CSV - Earnings call transcript Q4 2018 | Carriage Services, Inc.

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Operator

Good day, ladies and gentlemen. And welcome to Carriage Services Year-End 2018 Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, today's conference is being recorded. to President call and like Blinderman, to now Vice Senior Chief would turn over the Viki I Accounting Officer. begin. please Ma'am,

Viki Blinderman

The Thank released tables on posted yesterday available audio a Today archived and everyone. the market full information XXXX. the our good conference release press being found Web Investors page through an Services discussing made of on after yesterday. related recorded information call today and has will later Carriage A was site. Company's be for year including Replay for we'll release press on press our website closed. and the XX. the can distributed results is February release you be the morning, supplemental financial be

the are on Harbor Securities fully the filings and associated Securities of Act with Reform the today followed to Payne, Executive Mel period. the statements, call a the statements call Chairman Financial a and in attention I'd are of management Form like these XX-K management accordance which Ben with and Litigation XXXX. call in Please risks Officer; that filed will begin Private the myself. from described from by forward-looking your Chief will remarks Officer call, making Today's provision Chief we Brink, during Company's be with Safe question-and-answer report note to more other formal and Exchange with On Commission.

call, reference factors occurrence duty call date assumptions GAAP Company's directly updates measures press the reconciliation usefulness historical are this circumstances Carriage regarding Carriage to these filings today. statements, to with measures during looking changes together stated as will periods referred events, to expectations. SEC. are non-GAAP based of the any such or or of and measures. reflect statements, call performance the assumptions most opinion to comparable included expressly Forward of factors available conference provide to disclaims the the course the other forward-looking the Services or of information we of certain such after the on financial Management's in the to, morning's or on measures in this Furthermore, the with for release of

to like Ben. the to I'd call Now, over turn

Ben Brink

you, Thank Viki.

per in year For decline Adjusted undertook X.X% attributable margin was decline recapitalization was Adjusted and flat EPS Field point full our our our difference to due margin XXXX, $XX.X between in to adjusted total XXXX. the primarily the the sheet for $XXX consolidated of The to Standards consolidated earnings we field total actual and decline diluted million. last month EBITDA The million. grew due diluted was increase pre-release XXXX. $XXX.X field was adjusted the an costs, to grew revenue compensation interest XX% year-over-year to as throughout from primary balance X.X% our share EBITDA XX.X% formalization our $X.XX. incentive EBITDA estimated million XXX to per basis the $X.X diluted EBITDA in activities Achievement after share earnings and million. adjusted

adjusted for and spot, quarter. were $X a that severance increased to reserve Total $X.X was national non-recurring these million. $XX.X booked bright potential overhead the million free for a as transactions. large purchased fourth cash fourth million for fourth notes included quarter. a negotiated our of a of we convertible $X.X of amount charges, overhead $X.X expenses expenses, subordinated In quarter, and percentage in a year, revenue, million the For face legal expenses, in non-cash million $X.X $XX decline settlement stock-based continued disaster Adjusted that and flow to included multi-year year million related X.XX% and which as awards, the Non-cash the cancellation also due equity million million charge of was of privately metric. in performance compensation $XX.X XX.X%, the the

million diluted right We million, in of common stock quarter, for leaves which our count $XX.X X.X at share shares about also the our repurchased, XX.X million.

bank of and adjusted forma Four pro was is covenant Outlook. a ratio consolidated of on $XX X.X% compliance million times X.X our EBITDA based our leverage Our at leverage year-end ratio midpoint Quarter

Our discretionary of volatility. opportunity credit X.X% with term declined trust in occurring trust in the to majority took late short equity due to and the XXXX fourth quarter portfolios market decline the We equity portfolios allocate led the our fixed a portfolio. equity XX% equally across year-to-date, time. that position during of our and portfolios by performance returned our portion across cash income approximately The

and and $X.XX. Our The of capital the consolidate free corporate million $XX expenditures, adjusted between operating growth million $XX XX consolidated We expected and million driven of be current cash shareholder $XX with dividends. improved outlook capital invested overhead a diluting million EBITDA $XX in by of Four EPS will for per remodels. to XX.X majority for will EBITDA total XXXX funeral adjusted in in expenditures million adjusted million maintenance be year-over-year home capital and is between cemetery now Adjusted and $XX X and reduction in select to cash earnings be share includes primarily closer flow and interest growth expense, expect Rolling million million XXXX, Quarter be for to execution which $X.XX for expenses. adjusted inventory

of EBITDA lost margin for the past basis representing points, has million. EBITDA $X declined a two years, field the Over approximately Carriage opportunity total XXX

Our Carriage. through and that in high our progress execution managing across so powers towards of are showing partners, businesses, on we make progress true performance teams we each partners support significant the as XXXX, center of focused Carriage earnings

recognize publicly our To Good and Pinnacle Now, winners. XXXX I would winners XXXX award Great to of Award our Carriage Service like

sustained award rate Great a compound five businesses excellence over period winners. year To above and Good our five managing growth off, their partners These with First of showed X%.

Spence Borselli, Darling Conner-Westbury Springfield Home, Award Funeral Jason Heritage Florida; Ottinger, Byron now Allen, Bryan and Rossville, on Service, Ashley Funeral in Home, California; Funeral Georgia. Fry Keenan, Everly Griffin Dwayne Fort All Miami XXXX Funeral Virginia; Homes Massachusetts; of XX% Sue Latham Funeral Chattanooga Funeral John Home, Crematory, & in Cecere Lotz Binion, Pennsylvania; Alan Bob Luyben, Home, Funeral Verdo Texas. California. Care Andy Hardwick Home, Fitzpatrick, Wakefield James Coast/McLaughlin Amarillo, Home Funeral Justin Sue years. Florida; Caldwell and in Steen Bob Prindiville, Nicholas Chapel, Lane Vella, Home, Hillier Vinton, Kentucky; Home, and Memorial Todd Camarillo, average Virginia; & Welzenbach, Tennessee; Chapels, Dan Simons, Kentucky; & Homes, Canal California. Funeral Tennessee; Funeral Mortuaries Matthew Funeral Muller, Stanfill team Bill Ben Lovelace, Idaho; the Terry, Kyle Friberg, Roger Kerrick, Congratulations Curtis City, Winchester, Park Georgia; College R. Heritage Chapel achieved Maddux-Fuqua-Hinton Cox, Colusa and Conner, Fort Kim following Chattanooga, in Heritage Memorial Byron Funeral off, Jeff Ottinger, Florida. Lotz Lawn or First Funeral Homes in Keenan X an Homes Funeral Mike Station Funeral in in Service, Walton Keenan, Californium; Home Funeral Community Service Jose, Georgia; Donohue Carolina; Simpson, Memorial Church Home; Home Terry Cremation a Funeral Funeral McNary-Moore Naples, Conner, Gatos Funeral Park Homes, Fischer Homes, San Robert Florida; & Funeral Keenan Home, Bright Steven Tracy Center, Home-South Cremation; total of Mortuary, North Home Texas. Robert for Funeral California. Funeral Martinez, Home Shemwell, Brian Naples, Funeral Dakan Brad & Emerald in Conner-Westbury Funeral Pinnacle and Conejo Standards Shemwell, Lotz, down Ohio; Crematory, Cremation Homes, Curtis your James Incardona, Oglethorpe, Cremation Funeral Ashland, Zanesville, Deegan and Jeff Escalon, Maclary, Fuller And Crest, Sun Home-Cremation Salem, Kent-Forest above Kentucky; Mike Funeral our Wayne Home winners; to there. in Funeral Panama Elkton, Bass, Home Westbury, Funeral and -- Bryan California; LaGrone-Blackburn-Shaw Darling City, Evans-Brown York; J. Mora, Virginia; Home Seaman, Downingtown, Hardwick, Options, of Funeral Ohio; Falls Hopkinsville, Werre, Los New Beach; Mountain Funeral James

& look Now Louisiana Memorial Rhode Jeff Chapel; Fry Son Harvey-Engelhardt/ standards Summers, standards & XXX% and one winners in Fry And year; achieve forward Cremation at Matt Orleans, in in in for Schoen, And Metz we'd Charvet California; also, Steadman, up in celebrating Katy, Hauck, Myers this are more Funeral who forward County Bristol, P.L. Ken even Jacob Brevard it to XX% April. Simpson, to Titusville, we early that, Manteca next open Courtney Funeral Fuller a in New like Scottsdale Funeral Florida. Hoots, year. celebrating both We Island; look Patrick Texas. with Metz Schoen Home, Florida questions. Services Tim Lee time Son Florida. those and on Homes Schmidt in North And -- Cyndi Fort Funeral winners to and Home, Home Sansone to

Operator

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

Chris Howe

few you. for here a had questions I

As some from that status can or a over so the perhaps five made standing you the are pack? improvements and you this months, doing give the specific how than past to locations changes look you've and out are update at are those to current others the how quicker adapting as different some through plan restructuring that

Ben Brink

across to early we we've and recognize say Company too tell. and We've I working month at to in we about in would some have Yes, implemented especially in We're we're cohesion portions always I year-over-year the progress January the have cases the the be that in in January it's new teams for just seen our here to is excitement than but excited We standards hard that. comparables do was business, of others the think, going the it. of most alignment, the ways difficult. seen go better the ever X. of

Mel Payne

morale growth has over revenue necessarily is Company Mel. the across not the years XX% rebooted smaller Yes. Chris slower compounded think ever waiting has of right our emphasize like achieve will and easy a be don't that alignment over XX%. this years three the gate out and The maximum been But standards and growth to X the good. revenue I this is compounded

IT, we provided a of other our year, some that there tools are through Support, all involved. teams learning. portal, hope, our Director are that that are We Standards some very during and innovative the things So Council are

year. It'll see to That's serious addressed. how is But going I So some at take time it XXX we to back throughout go tough was performance it and basis And I where have we're been in be comparison won't to of the be a have the once. get would time. last first recapture year, where at before this and we some a Group think one do points, had to issues, the quarter. expect way business all the this the

of not is quarter December second get less see comeback the smaller lot side, with but really through performance all will I year But see we and here, we The result did and last will getting, quarter little the weakest after ought out. then think won't really is, in that head impact. just was consolidated the of businesses year change middle think our a in this bit will a when the like jumped at a weaker, incremental think the having it. the in on everywhere But this not that whole it's in have work. next change you'll performance portfolio And things I we third we year same That's of then and they the all. That's with what change was and throughout how you'll year huge issues thing so and with be same broader expect February how few had the started is really we deeper strong envision I of issues. I a into time. January go And And those have year numbers. the progressively there so portfolio the very same to laying

Chris Howe

the annual had adjusted you mentioned, an basis my on improvement helpful. had is saw in highlighted cash next And Ben flow. question regard, that That's free you in

we how implemented can As for different on period, and at and look Great-to-Greater, free the cost the look like this that think be we to potential discoveries initiatives plan portfolio, margins to that great savings learnings at or it to the within cost the flow. of improvement over you should then that restructuring call for can to flow we XXXX, next -- this as potential it cash I so-called through made and

Ben Brink

perspective. Really from the local is, million it businesses. operating where improvement we think with that in cost or annual a cost done we've leverage Yes. just perspective level at things a revenue really focus couple local and Standards were business specific to spoken we than focus Model. the come. That's corporate $X at look it's to annual get these just margin where Mel each of overhead That's the to where from on a again, about lower I XXXX. and in at compound referred approximately and XXXX cash We've a Operating expense reboot don't individual the and will growth appropriate initiative pure come on our from margin where revenue at of improvement compound growth before the we will from. times But expected focused a is in be what

Mel Payne

Chris. again Mel it's Yes,

a portfolio in And we the the showed have on 'XX, it to we mean what started was incrementally improve happened good it I 'XX performance 'XX performance 'XX and even happened to to in half of after operating last tail mean XXXX. in continue time, off January. the was, expected was, began to in up. year. and a to bit in portfolio overhead it year increases I also had off little trends, what And because to tail first tail it then 'XX, bit was think 'XX a good a really trended it though started expected accelerated incremental off instead, even I the little after during this in itself though year.

is And going a deep it up to cost, business, being at Ben here done department in now at end says every better. same million. But the we Houston, review probably is say got done smaller, field closer we've about X just our reduced the I million, we time, looked broad we've every at what I at looked would and so, got and And team looked and performance to now X we focused, commensurate think much very we'll in the here a the But alignment productive weren't we're people, up overhead the who that. of see the executing. and support and a effective we the the with come and field very the vision increase teams number goals are operating both very aligned in eliminate the in and have did much Company of won't much very at supporting is support

Chris Howe

teams, what add or on should And can topic targets goes some XXXX? teams, team the as competition? up of that been have the plan far against their seeing market the the respective Staying on the in sales has your this sales there towards redefined for pricing be as color environment anything positioning you adjusted you're how been or we aware of as

Ben Brink

we we cemetery Yes, same hadn't a our in in on really had which 'XX. We standards separate we the home. review did since thorough the the a cemetery and been the meeting December cemetery that did thing did late our of updated council funeral history of and

in the because the preneed developed even higher them again, home sales is in it preneed than property weighted sales. by so we cemetery. driven property funeral that growth, case, we And And side, did we revenue once really compounded in

made we so weighted And a only compound categories it we bit little not the higher, growth higher.

incentives three think are our and four property you're here. to if won't compounded I be we can't you very So fall But categories. grow the going your you standards beneath revenue, had or probably preneed high. And minimum revenue, sales,

sales So this over managers five the will and better work do But ultimately we have we area. this of lead to lot year. talent, next performance think to a better sustained in

Mel Payne

a lot work to opportunity. of but of Lot do,

Ben Brink

probably where have we the Yes, is this upside. greatest

Operator

Duncan Wells question Fargo. next the line comes of our of Brown from And

open. is line now Your

Unidentified Analyst

as internal thoughts the all kind question, projects. acquisitions, the dividends, completed, had just color, quick for Hey, on of kind of good of of just the the and Duncan it's buybacks guys. that best review your what We capital are between one given Brown. thorough We morning, always debt appreciate of use [indiscernible] business around you've kind repayment,

Ben Brink

our acquisition general, in We, things. focused allocation of be will couple a So activity. capital around

look become review these down that. even be may months, as our larger and towards be leverage process. to the down And expenditures little quarters the then, within recapitalization we bit higher our over to debt paying we over we've capital selective about that and selectivity target sharper we'll And getting during we've think at last couple past continue of around then couple a next as continue around our cemeteries. looked work at I and to of communicated we X.Xx that were they really talked to That's than particularly our opportunities that year. invest find to

Mel Payne

Ben, expect bit then operating to we it increasing answer, and just that. we'll today a increasing what is XXXX, increase Let base the way a fully this own My revenue. on to as just good any And be would without a XXX slightly the back to EBITDA chunk come revenue to me then guy, That of but acquisitions. field year, add performance not was EBITDA that up different. answer into get on our margin but big expect I continue I

think I our be free be, financial a performance, flow so down where from deciding purely to then right will, where And ratio bring improvements cash from put our will and now accumulating it that. and debt we and is EBITDA

-- if performance yield want are that's of that in worry where you're allocation one get yours and very by the high allocating is of selective. more trends get I We go operating that because us to up leverage but being they flexible low is whether into a our and think investors into ways our to much debt situation including capital back things, higher not on grow acquisition, be to to Now performance, puts your friend have capital, concern through friend, we position so declining continuing about which our in not see you and always your is the trend yet a to that the best way friendly. the is of is do

our align not over criteria home and with cemetery or the the the future to that compound emphasize years, standards last history of We realigned acquisition the but our over growth have revenue both funeral on X XX. five of

would I'd So more that give as answer. give complete I a --

share I think the on we're repurchases. done

repurchases. that we're done We in the up. on converts. share the think cleaned I pulled We

of on will it's I that home primarily really internal bigger at now inventory funeral cemetery a do think lot high some in and we on of places we builds investments, So bringing the then come our leverage the acquisitions and side we're return at going and focus looking in new ratio make to probably this we'll operations, and second down along, look year that a decision. if have half, the

Unidentified Analyst

Thank helpful. That's you. really

Just become how given selective? have of acquisition pipeline the one is looking more follow-up, kind you that

Mel Payne

a is competition people. not and a the but pipeline, pulling we vet turned talking we There actually selective down and quality. market to active. of are people. very we it's we market we have to deep are thoroughly. number But we high are I been than It's more of of of say a wouldn't number But that's and lot and a out the out talking we're

holders. here half And X yet haven't been I so opportunity bushes and if here didn't and surprised our in our be we last out have there something an the bring over both the in that contrary the the we shareholders satisfy debt would second here to on equity months, wouldn't beating

Unidentified Analyst

Steel how and a restore kind platform? these Standards is the board. helpful. you of and of It's this from of you performance again organization and happening picture across talked about prevent from do kind culture high the one kind integration and maintain And how big kind issues and forward of the the the us across grows, do the as really culture But question. last of you eroding One

Ben Brink

that think ridding reboot was Yes, Standards, ARPC That ourselves people was part subjective was and I using it people were, hold the first of of the of had arcane that first become to back. standards ways and and the foremost. the standards

Those listen have ideas, partners best managing to Viki, anything with and can we their communicate to continue forward. how X, as businesses, collaborate our support them hear us, move my for else? we and are and think learn field you better do our I

Viki Blinderman

always in searching do Yes, people, to continue and place it's I about our would the people businesses say, right the we'll all in just and to always leaders the have having great so.

Mel Payne

very the the Mel. was is the people fascinating the spread team culture, and months to that culture culture, X and about made mistake XX been could This of It's a live reported culture, I got I that X lead me a of the believing or wrong.

had eliminated, Standards company, we and a was about the the Council. a we standards broader concepts, the much brainstorm work and down, So find, would as really because that was But now, field at participated, culture. XX were so went did the if listened MP people really in but the across great once platform had not brought held curriculum you this that many so pushed not larger, level, and is it to. we Carriage as deeper, ideas many leaders the process team we called And there and there of through been ideas, to that problem you come owns went support the about leaders that well here there University that the team were unbelievable down,

it's X and Board months for We a and like came -- here HR, call Board probably We in a I what I five had long had in myself They'd it told have and hoped wouldn't If the this ago, well that Leading and it in and Development, shocked IT, don't had team on I I I was teamwork stepped the many know the do; I jail collaboration, them up accounting, months. to it. believed at is this. came at yesterday injure the just would be look energy, my at the to engagement, Loving mutiny Corporate Learning, they at And from Company. locked -- all Listening, I tried have across the out that's come think meeting their now XL hand. sentence. anybody how and a on

proud them got I like really of me done on and again. signing they up this like even the table see a if down just to So here somebody too what excited, now. It's cat. I I'm has so this couldn't right me end team the of Tesoro wanted and smiling work very leave exciting I'm

strong we So the anyway, culture a antibiotic grew injected and come I deeper with immune anybody I and real stronger, and lot think the that system here an was don't that again. do in think broader. can

Operator

And our next question Sachs. of of line comes the Patel Komal from Goldman

Your open. line is now

Komal Patel

Mel, excited CEO a that staying you're onboard the will for and We're another for question turnaround you. efforts. five be years see and as through Chairman to able

Just the planning respectfully, and wanted made we about far plans regard? any to that succession ask for been company in so have

Mel Payne

a Yes. get first that's time I question. question. the great No, that That's

don't I never and XX I like and I'm XX energy years. don't I'm been better in like lot I'm a XX, XX My passion. of and sound have I is hopefully health So act

our not we succession Company I'm at two I'm first will but are a now I as looking point. can't pool. So, tell I the up at me, and do a and take adding don't reach concept have CEO over me. having planning. vision, with That's it point not not to somebody team of fun to of what couldn't teamwork even the this and the would know in of assuming the ideas subject successor I'm I'll value and where this candidates not lot I'm just be unless be next But so case leader themselves. over all in I that. But with the a that's be operations believe lot CLO and file. and in I say over not jump fun retirement VLP having my the It's there with prove of years, that

secret, is, think to yesterday. the five something not by on to I two plan. we team. It's my me, what this work about with and am but to openly also or talked to about the we the is downside, years, if so, one And made but with it reasons somebody do if next maybe not, about a hit I over get I'm an happens about reason say don't worrying I something talked that I it rather it I want plan we I are bus, is I'm do like Board, up, the have plan a not it, have not a a emergency. I If wanted worried to putting know place or think is people worried they the we know was that, mistake if we about here, the people of than in let which believe you if here. maybe wrong they're of messed it do

it spot think problems been backfired. It's have and I tell after I I an issue. after through I of identified my and good I That's in we're and to shape. that time a So, hearing and lot Sarbanes-Oxley but was trying you, to every question same did, went started take in the XXXX find bring candidates to

this named I'm wannabe successor. I team is fun. fired one and back in up this, be hasn't will Warren looking all He having I XX. But yet. Buffett is a my I'm time, So think My I'm Warren Buffett. for

the see, me. in people it, to anything happen Company and I but don't to happens if something all we'll So the to want

is seriously I that it. fiduciary take they and a So duty all know

Komal Patel

too does the managers the long property high believe all and two that. is, Okay, and appreciate I in excited. it the well. the dilution to specific and to the too there not pretty isn't or that's And term great from far? what team comments. threshold go to does or hear get include on first incentive high is how for for it also appreciate one regional standpoint, down the far questions employee awarded? And Is threshold as regards to much be the And just response that the the, incentive has program, that or employees management been so guess

color is added some there Just helpful?

Ben Brink

the actually has support. opposite. will No, our -- flex leadership buy-in from in participate in leadership been it's enough senior including program. complete the excitement the and and feedback operational group that mean, including I the exact both This be for

every and ones working communicating, Houston partners managing support mainly day, focus analysis and our Our the new in partners. partners testing that our and each are field here our operations with

Mel Payne

Partners?

Ben Brink

title. working right, got on Didn't the that still

Mel Payne

groups So came away and others, interest excuses, to teams prior learn, that The here, that about want we Viki making about business. I the like Ben to in performance this think is, to to that. is way their keeping started had down, didn't me. including other when was the had mean, think get go operating and separated way vested especially themselves, of me who a and leadership to their they the kind

whole people is what are of have and they named partners and at their Standards have doing, here partners to regional influence now me. done, all brainstorm really only They've business that of here; are Schappaugh, $X.XX collaborate company, $X.XX very teams a wasn't Houston so, and of whether They in takes an be wasn't amazing won't can boss and one and is, then share. so of there we each found on are -- operating years is over to see. the watch on, this And do of day at are so these amount Director -- who and all Peggy kind portfolio, to also fun called into of field to of the open analyst as opened are later. or to business Collaborate over all and in group I sales $X.XXX every Support, the thing any a the a -- a she been and solutions been now in a got I and of right care we them [indiscernible]. side manager. we who have standards It's there opportunity up so me would an achieve to there. portfolio of to those or MPs rather that are MPs $XXX,XXX portfolio Achievement what language kind to say in And honest incremental whole who broke ownership causing And Directors reports partners, and these and been brutal short to honesty. we our EBITDA and Directors collaboration, time. and of what business. a about from have it's a who this everyone silos Support X assigned the as has it's $X.XX to people partners support and there on found what it's implemented Support. than and anywhere has now each managing on for a equal be a kind We educated the our happened partner, has it sooner people The this The over also issues direct we underperformance it's change given an their performance to factions including our That over

all this that's what know it you we do or intended we they to And okay, that's targets mostly not, So what know, all internal. That's why they are, think believe say, and is the do. this. for can

Komal Patel

or that perspective really a some from one That's could offset standpoint fund last trust And of expect management a numbers? the differently, allocation for do Anything lower either helpful. side us, business the to the XXXX to from portfolio XXXX. you help changes any

Ben Brink

in continue I manage we portfolio. Nothing actively to particular, that think

over opportunities and cash and or that's and our income $XX like at I the the to here equity we consistent strategy and on recurring up portfolio our that deployed see that pretty the both within look how of in XXXX. income build the manage core changing side. fixed the to portfolio don't our weeks in million in and We last market and securities. within of have portfolio select We'd We're continue XX% look X see over last almost X

Mel Payne

everybody cash. had We've quarter, We of actually year. the the at pulled had time market Like last start the the a to right start year, a the we we've strong last in very year. out got but hit else, build to strong

So we lot go didn't a who've down stayed as as much people it. in of

lot new races And so it a we're it and off of to the some work I to the time right we think put ideas. back, at back with

Operator

Instructions] Chris [Operator comes line Our & the Company. of next Sidoti McGinnis question from with

open. now is line Your

Chris McGinnis

that question M&A and have strategy or target since targets, at, going around review? thoughts around so quick the changed and your your your your the you're far, forward a Just anything latest looking comments M&A

Mel Payne

Standards call be will criteria vetting now on which those criteria, this we Yeah, criteria, operating we've mean, then, and existing are that Mel. toward for under candidates strategic revamped Chris, our that use with candidates vetted is aligned we are in that what I our Standards model years the especially very growth much be over higher oriented our integrated or XX businesses portfolio, and compound can portfolio, revenue come than a our into X same-store.

we way won't number can we compound even now businesses of of qualify, down as growth, And a grow revenue small cut the actually if at that amount And do. they be on so believe high. defining the we're that multiple the we'll

the, it's XX predict So because be a that and lot revenue can growth we compounds related or model, at when value. higher rate a and know five the to field this into shareholder multiple integrated over growth EBITDA of what compound be much the the happens we creates that will years of

Chris McGinnis

to your just six one twelve months just are portfolio, right then, some guess or of that's the say just rightsizing Are would underperforming question than it the exit or they fix If thoughts those And you to assets, actions around, the months. maybe underperforming, it. at look maybe to rather maybe about give way them? options if I around maybe continue think kind

Ben Brink

existing look if in portfolio revenue lot have material bit all six, year-end. new it They're almost turn those around have standards, like you we be in years. new a write-down got look, a on didn't back not standards, at a Group. the lost heroes. although four, five, the movers and every we a these meter much a we redid have to declined and as And real lot positions EBITDA case, would the of MPs said of of Once smaller With quite we seven our over

of So it look not nursing encouraged material enough year-end we the them. lot I at see is We're portfolio year opportunity can it the much it. they at be prune do. wanted won't keep is to them give we'll performance. growing time, time, in to at absolutely but not and see those can material a think, there But Whatever what that is, too same that take this enough there overtime, to very already upside, I to think we'll that we be improvement,

Operator

Money question with from Mendel the Mendel next Management. our comes Barry of And line

now Your is open. line

Barry Mendel

you know happening? my What's XXXX-'XX how for you question, that replay time You mean and do guys react been another this how place? took do around? put a prevent to earlier of -- to, what in you while you for I catch it

Mel Payne

reaction at Well, well It was a me during level but didn't turnover times you, you lot but had the XXXX, the lot different a covers this over a it his knew field at right, a the by of Barry. cut have years, thank would he and good from I took what But see That's leader and with probably not I year had a half, a credibility got right senior in it, bad our under of I here legs for getting question. would out behind them deserved. back reputation with have people. if no

doing close when not so to mentor came real X kept I there trying in were and X place left I and times that. him, And to times coach I him but him or

taken leader response never really I changed and people, saying, response, message, like on will would So, there it were pull a we're doing a back came. national I seems out whatever you as it see and think okay, the field never that actions was all good our that's things, stuff a But the right a how we'll didn't turns and of okay, of think to kept I get out going lot see.

company. leadership. memorandums And others it the in without and who changed often out the as two times. a strong Everyone being of the it or regret to next so, wrote. interest of has obvious gate. is has a are our vested almost ideas the leader about it. this future in rather this I followership, on and me the my than times there mistakes, for sales the I've with no of making choice, – to mistake, I wrong I and if a he members, one And to defined council said person didn't was of three present and vision I'll and this vetting not businesses align leadership right managers, the history field want she Ben couple follow. think given members time, I three banking now board someone in that and Viki, or I MPs I the I have team is see made that that

Operator

for I would to remarks. this closing And call at like any I'm time, showing to the now no further questions Payne back Mel turn Mr.

Mel Payne

out on today appreciate our all let's remarks, get I'd the no we except and there it, great and just to are have do those of done. shout listening like lot all and call of say a to them, people I questions closing a to it were

Operator

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

Carriage Services (CSV) 22 Feb 192018 Q4 Earnings call transcript