Carriage Services (CSV) 15 Feb 182017 Q4 Earnings call transcript

Company Profile

Participants

Viki Blinderman	Senior Vice President, Principal Financial Officer
Ben Brink	Chief Financial Officer
Mark Bruce	Chief Operating Officer
Mel Payne	Chairman and Chief Executive Officer
Alex Paris	Barrington Research
Chris McGinnis	Sidoti & Company
Scott Macke	GLA

Call transcript

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Viki Blinderman

Good morning, ladies and gentlemen, and welcome to the Carriage Services Year-End 2017 Earnings Conference Call. All participants will be in listen mode only. After today’s presentation, there will be an opportunity to ask questions. And please note that this event is being recorded. Myself, Viki Blinderman, Senior Vice President, Principal Financial Officer; Mel Payne, Chairman and Chief Executive Officer; Mark Bruce, Chief Operating Officer; and Ben Brink, Chief Financial Officer will be on the call. the yesterday after after discussing which year-end be released was the we’ll Company’s our results XXXX, Today, market closed.

followed the formal that statements associated we be today I’d call press the release its management by the our like posted yesterday. Today’s Safe and later filings through with an archive Private is have described replay the question-and-answer press more made report which website supplemental Company’s with of on with accordance and to including XX-K XX. our in We And fully Reform available are note be period. for Harbor financial the being forward-looking during information recorded, call statements, on XXXX. The your and risks Investors make Litigation of the website. found information Please of will Securities will page audio remarks on will begin our with provision conference release, again the these on February Form the filed from call other can distributed call, in SEC. attention Act to tables

reflect factors to today. the are duty Forward-looking factors this in expectations. Services call referred occurrence information after this updates stated to events, based the provide to to Carriage of assumptions of Carriage available other on date statements to statements, conference as or Services expressly the any circumstances on or or or assumptions disclaims call forward-looking changes these of

the are of measures directly to such together the SEC. GAAP this with the for most we opinion financial Company’s release morning’s and measures. will in of call, filings reference comparable the historical addition, measures, regarding non-GAAP In performance reconciliation the the periods, press such course certain Management’s included with a measures of during usefulness

Now I’d over turn the to to like call Ben.

Ben Brink

Viki. you, Thank

declined first in that the four increased lower our the margins linked X% meet declined to EBITDA sales results later to made in while to of and acquisition earned income did XXXX. Field EPS Overall, cemetery our due to to preneed investments XXXX trusts consolidated expectations in the XX.X%. XX.X% income $X.XX, increased adjusted declined million metrics XX.X% Higher declined $XX.X we negatively and people, in key and cemeteries not from diluted revenue businesses can claims of and versus be all to related decline acquired leadership year. adjusted series teams. part attributed EBITDA discussed at XXXX to expenses XXX consolidated of net quarters, adjusted expenses large operating largest our decline results and higher adjusted our high-performance $XX.X Our changes Funeral The financial our $XXX.X in XXXX. throughout cemetery our affected Information own property operating perpetual reported and million, expenditures particularly, EBITDA as of margins X.X% consolidated basis also primarily our declined and factors healthcare Technology to reduced second results during cemetery points Development The to overhead consolidated sales Corporate care current in million,

pro to included were first and year EBITDA in last trend forma innovative XXXX. quarter, acquisition margins rate was we from X.X% of was XXX introduced businesses. the growth revenue a businesses accomplished new in reporting our that number revenue over of revenue fastest we’ve integrated continue last Cemetery Home segment Segment trends our X% two fourth These year-over-year quarter for a trends three the seven X.X%. year, seen Field Field been of we year-over-year. half trends improvement in XXXX. while disappointing, increase In growing While adjusting grew following. consolidated was Funeral in we results fourth part in Carriage our also the of XX.X%, revenue of grew we by in of It’s On that points This the since XXXX, for segment second XXXX XXXX the growth has growth six sold quarters. improvement highest an Also, XXXX the basis, contract over transparent contract new grew positive and volume best to we by in quarter, the same-store and second the versus EBITDA volume Field and increasing X% the Funeral and fourth and cemetery of the operating the basis the improving and EBITDA our point acquisition fourth in quarter. and year-over-year note two XXXX. businesses were the were our and years, over Funeral The X.X% the those acquired Field XX.X% improvement versus included operating between experienced part a third margins X% therefore return basis Home quarter, by important with EBITDA XXX

record per forward Jobs Tax benefited an and recently Act. important our country. for diluted $X.XX share Our of Cuts $XX.X to reform credit Tax million GAAP the passed step related earnings is from legislation

value which to Funeral to created and it our tax directly opportunities will reform that investment opportunities increases with and also the and Cemetery best the employees, affiliate share on from shareholders. Specifically available we our our of the us. Carriage, Carriage vision remaining enhances XX-year execute to grew communities legislation businesses. these to creation ability to The number value to independent The are in

Going effective rate and forward XX% our between expect we to tax fall XX%.

of turn approximately call further discussion at Mark For for to the at over now the of results. end XXXX, operating our range that I’ll expect currently XX.X%. And be we to high

Mark Bruce

Ben. you, Thank

the and Ben XX not for shared, did results months the months our consolidated X December XXXX performance. high for XX, ending As expectations meet

our to acquired by our continue continue Funeral operations encouraged sales Funeral However, Cemetery underlying the in throughout be and progress we trends same-store and portfolios.

the number Standards contract Operating is share Model of in which grow served technical focus market particular is business Let in main we referred families It a particular the share. Funeral same-store sense in for a a me some of which of percentage Same-store color. The not to as market. have Funeral provide to operations. market volumes,

an We that by The it or business a have is years. of is businesses three is growing, indicator the in families over are stable whether share and market business average determined decline. the in contract the learned served last volumes particular of standard number

leads achievement served role For leverage performance out growth that weighted led, of crew sustainable Field higher operating XXXX emphasis example, well share is is families volume XXXX. positively the in growth and XXXX, when on for the dollars EBITDA having the the volume of in most margin. XXXX, Standards in revenue market in XXX% of a business of particular average place XX% it margins. every it high We the and is We the and operating to on number in believe and standard produces in because contract people business, in right drives based growth the and market share and possible

months XX, volumes X.X% Funeral increased three Home and same-store December the revenue we by contract XXXX, For ending X.X%. by

XX was months look our by and of increased execution December revenue the X.X% at which a principles Funeral a how volumes perspective, statement, From mission contract this our by we same-store For we performance X.X%. businesses, market guiding Evidenced XXXX, of is same-store share Standards our result to ending strong for year Funeral In XX% Model. performance. of Operating recall share we market of XXXX was standard a XX% standard annual of Funeral our XXXX. our Standards and achieving businesses annual by compared achieving XXXX, same-store record in XX, businesses

benefits revenue not Home the into increases had adverse For we margins. XXXX, X.X% general and EBITDA other same-store the an Funeral short-term, salary EBITDA did our and XX same-store Field and months insurance convert impact ending In on liability the December Funeral to XX, expected margins. expenses increases

by previous de-cluster benefits two markets, we that partner. of a or and may single to managing grow been same-store Funeral to to decision to XXXX. we be share salary We EBITDA decisions previously and we businesses and made that understood XXXX. in we with and recall impact volumes discussions, short-term is a miss, group that of market on a more XX our performance businesses managing the high-performance to strategic And led businesses investments, short-term, have expectations the margin these standard business making and to part partner contract consistent significant partner in be revenues. overtime you de-cluster businesses a we expected may As that from standards added we into managing in trending believe more as In is of impairment introduce EBITDA the the work to Acquired had in operations. Funeral a

fully As we not highly concentrated was acquired best our Standards three and Model. shared in in Operating weakness Funeral integrated acquired Home the under our being XXXX in portfolio yet businesses year, throughout

best the basis in began Field XX, December the ending months EBITDA to demonstrate local continuously more of three to best There’s XXXX, still peers, the XX.X%. Funeral of and leaders measured the performance the standards our internalize, these to work practice point businesses do being much and characteristics high-performing performance. improve these XXX contributed improvement acquired now margins For businesses to against being is being as for

continued these Cemetery XXXX. in We’re encouraged by expect improvements performance and sales.

months XXXX, X.X%. field X.X% EBITDA Cemetery and For December Cemetery improved same-store the XX, ending three same-store improved revenue

by more we’re Ben? XXXX. do, there’s in and performance to encouraged continued Although, recent performance work improvements much expect

Ben Brink

financial securities. to income relative overhead income opportunity decline our from These year, was to revenue and withdrawals our a leverage Overall, due we have by strength a the and saw high-yield in year. growth revenue for were own securities value percentage portfolio exposure negatively bottom declined overhead during our to and more in Our coming fixed believe decline reduced We the end higher in continue of great slightly asset total the the XX and return our expect the year expenses line. – earn our Total to the points than changes to negatively XXXX. in a through percentage we the as X.X% revenue Overhead We’ve of long-term care to the directly revenue $X.X year XXXX. this we that structure significant the a acquire continue individual of XX.X%. $XX.X to in not revenue, allocation costs markets Cemetery performance for increased our of perpetual opportunities improving as our Cemetery trend financial of in million progress Throughout was into impacted organic basis to trust of better also this equity take million overhead particularly, expectations strategy discretionary XX.X% certain revenue in our overall funds. to change impacted a the portfolio. platforms the our reduction accrue at fully decision financial to our made as overhead year overhead

the our of for business. based the discussed times, X the forma was facility top where leverage Our operating year-end range comfortable pro we very feel on previously credit contained calculation in in our

to is leverage intention mid-X operating next XX months, months XX over closer to through Our the to have primarily fall improved times performance.

We have acquisition to necessary strategic on flexibility to liquidity financial continue and a execute our model.

Colorado. included family. to Funeral in team his I F. to Floral Dalton the Funeral Viegut Home in opportunity announce Heath fourth at Viegut are Tim take seven the New three pleased Longmont, We Park, quarter, Dalton & and and Levittown Beth the would teams to acquisitions Hyde Home like Carroll-Lewellen welcome to team them and which at Homes this Carroll businesses. Loveland, York. Funeral in Carriage Cremation New Funeral and Thomas Dalton Dave their Park, Williston in Park, Hicksville, Colorado. at

years consolidation our over these at on our industry acquisition high in confident pace remain the in first-class level the opportunity for increased about to XX incredible excited partnerships future businesses. with our strategic ability next model. execute a of We and We’re

intent. We to increase XX% $X.XX, include does The a operating from can $X any EPS rolling legislation to our trends. increase outlook. outlook attributed Right This and recently not letter four currently outlook of under diluted adjusted Roughly are enacted reform tax increasing to acquisitions be quarter previous current

we We timeframe it and acquisition if had do our part for of close. intent of outlook as third or will not quarter in have the not closed letter on on when have the four announced quarter a rolling fourth currently and

our and tough our make were a XXXX in work our made been across of consolidated Carriage’s’ history. company XX-year true best commitment disappointing, year are decisions to results to lot the ensure we there’s While certainly XXXX hard to

we great to believe of As in evidenced by the quarter, up XXXX. many the the changes has us we operating results fourth XXXX that have set made for

at excited here remain reporting look throughout the for year Mark? and to forward us of results year. our ahead the All Carriage

Mark Bruce

Ben. you, Thank

managing Now partners my I’d and like direct many strategy to vision, talk XX-year our call X-year to comments and plans. X-year today’s on about

theme for Carriage Ten individual our of the operating and Year managing support As company. to honor each leadership and late Principles The this their and of vision, Execution the led with mission and against visions, keeping become for road partner limit statement, custom, a business locally strategies It’s think the company, will to announce with each in on peers strategies operating high X-year Acquisitions. defining terms High possibility Each locally XX-year Our of plans. it’s X-year Imagining team Being and These Heroes. Services plan XE Consistent Best’ three Now the guiding developed, supported across my Performance with Business! we locally Leadership, this XXXX: performance I’m as and high performance announce working in high-performing executed. ‘Being and our year. principals Standards Guiding visions, business, each strategy the Vision map Strategic locally and plans and Operating The for by Shared performance idea began models, the pleased Starting XXXX, is that business. our one-year X-year for without our our in Best XX-year Standards

Funeral The Concord, For Curtis Maddux-Fuqua-Hinton Award. Homes; California. Brothers XXXX Nicosia, Pinnacle Tennessee. Chattanooga, Fry Of Kentucky. Concord California. Ouimet Chapel; Michael Being Ottinger, Best Shemwell, Chapel; Andy Funeral Tracy, Service Hopkinsville, Memorial Matt Funeral Simpson, Heritage Home;

Funeral Crematory; Home Dakan Miami, Hauck, Tim Florida. & Home; of Funeral Vinton, Funeral Jim Binion, Chapel; Conejo McNary-Moore Home Kentucky. City, Steven Funeral Bill Memories John Fitzpatrick, Tim Service Shemwell, Borselli, Ashland, Crest; Home; Idaho. David Pine Mortuaries Park; Funeral Jason Lane Keenan, Cox, Cremation; Kim Lovelace, Florida. Home; Home; Charlie Georgia. Verdo Ft. Werre, California. York. Fuller Brad Ridge; Latham Niceville, Metairie, Alan and Funeral Keenan Evans-Brown South Ft. James Home Terry Cecere Funeral Steen Directors; Mora, James Rossville, McLaughlin California. Cremation Byron Service, Home; Ben? Rogers, Louisiana. Home Funeral Home J. Kentucky. Coast/McLaughlin Martinez, Emerald New Brian New Funeral Caldwell, Donohue Florida. Pennsylvania. Cremation Colusa, Funeral Funeral Funeral Funeral Naples, Greenwood Home; Fuller Eagan, Stanfill Camarillo, Elkton, & Louisiana. Lotz Home; Homes; Luyben, Miller, Metz; Kerrick, Westbury, Memorial California. Sun Justin Cities Massachusetts. Mortuary; Naples, East; Downingtown, Orleans, Wayne Florida; Beach, Service; Funeral Bass, Funeral Garden Sue Florida. Florida. Walton Myers, Springfield, Virgina. Harvey-Engelhardt/Fuller Twin Mountain Funeral Terry,

Ben Brink

R. Costa the Milford, achieve Jeff Charvet, year. Best Joseph XXX% Courtney managing Canal West Brevard of Home; Home; Award Spence Winchester, Standards Hardwick Richmond, Hardwick, Cody-White the Bryan Home; David California. Funeral Zanesville, Being Titusville, Ohio. Funeral The Funeral Connecticut. North Ohio. partners The will And Contra for DeRubeis, Seaman, Jeff Group; Dwayne & Florida. Service; Funeral Newkirk,

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over to Great winners Texas. over Nicosia, to grow time all Danville, Terry, Downingtown, the Our turn Valley; Mel. their Home; who San Schmidt Michael And the Homes; The that of James business And winners this recognizes J. I’ll this Jim Good Hoots, year. to Funeral Terry Congratulations California. it Cindy frame. were with Chapel long-term prosper Funeral Pennsylvania. Award individuals to year. able and finally, Ramon Katy,

Mel Payne

wasting very the the explain difficult ends. is Well, two over never Ben. comprise have Thank and know XX Recognition because highest form what honor these has no Performance to lead to Great But last and It number place time. what just, for Thank Heroes learning Carriage ideas me you, out this years Thank you, an culture. want concepts there stuff. we is and at I calling out It no ago, and things. were the of indeed an important XX high-performance the in years company much Operating to too calls. investors call Mark. journey, a the that on evolution are nowhere, Model, Journey Good of you, learned be Viki. we way High motivation was been But to we I that told we or the time Standards our to have example, got for of budgets, this that these

from the So in we learned these power today and best. best the partners it all celebrating my an attend. their probably the called in and grow to five who over XX market combination He winning celebrated now to that as it, if had to reward was an This business. a managing Brudnicki. witness started we’ve had and in Carriage humbling closer world my ours. grow. people. have to at for party will business how for last people. then you saying now chapter. thought calling The at that I’ll a and the beginning Greg perform their their And couple of $X City, you a and when winning And out press in, by yesterday, the of case and it’s exciting learn the know can want next managing acknowledged exciting crash. the thing in years, they on two define was the call is country It’s awards theme were you experience on the these our this the million, just from it, we was get these of many unleash right January And to were a It best of of how both we’ve just still at you Panama event. to possible close the is best mayor party Good It winning recruited XX list easy City. long is on one This people just we to to yesterday. the attract employees high to mostly our for how the people’s We in Director they think just a joined and in witness. simply all he in a the had single X, a incredible their It million, XXXX market involved, company get And everywhere. the they like transformation and best in the join be level an name winners. first award, from of they chapter, the know City to not Walton. they’re he awesome he to celebrated their over And Mayor’s real was of over office. We people the each a came, a to watch. This listing The of occasion and history release employees. and hundred still thousand. ago. How stretch. run Panama heard get top meeting years of term awards like calling of peak they’re next These so in was you of the names that Great recruit big you is partners. we letter make word last of it businesses, had venture case, by and shareholder invited are but But standards in business call reward of closer Panama think history. unbelievable lives company. November years most that million to as recognize learned very council, of meeting the And board just the each board party. have the and Great do. leadership of are The adviser the supporting for business company they their name to people two and winners our recognize I their to from were me our $X.X XXXX. honor us life-changing Fort Fort best the He is Walton that I yesterday. for people member board birthday I theme $X.X managing to was another It they XX the to than He meant Greg’s Good year the owner so top spreads, former the wanted His this City that and close milestone to to partner in in is themselves, was to has company but of can see teams you for January to had Carriage also all chapter a talent then the celebrate than what thing exciting alive third so time is Panama bigger and X, our XXXX, not the It we end meeting you his top

what he have off. at Inconceivable, thought entire gets said today. this I team inconceivable questions. time he it he heard Now and everyone of been He end open along the ask tell or in the I for With the up With that, every the I a yesterday’s what to become years. board And head shook like couldn’t reality inconceivable dreamed meeting. imagined the his the have management complete XX runs. elected I’d for X will dream over invite the He and is to when or next because that was ride on it Board. back I him

Operator

Alex from first with Research. comes Instructions] question Paris [Operator our And Barrington

is now Your open. line

Alex Paris

everyone. morning, Good

Mel Payne

Good morning, Alex.

Alex Paris

last milestone. of set years. to been Mel, well best great year over the covering Congratulations, this point. few you like the very is presence it’s a a the happy company quarter looks your it Big a for the at – And XXXX it’s birthday and

Mel Payne

I’d say understatement. that’s an

Alex Paris

just I’m being Well, conservative.

Mel Payne

understand. I

Alex Paris

pricing, Congratulations three Funeral of acquisition. especially, wondering calls guess, was start seven with what Moving XXX within and about acquisition? the on related pricing has acquisition in on that bit bigger Thomas chapels couple consolidation then that, been if on the for reform I assume success per you on investment the these specifics. strategic five slightly, potentially will fourth I And what you you’ve trend Homes industry I These the in I’ll got F. quarter as with contemplate a particularly I’m acquisition return and tax would just the market? year. it future these pricing to have a size a closing little of acquisition made, pay M&A. then Dalton and noteworthy, any, affect,

Ben Brink

talking pretty consistent been Ben. has been Yes, activity for say what would from pricing we’ve is acquisition this previously. I

from this standpoint. a XX of The best businesses those future will where we on score growth. industry consolidation future range. We And multiples. will you in innovative driver reform system attractive the we criteria. the only X.X X.X help multiple our of we is in the be, the that And largest indicator tax that that are said, EBITDA think The be market. rank confidence times of have have We criteria where XX like business an our more drive at will to the large growth that times can acquisition, revenue

really really the over We more and tax going believe large ‘XXs. in to look at of people term and of play industry, role you days of the their lot of about years a long a consolidation been a looking history business, it. haven’t decision since XX they making the late may lot last are seriously the be our If a gogo reform

we does want returns way. businesses will these for Now what to us. believe it pay it We obviously, tax on don’t to we’re forward. the or as should to the have We core remain in a affect disciplined. lower you we these affect going move rate, That’s positive

make We’re long-term. any We have time the in at with to position the acquisitions. for right sure the not to make make where we ones right we right the partners want

Mel Payne

away Mel, so come at Alex. pro where look We This put would got we up multiple Field on business, with is accelerated in what of a the you kind a And trend went got north the a did the we’d you what it the we trend forma was, EBITDA, we from and I then XXs, get too we cases. then for whatever deals. with paid multiple didn’t and in many

in away up, perform terms to is how So key a buy the describes, with businesses. other add period opportunity The the and opportunity, that businesses, have population, the acquisitions better the it making to more much come have Berkshire limited up capital markets you their and rise you’re that in ideas. grow We market, deploy in in maneuver to going time on because stay of over to will future. you long want will the from like of definition, within small future, markets. By means Hathaway you’re in

of the help based on on standing so own And future, They’re simple XX competitive volume based experience, things the to in as revenue are our with find, not strategic these future growth. that in range ground. market, These the things years, growth the volume indicator the best demographics, over on financial with are boots just portfolio history likely the will commonsense of XX us criteria. criteria of growth

cannot figure out Tower Ivory an back in this Houston. in You

increase overlap, each it’s these say two XX let’s and reduce the better to rank reduce we’ve these say, We ranking. weighted better if now we eight, at let’s gotten And differently. And not it won’t we or look, seven it to so criteria weightings. in future the

innovating place. a normalized the within do trying in give Field managing and can what what We us partner the will once going handle to thing are EBITDA growth will define We future range. and the got Model know that revenue integrated if be a a continuously something this learning is we Operating better you and on under new Standards

This out. a the don’t figure it’s financial blows So of need actually, we people. – financial even this statement to mind

Now by multiple be what is I’m but the going to so person, at, that’s a the look strategic determined ranking. we financial

higher to That want low the also We in revenue if compounding because price to is be it’s our growth pay the good for a it’s business. price revenue will EBITDA And on if growing for in a high growing, doesn’t a going future. mean margins a value creating be fair criteria and shareholders. ranking by higher the definition, faster strategic multiple, creation the

we’re So know doing. what we

Alex Paris

very really helpful. appreciate was I that that Great, color

a awaiting Just demand resolved, is the could in think, pretty XXXX. there? release individuals I for couple generally, now And was tax activity certainty the optimistic – to just be follow-ups. there is pent-up of – carried consolidation language there’s Do what reform you press pipeline, from any in that the that think the more

Mel Payne

in under or what More really we come industry story, Yeah, about asking wanting into more and to say, people ourselves years. I differentiate attractive about hey in more past, out experienced are ownership away what It’s to the like identifying relationships, know to business great and it’s the a leaning months, people this within us that’s a about know their we future change and – can there, markets last What Carriage Carriage. are Corporate structure few developing say tough we’ve XX how us pinpoint. is targets saying wanting about pent-up back real one turning to questions in demand. look Alex, hard the Shawn that Team Development the more X are would over in to to the have is with so the an as and

that’s encouraging. So been

and quality the evaluating, and say to I continues we’re what we we’re we to to the and his continues and who and think the say Shawn release things in the the our that work and doing excited to us press who acquisition improve make future talking are team see call on activity. about

Mark Bruce

hunt been playing I last the consolidation mania, will other have whether Alex. Stewart I others. with late with long been owner much the say the been time team. there the his that, then the to been there And tax and speak. it’s in on reform the XXs been do I side a nearly have the team. independent hasn’t as out field sense has a consolidators, Alderwoods, as out it’s or very the being Shawn to consolidation catalyst since since up like and the on out been particularly so just this I I

we based think have been has and good feedback more look I with interested the got. alignment. me and The on not are. Shawn that their what the taking they’ve have value is that what businesses in people the that do at giving down The seller I key options people look for are So mean, our we of a motivations gone and ones, look and us know certainly

we’re out, pay If planning where get you’re won’t you for not you’re we solution, about out Over word would businesses the Carriage and won’t what group and partnership and not time, to good don’t think have a it’s the not prices the with good across selling decentralized both huge as price, standards. that’s want another country above high we succession low elite getting supported, that of a have alignment, in performance is a fair businesses sides looking joining have that and partnerships from and managed you integration are we but good good about win. a Carriage if of to

former the his about. and begin they different I likes anything our then on and and at have to prior learn think team come from about to done else so they all So that start a talked were doing it this and look when It’s great excited key to other owners Shawn differently teams and job. we’re people

Alex Paris

Great.

shifting the in segments in shown quarter the XXXX. accelerated in momentum these gears has press fourth release, Just the in

on horrible year am same wondering every season how that perhaps the under think country. the is we primarily well? the news and at cold the flu pressure, across across What’s I stores and to preneed the EBITDA. the locations I four the Home Are momentum strong Field Funeral tone this as acquisition seeing the referring we night was cemetery see rest general? business and accelerating sales in the You’re of of

Mel Payne

wouldn’t death really has it’s kind crazy on seasonality try even the time, I been of to Alex, when rate. crazy. a long a myself promised I just bank little It

of it’s January I the news. Looking what would it poor my rich. By of God, said, end you January’s and this XXXX at was crazy. oh on And hear again. I numbers first little mirrors mean happened I I I I’m year, my a in at the looked all And saw is say January, with group. the

five each now So, we plan a one business plan. performance believe one year broad year tell year pretty that Mark it ten of real the year can strategy, company year you, point a but of looking will ten settle the alignment is high what having I out the during the vision – year, that right good. having said see is in about we

Alex Paris

would get cold really normally have that I and forward pull Yeah. occurred. it just a flu death and

flu, you of some would in have second the strong there because half. be assume a if would and half one normalization cold So first

Mel Payne

ago. through the of was told We’re this pipeline beginning moving bubble not XX the about assuming is baby that years that

Alex Paris

And still for. we’re waiting

Mel Payne

want don’t of it. to just be part I

Alex Paris

Last I I Yeah, it. and get over. then will it question I and appreciate turn it

top at about talked comfort forma your the range. pro times of leverage You five

balance dry that do go could to see have see powder increase we You What before you possible to on your it that it is And increase acquisitions. acquisitions? more to net due down we’ll leverage liquidity? sheet make

Mel Payne

as fund say a pro activity we be generated of internally forma because we majority I free basis through Alex, the that we move forward. flow acquisition acquire on as accretive cash our will leverage and would

constantly broader the around our from say of opportunities at biggest is only the we we’re down What improved will contributor acquisitions – existing performance capital structure. – EBITDA it not recently. from but goal be looking discussion Our bring I is our really it will and our would made have around that here to businesses,

past of driven in hence heard and we around we we range. that for outstanding of convertible the have paper the the we’ve – and we do be changes mid conditions a piece lower We current pretty done really ideal not lot in for need our end activity the can note the the of market investors of capital. the have But capital you to have I and around by around into that it particularly tell work bringing our is were And about concerns the our structure most loud that overall down any have intention structure. options different open have been us capital clear leverage. very lower level from leverage, of that acquisition within

Alex Paris

Yeah, I hear within common cash although this flows. to that high given is carry the a industry too predictability of leverage levels it of fairly lot

Mel Payne

it us we in comfortable current our industry executing plans the we at, hinder that. this from this that at underlying level on are certainly running business, believe No, support the absolutely, of that and doesn’t strength we’re and business

Mark Bruce

company allowing mistake as it Just inside the a the a that the mistake over, but possibly more final I over wasn’t earned maker. and XX done. made over watch, I my that I as regret word can than call chief I huge on that years. boss. It be idea, I’m to I be have myself my convert that allowed to done no. anyone Alex.

And with so, be with. has that we will it to because dealt deal

I holding it’s think our down. stock

from And never stock. be shorts of before. the we the view structure next had We of will in have dumb. a lot We not shorts thing smart, a do got point capital

Mel Payne

simple… And

Mark Bruce

simple. And

Alex Paris

a well right, outlook. great you and even quarter All congratulations on thank very that. and better much like I

Mel Payne

Thanks for Alex. your support,

Alex Paris

Thank you.

Operator

with Company. next McGinnis our from And & comes Chris Sidoti you. Thank question

Your line is now open.

Chris McGinnis

Good commentary and happening additionally, Thanks call the always about what’s Mel. on one congratulations the recent for And your helps and taking experience to thanks think your in the my questions. morning. quarter Carriage just it milestone around the of for – and

sales just you market one the recent tied made Is change Just or trends the that is a or questions, on related around improving related really the to in Thanks. the that couple or Cemetery? in Cemetery. investments one, directly

Ben Brink

course and At what our to very the Getting at portfolio. years, then people believe entirely those Cemetery in parts we To these in over sales we pay feel we’ve Yes gotten our those take differentiated first the businesses, year. in your in made large very three, we point those leader seeing like right our Chris strongly than in for around that we’ve, continue it within them to that the inventory businesses made we’ve be Carriage, results. and time. changes investments successful best last significant operating portfolio. we the investments getting isn’t and few investments, related sales largest to We of leadership right place during Cemetery about see certainly place off. making And within four teams those the does

continue at the Cemetery return. opportunities. very we great is attractive capital opportunity things very, the to to those rates for about assets business is of invest those look a there One ample in And of

Melvin Payne

Chris, model I is know not easy out. this to

driver perhaps. just hard performance, three. easy frustration, right loose business, it pieces get in and mission risk don’t if So will That this performance time calibration the But ended like it high are of to you manage more and pieces have your and budgets, we about what on whether And when looks new we the cases, who turn hungry it cultural never find our what made did. the the have work and is Cemetery sustainable it, driving and is who driven, The to educated high But market-share company some so, so of find. the driven, I the of fit, not to have taking, in on when to quit we what. evolved, and on ends. what, who the mind, the every working Funeral what. more this was for this leadership, right it acquisition, you or then much you Since and blows you a you you the it’s Because which whatever. the follow how our it’s managed and businesses, as feel not being get the

Chris McGinnis

be you that revolve I then bring to my around of questions helpful maybe talent. just And had as overall? well. that guess, on are more of guess, I one, around, success the guess, I that just de-clustering, and would regions, could secondly, And I that other and there separately, kind

places but Thanks. Just maybe to that? you’re are thinking update can just just the you where are the us around some maybe at there of organization, level update it talent you about in sounded and kind more like always increase looking,

Mark Bruce

that answer to yes. The Mark. is is This

operating more do every is opportunity who. is in acquisition managed currently, have partners. have more do business managing to have team, more fairly around support we single an engage to talent We And we opportunities It we’re opportunities, than operating that. by more have as that. entirely the – We leadership day. have Yes, business one driven certainly we we

in now. process We’re of the doing that

answer the that So is yes. to

Melvin Payne

Mel. Chris,

in first group another July I I StoneMor bought Group X, Chattanooga. was group at they’ve so called a they in the had bought bought best. And was The group SCI, it there from XXXX was

came the so within where three, distinct quite Chattanooga, and the city, of Red cluster Soddy not you manager. One had then Bank, the the one was Georgia. business that the with but really down overlaps in Daisy these communities, in little wasn’t was cluster had they North-west So city. And one in Chattanooga in North

know. and I I He not all look, went who And don’t is we here. him kinds like Georgia we the don’t in it’s managers and this said, problems met that. He’s forced centralized said stupid. and stuff, all this different from licensing guy? So and and we’re cluster to Tennessee, that pretty do agreements had this scheduling all We and creates so of

him. meet lunch well, that I and and the dumbest I go said, let wanted with with him guy have to met. guy have me was I So he lunch

complicated. we more In here, who It March needs Springfield, that this did talks times, if over we’ll did it review over off. time everywhere. in it profits, turn big Every the The it and you will referenced one get be back I went the of that Well, help we maximizing and efficiencies. you we’ve we’ve break I here; revenue hey, we help. done said, it each article it lead in will XXXX, with is other an units. We business other leave budgets, the many did to organic about this article. the will needs not Harvard Naples, there, Florida; of the budgets. performance in I taken place rid clustered. the do growth if what is find very it when more time to And think into would be and which smaller, time opposite could you of it wish we’re we Roanoke; we’ve it enterprise do? was entrepreneurial done Massachusetts; will there guys in done it we concept I’ve going is I we’ll to free, manager but still And said you So him lose, seller. cluster

have that’s not We do businesses. in best and that it it learned achieved leads these way for the be company to performance otherwise to our never could

Chris McGinnis

That makes sense.

looks I obviously it’s in think up showing obviously like your numbers.

them. you in level the referenced And a to understand. hard organization, on be at comment that the beginning I on that you how company, you can the is names a I sue – may the reasons important. new also recognition. the you little finding little can comment bit be talent announced across the I at obviously, So guess, Thank may May give just just don’t talk at just then you. just of why a to on as where looking just want be bit know you you bring that the you’re very is about, well? Can throughout some at

Mark Bruce

Mark. Around the performers. who, high attract we

for which engaged on attracted best that so to are in talent acquisitions. the is against it’s for we have talent discussion, Carriage. selective. attractive and very everyone isn’t we to we get statement, the organization. talent business. that find same-store right the find competitive, right, the guiding only day acquisition those candidates of not models three The best the can a then do matching to very is is every we – have to that We This who and performers in it compete called that. said, right were it So expectation we acquisition as the the highly that opportunity very country. shortages we’re today many while we join want names standards can the peer we’re very of spent whose operators selective kin operating Because that shared, in Mel within when entrepreneurial, people high a new They mission the and are leadership, out What is operating principles that I our that’s strategic

Melvin Payne

said Yes. earlier, evolved. Like we’ve I

and just let’s So we constantly the we side, Funeral. standards Funeral the are XX% evolving are say

is standards. have achieve not here Funeral not like supposed volumes. to are sustained and the We over We these not there That’s grow high-performance XXX%. eight success. because you’re And to easy want success

indicators grow share. that’s can you If market that the you’re volumes, growing leading It’s proxy. the

grow to average have You contract. revenue per the

that So X% happening, is they not personal revenue. problem. revenue to XX%, a don’t, up If your it got they’re for for XX% or XX% per our That’s make the that’s is year. change go oh means Either says somebody average man the mix volumes, problem.

always a earn to wondered Now, these have EBITDA, standards? know in X% managing do XXX%. partner we in and I of employees some XXXX, could do you the the Because about up starting XXXX, XXX%, got

some paid. big there’s bonuses So

if in-the-money over You’re you go XX%.

the in higher from standard the it percentage higher of goes So the EBITDA, to the you Field XX% achievement, EBITDA. share your XXX%,

So we’ve on got up it, in the starting XXXX in to employees X%.

get to the So XX% managing to XXX% partner up X% the and employees at standards. of

how at our always and the back somebody and You formula. can Pentagon. ideas. And up if take a company we the in the In get businesses said, experimentation, these dumbest the that’s within come we unbelievable. a ahead years, purely your families, don’t to over are it ideas look, to best pride trying five percentages standards. the better. cremation better, with times employee schedule the not centralized every better all They and about laboratory initiatives standards being caused this this of ideas in then really hatched best do take do that, with everyone are great from educate mostly have went in of XX% Field to even XXXX, Those come because how they have financial, of to is reason, that And

value lot their So themselves, and of our they’re for shareholders. a creating employees

cash. So not success year last said, in most XX-year Chris. one strategy, a vision, just understand And what people support And year thing, our and award, but half is to then everybody We it. five just see our few very their incredible is this local growth teams for It you doing payout won’t year real, as best stock, plan. easy, company, vision them, and of of the it, value-creation and the when has Mark why of have don’t only is half else it. people Because real, all wants did five around do a first that year. we This and like done a to in for job believe them winning this do employees. shot

Chris McGinnis

helpful. I today. appreciate it, luck for thank very good Well time that, is that XXXX. you and Appreciate the in

Mel Payne

not it. We’ll are on take we counting it, but

Mark Bruce

Thanks Chris.

Operator

next you. question comes our from Thank with GLA. And Scott Macke

Your from line question is Board now open. And our next [indiscernible] comes Andrew with

Unidentified Analyst

Hey good everybody. morning

thank and hard First I want to all say appreciate you work.

so more ground changes could I’m you shareholder, fast that the were what can. the as more. made, struggling kicking if bit guys obviously looks newer the me coming little funeral But but the about floor a you I’m homes question. if level talk could quick in, a and about level at I or that which little tell like and is a a as were that bit learning Just curve up

Mark Bruce

It decluster speaking just more to looking was more Mel and is the in put is in leader and taking each of do. it. And assessing continuously for absolutely what to thing opportunities is right business. that leaders right businesses, every It businesses, the

Mel Payne

this in about the portfolio, three that talked just is You were a that our so acquisition businesses thing.

criteria. strategic is mentioned You right the the sustained know I the ten integrated. performance, have characteristics for fit, long-term this Well business fully once all

misperception. Now a this is

strong innovated mean and and developed operate under a has going to be franchise that a have you’re you market evolved. these and doesn’t standards able because to Carriage Just high-performance

it’s like, And sometimes wow.

want you mess to time. to a rush and line looking be has stress change, get businesses, with good we’re especially to the you And of to get will want So the are franchise to franchise. people. slower. rapid sensitive to up a don’t them don’t It know passage These you for the too you finish where by given trying in

just happen. And some together. in. this we’ve while, yesterday been the it a commenting joined on before so fit Seems was had the bank. or year right like they hit will integrated a they run. I two. sometimes and take ground And they’re like well trip; very out takes Others day sometimes they’re We’ve us

ago, over Some the businesses we five but years, make they bought that X.X%, X% didn’t of five four, increased years say, maybe the revenue compounded. they

Great. new We Good years. Let’s say, That’s business. share. yes, what they bad. $XXX,XXX cents to five That’s increased just for $X.XX increased EBITDA a not $XXX,XXX. we’re they didn’t the revenue is And over Funeral for. that to This an partner of make And ropes. with us some looking else handle managing in we to enough who the pretty was and big big been support like that, It insert have business somewhere knew assistant. had

case-by-case try be to some business in to it good up. it’s it we’re and a the destroying not of in solution if you have the great not of observer mess some We franchises cookie-cutter of So and did value and what XXXX’s, is us. that would these the join and

Unidentified Analyst

is just great, right little I understand way all Hey if I a it a takes for time. to little man, even the doing that am better. want it But

thank you very So much.

Mel Payne

They is anybody understands, universe everybody the about of our this expectations our term. short that clue is about None in the have that anywhere quarter. world company has in a nothing or in any Andrew, people company there no

Unidentified Analyst

that. That is great, for we are all

Operator

Scott And GLA. question Instructions] from comes our next Macke [Operator with

open. Your line is now

Scott Macke

doing this am time. morning I good everyone, Hey how

Mel Payne

Scott. Hey

Scott Macke

that the much how I term – and I happen some just starting And hope if range nice underlying little implies thank I the conference much strategy for some a of out about following made year implied third seem reprimand. of myself short want maybe what worried, next I four of taking that execution a is from EBITDA issues for year understand of of warning I’m revenue how nature, guide. a just from a bit And how of and that last you know that let the rebound you rolling this you so I want the rebound. us the you assumptions questions the tease some five guide call kind this question. but that I next to and point, quarter gods. up in little unpack and ask forecast the over my the is not encouragingly apologize the maybe was for to shot from set is that emblematic could acquisitions beyond. am perhaps can much to just fear the a they’re in – the of quarter,

Ben Brink

from we That right, back so what third a there reform. general, to bit of improved is in in is detail we and don’t is What improvement the is the much, Scott, to fourth in been that will what made three what history operating an that we’ve it tax to give related additional of I – and giving in �� Carriage third third, – pretty performance performance, or it a operating say, like the okay, a has quarter; side; of our little I third acquisitions in was a is out. guess, the

outlook to that want you results XXXX like put in if in it from would think that. our quarter to bridge there, we’ve build So help? rolling our about I thirds four Does that

Scott Macke

through numbers from work Yes. That’s those can very I helpful. there.

Ben Brink

into give to little on a hand this. how will I back And you

these our and about in a current the terms looks acquisitions they on number fit of going forward averages to and been size little businesses. activities average, have of would these these say with like calls of portfolio We with – acquisition our are businesses. I

Scott Macke

per contract average? company think EBITDA, I going about EBITDA deviate not home as from underlying in homes, to So, volume and margins it’s overall those so significantly

Ben Brink

Yeah, correct.

Scott Macke

at that you what think the over years? thinking, certainly mean, XXXX helpful. I portion it’s seems smaller in like happened needle? you is like move boosts XXXX, and time the be very and But extremes, the about a the over in business, maybe five then there unpack business seems were maybe with what going big just How do a a Thank preneed the Cemetery should it can but said. XXXX. sales, it next hiccup of five-year a it I horizon, forward, in what can that you

Ben Brink

You’re absolutely right.

So that growth historically, business, the our in five, the think of way revenue thinking our strategic we’ve terms until six about Funeral forecasting we is and In acquisition on when our year, over X% that same-store, just last model. we executing us about years than this our range, mid-single Cemetery, the long-term higher grown based acquired business – business, digits.

Home In little the Cemeteries, on more you Funeral revenue much but It’s pull side. we X%, above compound annual a Funeral versus to planning, So X% growth. are Obviously, long-term business. with the businesses. we’re sales-oriented a our what levers below that, have more

have revenue locations capital-intensive that We at team individual growth of sales each that business. our can drive higher. It’s a

about look at go constantly push I And really at to as The that they’re deep entire things that higher. encouraged investing We’re and and will sales more experienced at we got around developing structures, even inventory course our sales Cemetery weakness into planning to broken. development, say what aren’t overall, looking been And be by feedback missing support forced that is portfolio, that the the was things more leadership to giving, developed and Cemetery comment XXXX, business in our we to long-term encouraged we then growth what they time. need – we our got we look successful. is find inventories we from what’s our compensation a the Cemetery business ensure exactly take just to that, base outsource and are What side was the we and our about at regional partners than us experience dive we dive this – and rate go on that that that brought moving get And our our of we teams, have cemeteries, out this normal at cemeteries. around opportunities our and of wasn’t We’ve all – have type part, opportunities the happen structures forward. leadership that that in the new take knowledge weren’t anything around in same we look deep deep around excited compensation saw.

think it. we how that’s about So

Mel Payne

with needed we excelling what just end it. a here’s knew this Ben the meeting think, And we through what response went asked we now. wish been eight Mark as of is thought? seven, board, he’s a add just And five someone experience our the in His six, thought. to of what, I’ll I he cemeteries. in can lot wait years, a minute, to years, history knows he’s he a he wish change got everybody long the level going cemetery new partner that’s brought said. on high just regional that. he’s And a in and I months about us career around that. Not he everybody. years my do But I with worried I’d I he I so – at just five and in was, And can’t he I at level, broad that. I’d was a and years everybody asked come at yesterday team all made And the join says. I that and have now. them, they what five committed, us not asked believe I ago. when five ago, was, hey, what come else opportunity about said, this what is Because

of us. So Mark’s lot for time, do counting this he about a on what big in And guy have faith judgment Scott. we’re I can

Scott Macke

then think But business. probably at a Great. as that in EBITDA if five the XXXX. then maybe starting Okay. about as It is point thinking XX%-plus And that starting And But XXXX I margin I number years, get next to fourth me. that take XX%-plus and better for I’m hand a was point? beyond, I declined look EBITDA my all quarter. XXXX, XXXX, I the about a

Ben Brink

We yes. feel confident that, in

Mel Payne

Absolutely.

Scott Macke

the helpful. to numbers Field bit. similar Okay, I thank on than down question very Funeral you. guys the ticked which, That’s a want margin, little ask I, EBITDA a you better know

little the You about EBITDA Funeral Acquired of talked some bit a Home margins.

Operating margins from you the what Standards as in give have how incremental an should you embedded think about some and idea the what Model, If year. what issues we that about business? terms is rebound And of much the says in that last expect in XXXX us can of we

Ben Brink

Yes.

in and years even or So I three a of remain to terms this up But organic think Home same-store Funeral Funeral to is, last average as way would at can Field decline level a at you will that fairly growth, And XX% EBITDA same-store look move of dollar the XX%. consistent forward EBITDA at is and can revenue tick say fall down approximately margin, that year. I probably little our going business, we higher. that business then or each we four little and it’s in a it with The vary. about of really our look incremental what take

On about of businesses average type of the markets the larger XXX several strategic buying, the higher That’s basis our versus larger facility portfolio. the higher same-store single the margin we’re the out a reflection than over in current a portfolio. same-store higher years, we’ve past Home of just Funeral had business side, Acquisition of profile margins, that our points revenue have

as expectation acquire. continue, pace. will probably we faster at The idea Our a that moderate that, is we although is acquire

consistent adding We’re portfolio in at that businesses more pace. a acquired more

we these you’re than we’ve higher the growth have margin, rate a around with So past roll relative have years portfolio have our into same-store XX start been as going to then you probably in say, currently after And today. higher XX, where over months. margins, to same-store five portfolio,

Scott Macke

sense. makes up, item corporate on you. changes that then expense had it, picks you the Got this acquisition we line and Thank the answer, on that see with And touched of some activity about I XXXX? in I revenue? a that If expense corporate what expense XXXX. of And of sort beyond, and about I how think as growth in should expect think percent should overhead the XXXX

Ben Brink

Right.

little terms be flat down a in of think year I we expenses, overall. should to this

think it going on to a we’re higher view revenue I base.

keen to That corporate the platform grow than – to our is really down. our The So much forward. growth leverage as overhead metric managing trend we you’re we’re are able support have efficiently which our overhead. Carriage slower a at to a that should revenue revenue, about to pace on going going about how that we’re is we’re of overheard able percentage idea and a have continue

of growth EBITDA same-store fall the more will forward. more EBITDA line as move to that in so that bottom And acquired business or we organic our is, that

Mel Payne

got company just I a it look XX investment of that if company the five isn’t frames we little of and then XXXX, want add bit G&A easy reporting of roughly to see the you’ve right that trend and historically, big Mel. was trend the innovation with think as the what did people – control we reports, local to initial would It’s time to financial allocations, publish began And this outcomes. a year deal. than broke overhead all and over Scott. range Back it the business, no which own when locally profile a color. in how guy, we when down to we other

home So the time over get all we services. eat support and these office us overhead, at better, more their each to smarter, which productive better port all made with business able

model Even as we teams, leadership, and better box. upgraded got changed systems

their headed into us over changes I here lot last overhead with the team done on year teams lot we think the leaders of upside leverage. now support of the are given by in And have So XXXX. the a Houston a

his because I the better would faster platform. So of businesses through and leverage to we’ll bigger, be able think that grow group, Shawn more of and then

operating in through First, to revenues they flow the and leverage, EBITDA good Field we’re and allocation. the chance EBITDA that’s platform capital Field that growing the consolidated available then value where overhead EBITDA of have the more buying falls as have businesses down created cash becomes free and so that generating the real for

optimistic we were I think thought the kick dynamic leveraging have XX was, five that’s too what we or over what enough really to because So see missed next Probably soon close. we’re do nature I years. I of my big in. this

getting what to close very this that really We’re value-creation so be think. a I the gets mass critical That’s thing machine. to

Scott Macke

on you. what’s a going to financial in going Thank at two about ask the out context. smart never is figure going least and talk down five what maybe for that income the bit But in The the I last years, of some understand line of to anticipate the the exactly we’d through has little the the what’s be expect happened financial what’s that segment. last so over about I the broadly kind investment in can you the a next And do just and two in income what Really appreciate me. to happened final conceptually to contracts. last in returns of years. forward. enough one I’m want flowing I longer-term years financial But nature if with know years? two

Mark Bruce

Yes.

are there there. few in a moving So pieces

Cemetery this, trust funds. key it’s revenue, biggest been and our around have really been perpetual drivers the care financial the really particularly So in

even highs paid getting manage we historic risk with we’ve market, to income to high-yield better preferreds, allocate there. in our continued lows, all-time for we’ve the that As really equity markets high-yield found don’t all-time we’re versus opportunities would capital feel relative of equities, value and we the appropriately portfolio, like some take fixed

in as in have that held bonds cash have either them, had or made invested those been sell we proceeds we’ve equity as So called been to decision securities. or

right. our nothing income So current annual little has in portfolio that fallen dramatic, a bit,

has funds. as So to – few count out We’ve and in that declined earned income had opportunities also our care the historically, – perpetual the take past, income cemetery cemetery the states. gains through certain a onetime we’ve in them capital

income have appreciate booking us. that taking capital current been felt portfolio – the the regulatory we our from and short-term our out and Some about portfolio, versus given feel to of better way how there been is taken And we Carriage. changes that also, just leave grow away in through that opportunity has markets within been performing financial it to has for

of really have financial in been those the So revenue. drivers decline the

build be fixed once I that, that is point at And to in get those opportunities see that years. that we opportunity nature. every exposure. we’re can going would very have We seem to think our just every income line reoccurring the built some would couple We’ve overall to portfolio back an is what a future, you in have consistent. thought

Scott Macke

you – please, Can Mel.

Mel Payne

It’s Mel.

another back go funds unbelievable you period. an income. took about had to over If through unbelievable trust run when S&P had run after I’m U.S. XXXX, We the fixed talking on October the that we downgraded we XX,

all So half way we fixed XXXX, then rotated the again after through XXXX. into Xth the income of the big first of time during and crisis August

– a was February again. then Apple XXXX then I prices up $XX. par, equities, So is went income, lower when lot And of early Good we got another that went than credits. part buy of much oil into XX, price fixed it good which hit think, credits, got way

a income to where to lot good recurring taken the we that knew so opportunities we us the real while income, went par. prices we’ve of – And fixed the gave focused and was reallocate on opportunity

Ben. might know, we’d think $X think asked at buying, don’t you I was bought on what of it you You we you, I depot somebody, and I discount for are at, a the million just paid asked all or remember me call, what that,

Ben Brink

$X.XX.

Mel Payne

$X.XX.

had actually and fixed the this portfolio back we’ve winners October of Fargo big, been equity, recurring of huge So another of hedge. to producers. dollars millions we then say, year, to October now there’s Wells we of this still they to they’ve intended we’re us, equity. huge And got exit as PNC we allocation But year, We’ve they we matures, AIG the warrants gains, not go income been took made up, because let’s mess keep bigger especially But in a those Zion. out for that And be portfolio the profit of the and warrant have on top we’ll that. those see huge were a to unless some income. XXXX. in And

where gain, So allocate we’ll deem. and we some to to have have cash we’ll take

So come. the yet best is to

Scott Macke

I going investment it I’m I’m lesson few just on. Mel, works. understand back, but now learned make and from you how portfolio I you’re refresh was investment I’ve calls the offline Could do me right, for who that conference asked a my tips, sure it asking that. a to memory, about want from to

immediately interest the trust into correct? So that recognized the on is portfolio Is income cemetery income.

Ben Brink

Yes.

So here’s the difference, right.

deliver at We until the it’s we income to Funeral somebody revenue. are our off period, regulatory don’t the in trusts, has statements. And This It’s we care the preneed expenses obviously, earned make perpetual used cemetery we any recognize it of is cemeteries. In passed typically and all current where in counted Cemetery. the of the away on maintenance contract it’s service and versus the So that and sale financial investments. delivered, income XX% on offset preneed care, merchandise. our These as that requirements. different is, deferred every and the property Cemetery

So a of disconnect. bit as you see, can there’s a

contracts total XX%. those years That you allocate our – those take years. XX%, revenue, as in Over and our those has those gains – up show that the you declined two you total been financial our appreciations in performance see, over to And return two price has portfolio the as total years recognize in realized and mature. to contract the begin future and down gains, level last

So bit a timing a see of that’s that you’ll disconnect there.

Scott Macke

Got one, I it. promise. And then last

interest fixed some wrap to the and hear you off? think a expect directly is little I more turfs by up to of the requirements? rolling flow that tilted and to little of And maybe income portfolio XXXX So all a might impacted if about the and, I income I therefore, that say due more I did maintenance beyond, through that

Ben Brink

say bunch what I you think one thing. I is of into things would – you said just a But combined

Scott Macke

frame Well, told, going kind of so I together. more all yes, question, had to I I was them one ask only to

Ben Brink

trust see here, our this to and portfolio, What in should I high-yield is level-off cemetery those say allocated we feel, perpetual from income would we’ve income year. less because earnings we care

year, up from And for we so this we at when year. it’s the revenue where slightly were past financial look

Scott Macke

Okay, thank baring with you. I really me and questions. my taking appreciate you

Ben Brink

you much. Thank so

Operator

like this not time. Thank turn you. over And Mel call I at showing to I’m back Payne the any questions to further now would for remarks. further any

Mel Payne

questions really We you much. Thank all very today. good appreciate the

we’re about doing what excited as is somebody like we are. Sounds here as

that appreciate look go Stay we by And So and the as tuned. through are progress to year. we that. we forward reporting honored our

Operator

in and conference. all today’s have you does participating disconnect. today’s conclude This may day. gentlemen, And thank for you Everyone, a Ladies program. wonderful

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