CSV - Earnings call transcript Q2 2002 | Carriage Services, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by, and welcome to the Carriage Services Second Quarter 2022 Earnings Call. [Operator Instructions] Thank you. It is now my pleasure to turn the conference over to Steve Metzger, Executive Vice President, General Counsel and Chief Administrative Officer. Mr. Metzger, please go ahead.

Steven Metzger

good and Jack, you, morning, everyone. Thank be we'll discussing our results. quarter second Today,

financial Investors related public audio be posted available and supplemental made release conference the today. on on after including Our and was made closed, is yesterday being earnings archive website. of page our the recorded, market release, our information This later the will we website

by Officer; are Carlos the and question-and-answer Mel myself, call President Executive addition on call and and remarks this a formal Chief from Brink, Board to Mel, begin will Operating Executive Chairman Payne, period. Chief Chief myself, Carlos, management Quezada, of and followed Today's Ben Officer; Ben, the In will morning and with from Financial and Officer. President Vice be

cause actual that results expectations These our I'd those call, These are for made by forward-looking. begin, like this risks and some statements. state everyone that or are on forward-looking statements. release beliefs, team uncertainties in statements such remind to include, our factors our could and Any in website. with the both of materially during filings both which differ forward-looking and are we uncertainties to, plans, in are projections risks our comments subject make to we'll contemplated future but earnings Before the from identified SEC, our not to limited that available management

I'd website. turn as all found measures. as over non-GAAP Mel. to joining earnings reconciliation Thank our GAAP our measures certain During these discuss And this can the morning. for financial A call measures in this we'll you well now us be call, also like release, on the to appropriate to of also non-GAAP

Mel Payne

mission/vision price, yesterday as be Co-Founder, Board has never CEO, and Company Carriage has This my share Yesterday, journey now Steve. like August our been decline a own incredible Thank and and of years and My of own Company, was in but release this you Chairman share last would we're our I as to you, Market, about an or family perspective had personal 'XX, nothing downs I had. only second XX% XX time It in else. ever only Mr. of a XX% founding history, the morning, our we The since Why started of history and having Carriage a quarter ago. can ups of since our with also best some being but earnings in borrowed. which I public Company in provide consolidation largest and sure $X looked no industry. knowledge, our an money a no the to with meeting ever I XX XXXX the afternoon. Company Not with was best idea. operating prior disconnect? the at we money

our X operations never sometimes periods over I time, us. idea, through XX never in has to It long race was doubt What. akin that historical journey allocation, been was starting This journey and well as some of different years consolidation over short-term Company, better So was over First to element always we short upside that only times, It best, portfolio. areas had great in made-up the last become book in back more which our be we third being the marathon, guided capital it this when JimCollins' XXXX in to years best where And finish guiding Who, optimizing high-performance of journey creation culture front value a no periods our We by line X.X was the it of different by at the throughout Good of always to and good-to-great on to in equity. accelerated Great would XX Company focused reached a Then sometimes concept and right long-term paid with a the never of a get where interest was a highlighted the changed. journey, times, always performance have principles to good last in in equivalent

in the they're intermediate and I long brings domestic company, the uncertainties what are outlooks, and the public know the Every and changes future down their never less these given industry facing near time the in and term. in since in and have have everything beginning and have economy However, really markets regardless in of finance, of much with many world world foggy the year to upside to as term, revising don't uncertainties in, seems investor. my the the seen domestic and our an markets the gone outlooks that in

given We that over for performance. continuing the brings who we and to to conviction back in for short use So what this since areas early the meeting. faster long begin how they every X company, this than I I've the optimize highlighted I've we better Board that I specific release, meeting, to decision months June, history present every presents better which environment our founded Company a which last our as intermediate-term throughout year, 'XX the has meeting. present uncertainties to me chaired or worse. would made all of year, the Ukraine, run have and were the I in since Historically, get Russia decided created in the they invaded rather only meeting grown every instead these yesterday. in agenda few

change and the White, so my Officer A.J., of -- as out comprised in and -- other update. be otherwise by the the led made department, beautiful and our along operations update one new to by and of known marketing Ben then, thank other However, all Vice Franch, has Paul including then, Sales our other President was as and beginning these Head to We the of future Carriage who and Group ago, not Metzger, leaders, Strategic Quezada, that Brink, a of Group, goodness, has the followed other I better planning, COO; now for and Chief we the things; Carriage allocate with and now opened me and could partner; among of the Technology our an our this new thing Phillips, my Rob many Shane year acquisitions Board anybody, The is I Steve and Western opened And is and members, I he Elliott, had things, plan Principles when unfolded President Alfred Strategic agenda presented with thing. fund Financial me. and ran created many time witness. is few watched partner, of the chair Counsel didn't and was our a IT succession analysis little Chief by mentoring who emerged. over this and as Peggy region Pudenz, back General meeting. the who Carlos biggest Officer things, people leaders, X and to Vision I two to strategy [Inaudible] Group them and And And pick didn't trust the Vision Principles created sat Central Shawn be here. executive three Carlos, meeting year, and region that then up ever and I'm benefit Chairmanship. our had they Carlos the rotating that the Eastern Schappaugh, job, it possibly best operation I yesterday. of on acquisitions, the Marketing. Investment a job yesterday, best support others not portfolio our of since

shareholder came this I together And outside Now in here, little I of in and their short right like as thing, all have time it years, about say, areas together how a XX never the so so as doing of all on being come Chapel. the focused a Carriage red in of a the the responsibility use and things a green fit and much a talked Sistine public people puzzle 'XX, along seen Company, letter there. other as talent the much and use beautiful company in amount

you, and I looking then, will XX% Let people out It accounting financial with flexibility but look when like I'm would might that, owner, it. tell to to our don't where expense, away to as have X.X own people of a be will Carlos. a we years, yesterday the like me I and most they're Board more painting turn painting X.X an less. in to years I And tell to do it meeting the away, you, like the at are over would time not Company

Carlos Quezada

Mel. you Thank everybody. morning, very much, Good

very glad second our morning this are to share be quarter XXXX. for performance here to We

challenges center, support the day, all heart, like in the of is of bottom to our best express you very reason family not would high-performance our Houston Carriage From commitment you your or and to I to a the face our that dedication each gratitude much. regardless the of culture why First, Company. the thank being field is Carriage and my pandemic

marketing, will that, call, with an sales. Followed remarks, provide my And close his follow update, Mel updates. an will financial with provide we and will operations acquisitions, IT and today's For after on we Steve to update then, remarks. will

COVID-XX ready striving a being and were it started release, this which what has As has Carriage even team means financial be the hit, mission on a By transformation with a high-performance to of in in was serve. to we last working simply our on outcome the better and Mel performance mentioned before pandemic over alignment very continued call to always the best, our the We earnings than time hard vision transformation. his operations began. we our commentary The years, of been X year journey the before. impact never-ending culture put, of

highlights and of Now to the second results our quarter for XXXX.

a $XX.X $X.X $X.X or of the had an basis X.X%. decrease $X.XX a X.X%. $X.XX, of EBITDA XX.X%, of of XXX decrease points field and Total EBITDA of XX.X%. basis a or margin a total of Adjusted EBITDA million, million decrease XX.X%, of X.X%. of XXX adjusted consolidated increase of $XX.X of margin For Total points. or $XX.X or EBITDA million decrease revenue million, diluted of we decrease million, quarter, field consolidated second million Adjusted $X.X a of EPS

XXX Our we're revenues, coming mainly up which from a also Having that was and revenue grow average growth by or after huge able $XXX significant our milestone our funeral this after X%, volume XXXX, having a QX, COVID by funeral, to up comparable. average was shows sales is in sales volume a growth even contracts or our achieved on funeral X.X%. such huge

the believe to main decrease While full-time transportation do an Number may employees, field are pandemic related record we our in standards thing commitment to is them heroes, have our with part-time which some is EBITDA the EBITDA XXX of a right of points employees of to margin to One hourly get what of two in margins recognize -- inflation stress and X following. cost increase and basis ranges back still industry, years themselves overwork to after the increased we highest have and things. merchandise in to levels is cost, with some support the margins is field experiencing country. they total pay ancillary. done performance our the and What we be X.X around

that employees, As decentralized businesses it believe community, we partners they and can as best having the managing a the them key. rightful for and leaders their decision making is organization, their

but which going asking ranks thank business for to the their Council them standards businesses, sent members, believe not where be to to be to that We Standards and some aligning overall. in and performance Carriage. support the were look teach create support, our members, peer-to-peer Council ideas impacting struggling, strong how best the at them support able that those is the them take our partner back for by Council that, did ranges. those are rally with we come help been addition Carriage all Standards with they best having and the some to decisions what may that be which at able creation is led very we webinars may be may worked get their about for great those value they're letter really going up increases very potential able truly practice their each with also Number into a Standards two them of and a came a to best only we how margin the of what best to their performances improve to at However, great members, they who to across improve to we're portfolio them some from for right up really ideas able that the businesses showcase ideas and and

else moat the the expense mile short-term. uncertainty journey presence come is sprint, and online search Mel track we growth what's at maximize benefits With thing investments We creation the at strong end environment, that that and getting will take global based marketing through improving incredible all surprise, but but digital creation out not believe shared a of modernize information and We guest an mind, branding an market revenue, creating savvy EBITDA it critical. marketing our engines, experience, investments times and everybody these these focusing we result very on in time, in within value campaigns plan the the As services that a end-to-end of practices, share adjusted ideas in fact, social don't marketing the think investment consolidated is customer it the to year, capital believe back of believe of announced We media, the our in overhead we of made is improving we to infrastructure, improve increase that will X engage where through this we're system technology time. and plans to right to a and is on business an to year at new on do, margin, we the organic February which here increase this as interval, see is long-term a From the this have all in in also X just cybersecurity, Carriage we IT ahead it marketing, relates other that and in right to will are industry. decrease increase marathon. this productivity investment some to guest that intelligence and in return best cover experience. families we and perspective, marketing value customer-centric right efficiencies, to in expenses. a in allocation, that we XX-year Carriage do that on mentioned

that before. Decreased and delivering we had paper, through by XX on manual make old. Our capacity is standards led almost capitalize in-service a to we that expansion and current nearly It to support and error. is human efficiencies. business not systems up Rob unique value and Customize hours, need Also, opportunities accelerate directors Franch work, owned funeral anyone streamline by to operations and like by simplify that current differentiating never needs operational enable can the improving in that To best-in-class is new created value also years excellent system, built which focus we can its from Carriage automation, of creation Carriage families the so they the else. if company, will creation further with we is genuinely are us financial This reduce has, on they many each and technology it. serve, X.

and value At same into by customer-centric our never we will to share will out the and capacity there now. businesses to IT probably like our else our creation had gain excellence comparison journey we right Our accelerate market no ecosystem. investments integrate in anyone new before service time, delivering marketing

To the put Now X.X over record perspective, sales, things team still the cemetery Pudenz show very beginning we have possible beginning the XXXX continue moving that to already since cemetery XXXX organic QX. years. X.X the preneed started acquisitions -- in sales years, growth at into his with a the to growth of growth On or beginning able million team $X.X Shane within by XXX.X%. past we is million to in in of were $X.X the QX of and transformation, that XXXX, of X.X% from top million since grow XXXX, production in or new our on for in grew these $XX.X XXXX,

number cemetery engagement to delivers Our for best our one, benefits our of our and is excited we continue teams the Carriage that can. development portfolio and be to portfolio. creating self-edge, are opportunities at that number getting and will number success: X of on best closing, leaders the focus for our sales; areas full In the everyone future. the skill sales selection set; rightful two, now hard the their to opportunity CRM Cemetery an for cemetery sales maximize to the Carriage, continue about preneed work our we throughout three, to continue

all are working the We towards best. being

are historically we done resilient after Our that year, way up very most our thing business, the addition are Death has time. right all ahead been care the settled. come will investment than right past we to work the we in future have and few we what are of believe because all over doing years, of a in the uncertainties this at

able say Carriage Houston would you experience to is will great we If know, come. the were field the that to Thank pass Carriage that with or time to a and at you. I it in Support best be Center, why what you is be to like And Steve. yet to to continue it's

Steven Metzger

Thank you, Carlos.

to relates the continue we encouraged it see high-quality involving acquisition for through As we by to outlook, our be succession businesses plans. activity looking growth

last Carriage. team next that and couple time to that last the announced families partner funeral the XXX chance week, additions letter than to owner the near with This to the consists now expect definitive call, we're market, of homes our family, We expected to we During be continues served decision and the of the with of mentioned business to growing spend half last a pleased year. that more that close had to some intent we're and the the acquisition as under previously a we that We the weeks. report agreement business year the to feature with Orlando in X highlighted some Carriage a business with new case. of back located

funeral we have with and the with As to that serve. welcome family to we excited and announce were the able them letter where they first-class had We're business support families We all also than a quarter. pending a calls desirable in by of built families business, presence. taken a a demonstrated we crematory. This we're build featuring the served the and growth large, intent they've X high-growth thoughtful they to represent X,XXX acquisition for upon year. market, a We're their passion more great Carriage were X,XXX in cemetery previously created. about last homes has foundation plan employees, year, a the These community and under visit than to and which more reputation acquisitions more business additional next a the and this areas, detail excited providing forward look each to not fantastic funeral

These in the So put acquisitions X% these perspective well serve we impact, calls portfolio. X and annually. of that are fit Carriage will total alone home approximately patient to approach of great and the currently overall relates within types believe the we of to businesses businesses to high-performance as of funeral growth selective our examples number represent it represent

possess are both and history all growing large well markets. growth in positioned of strong a they Specifically, reputations,

As well importantly, they present within revenue potential. strong as future expansion markets, respective growth their opportunities as

words, as today, good they very So upside. also present other businesses as intriguing in are these

objective, to we with disciplined no-brainers recognize as that and interested sake we we but to view last performers before, we And wait As must not best we described -- Carriage as continue have rather where we our businesses, don't just to of top the call. and in we for very subsidize elite mentioned performers. the the patient, we're club that low that for getting as an of in mentality bigger, growing remain

it's a no-brainer, likely feel that way. if also We very that to recognize are believe the is same others a we going business

differentiated is highlight well to the story, people. distinctions, we put to we So we find is one know sure those simply that Carriage to make To which of told. and have end, continue to that compelling be ways which our

the e-mails team. up that like couple X HR by to I'd I remarks of of our received So past in wrap reading weeks members brief regarding my

here you're Lesli now from so and have and is of They follow-up, how assisted XXXX, in service to Vegas they respond, in there, accomplished everything in fantastic Jason as wrote, past Lesli, issues. I let our Please and given keep then and you for market. the easier. my listening, employee have Zalesny, not Johnson, a I to got which quick I've few. business, follow they crazy think long-time know much world. excel. Steve, with and I quick new that who Adam the Buchbinder I acquired manager over employee first share organized, also job recently, position Las The dealt Awotesu. has Vegas for acknowledged as the these and outstanding and to wanted Both I my you. Christine and customer as They're excellent is wrote, helpful work to reach a a compliments who just been are. be everyone the items that these out stressful extremely be months, this of Las make anyone service all leads want the this all is know location that professionalism, the we managing needs but They me couple is few love Thank Their there sales through recruiting We too. that give in hiring Ngo who partner. Lesli know to And on A++++. Durham pluses I Abby opportunity have a business are that when times, they've a been with if with great needed at Oludare to

to mind. So reach it's do I important my felt and out in it so, fresh while is

them as particularly and tools, level, the the not great gains top more have leads family, creating in Carlos Carriage important At these have and partners and candidates. the competitive most to our want is shareholders. and in invite are we geared identify we value continue of people. continue to support sure they at talent e-mails as my market businesses to sure strategic acquisition particularly day, advantage certainly X our the make And story serve talent, for our and them as well preparing share, and was over that exception, goal talented managing I with waiting more to with our businesses families help of highlighted together. which I'll just current the highest Ben support remarks best share but our people their we heights welcome our passionate making to timely, Now on the they're turn growing release to ultimately reaching our as investments the to premier understand the as they we to most color some to continue will quarter. to have and for that, to join end conviction new equally that it provide With top-notch

Carl Brink

X.X% you, Year-to-date, increased total to million. has Thank our $XXX.X Steve. revenue

Our per adjusted points adjusted X.X% share adjusted to EBITDA our has $X.XX XXX has basis and EBITDA The increased decreased X.X% to XX.X%, consolidated million. decreased $X.XX. or margin earnings diluted $XX.X consolidated to

compared had discretionary the Our the quarter. NASDAQ negative fund return a total for Year-to-date, continued XX% our and major for Index. return S&P preneed outperform negative discretionary during the X.X% portfolio preneed XXX a trust XX.X% negative trust the indices to fund second to a of portfolio return

the when the strong dollar, took portfolio environment additional the rising in million second opportunity has gains $X.X of to EBITDA the stocks contracts of cash rapidly better the paying income principal be the increase due. March as portfolio recurring we $XX from quarter to many good and plan value We preneed by the recurring XXXX revenue We add and accounts value additional the in and to to high-yield to inflation, an income of and since their our interest accretive of we long-term positioned have by changing perpetual to capital approximately lock of existing for financial pay earn The capital fixed adding landscape. crosscurrents annual care market $X adding maturing to our financial realized with the will into capital in geopolitical million These have our our currently recession We EBITDA. in relative to focus outperform to foreseeable portfolio the ability and opportunities. in redeploy million the and million brought positions and gains, be which earnings will total income selectively portfolio, portfolio will to additive a trust in approximately of interest different will risk revenue future. the that to of gain increasing the on rates, portfolio. have that capital add to look current annually that $XX We dividend our credits

free adjusted free declined in to $XXX,XXX points the $XX and our Our margin declined flow to cash XX XX.X%. by flow million second basis cash adjusted quarter,

flow our of For flow XXXX, XX.X%. half million, adjusted to free basis $XX.X first adjusted the cash XXX free declined points declined our cash margin

we EBITDA, flow invest decline half cash first of in consolidated in adjusted CapEx, higher our result cash in quarter The to incentive our adjusted as the free continue businesses. was lower payments the first and maintenance higher

program X.X to end of of of invested as for XX% shares shares execute X.XXx repurchased quarter consolidated year, quarter an to second adjusted we've to the the $XX.XX. the -- share represents approximately our Since our increased approximately at first the the X.XXx we to X year. began we average an EBITDA quarter last the purchase of to repurchase debt first second quarter, at second million end of of of total price of price XXX,XXX $XXX.X the million a for quarter. ratio approximately outstanding, last compared in diluted million of reduction repurchase In shares $XX.XX. the purchase Our X.X average shares end The repurchased

differentiated with our end pro by our the second capital cemetery towards acquisitions forma earnings to in consolidated XX ratio of quarter EBITDA next development as the year. in the to continued outlined to and towards next release, intend the allocation the high-quality next we then, goal prioritize X reducing and we days, repayment approximately X.Xx of debt As adjusted mentioned, over Steve our inventory of our closing XX months, first debt

Carriage. Our over capital allocation Xx pursue share the possible financial lower us to necessary value the leverage of decisions profile closer to grow to term provide intrinsic flexibility will best the long the per

the solution As and for Carriage, remains Steve acquisition owners for highly landscape mentioned, succession favorable as their best look business. landscape independent active to the -- planning the

lower a our risky allocation the our Carriage, free view of also creation, through flow. generated self-finance majority cash enhancing as view less equity, We as multiples value investors investment leverage over the valuation time, has profile capital internally the of ability to that

Given no scenario range over update our our X-year value right months, XX the have made or allocation changing of capital the we performance to per opinion roughly intrinsic next decision the share. of our priorities longer

million I like earnings share per provide to cash best for performance. $XX strategic up flow $XXX the to expect diluted adjusted of and outlook continue million outlook our will portfolio, acquisition rate And to would million, increase quarter We to a the EBITDA have four small of acquisitions as outlook over it of tax XX% our of to execute a view follows: adjusted free and changing nature XX.X%, marketing, consolidated we an million; in model to free million, we is questions. next is as We the believe is XX outlined to This the rolling next $X; margin X $XXX best $XXX updated technology our outlook, four development, the rolling $X.XX XX% XX% the we the cash quarter open adjusted the updated adjusted interest full consolidated which effective months four with to short-term overhead of given XX close corporate forma of investments and flow to $XX quarter provide to EBITDA XX%, the impact call years. The to in increase includes of on in the million margin rates in that, performance days. $XXX rolling adjusted coming pro our revenue of

Operator

Instructions] line Alex with Paris Barrington comes question of first [Operator from Research. Our the

Alex Paris

function first couple. in you In in just a of marketing, Starting roughly And I level, are anniversary-ing people? forward? your little deliberate include there a due cost done P&L. that's to quarter a And the estimates, reported below, were to step to it significantly as have have So higher growth investments, just fuel technology, below to speak? expand fixed bit overhead and with you slightly and which Can revenues now, change more investments? are the future again, is primarily earnings higher maybe on with Or the those changes increases were matter come? expectations, so you line we go overhead profitability.

Carlos Quezada

is question. Carlos. This Great

the hired January beginning was before. And Carriage Alfred we one had at ever marketing never member of year, on So idea we department marketing at team a White not the of the Xrd. ever,

the company the we within public size to we to that businesses now Carriage. of the somewhat centralize marketing it volume right was building function time that start and have, a right we the and have thought of business and As

partner and Before some to management some out the video, would AdWords just up anything design, media management, for our to social of matter. here, go set hired related that third perspective managing Google -- for a party marketing and

we'll start function of we over in-house. that that And we and which -- now, resources some efficiencies be the our team, X the those through because now see of able that from expenses believe new about it to we so a time, have to significant will right that marketing lot we have people is perspective some new consolidate in

building Google guest reviews, presence digital gains, course, media online each for share of online presence, all and website, experience social marketing, to business. significantly focusing on platforms, relates related to it are the market of opportunities and value, creating as We in course,

which we now have. plan the right now will costs for to next level, from now. And continue so And certain right perspective, amount we see marketing to believe is I able amount that we'll planned. feel then that efficiencies, the have the additive those then productivity replace show the right a believe have execute strategy that the and few months, over as to we of will perspective, at we be we field our the at we right that of on the we we overhead pretty some a what it here people be growth gain from not as market

ahead some feel believe very because answers of strategies we it we believe your now. and So I people it that because we executing we Even right right way think question. though is had about excited uncertainty, hope else out than believe, long-term, time. never about before. we will anybody come this that the we're our We

Mel Payne

turn technology highly is where basically I and to mad here, figure as grown, would acquisition, early stress business scientist or the leadership. and was would this, Alex, this Company's But of took the of was the try the rapidly model and information one the had different a Look, blah I of blah, a upside and 'XX, try always there grow solid, error, So catching even time things way And that, at like in you a different between support, also to I and and blah, I've though I've long the a there and a in systems, did by it growth, 'XX, fragmented idea, always overhead lots the out evolution idea core traditional we trial Mel. if up with industry. times, old down end and consolidate were lot that operate and covered operating written.

could what So there lots this seen important gaining seen though in that areas, yet through and and the marketing, were Council we everybody that, during they share, were lot rate it performance without feedback would. up stress. and to innovative thought give people we I Standards death popped on yet it And we've most were we of and deaths though, could tends of deficient were centralized there doubt not always even optimal, we doing have keep COVID, began that the COVID And imagine the And the of to of was that the our way like doing, evidence across we've some symptoms market were looked it. doing a even have plummet. no portfolio, plummet COVID go we we

how and his dreamed came the just entered know thing, we when so talking I Rob knew And don't ideas that I need Carlos will we this about much That could and going, needed somebody a and Franch. particularly started technology. year, well, we find as like marketing never I was no-brainer. I'm use that. people and our

Carlos Council to members by ideas be seeded others. began and And so these and Standards supported tremendously by the

many media technology. that's them but don't they're information ever And the our who these going better with get response no them. away. these from it, the and new could I the could I mean, and don't been -- the and our had of people, getting tell that I maybe it's hear just and it's hearing in the And have of from sort pace doubt a response thing, they've I ideas never had mean, many, as size. accepted have these if if the same have I'm happened okay, that a do had I marketing done will But bigger you I know questioned our thing long, here by why from on bit And we that, ideas, ideas, now social investors. ideas. been never never more I but little say, put they've bone. But from taken short-term had would that he -- these never owner but sort you so seeing it time, I a at is to people them. I need we're could and of on you, this a big and for saying of he's there's it not has to this I Company. I And Carlos I the most best the meat not, use a And ideas all by it had here, ideas the is and time. decades, in at lot and of other look, it,

Company my know last in I excited. been so it's the it own know it, industry I've bring what the independent of wife everybody table am do I we that it will reputation have history look pops, anymore, I actually in about like, what going could mom we sudden, we already to so the know we with will like the the size a whole excited all so of where and what who you business. across night, in how let but never but is their it that kind of have shock and don't of tried these I And advance. to the mean good. support organically and I told don't terms this acquisitions will what we're look in make of and to and stuff

look going And the we so expectations. didn't more a for We that some people. I always surprised for think you increase damn, businesses it's ready why five to on go in that. But weren't And to know overhead apologize before. the owner, big allocation years lot areas. capital We're back we're there's of I it's tell can It I existing quick. a our here. in lot, these it. years five I resetting a don't and do, as do

And are. message. the gets I we Now hope everybody

Alex Paris

too, in variance focused I understand was kind a and everything earnings, of said, on you But with investments. certainly we're you in sudden agree these result our long-term deliberate the as of shock said, investment. a terms it of and as

Mel Payne

able 'XX, those 'XX, to had there. you want in know, know, new wanted we to to XX%. I more. are we and to for in had get people to had And enough. up our tried story to we don't hit and something. we wrote happened, were company blew we back where It's no people been are well, you Historically, then I XX.X%. about is who and 'XX, know. of good to, XX% close thing who past EBITDA get We going And about this to fairly story, to it, XX%. never The And think, margin adjusted that XX% Alex, to more. in to new I didn't XX% interesting, fairly everything the when get consolidated Yes. an get to acquisitions, want then We

what have a value ahead will performance creation. more organic go have to of we're do you optimize I trying now. to I'll doing. performance is owner against and -- the of as you short-term and and CEO that growth so this this at long-term and it end big a guard And And sacrifice -- to

were Munger improving mental of thinking now, Well, they X of then about the a because also at wonderful I'll and the is Munger. good Carlos, by lifelong Investors by Munger. of general that's question, The mentoring I you Ben of the Charlie's come we're it's I curriculum. for to Alex. to best there come in here. to and of of a and to have an Poor the right that, now, journey also just am all I Quezada, say by Models is is have Almanack right my My models Bevelin. XX Starting open gave, Warren now my these about it order of writing. It's Parrish. in Few I've updated the Mental Models on me? asked Shane But Steve and my to it it and a XX. with thinking, Buffett. Farnam get Seeking it each just Charlie and to with And big Buffett. be unbelievable how mention quote, everybody be volumes, my This debt. good human and unbelievable, Lessons the all it's is growing the quality Brink want to Ben know what talking I simply And head is times. is head. Managers office. of Carlos If a reduced nothing, in time a is Metzger, he this book, mentioned short human Charlie by favorite but then distillations let wisdom give Street collection of concepts a them of a of Anybody a and books, but Media Steve good guaranteeing on Shane Munger founder Warren collection misjudgment one and It's idea five be had, I And You models the learning Parrish, to awesome four me. It's by their Carriage Great How more. including And Charlie I He's of office. Great in the wisdom, each me. are them: have full I'd how welcome here, a by anybody volumes the Darwin thinking kids. investing. job an From in as the X Charlie person's XX, nature job of Peter talk is are I finally, now, bunch of they're ever what, mental and function will psychology book about Wisdom: to that a Mental have copy

Alex Paris

out Mel. check books. definitely those Well, thank you, I'll

Mel Payne

Come then get soon, you copy a can free.

Alex Paris

All right. there down do. visit a for due I'm anyway. We'll

rolling So four the question, with to I'll regard last is ask the Ben, outlook. quarter probably for

the for essentially the performance the said, you just when the includes outlook orientation I'm company, quarter board it includes strategic revenue and is a as comments. to rolling was longer-term the with And overhead While be pending on assumption to-date, made all at investments that of to same, that the the X next running the you've it the all is looking acquisitions. X next are year. clear, last gave investors it it With quarters Ben, quarter

Carl Brink

No.

so. these think come months range to comfortable them back for we how when next including next these each -- right, trending. we kind Alex, couple each we this felt time operations even at at that's what over X And go that with we and right, those been reacquire give look everything has quarters, put I think in acquisitions of where and the are, out, of and look I most

Alex Paris

it little a families And that, projecting appropriate and that? to then orders call, acquisitions methodology XXX thumb, of by magnitude, terms just per little $X,XXX of as less more a these a than the a revenue of than revenue would of have? impact what rule sort average in Is take it multiply

Carl Brink

as that us. I really don't yet, we It's whether closed brands with think those markets. don't are it see, with we're haven't at be because a exactly these ready for very on time, businesses to great of say right, right? But lot to averages, -- the opportunities, that these in grow specificity Alex, we continue this I exciting

Alex Paris

adjusted in midpoint. we very And level X the then outlook you in these offline, your for where outlook X your and variance between current thank to reflecting and right. but much. I'll you there. see few leave quarter it questions midpoint rolling follow-up four last I'll increased All EBITDA obviously, your EPS quarter expenses, of quarter overhead adjusted that's outlook, have a

Operator

the comes o line of next Our question from

Liam Burke

wanted offset I purchase have funeral higher a in you you, How agreements I that cemetery? the your lot Carlos, vendors. ask did or guess, much either of home help do cost to with merchandising

Carlos Quezada

I get are us does. -- some does -- It help there more certainty. some Well, mean, it

the -- some of of absorb at a family. time we fine away taking increases. on between the to never from do share some -- increase right We charging serving to, and bring we and soon. measures what's want do want A transportation to gaining market are market surcharge cost. more due by one, they always United up the not, do. but However, some they're have. chain is vendors gain point have There with those very go right for inflation the to of supply make not there's as actually had where and came cost may families materials in or that and way, their But sure these that so passing those the that all want on outside you agreement, the those We several always charges merchandise we we in if of we an I challenges balance a to don't they we told make course, to an high on than pass others. of they surcharge some sure but which expect letters, increase the cost, share didn't currently lot of And States, per

feel fine with tell very support I place get place now to on a that of the the Support Houston here taking that dealing we analysts consequence Center, and, to be the that as balance now. our so are partners. will that making at are able efforts taking right conversations to we're managing back the And that margins, we right our can course, with right and you decisions field EBITDA And track confident very is that of with

Liam Burke

cost, business piece on any But dealing difficult, you surcharge did factor I that. would of with I when if especially related in hear families. you understand the is think the pricing it's or you're the the merchandise are these the charges come decline price until these going you or okay, end? are -- there relief of -- to we actually as presuming down input see stick the on costs kind I vendor

Carlos Quezada

and most -- going the the and from would see misunderstand just we then [Inaudible] on bit that to I specific some going were to been Surcharges was cases, that. able up, really is in We Gas the May, weighted business stay family, make up. in that probably to not, able say to to we capture if than that we've not a significant It's we more going all to was pass but little cases, permanent. changes. would but be vendors be to surcharge most in some cases, here to in started are noticed But cost.

Liam Burke

and Or it the Or that And property -- then level? saw Is branding been give to mentioned passed, Mel mean, share, line? his to level? you it color on property little on COVID the in had overhaul comments is marketing Do individual us need front, would I that. what marketing along you the you that taking can does a go you how deficiencies. down your strategy? the it And change Or program?

Mel Payne

side, a created marketing never off funeral Yes. -- kick lot all -- the by centralized on call I Houston the had idea we was as I'll of and a had achieve, our decentralized the Council, marketing stand-alone funeral easy function. the Center, was it to to decision-making I done people the not that. want Support to against -- Yes. -- what bring on We centralized the But performance locally. because wanting into standards Standards

who's lot acquisition broke. a not deficiencies fragmentation over began the the always they we over standards, decision But use the was the aren’t was quality it We So messaging. really were last done revenues there, as of years, do at idea great and join an have a Mel, when design not locally, should still presence been the And online you other I see performance a and that's and a a website that if candidate around talking hitting why actually their company as had inferior decentralized. down going, after this they growing he I'm was a for business company about were is arrow did came own join long mine, top-notch, which in their had locally, to how went am. X.X compounding good you heart, fix it. -- that -- and what with to had over me was that's I I so time, as why would and always wasn't say, had tell don't to volumes which when We've online and visit, as whatever to looked decentralized. we're we Carlos different 'XX they We've great the well, there time, about. this something I vendors

was stuff. already go terrible complaining around it. Our help Google have those, who They online Standards and to were Council about volunteering presence,

be about and And this, the that's And -- so future sit and we creative don't and if future. get disruptive, here he's I to an disrupted. committee, the we will innovation and all mean talked we go

has to cost. like, response a yesterday, getting just how cost. was so and costing be do was had would would proud know proud, A.J. so his I been our even that overwhelming, team. I presented better. wanting quite as shock didn't people me And a to was a when from to going Carriage, much all it knowing so I and And Carlos and this reaching to big of I've get of know been he we're centrally, how out, just I this But real bit. It's the it's ideas it a and customer owner members help wow, are

the And moat from call getting lot we bring of places. on I marketing the accelerate been focused market our Charlie, And and why of be competitive locally, we of top hunters each already getting will on of market that share Warren it, leaders, share team support gains This XE as employees well. and best what through the as of we and and reading will each much the those doing. the business creative. lot a being I'm and advantage services expanding leadership, that's IT IT, As a they've the market were now wanting

the Over the managing and would is created I in partners it do last best what was managers this years, be When to this idea Well, in charge has -- younger to happened. what I each support having of places. thought this have business, I XX or seasoned wrong. 'XX, way XX XX people

things businesses talent the each in execute and in marketing we the of provide the a and has of been much charge Carlos our at is unit and younger, that more digital use growing change the have but And upset, services that. and of younger not online they demanding it see has they're As never of talent, had good that the I quality of more in from evolved, And tools, position, excited. what female consumer to acceptance like rapid much they're could that's where enough have And wasn't leadership. energy bottom-up I now have done what I through they're bubbling amazing wonderful are, -- the seen to ideas. Steve's done Carlos. them, to know I and so And going layer thinking excitement true trust added these and good why up wow. how strategy our individual have them. I'm every businesses lot things but with not in department. our acquisitions. I a of an of wouldn't amount Ben's that's

So of not injured. certainly an or I think that is part in Carriage mean It's can't single overhaul. I now need of right of a broken

There's individual always, bears it on cheap, of grade fast. tell talent funeral regions, leadership not at and lot have going we to homes. a will I this, right but and we're that upgrade That's top continued now. Now you cemeteries, fruit business our

can't about of time to period in looking think of one. own is I this uncertainty. at so other not case, to we're my I'd And XX% our in want now. this It's than an a what think investment. Company better right

Carlos Quezada

is And Liam, this Carlos.

If related I'll some to specificity marketing. give you to you want --

put bit So to over That's a leads Marketing Alfred put a accounts, XX months, X and X online media marketing just on Xrd. things and In who and full projects businesses experience. guest to able Director. White, team? social our together, started are months. XX working managing been January in business that team currently we're little He's he's marketing -- perspective, our He guest

is platforms. with all and tremendous and between content there's media cetera. XXX et be the manage We X and amount now internal investor all as business foundation designed websites, have will currently which goal, internally websites marketing social created for development, for video new accounts, businesses. benefits, We new tremendous collaboration the being groups, portfolio There wellness across the of different departments projects, relationships, a

impressive. his so very time excited short of this just is and amount because very of such And the just is we're execution beginning little in level

about productivity feel level makes very happen. and increased us that efficiencies, going revenue So that's the of course, to hopeful of

coming Our stars, the Google level, businesses. are marketing XXX these emphasis level, amount of in reviews, team over in, the last are coming couple business the that just improvement of that on the exponentially in reviews have months at our and putting effort that local are reviews the the because grown in, of reputation just

more and reputation, revenue. market get all gains that XXX but grows we'll and over grows grows way business grows have of eventually, businesses share that that them, that We

been he's we're And impressive highly to focused achieve. on very and is able so what it that,

XXXX, cases, teams this. -- share the we additional family of calls COVID-XX COVID, course, from of highly X,XXX increase a of not year. that's all at less growth story our time, year, I'll XX.X% that XXXX, tells opportunities, of capacity and, today in almost were gain That last to confidence business. gain the case half gain of our are had our the organic grow volume that's me, an to needed front, in the June COVID-XX huge that to field to year-to-date cases. COVID this than being only X.X% point June the On This cases

-- about the are do as need in to efforts also prepared so we we -- well organically, it's of a that. digitally, Company are to very marketing future combination and now, happy between we're stayed to know where addition And how market all share the right in Carriage, where we it our gaining and teams the with the

Operator

ROTH of line the Partners. from comes with question George next Kelly Your Capital

George Kelly

left Just you. couple for a

but medium the sort just your look of as growth marketing the you're sort those either discussion good over of like and maintenance first place of thought term? a any feel a the you the of is understand different one, far investments, corporate I'm as and boosting CapEx if as around corporate you So in function spend. IT, I change out or curious

Carlos Quezada

be inventory We're the we're it $XX the be, expectation million We're growth second the no will evenly growth it's higher it that's pace development on on No, is and on great significantly million, which maintenance, between thinking what to of than kind see. around probably we that $XX more thought executing quarter. would right? higher side, cemetery through a in split at level that on and

George Kelly

But really behind adjustment take it competitive how impact and you is next that quickly just curious of pricing? tough And dip, -- and I sort understand, bit, on what's competitively, in want you environment you everything is suppliers with to pricing? understand And question that. of dynamic make the things. then what's field -- environment this margin? I level covered and little the and the guys your a can kind So pricing it's to dip don't far a there's family and the EBITDA but as a relationships fluid been the as slight

Carlos Quezada

of Well, make easy. any are doesn't longer moment happen. very It time making any terms it's changes in price that -- -- to take execution,

are the that However that, All community decision a the takes more particular bit The or making what they're pricing business different. increases the was is different. time different. and analysis right is have one the the and they perceived Their the sure they're in, serving different. that's received -- Even also that demographics are little for business, community.

one-on-one call heritage. of are -- increase to conversations keep What related taking we that created relationship making hurt your earn are well continue us, to analysts your and managing this to by trust. could in the families? past have we to to the amount that here the and that we or We call relationships the their can to with because capacity want prices? so [Inaudible] so that is you they serve families tremendous And that led our that back build How much how come what partners conversations, those having and much

that could price trust that not a because able very going up everything, much on them. we sensitive families So how right? prices, we're keep and been can put couldn't about we to put we and else change back have back, just then somewhere However, end destroy big lot also enough but

is fine So that thing. that making the sure right doing in balance we're

we little went increase. if then structure. we pretty to we and react relates pricing can test, as a we much, we bit below, go can too quickly, But then, can have our to Sometimes and decrease, we it

Mel Payne

last was Look, Mel. talked of for it human the miss pretty reading long. it's something psychology by and just psychological is a XX tendencies he And covers Munger Charlie And behavior. misjudgment, of again, night lead to George, different about that this I hours, couple

The their and managing manage -- witty margin. very reading superpower crazy. manage them changed or first beginning gone there the how long, it was years again the laughing manage price But very he's our one last all over the think one was, partners we how was the first or smiling, by in-depth pages like of incentives. of writer, could in cost a on how that was X and and And at wife don't of guy. it And incentives. so end to incentivized 'XX are superpower to could our products myself how But this, incentives was had was and the was tell think and they changed I my in individual X at by far, 'XX, services. laughing to the I longest starting and one, they them about We the individual I what of

so X and know because as and a helps And and you're if have We like need market seeing as are revenue, standard They mentioned absolutely, looking items, goes a consolidated right on team have now. analysts layer -- Carlos others. increases of that are far, no. that price at those have are and have Peggy the financial this what's by table know her range. increased and going they to they businesses, within consultants, that's they that not we at on which good to on what share, the like got cost is that list. manage their we around But revenue stay business, increasing, where not the to Business above, this if they COVID. the they revenue then

your to increase if are have increased. prices You prices being

the as you long competitive getting keep As share. market offer you and stay value the to

right people on super it's of But is I So control this power top think initiatives because miss we now. don't down cost most those have cost. going the that to incentives

same the are have if there's with to that do range, increases way keep grouping price the We portfolio. revenue no have they growing gains, to other in managing and share business which across bottoms-up and through to market other simple, superbly every the their they manage partners, is a margin who need. incentivized all to the Very revenues it, support

them we talent pre-needed. not in power. they an have right of their the -- like the why pricing power up. place. keep therefore, want our of most get the we You That's funerals, deliver have comes this value environment raise XX% can been when They will pricing And the to and

George Kelly

That's me, Ben, what end? then one was just question. share the at really quarter for helpful. quick And last count a model

Carl Brink

Great question.

[$XX] little of basic just million, So outstanding shares XX,XXX] shares diluted [XX, over a total outstanding

Operator

Money Our next question comes from Barry Mendel with Management. Mendon

Barry Mendel

the when hired costs you months gave did not marketing a ago would be that what marketing expect? you you some and But thought better when expense it's are about there the your next last all all, in that were not you decline -- of in the that can than I first give of expenses I that of why there. forward guidance long-term the would out X mean, guess have shocking this you can on -- idea there? thought these One, an outlined understand questions. quarters, X for over this Xrd. new to outline of secondly, me And Couple XX% I kind January in I outlook you X quarter guy me exact increase

Carlos Quezada

Yes.

to we place. initiatives release going heard full these that if we So our Alfred, when you put XXXX year, announced into we are February back go to for

a Of we marketing last course, at which team, Also, going start to close we becoming those to going don't have certainty had right that's stop with you're look not what where level, pretty we're months. going the to the just build level we be and that's spending to the we know that seeing to should what time, what somebody over we're a helping bringing plan are and X yet, companies like, new start cost. the executing, XXX% then seeing, of we now. to have marketing these done expenses savings seen those third-party And now at cost and overhead field

these But as efficiencies, then we grow As we see over our those because to will an marketing, expenses we'll that presence our continue on organic revenue. see to centralized be from and of the growth the diluted continue through revenue campaigns. perspective digital benefit see in dilution

happening while pretty nothing to And the and and Carriage. the there global at thought really benefit to things do There's Carriage. of investment, but it you bit resiliency some it long-term we for a strong time little to forecast do, the for right tough putting shareholders the believe industry. This now. do about right want it we we we thought, is uncertainty, we is of so when do right why type team, strong the type investment and a expenses, broader up team pretty end initially And the of thing is did very up that's to these than never and of feel was some of tough are this And future foresee we is a the right

Mel Payne

So back, the at made never done all it. -- Barry, a Mel. acknowledge put of then beginning 'XX, time, the have before out. kinds and is this overleveraged. The COVID I at went first down. a hit 'XX scenario I freaked I and mistake. the were everybody We X-year did I Looking that negative of what I things Look stock out it And happen COVID. was that bankruptcy. even was of said That beginning

'XX XXs a through or beat low So then, and we one 'XX lot. whatever high went scenario XX from at through little so, or X-year the by a maybe And point. we to

multiples scenario out then pre-inflation, And environment world then based so the this ranges and that was the coming And mistake pre-Russia and it, I on putting and year, into the changed. putting on made price X-year all some that. pre-Fed, all another

like But Buffett, sure the So me would they reading own a mistake. want mistake. shouldn't now. saw my I'm done did right Munger idiot if I Warren I it Carlos I to lot and stuff, Charlie made and think I'm and to an that. of a what tell I face, you have I

than be I'm this for anybody I'm I see is much doing. do. we the out the think who Company the in this the is a not selling to there. shareholder right short-term. the I And a bigger thing buying opportunity great out way people, think world else for

Barry Mendel

people the in Mel, there I X those appreciate marketing, -- though, got what out. you you X the pointed people? that. Can outline What you've expense for is as annual

Carlos Quezada

What's about the You're talking from expense XXTH? their the May total on salary?

Barry Mendel

with more cost total because other X I a the people, -- came head when the guess, Yes, But hire ago P&L out than cost of you it's more thought both. was you Yes. people or thought that than marketing obviously, a guidance? you lot of months they known factor. The you the

Carlos Quezada

Yes.

really consolidating increased level. not we we're But overhead to digital overhead overhead one their So region main the level, the experts margins AdWords piece, so, and that the the will Google those the we to those is sure is have main they're In make while salary, expense see on level at presence reviews see our level. here focusing SEO grow on even we the field the at per and though by it expenses at overhead field X that somewhat strategy. related -- transforming expense region expenses at and doing the

se salaries the X And on reflected so it's of see not the months, strategy line, the and strategy really execution our increase. per last over plan what right you is the just overhead an now whole marketing and

Barry Mendel

XX next in any months assuming you month XX the your benefit over outlook? Are

Carlos Quezada

certainly about see. to to -- go be getting not like Barry. weeds this team. was same next there number X exactly quarters. exact ramp started what -- then It's in we some right? specificity to that thing think The the expenses, to from see these we the didn't like like. be and going put And look we're to team overhead same not right, -- So step forward, look didn't as going our that assuming expenses we're have Not X him and Doing we the months clarity us. to Right. this in of of there But technology with think to really over we ago, benefit, at to what to this, for Xst Rob time the going this into change is we with with what in April, of this have we outline right, what it, and here it's his the going goes taken right? and is is -- going changing -- up

Now we do, there. and putting now out we're this

Mel Payne

lot about I for enough yet, of know 'XX, mean but XX Company, of it, not I if ago, a big more, been is at time. to back end anything you've value Yes. not especially long now go I years the way And the the know you everything. know a supporter didn't look the I a Barry, and

to recommend next selling. in If really here I'm maturity not how how these lot. that balance no years back today. go XX, up of this we're the I'm we'll X.X not a -- have office moves. of don't for I the down XX%, day to be through the That's to years over about that. next the senior a notes. sheet we time, came And a that's much know know and 'XX. on as surprise to I thinking but am do around home our want own I our to to you we hung until 'XX, X.X get the X, I more the and as I And X.XX. pay I leading. Carlos over I'll is you now, you next Over old XX% yesterday you're to or were the have ended short-term got that and you the meeting But end or 'XX We if doubt at are, in if just that XX% something. and

getting allocate we better, Company through then, and the will is how go the be on smarter getting smarter So going up, cash we're and to free it. flow

capital Now under decisions an the allocation lot allocated have the is later Carlos' recorded surprise capital of time. will But has that all been other that category allocation leadership make I more as value a this expense. capital accounting over

'XX. excited are period, we And which so year still I next -- can about really here by we what do the X.X ends in

to are be end $XX.XX. price will the on at that All the stock cause us ‘XX the of performance incentivized creating by of

and Company not future, right we revenue our at accounting to and of time. and The over try the will we'll which, not time, looking how it. the opinion, expand in I'm may lot Company and will of to a the my add not but I'm about better price. multiples -- we in how that And like going overnight, do margin it, metrics at and better up our do, But do at going we do things and go think expense margin to organic our valuation as that's gets are. That's thought, the what of you the the do. long-term that saying we're things than Now right more stock look an going we'll what that's it. the manage to we're we're Company, in We'll is

Barry Mendel

and disagree I with understand that. it, I cannot

a guidance, maybe have I of say. -- there just was today, less think been there there might shock you should a some so was

Mel Payne

understand responsibility that. take I Yes. for that. I

Barry Mendel

next growing the They year but guidance, margins -- But mean, over sound Company. exciting. better? to companies months? these And Ben great you've the can improve I that acquisitions. or a great is you're this the these Mel, And towards the margins XX is, That's are how dilutive I answer job in think had question an other done doing the forward opportunity it's full I to maybe X there those margins

Mel Payne

Warren straight we 'XX again Warren letter This Buffett -- learned shareholder started is in not to of that. easily I've this my of And what out do. X, talked January speak competence. before. growing the would I is can to not quantifiable. I Yes. that a circle criteria, about strategic of using And say, as my 'XXs, that's

lifetime Ben this last which for, [Inaudible] of acquisitions. markets, to made are high-growth, started of the And and Orlando We very there, I've in few they're we've our And excited of been this I but on to record, myself my now made always plan I no the back we brand presence. a these all was we strategic when years And at other few, criteria. and to been going what and in going over I'm We've and again on I we ROIC using XX acquisitions And is back both of in doing concluded made X X in learned so had die and 'XX mistakes -- small have project, track a growable. it's are has because market, never that where strategic and these market. January from the wanted a since presence big never large grow we use these looking new to is never we've mean market. we've all them. learn in the hope

them, both while. so them, you close the these it a of integrate And year, X and because to in takes once have you

Our model unique. is very

get You have managing partners to the right.

much like seventh we everybody series. the to of the that ninth, no turned loaded grand have ones 'XX have out to runs the game basis overpaid of in slam But the You -- way in aligned. doubt, with employees the be the get bottom for thought I in no-brainer home

their within X-year will exceed in year. be And so some And to frame, it point, the won't margins, turn first margins at out these existing the both fantastic. will the time but portfolio be

Barry Mendel

your expect your you average long-term, do above but be to margin. them So initially, to margins, dilutive they'll be

Mel Payne

really take fixed cost individual a the inherent makes rate, the Absolutely. And compound at that's -- X what XX years like revenues them Because in that's leverage or year of much available over no-brainer. higher operating businesses. these therefore, is with these market high don't and the brands I it, which will a in advantage Carlos the to over There's And a his mention with that. salivating yet. one, what team, and in the we do want disagree are don't with cemetery it, can second fantastic. and he fantastic

Operator

of McDonald the comes Chris question Kennedy from next Your Capital. with Instructions] line [Operator

Chris McDonald

of what have spend estimate an marketing today, share idea around you corporate is so case the in investment? an marketing Can to field tied just we the business total the the level

Mel Payne

now, August to Carlos I a budget can we Again, I of I be these never managers model, what that margin don't that. first But before tracked board know. related are entertained know used and costs this ideas best don't offsite -- created that. was to we if XX management to in and on used of all white of standard. we marketing all we to to I We've performance standards the and kinds answer right going I cost, I tell you other a And owners number. down, know that invited 'XX, former when all should related brainstorming this

said, standard, one partner, we it regional them, Some a have remember Council managing an of Standards and and we I was need pretty advertising funny. marketing think marketing standard. I then

he he how losing because that and know said market he share, get Now was to it. didn't

going he's should say to So that standard. be a

doing made the a never getting we right we and made So talent that locally. standard, the in things right

to will mean, must that we know I business. how locally. know offset I much a material, what takes by honest, is I but get be place as business it over time, market So don't clue we spend be the centralization consolidated have don't

Chris McDonald

And corporate high or a to then period, basis I if of percent as overhead as of about a quarter as level, to growing points roll XXXX up XXX just pre-COVID twice as XXXX, spend same very going revenue. from back percent -- fast a so to the revenue, overhead just compare

Just Are at just more, bit, this this haven't point? on at there you Are you overhead what mean is can the seen little that we expect belt and a a little costs? places with typically leverage attempt growth point other to get would overhead leverage there tighten we these here. balance to something I

Carlos Quezada

is businesses adding and I areas. our in to many services pretty pretty at I doing What where we're Chris. you, now a right new one don't it I the businesses how the Thank overhead, to efforts And as more. provide all somewhat somewhere opportunity, function serving I see around to This really centralized of comfortable as maximize different marketing portfolio it should Carlos. do the feel to we is Yes. is relates mentioned at of that be. Carriage adding answers, in that of our saying can we're ultimately, see them. the we're services more marketing level. the XX% much,

detail to come you tell and significant. will And but so numbers you we'll offset next be and value the that creation tend now right ready I or how be for those the value it. just get off will believe don't savings so and it that release, not. the my that can added estimation, based much to that will from see be will of have efficiencies I own that

Mel Payne

I Well, years years, I And want another including, the as our you. our have a we benchmarks are great frame, five now frame. achieve. time time years. put X.X That's how to out time, doing okay, we I'm at let right time journey frames should time a think -- benchmarks, five is frame We roughly the about that one And years a for thinking, me a good-to-great is and and this certain done we X.X there which just vision next question, reflect this. were lot, a over upon

use about is it's lot the So And I the also as here, how has think should Whether overhead, I it. this it don't higher of only over years get about way years. big those and incentive that we That's at for broadly been controlling margins the performance business of think and portfolio right versus at years, comparison. overhead percentage otherwise or a that it. would last them. of that highly eat, comp, way someone, including own ago, grow create XX we Because it the we thing unimaginable things to And it. no faster over XX stake format don't do here, from They years and in to speaking them of a can destiny their over a their the allocate don't don't consolidated They achieve time? got control including really really you wrong, way allocations. to accounting field in I our as revenue how are them the businesses, eat designed buy sized. across trend They is if expenses XX reports they think, this control to do time. that who's support lot today it's performance or their not We help to there's are to SEC segment and a XX looked can that, levels be and portfolio our that small medium We allocated the overhead control businesses. you reason it's

up. leveraged. gradually, and way up rate. grow will field as -- go get margins up Our won't they way, gone these at go up. But level they have And that going will I keep the same think The locally fixed do organically costs we

in little again, XX% over the you over more up -- I XX% to profile down between this of will again. And XX%, will businesses say, field over somewhere and consolidated it would looking step that's XX%. quarter. to of and the then to come revenue. think So than a we total up time. that the the And now keep north down think out margin, trend. XX% put a to jump time minus a would this I leverage the come XX% EBITDA and that overhead, now. for The overhead and comes gradually We're time thing ought to than concept think But plus EBITDA and overhead have margin, -- gets looking be overhead, even is off bring We're field that go growth though I margin over field higher or had that's gradually the will overhead if in EBITDA rather will growing out, to what just what we let's you that lower proportionately

Operator

is to over back now my call remarks. pleasure It Payne closing turn for the to Mel

Mel Payne

Well, it's had support. a everyone's questions. great some call. We great appreciate been We've

safe. into forward quarter, better We this year. getting our And next great of have progress look you. and remainder to a we each Stay fast. Company reporting Thank year

Operator

participation. your This you the Services We second Carriage thank earnings quarter concludes for call. XXXX

disconnect. You may now

Carriage Services (CSV) 31 Jul 222002 Q2 Earnings call transcript