24) |
Preneed funeral and cemetery trust investments | (2,890) | (1,269) |
Accounts payable | (2,133) | (2,895) |
Accrued and other liabilities | (114) | (1,292) |
Deferred preneed funeral and cemetery revenue | 1,080 | 117 |
Deferred preneed funeral and cemetery receipts held in trust | 3,553 | 1,625 |
Net cash provided by operating activities | 13,546 | 10,994 |
Cash flows from investing activities: | ||
Acquisitions | (28,000) | 0 |
Net proceeds from the sale of other assets | 78 | 100 |
Capital expenditures | (2,738) | (3,543) |
Net cash used in investing activities | (30,660) | (3,443) |
Cash flows from financing activities: | ||
Borrowings from the credit facility | 63,200 | 10,100 |
Payments against the credit facility | (33,000) | (16,200) |
Payments on acquisition debt and obligations under finance leases | (487) | (471) |
Payments on contingent consideration recorded at acquisition date | (169) | (162) |
Proceeds from the exercise of stock options and employee stock purchase plan contributions | 361 | 746 |
Taxes paid on restricted stock vestings and exercise of non-qualified options | (234) | (174) |
Dividends paid on common stock | (1,339) | (1,360) |
Net cash provided by (used in) financing activities | 28,318 | (7,521) |
Net increase in cash and cash equivalents | 11,204 | 30 |
Cash and cash equivalents at beginning of period | 716 | 644 |
Cash and cash equivalents at end of period | 11,920 | 674 |
Senior Notes [Member] | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of deferred financing costs | 67 | 34 |
Cash flows from financing activities: | ||
Payments of Debt Issuance Costs | $ (14) | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock |
Beginning balance, shares outstanding at Dec. 31, 2018 | 18,078 | ||||
Beginning Balance at Dec. 31, 2018 | $ 221,492 | $ 257 | $ 243,849 | $ 71,680 | $ (94,294) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income (Loss) | 6,525 | 6,525 | |||
Isuuance of common stock, shares | 23 | ||||
Issuance of common stock | 275 | $ 0 | 275 | ||
Exercise of stock options, shares | 71 | ||||
Exercise of stock options | 472 | $ 1 | 471 | ||
Issuance of restricted common stock, shares | 25 | ||||
Issuance of restricted common stock | 0 | $ 0 | 0 | ||
Cancellation and retirement of restricted common stock, shares | (9) | ||||
Cancellation and retirement of restricted common stock and stock options | (174) | $ 0 | (174) | ||
Stock-based compensation expense | 585 | 585 | |||
Dividends on common stock | (1,360) | (1,360) | |||
Other, shares | 15 | ||||
Other | 294 | 294 | |||
Ending balance, shares outstanding at Mar. 31, 2019 | 18,203 | ||||
Ending Balance at Mar. 31, 2019 | 228,109 | $ 258 | 243,940 | 78,205 | (94,294) |
Beginning balance, shares outstanding at Dec. 31, 2019 | 17,855 | ||||
Beginning Balance at Dec. 31, 2019 | 226,569 | $ 259 | 242,147 | 86,213 | (102,050) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income (Loss) | (4,197) | (4,197) | |||
Isuuance of common stock, shares | 36 | ||||
Issuance of common stock | 361 | $ 0 | 361 | ||
Issuance of restricted common stock, shares | 10 | ||||
Issuance of restricted common stock | 0 | $ 0 | 0 | ||
Cancellation and retirement of restricted common stock, shares | (10) | ||||
Cancellation and retirement of restricted common stock and stock options | (234) | $ 0 | (234) | ||
Stock-based compensation expense | 831 | 831 | |||
Dividends on common stock | (1,339) | (1,339) | |||
Other, shares | 18 | ||||
Other | 468 | 468 | |||
Ending balance, shares outstanding at Mar. 31, 2020 | 17,909 | ||||
Ending Balance at Mar. 31, 2020 | $ 222,459 | $ 259 | $ 242,234 | $ 82,016 | $ (102,050) |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company Carriage Services, Inc. (“Carriage,” the “Company,” “we,” “us,” or “our”) is a leading provider of funeral and cemetery services and merchandise in the United States. As of March 31, 2020 , we operated 186 funeral homes in 29 states and 32 cemeteries in 11 states. Our operations are reported in two business segments: Funeral Home Operations, which currently account for approximately 80% of our revenue and Cemetery Operations, which currently account for approximately 20% of our revenue. Our funeral home operations are principally service businesses that generate revenue from sales of burial and cremation services and related merchandise, such as caskets and urns. Funeral services include consultation, the removal and preparation of remains, the use of funeral home facilities for visitation and remembrance services and transportation services. We provide funeral services and products on both an “atneed” (time of death) and “preneed” (planned prior to death) basis. Our cemetery operations generate revenue primarily through sales of cemetery interment rights (primarily grave sites, lawn crypts, mausoleum spaces and niches), related cemetery merchandise (such as outer burial containers, memorial markers and floral placements) and services (interments, inurnments and installation of cemetery merchandise). We provide cemetery services and products on both an atneed and preneed basis. Principles of Consolidation and Interim Condensed Disclosures Our unaudited consolidated financial statements include the Company and its subsidiaries. All intercompany balances and transactions have been eliminated. Our interim consolidated financial statements are unaudited but include all adjustments, which consist of normal, recurring accruals, that are necessary for a fair presentation of our financial position and results of operations as of and for the interim periods presented. Our unaudited consolidated financial statements have been prepared in a manner consistent with the accounting principles described in our Annual Report on Form 10-K for the year ended December 31, 2019 unless otherwise disclosed herein, and should be read in conjunction therewith. On March 11, 2020, the World Health Organization declared the 2019 novel coronavirus disease (“COVID-19”), to be a pandemic, which has spread across the globe and is impacting worldwide economic activity. In light of recent developments relating to COVID-19, the Company has evaluated the impact of COVID-19 on our Consolidated Financial Statements and related disclosures. Reclassifications Certain reclassifications have been made to prior period amounts on our statement of cash flows and consolidated financial position to conform to the current period financial statement presentation with no impact on our previously reported results of operations, total assets and total liabilities or operating cash flows. Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Use of Estimates The preparation of our Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, realization of accounts receivable, goodwill, intangible assets, property and equipment and deferred tax assets and liabilities. We base our estimates on historical experience, third-party data and assumptions that we believe to be reasonable under the circumstances. The results of these considerations form the basis for making judgments about the amount and timing of revenue and expenses, the carrying value of assets and the recorded amounts of liabilities. Actual results may differ from these estimates and such estimates may change if the underlying conditions or assumptions change. Historical performance should not be viewed as indicative of future performance, as there can be no assurance that our results of operations will be consistent from year to year. Inventory Inventory consists primarily of caskets, outer burial containers and cemetery monuments and markers and is recorded at the lower of its cost basis (determined by the specific identification method) or net realizable value. Revenue Recognition Funeral and Cemetery Operations Revenue is recognized when control of the merchandise or services is transferred to the customer. Our performance obligations include the delivery of funeral and cemetery merchandise and services and cemetery property interment rights. Control transfers when merchandise is delivered or services are performed. For cemetery property interment rights, control transfers to the customer when the property is developed and the interment right has been sold and can no longer be marketed or sold to another customer. Sales taxes collected are recognized on a net basis in our consolidated financial statements. On our atneed contracts, we generally deliver the merchandise and perform the services at the time of need. Due to limitations on gatherings imposed to mitigate the spread of COVID-19, some customers have requested that we delay the memorial service until after the limitations have been lifted. Memorial services frequently include performance obligations to direct the service, provide facilities and motor vehicles, catering, flowers, and stationary products. All other performance obligations on these contracts, including arrangement, removal, preparation, embalming, cremation, interment, and delivery of urns and caskets and related memorialization merchandise are fulfilled at the time of need. Personalized marker merchandise and marker installation services sold on atneed contracts are recognized when control is transferred to the customer, generally when the marker is delivered and installed in the cemetery. Ancillary funeral service revenue, which is recorded in Other revenue, represents revenue from our flower shop, pet cremation business and online cremation business in Texas . The earnings from our preneed trust investments, as well as trust management fees charged by our wholly-owned registered investment advisory firm (“CSV RIA”) are recorded in Other revenue . As of March 31, 2020 , CSV RIA provided investment management and advisory services to approximately 73% of our trust assets, for a fee based on the market value of trust assets. Under state trust laws, we are allowed to charge the trust a fee for advising on the investment of the trust assets and these fees are recognized as income in the period in which services are provided. Balances due on undelivered preneed funeral trust contracts have been reclassified to reduce Deferred preneed funeral revenue on our Consolidated Balance Sheet of $8.9 million and $8.7 million at December 31, 2019 and March 31, 2020 , respectively. As these performance obligations are to be completed after the date of death, we cannot quantify the recognition of revenue in future periods. However, we estimate an average maturity period of ten years for preneed funeral contracts. Balances due from customers on delivered preneed cemetery contracts are included in Accounts receivable, net and Preneed cemetery receivables, net on our Consolidated Balance Sheet. Balances due on undelivered preneed cemetery contracts have been reclassified to reduce Deferred preneed cemetery revenue on our Consolidated Balance Sheet. The transaction price allocated to preneed merchandise and service performance obligations that were unfulfilled were $4.8 million and $5.8 million at December 31, 2019 and March 31, 2020 , respectively. As these performance obligations are to be completed after the date of death, we cannot quantify the recognition of revenue in future periods. However, we estimate an average maturity period of eight years for preneed cemetery contracts. See Notes 17 to the Consolidated Financial Statements herein for additional information related to revenue. Arrangements with Multiple Performance Obligations Some of our contracts with customers include multiple performance obligations. For these contracts, we allocate the transaction price to each performance obligation based on its relative standalone selling price, which is based on prices charged to customers per our general price list. Packages for service and ancillary items are offered to help the customer make decisions during emotional and stressful times. Package discounts are reflected net in Revenue . We recognize revenue when the merchandise is transferred or the service is performed, in satisfaction of the corresponding performance obligation. Sales taxes collected are recognized on a net basis in our Consolidated Financial Statements. Preneed Funeral and Cemetery Trust Funds Our preneed and perpetual care trust funds are reported in accordance with the principles of consolidating Variable Interest Entities (“VIE’s”). In the case of preneed trusts, the customers are the legal beneficiaries. In the case of perpetual care trusts, we do not have a right to access the corpus in the perpetual care trusts. We have recognized financial interests of third parties in the trust funds in our financial statements as Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus . The investments of such trust funds are classified as available-for-sale and are reported at fair market value; therefore, the unrealized gains and losses, as well as accumulated and undistributed income and realized gains and losses are recorded to Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus on our Consolidated Balance Sheet. Our future obligations to deliver merchandise and services are reported at estimated settlement amounts. Preneed funeral and cemetery trust investments are reduced by the trust investment earnings that we have been allowed to withdraw in certain states prior to maturity. These earnings, along with preneed contract collections not required to be placed in trust, are recorded in Deferred preneed funeral revenue and Deferred preneed cemetery revenue until the service is performed or the merchandise is delivered. In accordance with respective state laws, we are required to deposit a specified amount into perpetual and memorial care trust funds for each interment right and certain memorials sold. Income from the trust funds is distributed to us and used to provide for the care and maintenance of the cemeteries and mausoleums. Such trust fund income is recognized as revenue when realized by the trust and distributable to us. We are restricted from withdrawing any of the principal balances of these funds. An enterprise is required to perform an analysis to determine whether the enterprise’s variable interest(s) give it a controlling financial interest in a VIE. This analysis identifies the primary beneficiary of a VIE as the enterprise that has both the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. Our analysis continues to support our position as the primary beneficiary in the majority of our funeral and cemetery trust funds. See Notes 6 and 7 to the Consolidated Financial Statements herein for additional information related to our preneed funeral and cemetery trust funds. Funeral and Cemetery Receivables Our funeral receivables are recorded in Accounts Receivable, net and primarily consist of amounts due for funeral services already performed. Our cemetery receivables generally consist of preneed sales of cemetery interment rights and related products and services, which are typically financed through interest-bearing installment sales contracts, generally with terms of up to five years , with such interest income reflected as Other revenue . In substantially all cases, we receive an initial down payment at the time the contract is signed. We do not accrue interest on preneed receivables if they are not paid in accordance with the contractual payment terms given the nature of our merchandise and services, the nature of our contracts with customers and the timing of the delivery of our services. Atneed cemetery receivables and preneed cemetery receivables with payments expected to be received within one year from the balance sheet date are recorded in Accounts receivable, net. Preneed cemetery receivables with payments expected to be received beyond one year from the balance sheet date are recorded in Preneed cemetery receivables, net. For our funeral receivables, we have a collections policy where statements are sent to the customer at 30 days past due. Past due notification letters are sent at 45 days and continue until payment is received or the contract is placed with a third party collections agency. For our preneed cemetery receivables, we have a collections policy where past due notification letters are sent to the customer beginning at 15 days past due and periodically thereafter until the contract is cancelled or payment is received. For both funeral and cemetery receivables, we determine our allowance for credit losses by using a loss-rate methodology, in which we assess our historical write-off of receivables against our total receivables over several years. From this historical loss-rate approach, we also consider the current and forecasted economic conditions expected to be in place over the life of our receivables. These estimates are impacted by a number of factors, including changes in the economy, demographics and competition in our local communities. We monitor our ongoing credit exposure through an active review of our customers’ receivables balance against contract terms and due dates. Our activities include timely performance of our accounts receivable reconciliations, assessment of our aging of receivables, dispute resolution and payment confirmation. We will also monitor any change in our historical write-off of receivables utilized in our loss-rate methodology and assess forecasted changes in market conditions within our credit reserve. In the first quarter of 2020, we increased our allowance for credit losses on our receivables as a result of the economic impact of COVID-19. In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”), Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments and subsequent amendments collectively known as (“Topic 326”). Prior to adoption of Topic 326 , we provided allowances for bad debt and contract cancellations on our receivables based on an analysis of historical trends of collection activity. See Notes 2 and 5 to the Consolidated Financial Statements herein for additional information related the adoption of Topic 326 on January 1, 2020 and the additional disclosures required. Business Combinations Tangible and intangible assets acquired and liabilities assumed are recorded at fair value and goodwill is recognized for any difference between the price of the acquisition and fair value. We recognize the assets acquired, the liabilities assumed and any non-controlling interest in the acquiree at the acquisition date, measured at the fair value as of that date. Acquisition related costs are recognized separately from the acquisition and are expensed as incurred. We customarily estimate related transaction costs known at closing. To the extent that information not available to us at the closing date subsequently becomes available during the allocation period, we may adjust goodwill, intangible assets, assets or liabilities associated with the acquisition. See Note 3 to the Consolidated Financial Statements herein for further information related to our acquisitions. Goodwill The excess of the purchase price over the fair value of identifiable net assets of funeral home businesses and cemeteries acquired is recorded as goodwill. Goodwill has an indefinite life and is not subject to amortization. As such, we test goodwill for impairment on an annual basis as of August 31 st each year. In addition to our annual test, we assess the impairment of goodwill whenever events or changes in circumstances indicate that the carrying value of a reporting unit may be greater than fair value. Factors that could trigger an interim impairment review include, but are not limited to, significant negative industry or economic trends and significant adverse changes in the business climate, which may be indicated by a decline in our market capitalization or decline in operating results. As a result of economic conditions caused by the response to COVID-19, we performed a quantitative assessment of our goodwill at March 31, 2020 . Based on the quantitative assessment conducted at March 31, 2020 , we recorded an impairment for goodwill of $13.6 million during the quarter ended March 31, 2020 , as the carrying amount of our funeral homes in the Eastern Reporting Unit exceeded the fair value. The discounted cash flow valuation uses projections of future cash flows and includes assumptions concerning future operating performance and economic conditions that may differ from actual future cash flows. See Note 4 to the Consolidated Financial Statements included herein for additional information related to our goodwill. Intangible Assets Our intangible assets include tradenames resulting from acquisitions and are included in Intangible and other non-current assets, net on our Consolidated Balance Sheet. Our tradenames are considered to have an indefinite life and are not subject to amortization. As such, we test our intangible assets for impairment on an annual basis as of August 31 st each year. In addition to our annual test, we assess the impairment of intangible assets whenever certain events or changes in circumstances indicate that the carrying value of the intangible asset may be greater than the fair value. Factors that could trigger an interim impairment review include, but are not limited to, significant under-performance relative to historical or projected future operating results and significant negative industry or economic trends. As a result of economic conditions caused by the response to COVID-19, we performed a quantitative assessment of our tradenames at March 31, 2020 . Based on the quantitative assessment conducted at March 31, 2020 , we recorded an impairment for certain of our tradenames of $1.1 million during the quarter ended March 31, 2020 as the carrying amount of these tradenames exceeded the fair value. In determining the fair value of the tradenames, we used the relief from royalty method whereby we determine the fair value of the assets by discounting the cash flows that represent a savings over having to pay a royalty fee for use of the tradenames. The discounted cash flow valuation uses projections of future cash flows and includes assumptions concerning future operating performance and economic conditions that may differ from actual future cash flows and the determination and application of an appropriate royalty rate and discount rate. See Note 9 to the Consolidated Financial Statements included herein for additional information related to our intangible assets. Capitalized Commissions on Preneed Contracts We capitalize sales commissions and other direct selling costs related to preneed cemetery merchandise and services and preneed funeral trust contracts as these costs are incremental and recoverable costs of obtaining a contract with a customer. Our capitalized commissions on preneed contracts are amortized on a straight-line basis over the average maturity period for our preneed cemetery merchandise and services contracts and preneed funeral trust contracts, of eight and ten years, respectively. The selling costs related to the sales of cemetery interment rights, which include real property and other costs related to cemetery development activities, continue to be expensed using the specific identification method in the period in which the sale of the cemetery interment right is recognized as revenue. The selling costs related to preneed funeral insurance contracts continue to be expensed in the period incurred as these contracts are not included on our Consolidated Balance Sheet. See Note 9 to the Consolidated Financial Statements herein for additional information related to our capitalized commissions on preneed contracts. Leases We have operating and finance leases. We lease certain office facilities, certain funeral homes and equipment under operating leases with original terms ranging from one to nineteen years. Many leases include one or more options to renew, some of which include options to extend the leases for up to 26 years. We lease certain funeral homes under finance leases with original terms ranging from ten to forty years. We do not have lease agreements with residual value guarantees, sale-leaseback terms, material restrictive covenants or related parties. We do not have any material sublease arrangements. We determine if an arrangement is a lease at inception based on the facts and circumstances of the agreement. A right-of-use (“ROU”) asset represents our right to use the underlying asset for the lease term and the lease liability represents our obligation to make lease payments arising from the lease. Operating lease ROU assets are included in Operating lease right-of-use assets and operating lease liabilities are included in Current portion of operating lease obligations and Obligations under operating leases, net of current portion on our Consolidated Balance Sheet. Finance lease ROU assets are included in Property, plant and equipment, net and finance lease liabilities are included in Current portion of finance lease obligations and Obligations under finance leases, net of current portion on our Consolidated Balance Sheet. In connection with the goodwill and intangible impairment tests performed at March 31, 2020 , we also evaluated the operating and finance leases of our funeral homes in the Eastern Reporting Unit and concluded that there was no impairment to our operating and finance lease assets. See Notes 13 to the Consolidated Financial Statements included herein for additional information related to our leases. Property, Plant and Equipment Property, plant and equipment (including equipment under finance leases) are stated at cost. The costs of ordinary maintenance and repairs are charged to operations as incurred, while renewals and major replacements that extend the useful economic life of the asset are capitalized. Depreciation of property, plant and equipment (including equipment under finance leases) is computed based on the straight-line method over the estimated useful lives of the assets. Property, plant and equipment is comprised of the following at December 31, 2019 and March 31, 2020 (in thousands): December 31, 2019 March 31, 2020 Land $ 84,608 $ 85,014 Buildings and improvements 242,641 243,582 Furniture, equipment and automobiles 88,046 89,638 Property, plant and equipment, at cost 415,295 418,234 Less: accumulated depreciation (136,095 ) (139,239 ) Property, plant and equipment, net $ 279,200 $ 278,995 During the three months ended March 31, 2020 , we acquired $1.7 million of property, plant and equipment related to our acquisition described in Note 3 to the Consolidated Financial Statements included herein. We recorded depreciation expense of $3.5 million and $3.6 million for the three months ended March 31, 2019 and 2020 , respectively. Long-lived assets, such as property, plant and equipment subject to depreciation and amortization, are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with the Property, Plant and Equipment topic of the Accounting Standards Codification (“ASC”) 360. In connection with the goodwill and intangible impairment tests performed at March 31, 2020 , we also evaluated the long-lived assets of our funeral homes in the Eastern Reporting Unit and concluded that there was no impairment to our long-lived assets. Cemetery Property When we acquire a cemetery, we utilize an internal and external approach to determine the fair value of the cemetery property. From an external perspective, we obtain an accredited appraisal to provide reasonable assurance for property existence, property availability (unrestricted) for development, property lines, available spaces to sell, identifiable obstacles or easements and general valuation inclusive of known variables in that market. From an internal perspective, we conduct a detailed analysis of the acquired cemetery property using other cemeteries in our portfolio as a benchmark. This provides the added benefit of relevant and accurate data that is not available to third party appraisers. Through this thorough internal process, the Company is able to identify viable costs of property based on historical experience, particular markets and demographics, reasonable margins, practical retail prices and park infrastructure and condition. Cemetery property was $87.0 million and $101.8 million , net of accumulated amortization of $41.7 million and $42.5 million at December 31, 2019 and March 31, 2020 , respectively. When cemetery property is sold, the value of the cemetery property (interment right costs) is expensed as amortization using the specific identification method in the period in which the sale of the interment right is recognized as revenue. We recorded amortization expense for cemetery interment rights of $0.8 million and $0.9 million for the three months ended March 31, 2019 and 2020 . Fair Value Measurements In August 2018, the FASB amended “Fair Value Measurements” to modify the disclosure requirements related to fair value. The amendment removes requirements to disclose (1) the amount of and reasons for transfers between Levels 1 and 2 of the fair value hierarchy, (2) our policy related to the timing of transfers between levels, and (3) the valuation processes used in Level 3 measurements. It clarifies that the narrative disclosure of the effect of changes in Level 3 inputs should be based on changes that could occur at the reporting date. The amendment adds a requirement to disclose the range and weighted average of the significant unobservable inputs used in Level 3 measurements. We adopted the new standard as of January 1, 2020 and it had no impact on our consolidated results of operations, consolidated financial position, and cash flows . See Notes 6 and 8 to the Consolidated Financial Statements herein for additional required disclosures related to our fair value measurement of our financial assets and liabilities. Stock Plans and Stock-Based Compensation We have stock-based employee and director compensation plans under which we grant stock, restricted stock, stock options and performance awards. We also have an employee stock purchase plan (“ESPP”). We recognize compensation expense in an amount equal to the fair value of the stock-based awards expected to vest or to be purchased over the requisite service period. Fair value is determined on the date of the grant. The fair value of restricted stock is determined using the stock price on the grant date. The fair value of options or awards containing options is determined using the Black-Scholes valuation model. The fair value of the performance awards related to market performance conditions is determined using a Monte-Carlo simulation pricing model. The fair value of the ESPP is determined based on the discount element offered to employees and the embedded option element, which is determined using an option calculation model. See Note 15 to the Consolidated Financial Statements included herein for additional information related to our stock-based compensation plans. Income Taxes We and our subsidiaries file a consolidated U. S. federal income tax return, separate income tax returns in 15 states in which we operate and combined or unitary income tax returns in 14 states in which we operate. We record deferred taxes for temporary differences between the tax basis and financial reporting basis of assets and liabilities. We classify our deferred tax liabilities and assets as non-current on our Consolidated Balance Sheet. We record a valuation allowance to reflect the estimated amount of deferred tax assets for which realization is uncertain. Management reviews the valuation allowance at the end of each quarter and makes adjustments if it is determined that it is more likely than not that the tax benefits will be realized. We analyze tax benefits for uncertain tax positions and how they are to be recognized, measured, and derecognized in the financial statements; provide certain disclosures of uncertain tax matters; and specify how reserves for uncertain tax positions should be classified on our Consolidated Balance Sheet. The Company’s unrecognized tax benefits reserve for uncertain tax positions primarily relates to pending accounting method changes filed for the tax year ended December 31, 2018 . During 2020 , the Company plans to modify the proposed accounting method filed to exclude the tax position that resulted in the need for an uncertain tax position reserve. The recently passed Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) has certain provisions that are applicable to the Company as follows: (i) allowing net operating losses (“NOLs”) arising in 2018, 2019 and 2020 to be carried back five years; (ii) increasing the taxable income threshold on the interest deduction from 30% to 50% for tax years beginning in 2019 and 2020; (iii) suspending payment requirements for the 6.2% employer portion of Social Security taxes from the date of enactment through the end of 2020, with half the balance due by the end of 2021, and the other half due by the end of 2022; and (iv) our ability to receive employee retention credits up to $5,000 for paying wages to employees who are unable to work, while business operations are suspended. Although the CARES Act allows for a carryback of the net operating losses generated in 2018 and 2019, due to uncertainty in the timing of receiving Internal Revenue Service approval for non-automatic accounting method changes, a reserve has been recorded against the benefit derived from this carrying back that the net operating losses generated; therefore, for the three months ended March 31, 2020 , the reserve for uncertain tax positions was $2.9 million . There is no reserve recorded at March 31, 2019 . Income tax expense (benefit) during interim periods is based on our forecasted annual effective tax rate plus any discrete items, which are recorded in the period in which they occur. Discrete items include, but are not limited to, such events as changes in estimates due to finalization of income tax returns, tax audit settlements, tax effects of exercised or vested stock-based awards and increases or decreases in valuation allowances on deferred tax assets. Our income tax benefit was $2.2 million for the three months ended March 31, 2020 compared to an income tax expense of $2.7 million , which includes a $0.1 million of discrete tax expense for the three months ended March 31, 2019 . Our operating tax rate before discrete items was 28.0% and 33.6% for the three months ended March 31, 2019 and 2020 , respectively. We recorded $0.7 million of additional tax expense in the three months ended March 31, 2020 related to the impairment of goodwill and other intangibles for businesses that were previously acquired as a stock acquisition, which caused an increase of 3.6% in our operating tax rate. Computation of Earnings (Loss) Per Common Share Basic earnings (loss) per share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. Dilutive common equivalent shares consist of stock options. Share-based awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are recognized as participating securities and included in the computation of both basic and diluted earnings per share. Our grants of restricted stock awards to our employees and directors are consider |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS On January 3, 2020 , we acquired one funeral home and cemetery combination business in Lafayette, California for $33.0 million in cash, of which $5.0 million was deposited in escrow in 2019 and $28.0 million was paid in 2020 . We acquired substantially all of the assets and assumed certain operating liabilities of these businesses. The pro forma impact of this acquisition on prior periods is not presented, as the impact is not significant to our reported results. The results of the acquired business is reflected in our Consolidated Statements of Operations from the date of acquisition. The following table summarizes the breakdown of the purchase price allocation for the businesses described above (in thousands): Purchase Price Allocation Current assets $ 2,662 Preneed trust assets 9,089 Property, plant & equipment 1,720 Cemetery property 14,753 Goodwill 12,916 Intangible and other non-current assets 2,506 Assumed liabilities (489 ) Deferred tax liability (527 ) Preneed trust liabilities (9,089 ) Deferred revenue (541 ) Purchase price $ 33,000 The current assets primarily relate to preneed cemetery receivables. The intangible and other non-current assets relate to the fair value of tradenames. The assumed liabilities primarily relate to the obligations associated with delivered preneed merchandise that was not paid for prior to acquisition. As of March 31, 2020 , our accounting for this acquisition was not complete. We recorded adjustments to the purchase price allocation for our 2019 acquisitions during the three months ended March 31, 2020 . The following table summarizes the breakdown of the purchase price allocation for these businesses and the subsequent adjustments made based on additional information which became available prior to March 31, 2020 (in thousands): Initial Purchase Price Allocation Adjustments Adjusted Purchase Price Allocation Current assets $ 1,482 $ 33 $ 1,515 Preneed trust assets 15,891 — 15,891 Property, plant & equipment 21,680 — 21,680 Cemetery property 11,994 — 11,994 Goodwill 99,344 (880 ) 98,464 Intangible and other non-current assets 8,269 — 8,269 Assumed liabilities (657 ) (145 ) (802 ) Preneed trust liabilities (15,463 ) — (15,463 ) Deferred revenue (1,633 ) 992 (641 ) Purchase price $ 140,907 $ — $ 140,907 As of March 31, 2020 , our accounting for our 2019 acquisitions was not complete. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY ISSUED ACCOUNTING STANDARDS | RECENTLY ISSUED ACCOUNTING STANDARDS Financial Instruments - Credit Losses Topic 326 applies to all entities holding financial assets measured at amortized cost, including loans, trade and financed receivables and other financial instruments. The guidance introduces a new credit reserving model known as Current Expected Credit Loss (“CECL”), which requires earlier recognition of credit losses, while also providing additional transparency about credit risk. The CECL model requires all expected credit losses to be measured based on historical experience, current conditions and reasonable and supportable forecasts about collectability. In addition, Topic 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not will be required to sell. On January 1, 2020, we adopted Topic 326 using the modified retrospective method and the impact was not material to our Consolidated Financial Statements. See Notes 5 and 6 to the Consolidated Financial Statements herein for additional disclosures required by Topic 326. Income Taxes In December 2019, the FASB issued ASU, Income Taxes (“Topic 740”), to simplify the accounting for income taxes. The amendments in this update are effective for fiscal years beginning after December 15, 2020, with early adoption permitted. On January 1, 2020, we early adopted the provisions of this ASU using the prospective method and the impact was not material to our Consolidated Financial Statements. Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued ASU, Reference Rate Reform (“Topic 848”) to provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. Generally Accepted Accounting Principles (“GAAP”) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference London InterBank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating our contracts and the optional expedients provided by the new standard. |
Goodwill (Notes)
Goodwill (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL The following table presents changes in goodwill in the accompanying Consolidated Balance Sheet for the year ended December 31, 2019 and the three months ended March 31, 2020 (in thousands): December 31, 2019 March 31, 2020 Goodwill at the beginning of the period $ 303,887 $ 398,292 Net increase in goodwill related to acquisitions 99,344 12,036 Decrease in goodwill related to divestitures (4,939 ) — Decrease in goodwill related to impairments — (13,632 ) Goodwill at the end of the period $ 398,292 $ 396,696 See Notes 1 and 3 to the Consolidated Financial Statements included herein, for a discussion of the methodology used for our goodwill impairment test and discussion of our acquisitions, respectively. |
Trust Investments
Trust Investments | 3 Months Ended |
Mar. 31, 2020 | |
Preneed Trust Investments [Abstract] | |
Trust Investments | TRUST INVESTMENTS Preneed trust investments represent trust fund assets that we are generally permitted to withdraw as the services and merchandise are provided to customers. Preneed funeral and cemetery contracts are secured by payments from customers, less amounts not required by law to be deposited into trust. Preneed trust investments are reduced by the trust earnings we have been allowed to withdraw in certain states prior to our performance. These earnings are recognized as earned, in Other revenue , when a service is performed or merchandise is delivered. Trust management fees charged by CSV RIA are included as revenue in the period in which they are earned. Cemetery perpetual care trust investments represent a portion of the proceeds from the sale of cemetery property interment rights which we are required by various state laws to deposit into perpetual care trust funds. The income earned from these perpetual care trusts offsets maintenance expenses for cemetery property and memorials. This trust fund income is recognized, as earned, in Other revenue. Where quoted prices are available in an active market, investments held by the trusts are classified as Level 1 investments pursuant to the three-level valuation hierarchy. Our Level 1 investments include cash, U.S. treasury debt, common stock and equity mutual funds. Where quoted market prices are not available for the specific security, then fair values are estimated by using quoted prices of similar securities in active markets or inputs other than quoted prices that can corroborate observable market data. These investments are fixed income securities, including foreign debt, corporate debt, preferred stocks, mortgage-backed securities and fixed income mutual funds and other investments, all of which are classified within Level 2 of the valuation hierarchy. We review and update our fair value hierarchy classifications quarterly. See Note 8 to the Consolidated Financial Statements included herein for further information of the fair value measurement. As of March 31, 2020, we have net unrealized losses of $45.1 million in our trusts. At March 31, 2020, these net unrealized losses represented 18% of our original cost basis of $245.2 million . The decline in fair value is largely due to changes in interest rates and other market conditions. Our trusts have been and continue to be impacted by adverse conditions in the U.S. and global financial markets primarily as a result of COVID-19. Our investments are diversified across multiple industry segments using a balanced allocation strategy to minimize long-term risk. In addition, we do not intend to sell and it is likely that we will not be required to sell the securities prior to their anticipated recovery. Changes in unrealized gains and/or losses related to these securities are reflected in Other comprehensive income (loss) and offset by the Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus interests in those unrealized gains and/or losses. There is no impact on earnings until such time that the loss is realized in the trusts, allocated to the preneed contracts and the services are performed or the merchandise is delivered, causing the contract to be withdrawn from the trust in accordance with state regulations. For available-for-sale debt securities in an unrealized loss position, we first assess whether we intend to sell or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If our assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. We rely on our trust investments to provide funding for the various contractual obligations that arise upon maturity of the underlying preneed contracts. Because of the long-term relationship between the establishment of trust investments and the required performance of the underlying contractual obligations, the impact of current market conditions that may exist at any given time is not necessarily indicative of our ability to generate profit on our future performance obligations. Preneed Cemetery Trust Investments The components of Preneed cemetery trust investments on our Consolidated Balance Sheet at December 31, 2019 and March 31, 2020 are as follows (in thousands): December 31, 2019 March 31, 2020 Preneed cemetery trust investments, at market value $ 74,572 $ 63,130 Less: allowance for contract cancellation (2,190 ) (2,354 ) Preneed cemetery trust investments, net $ 72,382 $ 60,776 The cost and market values associated with preneed cemetery trust investments at March 31, 2020 are detailed below (in thousands): Fair Value Hierarchy Level Cost Unrealized Gains Unrealized Losses Fair Market Value Cash and money market accounts 1 $ 3,516 $ — $ — $ 3,516 Fixed income securities: Foreign debt 2 8,294 180 (1,687 ) 6,787 Corporate debt 2 15,474 301 (2,979 ) 12,796 Preferred stock 2 13,691 35 (2,289 ) 11,437 Mortgage-backed securities 2 451 — (251 ) 200 Common stock 1 34,456 1,646 (11,022 ) 25,080 Mutual funds: Fixed Income 2 2,583 161 (400 ) 2,344 Trust securities $ 78,465 $ 2,323 $ (18,628 ) $ 62,160 Accrued investment income $ 970 $ 970 Preneed cemetery trust investments $ 63,130 Market value as a percentage of cost 79.2 % The estimated maturities of the fixed income securities included above are as follows (in thousands): Due in one year or less $ — Due in one to five years 4,178 Due in five to ten years 8,025 Thereafter 19,017 Total fixed income securities $ 31,220 The cost and market values associated with preneed cemetery trust investments at December 31, 2019 are detailed below (in thousands): Fair Value Hierarchy Level Cost Unrealized Gains Unrealized Losses Fair Market Value Cash and money market accounts 1 $ 5,729 $ — $ — $ 5,729 Fixed income securities: Foreign debt 2 5,609 312 (243 ) 5,678 Corporate debt 2 16,916 1,044 (649 ) 17,311 Preferred stock 2 14,206 904 (164 ) 14,946 Mortgage-backed securities 2 517 — (114 ) 403 Common stock 1 28,569 2,766 (3,017 ) 28,318 Mutual funds: Fixed income 2 1,463 72 (85 ) 1,450 Trust Securities $ 73,009 $ 5,098 $ (4,272 ) $ 73,835 Accrued investment income $ 737 737 Preneed cemetery trust investments $ 74,572 Market value as a percentage of cost 101.1 % The following table summarized our fixed income securities within our preneed cemetery trust investment in an unrealized loss position at March 31, 2020 , aggregated by major security type and length of time in a continuous unrealized loss position (in thousands): March 31, 2020 In Loss Position Less than 12 months In Loss Position Greater than 12 months Total Fair market value Unrealized Losses Fair market value Unrealized Losses Fair market value Unrealized Losses Fixed income securities: Foreign debt $ 4,655 $ (1,153 ) $ 168 $ (534 ) $ 4,823 $ (1,687 ) Corporate debt 5,810 (1,412 ) 3,253 (1,567 ) 9,063 (2,979 ) Preferred stock 10,813 (2,289 ) — — 10,813 (2,289 ) Mortgage-backed securities 80 (115 ) 120 (136 ) 200 (251 ) Total fixed income securities with an unrealized loss $ 21,358 $ (4,969 ) $ 3,541 $ (2,237 ) $ 24,899 $ (7,206 ) December 31, 2019 In Loss Position Less than 12 months In Loss Position Greater than 12 months Total Fair market value Unrealized Losses Fair market value Unrealized Losses Fair market value Unrealized Losses Fixed income securities: Foreign debt $ 268 $ (42 ) $ 758 $ (201 ) $ 1,026 $ (243 ) Corporate debt 1,368 (168 ) 4,520 (481 ) 5,888 (649 ) Preferred stock 4,135 (164 ) — — 4,135 (164 ) Mortgage-backed securities — — 402 (114 ) 402 (114 ) Total fixed income securities with an unrealized loss $ 5,771 $ (374 ) $ 5,680 $ (796 ) $ 11,451 $ (1,170 ) Preneed cemetery trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three Months Ended March 31, 2019 2020 Investment income $ 571 $ 319 Realized gains 1,458 1,916 Realized losses (635 ) (1,372 ) Expenses and taxes (278 ) (187 ) Net change in deferred preneed cemetery receipts held in trust (1,116 ) (676 ) $ — $ — Purchases and sales of investments in the preneed cemetery trusts for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three Months Ended March 31, 2019 2020 Purchases $ (11,626 ) $ (18,857 ) Sales 2,992 13,231 Preneed Funeral Trust Investments The components of Preneed funeral trust investments on our Consolidated Balance Sheet at December 31, 2019 and March 31, 2020 are as follows (in thousands): December 31, 2019 March 31, 2020 Preneed funeral trust investments, at market value $ 99,246 $ 84,337 Less: allowance for expected credit losses and cancellations (2,911 ) (2,960 ) Preneed funeral trust investments $ 96,335 $ 81,377 The cost and market values associated with preneed funeral trust investments at March 31, 2020 are detailed below (in thousands): Fair Value Hierarchy Level Cost Unrealized Gains Unrealized Losses Fair Market Value Cash and money market accounts 1 $ 22,033 $ — $ — $ 22,033 Fixed income securities: U.S treasury debt 1 820 17 — 837 Foreign debt 2 8,185 180 (1,631 ) 6,734 Corporate debt 2 14,374 290 (2,826 ) 11,838 Preferred stock 2 13,127 21 (2,198 ) 10,950 Mortgage-backed securities 2 503 — (252 ) 251 Common stock 1 32,946 1,648 (10,383 ) 24,211 Mutual funds: Fixed income 2 2,519 162 (302 ) 2,379 Other investments 2 4,163 — — 4,163 Trust securities $ 98,670 $ 2,318 $ (17,592 ) $ 83,396 Accrued investment income $ 941 $ 941 Preneed funeral trust investments $ 84,337 Market value as a percentage of cost 84.5 % The estimated maturities of the fixed income securities included above are as follows (in thousands): Due in one year or less $ — Due in one to five years 5,044 Due in five to ten years 7,093 Thereafter 18,473 Total fixed income securities $ 30,610 The cost and market values associated with preneed funeral trust investments at December 31, 2019 are detailed below (in thousands): Fair Value Hierarchy Level Cost Unrealized Gains Unrealized Losses Fair Market Value Cash and money market accounts 1 $ 24,160 $ — $ — $ 24,160 Fixed income securities: U.S. treasury debt 1 822 — — 822 Foreign debt 2 5,587 309 (232 ) 5,664 Corporate debt 2 16,109 992 (646 ) 16,455 Preferred stock 2 14,094 874 (198 ) 14,770 Mortgage-backed securities 2 585 — (117 ) 468 Common stock 1 27,652 2,773 (2,869 ) 27,556 Mutual funds: Equity 1 772 617 (4 ) 1,385 Fixed income 2 4,364 107 (107 ) 4,364 Other investments 2 2,902 — — 2,902 Trust securities $ 97,047 $ 5,672 $ (4,173 ) $ 98,546 Accrued investment income $ 700 $ 700 Preneed funeral trust investments $ 99,246 Market value as a percentage of cost 101.5 % The following table summarized our fixed income securities within our preneed funeral trust investment in an unrealized loss position at March 31, 2020 , aggregated by major security type and length of time in a continuous unrealized loss position (in thousands): March 31, 2020 In Loss Position Less than 12 months In Loss Position Greater than 12 months Total Fair market value Unrealized Losses Fair market value Unrealized Losses Fair market value Unrealized Losses Fixed income securities: Foreign debt $ 4,605 $ (1,152 ) $ 152 $ (479 ) $ 4,757 $ (1,631 ) Corporate debt 5,248 (1,357 ) 3,127 (1,469 ) 8,375 (2,826 ) Preferred stock 10,594 (2,198 ) — — 10,594 (2,198 ) Mortgage-backed securities 84 (115 ) 135 (137 ) 219 (252 ) Total fixed income securities with an unrealized loss 20,531 (4,822 ) 3,414 (2,085 ) 23,945 (6,907 ) December 31, 2019 In Loss Position Less than 12 months In Loss Position Greater than 12 months Total Fair market value Unrealized Losses Fair market value Unrealized Losses Fair market value Unrealized Losses Fixed income securities: Foreign debt $ 274 $ (43 ) $ 723 $ (189 ) $ 997 $ (232 ) Corporate debt 1,403 (172 ) 4,433 (474 ) 5,836 (646 ) Preferred stock 4,412 (198 ) — — 4,412 (198 ) Mortgage-backed securities — — 439 (117 ) 439 (117 ) Total fixed income securities with an unrealized loss 6,089 (413 ) 5,595 (780 ) 11,684 (1,193 ) Preneed funeral trust investment security transactions recorded in Other, net on the Consolidated Statements of Operations for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three Months Ended March 31, 2019 2020 Investment income $ 573 $ 258 Realized gains 1,320 2,551 Realized losses (583 ) (1,129 ) Expenses and taxes (228 ) (97 ) Net change in deferred preneed funeral receipts held in trust (1,082 ) (1,583 ) $ — $ — Purchases and sales of investments in the preneed funeral trusts for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three Months Ended March 31, 2019 2020 Purchases $ (10,759 ) $ (18,538 ) Sales 2,785 15,968 Cemetery Perpetual Care Trust Investments Care trusts’ corpus on our Consolidated Balance Sheet represent the corpus of those trusts plus undistributed income. The components of Care trusts’ corpus as of December 31, 2019 and March 31, 2020 are as follows (in thousands): December 31, 2019 March 31, 2020 Cemetery perpetual care trust investments, at market value $ 64,047 $ 52,677 Obligations due to (from) trust (631 ) 97 Care trusts’ corpus $ 63,416 $ 52,774 The following table reflects the cost and fair market values associated with the trust investments held in perpetual care trust funds at March 31, 2020 (in thousands): Fair Value Hierarchy Level Cost Unrealized Gains Unrealized Losses Fair Market Value Cash and money market accounts 1 $ 4,128 $ — $ — $ 4,128 Fixed income securities: Foreign debt 2 7,041 139 (1,448 ) 5,732 Corporate debt 2 12,357 277 (2,345 ) 10,289 Preferred stock 2 11,988 45 (2,138 ) 9,895 Mortgage-backed securities 2 347 — (193 ) 154 Common stock 1 26,621 1,261 (8,736 ) 19,146 Mutual funds: Fixed Income 2 2,924 124 (511 ) 2,537 Trust securities $ 65,406 $ 1,846 $ (15,371 ) $ 51,881 Accrued investment income $ 796 $ 796 Cemetery perpetual care investments $ 52,677 Market value as a percentage of cost 79.3 % The estimated maturities of the fixed income securities included above are as follows (in thousands): Due in one year or less $ — Due in one to five years 3,296 Due in five to ten years 6,241 Thereafter 16,533 Total fixed income securities $ 26,070 The following table reflects the cost and fair market values associated with the trust investments held in perpetual care trust funds at December 31, 2019 (in thousands): Fair Value Hierarchy Level Cost Unrealized Gains Unrealized Losses Fair Market Value Cash and money market accounts 1 $ 4,624 $ — $ — $ 4,624 Fixed income securities: Foreign debt 2 4,200 238 (175 ) 4,263 Corporate debt 2 11,658 802 (534 ) 11,926 Preferred stock 2 10,782 666 (106 ) 11,342 Mortgage-backed securities 2 324 — (71 ) 253 Common stock 1 21,594 3,399 (1,911 ) 23,082 Mutual funds: Equity 1 233 146 (1 ) 378 Fixed income 2 7,156 618 (107 ) 7,667 Trust securities $ 60,571 $ 5,869 $ (2,905 ) $ 63,535 Accrued investment income $ 512 $ 512 Cemetery perpetual care investments $ 64,047 Market value as a percentage of cost 104.9 % The following table summarized our fixed income securities within our perpetual care trust investment in an unrealized loss position at March 31, 2020 , aggregated by major security type and length of time in a continuous unrealized loss position (in thousands): March 31, 2020 In Loss Position Less than 12 months In Loss Position Greater than 12 months Total Fair market value Unrealized Losses Fair market value Unrealized Losses Fair market value Unrealized Losses Fixed income securities: Foreign debt $ 4,069 $ (976 ) $ 151 $ (472 ) $ 4,220 $ (1,448 ) Corporate debt 4,077 (1,042 ) 2,803 (1,303 ) 6,880 (2,345 ) Preferred stock 9,173 (2,138 ) — — 9,173 (2,138 ) Mortgage-backed securities 61 (88 ) 93 (105 ) 154 (193 ) Total fixed income securities with an unrealized loss $ 17,380 $ (4,244 ) $ 3,047 $ (1,880 ) $ 20,427 $ (6,124 ) December 31, 2019 In Loss Position Less than 12 months In Loss Position Greater than 12 months Total Fair market value Unrealized Losses Fair market value Unrealized Losses Fair market value Unrealized Losses Fixed income securities: Foreign debt $ 168 $ (26 ) $ 549 $ (149 ) $ 717 $ (175 ) Corporate debt 1,057 (196 ) 3,253 (338 ) 4,310 (534 ) Preferred stock 2,989 (106 ) — — 2,989 (106 ) Mortgage-backed securities — — 252 (71 ) 252 (71 ) Total fixed income securities with an unrealized loss $ 4,214 $ (328 ) $ 4,054 $ (558 ) $ 8,268 $ (886 ) Perpetual care trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three Months Ended March 31, 2019 2020 Realized gains $ 354 $ 709 Realized losses (171 ) (679 ) Net change in Care trusts’ corpus (183 ) (30 ) Total $ — $ — Perpetual care trust investment security transactions recorded in Other revenue for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three Months Ended March 31, 2019 2020 Investment income $ 1,087 $ 1,405 Realized losses, net (290 ) (36 ) Total $ 797 $ 1,369 Purchases and sales of investments in the perpetual care trusts for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three Months Ended March 31, 2019 2020 Purchases $ (9,157 ) $ (14,612 ) Sales 1,702 12,694 |
Receivables
Receivables | 3 Months Ended |
Mar. 31, 2020 | |
Preneed Cemetery Receivables [Abstract] | |
Receivables | RECEIVABLES Accounts Receivable Accounts receivable is comprised of the following at December 31, 2019 and March 31, 2020 (in thousands): March 31, 2020 Funeral Cemetery Corporate Total Trade and financed receivables $ 9,537 $ 11,057 $ — $ 20,594 Other receivables 311 870 298 1,479 Allowance for credit losses (258 ) (970 ) — (1,228 ) Accounts receivable, net $ 9,590 $ 10,957 $ 298 $ 20,845 December 31, 2019 Funeral Cemetery Corporate Total Trade and financed receivables $ 10,046 $ 10,508 $ — $ 20,554 Other receivables 935 157 681 1,773 Allowance for bad debt and contract cancellation (223 ) (626 ) — (849 ) Accounts receivable, net $ 10,758 $ 10,039 $ 681 $ 21,478 Other receivables include supplier rebates, commissions due from third party insurance companies and perpetual care income receivables. We do not provide an allowance for credit losses for these receivables as we have historically not had any collectability issues nor do we expect any in the foreseeable future. The following table summarizes the activity in our allowance for credit losses by portfolio segment for three months ended March 31, 2020 (in thousands): January 1, 2020 Provision for Credit Losses Allowance Recorded at Acquisition Write Offs Recoveries March 31, 2020 Trade and financed receivables: Funeral $ (223 ) $ (325 ) $ — $ 465 $ (175 ) $ (258 ) Cemetery (626 ) (137 ) (287 ) 80 — (970 ) Total allowance for credit losses on Trade and financed receivables $ (849 ) $ (462 ) $ (287 ) $ 545 $ (175 ) $ (1,228 ) As noted in Note 3, we acquired preneed cemetery receivables in connection with the business acquired during the three months ended March 31, 2020 . We recorded an allowance for credit losses of $0.6 million on these acquired receivables ( $0.3 million current portion shown above in Accounts Receivable, net and $0.3 million non-current portion shown below in Preneed Cemetery Receivables, net ). We accounted for the allowance for credit losses on these purchased financed assets using specific identification as these assets have a unique set of risk characteristics. Bad debt expense for accounts receivable totaled $0.2 million for the three months ended March 31, 2019 . Preneed Cemetery Receivables Our preneed cemetery receivables are comprised of the following at December 31, 2019 and March 31, 2020 (in thousands): December 31, 2019 March 31, 2020 Cemetery interment rights $ 31,366 $ 33,067 Cemetery merchandise and services 9,950 10,337 Preneed cemetery receivables $ 41,316 $ 43,404 The components of our preneed cemetery receivables at December 31, 2019 and March 31, 2020 are as follows (in thousands): December 31, 2019 March 31, 2020 Preneed cemetery receivables $ 41,316 $ 43,404 Less: unearned finance charges (4,522 ) (4,404 ) Preneed cemetery receivables, at amortized cost $ 36,794 $ 39,000 Less: allowance for contract cancellation and credit losses (1,916 ) (2,674 ) Less: balances due on undelivered cemetery preneed contracts (4,823 ) (5,837 ) Less: amounts in accounts receivable (9,882 ) (10,087 ) Preneed cemetery receivables, net $ 20,173 $ 20,402 The following table summarizes the activity in our allowance for credit losses for Preneed cemetery receivables, net for three months ended March 31, 2020 (in thousands): January 1, 2020 Provision for Credit Losses Allowance Recorded at Acquisition Write Offs March 31, 2020 Total allowance for credit losses on Preneed cemetery receivables, net $ (1,290 ) $ (228 ) $ (318 ) $ 132 $ (1,704 ) Bad debt expense for our preneed cemetery receivables totaled $0.2 million for the three months ended March 31, 2019 . The amortized cost basis of our preneed cemetery receivables by year of origination as of March 31, 2020 is as follows (in thousands): 2020 2019 2018 2017 2016 Prior Total Total preneed cemetery receivables, at amortized cost $ 4,450 $ 15,420 $ 8,300 $ 5,050 $ 2,900 $ 2,880 $ 39,000 The aging of past due preneed cemetery receivables as of March 31, 2020 is as follows (in thousands): 31-60 Past Due 61-90 Past Due 91-120 Past Due >120 Past Due Total Past Due Current Total Recognized revenue $ 807 $ 458 $ 242 $ 2,168 $ 3,675 $ 28,892 $ 32,567 Deferred revenue 243 165 92 237 737 10,100 10,837 Total contracts $ 1,050 $ 623 $ 334 $ 2,405 $ 4,412 $ 38,992 $ 43,404 |
Receivables from Preneed Trusts
Receivables from Preneed Trusts | 3 Months Ended |
Mar. 31, 2020 | |
Receivables From Preneed Trusts [Abstract] | |
RECEIVABLES FROM PRENEED TRUSTS | RECEIVABLES FROM PRENEED TRUSTS Our Receivables from preneed trusts represent assets in trusts which are controlled and operated by third parties in which we do not have a controlling financial interest ( less than 50% ) in the trust assets. We account for these investments at cost. As of December 31, 2019 and March 31, 2020 , receivables from preneed trusts are as follows (in thousands): December 31, 2019 March 31, 2020 Preneed trust funds, at cost $ 18,581 $ 18,650 Less: allowance for contract cancellation (557 ) (561 ) Receivables from preneed trusts, net $ 18,024 $ 18,089 The following summary reflects the composition of the assets held in trust and controlled by third parties to satisfy our future obligations under preneed arrangements related to the preceding contracts at March 31, 2020 and December 31, 2019 . The cost basis includes reinvested interest and dividends that have been earned on the trust assets. Fair value includes unrealized gains and losses on trust assets. The composition of the preneed trust funds at March 31, 2020 is as follows (in thousands): Historical Cost Basis Fair Value Cash and cash equivalents $ 4,580 $ 4,580 Fixed income investments 11,685 11,685 Mutual funds and common stocks 2,380 2,392 Annuities 5 5 Total $ 18,650 $ 18,662 The composition of the preneed trust funds at December 31, 2019 is as follows (in thousands): Historical Cost Basis Fair Value Cash and cash equivalents $ 4,533 $ 4,533 Fixed income investments 11,603 11,603 Mutual funds and common stocks 2,440 2,518 Annuities 5 5 Total $ 18,581 $ 18,659 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS We evaluated our financial assets and liabilities for those financial assets and liabilities that met the criteria of the disclosure requirements and fair value framework. The carrying values of cash and cash equivalents, trade receivables, and trade payables approximate the fair values of those instruments due to the short-term nature of the instruments. The fair values of receivables on preneed funeral and cemetery contracts are impracticable to estimate because of the lack of a trading market and the diverse number of individual contracts with varying terms. Our acquisition debt and Credit Facility (as defined in Note 10) are classified within Level 2 of the Fair Value Measurements hierarchy. The fair values of the acquisition debt and Credit Facility approximate the carrying values of these instruments based on the index yields of similar securities compared to U.S. Treasury yield curves. The fair value of the Convertible Notes (as defined in Note 11) was approximately $6.4 million at March 31, 2020 based on the last traded or broker quoted price. The fair value of the Senior Notes (as defined in Note 12) was approximately $432.3 million at March 31, 2020 based on the last traded or broker quoted price. We identified investments in fixed income securities, common stock and mutual funds presented within the preneed and perpetual care trust investments categories on our Consolidated Balance Sheet as having met the criteria for fair value measurement. As of December 31, 2019 and March 31, 2020 , we did not have any assets that had fair values determined by Level 3 inputs and no liabilities measured at fair value. We account for our investments as available-for-sale and measure them at fair value under standards of financial accounting and reporting for investments in equity instruments that have readily determinable fair values and for all investments in debt securities. See Note 6 to our Consolidated Financial Statements herein for the fair value hierarchy levels of our trust investments. |
Intangible and Other Non-Curren
Intangible and Other Non-Current Assets | 3 Months Ended |
Mar. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Intangible and Other Non-Current Assets | INTANGIBLE AND OTHER NON-CURRENT ASSETS Intangible and other non-current assets at December 31, 2019 and March 31, 2020 are as follows (in thousands): December 31, 2019 March 31, 2020 Prepaid agreements not-to-compete, net of accumulated amortization of $7,195 and $7,382, respectively $ 3,915 $ 3,792 Tradenames 25,233 26,649 Capitalized commissions on preneed contracts, net of accumulated amortization of $1,127 and $1,268, respectively 2,818 2,903 Other 150 113 Intangible and other non-current assets, net $ 32,116 $ 33,457 Prepaid agreements not-to-compete are amortized over the term of the respective agreements, ranging generally from one to ten years. Amortization expense was $168,000 and $187,000 for the three months ended March 31, 2019 and 2020 , respectively. Amortization expense related to capitalized commissions totaled $138,000 and $141,000 for the three months ended March 31, 2019 and 2020 , respectively. See Notes 1 and 3 to the Consolidated Financial Statements included herein, for a discussion of the methodology used for our indefinite-lived intangible asset impairment test and discussion of our acquisitions, respectively. |
CREDIT FACILITY AND ACQUISITION
CREDIT FACILITY AND ACQUISITION DEBT | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITY AND ACQUISITION DEBT | DEBT At December 31, 2019 and March 31, 2020 , our Credit Facility was comprised of: (i) a $190.0 million revolving credit facility, which includes a $15.0 million subfacility for letters of credit and a $10.0 million swingline, and (ii) an accordion or incremental option allowing for future increases in the facility size by an additional amount of up to $75.0 million in the form of increased revolving commitments or incremental term loans. The final maturity of the Credit Facility will occur on May 31, 2023 . The Credit Facility contains customary affirmative covenants, including, but not limited to, covenants with respect to the use of proceeds, payment of taxes and other obligations, continuation of the Company’s business and the maintenance of existing rights and privileges, the maintenance of property and insurance, amongst others. In addition, the Credit Facility also contains customary negative covenants, including, but not limited to, covenants that restrict (subject to certain exceptions) the ability of the Company and its subsidiaries and party thereto as guarantors (the “Credit Facility Guarantors”) to incur additional indebtedness, grant liens on assets, make investments, engage in mergers and acquisitions, and pay dividends and other restricted payments, and certain financial covenants. As of March 31, 2020 , we were subject to the following financial covenant under our Credit Facility: (A) a Total Leverage Ratio not to exceed, (i) 5.75 to 1.00 for the quarters ended March 31, 2020 , June 30, 2020 and September 30, 2020 and (ii) 5.50 to 1.00 for the quarter ended December 31, 2020 and each quarter ended thereafter, (B) a Senior Secured Leverage Ratio (as defined in the Credit Facility) not to exceed 2.00 to 1.00 as of the end of any period of four consecutive fiscal quarters, and (C) a Fixed Charge Coverage Ratio (as defined in the Credit Facility) of not less than 1.20 to 1.00 as of the end of any period of four consecutive fiscal quarters. These financial maintenance covenants are calculated for the Company and its subsidiaries on a consolidated basis. As more fully described below, we were not in compliance with the Total Leverage Ratio covenant for the quarter ended March 31, 2020 . As of March 31, 2020 , the Company was not in compliance with the then current Total Leverage Ratio covenant as noted above. On May 18, 2020, we received a waiver under our Credit Facility for the failure to comply with such Total Leverage Ratio and the Credit Facility was also amended whereby the interest rate margin applicable to borrowings was increased at each pricing level. See Note 19 for additional information related to our debt covenant limited waiver and fourth amendment to our Credit Facility. We are in compliance with the fixed charge coverage ratio and senior secured leverage ratio covenants contained in our Credit Facility as of March 31, 2020 . Our Credit Facility and Acquisition debt consisted of the following at December 31, 2019 and March 31, 2020 (in thousands): December 31, 2019 March 31, 2020 Credit Facility $ 83,800 $ 114,000 Debt issuance costs, net of accumulated amortization of $337 and $464, respectively (1,618 ) (1,491 ) Total Credit Facility $ 82,182 $ 112,509 Acquisition debt $ 6,964 $ 6,547 Less: current portion (1,306 ) — (1,085 ) Total acquisition debt, net of current portion $ 5,658 $ 5,462 We had one letter of credit issued on November 30, 2019 and outstanding under the Credit Facility for approximately $2.0 million , which bears interest at 2.125% and will expire on November 25, 2020 . The letter of credit automatically renews annually and secures our obligations under our various self-insured policies. Outstanding borrowings under our Credit Facility bear interest at either a prime rate or a LIBOR rate, plus an applicable margin based upon our leverage ratio. As of March 31, 2020 , the prime rate margin was equivalent to 1.50% and the LIBOR rate margin was 2.50% . The weighted average interest rate on our Credit Facility for the three months ended March 31, 2019 and 2020 was 4.1% and 4.3% , respectively. Interest expense related to our Credit Facility was $0.4 million and $1.2 million for the three months ended March 31, 2019 and 2020 , respectively. Amortization of debt issuance costs related to our Credit Facility was $0.1 million for both the three months ended March 31, 2019 and 2020 . Acquisition debt consists of deferred purchase price and promissory notes payable to sellers. A majority of the deferred purchase price and notes bear no interest and are discounted at imputed interest rates ranging from 7.3% to 10.0% . Original maturities range from five to twenty years. Imputed interest expense related to our acquisition debt was $0.2 million and $0.1 million for the three months ended March 31, 2019 and 2020 , respectively. |
Convertible Subordinated Notes
Convertible Subordinated Notes | 3 Months Ended |
Mar. 31, 2020 | |
Convertible Subordinated Notes [Abstract] | |
Convertible Subordinated Notes | CONVERTIBLE SUBORDINATED NOTES The carrying values of the liability and equity components of our 2.75% convertible subordinated notes due 2021 (the “Convertible Notes”) at December 31, 2019 and March 31, 2020 are reflected on our Consolidated Balance Sheet as follows (in thousands): December 31, 2019 March 31, 2020 Current liabilities: Principal amount $ 6,319 $ 6,319 Unamortized discount of liability component (319 ) (254 ) Convertible Notes issuance costs, net of accumulated amortization of $130 and $136, respectively (29 ) (23 ) Carrying value of the liability component $ 5,971 $ 6,042 Carrying value of the equity component $ 789 $ 789 The carrying value of the liability component and the carrying value of the equity component are recorded in Convertible subordinated notes due 2021 and Additional paid-in capital , respectively, on our Consolidated Balance Sheet at December 31, 2019 and March 31, 2020 . The balance of our deferred tax liability related to our Convertible Notes was $0.1 million at March 31, 2020 . The fair value of the Convertible Notes, which are Level 2 measurements, was $6.4 million at March 31, 2020 . The Convertible Notes are due in March 2021 and bear interest at 2.75% per year, which is payable semi-annually in arrears on March 15 and September 15 of each year. At March 31, 2020 , the adjusted conversion rate of the Convertible Notes is 45.5554 shares of our common stock per $1,000 principal amount of Convertible Notes, equivalent to an adjusted conversion price of $21.95 per share of common stock. Interest expense on the Convertible Notes included contractual coupon interest expense of $44,000 and $43,000 for the three months ended March 31, 2019 and 2020 , respectively. Accretion of the discount on the Convertible Notes was $57,000 and $65,000 for the three months ended March 31, 2019 and 2020 , respectively. Amortization of debt issuance costs related to our Convertible Notes was $6,000 for both the three months ended March 31, 2019 and 2020 . The remaining unamortized debt discount and the remaining unamortized debt issuance costs are being amortized using the effective interest method over the remaining term of approximately 11 months of the Convertible Notes. The effective interest rate on the unamortized debt discount for both the three months ended March 31, 2019 and 2020 was 11.4% . The effective interest rate on the debt issuance costs for both three months ended March 31, 2019 and 2020 was 3.2% . |
Senior Notes (Notes)
Senior Notes (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | SENIOR NOTES The carrying value of our 6.625% Senior Notes due 2026 (the “Senior Notes”) at December 31, 2019 and March 31, 2020 is reflected on our Consolidated Balance Sheet as follows (in thousands): December 31, 2019 March 31, 2020 Long-term liabilities: Principal amount $ 400,000 $ 400,000 Debt premium, net of accumulated amortization of $0 and $54, respectively 1,688 1,633 Debt discount, net of accumulated amortization of $765 and $894, respectively (4,110 ) (3,981 ) Debt issuance costs, net of accumulated amortization of $216 and $283, respectively (2,131 ) (2,077 ) Carrying value of the Senior Notes $ 395,447 $ 395,575 The fair value of the Senior Notes, which are Level 2 measurements, was $432.3 million at March 31, 2020 . The Senior Notes are due on June 1, 2026 and bear interest at 6.625% per year which is payable semi-annually in arrears on June 1 and December 1 of each year. Interest expense on the Senior Notes included contractual coupon interest expense of $5.4 million and $6.6 million for the three months ended March 31, 2019 and 2020 , respectively. Amortization of the debt discount on the Senior Notes was $120,000 and $129,000 for the three months ended March 31, 2019 and 2020 , respectively and amortization of the debt premium was $54,000 for the three months ended March 31, 2020 . Amortization of debt issuance costs on the Senior Notes was $34,000 and $67,000 for the three months ended March 31, 2019 and 2020 , respectively. The debt discount, the debt premium and the debt issuance costs are being amortized using the effective interest method over the remaining term of approximately 74 months of the Senior Notes. The effective interest rate on the unamortized debt discount and the unamortized debt issuance costs for the initial Senior Notes, which were issued in May 2018, for the three months ended March 31, 2020 was 6.87% and 6.69% , respectively. The effective interest rate on the unamortized debt premium and the unamortized debt issuance costs for the additional Senior Notes, which were issued in December 2019, for the three months ended March 31, 2020 was 6.20% and 6.88% , respectively. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES | LEASES Our lease obligations consist of operating and finance leases related to real estate and equipment. The components of lease cost for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three months ended March 31, Income Statement Classification 2019 2020 Operating lease cost Facilities and grounds expense (1) $ 924 $ 957 Short-term lease cost Facilities and grounds expense (1) 75 57 Finance lease cost: Depreciation of leased assets Depreciation and amortization (2) $ 132 $ 109 Interest on lease liabilities Interest expense 132 126 Total finance lease cost 264 235 Total lease cost $ 1,263 $ 1,249 (1) Facilities and grounds expense is included within Cost of service and General, administrative and other on our Consolidated Statements of Operations. (2) Depreciation and amortization expense is included within Field depreciation and Home office depreciation and amortization on our Consolidated Statements of Operations. Variable lease expense was immaterial for the three months ended March 31, 2019 and 2020 . Supplemental cash flow information related to our leases for the three months ended March 31, 2019 and 2020 is as follows (in thousands): Three months ended March 31, 2019 2020 Cash paid for operating leases included in operating activities 979 696 Cash paid for finance leases included in financing activities 228 200 Right-of-use assets obtained in exchange for new leases for the three months ended March 31, 2019 and 2020 is as follows (in thousands): Three months ended March 31, 2019 2020 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ 77 Right-of-use assets obtained in exchange for new finance lease liabilities — — Supplemental balance sheet information related to finance lease right-of-use assets recorded in Property, plant and equipment, net as of December 31, 2019 and March 31, 2020 is as follows (in thousands): Lease Type December 31, 2019 March 31, 2020 Finance lease right-of-use assets $ 6,770 $ 6,770 Accumulated depreciation (1,566 ) (1,675 ) Finance lease right-of-use assets, net $ 5,204 $ 5,095 The average lease terms and discount rates as of March 31, 2020 are as follows: Weighted-average remaining lease term (years) Weighted-average discount rate Operating leases 10.7 8.1 % Finance leases 6.7 8.2 % The aggregate future lease payments for operating and finance leases as of March 31, 2020 are as follows (in thousands): Operating Finance Lease payments due: Remainder of 2020 $ 2,688 $ 628 2021 3,725 836 2022 3,365 860 2023 3,267 860 2024 3,262 791 Thereafter 17,799 6,291 Total lease payments 34,106 10,266 Less: Interest (11,164 ) (4,192 ) Present value of lease liabilities $ 22,942 $ 6,074 As of March 31, 2020 , we had no additional significant operating or finance leases that had not yet commenced. |
LEASES | LEASES Our lease obligations consist of operating and finance leases related to real estate and equipment. The components of lease cost for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three months ended March 31, Income Statement Classification 2019 2020 Operating lease cost Facilities and grounds expense (1) $ 924 $ 957 Short-term lease cost Facilities and grounds expense (1) 75 57 Finance lease cost: Depreciation of leased assets Depreciation and amortization (2) $ 132 $ 109 Interest on lease liabilities Interest expense 132 126 Total finance lease cost 264 235 Total lease cost $ 1,263 $ 1,249 (1) Facilities and grounds expense is included within Cost of service and General, administrative and other on our Consolidated Statements of Operations. (2) Depreciation and amortization expense is included within Field depreciation and Home office depreciation and amortization on our Consolidated Statements of Operations. Variable lease expense was immaterial for the three months ended March 31, 2019 and 2020 . Supplemental cash flow information related to our leases for the three months ended March 31, 2019 and 2020 is as follows (in thousands): Three months ended March 31, 2019 2020 Cash paid for operating leases included in operating activities 979 696 Cash paid for finance leases included in financing activities 228 200 Right-of-use assets obtained in exchange for new leases for the three months ended March 31, 2019 and 2020 is as follows (in thousands): Three months ended March 31, 2019 2020 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ 77 Right-of-use assets obtained in exchange for new finance lease liabilities — — Supplemental balance sheet information related to finance lease right-of-use assets recorded in Property, plant and equipment, net as of December 31, 2019 and March 31, 2020 is as follows (in thousands): Lease Type December 31, 2019 March 31, 2020 Finance lease right-of-use assets $ 6,770 $ 6,770 Accumulated depreciation (1,566 ) (1,675 ) Finance lease right-of-use assets, net $ 5,204 $ 5,095 The average lease terms and discount rates as of March 31, 2020 are as follows: Weighted-average remaining lease term (years) Weighted-average discount rate Operating leases 10.7 8.1 % Finance leases 6.7 8.2 % The aggregate future lease payments for operating and finance leases as of March 31, 2020 are as follows (in thousands): Operating Finance Lease payments due: Remainder of 2020 $ 2,688 $ 628 2021 3,725 836 2022 3,365 860 2023 3,267 860 2024 3,262 791 Thereafter 17,799 6,291 Total lease payments 34,106 10,266 Less: Interest (11,164 ) (4,192 ) Present value of lease liabilities $ 22,942 $ 6,074 As of March 31, 2020 , we had no additional significant operating or finance leases that had not yet commenced. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation We are a party to various litigation matters and proceedings. For each of our outstanding legal matters, we evaluate the merits of the case, our exposure to the matter, possible legal or settlement strategies, and the likelihood of an unfavorable outcome. If we determine that an unfavorable outcome is probable and can be reasonably estimated, we establish the necessary accruals. We hold certain insurance policies that may reduce cash outflows with respect to an adverse outcome of certain of these litigation matters. Faria, et al. v. Carriage Funeral Holdings, Inc., Superior Court of California, Contra Costa County, Case No. MSC18-00606. On March 26, 2018, six Plaintiffs filed a putative class action against Carriage Funeral Holdings, Inc., our subsidiary, their alleged employer, on behalf of themselves and all similarly situated current and former employees. Plaintiffs seek monetary damages and claim that Carriage Funeral Holdings, Inc. failed to pay minimum wages, provide meal and rest breaks, provide accurately itemized wage statements, reimburse employees for required expenses, and provide wages when due. Plaintiffs also claim that Carriage Funeral Holdings, Inc. violated California Business and Professions Code §17200 et seq. On June 5, 2018, Plaintiffs filed a First Amended Complaint to add a claim under the California Private Attorney General Act. On October 23, 2018, the parties mediated this matter and executed a Memorandum of Understanding for class settlement. In February 2019, a Class Action Settlement Agreement was fully executed and was approved by the Court in October 2019. We paid $0.7 million under the settlement agreement in November 2019. We anticipate the case to formally close in 2020. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS ’ EQUITY Restricted Stock During the three months ended March 31, 2020 , we issued restricted stock to certain employees totaling 10,200 shares that vest over a three -year period and had an aggregate grant date market value of approximately $0.3 million at a weighted average stock price of $25.00 . We recorded stock-based compensation expense, which is included in General, administrative and other expenses , for restricted stock awards of $217,000 and $184,000 , for the three months ended March 31, 2019 and 2020 , respectively. As of March 31, 2020 , we had $1.1 million of total unrecognized compensation costs related to unvested restricted stock awards, which are expected to be recognized over a weighted average period of approximately 1.7 years. Stock Options During the three months ended March 31, 2020 , we did not grant any stock options. We recorded stock-based compensation expense, which is included in General, administrative and other expenses , for stock options of $204,000 and $215,000 , for the three months ended March 31, 2019 and 2020 , respectively. Performance Awards During the three months ended March 31, 2020 , we granted 237,500 performance awards to our leadership team and certain key employees, payable in shares. These awards will vest (if at all) during 2024, provided that certain criteria surrounding our common stock price is achieved and the employee has remained continuously employed with the Company through such date. The fair value of these performance awards was $2.8 million and was determined by using the Monte-Carlo simulation pricing model with the following assumptions: February 19, 2020 Performance period February 19, 2020 - December 31, 2024 Simulation period (years) 4.87 Share price at grant date $25.00 Expected volatility 27.73 % Risk-free interest rate 1.41 % We recorded stock-based compensation expense, which is included in General, administrative and other expenses , for performance awards of $19,000 and $121,000 for the three months ended March 31, 2019 and 2020 , respectively. See Note 19 to the Consolidated Financial Statements herein for additional information related to our performance awards. Employee Stock Purchase Plan During the three months ended March 31, 2020 , employees purchased a total of 26,294 shares at a weighted average price of $13.73 per share. The fair value of the right (option) to purchase shares under the ESPP is estimated at the date of purchase with the four quarterly purchase dates using the following assumptions: 2020 Dividend yield 0.01 % Expected volatility 48.63 % Risk-free interest rate 1.54%,1.57%,1.57%,1.56% Expected life (years) 0.25, 0.50, 0.75, 1.00 We recorded stock-based compensation expense, which is included in General, administrative and other expenses , for the ESPP totaling $105,000 and $163,000 for the three months ended March 31, 2019 and 2020 , respectively. Good to Great Incentive Program During the three months ended March 31, 2020 , we issued 17,991 shares of our common stock to certain employees, which were valued at approximately $449,000 at a grant date stock price of $25.00 . Non-Employee Director Compensation We compensate our non-employee directors through cash payments or unrestricted shares of common stock, payable in quarterly installments, as elected by the non-employee director. On February 19, 2020, our Board of Directors (the “Board”) revised the Director Compensation Policy to provide that each independent director is entitled to a quarterly retainer of $35,000 , payable at the end of the quarter. Committee Chairs and Lead Director payments remain unchanged. For the three months ended March 31, 2020 , we granted an aggregate of 8,821 shares of our common stock to five of our non-employee directors, which were valued at $0.1 million at a weighted average stock price of $16.15 . We recorded stock-based compensation expense, which is included in General, administrative and other expenses , related to annual retainers and common stock awards of $114,000 and $201,000 for the three months ended March 31, 2019 and 2020 , respectively. See Note 19 to the Consolidated Financial Statements herein for additional information related to our Director Compensation Policy. Share Repurchase During the three months ended March 31, 2020 , we did not repurchase any shares of our common stock pursuant to our share repurchase program. At March 31, 2020 , we had approximately $25.6 million available for repurchases under our share repurchase program. Cash Dividends During the three months ended March 31, 2019 and 2020 , our Board declared the following dividends payable on the dates below (in thousands, except per share amounts): 2019 Per Share Dollar Value March 1 st $ 0.075 $ 1,360 2020 Per Share Dollar Value March 1 st $ 0.075 $ 1,339 Accumulated other comprehensive income Our components of accumulated other comprehensive income are as follows (in thousands): Accumulated Other Comprehensive Income Balance at December 31, 2019 $ — Net unrealized losses associated with available-for-sale securities of the trusts (45,104 ) Reclassification of net unrealized losses activity attributable to the Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus 45,104 Balance at March 31, 2020 $ — |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS (LOSS) PER SHARE The following table sets forth the computation of the basic and diluted earnings (loss) per share for the three months ended March 31, 2019 and 2020 (in thousands, except per share data): Three Months Ended March 31, 2019 2020 Numerator for basic and diluted earnings per share: Net income (loss) $ 6,525 $ (4,197 ) Less: Loss (earnings) allocated to unvested restricted stock (33 ) 13 Income (loss) attributable to common stockholders $ 6,492 $ (4,184 ) Denominator: Denominator for basic earnings per common share - weighted average shares outstanding 18,057 17,805 Effect of dilutive securities: Stock options 40 — Denominator for diluted earnings per common share - weighted average shares outstanding 18,097 17,805 Basic earnings (loss) per common share: $ 0.36 $ (0.23 ) Diluted earnings (loss) per common share: $ 0.36 $ (0.23 ) For the three months ended March 31, 2019 and 2020 , there were no shares that would have been issued upon conversion of our Convertible Notes as a result of the application under the if-converted method prescribed by the FASB ASC 260, Earnings Per Share for the fully diluted weighted average shares outstanding and the corresponding calculation of fully diluted earnings per share. For the three months ended March 31, 2019 and 2020 , there were 1,307,000 and 1,034,000 stock options, respectively, excluded from the computation of diluted earnings per share because the inclusion of such stock options would result in an antidilutive effect. For the three months ended March 31, 2020 , 27,000 shares were excluded from the computation of diluted per share amounts because the loss attributable to common stockholders was a loss, not income. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Revenue, disaggregated by major source for each of our reportable segments was as follows (in thousands): Three Months Ended March 31, 2020 Funeral Cemetery Total Services $ 37,559 $ 3,173 $ 40,732 Merchandise 20,700 2,286 22,986 Cemetery property — 8,285 8,285 Other revenue 3,483 2,004 5,487 Total $ 61,742 $ 15,748 $ 77,490 Three Months Ended March 31, 2019 Funeral Cemetery Total Services $ 33,977 $ 2,675 $ 36,652 Merchandise 19,965 1,778 21,743 Cemetery property — 6,836 6,836 Other revenue 2,221 1,629 3,850 Total $ 56,163 $ 12,918 $ 69,081 We conduct funeral and cemetery operations only in the United States. The following table presents Operating income (loss), Income (loss) before income taxes and Total assets by segment (in thousands): Funeral Cemetery Corporate Consolidated Operating income (loss): Three Months Ended March 31, 2020 $ 4,311 $ 4,167 $ (6,328 ) $ 2,150 Three Months Ended March 31, 2019 18,076 3,524 (6,001 ) 15,599 Income (loss) before income taxes: Three Months Ended March 31, 2020 $ 4,119 $ 4,105 $ (14,571 ) $ (6,347 ) Three Months Ended March 31, 2019 17,862 3,585 (12,246 ) 9,201 Total assets: March 31, 2020 $ 762,815 $ 318,960 $ 38,782 $ 1,120,557 December 31, 2019 790,459 314,413 24,883 1,129,755 |
Supplementary Data
Supplementary Data | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplementary Data | SUPPLEMENTARY DATA Balance Sheet The following table presents the detail of certain balance sheet accounts as of December 31, 2019 and March 31, 2020 (in thousands): December 31, 2019 March 31, 2020 Prepaid and other current assets: Prepaid expenses $ 1,596 $ 1,660 Deposit on pending acquisition 5,000 — Federal income taxes receivable 2,973 11,814 State income taxes receivable 986 853 Other current assets 112 120 Total prepaid and other current assets $ 10,667 $ 14,447 Current portion of debt and lease obligations: Current portion of acquisition debt $ 1,306 $ 1,085 Current portion of finance lease obligations 290 298 Current portion of operating lease obligations 1,554 1,836 Total current portion of debt and lease obligations $ 3,150 $ 3,219 Accrued and other liabilities: Accrued salaries and wages $ 4,323 $ 2,803 Accrued incentive compensation 9,199 1,009 Accrued vacation 2,880 2,994 Accrued insurance 2,329 2,532 Accrued interest 2,299 8,979 Accrued ad valorem and franchise taxes 678 1,063 Accrued commissions 560 565 Perpetual care trust payable 401 146 Other accrued liabilities 1,357 837 Unrecognized tax benefit — 2,860 Total accrued and other liabilities $ 24,026 $ 23,788 Other long-term liabilities: Incentive compensation $ 1,267 $ 1,435 Contingent consideration 470 — Total other long-term liabilities $ 1,737 $ 1,435 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On April 23, 2020, as part of our broad-based effort to respond to COVID-19, the Compensation Committee of the Board approved, with the agreement of the impacted executive officers, temporary salary reductions to the base salary of our Chief Executive Officer by 15% , the base salary of our President and Chief Operating Officer by 10% and the base salaries of the Company’s other Executive Officers by 7.5% , along with a temporary reduction of the quarterly retainer for our non-employee directors from $35,000 per quarter to $29,750 per quarter (or 15% ) effective April 19, 2020. With respect to the Director Compensation Policy, all other provisions of the policy remain unchanged, including the lead director and chairmanship fees. The Company will reevaluate these temporary reductions of compensation on a monthly basis On April 29, 2020, we filed a Current Report on Form 8-K giving notice that the Company intends to avail itself of an extension to file its Quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2020. The Company is relying on the Securities and Exchange Commission’s (the “SEC”) Orders under Section 36 of the Securities and Exchange Act of 1934 (the “Exchange Act”), as amended (Release Nos. 34-88318 and 34-88465), to delay the filing of its Quarterly Report. On May 18 2020, we received a waiver under our Credit Facility for the failure to comply with the Total Leverage Ratio covenant for the fiscal quarter ended March 31, 2020. In connection with the waiver, the Credit Facility was also amended to increase the interest rate margin applicable to borrowings by up to 0.625% at each pricing level based on the Total Leverage Ratio. Immediately following the effectiveness of the limited waiver and fourth amendment, $74.0 million remained available for borrowing under the Credit Facility. On May 19, 2020, the Board approved an increase of $0.05 to our annual dividend beginning with the next dividend declaration in the third quarter. On May 19, 2020 Compensation Committee of the Board approved a new Performance Award Agreement (the “New Agreement”) for certain eligible employees. Pursuant to the New Agreement, the target share awards for each of the eligible employees will vest on December 31, 2024 if the Company’s common stock reaches one of five pre-determined growth targets for a sustained period beginning on the grant date of May 19, 2020 and ending on December 31, 2024. |
Basis Of Presentation And Sum_2
Basis Of Presentation And Summary Of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Interim Condensed Disclosures, Policy | Principles of Consolidation and Interim Condensed Disclosures Our unaudited consolidated financial statements include the Company and its subsidiaries. All intercompany balances and transactions have been eliminated. Our interim consolidated financial statements are unaudited but include all adjustments, which consist of normal, recurring accruals, that are necessary for a fair presentation of our financial position and results of operations as of and for the interim periods presented. Our unaudited consolidated financial statements have been prepared in a manner consistent with the accounting principles described in our Annual Report on Form 10-K for the year ended December 31, 2019 unless otherwise disclosed herein, and should be read in conjunction therewith. |
Reclassification, Policy | Reclassifications Certain reclassifications have been made to prior period amounts on our statement of cash flows and consolidated financial position to conform to the current period financial statement presentation with no impact on our previously reported results of operations, total assets and total liabilities or operating cash flows. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Use of Estimates, Policy | Use of Estimates The preparation of our Consolidated Financial Statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, realization of accounts receivable, goodwill, intangible assets, property and equipment and deferred tax assets and liabilities. We base our estimates on historical experience, third-party data and assumptions that we believe to be reasonable under the circumstances. The results of these considerations form the basis for making judgments about the amount and timing of revenue and expenses, the carrying value of assets and the recorded amounts of liabilities. Actual results may differ from these estimates and such estimates may change if the underlying conditions or assumptions change. Historical performance should not be viewed as indicative of future performance, as there can be no assurance that our results of operations will be consistent from year to year. |
New Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued ASU, Reference Rate Reform (“Topic 848”) to provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. Generally Accepted Accounting Principles (“GAAP”) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference London InterBank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating our contracts and the optional expedients provided by the new standard. |
Funeral and Cemetery Operations, Policy | Funeral and Cemetery Operations Revenue is recognized when control of the merchandise or services is transferred to the customer. Our performance obligations include the delivery of funeral and cemetery merchandise and services and cemetery property interment rights. Control transfers when merchandise is delivered or services are performed. For cemetery property interment rights, control transfers to the customer when the property is developed and the interment right has been sold and can no longer be marketed or sold to another customer. Sales taxes collected are recognized on a net basis in our consolidated financial statements. On our atneed contracts, we generally deliver the merchandise and perform the services at the time of need. Due to limitations on gatherings imposed to mitigate the spread of COVID-19, some customers have requested that we delay the memorial service until after the limitations have been lifted. Memorial services frequently include performance obligations to direct the service, provide facilities and motor vehicles, catering, flowers, and stationary products. All other performance obligations on these contracts, including arrangement, removal, preparation, embalming, cremation, interment, and delivery of urns and caskets and related memorialization merchandise are fulfilled at the time of need. Personalized marker merchandise and marker installation services sold on atneed contracts are recognized when control is transferred to the customer, generally when the marker is delivered and installed in the cemetery. Ancillary funeral service revenue, which is recorded in Other revenue, represents revenue from our flower shop, pet cremation business and online cremation business in Texas . The earnings from our preneed trust investments, as well as trust management fees charged by our wholly-owned registered investment advisory firm (“CSV RIA”) are recorded in Other revenue . As of March 31, 2020 , CSV RIA provided investment management and advisory services to approximately 73% of our trust assets, for a fee based on the market value of trust assets. Under state trust laws, we are allowed to charge the trust a fee for advising on the investment of the trust assets and these fees are recognized as income in the period in which services are provided. Balances due on undelivered preneed funeral trust contracts have been reclassified to reduce Deferred preneed funeral revenue on our Consolidated Balance Sheet of $8.9 million and $8.7 million at December 31, 2019 and March 31, 2020 , respectively. As these performance obligations are to be completed after the date of death, we cannot quantify the recognition of revenue in future periods. However, we estimate an average maturity period of ten years for preneed funeral contracts. Balances due from customers on delivered preneed cemetery contracts are included in Accounts receivable, net and Preneed cemetery receivables, net on our Consolidated Balance Sheet. Balances due on undelivered preneed cemetery contracts have been reclassified to reduce Deferred preneed cemetery revenue on our Consolidated Balance Sheet. The transaction price allocated to preneed merchandise and service performance obligations that were unfulfilled were $4.8 million and $5.8 million at December 31, 2019 and March 31, 2020 , respectively. As these performance obligations are to be completed after the date of death, we cannot quantify the recognition of revenue in future periods. However, we estimate an average maturity period of eight years for preneed cemetery contracts. See Notes 17 to the Consolidated Financial Statements herein for additional information related to revenue. Arrangements with Multiple Performance Obligations Some of our contracts with customers include multiple performance obligations. For these contracts, we allocate the transaction price to each performance obligation based on its relative standalone selling price, which is based on prices charged to customers per our general price list. Packages for service and ancillary items are offered to help the customer make decisions during emotional and stressful times. Package discounts are reflected net in Revenue . We recognize revenue when the merchandise is transferred or the service is performed, in satisfaction of the corresponding performance obligation. Sales taxes collected are recognized on a net basis in our Consolidated Financial Statements. Preneed Funeral and Cemetery Trust Funds Our preneed and perpetual care trust funds are reported in accordance with the principles of consolidating Variable Interest Entities (“VIE’s”). In the case of preneed trusts, the customers are the legal beneficiaries. In the case of perpetual care trusts, we do not have a right to access the corpus in the perpetual care trusts. We have recognized financial interests of third parties in the trust funds in our financial statements as Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus . The investments of such trust funds are classified as available-for-sale and are reported at fair market value; therefore, the unrealized gains and losses, as well as accumulated and undistributed income and realized gains and losses are recorded to Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus on our Consolidated Balance Sheet. Our future obligations to deliver merchandise and services are reported at estimated settlement amounts. Preneed funeral and cemetery trust investments are reduced by the trust investment earnings that we have been allowed to withdraw in certain states prior to maturity. These earnings, along with preneed contract collections not required to be placed in trust, are recorded in Deferred preneed funeral revenue and Deferred preneed cemetery revenue until the service is performed or the merchandise is delivered. In accordance with respective state laws, we are required to deposit a specified amount into perpetual and memorial care trust funds for each interment right and certain memorials sold. Income from the trust funds is distributed to us and used to provide for the care and maintenance of the cemeteries and mausoleums. Such trust fund income is recognized as revenue when realized by the trust and distributable to us. We are restricted from withdrawing any of the principal balances of these funds. An enterprise is required to perform an analysis to determine whether the enterprise’s variable interest(s) give it a controlling financial interest in a VIE. This analysis identifies the primary beneficiary of a VIE as the enterprise that has both the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. Our analysis continues to support our position as the primary beneficiary in the majority of our funeral and cemetery trust funds. See Notes 6 and 7 to the Consolidated Financial Statements herein for additional information related to our preneed funeral and cemetery trust funds. |
Property, Plant and Equipment, Policy | Property, Plant and Equipment Property, plant and equipment (including equipment under finance leases) are stated at cost. The costs of ordinary maintenance and repairs are charged to operations as incurred, while renewals and major replacements that extend the useful economic life of the asset are capitalized. Depreciation of property, plant and equipment (including equipment under finance leases) is computed based on the straight-line method over the estimated useful lives of the assets. |
Goodwill and Intangible Assets, Goodwill, Policy | Goodwill The excess of the purchase price over the fair value of identifiable net assets of funeral home businesses and cemeteries acquired is recorded as goodwill. Goodwill has an indefinite life and is not subject to amortization. As such, we test goodwill for impairment on an annual basis as of August 31 st each year. In addition to our annual test, we assess the impairment of goodwill whenever events or changes in circumstances indicate that the carrying value of a reporting unit may be greater than fair value. Factors that could trigger an interim impairment review include, but are not limited to, significant negative industry or economic trends and significant adverse changes in the business climate, which may be indicated by a decline in our market capitalization or decline in operating results. As a result of economic conditions caused by the response to COVID-19, we performed a quantitative assessment of our goodwill at March 31, 2020 . Based on the quantitative assessment conducted at March 31, 2020 , we recorded an impairment for goodwill of $13.6 million during the quarter ended March 31, 2020 , as the carrying amount of our funeral homes in the Eastern Reporting Unit exceeded the fair value. The discounted cash flow valuation uses projections of future cash flows and includes assumptions concerning future operating performance and economic conditions that may differ from actual future cash flows. See Note 4 to the Consolidated Financial Statements included herein for additional information related to our goodwill. Intangible Assets Our intangible assets include tradenames resulting from acquisitions and are included in Intangible and other non-current assets, net on our Consolidated Balance Sheet. Our tradenames are considered to have an indefinite life and are not subject to amortization. As such, we test our intangible assets for impairment on an annual basis as of August 31 st each year. In addition to our annual test, we assess the impairment of intangible assets whenever certain events or changes in circumstances indicate that the carrying value of the intangible asset may be greater than the fair value. Factors that could trigger an interim impairment review include, but are not limited to, significant under-performance relative to historical or projected future operating results and significant negative industry or economic trends. As a result of economic conditions caused by the response to COVID-19, we performed a quantitative assessment of our tradenames at March 31, 2020 . Based on the quantitative assessment conducted at March 31, 2020 , we recorded an impairment for certain of our tradenames of $1.1 million during the quarter ended March 31, 2020 as the carrying amount of these tradenames exceeded the fair value. In determining the fair value of the tradenames, we used the relief from royalty method whereby we determine the fair value of the assets by discounting the cash flows that represent a savings over having to pay a royalty fee for use of the tradenames. The discounted cash flow valuation uses projections of future cash flows and includes assumptions concerning future operating performance and economic conditions that may differ from actual future cash flows and the determination and application of an appropriate royalty rate and discount rate. See Note 9 to the Consolidated Financial Statements included herein for additional information related to our intangible assets. |
Subsequent Events, Policy | Subsequent Events We have evaluated events and transactions during the period subsequent to March 31, 2020 through the date the financial statements were issued for potential recognition or disclosure in the accompanying financial statements covered by this report. See Note 19 to the Consolidated Financial Statements included herein for additional information related to our subsequent events. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment is comprised of the following at December 31, 2019 and March 31, 2020 (in thousands): December 31, 2019 March 31, 2020 Land $ 84,608 $ 85,014 Buildings and improvements 242,641 243,582 Furniture, equipment and automobiles 88,046 89,638 Property, plant and equipment, at cost 415,295 418,234 Less: accumulated depreciation (136,095 ) (139,239 ) Property, plant and equipment, net $ 279,200 $ 278,995 |
Acquisitions Acquisitions (Tabl
Acquisitions Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the breakdown of the purchase price allocation for the businesses described above (in thousands): Purchase Price Allocation Current assets $ 2,662 Preneed trust assets 9,089 Property, plant & equipment 1,720 Cemetery property 14,753 Goodwill 12,916 Intangible and other non-current assets 2,506 Assumed liabilities (489 ) Deferred tax liability (527 ) Preneed trust liabilities (9,089 ) Deferred revenue (541 ) Purchase price $ 33,000 The following table summarizes the breakdown of the purchase price allocation for these businesses and the subsequent adjustments made based on additional information which became available prior to March 31, 2020 (in thousands): Initial Purchase Price Allocation Adjustments Adjusted Purchase Price Allocation Current assets $ 1,482 $ 33 $ 1,515 Preneed trust assets 15,891 — 15,891 Property, plant & equipment 21,680 — 21,680 Cemetery property 11,994 — 11,994 Goodwill 99,344 (880 ) 98,464 Intangible and other non-current assets 8,269 — 8,269 Assumed liabilities (657 ) (145 ) (802 ) Preneed trust liabilities (15,463 ) — (15,463 ) Deferred revenue (1,633 ) 992 (641 ) Purchase price $ 140,907 $ — $ 140,907 As of March 31, 2020 , our accounting for our 2019 acquisitions was not complete. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenue, disaggregated by major source for each of our reportable segments was as follows (in thousands): Three Months Ended March 31, 2020 Funeral Cemetery Total Services $ 37,559 $ 3,173 $ 40,732 Merchandise 20,700 2,286 22,986 Cemetery property — 8,285 8,285 Other revenue 3,483 2,004 5,487 Total $ 61,742 $ 15,748 $ 77,490 Three Months Ended March 31, 2019 Funeral Cemetery Total Services $ 33,977 $ 2,675 $ 36,652 Merchandise 19,965 1,778 21,743 Cemetery property — 6,836 6,836 Other revenue 2,221 1,629 3,850 Total $ 56,163 $ 12,918 $ 69,081 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents changes in goodwill in the accompanying Consolidated Balance Sheet for the year ended December 31, 2019 and the three months ended March 31, 2020 (in thousands): December 31, 2019 March 31, 2020 Goodwill at the beginning of the period $ 303,887 $ 398,292 Net increase in goodwill related to acquisitions 99,344 12,036 Decrease in goodwill related to divestitures (4,939 ) — Decrease in goodwill related to impairments — (13,632 ) Goodwill at the end of the period $ 398,292 $ 396,696 |
Trust Investments (Tables)
Trust Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Preneed Trust Investments [Abstract] | |
Components of preneed cemetery trust investments | The components of Preneed cemetery trust investments on our Consolidated Balance Sheet at December 31, 2019 and March 31, 2020 are as follows (in thousands): December 31, 2019 March 31, 2020 Preneed cemetery trust investments, at market value $ 74,572 $ 63,130 Less: allowance for contract cancellation (2,190 ) (2,354 ) Preneed cemetery trust investments, net $ 72,382 $ 60,776 |
Cost and fair market values associated with preneed cemetery trust investments | The cost and market values associated with preneed cemetery trust investments at March 31, 2020 are detailed below (in thousands): Fair Value Hierarchy Level Cost Unrealized Gains Unrealized Losses Fair Market Value Cash and money market accounts 1 $ 3,516 $ — $ — $ 3,516 Fixed income securities: Foreign debt 2 8,294 180 (1,687 ) 6,787 Corporate debt 2 15,474 301 (2,979 ) 12,796 Preferred stock 2 13,691 35 (2,289 ) 11,437 Mortgage-backed securities 2 451 — (251 ) 200 Common stock 1 34,456 1,646 (11,022 ) 25,080 Mutual funds: Fixed Income 2 2,583 161 (400 ) 2,344 Trust securities $ 78,465 $ 2,323 $ (18,628 ) $ 62,160 Accrued investment income $ 970 $ 970 Preneed cemetery trust investments $ 63,130 Market value as a percentage of cost 79.2 % The cost and market values associated with preneed cemetery trust investments at December 31, 2019 are detailed below (in thousands): Fair Value Hierarchy Level Cost Unrealized Gains Unrealized Losses Fair Market Value Cash and money market accounts 1 $ 5,729 $ — $ — $ 5,729 Fixed income securities: Foreign debt 2 5,609 312 (243 ) 5,678 Corporate debt 2 16,916 1,044 (649 ) 17,311 Preferred stock 2 14,206 904 (164 ) 14,946 Mortgage-backed securities 2 517 — (114 ) 403 Common stock 1 28,569 2,766 (3,017 ) 28,318 Mutual funds: Fixed income 2 1,463 72 (85 ) 1,450 Trust Securities $ 73,009 $ 5,098 $ (4,272 ) $ 73,835 Accrued investment income $ 737 737 Preneed cemetery trust investments $ 74,572 Market value as a percentage of cost 101.1 % |
Estimated maturities of fixed preneed cemetery trust income securities | The estimated maturities of the fixed income securities included above are as follows (in thousands): Due in one year or less $ — Due in one to five years 4,178 Due in five to ten years 8,025 Thereafter 19,017 Total fixed income securities $ 31,220 |
Schedule of fair market value and unrealized loss on cemetery merchandise and service trust investments | The following table summarized our fixed income securities within our preneed cemetery trust investment in an unrealized loss position at March 31, 2020 , aggregated by major security type and length of time in a continuous unrealized loss position (in thousands): March 31, 2020 In Loss Position Less than 12 months In Loss Position Greater than 12 months Total Fair market value Unrealized Losses Fair market value Unrealized Losses Fair market value Unrealized Losses Fixed income securities: Foreign debt $ 4,655 $ (1,153 ) $ 168 $ (534 ) $ 4,823 $ (1,687 ) Corporate debt 5,810 (1,412 ) 3,253 (1,567 ) 9,063 (2,979 ) Preferred stock 10,813 (2,289 ) — — 10,813 (2,289 ) Mortgage-backed securities 80 (115 ) 120 (136 ) 200 (251 ) Total fixed income securities with an unrealized loss $ 21,358 $ (4,969 ) $ 3,541 $ (2,237 ) $ 24,899 $ (7,206 ) December 31, 2019 In Loss Position Less than 12 months In Loss Position Greater than 12 months Total Fair market value Unrealized Losses Fair market value Unrealized Losses Fair market value Unrealized Losses Fixed income securities: Foreign debt $ 268 $ (42 ) $ 758 $ (201 ) $ 1,026 $ (243 ) Corporate debt 1,368 (168 ) 4,520 (481 ) 5,888 (649 ) Preferred stock 4,135 (164 ) — — 4,135 (164 ) Mortgage-backed securities — — 402 (114 ) 402 (114 ) Total fixed income securities with an unrealized loss $ 5,771 $ (374 ) $ 5,680 $ (796 ) $ 11,451 $ (1,170 ) |
Preneed cemetery trust investment security transactions | Preneed cemetery trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three Months Ended March 31, 2019 2020 Investment income $ 571 $ 319 Realized gains 1,458 1,916 Realized losses (635 ) (1,372 ) Expenses and taxes (278 ) (187 ) Net change in deferred preneed cemetery receipts held in trust (1,116 ) (676 ) $ — $ — |
Purchases and sales of investments in preneed cemetary trusts | Purchases and sales of investments in the preneed cemetery trusts for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three Months Ended March 31, 2019 2020 Purchases $ (11,626 ) $ (18,857 ) Sales 2,992 13,231 |
Components of preneed funeral trust investments | The components of Preneed funeral trust investments on our Consolidated Balance Sheet at December 31, 2019 and March 31, 2020 are as follows (in thousands): December 31, 2019 March 31, 2020 Preneed funeral trust investments, at market value $ 99,246 $ 84,337 Less: allowance for expected credit losses and cancellations (2,911 ) (2,960 ) Preneed funeral trust investments $ 96,335 $ 81,377 |
Estimated maturities of fixed preneed funeral trust income securities | The estimated maturities of the fixed income securities included above are as follows (in thousands): Due in one year or less $ — Due in one to five years 5,044 Due in five to ten years 7,093 Thereafter 18,473 Total fixed income securities $ 30,610 |
Cost and fair market values associated with preneed funeral trust investments | The cost and market values associated with preneed funeral trust investments at March 31, 2020 are detailed below (in thousands): Fair Value Hierarchy Level Cost Unrealized Gains Unrealized Losses Fair Market Value Cash and money market accounts 1 $ 22,033 $ — $ — $ 22,033 Fixed income securities: U.S treasury debt 1 820 17 — 837 Foreign debt 2 8,185 180 (1,631 ) 6,734 Corporate debt 2 14,374 290 (2,826 ) 11,838 Preferred stock 2 13,127 21 (2,198 ) 10,950 Mortgage-backed securities 2 503 — (252 ) 251 Common stock 1 32,946 1,648 (10,383 ) 24,211 Mutual funds: Fixed income 2 2,519 162 (302 ) 2,379 Other investments 2 4,163 — — 4,163 Trust securities $ 98,670 $ 2,318 $ (17,592 ) $ 83,396 Accrued investment income $ 941 $ 941 Preneed funeral trust investments $ 84,337 Market value as a percentage of cost 84.5 % The cost and market values associated with preneed funeral trust investments at December 31, 2019 are detailed below (in thousands): Fair Value Hierarchy Level Cost Unrealized Gains Unrealized Losses Fair Market Value Cash and money market accounts 1 $ 24,160 $ — $ — $ 24,160 Fixed income securities: U.S. treasury debt 1 822 — — 822 Foreign debt 2 5,587 309 (232 ) 5,664 Corporate debt 2 16,109 992 (646 ) 16,455 Preferred stock 2 14,094 874 (198 ) 14,770 Mortgage-backed securities 2 585 — (117 ) 468 Common stock 1 27,652 2,773 (2,869 ) 27,556 Mutual funds: Equity 1 772 617 (4 ) 1,385 Fixed income 2 4,364 107 (107 ) 4,364 Other investments 2 2,902 — — 2,902 Trust securities $ 97,047 $ 5,672 $ (4,173 ) $ 98,546 Accrued investment income $ 700 $ 700 Preneed funeral trust investments $ 99,246 Market value as a percentage of cost 101.5 % |
Schedule of fair market value and unrealized loss on preneed funeral trust investments | The following table summarized our fixed income securities within our preneed funeral trust investment in an unrealized loss position at March 31, 2020 , aggregated by major security type and length of time in a continuous unrealized loss position (in thousands): March 31, 2020 In Loss Position Less than 12 months In Loss Position Greater than 12 months Total Fair market value Unrealized Losses Fair market value Unrealized Losses Fair market value Unrealized Losses Fixed income securities: Foreign debt $ 4,605 $ (1,152 ) $ 152 $ (479 ) $ 4,757 $ (1,631 ) Corporate debt 5,248 (1,357 ) 3,127 (1,469 ) 8,375 (2,826 ) Preferred stock 10,594 (2,198 ) — — 10,594 (2,198 ) Mortgage-backed securities 84 (115 ) 135 (137 ) 219 (252 ) Total fixed income securities with an unrealized loss 20,531 (4,822 ) 3,414 (2,085 ) 23,945 (6,907 ) December 31, 2019 In Loss Position Less than 12 months In Loss Position Greater than 12 months Total Fair market value Unrealized Losses Fair market value Unrealized Losses Fair market value Unrealized Losses Fixed income securities: Foreign debt $ 274 $ (43 ) $ 723 $ (189 ) $ 997 $ (232 ) Corporate debt 1,403 (172 ) 4,433 (474 ) 5,836 (646 ) Preferred stock 4,412 (198 ) — — 4,412 (198 ) Mortgage-backed securities — — 439 (117 ) 439 (117 ) Total fixed income securities with an unrealized loss 6,089 (413 ) 5,595 (780 ) 11,684 (1,193 ) |
Preneed funeral trust investment security transactions | Preneed funeral trust investment security transactions recorded in Other, net on the Consolidated Statements of Operations for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three Months Ended March 31, 2019 2020 Investment income $ 573 $ 258 Realized gains 1,320 2,551 Realized losses (583 ) (1,129 ) Expenses and taxes (228 ) (97 ) Net change in deferred preneed funeral receipts held in trust (1,082 ) (1,583 ) $ — $ — |
Purchases and sales of investments in preneed funeral trusts | Purchases and sales of investments in the preneed funeral trusts for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three Months Ended March 31, 2019 2020 Purchases $ (10,759 ) $ (18,538 ) Sales 2,785 15,968 Purchases and sales of investments in the perpetual care trusts for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three Months Ended March 31, 2019 2020 Purchases $ (9,157 ) $ (14,612 ) Sales 1,702 12,694 |
Components of care trusts' corpus | Care trusts’ corpus on our Consolidated Balance Sheet represent the corpus of those trusts plus undistributed income. The components of Care trusts’ corpus as of December 31, 2019 and March 31, 2020 are as follows (in thousands): December 31, 2019 March 31, 2020 Cemetery perpetual care trust investments, at market value $ 64,047 $ 52,677 Obligations due to (from) trust (631 ) 97 Care trusts’ corpus $ 63,416 $ 52,774 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | The following table summarized our fixed income securities within our perpetual care trust investment in an unrealized loss position at March 31, 2020 , aggregated by major security type and length of time in a continuous unrealized loss position (in thousands): March 31, 2020 In Loss Position Less than 12 months In Loss Position Greater than 12 months Total Fair market value Unrealized Losses Fair market value Unrealized Losses Fair market value Unrealized Losses Fixed income securities: Foreign debt $ 4,069 $ (976 ) $ 151 $ (472 ) $ 4,220 $ (1,448 ) Corporate debt 4,077 (1,042 ) 2,803 (1,303 ) 6,880 (2,345 ) Preferred stock 9,173 (2,138 ) — — 9,173 (2,138 ) Mortgage-backed securities 61 (88 ) 93 (105 ) 154 (193 ) Total fixed income securities with an unrealized loss $ 17,380 $ (4,244 ) $ 3,047 $ (1,880 ) $ 20,427 $ (6,124 ) December 31, 2019 In Loss Position Less than 12 months In Loss Position Greater than 12 months Total Fair market value Unrealized Losses Fair market value Unrealized Losses Fair market value Unrealized Losses Fixed income securities: Foreign debt $ 168 $ (26 ) $ 549 $ (149 ) $ 717 $ (175 ) Corporate debt 1,057 (196 ) 3,253 (338 ) 4,310 (534 ) Preferred stock 2,989 (106 ) — — 2,989 (106 ) Mortgage-backed securities — — 252 (71 ) 252 (71 ) Total fixed income securities with an unrealized loss $ 4,214 $ (328 ) $ 4,054 $ (558 ) $ 8,268 $ (886 ) |
Preneed Funeral Trust Investment Security Transactions [Table Text Block] | Perpetual care trust investment security transactions recorded in Other, net on our Consolidated Statements of Operations for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three Months Ended March 31, 2019 2020 Realized gains $ 354 $ 709 Realized losses (171 ) (679 ) Net change in Care trusts’ corpus (183 ) (30 ) Total $ — $ — Perpetual care trust investment security transactions recorded in Other revenue for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three Months Ended March 31, 2019 2020 Investment income $ 1,087 $ 1,405 Realized losses, net (290 ) (36 ) Total $ 797 $ 1,369 |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Preneed Cemetery Receivables [Abstract] | |
Preneed Cemetery Receivables | The following table summarizes the activity in our allowance for credit losses for Preneed cemetery receivables, net for three months ended March 31, 2020 (in thousands): January 1, 2020 Provision for Credit Losses Allowance Recorded at Acquisition Write Offs March 31, 2020 Total allowance for credit losses on Preneed cemetery receivables, net $ (1,290 ) $ (228 ) $ (318 ) $ 132 $ (1,704 ) |
Aging of Past Due Financing Receivables | The aging of past due preneed cemetery receivables as of March 31, 2020 is as follows (in thousands): 31-60 Past Due 61-90 Past Due 91-120 Past Due >120 Past Due Total Past Due Current Total Recognized revenue $ 807 $ 458 $ 242 $ 2,168 $ 3,675 $ 28,892 $ 32,567 Deferred revenue 243 165 92 237 737 10,100 10,837 Total contracts $ 1,050 $ 623 $ 334 $ 2,405 $ 4,412 $ 38,992 $ 43,404 |
Receivables from Preneed Trus_2
Receivables from Preneed Trusts (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables From Preneed Trusts [Abstract] | |
Receivables from Preneed Trusts | As of December 31, 2019 and March 31, 2020 , receivables from preneed trusts are as follows (in thousands): December 31, 2019 March 31, 2020 Preneed trust funds, at cost $ 18,581 $ 18,650 Less: allowance for contract cancellation (557 ) (561 ) Receivables from preneed trusts, net $ 18,024 $ 18,089 |
Composition of Assets Held in Trust | The following summary reflects the composition of the assets held in trust and controlled by third parties to satisfy our future obligations under preneed arrangements related to the preceding contracts at March 31, 2020 and December 31, 2019 . The cost basis includes reinvested interest and dividends that have been earned on the trust assets. Fair value includes unrealized gains and losses on trust assets. The composition of the preneed trust funds at March 31, 2020 is as follows (in thousands): Historical Cost Basis Fair Value Cash and cash equivalents $ 4,580 $ 4,580 Fixed income investments 11,685 11,685 Mutual funds and common stocks 2,380 2,392 Annuities 5 5 Total $ 18,650 $ 18,662 The composition of the preneed trust funds at December 31, 2019 is as follows (in thousands): Historical Cost Basis Fair Value Cash and cash equivalents $ 4,533 $ 4,533 Fixed income investments 11,603 11,603 Mutual funds and common stocks 2,440 2,518 Annuities 5 5 Total $ 18,581 $ 18,659 |
Intangible and Other Non-Curr_2
Intangible and Other Non-Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure | Intangible and other non-current assets at December 31, 2019 and March 31, 2020 are as follows (in thousands): December 31, 2019 March 31, 2020 Prepaid agreements not-to-compete, net of accumulated amortization of $7,195 and $7,382, respectively $ 3,915 $ 3,792 Tradenames 25,233 26,649 Capitalized commissions on preneed contracts, net of accumulated amortization of $1,127 and $1,268, respectively 2,818 2,903 Other 150 113 Intangible and other non-current assets, net $ 32,116 $ 33,457 |
CREDIT FACILITY AND ACQUISITI_2
CREDIT FACILITY AND ACQUISITION DEBT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Our Credit Facility and Acquisition debt consisted of the following at December 31, 2019 and March 31, 2020 (in thousands): December 31, 2019 March 31, 2020 Credit Facility $ 83,800 $ 114,000 Debt issuance costs, net of accumulated amortization of $337 and $464, respectively (1,618 ) (1,491 ) Total Credit Facility $ 82,182 $ 112,509 Acquisition debt $ 6,964 $ 6,547 Less: current portion (1,306 ) — (1,085 ) Total acquisition debt, net of current portion $ 5,658 $ 5,462 |
Convertible Subordinated Notes
Convertible Subordinated Notes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Convertible Subordinated Notes [Abstract] | |
Schedule of Liability and Equity Components of Convertible Subordinated Notes | The carrying values of the liability and equity components of our 2.75% convertible subordinated notes due 2021 (the “Convertible Notes”) at December 31, 2019 and March 31, 2020 are reflected on our Consolidated Balance Sheet as follows (in thousands): December 31, 2019 March 31, 2020 Current liabilities: Principal amount $ 6,319 $ 6,319 Unamortized discount of liability component (319 ) (254 ) Convertible Notes issuance costs, net of accumulated amortization of $130 and $136, respectively (29 ) (23 ) Carrying value of the liability component $ 5,971 $ 6,042 Carrying value of the equity component $ 789 $ 789 |
(Tables)
(Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease cost for the three months ended March 31, 2019 and 2020 are as follows (in thousands): Three months ended March 31, Income Statement Classification 2019 2020 Operating lease cost Facilities and grounds expense (1) $ 924 $ 957 Short-term lease cost Facilities and grounds expense (1) 75 57 Finance lease cost: Depreciation of leased assets Depreciation and amortization (2) $ 132 $ 109 Interest on lease liabilities Interest expense 132 126 Total finance lease cost 264 235 Total lease cost $ 1,263 $ 1,249 (1) Facilities and grounds expense is included within Cost of service and General, administrative and other on our Consolidated Statements of Operations. (2) Depreciation and amortization expense is included within Field depreciation and Home office depreciation and amortization on our Consolidated Statements of Operations. Variable lease expense was immaterial for the three months ended March 31, 2019 and 2020 . Supplemental cash flow information related to our leases for the three months ended March 31, 2019 and 2020 is as follows (in thousands): Three months ended March 31, 2019 2020 Cash paid for operating leases included in operating activities 979 696 Cash paid for finance leases included in financing activities 228 200 Right-of-use assets obtained in exchange for new leases for the three months ended March 31, 2019 and 2020 is as follows (in thousands): Three months ended March 31, 2019 2020 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ 77 Right-of-use assets obtained in exchange for new finance lease liabilities — — Supplemental balance sheet information related to finance lease right-of-use assets recorded in Property, plant and equipment, net as of December 31, 2019 and March 31, 2020 is as follows (in thousands): Lease Type December 31, 2019 March 31, 2020 Finance lease right-of-use assets $ 6,770 $ 6,770 Accumulated depreciation (1,566 ) (1,675 ) Finance lease right-of-use assets, net $ 5,204 $ 5,095 The average lease terms and discount rates as of March 31, 2020 are as follows: Weighted-average remaining lease term (years) Weighted-average discount rate Operating leases 10.7 8.1 % Finance leases 6.7 8.2 % |
Maturities of Operating Lease Liabilities | The aggregate future lease payments for operating and finance leases as of March 31, 2020 are as follows (in thousands): Operating Finance Lease payments due: Remainder of 2020 $ 2,688 $ 628 2021 3,725 836 2022 3,365 860 2023 3,267 860 2024 3,262 791 Thereafter 17,799 6,291 Total lease payments 34,106 10,266 Less: Interest (11,164 ) (4,192 ) Present value of lease liabilities $ 22,942 $ 6,074 |
Maturities of Financing Lease Liabilities | The aggregate future lease payments for operating and finance leases as of March 31, 2020 are as follows (in thousands): Operating Finance Lease payments due: Remainder of 2020 $ 2,688 $ 628 2021 3,725 836 2022 3,365 860 2023 3,267 860 2024 3,262 791 Thereafter 17,799 6,291 Total lease payments 34,106 10,266 Less: Interest (11,164 ) (4,192 ) Present value of lease liabilities $ 22,942 $ 6,074 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Dividends Declared | the three months ended March 31, 2019 and 2020 , our Board declared the following dividends payable on the dates below (in thousands, except per share amounts): 2019 Per Share Dollar Value March 1 st $ 0.075 $ 1,360 2020 Per Share Dollar Value March 1 st $ 0.075 $ 1,339 |
Schedule of Accumulated Other Comprehensive Income | Our components of accumulated other comprehensive income are as follows (in thousands): Accumulated Other Comprehensive Income Balance at December 31, 2019 $ — Net unrealized losses associated with available-for-sale securities of the trusts (45,104 ) Reclassification of net unrealized losses activity attributable to the Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus 45,104 Balance at March 31, 2020 $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of the basic and diluted earnings (loss) per share for the three months ended March 31, 2019 and 2020 (in thousands, except per share data): Three Months Ended March 31, 2019 2020 Numerator for basic and diluted earnings per share: Net income (loss) $ 6,525 $ (4,197 ) Less: Loss (earnings) allocated to unvested restricted stock (33 ) 13 Income (loss) attributable to common stockholders $ 6,492 $ (4,184 ) Denominator: Denominator for basic earnings per common share - weighted average shares outstanding 18,057 17,805 Effect of dilutive securities: Stock options 40 — Denominator for diluted earnings per common share - weighted average shares outstanding 18,097 17,805 Basic earnings (loss) per common share: $ 0.36 $ (0.23 ) Diluted earnings (loss) per common share: $ 0.36 $ (0.23 ) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Disaggregation of Revenue | Revenue, disaggregated by major source for each of our reportable segments was as follows (in thousands): Three Months Ended March 31, 2020 Funeral Cemetery Total Services $ 37,559 $ 3,173 $ 40,732 Merchandise 20,700 2,286 22,986 Cemetery property — 8,285 8,285 Other revenue 3,483 2,004 5,487 Total $ 61,742 $ 15,748 $ 77,490 Three Months Ended March 31, 2019 Funeral Cemetery Total Services $ 33,977 $ 2,675 $ 36,652 Merchandise 19,965 1,778 21,743 Cemetery property — 6,836 6,836 Other revenue 2,221 1,629 3,850 Total $ 56,163 $ 12,918 $ 69,081 |
Revenue, pre-tax income and total and total assets by segments | The following table presents Operating income (loss), Income (loss) before income taxes and Total assets by segment (in thousands): Funeral Cemetery Corporate Consolidated Operating income (loss): Three Months Ended March 31, 2020 $ 4,311 $ 4,167 $ (6,328 ) $ 2,150 Three Months Ended March 31, 2019 18,076 3,524 (6,001 ) 15,599 Income (loss) before income taxes: Three Months Ended March 31, 2020 $ 4,119 $ 4,105 $ (14,571 ) $ (6,347 ) Three Months Ended March 31, 2019 17,862 3,585 (12,246 ) 9,201 Total assets: March 31, 2020 $ 762,815 $ 318,960 $ 38,782 $ 1,120,557 December 31, 2019 790,459 314,413 24,883 1,129,755 |
Supplementary Data (Tables)
Supplementary Data (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplementary Balance Sheet Disclosures | he detail of certain balance sheet accounts as of December 31, 2019 and March 31, 2020 (in thousands): December 31, 2019 March 31, 2020 Prepaid and other current assets: Prepaid expenses $ 1,596 $ 1,660 Deposit on pending acquisition 5,000 — Federal income taxes receivable 2,973 11,814 State income taxes receivable 986 853 Other current assets 112 120 Total prepaid and other current assets $ 10,667 $ 14,447 Current portion of debt and lease obligations: Current portion of acquisition debt $ 1,306 $ 1,085 Current portion of finance lease obligations 290 298 Current portion of operating lease obligations 1,554 1,836 Total current portion of debt and lease obligations $ 3,150 $ 3,219 Accrued and other liabilities: Accrued salaries and wages $ 4,323 $ 2,803 Accrued incentive compensation 9,199 1,009 Accrued vacation 2,880 2,994 Accrued insurance 2,329 2,532 Accrued interest 2,299 8,979 Accrued ad valorem and franchise taxes 678 1,063 Accrued commissions 560 565 Perpetual care trust payable 401 146 Other accrued liabilities 1,357 837 Unrecognized tax benefit — 2,860 Total accrued and other liabilities $ 24,026 $ 23,788 Other long-term liabilities: Incentive compensation $ 1,267 $ 1,435 Contingent consideration 470 — Total other long-term liabilities $ 1,737 $ 1,435 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Operations) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($)funeral_homescemeteriesstatessegment | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | |
Organization Description and Operations [Line Items] | ||||
Depreciation expense | $ 3,600 | $ 3,500 | ||
Number of business segments | segment | 2 | |||
Amortization Of Cemetery Property | $ 900 | 800 | ||
Trade and financed receivables | $ 20,594 | $ 20,554 | ||
The percentage of trust assets in custody of institution receiving trust management services | 73.00% | |||
Accounts receivable, net of allowance for bad debts | $ 20,845 | 21,478 | ||
Preneed receivables | 20,402 | 20,173 | ||
Bad debt expense | 690 | 366 | ||
Income Tax Expense (Benefit), Net Of Uncertain Tax Positions | $ 2,150 | $ (2,676) | ||
Income taxes before discrete items | 33.60% | 28.00% | ||
Goodwill, Impairment Loss | $ 13,632 | $ 0 | ||
Unearned finance charges associated with receivables | 4,404 | 4,522 | ||
Amortization of capitalized commissions on preneed contracts | 141 | $ 138 | ||
Accumulated Amortization, Property, Plant, and Equipment | $ (42,500) | $ (41,700) | ||
Funeral And Cemetery [Member] | ||||
Organization Description and Operations [Line Items] | ||||
Bad debt expense | $ 200 | |||
Funeral homes [Member] | ||||
Organization Description and Operations [Line Items] | ||||
Number of owned and operated funeral homes (in Funeral Homes) | funeral_homes | 186 | |||
Number of states in which Company operates | states | 29 | |||
Revenue, Percentage | 80.00% | |||
Cemeteries [Member] | ||||
Organization Description and Operations [Line Items] | ||||
Number of states in which Company operates | states | 11 | |||
Number of owned and operated cemeteries (in Cemetaries) | cemeteries | 32 | |||
Revenue, Percentage | 20.00% | |||
Separate Income Tax Return [Member] | ||||
Organization Description and Operations [Line Items] | ||||
Number Of States In Which Entity Files Separate State Income Tax Returns | states | 15 | |||
Combined Or Unitary Income Tax Return [Member] | ||||
Organization Description and Operations [Line Items] | ||||
Number Of States In Which Entity Files Unitary Tax Returns | states | 14 | |||
Minimum [Member] | ||||
Organization Description and Operations [Line Items] | ||||
Service Contract, Term | 8 years | |||
Lease Term | 1 year | |||
Minimum [Member] | Funeral homes [Member] | ||||
Organization Description and Operations [Line Items] | ||||
Lease Term | 10 years | |||
Maximum [Member] | ||||
Organization Description and Operations [Line Items] | ||||
Service Contract, Term | 10 years | |||
Lease Term | 19 years | |||
Lease Term, Options To Extend | 26 years | |||
Maximum [Member] | Funeral homes [Member] | ||||
Organization Description and Operations [Line Items] | ||||
Lease Term | 40 years | |||
Trade Names [Member] | ||||
Organization Description and Operations [Line Items] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 1,100 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (PPE) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 418,234 | $ 415,295 | |
Unearned finance charges associated with receivables | 4,404 | 4,522 | |
Provision for bad debt and credit losses | 690 | $ 366 | |
Property, plant and equipment, gross | 101,800 | 87,000 | |
Accumulated Amortization, Property, Plant, and Equipment | 42,500 | 41,700 | |
Amortization Of Cemetery Property | 900 | 800 | |
Less: accumulated depreciation | (139,239) | (136,095) | |
Property, plant and equipment, net | 278,995 | 279,200 | |
Depreciation expense | $ 3,600 | $ 3,500 | |
Income taxes before discrete items | 33.60% | 28.00% | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 85,014 | 84,608 | |
Buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 243,582 | 242,641 | |
Furniture, equipment and automobiles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 89,638 | 88,046 | |
Funeral | |||
Property, Plant and Equipment [Line Items] | |||
Accounts Receivable, Allowance for Credit Loss, Current | 206 | 189 | |
Funeral And Cemetery [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Provision for bad debt and credit losses | $ 200 | ||
Cemetery | |||
Property, Plant and Equipment [Line Items] | |||
Accounts Receivable, Allowance for Credit Loss, Current | $ 596 | $ 580 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies Preneed Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Preneed cemetery receivables | $ 43,404 | $ 41,316 |
Less: balances due on undelivered cemetery preneed contracts | (5,837) | (4,823) |
Preneed cemetery receivables, net | $ 20,402 | $ 20,173 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Impairment of goodwill and intangibles - asset acquisitions | $ 700 | |
Impairment of goodwill and intangibles - asset acquisitions | 3.60% | |
Income (loss) before income taxes | $ (6,347) | $ 9,201 |
Income Tax Expense (Benefit) | $ (2,136) | $ 2,577 |
Income taxes before discrete items | 33.60% | 28.00% |
Total benefit for income taxes | $ (2,150) | $ 2,676 |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies Performance Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue from External Customer [Line Items] | |||
Tax adjustment related to discrete items | $ (14) | $ 99 | |
Term of sales contract for cemetery interment rights, maximum (in Duration) | 5 years | ||
Funeral | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |||
Revenue from External Customer [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 8,900 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 10 years | ||
Funeral | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |||
Revenue from External Customer [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 8,700 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 10 years | ||
Cemetery | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |||
Revenue from External Customer [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 4,800 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 8 years | ||
Cemetery | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |||
Revenue from External Customer [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 5,800 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 8 years |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - Lafayette, California [Member] - USD ($) $ in Thousands | Jan. 03, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Business Combinations [Abstract] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Preneed Trust Assets | $ 9,089 | $ 15,891 | $ 15,891 |
Business Acquisition [Line Items] | |||
Purchase price | $ 33,000 | ||
Payments to acquire businesses | $ 28,000 | $ 5,000 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounting Changes and Error Corrections [Abstract] | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Reserves | $ 2,900 | |
Operating lease right-of-use assets | 21,891 | $ 22,304 |
Present value of lease liabilities | $ 22,942 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total | $ 77,490 | $ 69,081 |
Services | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total | 40,732 | 36,652 |
Merchandise | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total | 22,986 | 21,743 |
Cemetery property | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total | 8,285 | 6,836 |
Other revenue | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total | 5,487 | 3,850 |
Funeral | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total | 61,742 | 56,163 |
Funeral | Services | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total | 37,559 | 33,977 |
Funeral | Merchandise | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total | 20,700 | 19,965 |
Funeral | Cemetery property | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total | 0 | 0 |
Funeral | Other revenue | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total | 3,483 | 2,221 |
Cemetery | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total | 15,748 | 12,918 |
Cemetery | Services | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total | 3,173 | 2,675 |
Cemetery | Merchandise | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total | 2,286 | 1,778 |
Cemetery | Cemetery property | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total | 8,285 | 6,836 |
Cemetery | Other revenue | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total | $ 2,004 | $ 1,629 |
Acquisitions Acquistions (Purch
Acquisitions Acquistions (Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 03, 2020 | Dec. 31, 2019 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 396,696 | $ 398,292 | $ 303,887 | |
Lafayette, California [Member] | ||||
Business Acquisition [Line Items] | ||||
Current assets | 1,515 | $ 2,662 | 1,482 | |
Property, plant & equipment | 21,680 | 1,720 | 21,680 | |
Cemetery property | 11,994 | 14,753 | 11,994 | |
Goodwill | 98,464 | 12,916 | 99,344 | |
Intangible and other non-current assets | 8,269 | 2,506 | 8,269 | |
Assumed liabilities | (802) | (489) | (657) | |
Deferred tax liability | (15,463) | (527) | (15,463) | |
Preneed trust liabilities | (641) | (9,089) | (1,633) | |
Deferred revenue | $ (140,907) | (541) | $ (140,907) | |
Purchase price | $ 33,000 |
Recently Issued Accounting St_3
Recently Issued Accounting Standards - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Prepaid expenses | $ 1,660 | $ 1,596 |
Operating lease right-of-use assets | 21,891 | 22,304 |
Assets | 1,120,557 | 1,129,755 |
Other long-term liabilities | 1,435 | 1,737 |
Current portion of operating lease obligations | 1,836 | 1,554 |
Obligations under operating leases, net of current portion | 21,106 | 21,533 |
Liabilities | $ 898,098 | $ 903,186 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers Deferred Revenue (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Receivables from Preneed Funeral Trusts | $ (18,089) | $ (18,024) |
Cemetery | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts Receivable, before Allowance for Credit Loss, Current | 1,500 | 1,400 |
Receivables from Preneed Funeral Trusts | $ 3,200 | $ 3,100 |
Acquisitions Acquisitions (Asse
Acquisitions Acquisitions (Assets Acquired) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill Recorded | $ 396,696 | $ 398,292 | $ 303,887 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers Narrative (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Number of business segments | 2 |
Minimum [Member] | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Service Contract, Term | 8 years |
Maximum [Member] | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Service Contract, Term | 10 years |
Acquisitions Purchase Accountin
Acquisitions Purchase Accounting (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Jan. 03, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 396,696 | $ 398,292 | $ 303,887 | |
Lafayette, California [Member] | ||||
Business Acquisition [Line Items] | ||||
Current assets | 1,515 | $ 2,662 | 1,482 | |
Deferred revenue | 140,907 | 541 | 140,907 | |
Preneed trust liabilities | (641) | (9,089) | (1,633) | |
Deferred tax liability | (15,463) | (527) | (15,463) | |
Assumed liabilities | (802) | (489) | (657) | |
Intangible and other non-current assets | 8,269 | 2,506 | 8,269 | |
Goodwill | 98,464 | 12,916 | 99,344 | |
Cemetery property | 11,994 | 14,753 | 11,994 | |
Property, plant & equipment | 21,680 | 1,720 | 21,680 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Preneed Trust Assets | 15,891 | $ 9,089 | $ 15,891 | |
Deferred Revenue, Purchase Accounting Adjustments | 992 | |||
Assumed Liabilities, Purchase Accounting Adjustments | (145) | |||
Current Assets, Purchase Accounting Adjustments | 33 | |||
Goodwill, Purchase Accounting Adjustments | $ (880) |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill at the beginning of year | $ 398,292 | $ 303,887 |
Increase in goodwill related to acquisitions | 12,036 | 99,344 |
Decrease in goodwill related to divestitures | 0 | (4,939) |
Decrease in goodwill related to impairments | (13,632) | $ 0 |
Goodwill at the end of the period | $ 396,696 |
Trust Investments (Components o
Trust Investments (Components of preneed cemetery trust investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Preneed cemetery trust investments, net | $ 60,776 | $ 72,382 |
Preneed Cemetery Trust Investments [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Preneed cemetery trust investments, at market value | 63,130 | 74,572 |
Less: allowance for contract cancellation | (2,354) | (2,190) |
Preneed cemetery trust investments, net | $ 60,776 | $ 72,382 |
Trust Investments (Cost and fai
Trust Investments (Cost and fair market values associated with preneed cemetery trust investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Preneed Cemetery Trust Investments [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | $ 78,465 | $ 73,009 |
Unrealized Gains | 2,323 | 5,098 |
Unrealized Losses | (18,628) | (4,272) |
Fair Market Value | 62,160 | 73,835 |
Preneed cemetery trust investments | $ 63,130 | $ 74,572 |
Preneed cemetery trust investments, fair market value as a percentage of cost (in Percent) | 79.20% | 101.10% |
Preneed Cemetery Trust Investments [Member] | Mortgage-backed securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | $ 517 | |
Unrealized Gains | 0 | |
Unrealized Losses | (114) | |
Fair Market Value | 403 | |
Preneed Cemetery Trust Investments [Member] | Accrued Investment Income [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | $ 970 | 737 |
Fair Market Value | 970 | 737 |
Preneed Funeral Trust Investments [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 98,670 | 97,047 |
Unrealized Gains | 2,318 | 5,672 |
Unrealized Losses | (17,592) | (4,173) |
Fair Market Value | 83,396 | 98,546 |
Preneed cemetery trust investments | $ 84,337 | $ 99,246 |
Preneed cemetery trust investments, fair market value as a percentage of cost (in Percent) | 84.50% | 101.50% |
Preneed Funeral Trust Investments [Member] | Accrued Investment Income [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | $ 941 | $ 700 |
Fair Market Value | 941 | 700 |
Fair Value, Inputs, Level 1 [Member] | Preneed Cemetery Trust Investments [Member] | Cash and money market accounts [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 3,516 | 5,729 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Market Value | 3,516 | 5,729 |
Fair Value, Inputs, Level 1 [Member] | Preneed Cemetery Trust Investments [Member] | Common stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 34,456 | 28,569 |
Unrealized Gains | 1,646 | 2,766 |
Unrealized Losses | (11,022) | (3,017) |
Fair Market Value | 25,080 | 28,318 |
Fair Value, Inputs, Level 1 [Member] | Preneed Funeral Trust Investments [Member] | Cash and money market accounts [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 22,033 | 24,160 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Market Value | 22,033 | 24,160 |
Fair Value, Inputs, Level 1 [Member] | Preneed Funeral Trust Investments [Member] | Common stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 32,946 | 27,652 |
Unrealized Gains | 1,648 | 2,773 |
Unrealized Losses | (10,383) | (2,869) |
Fair Market Value | 24,211 | 27,556 |
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Debt Security, Government, Non-US [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 8,294 | 5,609 |
Unrealized Gains | 180 | 312 |
Unrealized Losses | (1,687) | (243) |
Fair Market Value | 6,787 | 5,678 |
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Corporate Debt [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 15,474 | 16,916 |
Unrealized Gains | 301 | 1,044 |
Unrealized Losses | (2,979) | (649) |
Fair Market Value | 12,796 | 17,311 |
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Preferred Stock [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 13,691 | 14,206 |
Unrealized Gains | 35 | 904 |
Unrealized Losses | (2,289) | (164) |
Fair Market Value | 11,437 | 14,946 |
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Mortgage-backed securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 451 | |
Unrealized Gains | 0 | |
Unrealized Losses | (251) | |
Fair Market Value | 200 | |
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Debt Security, Government, Non-US [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 8,185 | 5,587 |
Unrealized Gains | 180 | 309 |
Unrealized Losses | (1,631) | (232) |
Fair Market Value | 6,734 | 5,664 |
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Corporate Debt [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 14,374 | 16,109 |
Unrealized Gains | 290 | 992 |
Unrealized Losses | (2,826) | (646) |
Fair Market Value | 11,838 | 16,455 |
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Preferred Stock [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 13,127 | 14,094 |
Unrealized Gains | 21 | 874 |
Unrealized Losses | (2,198) | (198) |
Fair Market Value | 10,950 | 14,770 |
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Mortgage-backed securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 503 | 585 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (252) | (117) |
Fair Market Value | $ 251 | $ 468 |
Trust Investments (Estimated ma
Trust Investments (Estimated maturities of fixed preneed cemetery trust income securities) (Details) - Preneed Cemetery Trust Investments [Member] $ in Thousands | Mar. 31, 2020USD ($) |
Debt and Equity Securities, FV-NI [Line Items] | |
Due in one year or less | $ 0 |
Due in one to five years | 4,178 |
Due in five to ten years | 8,025 |
Thereafter | 19,017 |
Total | $ 31,220 |
Trust Investments (Unrealized l
Trust Investments (Unrealized losses on cemetery merchandise and service trust investments) (Details) - Preneed Cemetery Trust Investments [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Gain (Loss) on Securities [Line Items] | ||
In Loss Position Less than 12 months | $ 21,358 | $ 5,771 |
In Loss Position Less than 12 months | (4,969) | (374) |
In Loss Position Greater than 12 months | 3,541 | 5,680 |
In Loss Position Greater than 12 months | (2,237) | (796) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 24,899 | 11,451 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (7,206) | (1,170) |
Available-for-sale Securities, Amortized Cost Basis | 78,465 | 73,009 |
Unrealized Gains | 2,323 | 5,098 |
Foreign debt | ||
Gain (Loss) on Securities [Line Items] | ||
In Loss Position Less than 12 months | 4,655 | 268 |
In Loss Position Less than 12 months | (1,153) | (42) |
In Loss Position Greater than 12 months | 168 | 758 |
In Loss Position Greater than 12 months | (534) | (201) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,823 | 1,026 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (1,687) | (243) |
Corporate Debt [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
In Loss Position Less than 12 months | 5,810 | 1,368 |
In Loss Position Less than 12 months | (1,412) | (168) |
In Loss Position Greater than 12 months | 3,253 | 4,520 |
In Loss Position Greater than 12 months | (1,567) | (481) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 9,063 | 5,888 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (2,979) | (649) |
Preferred stock | ||
Gain (Loss) on Securities [Line Items] | ||
In Loss Position Less than 12 months | 10,813 | 4,135 |
In Loss Position Less than 12 months | (2,289) | (164) |
In Loss Position Greater than 12 months | 0 | 0 |
In Loss Position Greater than 12 months | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 10,813 | 4,135 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (2,289) | (164) |
Mortgage-backed securities | ||
Gain (Loss) on Securities [Line Items] | ||
In Loss Position Less than 12 months | 80 | 0 |
In Loss Position Less than 12 months | (115) | 0 |
In Loss Position Greater than 12 months | 120 | 402 |
In Loss Position Greater than 12 months | (136) | (114) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 200 | 402 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (251) | (114) |
Available-for-sale Securities, Amortized Cost Basis | 517 | |
Unrealized Gains | 0 | |
Fair Value, Inputs, Level 1 [Member] | Common stock | ||
Gain (Loss) on Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 34,456 | 28,569 |
Unrealized Gains | 1,646 | 2,766 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 15,474 | 16,916 |
Unrealized Gains | 301 | $ 1,044 |
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities | ||
Gain (Loss) on Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 451 | |
Unrealized Gains | $ 0 |
Trust Investments (Preneed ceme
Trust Investments (Preneed cemetery trust investment security transactions) (Details) - Preneed Cemetery Trust Investments [Member] - Interest Income and Other, Net [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Investment income | $ 319 | $ 571 |
Realized gain, net | 1,916 | 1,458 |
Realized losses | (1,372) | (635) |
Expenses and taxes | (187) | (278) |
Increase (decrease) in deferred preneed cemetery receipts held in trust | $ (676) | $ (1,116) |
Trust Investments (Purchases an
Trust Investments (Purchases and sales of investments in preneed cemetery trusts) (Details) - Preneed Cemetery Trust Investments [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Purchases | $ (18,857) | $ (11,626) |
Sales | $ 13,231 | $ 2,992 |
Trust Investments (Components_2
Trust Investments (Components of preneed funeral trust investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Preneed funeral trust investments | $ 81,377 | $ 96,335 |
Preneed Funeral Trust Investments [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Preneed funeral trust investments, at fair value | 84,337 | 99,246 |
Less: allowance for contract cancellation | (2,960) | (2,911) |
Preneed funeral trust investments | $ 81,377 | $ 96,335 |
Trust Investments (Cost and f_2
Trust Investments (Cost and fair market value associated with preneed funeral trust investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Preneed Cemetery Trust Investments [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | $ 78,465 | $ 73,009 |
Unrealized Gains | 2,323 | 5,098 |
Unrealized Losses | (18,628) | (4,272) |
Fair Market Value | 62,160 | 73,835 |
Preneed cemetery trust investments | $ 63,130 | $ 74,572 |
Preneed cemetery trust investments, fair market value as a percentage of cost (in Percent) | 79.20% | 101.10% |
Preneed Cemetery Trust Investments [Member] | Mortgage-backed securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | $ 517 | |
Unrealized Gains | 0 | |
Unrealized Losses | (114) | |
Fair Market Value | 403 | |
Preneed Cemetery Trust Investments [Member] | Accrued Investment Income [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | $ 970 | 737 |
Fair Market Value | 970 | 737 |
Preneed Funeral Trust Investments [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 98,670 | 97,047 |
Unrealized Gains | 2,318 | 5,672 |
Unrealized Losses | (17,592) | (4,173) |
Fair Market Value | 83,396 | 98,546 |
Preneed cemetery trust investments | $ 84,337 | $ 99,246 |
Preneed cemetery trust investments, fair market value as a percentage of cost (in Percent) | 84.50% | 101.50% |
Preneed Funeral Trust Investments [Member] | Accrued Investment Income [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | $ 941 | $ 700 |
Fair Market Value | 941 | 700 |
Fair Value, Inputs, Level 1 [Member] | Preneed Cemetery Trust Investments [Member] | Cash and Money Market Accounts [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 3,516 | 5,729 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Market Value | 3,516 | 5,729 |
Fair Value, Inputs, Level 1 [Member] | Preneed Cemetery Trust Investments [Member] | Common stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 34,456 | 28,569 |
Unrealized Gains | 1,646 | 2,766 |
Unrealized Losses | (11,022) | (3,017) |
Fair Market Value | 25,080 | 28,318 |
Fair Value, Inputs, Level 1 [Member] | Preneed Funeral Trust Investments [Member] | Cash and Money Market Accounts [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 22,033 | 24,160 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Market Value | 22,033 | 24,160 |
Fair Value, Inputs, Level 1 [Member] | Preneed Funeral Trust Investments [Member] | U.S. Treasury Debt [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 820 | 822 |
Unrealized Gains | 17 | 0 |
Unrealized Losses | 0 | 0 |
Fair Market Value | 837 | 822 |
Fair Value, Inputs, Level 1 [Member] | Preneed Funeral Trust Investments [Member] | Common stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 32,946 | 27,652 |
Unrealized Gains | 1,648 | 2,773 |
Unrealized Losses | (10,383) | (2,869) |
Fair Market Value | 24,211 | 27,556 |
Fair Value, Inputs, Level 1 [Member] | Preneed Funeral Trust Investments [Member] | Equity Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 772 | |
Unrealized Gains | 617 | |
Unrealized Losses | 4 | |
Fair Market Value | 1,385 | |
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Debt Security, Government, Non-US [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 8,294 | 5,609 |
Unrealized Gains | 180 | 312 |
Unrealized Losses | (1,687) | (243) |
Fair Market Value | 6,787 | 5,678 |
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Corporate Debt [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 15,474 | 16,916 |
Unrealized Gains | 301 | 1,044 |
Unrealized Losses | (2,979) | (649) |
Fair Market Value | 12,796 | 17,311 |
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Preferred Stock [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 13,691 | 14,206 |
Unrealized Gains | 35 | 904 |
Unrealized Losses | (2,289) | (164) |
Fair Market Value | 11,437 | 14,946 |
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Mortgage-backed securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 451 | |
Unrealized Gains | 0 | |
Unrealized Losses | (251) | |
Fair Market Value | 200 | |
Fair Value, Inputs, Level 2 [Member] | Preneed Cemetery Trust Investments [Member] | Fixed Income [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 2,583 | 1,463 |
Unrealized Gains | 161 | 72 |
Unrealized Losses | (400) | (85) |
Fair Market Value | 2,344 | 1,450 |
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Debt Security, Government, Non-US [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 8,185 | 5,587 |
Unrealized Gains | 180 | 309 |
Unrealized Losses | (1,631) | (232) |
Fair Market Value | 6,734 | 5,664 |
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Corporate Debt [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 14,374 | 16,109 |
Unrealized Gains | 290 | 992 |
Unrealized Losses | (2,826) | (646) |
Fair Market Value | 11,838 | 16,455 |
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Preferred Stock [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 13,127 | 14,094 |
Unrealized Gains | 21 | 874 |
Unrealized Losses | (2,198) | (198) |
Fair Market Value | 10,950 | 14,770 |
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Mortgage-backed securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 503 | 585 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (252) | (117) |
Fair Market Value | 251 | 468 |
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Fixed Income Securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 2,519 | 4,364 |
Unrealized Gains | 162 | 107 |
Unrealized Losses | (302) | (107) |
Fair Market Value | 2,379 | 4,364 |
Fair Value, Inputs, Level 2 [Member] | Preneed Funeral Trust Investments [Member] | Other Investments [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 4,163 | 2,902 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Market Value | $ 4,163 | $ 2,902 |
Trust Investments (Estimated _2
Trust Investments (Estimated maturities of fixed preneed funeral trust income securities) (Details) - Preneed Funeral Trust Investments [Member] $ in Thousands | Mar. 31, 2020USD ($) |
Debt and Equity Securities, FV-NI [Line Items] | |
Due in one year or less | $ 0 |
Due in one to five years | 5,044 |
Due in five to ten years | 7,093 |
Thereafter | 18,473 |
Total | $ 30,610 |
Trust Investments (Preneed fune
Trust Investments (Preneed funeral trust investment security transactions) (Details) - Preneed Funeral Trust Investments [Member] - Interest Income and Other, Net [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Investment income | $ 258 | $ 573 |
Realized gain, net | 2,551 | 1,320 |
Realized losses | (1,129) | (583) |
Expenses and taxes | (97) | (228) |
Decrease in deferred preneed funeral receipts held in trust | $ (1,583) | $ (1,082) |
Trust Investments (Purchases _2
Trust Investments (Purchases and sales of investments in preneed funeral trusts) (Details) - Preneed Funeral Trust Investments [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Purchases | $ (18,538) | $ (10,759) |
Sales | $ 15,968 | $ 2,785 |
Trust Investments (Unrealized_2
Trust Investments (Unrealized losses on preneed funeral trust investments) (Details) - Preneed Funeral Trust Investments [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Gain (Loss) on Securities [Line Items] | ||
In Loss Position Less than 12 months | $ 20,531 | $ 6,089 |
In Loss Position Less than 12 months | (4,822) | (413) |
In Loss Position Greater than 12 months | 3,414 | 5,595 |
In Loss Position Greater than 12 months | (2,085) | (780) |
Total | 23,945 | 11,684 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (6,907) | (1,193) |
Foreign debt | ||
Gain (Loss) on Securities [Line Items] | ||
In Loss Position Less than 12 months | 4,605 | 274 |
In Loss Position Less than 12 months | (1,152) | (43) |
In Loss Position Greater than 12 months | 152 | 723 |
In Loss Position Greater than 12 months | (479) | (189) |
Total | 4,757 | 997 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (1,631) | (232) |
Corporate Debt [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
In Loss Position Less than 12 months | 5,248 | 1,403 |
In Loss Position Less than 12 months | (1,357) | (172) |
In Loss Position Greater than 12 months | 3,127 | 4,433 |
In Loss Position Greater than 12 months | (1,469) | (474) |
Total | 8,375 | 5,836 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (2,826) | (646) |
Preferred stock | ||
Gain (Loss) on Securities [Line Items] | ||
In Loss Position Less than 12 months | 10,594 | 4,412 |
In Loss Position Less than 12 months | (2,198) | (198) |
In Loss Position Greater than 12 months | 0 | 0 |
In Loss Position Greater than 12 months | 0 | 0 |
Total | 10,594 | 4,412 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (2,198) | (198) |
Collateralized Mortgage Backed Securities [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
In Loss Position Less than 12 months | 84 | 0 |
In Loss Position Less than 12 months | (115) | 0 |
In Loss Position Greater than 12 months | 135 | 439 |
In Loss Position Greater than 12 months | (137) | (117) |
Total | 219 | 439 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (252) | $ (117) |
Trust Investments (Narrative) (
Trust Investments (Narrative) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Preneed Cemetery and Funeral Trust Investment [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ (45,100) |
Debt Securities, Available-for-sale, Amortized Cost | 245,200 |
Preneed Cemetery Trust Investments [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Debt Securities, Available-for-sale, Amortized Cost | 31,220 |
Preneed Funeral Trust Investments [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Debt Securities, Available-for-sale, Amortized Cost | $ 30,610 |
Trust Investments (Components_3
Trust Investments (Components of Care trusts’ corpus) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Gain (Loss) on Securities [Line Items] | ||
Care trusts’ corpus | $ 52,774 | $ 63,416 |
Perpetual Care Trust Invesments [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Cemetery perpetual care trust investments, at market value | 52,677 | 64,047 |
Obligations due to (from) trust | 97 | (631) |
Care trusts’ corpus | $ 52,774 | $ 63,416 |
Trust Investments (Cost and f_3
Trust Investments (Cost and fair market values associated with the trust investments held in perpetual care trust) (Details) - Perpetual Care Trust Invesments [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Gain (Loss) on Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 65,406 | $ 60,571 |
Unrealized Gains | 1,846 | 5,869 |
Unrealized Losses | (15,371) | (2,905) |
Fair Market Value | 51,881 | 63,535 |
Preneed cemetery trust investments | $ 52,677 | $ 64,047 |
Preneed cemetery trust investments, fair market value as a percentage of cost (in Percent) | 79.30% | 104.90% |
Accrued Investment Income [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 796 | $ 512 |
Fair Market Value | 796 | 512 |
Fair Value, Inputs, Level 1 [Member] | Cash and Money Market Accounts [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 4,128 | 4,624 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Market Value | 4,128 | 4,624 |
Fair Value, Inputs, Level 1 [Member] | Common stock | ||
Gain (Loss) on Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 26,621 | 21,594 |
Unrealized Gains | 1,261 | 3,399 |
Unrealized Losses | (8,736) | (1,911) |
Fair Market Value | 19,146 | 23,082 |
Fair Value, Inputs, Level 2 [Member] | Debt Security, Government, Non-US [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 7,041 | 4,200 |
Unrealized Gains | 139 | 238 |
Unrealized Losses | (1,448) | (175) |
Fair Market Value | 5,732 | 4,263 |
Fair Value, Inputs, Level 2 [Member] | Corporate debt | ||
Gain (Loss) on Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 12,357 | 11,658 |
Unrealized Gains | 277 | 802 |
Unrealized Losses | (2,345) | (534) |
Fair Market Value | 10,289 | 11,926 |
Fair Value, Inputs, Level 2 [Member] | Preferred Stock [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 11,988 | 10,782 |
Unrealized Gains | 45 | 666 |
Unrealized Losses | (2,138) | (106) |
Fair Market Value | 9,895 | 11,342 |
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities | ||
Gain (Loss) on Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 347 | 324 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (193) | (71) |
Fair Market Value | 154 | 253 |
Fair Value, Inputs, Level 2 [Member] | Fixed Income Securities [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 233 | |
Unrealized Gains | 146 | |
Unrealized Losses | (1) | |
Fair Market Value | 378 | |
Fair Value, Inputs, Level 2 [Member] | Other Investments [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 2,924 | 7,156 |
Unrealized Gains | 124 | 618 |
Unrealized Losses | (511) | (107) |
Fair Market Value | $ 2,537 | $ 7,667 |
Trust Investments (Estimated _3
Trust Investments (Estimated maturities of the fixed income securities) (Details) - Perpetual Care Trust Invesments [Member] $ in Thousands | Mar. 31, 2020USD ($) |
Gain (Loss) on Securities [Line Items] | |
Due in one year or less | $ 0 |
Due in one to five years | 3,296 |
Due in five to ten years | 6,241 |
Thereafter | 16,533 |
Total | $ 26,070 |
Trust Investments (Fixed income
Trust Investments (Fixed income securities within our perpetual care trust investment in an unrealized loss position) (Details) - Preneed Funeral Trust Investments [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair market value | ||
In Loss Position Less than 12 months | $ 17,380 | $ 4,214 |
In Loss Position Greater than 12 months | 3,047 | 4,054 |
Total | 20,427 | 8,268 |
Unrealized Losses | ||
In Loss Position Less than 12 months | (4,244) | (328) |
In Loss Position Greater than 12 months | (1,880) | (558) |
Total | (6,124) | (886) |
Foreign debt | ||
Fair market value | ||
In Loss Position Less than 12 months | 4,069 | 168 |
In Loss Position Greater than 12 months | 151 | 549 |
Total | 4,220 | 717 |
Unrealized Losses | ||
In Loss Position Less than 12 months | (976) | (26) |
In Loss Position Greater than 12 months | (472) | (149) |
Total | (1,448) | (175) |
Corporate debt | ||
Fair market value | ||
In Loss Position Less than 12 months | 4,077 | 1,057 |
In Loss Position Greater than 12 months | 2,803 | 3,253 |
Total | 6,880 | 4,310 |
Unrealized Losses | ||
In Loss Position Less than 12 months | (1,042) | (196) |
In Loss Position Greater than 12 months | (1,303) | (338) |
Total | (2,345) | (534) |
Preferred stock | ||
Fair market value | ||
In Loss Position Less than 12 months | 9,173 | 2,989 |
In Loss Position Greater than 12 months | 0 | 0 |
Total | 9,173 | 2,989 |
Unrealized Losses | ||
In Loss Position Less than 12 months | (2,138) | (106) |
In Loss Position Greater than 12 months | 0 | 0 |
Total | (2,138) | (106) |
Mortgage-backed securities | ||
Fair market value | ||
In Loss Position Less than 12 months | 61 | 0 |
In Loss Position Greater than 12 months | 93 | 252 |
Total | 154 | 252 |
Unrealized Losses | ||
In Loss Position Less than 12 months | (88) | 0 |
In Loss Position Greater than 12 months | (105) | (71) |
Total | $ (193) | $ (71) |
Trust Investments (Perpetual ca
Trust Investments (Perpetual care trust investment security transactions recorded in Other, net) (Details) - Preneed Funeral Trust Investments [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Gain (Loss) on Securities [Line Items] | ||
Realized gains | $ 709 | $ 354 |
Realized losses, net | (679) | (171) |
Net change in Care trusts’ corpus | $ (30) | $ (183) |
Trust Investments (Perpetual _2
Trust Investments (Perpetual care trust investment security transactions recorded in Other revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Gain (Loss) on Securities [Line Items] | ||
Total | $ 77,490 | $ 69,081 |
Preneed Funeral Trust Investments [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Realized losses, net | (679) | (171) |
Other revenue | ||
Gain (Loss) on Securities [Line Items] | ||
Total | 5,487 | 3,850 |
Other revenue | Preneed Funeral Trust Investments [Member] | ||
Gain (Loss) on Securities [Line Items] | ||
Investment income | 1,405 | 1,087 |
Realized losses, net | (36) | (290) |
Total | $ 1,369 | $ 797 |
Trust Investments (Purchases _3
Trust Investments (Purchases and sales of investments in the perpetual care trusts) (Details) - Preneed Funeral Trust Investments [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Gain (Loss) on Securities [Line Items] | ||
Purchases | $ (14,612) | $ (9,157) |
Sales | $ 12,694 | $ 1,702 |
Receivables Accounts Receivable
Receivables Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Trade and financed receivables | $ 20,594 | $ 20,554 |
Other receivables | 1,479 | 1,773 |
Allowance for credit losses | (1,228) | |
Accounts receivable, net | 20,845 | 21,478 |
Allowance For Bad Debt And Contract Cancellation | (849) | |
Funeral | ||
Segment Reporting Information [Line Items] | ||
Trade and financed receivables | 9,537 | 10,046 |
Other receivables | 311 | 935 |
Allowance for credit losses | (258) | |
Accounts receivable, net | 9,590 | 10,758 |
Allowance For Bad Debt And Contract Cancellation | (223) | |
Cemetery | ||
Segment Reporting Information [Line Items] | ||
Trade and financed receivables | 11,057 | 10,508 |
Other receivables | 870 | 157 |
Allowance for credit losses | (970) | |
Accounts receivable, net | 10,957 | 10,039 |
Allowance For Bad Debt And Contract Cancellation | (626) | |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Trade and financed receivables | 0 | 0 |
Other receivables | 298 | 681 |
Allowance for credit losses | 0 | |
Accounts receivable, net | $ 298 | 681 |
Allowance For Bad Debt And Contract Cancellation | $ 0 |
Receivables (Narrative) (Detail
Receivables (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for credit losses | $ 1,228 | ||
Term of sales contract for cemetery interment rights, maximum (in Duration) | 5 years | ||
Unearned finance charges associated with receivables | $ 4,404 | $ 4,522 | |
Provision for bad debt and credit losses | 690 | $ 366 | |
Funeral And Cemetery [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Provision for bad debt and credit losses | 200 | ||
Cemetery | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Allowance for Credit Loss, Current | 596 | 580 | |
Lafayette, California [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for credit losses | 600 | ||
Accounts Receivable, Allowance for Credit Loss, Current | 300 | ||
Accounts Receivable, Allowance for Credit Loss, Noncurrent | 300 | ||
Preneed Cemetery Receivables [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for credit losses | (1,704) | (1,290) | |
Accounts Receivable, Allowance for Credit Loss, Current | 2,412 | $ 2,405 | |
Provision for bad debt and credit losses | $ 228 | $ 200 |
Receivables (Preneed cemetery r
Receivables (Preneed cemetery receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Preneed cemetery receivables | $ 43,404 | $ 41,316 | |
Unearned finance charges associated with receivables | (4,404) | (4,522) | |
Receivables From Preneed Funeral Trust Gross | 39,000 | 36,794 | |
Less: balances due on undelivered cemetery preneed contracts | (5,837) | (4,823) | |
Preneed cemetery receivables, net | 20,402 | 20,173 | |
Allowance for Contract Cancellations [Roll Forward] | |||
Provision | (690) | $ (366) | |
Ending balance | 1,228 | ||
Trade and financed receivables | 20,594 | 20,554 | |
Receivables from Preneed Funeral Trusts | (18,089) | (18,024) | |
Preneed Funeral Trust Funds Allowance For Contract Cancellation And Credit Loss | (2,674) | (1,916) | |
Accounts Receivable, after Allowance for Credit Loss | (10,087) | (9,882) | |
Cemetery | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Accounts Receivable, before Allowance for Credit Loss, Current | 1,500 | 1,400 | |
Allowance for Contract Cancellations [Roll Forward] | |||
Ending balance | 970 | ||
Trade and financed receivables | 11,057 | 10,508 | |
Receivables from Preneed Funeral Trusts | 3,200 | 3,100 | |
Preneed Cemetery Receivables [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Accounts Receivable, Allowance for Credit Loss, Current | 2,412 | 2,405 | |
Allowance for Doubtful Accounts Receivable, Current, Preneed Receivables | 3,937 | 4,049 | |
Allowance for Contract Cancellations [Roll Forward] | |||
Beginning balance | (1,290) | ||
Write-offs and cancellations | (132) | ||
Provision | (228) | $ (200) | |
Accounts Receivable, Credit Loss Expense (Reversal), Acquisition | (318) | ||
Ending balance | (1,704) | ||
Cemetery interment rights | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Preneed cemetery receivables | 33,067 | 31,366 | |
Cemetery merchandise and services | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Preneed cemetery receivables | 10,337 | 9,950 | |
Cemetery | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Accounts Receivable, Allowance for Credit Loss, Current | $ 596 | $ 580 |
Receivables (Aging of past due
Receivables (Aging of past due financing receivables) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Total Past Due | $ 4,412 |
Current | 38,992 |
Total Financing Receivables | 43,404 |
Recognized Revenue [Member] | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Total Past Due | 3,675 |
Current | 28,892 |
Total Financing Receivables | 32,567 |
Deferred Revenue [Member] | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Total Past Due | 737 |
Current | 10,100 |
Total Financing Receivables | 10,837 |
Financing Receivables, 30 to 59 Days Past Due [Member] | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Total Past Due | 1,050 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Recognized Revenue [Member] | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Total Past Due | 807 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Deferred Revenue [Member] | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Total Past Due | 243 |
Financing Receivables, 60 to 89 Days Past Due [Member] | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Total Past Due | 623 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Recognized Revenue [Member] | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Total Past Due | 458 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Deferred Revenue [Member] | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Total Past Due | 165 |
Financing Receivables, 90 to 120 Days Past Due [Member] | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Total Past Due | 334 |
Financing Receivables, 90 to 120 Days Past Due [Member] | Recognized Revenue [Member] | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Total Past Due | 242 |
Financing Receivables, 90 to 120 Days Past Due [Member] | Deferred Revenue [Member] | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Total Past Due | 92 |
Financing Receivables, Greater Than 120 Days Past Due [Member] | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Total Past Due | 2,405 |
Financing Receivables, Greater Than 120 Days Past Due [Member] | Recognized Revenue [Member] | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Total Past Due | 2,168 |
Financing Receivables, Greater Than 120 Days Past Due [Member] | Deferred Revenue [Member] | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
Total Past Due | $ 237 |
Receivables Allowance for credi
Receivables Allowance for credit losses by portfolio segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Credit Loss Expense (Reversal) | $ (462) | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | (287) | |
Accounts and Financing Receivable, Allowance for Credit Loss, Writeoff | 545 | |
Accounts Receivable, Allowance for Credit Loss, Recovery | (175) | |
Allowance for credit losses | (1,228) | $ (849) |
Funeral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Credit Loss Expense (Reversal) | (325) | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | 0 | |
Accounts and Financing Receivable, Allowance for Credit Loss, Writeoff | 465 | |
Accounts Receivable, Allowance for Credit Loss, Recovery | (175) | |
Allowance for credit losses | (258) | (223) |
Cemetery | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Credit Loss Expense (Reversal) | (137) | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | (287) | |
Accounts and Financing Receivable, Allowance for Credit Loss, Writeoff | 80 | |
Accounts Receivable, Allowance for Credit Loss, Recovery | 0 | |
Allowance for credit losses | $ (970) | $ (626) |
Receivables Amortized cost basi
Receivables Amortized cost basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2020 | $ 4,450 | |
2019 | 15,420 | |
2018 | 8,300 | |
2017 | 5,050 | |
2016 | 2,900 | |
Prior | 2,880 | |
Receivables From Preneed Funeral Trust Gross | $ 39,000 | $ 36,794 |
Receivables from Preneed Trus_3
Receivables from Preneed Trusts (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables From Preneed Trusts [Abstract] | |
Amount at which there is no controlling interest in trust assets (Description) | less than 50% |
Receivables from Preneed Trus_4
Receivables from Preneed Trusts (Receivables from preneed funeral trust funds) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables From Preneed Trusts [Abstract] | ||
Preneed trust funds, at cost | $ 18,650 | $ 18,581 |
Less: Allowance for contract cancellation | (561) | (557) |
Receivables from preneed trusts, net | $ 18,089 | $ 18,024 |
Receivables from Preneed Trus_5
Receivables from Preneed Trusts Receivables from Preneed Trusts (Composition of Assets Held in Trusts) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets held-in-trust | $ 18,662 | $ 18,659 |
Fair Value [Member] | Cash and cash equivalents [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets held-in-trust | 4,580 | 4,533 |
Fair Value [Member] | Fixed income investments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets held-in-trust | 11,685 | 11,603 |
Fair Value [Member] | Mutual funds and common stocks [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets held-in-trust | 2,392 | 2,518 |
Fair Value [Member] | Annuities [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets held-in-trust | 5 | 5 |
Historical Cost Basis [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets held-in-trust | 18,650 | 18,581 |
Historical Cost Basis [Member] | Cash and cash equivalents [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets held-in-trust | 4,580 | 4,533 |
Historical Cost Basis [Member] | Fixed income investments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets held-in-trust | 11,685 | 11,603 |
Historical Cost Basis [Member] | Mutual funds and common stocks [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets held-in-trust | 2,380 | 2,440 |
Historical Cost Basis [Member] | Annuities [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets held-in-trust | $ 5 | $ 5 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 19, 2014 |
Convertible Subordinated Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stated interest rate percentage | 2.75% | |
Long-term debt measured at fair value | $ 6.4 | |
Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt measured at fair value | $ 432.3 |
Intangible and Other Non-Curr_3
Intangible and Other Non-Current Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Other Assets, Noncurrent | $ 113 | $ 150 | |
Deferred Costs and Other Assets | 33,457 | 32,116 | |
Amortization of deferred financing costs | 200 | $ 94 | |
Amortization of capitalized commissions on preneed contracts | 141 | 138 | |
Accumulated Amortization of Other Deferred Costs | $ 1,268 | 1,127 | |
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Service Contract, Term | 8 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Service Contract, Term | 10 years | ||
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other Assets, Noncurrent | $ 26,649 | 25,233 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1,100 | ||
Commissions [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Net | 2,903 | 2,818 | |
Noncompete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Net | 3,792 | 3,915 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 7,382 | $ 7,195 | |
Amortization of Intangible Assets | $ 187 | $ 168 | |
Noncompete Agreements [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful life | 1 year | ||
Noncompete Agreements [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful life | 10 years | ||
Credit Agreement 2018 [Member] | Revolving Credit Facility [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of deferred financing costs | $ 100 |
CREDIT FACILITY AND ACQUISITI_3
CREDIT FACILITY AND ACQUISITION DEBT (Long-term Debt Table) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Current maturities on long-term debt | $ (1,085,000) | $ (1,306,000) | |
Long-term debt, excluding current maturities | 5,462,000 | 5,658,000 | |
Revolving credit facility present accordion provisions | 75,000,000 | ||
Amortization of Debt Issuance Costs | 200,000 | $ 94,000 | |
Credit Agreement 2018 [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of the liability component | 83,800,000 | ||
Amortization of Debt Issuance Costs | 100,000 | ||
Credit Agreement [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | (1,618,000) | ||
Credit Agreement [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of the liability component | 112,509,000 | 82,182,000 | |
Notes Payable, Other Payables [Member] | Acquisition Debt, Deferred Purchase Price [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of the liability component | 6,547,000 | $ 6,964,000 | |
Revolving Credit Facility [Member] | Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | $ (1,491,000) |
CREDIT FACILITY AND ACQUISITI_4
CREDIT FACILITY AND ACQUISITION DEBT (Narrative) (Details) | Nov. 30, 2016USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)letter_of_credit | Dec. 31, 2020 |
Debt Covenant To Actual Ratios [Line Items] | |||||
Letters of Credit | letter_of_credit | 1 | ||||
Repayments of Long-term Lines of Credit | $ 33,000,000 | $ 16,200,000 | |||
Revolving credit facility present accordion provisions | 75,000,000 | ||||
Deferred payments | $ 2,000,000 | ||||
Amortization of Debt Issuance Costs | $ 200,000 | 94,000 | |||
Ratio Actual [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Ratio of indebtedness to net capital (in Ratio) (below at March 31, 2015) | 5.75 | ||||
Term Loan [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Revolving credit facility, maximum borrowing capacity | $ 190,000,000 | ||||
Letter of Credit [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Revolving credit facility, maximum borrowing capacity | 15 | ||||
Swingline [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Revolving credit facility, maximum borrowing capacity | 10 | ||||
Senior Notes [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Amortization of Debt Issuance Costs | 67,000 | 34,000 | |||
Interest Expense, Debt | 6,600,000 | $ 5,400,000 | |||
Debt Instrument, Term | 74 months | ||||
Credit Agreement [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Interest Expense, Debt | $ 1,200,000 | $ 400,000 | |||
Credit Agreement [Member] | Term Loan [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.125% | ||||
Prime Rate Option [Member] | Line of Credit [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||
Libor Margin Option [Member] | Line of Credit [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||||
Series of Individually Immaterial Business Acquisitions [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Interest Expense, Debt | $ 100,000 | $ 200,000 | |||
Revolving Credit Facility, Secured, Floating Rate [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Weighted average interest rate | 4.30% | 4.10% | |||
Revolving Credit Facility, Secured, Floating Rate [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Carrying value of the liability component | $ 114,000,000 | ||||
Revolving Credit Facility, Secured, Floating Rate [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | Ratio Actual [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Ratio of indebtedness to net capital (in Ratio) (below at March 31, 2015) | 2 | ||||
Ratio of earnings to fixed cost obligations (in Ratio) | 1.20 | ||||
Revolving Credit Facility [Member] | Credit Agreement 2018 [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Carrying value of the liability component | $ 83,800,000 | ||||
Amortization of Debt Issuance Costs | $ 100,000 | ||||
Forecast | Ratio Actual [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Ratio of indebtedness to net capital (in Ratio) (below at March 31, 2015) | 5.50 | ||||
Minimum [Member] | Deferred Purchase Price Notes [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Debt Instrument, Imputed Interest Rate | 7.30% | ||||
Debt Instrument, Term | 5 years | ||||
Maximum [Member] | Deferred Purchase Price Notes [Member] | |||||
Debt Covenant To Actual Ratios [Line Items] | |||||
Debt Instrument, Imputed Interest Rate | 10.00% | ||||
Debt Instrument, Term | 20 years |
Convertible Subordinated Note_2
Convertible Subordinated Notes (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 24, 2018 | Mar. 19, 2014 | |
Debt Instrument [Line Items] | |||||
Effect of dilutive securities, Convertible junior subordinated debentures (in shares) | 0 | 0 | |||
Carrying Values of Liability and Equity Components, Convertible Subordinated Notes | |||||
Amortization of Debt Issuance Costs | $ 200,000 | $ 94,000 | |||
Accumulated Amortization, Debt Issuance Costs | $ 464,000 | $ 337,000 | |||
Convertible Subordinated Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Discount Rate | 11.40% | 11.40% | |||
Debt Instrument, Unamortized Debt Issuance Costs | 3.20% | 3.20% | |||
Stated interest rate percentage | 2.75% | ||||
Carrying Values of Liability and Equity Components, Convertible Subordinated Notes | |||||
Convertible subordinated notes, principal amount | 6,318,837 | ||||
Unamortized discount of liability component | $ (254,000) | (319,000) | |||
Debt issuance costs | (23,000) | (29,000) | |||
Carrying value of the liability component | 6,042,000 | 5,971,000 | $ 6,319,000 | ||
Carrying value of the equity component | 789,000 | 789,000 | |||
Convertible subordinated notes, fair value | 6,400,000 | ||||
Contractual coupon interest expense | 43,000 | $ 44,000 | |||
Accretion of discount, convertible subordinated notes | 65,000 | $ 57,000 | |||
Amortization of Debt Issuance Costs | 6,000 | ||||
Accumulated Amortization, Debt Issuance Costs | $ 136,000 | $ 130,000 |
Convertible Subordinated Note_3
Convertible Subordinated Notes Convertible Subordinated Notes (Narrative) (Details) | Mar. 31, 2020USD ($)$ / shares | Mar. 31, 2020USD ($)$ / shares | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)$ / shares | Dec. 24, 2018USD ($) | Mar. 19, 2014 |
Debt Instrument [Line Items] | ||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Deferred Tax Liabilities, Convertible Subordinated Notes | $ 100,000 | $ 100,000 | ||||
Amortization of Debt Issuance Costs | 200,000 | $ 94,000 | ||||
Interest Expense | 8,428,000 | 6,328,000 | ||||
Convertible Subordinated Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Convertible subordinated notes, principal amount | $ 6,318,837 | |||||
Stated interest rate percentage | 2.75% | |||||
Debt Instrument, Convertible, Conversion Ratio | 45.5554 | |||||
Long-term Debt, Fair Value | $ 6,400,000 | 6,400,000 | ||||
Interest Expense, Debt | 43,000 | $ 44,000 | ||||
Amortization of Debt Issuance Costs | $ 6,000 | |||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 11 months | |||||
Debt Instrument, Discount Rate | 11.40% | 11.40% | ||||
Accretion of discount, convertible subordinated notes | $ 65,000 | $ 57,000 | ||||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 21.95 | $ 21.95 | ||||
Carrying value of the liability component | $ 6,042,000 | $ 6,042,000 | $ 5,971,000 | $ 6,319,000 | ||
Debt Instrument, Unamortized Debt Issuance Costs | 3.20% | 3.20% |
Senior Notes (Details)
Senior Notes (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Repayments of Long-term Lines of Credit | $ 33,000,000 | $ 16,200,000 | |
Accretion of debt discount, net of debt premium on senior notes | 75,000 | 120,000 | |
Amortization of Debt Issuance Costs | $ 200,000 | $ 94,000 | |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Term | 74 months | ||
Debt Instrument, Interest Rate During Period | 6.69% | 6.69% | |
Principal amount | $ 400,000,000 | $ 400,000,000 | |
Long-term Debt, Fair Value | $ 432,300,000 | ||
Debt Instrument, Discount Rate | 6.87% | 6.87% | |
Interest Expense, Debt | $ 6,600,000 | $ 5,400,000 | |
Amortization of Debt Issuance Costs | $ 67,000 | 34,000 | |
Senior Notes [Member] | Senior Note One [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate During Period | 6.69% | ||
Debt Instrument, Discount Rate | 6.87% | ||
Accretion of debt discount, net of debt premium on senior notes | $ 129,000 | $ 120,000 | |
Senior Notes [Member] | Senior Note Two [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate percentage | 6.625% | ||
Debt Instrument, Interest Rate During Period | 6.88% | ||
Debt Instrument, Discount Rate | 6.20% | ||
Accretion of debt discount, net of debt premium on senior notes | $ (54,000) |
Senior Notes Carrying value of
Senior Notes Carrying value of the Senior Notes (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Accumulated Amortization, Debt Issuance Costs | $ 464,000 | $ 337,000 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 400,000,000 | 400,000,000 |
Debt discount, net of accumulated amortization of $765 and $894, respectively | (3,981,000) | (4,110,000) |
Debt issuance costs, net of accumulated amortization of $216 and $283, respectively | (2,077,000) | (2,131,000) |
Carrying value of the Senior Notes | 395,575,000 | 395,447,000 |
Accumulated amortization, debt discount | 129,000 | 492,000 |
Accumulated Amortization, Debt Issuance Costs | 283,000 | 216,000 |
Senior Notes [Member] | Senior Note Two [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Premium | $ 1,633,000 | $ 1,688,000 |
- Additional Information (Detai
- Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 21,891 | $ 22,304 |
Present value of lease liabilities | $ 22,942 |
- Lease Costs (Details)
- Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 957 | $ 924 |
Short-term lease cost | 57 | 75 |
Depreciation of leased assets | 109 | 132 |
Interest on lease liabilities | 126 | 132 |
Total finance lease cost | 235 | 264 |
Total lease cost | $ 1,249 | $ 1,263 |
- Cash flow (Details)
- Cash flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for operating leases included in operating activities | $ 696 | $ 979 |
Cash paid for finance leases included in financing activities | $ 200 | $ 228 |
LEASES - Right-of-use Assets Ob
LEASES - Right-of-use Assets Obtained in Exchange for New Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 77 | $ 0 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 0 | $ 0 |
- Carrying Values of Leases (De
- Carrying Values of Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Finance lease right-of-use assets | $ 6,770 | $ 6,770 |
Accumulated depreciation | (1,675) | (1,566) |
Finance lease right-of-use assets, net | $ 5,095 | $ 5,204 |
- Lease Term and Discount Rate
- Lease Term and Discount Rate (Details) | Mar. 31, 2020 |
Weighted-average remaining lease term (years) | |
Operating leases | 10 years 8 months 12 days |
Finance leases | 6 years 8 months 12 days |
Weighted-average discount rate | |
Operating leases | 8.10% |
Finance leases | 8.20% |
- Maturities of Operating and F
- Maturities of Operating and Financing Lease Liabilities (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Operating | |
Remainder of 2020 | $ 2,688 |
2021 | 3,725 |
2022 | 3,365 |
2023 | 3,267 |
2024 | 3,262 |
Thereafter | 17,799 |
Total lease payments | 34,106 |
Less: Interest | (11,164) |
Present value of lease liabilities | 22,942 |
Finance | |
Remainder of 2020 | 628 |
2021 | 836 |
2022 | 860 |
2023 | 860 |
2024 | 791 |
Thereafter | 6,291 |
Total lease payments | 10,266 |
Less: Interest | (4,192) |
Present value of lease liabilities | $ 6,074 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 1 Months Ended |
Nov. 30, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Payments for legal Settlements | $ 0.7 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) | Mar. 01, 2019USD ($)$ / shares | Mar. 01, 2018USD ($)$ / shares | Mar. 31, 2020USD ($)director$ / sharesshares | Mar. 31, 2019USD ($)$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 8 months | |||
Number Of Directors | director | 5 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 1,100,000 | |||
Directors compensation expense | $ 201,000 | $ 114,000 | ||
Dividends declared per common share (in dollars per Share) | $ / shares | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 |
Dividends | $ 1,339,000 | $ 1,360,000 | ||
Share-Based Compensation Arrangement By Share-Based Payment Award, Non-Option Equity Instruments, Reserved Percentage | 200.00% | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 25,600,000 | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | shares | 26,294 | |||
Employee Stock Purchase Plan Weighted Average Purchase Price Of Shares Purchased | $ / shares | $ 13.73 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 10,200 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Grants in Period, Aggregate Grant Date Market Value | $ 300,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 25 | |||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 163,000 | $ 105,000 | ||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 184,000 | 217,000 | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |||
Share-based compensation expense | $ 215,000 | 204,000 | ||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 237,500 | |||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Granted In Period, Fair Value | $ 2,800,000 | |||
Officers And Key Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Directors compensation expense | 121,000 | $ 19,000 | ||
Board of Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Quarterly installment of annual cash retainer | $ 35,000 | |||
Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 8,821 | |||
Share Based Compensation Arrangement By Share Based Payment Award, Options, Aggregate Grant Date Fair Value | $ 100,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 16.15 | |||
Good to Great Incentive Program [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 449,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | $ / shares | $ 25 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 17,991 | |||
Amended And Restated 2006 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cancelled shares (in shares) | shares | 1,154,000 |
Stockholders' Equity (AOCI) (De
Stockholders' Equity (AOCI) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Equity [Abstract] | |
Beginning balance | $ 0 |
Decrease in net unrealized gains associated with available-for-sale securities of the trusts | (45,104) |
Reclassification of net unrealized gain activity attributable to the Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus | 45,104 |
Ending balance | $ 0 |
Stockholders' Equity (Weighted
Stockholders' Equity (Weighted Average Assumptions) (Details) - ESPP | 3 Months Ended | ||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividend yield | 0.01% | ||||
Expected volatility | 48.63% | ||||
Risk-free interest rate | 1.56% | 1.57% | 1.57% | 1.54% | |
Expected holding period (years) | 1 year | 9 months | 6 months | 3 months |
Stockholders' Equity Cash Divid
Stockholders' Equity Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 01, 2019 | Mar. 01, 2018 | Mar. 31, 2020 | Mar. 31, 2019 |
Equity [Abstract] | ||||
Dividends declared per common share (in dollars per Share) | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 |
Dividends | $ 1,339 | $ 1,360 |
Stockholders' Equity Performanc
Stockholders' Equity Performance Awards Assumptions (Details) - Performance Shares [Member] | Feb. 20, 2019$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected holding period (years) | 4 years 10 months 14 days |
Share price at grant date | $ 25 |
Expected volatility | 27.73% |
Risk-free interest rate | 1.41% |
Earnings Per Share (EPS Computa
Earnings Per Share (EPS Computations) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Less: Earnings allocated to unvested restricted stock | $ (4,197) | $ 6,525 |
Income (loss) attributable to common stockholders | 13 | (33) |
Income (loss) attributable to common stockholders | $ (4,184) | $ 6,492 |
Denominator [Abstract] | ||
Denominator for basic earnings per common share - weighted average shares outstanding | 17,805,000 | 18,057,000 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 40,000 |
Effect of dilutive securities, Convertible junior subordinated debentures (in shares) | 0 | 0 |
Weighted average number of common and common equivalent shares outstanding for diluted EPS computation | 17,805,000 | 18,097,000 |
Basic and Diluted earnings per common share: | ||
Continuing operations (in dollars per Share) | $ (0.23) | $ 0.36 |
Continuing operations (in dollars per Share) | $ (0.23) | $ 0.36 |
Antidilutive securities excluded from computation of diluted EPS | 27,000 | |
Stock Options | ||
Basic and Diluted earnings per common share: | ||
Antidilutive securities excluded from computation of diluted EPS | 1,034,000 | 1,307,000 |
SEGMENT REPORTING (Revenue, pre
SEGMENT REPORTING (Revenue, pre-tax income and total and total assets by segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 77,490 | $ 69,081 | |
Operating Income (Loss) | 2,150 | 15,599 | |
Income before income taxes | (6,347) | 9,201 | |
Total assets | 1,120,557 | $ 1,129,755 | |
Funeral | |||
Segment Reporting Information [Line Items] | |||
Revenues | 61,742 | 56,163 | |
Operating Income (Loss) | 4,311 | 18,076 | |
Income before income taxes | 4,119 | 17,862 | |
Total assets | 762,815 | 790,459 | |
Cemetery | |||
Segment Reporting Information [Line Items] | |||
Revenues | 15,748 | 12,918 | |
Operating Income (Loss) | 4,167 | 3,524 | |
Income before income taxes | 4,105 | 3,585 | |
Total assets | 318,960 | 314,413 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | (6,328) | (6,001) | |
Income before income taxes | (14,571) | $ (12,246) | |
Total assets | $ 38,782 | $ 24,883 |
SEGMENT REPORTING Revenue (Deta
SEGMENT REPORTING Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 77,490 | $ 69,081 |
Supplementary Data (Details)
Supplementary Data (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other current assets: | ||
Prepaid expenses | $ 1,660 | $ 1,596 |
Deposit on pending acquisition | 0 | 5,000 |
Other current assets | 120 | 112 |
Total other current assets | 14,447 | 10,667 |
Current portion of acquisition debt | 1,085 | 1,306 |
Current portion of finance lease obligations | 298 | 290 |
Current portion of operating lease obligations | 1,836 | 1,554 |
Total current portion of debt and lease obligations | 3,219 | 3,150 |
Accrued liabilities: | ||
Accrued salaries and wages | 2,803 | 4,323 |
Accrued incentive compensation | 1,009 | 9,199 |
Accrued vacation | 2,994 | 2,880 |
Accrued insurance | 2,532 | 2,329 |
Accrued interest | 8,979 | 2,299 |
Accrued ad valorem and franchise taxes | 1,063 | 678 |
Accrued commissions | 565 | 560 |
Other accrued liabilities | 146 | 401 |
Federal income taxes payable | 837 | 1,357 |
Unrecorded tax benefit | 2,860 | 0 |
Total accrued liabilities | 23,788 | 24,026 |
Other long-term liabilities: | ||
Incentive compensation | 1,435 | 1,267 |
Contingent consideration | 0 | 470 |
Total other long-term liabilities | 1,435 | 1,737 |
Federal income taxes receivable | ||
Other current assets: | ||
Income taxes receivable | 11,814 | 2,973 |
State income taxes receivable | ||
Other current assets: | ||
Income taxes receivable | $ 853 | $ 986 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | May 19, 2020 | May 18, 2020 | Apr. 19, 2020 | Mar. 01, 2019 | Mar. 01, 2018 | Sep. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Subsequent Event [Line Items] | ||||||||
Dividends declared per common share (in dollars per Share) | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | ||||
Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Dividends declared per common share, increase (in dollars per Share) | $ 0.05 | |||||||
Chief Executive Officer [Member] | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Base salary, percentage change | 15.00% | |||||||
Chief Operating Officer [Member] | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Base salary, percentage change | 10.00% | |||||||
Executive Officer [Member] | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Base salary, percentage change | 7.50% | |||||||
Board of Directors [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Quarterly installment of annual cash retainer | $ 35,000 | |||||||
Board of Directors [Member] | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Quarterly installment of annual cash retainer | $ 29,750 | |||||||
Cash retainer, percentage change | 15.00% | |||||||
Line of Credit [Member] | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Remaining borrowing capacity | $ 74,000,000 | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.625% | |||||||
Forecast | ||||||||
Subsequent Event [Line Items] | ||||||||
Dividends declared per common share (in dollars per Share) | $ 0.35 |