CSV - Earnings call transcript Q4 2019 | Carriage Services, Inc.

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Operator

Good morning, ladies and gentlemen. And welcome to the Carriage Services’ Year End 2019 Earnings Webcast. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.

to conference like host, to now Blinderman. Viki would turn over the your I and Officer. Chief President Vice Senior Accounting Thank you. Please go ahead.

Viki Blinderman

quarter Thank you discussing for end be we Today, XXXX. results and good the morning, company’s everyone. will year

information made was has audio and website. Services press information release earnings the recorded the related public through after release page available being closed. is Replay posted the on February financial and today website later the distributed supplemental including will This Investors be made conference yesterday can an release, be our press on Carriage XXth. found for call the market tables archive in yesterday. our Our of

call Executive Chief Ben the Chairman, Brink, from Goetz, Payne, Officer. Operating Mel and Officer, Officer, On Financial Chief management President today are Bill and Chief

XXXX. any of from with sale, of with milestone will the provision will statements Safe regarding future by during of or are management market and debt Today’s related flow, of forward-looking note activities any future include savings, our question-and-answer assumptions any the acquisition the accordance the divestiture statements underlying year financing period. three we of improvements on than of financial statements revenues, cost information historical benefits the Private cash statements performance, statements performance effect belief These other call, and acquisition Litigation any remarks financial statements. scenario, to activities. conditions asset and of but for of objectives the Any planned be and in management to anticipated call the and operations, and any statements followed statements foregoing. strategies of such economic and levels company's acquisitions statements of items., deemed limited projections begin recently should Reform closed or earnings, be to formal that operational regarding acquisition, Act Securities Please the Harbor make statements other not forward-looking All a other

related revenue Forward and herein We and future growth our all. provide revenue to will revenue at can of the same generate the store include regarding contained that statements performance today our any growth. growth or same store businesses acquisition assurances looking assumptions acquisition businesses discussed no

attention the I’d to Form associated Commission. fully Securities are risk Exchange your in call report on and statements, to the with and the other like more these company’s with filings XX-K described filed which

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

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

call turn Now, over I’d to to the Mel. like

Mel Payne

Viki. Thank you,

period after within very needed XXXX had executive we our the obvious decline the portfolio, executive into leadership Over senior for I did suffered in team performance became not we XXXX, that company that especially the and over members and five we promoted years a the leadership have the it last of positions the future.

company I vetting an level. and field both boutique someone and to a incredible I the find able within not did think be the senior board because firm. at extremely retained through executive would So I go just level process, my high were qualifications to I leadership at had and honestly recruiting the the

for he And and found to and Bill? a that well will Bill I'd what years think serve report this to Goetz he's strategic in lucky come. like to we you. Carriage bold compared for into How So he settled perceived. company has this I made we what got December move to time at

Bill Goetz

Great. good Thank you, Mel and morning everybody.

thought seen lot do be would talk just the about in would have morning is but Mel XX First and a mentioned of this learn. all interest the bit Carriage appreciate I of the a in over of I first little as what what I your days course. Spend thing. I I've business last time to that a lot

a how what as the strategic Just we're leadership about I've team, last a an opportunities. some that and after days seen go to talk overview opportunities going we've and over those talk you give the about little XX also of bit identified

after December, was call three Carriage so last want on to back Xnd. attractive just December on going I I I the the after And business XX was my and days. kind me reasons of to being assessment you why Xrd So joined shared on in give December to the I

First over the of people, really more businesses. days visited of have all the main leaders. culture, great And reason XX last Carriage to this great join I was our great

last week at out our I mountain, Deal one being other Huntington Canao great one two fact, In Day of in the Heritage was in being California businesses, Beach.

in impressed we have, And with again, communities. servicing involved just the people businesses And I in everyone businesses. impressed those the walked leading those that with those away that families just are

Council our attend of in the families, our of very talent and of only the room and continue also make eye a all was value. the I an team to the leaders just on that talent meeting not impact to that and shareholder communities, had to and see opening course privilege but to the again Standards commitment

it's about which is difference is in a we it's serve about have got that helping where we them triangle down support providing time businesses across of the Houston to families real that the kind our And I and people day. think our with are this field, over out Houston team. I've you the in know U.S.. And also all then model support those XX upside here spent We've great people us realize all every making days that our

to for those industry I you work. of know Carriage really The meaningful the something December career second reason that mentioned toughest And meaningful. I on for was that call looking out. at I you has do and attracted that families was more And inspiring businesses my at point day every this each that and meaningful just visited to help purposes. work times our know our businesses is the stood the I've what was

that chance And that the December And then at macro feel had the the I Carriage. I look industry, know of the get the about about to I was third point data discussed for a on But was opportunity. reason that on call a to at some starting really opportunity. you excited

I I'm even excited. tell you more days After would XX

excited what there grow in last XX business, the today to through has think opportunity days. done model, a new businesses also grow about operate where is bring huge we I but decentralized over it our existing very to team into markets the the our fold

absolutely results some those to businesses. five catapult businesses to spend got the over really years. now We great going But have We've businesses. even to are those acquired time some us next greater integrating that are

right way way local model maximize to The us thing created days to to for gives it's learned really XX right the model. support the business. other shareholder right families, also that to value. decentralized I've It's autonomy the that the that but over partners way run the that is It's managing our last the is right has Mel the the

players. opportunity last over attract, days our to an partners of then finally where decentralized allowed we learned this difference A XX the make to standpoint managing those and communities model develop from what retain opportunities has a the And give I've in us

of every as that their also the see business. And want one recruiting. I And to join day to look they to we own People big autonomy get obviously join culture, is the want reasons this they the organization. at run but

last assessment my the XX that's over days. So

will starting over Second we be and share with areas point to is believe a these we wanted years. our four And that a to teams believe to crucial transformative those to want here five great our part we've Again that drive performance next good that I opportunities, to I thing we're as really few with and do are forming four talk you journey you. be a to at will attack key too. team areas we high areas these transformative identified about the share business

is service define how we experience. area and first guest The

be a a again team together team put and cross-functional establishing will on measuring we've working that So metrics. key the

the we're the So that experience better providing of understanding service and the guest we in have a family each business.

the other great just job at and sharing is doing best with The do sure those. make and today that and them that because experience guest we're share we then those the country to sure thing have want we the service going absolutely make across our and we an to capturing are we're capture businesses practices businesses

The strategic areas technology. second around key

at focus will on to that a in formed we're look innovation we transformative areas. going really technology So team technology and two

to forward. great secondly, internally piece more make marketing technology story we standpoint, believe right everything that now more but effective part Then to to this. is doing looking at going we're e-commerce, There's use apps local going technology moving things analytics.Excited and technology from a we're about we our media, level, the from on be social us a better that's consumer efficient, big at facing, what of digital how mobile serve First is families. that a

on strategic third we're focused The that is conversion. cremation area

what trend. our at to knows be cremation a cremation business improve to look that our opportunity. cremation continues and service. is training And follows as industry the develop focused with we're on to tools everybody think this great I knows increasing that an We and

have Manzo, a We team to focus. how learn quickly what's move that Again going make an one better. and families got today. training work great feel we leader honor of we from a memorialize make loved so and now Right that is in business who's can of obviously and decision that our this cremation area that great be with Chris cremated. that the overall field them to we big lot the a going conversion. lead on sure in standpoint one want a on can will area tools that from loved ideas improve to have There's in get to of pretty and We've the they share their to

and then opportunity was in believe the And there's finally a cemetery big we release, this the side. sale press on

acquisitions our business. As made side big recently of that some you on know, we

and in we could bring in as that the mentioned press we're leader know, their You for looking come experience. in area a senior that release,

management develop process, to cycle complete how drive and right put drive we CRM right aftercare immediately. key understanding But capturing doing, starting in a better I'm businesses West with practices what couple best to some of and Coast about in out on we the how cemetery make be how that process our weeks place we going that those the to incorporate process, work we're and that the also sales there they're to sales our a thinking strategy sales.

So are. to work we associates that's at privileged here. my excited than a I'm looking And the of areas. forward part helping remarks, on top move team with I learning the mentioned I Again, of team more be where ever. about the as business forward more the and these feel the and to Carriage

it Mel. with to send So back I that, will

Mel Payne

get you, that board and members. meeting the over participate to we I But in after guess Thank insightful money feedback first of got meeting, lot Bill Bill. Bill enjoy I've was board young manager most the his the from yesterday a board million. a $XX feedback turned Carriage and from

ideas. He's brilliant well. done got he's guy, really Young

to the to his improve board in he knowledge wanted do of And Carriage become one observer things was how is value to a created. of

about into a that. went turnaround mode we then told and know You

So me some board an said on last observer kind got he I've I Mel and of he night way apifiny. it's feedback called my home and

things, this through wait might with of couldn't presence, share Bill different senior almost raised team the and team, He there insight years, the for now subject the sitting us executive through it said leadership be I players, has and meeting each the noticed said including been sitting room and for of whatever the and and I your and two the from I, that the board I members are in all executive room his of his you. game entire XX have there one six to board I've there in he Bill articulation

thank going Wow, I'm tomorrow. That's call to going just our and on change the So sequence take you Jay. I'm of that presentation the

making already for Bill you thank difference. a So

leadership. game, about are look You the to raised forward and many field am. high your many, I the we I many, the victories the in know future. people performance the anti raised you excited And in I think

them in hard call of got operations the that in over put wanted work some turn the bone of to meat past I back since year, Before been three I to the next and years it's I lot Ben this to September on high a just say responses listed a lot I year. ‘XX. We on end of all of of in October ‘XX and performance then last took heroes. wonderful winners XX year performance lot high a had control earnings as of of this got release, are

we've We those, had too year, bold to moves toward going clean bolder June divest quite to But end up. I didn't before. look X XX know a this if over that few was on the years doing, it. learn done than Carriage We're And many I didn't respond. back last since what of co-founding made ever I had ’XX, we I of the

mania progress. time Almost go to it was we that's bought leverage, a in over already performance declined, and in would went were ready. to in went down back a it because $X $X. hoping think broke the $X bunch to ‘XX XX, of when [ph] the I of and kind stock it XX in XXXX after a And went this for I again So we

and of great a great have there's the regret go and got bunch in to bite, got We that have big for We opportunity of when like Alderwoods some I've in bought over mostly assets assets. last another XX had we and consolidator ‘XX one big SEI the added a years wonderful [ph] when been different Stewart people ’XX. times I a bunch take if

of were all those of others We the I we one that I think number were big businesses in in those is if bought some opportunity cases It I go would decided if regret both end these and the one regret didn't recognize markets don't that because But there term situations long to year. public. ready. don't there's not do not power at the the big. in stretched the is that wonderful not And ones had company. I doing regret, in of of a to last have earning like we of that

time mean, three nothing there. stretching scenario. is here excited let's us right is some meeting It do integrate, everybody layout roughly to us, and we realistic lot to there's a year, board I will what tried a The here it. take but was It is about but, yesterday go

you time when kind on a focus going Warren in term ago I be long learned scoreboard if of loser. the the studying you're Buffet, that to short a

the the went going went who we big. bold our so want those We work public believer into we and company do and study is transform don't, term. hard the and And under This we went this covers, those think I time believe that company and get you'll turn long to and a of a as that's who market. to well accept nature and

turn I that, over with Ben. want to So to it

Ben Brink

Thank Mel. you, you, Bill. Thank

improved home organic segment, significantly just amount and future, Carriage the as funeral adjusted year the our demonstrated year. for record for results back a EBITDA consolidated cemetery consolidated our in part a return businesses, had Our a new to in incredible an Services beginning performance EBITDA to of progress produce one XXXX year record growth to in margins we revenue

success the our moves over the fourth performance our the markets, positioned While like our as value in other for expectations, we COO large five and strategic of time addition acquisitions has President Bill, Carriage was to and in in performance short fourth along of history quarter next creation strategic the four large operating years. complete made with no quarter the the

now our for And results.

increased EBITDA to million. Total $XXX.X Total million points margin year, EBITDA full revenue XXX $XXX.X total basis Field For million. increased the $X.X X.X% to increased Field to XX.X%.

timeframe adjusted portion had recapturing XX%. that then to XXX share XX% $XX. diluted we what margin or increased to or it. lost $X.XX per million to Again, EBITDA million earnings in a $X.X increased points of XX% And XXXX, and basis consolidated $XX.X EBITDA XXXX to increased Consolidated a

was to For the of the X.X% to $XX.X margins increase $X.XX, revenue quarter quarter for basis our million. XX.X% increased fourth and increased Consolidated the EPS $XX.X in quarter Adjusted an to XX%. total fourth diluted million XX.X% EBITDA increased year-over-year. XXX points

was funeral This improvement leveraged the in X.X%. field XX.X%. number at strong same funeral segment, EBITDA families in the a increase to X.X% store increase $XX.X slightly into and to a of full million, margins XX served small growth revenue basis of our home $XXX.X increase same versus EBITDA field million, revenue year to in points store we And on X.X% increased greater XXXX

volume quarter market growth This fourth share in led The also and point EBITDA funeral home a store a continued funeral increase funeral in store EBITDA, same number show store field the we future growth same and in XXX the was which leveraged into quarter momentum margin. year increase indication revenue, of of of X.X% home served, in X.X% families field X.X% growth to good a in year same a basis growth. over in

quarter integration acquired Acquisition beginning funeral related basis larger margin acquisition the field to of and October. we XXX funeral the two in the fourth declined points in EBITDA of businesses home entirely phases the

full for XXX acquisition XX.X%. basis points While EBITDA increased the margin to field funeral year

the margin the in year Standards of improvement of the year Model. first operating The acquired type increase full and year same integration improvement within recent businesses Operating demonstrates expect most and full we over of we'd in for our acquisitions XXXX their

contract year growth across over is volume our It our funeral the was to revenue home larger greatest entire into higher translate encouraging same see opportunity more revenue, in year store yet our year to portfolio. growth over increase year consistently in

his improving dedication revenue business. increasing to our to memorialize and our contract number in loved a average to stated high on choosing this us service is with families focus Bill their As the remarks, personal ones value of cremation per

XXXX here and in agree days standards well focus recent Council Standards leadership by cremation Houston two averages. The updated with to team, operational Council added of our provide improved our an on along made on near weeks Standards performing insight in debate also up as immediately. dedicated with XX work of to of our review time for business, focused for each results XXXX. two spent at In as thank has very with long their all here additional businesses them managing performance their of top the to Carriage years service partners role for agreed term our expanded over We

and our the with the momentum business a quarter. for fourth of we fantastic was year performance in strong simply he cemetery finished

increased cemetery Same same million year the $XX.X XX.X% increased For X.X% XX.X%. EBITDA to field million. margin field cemetery EBITDA and points to basis cemetery store to increased revenue $XX store XXX

year, cemeteries can growth a the important leadership said have term to necessary look cemeteries continue laid we sales level. our past portfolio size, only times and cemetery people With to operational to including year. progress we forward performance we of the regarding the As over world few inventory our invest months. of foundations the new long at a believe and XX large this a presenting three improve we've development in the class building cemetery throughout opportunities scale organization, the We and

and pet Funeral cremation.com acquisition acquired [ph] trend of also businesses cremation categories. our Home the Rest - that and memorial part end year Haven as These reporting Our new a in include report includes Texas. were of report EBITDA the other revenue Rockwall

We've within broken since these out unique are results Carriage. these businesses of they

I been continued partnered these with to their – have partnership. with Rest Haven, since have we they look impressed We partnered our with development since forward businesses

and Park California. Memorial we history completed homes Virginia on and Rest XX quarter Funeral after in the and acquisition in represents fourth Shortly Memorial of closed New Home Home of Mortuary single and the Lombardo Park we Haven Park the also in and in Memorial the acquisitions, Fairfax acquisition Texas OPAM Lapeer, year Funeral Carriage. of which the the Buffalo, three first years During Rockwall largest Funeral York, Fairfax

once they while Carriage year. members a businesses the We again their various are plans next for integrations. this period arms, each their have over all the course individual open these us definitive like and welcome of at take welcoming developed to integrations team at the family all time short with levels the of In of we for them to to thank would opportunity

for that consistent been are capital the and highly has even for made here future all of in Carriage What that allocation businesses and the us decisions even markets we these of strategic confident more Carriage. have excited is more

EBITDA allow better to consolidated provide XXXX In all of $XX fully we EBITDA expect integrated margin consistent growth field accretive, opportunities, our generate margin will and All these leverage million to businesses higher in us of four adjusted and Carriage multiple annual an more organic to these run and us support by businesses there. grow a in years improve from allowing once field have platforms. EBITDA our overhead and rate

surprise will We cash next to XX time our XX achieve – evaluate integration as focused further and and intensely pay continue cash months. come. a down leverage over with debt opportunities not for on and to profile flow within growing to quality free our these are free the us using to would presented be they businesses that acquisitions It those we opportunities high frame lower

What is the businesses away remains do level cemetery highly of this funeral always, with partner what should and we these independent that remaining not activity take long industry. acquisition believe see investors fragmented term a in to of opportunity are businesses Carriages best while we may indicative

believe built and will when and covers cemetery a at funeral belief in quality Carriage best the operators the chance present that to XX with they They the tested days over and find are years. of culture of dedicated We the ahead course look value company profession that corporate a the of to our has been well-defined those have proverbial service company find of under it. strong a will independent strongly

by will performance leaders full and led local leadership they about to All has communities day committed been the team Carriage families of find care a since one. They a company generally high serve. who

these validates four organization. as we are businesses an of Our who and goal the fantastic is ensure acquisition to integration only

particularly process have the phenomenal work be or have our that Houston we've of would support mention five proud of am here time. to during that's and been four to truly of the done last teams the the new around months not the been all integration remiss of and start I I work done leadership also operational diligence due businesses work and

due total the we additional at of to million senior finance to order of to bringing the of notes quarter acquisition million total in an notes these $XX activity million. one Okay, outstanding the yield $XXX XXXX $XXX price X.XX our $XXX issued fourth a in X.X% to

$XXX we and higher for Additionally profile to to year. allow credit capacity to our a leverage the million amended facility over increase our next

Specifically half down the quarters and leverage a XXXX. our times amendment first times at increase in the is end to maximum of six back the times, end. to of year. down Stepping We X.X five ratio ended X.X of by end three XXXX fall to with the a five I quarter about pro forma times leverage ratio ratio to and leverage our and times year to the expect

generation long term, in these flow transactions. we to of provide necessary. think including our group support us stakeholders, bondholders regards interests to allocate all opportunities best ability Carriage Over cash capital We their and ability the our in expect to the of rapidly of to delever for the banking when the free to like again

over of in months earnings the we to able June profile As our of in we XX lower cost next call highlight will our bond were unsecured notes opportunity at improved $XXX. to capital XXXX when our our release, credit another us give

within by bonds to be near over costs our the rates very by a $X.XX. trading interest interest we control of the accretive have minimum This expect we million EPS deluded would $X to refinancing of and real the is value creation term. current and our lower Given opportunity a approximately

a $XX from due for million XXXX from million XXXX e in primarily produce to to flow we million $X XXXX. the interest to cash in growth Adjusted expense with and free return free increase free XXXX senior down $XX flow $XX.X approximately our will cash was million XXXX. in cash notes that back in issued record flow

lines We of to and These these have home $X million our and included a EBITDA the divested XX in businesses field divest in and earn EBITDA updated press three trend in $X including report or under release. throughout release merge the in included our currently million also businesses decision intent. have made The revenue revenue press of scenario XXXX. and a to letter XXXX the in strategic effect investors the XX funeral in

between on capital $XX.X million XXXX spent XXXX spend in CapEx in and We million being to towards of $XX maintenance. million expect $XX allocated expenditures $XX with and million that in

CapEx quality will differentiated be and inventory spent highly and growth home Our markets. cemetery remodels businesses growing predominately existing on high of

invest excess entire We opportunities in with capital of capital recent our greatly our cost of return our growth expected portfolio rates are excited acquisitions. to with across expand and about of the opportunities those

also investing in annual our committed CapEx. remain We consistent amounts through maintenance of to businesses

Our assets back portfolio return and for S&P Carriage in the XXXX. yield XX.X% to compound annual had term equity return XX these return manage return This to favorably compared internally year of XX.X% preneed our loan benchmark. discretionary XXX bond, trust a XX% XX.X% our long S&P term for of long XX% high compares XX.X% since began to

has benefit of underlying and cemetery funeral generated the care to accrue of accounts. increased the as will performance pruning contracts, cemetery as value petro and income term long to the track continue through our This well

assets in care perpetual EBITDA of in acquired to accounts. will completed cemetery and new revenue The be with recently the trust we Additionally, assumption $XX trust particularly from financial million these accretive the addition our recent immediately acquisitions. assets of earnings we

roughly the In our press were described time three scenario we for the also three expectation press over impact the goals for release, year introduced were a distinct right based we full it recent future in a of described which performance the of year potential high our expectations next refinancing of acquisitions. includes integration timelines bond divestitures of impact our expected of view and yield the accretive the the of at periods, the on release,

three milestones $XXX scenario, and this million, over achieve we profile. $XX $X.XX important per XX%, confident to EBITDA in of financial cash EBITDA of consolidated Carriage flow earnings much over which on are adjusted diluted Based above $XXX adjusted and million, all ability Revenue share consolidated a the credit years. above leverage million, the margin over next free above improved with

All over compelling improvements the and results just opportunity presents coming a creation significant released XXXX these over metrics value years. are

our too. reporting results beginning transformative with part to great will good the to look you Services high to Carriage journey performance way XXXX forward We along

would This And celebrating with down we of really in high looking Award to heroes. read in couple here forward winners. performance a I and year our performance be celebrate like with that, high will had Award Service to heroes our achieved our we weeks them Pinnacle Mexico that. we're the of businesses Pinnacle Annually XX

winners Nicholas Valentine bar and Kent Park, Home, Engelhardt Tom Service Dakin Brown Pinnacle Home, Chapel, Funeral Steadman, cremation Welzenbach, Jeff Memorial of XXXX. being Newkirk, Matthew Pinnacle case, home, best Chris Everly & Chapel, and Day Ken Keenan Jordan Evans Fry Bass Home; are Fuller in Lawn winners Chapel, Patrick the Home, O'Brien, Keenan, Hardwick Home Memorial funeral Funeral Coast's Funeral Funeral Cox, standards percent Funeral Keenan McCleary, Funeral Service and Home in Funeral Sue Cattle Justin Funeral Home, Carrick, Home, Hauck, Mortuaries Lee winners Ashley Dwayne Della Duffy Funeral County Spence Joe best Byron Randy O'Brien West, Funeral Water being Sandford, Chapels, Homes. Jacob Higginbotham, Jason mortuary, Home, were Wash, Mike achieved and Fischer Shane Brevard Funeral Memorial Locals McLaughlin Award Funeral Home, Metz North Charvet, Hardwick, and Lyman, Mueller Jo Westbury Harvey Home, Brian and cremation Jeff Simons, Cremation, XXX Jason Son, Everly Wheatley of and Forest Connor Care, Civic Todd and Connor. Courtney cremation Funeral all Jeff Home, Funeral Well, center, So Funeral options, Dan the Texas, James funeral Home, cremation. home Center Sandstone Vella. Shane, Darling South of Johnny Alan Community and and Award Seaman, Lakeland Dearly Robert Crematory, Funeral Funeral, band Scott Tim Simpson, Phillip Lane Dig

summers, Jay white standards Sterling Home, that Ken and home Son chapel all here winners funeral Joanne Cindy is Freiberg home David And Park, homes Congrats Hoot, Rodriguez, Steve Higgins Terry, Steen, of our & page Funeral, mortuary, it culture cemetery. to pinnacle PL Fry Anthony Finian year. Memorial Mora, Ben Keller James homes, Canelo Terry Lane Scipio, and Oak View funeral homes. Smith funeral achieved this winners. Brian funeral of Crematory. and Funeral mom Mountain Mike James XXX%

our good local term years or to that their business managing over like a revenue unique managing Carriage. There opportunity partner is are this for X% incentive industry no able been Moving These winners. on is program above Carriage for our in partners to award to long grow talent. this grade five have other compound

Everly Wheatley of taking services. home. Thompson Allen think Shane award Charlie a cremation son winners of Egan, Mohler chapels. Greenwood and of Patrick, the and Mohler. homes. Nicholas darling winners. Todd Scott care funeral home funeral all Bob funeral The home. welcome funeral Congratulations fisher are Sandford, final chapels this to funeral

from three truly have to like beyond and but last office John like we'd past Walker three and support And heroes support Ben our above team. Baptist least gone performance not high over recognize the in them. These recognize And months. we'd center. Houston our Poon, to David few publicly

open up can stop I'll and talking that for with here. we questions And

Mel Payne

just one go No let me Ben. more here let time me

we that my was flows. right. and and credit wanted triple it Commerce point Bank but Texas for a but I of own Before business lever history and became bank company, want Carriage could some around years to the you who didn't I XX that the that industry is and yield a Milken up you guy this for I and the and because always me, the it not it do markets baffle you a ou loved best up [ph] public cash years and look know my business but high bank in against in of operate great I and out future where was measure very looks of the that it went at tired landed the attractive years, as a XXs open company the flow companies I started three you in got lucky Michael for cash the it to in XXs. if then into could knew that how you turning mess know biggest becoming a idea questions. the also Then you banking would of have five and and background so took the as I this attractiveness to got measure say

years. the industry in of It's is a per that's platform. So the that the learned cash about my know operating all revenue of the cash. creating EBITDA margin the us rough and I a of and the a dollar best being most time definition became that's lot consolidation after for Over a estimate adjusted consolidated and overhead over you

again great years five one we then XX lot all for launched transition hard management changes a over end XX five the for at and years we been XX you for get that to another and up lot know into past took it in XX, between some turnover then and at years and had our date we XX First five when a was of got XX we to got point accounting first past of operations and journey and it went and and I to had stock dollars. of we years good was

on went we had margin to lost almost XX.X year or at XXXX I year time margin this. trend And year a quarter reports over a up year so and five over incremental quarter to doing X Carriage looked over from over always this you've basis EBITDA ’XX January first. and We from you studied and journey and is year and business if year XX started And because over if a points. up I've of great consolidated the ‘XX adjusted way that not over we XXXX went change XXX in learned at quarter

XX%, return XX% five XX, compounded XXX to stock over about the from that years. And XX went

‘XX five and had what I and second year promoted and step now ‘XX comeback our and launching now I So in we people back then to and partial in we're a Journey. some happened we ’XX Great know Good

to to was We at the revenue XXX.X is benchmark of in was best $XXX time was being were EBITDA level. This If the before revenue terms and want and our standard high all million of of XX.X. an you the is all every a at overhead. cash approximate the look converting in EBITDA that margin back dollar ‘XX the field

the bounced XX, been in So that the same. went the XXX.X, out and XXX, million stayed would our ’XX $X.X $X.X X. XX.X% million performers years We field bounced same After that XXX.X taken another EBITDA EBITDA the million went ‘XX field back XXX.X XX if all to back ‘XX another being to two EBITDA and take [ph] $XX added and we're in out. next drop the will included consolidated ‘XX up XX.X% field went XX.X from low this from at the EBITDA. had because the as if added them you up revenue to now to field margin it and X EBITDA we adjusted the that have are

got it why we all expect We're to the XX% is we'll finish lot margin cash on surpass can over those to taking our issued trend few integrated credit Treasuries the field year to company performers now debt we X.XX points we last would year of adjusted time We that consolidated much XXX year than a three up treasuries right of have get which spread to We first place priced I'm near-term exactly margin. our the year flow are bonds in is spread XXX at promise gone going points people from May have same refinance we're create be don't full there EBITDA know up years. in when of that. our to especially priced view. XXXX XX over refinance, and we I we'll when are a EBITDA point O issued at and the to better stop we free don't was if lot of going by you a year high the margin get higher of just not adjusted ‘XX. debt. year and XX.X consolidated same looking past EBITDA refinanced spread and these out once high the XX.X% that XX as adding if basis over four our of We XX and lower beginning we expect but will no forward XX target, when and this low we low This the $X.XX, we treasuries the XX you the margins, so bonds

platform ability it to we over If last witnessed company a value dividends flexible for leverage financing do Ben new we times flexible earning acquisitions that value our transformation new four years enough will Market capital and will like at to And the cash do believe said, and power, still repurchases. about through very very it just few once in we be new with higher have complete and we like power, high be doesn't our a and of flow capital allocation. and share our create or allocate is Mr. savvy and will this

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Operator

from Alex Instructions] question from of [Operator Your the line first Barrington Paris is Research.

open. is line Your

Unidentified Analyst

sitting Bill far. This Ben and you Thank Alex. Chris for is morning. commentary thus detailed your all for Good Mel, in

can notes to sustain In to for my further provide them had acceleration perhaps the buckets about some that now Fairfax to color this you in on I regard of Mel additional the to and the mentioned specifically to to mentioned through regard Going achieve Bill in relate its typically acceleration. potential Fairfax Fairfax. applying in of with other that capturing business. have and Could its loosely some more regard ability here you and how some could be in best past areas the of business? practices

Mel Payne

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price. a You want this at a a fair a good business fair to price. buy good not at Well business is

managed they've a we'll it's family to look and We take to a to a home has and know these all be going at franchise XX one now one the turn a that but we've get a years improperly franchise high while in high how price it's be this the to massively a systems deal and it's us it company leadership and a got and these say wow there it of years it under it's performance big and going will will a back and cash good a great bought owned to through great product really on to been a expansion buttons free for it's by in that's business emphasized opportunity with and it's be promise and in gonna once funeral around we in these can it'll that so we and share is and one driver gonna it's years another we'll an There's of. the selling brand gonna product. can market for you just build be big been it's I and it going earnings it's haven't in gonna they big grow of and in come land growth Fairfax. Carriage Chappell it's proud years years flow be get big cemetery for niches that be

operational we shifting four of as four or relates price objectives to us or this creation they in thing I mass around Bill's It ought about patient while period for little when strategic looking it develop comments the time will get or company to these to take to your how the been do accelerate right years value different over should five they is you it's was a but humming to that Street not around and dear and pay perhaps a the know in Wall expectations progression. the for to and how know key we it's history be that's the that show that it's as the critical internal some guidance we've ideas how your and excellence to next assess areas of the and our areas efficiencies regard concepts greatest it

I he's don't know articulated if you are can link directly teams Bill formed. what these

incredible You can tell got energy. he's

with work excited people to him. Our are

the over and probably revenue is fruit forecast. I don't next the there. with in think any teams what areas to this on incremental whatever years he have that the see of grows We you those four these few

tell when leave while sustained good have make As add. Ben and and hit the is it. our and know about cold. manager symmetry. people then areas We've properties is I critical that hadn't We know me would miss been No. gonna beaten this bigger Bill's Go and This as down. an how to for mean all and be got then innovator. will property we'd never want top miss much those better company overall they gonna are just our there at and two a excited have high you door our are sales sales been a far a neat Ben areas I over Pretty

in but league the the that's is gonna we but flu got a performance can in build background Our build the ready. us what is you and put it we're system where Bill's I hire culture background know talent my and his. This think

that people follow think follow. I fault. excited we all these lead. mean there It's about all about ideas are range. in is not XX my achieved minded vision of who I can't three that's missing anything a that now not This his talent missing our Leadership in that was anything the years So wants have be Other not is XX of the like and to are people do. there roughly and future. can't to and present

Is won't there down or of you do. whining and a or come anybody field here lot work our mean find people So to are excited. I

You to damn challenge the to up and right. do do the it. ability we we Are have

You're damn right.

we're about your So I of but use didn't and kind mean someone to word where question. a there passionate that bad we answers are hope

Unidentified Analyst

you. Thank

Operator

and Ladies today’s for you Thank and have your day. concludes gentlemen, conference. this wonderful participation a

all You may disconnect.

Carriage Services (CSV) 20 Feb 202019 Q4 Earnings call transcript