CSV - Earnings call transcript Q3 2021 | Carriage Services, Inc.

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

Operator

Good day, and thank you for standing by. Welcome to the Carriage Services Third Quarter 2021 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Steve Metzger, Executive Vice President, Chief Administrative Officer and General Counsel. Please go ahead.

Steve Metzger

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

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

Brink, management Executive to and Today's and on who President Executive Mel Executive our in the are from X formal together with Mel Vision wrote remarks myself, press morning Chief Quezada, myself, comprise June Payne, addition Financial In release. Officer; Chief Chief Mel this Ben Carlos Vice members and Carlos Carriage's Strategic Officer; and a and call Chairman call purpose will with group, Operating and & Officer. about from begin Principles President Vice Ben, whose team

time Formal remarks join followed question-and-answer address by us a will during be questions. they to will any which period,

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

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

Carlos Quezada

performance. our you. all Carriage. out joining record to share the before excitement you time good with to under everyone. spectacular with Best our determination day our conditions, of in and of our Directors, principles on this and you On thank a vision guiding and for Thank for consistent Carriage as you, gratitude. behalf call and Executive morning, and of as you, the day and amazing What consequence Thank have Board of with mission pandemic. But be call a the do To for performance Steve, our such quarter X start, to news we all we take difficult I'd commitment continuing we compassion, all demonstrate recognize helping Services you honor in our of excellence Team and of high I and that all families Being team like third privilege record is you is and humility representing this with this driver a that on

business. XX and know our Over I to past and and each while teams, opportunities unique many managing time been have amazing visiting homes partners their months, getting communities relationships with spending phenomenal their the and quality for building funeral cemeteries

we the it's these consolidators some have well we're I of force right visits, it full what in market restrictions. regardless gaining carriage the framework the COVID-XX over call as people. as independent and reason During At witnessed firms many with culture starts And Carriage, high-performance share tool. why about

Charvet, in having Titusville, Brevard Funeral star, managing continues Courtney at permanently. their shut examples. be his to Home some share a doors partner Florida, me Let shining North competitors

focus back-office items, to Carter, beyond Houston, the what COVID-XX funeral Bradshaw-Carter cases. he against in growth his XXXX, redirected is up his partner For support compared same that getting partnering XX.X% needed 'XX growing of time of and has over Courtney Texas. volume volumes managing by pre-COVID in XXXX, Memorial eliminating September loves, the Tripp After Funeral period he XX% Carriage his on business. year-to-date Services and now is in with he

XXXX, cases. year-to-date new September COVID-XX partner Garden Tripp San has the in Jose, that to same Geneva of Chitty, Darling her sample Chapel end COVID-XX managing driven our the XX% in portfolio following a partners high-performance this cases. compared is market very by when businesses that period of She of of are characteristics the these And all XX% business Geneva just California. XX% managing a up & compared is want For year-to-date managing of is XXXX became the to are managing growth same and gaining right XXXX. is growth is of results. partner leader beyond that in tool the they hungry, at is evident against that the and highly XXXX, The period and and who XX.X% of small they across beyond grown win. September Fischer share partners in correlated competitive, by

funeral margin the in field Total XX.X%, results of business million $XXX outstanding annual X.X%. in an Being XXX These follows. of funeral as Total our and operating made XXXX to managing COVID-XX detail or pandemic with the X-year catalysts explained Letter, in today. partners. million were XX.X%. our the the by points. November or of Good ready XX,XXX, our of an Best EBITDA to time Best increase nature updated in standards, nation contract changes operations field of the or team every reflect contracts XXXX X-year our alignment and $X.X of to the leverage February the of driven contracts to increase of partner of results performance. Our maximize each of in Great field fully revenue X,XXX Being and Funeral million, programs, XX.X%. or so, funeral Since $X.X of operating will in average an XXXX more this well which higher by teams XX%, revenue and $X,XXX, Steve Standards were Shareholder opportunity, an $XX.X increase of funeral continued made total to million, by EBITDA Council managing are basis speak passion quarter members increase an incentive high-performance and are prepared have was segment hit XXXX, Total do per the the standards, the third which of of funeral $XX.X of high-performance increase our The which

our Now XXXX let's cemetery results. third go quarter over high-performance

sales We continue streams sustainable sales across program. preneed with and plan development cemetery we the velocity Since in the projects cemetery supercharged property to our the has sales been exponential. of portfolio high-performance products inception as deploy our creation high-performance keep capital our accelerating grow of innovative teams of the for growth created cemeteries,

preneed allows with nature intrinsic regardless can while XX.X% million, $XX.X higher of XXXX, significant of our options increase Starting XXXX high-performance cemetery The with as our of cremation million of all of than those who cemeteries disposition. total their of first with quarter third sales and the cemetery the quarter professionals immediate million journey. transformational or or beginning products $X.X for presenting opportunities. needs of than sales Our from, year of was performance choose which was $X.X the higher final increase at-need and quarter to they last their to burial them growth an families an XX.X% or preceding attend services

XXXX, XE revamped just advanced able planning XXXX stages tool is Hills XXXX. tremendous leaders of September this right and However, where success in to for the through ending in Rolling have Stackhouse early at Nadu months the rate high-performance her is California, at to the X target we August were teams, Since opportunity program Richmond, of find which big been with we a in having XXX.X% development. the

will generate Bunkers in at their have Rockwall, These teams sales. California, are Oakmont Panama of the the and teams Lafayette, advanced created and just newer Vegas, other where planning Rest Nevada. Oklahoma Park name We force Kent-Forest Texas, in Rest that Fairfax Fairfax, like City, performance we Memorial adding Memorial tools Florida, planning a Rockwell skills and we are Cemetery have cemeteries all to in Virginia Oklahoma, teams Park building high using Cemetery Haven also Las up in and in be Haven few. advanced teaching Moreover, in sales Lawn City, Cemetery

of million, an and $XX.X As come. Total still will an an million of revenue September $XX.X best million, points. increase of EBITDA performance, or million, increase third million of XX cemetery field million hear Total revenue months million $XX.X of or $XX.X increase $X.X increase of XX.X%, cemetery higher And operation the you XX.X%, million, amazing an of points. cemetery XXXX, of EBITDA $X.X to operating $XX.X X total that or X,XXX cemetery margin of XX.X%. is field field increase or for field cemetery the XX.X%. margin of total XX.X%, total following basis cemetery ending cemetery EBITDA you increase of of basis quarter the Total an an yet XX.X%. XXXX EBITDA know $XX field operating And

process the further even XXX We robust high-performance than before. Dynamics implementation accelerate and have a of we result Sales will the sales ever have which marketing and sales and completed named system, dynamic is CRM, Microsoft Edge, and

and cemeteries tool We goodbyes. leaders in value to communicate, join professionals more to have XE final preplanning the the the our stay teams soft at the new managers early their while This of XXXX. sales program our interact educate launched growing right give with system pilot with to to X edge and in sales connected families will community of

fueled be deliver savvy We trends new in the our and by future. programs foreseeable organic lead sales to over investments and tool, significant expect Sales growth generation continued sales Edge, high-performance

force and quarter Texas. test program XXXX now seminars of full Oklahoma, have in we Our in successful during seminars the extremely conducted was California and second is and

generated preneed and Virginia a own attendees sales this our sales some end before preneed are program year. in number which And start cemetery new leads performance. expectations, will to Florida, now has the already funnel, our This the above in reflect our of quarter fourth of scheduled Louisiana in of part and resulted

quarter quarter in and it's And Carriage. truly time funeral both Our best to come. an with segments, yet great a be the is third cemetery and to was amazing

accelerating those organically, we're today. per our flexible close to High-Performance our more momentum our Carriage share it while say we to to in we gap our current value As closing, selective over ownership continue Flywheel. discipline, a creation to turn will partners on per allocation that Services continue and entered I we have meet will In strategic but can capital Thank the Steve looking our to highly detail and acquisition criteria will I savvy which speak addition spot. share, stock price that intrinsic right for you, And in grow Steve. sweet between to value

Steve Metzger

Carlos. you, Thank

valuation approach this how key just that on talk more we'll capital repurchase year, current All finished several previously about significant written and performance debt-to-EBITDA based of articulated ratio positioned the we line value our of to on us of quarter to of activity well metrics about the share which repurchases. drives has discussed outstanding we've view year. number net capital our allocation our the you Despite our to Xx, target Then intrinsic allows stock described continue and on exciting with of us opportunities to in the opportunities. a share the execute deployment throughout focus a of with

in and Carriage to meet to much example, family. a will the share For activity, select the third of also of repurchase spent additions we believe continuing great owners home who number addition talk and the we cemetery with funeral to make quarter

for and out out and As time more growth. we you testimonials company and than of know more on Carriage, about our We to these their succession businesses, invite and owners former to time. owners ever, all about of these about hear invite their about now website to those Carriage. interested gotten believe We when via stories to experiences we're transition and learn a all entering owners we our many you in more learning some great have with video check personal reach share they've

team talented owners proud. our each to to about more encourage best who here owners who we learn business, And we're excited ensure they're different provide the their necessary With at working a also our can could was just visit the to can of in their exciting plan one case. visit, legacy for timetable transition feedback is best and how them quarter solution and center, for it with the support hosted with closely conversations We will team help comfortable recently and owners the providing all more we're about from we're with how be XXXX. the such information his to owner currently decision. the help impressions and talking to succession updates said, and come Carriage particular and these hear make partner ensure next The business to throughout forward to have of that they and about business. this We these and which a look

of quarterly or we note reasons. is that by acquisition decision driven that don't investment targets, You'll create annual couple key a and

high-quality to are, impossible criteria we'll talk our predict fit when they their it's about First, will when be acquisition strategic ready businesses be But the succession ready. select to that plans.

opportunities Additionally, given allocation not capital a are at created all time. equal

example that detail the making to options approach and strong X.X decision best here remaining our It's capital discipline as a careful the for compare capital, be also capital only exercise us and Currently, return other of we that's opportunity pause noting the acquisitions Ben past great our ensure Before for requires to deployment on in. to and allocation. it independent discuss worth to will best invest how is shortly, strongest high that our a and businesses, very that's in years more a to bar, to our truly a position focus deliberate shareholders. long-term on on

integrating As XXXX. large know, We paying Carriage our then to made our proceeded who significant to several throughout and successfully businesses focus those dedicate you XXXX at also end while those of XXXX. debt of we down follow the acquisitions

well to and other of to our now our continuing with positioned advantage capital opportunities new maintaining balance through leverage allocation while back sheet acquisition get low-cost are ratio. We to target take attractive growth

XXXX growth outlook As we and is through beyond, the look acquisition road down our bright. at for

businesses in as remain sheet business, of only to a partner Carriage they our happen with owners compensation and us the allow people employees. ready balance what will to plan not chapters the more next owners opportunity best those who succession and the When highly on a framework is lives. in with our become visit with more performance, very we us industry. Our talk our transition know about approach to great of focus also option, to want to their are efforts in the but allocation as selective considering to these the This their often what incentive believe with best provides we

plans significant for $X.XX. and for Our how and this provide found and pay-for-performance one can XXXX, simply which benefits top example looking at align diluted be performers. A per and with of our employees incentive performance by upside compensation good X-year approach shareholders pay directly was share adjusted it earnings our

per amount corporate Our XXXX field compensation equaled time. share in that the incentive at and paid an totaled approximately $X.XX

responsible XXXX share paid to XX%. you employees received performance of our driving If note shareholders our $X.XX rewarded the XX% the that add in the EPS earnings the per while you'll to that with $X.XX, for the upside, was of approximately team outstanding remaining directly total

alignment us that incentive math large that's related talented as separation-related margin while this groups, but we motivate overhead helps performance. increase total percentage people the accelerate, for believe and only top that elevated prior retain Relatedly, costs. and Now and in performance it's helps to incremental drive also higher this continues great such to due expenses both attract and performance, revenue items total from benefit and not accruals a as compensation shareholders pandemic talent nonrecurring has year of been as incentivized

accruals We to expect contemplates and these women of to performance motivate overhead and continue items with incentive over the of the forecast nonrecurring range margin for our This XXXX, and responsible a impressive XX%. results. the associated target within percentage continued XX% reward course of compensation normalize to revenue men as elevated settling to directly the

look we place, And who current members at the is front we with Carriage. along look that forward over strong us with through to the as in about As all acquisitions, to With we team family Carlos said, best XXXX. in of exciting Carriage excited XXXX be turn to believe here an Ben. and there's I'll finish new that, to the into it forward much welcoming

Ben Brink

execution our to myself broad X tremendous Carriage Carlos' gives only comments transformation years. team and across and here third past Thank will that the you, high-performance our the their incredible managing The company-wide, quarter entire performance partners Steve. accelerate. I'll has a that echo leadership amount our and at yours' confidence Flywheel over continue showed record High-Performance country of teams Carriage the that on by the occurred

to results. on the Now

million. diluted increased revenue basis revenue EBITDA has adjusted EBITDA XX.X%, For per per and increased increased EBITDA points XX% quarter, Year-to-date, the consolidated share increased $XX.X consolidated grown million. expanded XXX to to XX.X% increased has margin million. earnings $XX XX.X% diluted increased and Adjusted basis EBITDA has earnings Adjusted to share to to $X.XX. $XXX has million. margin third Adjusted XX.X% XX.X%, $X.XX. consolidated consolidated to XXX XX.X% to points Adjusted $XX.X to adjusted XX.X%

Great include recognize shareholder-aligned, to available plan Carriage value repurchased The reflected of that shares the in fully third diluted creation only of actual a and are full impact of in The prior at resumption first flexibility months, into adjusted note of X to activity represents our to $XX.X $X.XX approximately May, share an XX.X% shares repurchase basis, shares million, The cash a of share and of every in of basic incentive debt our free is flow order purchase This approximately have creation the purchase positioned shares million increase. count The we interest million. average our Carriage of XX.X% forma XXXX. of In forma purchase versus adjusted senior share total the cash we of flow generate note $X.XX, the share outstanding the here amount by participants XX increased end of believe flow our $X.XXX year-over-year adjusted capital free grants. transformation decreased total repurchased free of forma generated has price X.X% $XX.XX believe diluted to our shares $X.X plus ability value of pro million outstanding to XX average creation amount $XX.X quarter shares high-performance fund adjusted cash year-to-date outstanding to diluted XX.X%. GAAP $XX.XX consolidated flow repurchases basis, shares on brought the recent the quarter. of annual the price maintaining shares to diluted a to cash of modest demonstrates ability third lower per refinancing. our majority opportunities. X.X and of For the quarter to total end reported reported adjusted $XX.X the we reoccurring in EPS an more pro In a of On equity of margin second senior our third was a enable quarter, million the amount be the our million value repurchases for shares growing outstanding, margin the more value cash XXX,XXX XX our has revenue forma million. at $XX.XXX capital while this occurred XXX,XXX outstanding for use the X.X excludes million, invested basic free over while at our X.X where vested we Therefore, high option points intrinsic the XX.X to a ratio. to with vested was Carriage of cash refinancing the has shareholder wisely of first internally turn completion appropriate incredible shares available XX.X% flow equity to from to consisting necessary of to pro related as XXXX. basis pro grow will million quarter EBITDA months, cost financial This of to Good through the allocate and a Post it long-term in-the-money the Carriage. past a free allocation our dollar to approximately will

was year-to-date reported earnings the EPS as pro versus $X.XX was XX diluted $X.XX equals last months to Our first adjusted compared diluted last reported. X $X.XX, the $X.XX forma of compared And to per which our adjusted increase XXX.X% share year. months

shares equal the Directors We are Board of authorization equity program. market the on approximately intend at range of repurchase highest current remain to million an of best to to the repurchase current share and brings our that $XX we million, actively available time, our discounted and if by capital range. $XX, current for highly to excited continue XX% additional of our per Based value to believe $XX use this This they approval the our capitalization. share to own to our our is our announce repurchase to of shares we intrinsic updated $XX

our announce represents $X.XX to in This only of the beginning our We per December an to dividend, cash payment with increase through line back million yield. of a expenditures next are and our $XXX,XXX annual $X also annual the is capital on additional $X.X dividend Board our dividend X. of at pleased with growth maintain million $XX.X a approval dividend X% dividends goal equity paid we've of year a stated to and million invested expenditures. maintenance in capital businesses Year-to-date, into

Our development will and of growth be focused cemetery portfolio. inventory continue differentiated and primarily high-quality on across CapEx has our to

keep will within Carriage about continue on wisely allocate and We inviting. opportunities excited the in growing with to capital. that the Flywheel capital of returns remain CapEx maintenance support accelerating facilities fresh also to generating businesses discipline invested spend We and our necessary High-Performance the to existing and our

performance leverage as at the our credit third free to our operating to ratio, cash remained million we of agreement, as repurchases end essentially continued Our Xx, bank debt $XX.X leverage We even were and quarter. EBITDA consolidated able the of to the invested stated in flow strong by our defined around at goal adjusted maintain X.XXx due in generation the share total quarter. flat

total a $XXX with our complete amendment expect on banking are days. to increase the in and coming an our of current we to process that size we $XX the million partners facility Additionally, of credit by million, working to

of future Right account takes outstanding once estimates into known adjusted in XX% we only count, an scenario control. ratio total factors coupled this within are Given is allocation Roughly to approximately X-year Right our again to free consolidated accretive adjusted are performance, our raise share EBITDA and maintaining cash we The our capital Roughly are with Roughly repurchases the Ranges outlook. while excited our debt Right included that accelerating our updated operating share and of towards rolling around performance and allocation at Xx. flow of lower have realistic scenario financial our X-quarter The

basis, total $XXX range to For $XXX to $X.XX we million interest margin million, forma in to flow be million, adjusted of lower pro range of revenue million. a and XX%, $X.XX, be and $X.XX. the adjusted $XX Right to $XXX in $XX adjusted million year, EBITDA adjusted count to expense On forma earnings XXXX, lower Range Roughly the expect between expectations to reported, XX.X% share EBITDA for $XXX of diluted diluted currently share consolidated range to to adjusted again, we million consolidated while the per share as pro per free full cash of expect be using $X.XX earnings

methodology just time, a note repurchases per our how new aka, illustrate of truly to $X.XX. flow May release impact adjusted X a pricing over yield growth range flow For respect. no intrinsic forma dated with a year share $XXX It industry would and short we In for next for forward. $X.XX free investors consolidated XX%, introduced XX.X%, to amount versus the at years, of million provide $XXX $XXX adjusted margin year, to diluted Tom Dangerfield, the Carriage equity EBITDA XXXX, total Adjusted EBITDA a to $X.XX, of our refinancing to to repurchases consolidated also getting XX, allocate range Rodney opportunities of we revenue million capital almost the for million, continued cash gap how diluted pro at million growing, press earnings share and value towards X.XX% our view to of and of closing of flow was to over share unsecured free time. intended compared $X.XX range free XX% million moving leading. other adjusted margin $XX EPS of Adjusted our bond $XXX in of Brady, remarkable for of adjusted next share significant of for million, senior to XX% XX.X% per cash the aka, to $XX full we framework cash of

of senior average X.X%, reduction capital annually. X.XX% on of basis a Our from is rate new notes current interest weighted in to the decrease from X.X% points cost the our X.XXX% due to XXX

appropriate value our share cash of with want intend methodology sustain to Roughly $XX to amount and intrinsic flow, value free calculate per increase our is midpoint provide to value using believe update cash little using By to regular the produce of an to range investors our ability flow quarter Right since XX.X% share we free to release Right range first ago. X.X% range equal which we range intrinsic who per second XX.X% Right updated our yield Given and of it everybody an equity $XX.XX X.X%. this a joined range or Roughly the Roughly on I represents This down months we a high us per a morning. a basis. round intrinsic of of $XX. press cash over Range next Roughly value share to flow year outstanding X shares September million, call free Right considerably methodology XXXX. million from or of diluted pro We Applying increase per $XX.XX, a on of of per share of cash adjusted forma range flow a of free the of expectation XX and for $X Right $XX.X $XX.XXX cash intrinsic our equity to as equals would to introduced thank flow this $XX Roughly yield in this a $XX share free

our website, our Letters visit of Investor more beginning the and encourage an the insight questions the would with our long-term of we'll highly questions. amount story, great over happy has which or releases, incredible Carriage open with to incredible and And into you Relations and have. to give us even all for that press to might I any that, call new XXXX, than past a any Mel's recent depth X are occurred years. Then I'll you call our vision If investor provide great Carriage Shareholder serious transformation up answer high-performance for and be read more

Operator

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

Alex Paris

taking congrats beat on raise. Thanks another this for call and morning, my and

a press the nitty-gritty, release questions, sort starting market with get picture a qualitative share lot prepared of rather I'll covered gains. of You ask in the comments, and or your into bigger than couple so

in little independents if these you to it's press families or release, consolidators wondering the ways both that some or new of bit to they've in and a you some XXXX. I more examples color families. XXXX been serving unwilling As from said was can new as serve to just you're ways unable come us adapt give and

Carlos Quezada

Thank Alex. Carlos. This Absolutely. is you,

So so, price attracted. competitor in not even able not to even they just in partners go homes They than and yes, a because things. to feel we we Many another to are creative paying go our do and services how up some funeral absolutely. and it's times, with that families. who doing on also And higher need. end how it families innovative doing and offering above price. amazing serve beyond by What's ways, just that managing such are not or related going It's incredible other those that is are options willing families about

people to individual of ways willing our because of where that these able I On operations or few some amazing competitors examples these managing other Thursday, the share today whether consolidators. where are what we directors to an have we Carriage. stories like services have to a many just they stories incredible prepared other firms market maybe in some detail call do of shared are hear And all of to operations go are customize can't. remarks in partners that just have my that made of the into gain over been Some we of across

And so gain that's to market funeral across able why we've share broadly portfolio and significant homes been cemeteries. our of

Alex Paris

Great. I That's appreciate color. that. good

Next they've guess, the due I sure, and share rates. elevated, But Obviously, also market America COVID. death aging of for question, for to due gains, been to Carriage.

what's historically? I've other always basis been the QX, market deaths, perhaps was death that annual XX% COVID America? elevated You In going rate -- the to said rates America. aging to at XXX What elevated now, remain a are Obviously, normal, of in has that aging forward? of two Are to the due suggesting for to recalled year. XX death rate related COVID. new it's we points process balance, death to the volume we of of going expectation things, going the related share, be normalizing during higher your per

Mel Payne

This cases, is in and his gains. covered release the share in Mel, And the Alex. were comments, Carlos COVID even deaths, market many press in

told when that do hearts has it was COVID a mean could wasn't. a choice of was won to in and they have somebody do. family able had served cases, it what because minds else before, a you and family when But we them non-COVID, their you Just that's do didn't lots it or about were wouldn't

would there gains. less in over was, deaths was also started death the in And lot mix, cremation, so rate fact time, like company the ago, of a about XX And per traditional. And were XXX,XXX the market a COVID more I concept or X% share be when that. change the years something

So that years. ticked revenue, to sources boomers actually tomorrow, XX die. I to per didn't but started XXX,XXX lot rate a next death Well, down And happen. back baby was the to you'd day. when would increase start death convinced the rate the of be the instead, then about Which the would X.X% lose from over

share? And rate up at market even get going to about entirely rate started is, focusing we we so can death Whatever do, thinking how of be so want more grow the the do we death and on best what we quit it. I

of was the bigger, people and but in medicine healthy, it advances vulnerable at didn't vengeance. they necessarily COVID, unfortunately, with least and medicine, and weren't then if being a and this a nursing living more will that that attack much was necessarily life. healthier. healthy had perfect better the industry people you've And And getting assisted so much not this designed able older And grow live living think grew science, older time, homes, lot almost did all lives got. of There bizarrely the I to they not keep virus group, to procedures their checkups, them maintenance, now

endemic. do COVID I be So of first will all, think

death to will without than that the the rate begin also, I COVID, baby think I and normalized year and around even depending the on higher higher to becoming pre-COVID. think world. consensus die well. that's a boomers, at lead rate degree the will variant, And the a as And the

Whatever we'll can't the we the rate main XX the what more about And looking what forward, the reason control, better think years, getting everything and can I So want get us more. is on, looking Carriage. to at share And so as death that's rate for last time. it's is, for death XXX% of opposed higher we normalized what have a we drives various focus yet, reasons. we not

Alex Paris

and thank aging XX oldest old. Great. the baby living medicine, just years for remember of are that. thing. for access the ago, note of Well, was Yes, of investment people to XX America the longer, industry I that sort theme would that now you years boomers the I

we with So unfortunately, start can't should live that, death forever, all higher rate. I we annualized agree but that a would seeing

well your repurchase So prepared repurchases It aggressive XXXX share might be as appreciate like versus of as more But comments in share quarter. your press comments. potential my release is mix repurchases M&A. sounds a be more fourth I the last in M&A. in the and you'll on question

of secondly, considering what you all, players are of a us high-growth succession thoughts and of larger that color, I'm that there that players that little planning. sort that are on number color First idea? thing. markets, maybe they're a there's And on give said You your assuming additional pipeline? could

Steve Metzger

this on approach. the is Steve. Ben and Alex, let cover repurchase Yes. the share comment I'll little a pipeline bit

a we're over that frankly, several relationships we businesses number years. with developed yes, quite with conversations having of the have So

remarks, the need mentioned and make as they're more important them, and is that for and seeing so ready. sure we're them in ready, they timing are to And more who of

spread fewer more more in model country. So are our businesses, business bigger, efficient which a throughout you're we that footprint, is These in like so terms better to out the and rooftops calls, geographic seeing as at. of describe, they're we look

QX, will with those where that everybody. there. progressed there think we a have want the yes, over Right to talk point be quarter to share more we now, past to about So conversations

we little that is this my look how In Ben remarks, a repurchases, as be significant based to of us the bit own opportunity terms our Because, in intrinsic can And versus real focused Ben over it that, piece. the it of forces mentioned a I'll really if discipline and forces we now. that's I these and repurchase It that value. following are are to on only bit on us. share on at mentioned, that selective and standouts. right little think turn the kind comment he with we And appreciate businesses repurchase

Ben Brink

pretty where I simple, discount it's our to we Alex, The value think shares Yes, intrinsic is trade compared right? I believe mean, wide.

opportunities have, to It's ever then high not We what than decision. Carriage incredibly want gives that those partner But is and that here how we've and to believe the flow where aggressive while go this a an where be, are. that saying share very acquisition get before, a us so like coming and leverage what and capital repurchase And where there's high-quality value, from in in, maintaining intrinsic acquisitions from have we opportunity compared flexibility there's we can at we've and acquisition It's exciting. think flexibility standpoint. markets program. here, an for is those acquire what flexibility And operational a allocation activity active an either/or we we're to weighing perspective, been different growth along through how time with bar cash our of been the is, we opportunities. is kind doing with versus as I

Mel Payne

and Great ending remarks, written X-year value interesting, what's development. the in X-year to returns really scenario Year not participants for going Alex, but Ben in It's just in investors hit new shareholder XX it incentive second share more Good I cemetery everyone Carriage, very frame the seeing for the also to high his II we but be outside the Good the for product who's what going and does. the stake will sales. the out, we we else an XX everybody to a want That's is that's large 'XX. the do And investment, at Carriage, compounded participants What think it how the Journey. to Great the plan. Five in company. off, put is got put a plan a out year, is well time of of priority -- beginning throughout creation will We're will really We X-year shut not now,

have the We built has Carlos talent. this.

Very sell will they margin. and it it. build You high will it. get They

something those capital but invested we And one on will returns are I look that that's forward back doing I was simple. central cut to always legal. So mean, thing not on.

see in to it Now get I action.

how put this. for call enterprise will those scenarios. don't X cash a yield. company of free we'll scenarios the especially And EPS, we're for amount EBITDA, become back value off equity range range sophisticated some years. see going other And wouldn't And it, X the different then projects, so it is that, be shareholder lawyers It's like and We'll each top different the maybe top we'll the because the do years, to a learn take repurchases the company the this of they using capital That's and years. And This for become. XX/XX, head. predictable has and to XX% our wouldn't we each has very go with valuation allocation why of internal we're just this be and out to people full And put good X-year not XX% full capital them. then And Ranges values me methodology any use This thing. now do growth the it's Maybe possible We'll but will -- in let XX/XX. scenario that why put XX%. who something to it performance of have acquisitions, we share of want scenarios. other for of XX%, on then serious is will flow those stuff. a how X able for Right should it using the seriously. X those into And will Roughly put it

company, get about intrinsic we're I and Now optimum remarks. share. per to last always where in create becoming investors something the of I'll This our wanted say my to great that cash all is free flow value the

Alex Paris

quarter results. Great. Thanks, And the thanks, congratulations a Mel, on hearty team. again, third strong

Operator

question Kelly Partners. Our Capital Roth comes next with from George

George Kelly

for Thanks taking questions. my everybody. Hi,

you about a year. Just your you debt next prepared a talked XXXX to your make bit but this bit understand you growing and have, to I start with, sure in targets, remarks, have

that just flexibility But different in statement any uses? more capital you're of are sort And so your to income give is you? M&A including these towards projections, all yourselves not

Ben Brink

being in It's where Capex. there. conservative on in thinking scenario, with M&A kind this internal about, no land then just share There's of might really and growth No. debt repurchases

more allocation allocation are we to we get as Like towards, M&A. scenarios. we'll going capital different as said, the No in year-end in provide those report capital February, we're of scenarios -- there. So that Mel

Mel Payne

covered the There covered. will more Ben of front. be and to M&A more to until news intrinsic M&A, news We'll just value the opinion. we on on beginning closer decided We'll have wait Mr. a like Steve the year. have team getting Market But Price, as our

those have will lot X to to and news the judge more towards other. able or should one talk And a be there'll biased So be be anybody about, we scenarios. we'll whether

George Kelly

Okay.

material, share pricing? forecasting Or versus sticking just are kind burial growth forward? then in price most how side your mean, there's new such going you're additional quarter we, pricing level we XXXX anything And is growth me, about great. with I'm question just so both. you in at next especially curious, of is in nice been targets. for I a there volume? recent this the And on Okay, opportunity are the that Can

Ben Brink

of that are loved is one celebration serve. able focus. those not pricing to to families, really the that cremation providing really and the revenue by meaningful how we're for Cremation, and they opportunity. and that grow for value families, that contract, the don't burial believe plan families particular, the to We with the families to there's times. opportunity the memorial That our engage average on oftentimes more service, life opportunity in looking more That's George, serving better, partners able we it's the right? managing know have at during families even volume, side, by to per their both continued have teams a

kind year on as same-store terms forward, look a project are of volume we being as margin in conservative as a for next there, of in it and from we we basis very ranges these the down Now bring growth in what expectations or perspective. put

is contract. So growing focus average Really, that at we're per the that's it. revenue how looking

Mel Payne

So but is is George, no do may shock, There come a Look, this we on no Mel. this pricing. pricing here the as funeral side.

years of at idea compounded any what individual do grow their very managing products have revenue over What wouldn't price X the is I partners So and to incentivized services. high they're margins.

you So revenue a growth, to from you they know layered grow that, that's anything if X, and can compounded XX%. anywhere program X%, get over incentive X%, over

of of XXX% to revenue. X% compounded. it's growth So in pricing, but volume your X-year And to standards they XX% that a compounded includes we are have have know also

what care know look into we'll they of as compounded the related volume get convert XX% we get over to It to will leverage because it they operating revenue, as X XX% is years the revenue simple long don't We begin and incremental it. however will EBITDA. and So do.

don't rid get that we of got into all when process of we budgets. pricing. the rid of So got nitty-gritty We

George Kelly

fully to That's thank platform, new any that excited this going are would implement you helpful. of you're Sales is if background Edge. And about helpful. features That's all just -- have take what tech missed could think it that Just it's I that but the more of last had, I called then some I how may on most you. long question Curious about? be And more to it? for Okay. me, talk just this, about

Carlos Quezada

This Carlos. George. Absolutely, is

in customize right, Microsoft on have Dynamics it's basically, founded of to broad process XXX a your to get when to then customize you Those it needs this So to you CRM, these case. And very as have that one you needs. specific softwares, in are upon know, sales you is packages a that Edge CRM. Sales really of the

basically cemeteries. the whether end a have on will are all inquiries things done activity have of product direct they're this your death track ratios, able sales our system at-need, on or to also and implementation reminders third-party and families. personal now for a X of have ratios, appointment counselors that where is service is consultants, absolutely ratios, that of also or designed Reminders can our all understand business that be anniversaries company mailing, we that they serve launch will that going on. Create do will program but family already, into pilot that be reminders accelerate technology, They through in different or tech, What our funnel, their journey a birthdays to of advanced on will follow-ups. planning based the nature. presentation launched for customer able website it's assistant process marketing teams We even that whether closing campaigns a

had that will continue something accelerate cemetery your George? had we that prior. even have, before sales And Does we This of velocity some other we X sort at by some is partners never that to Carriage, beginning our the managing other XXXX. it So answer pilot system over launch in broadly question, of these time. though definitely every than cemeteries,

George Kelly

was And congrats the questions. on Yes. hanks and quarter great. Yes. That t my taking for

Operator

from Burke comes Liam Our question Riley. with next B.

Liam Burke

be share market the increased The going gains growth it mortality all burials and burial that to Is trend general that a are rates. seems of against contract driving as percent overall of your contracts there? year-over-year,

Carlos Quezada

Liam. you, question. thank So Great

of burial. family But They the in, may this don't burial. asking an options explaining family, may it's goes it know their want family because they about really say of initial may they want. all process our the idea So cremation, change When be let's of counselor they what team educating the ideas that think their family they really makes service believe by way. At-need think We the life is rate. that a we products celebrate family, of burial become process very lived that think that process of They services and how specific driving that with tremendous want that all cremation. have that different options, they actually for But to may difference. of some presenting and creative on that

after that COVID, they have now that are to to perhaps addition have. service COVID In families want to willing during didn't

Liam Burke

there? terms sales right force the and digits. and about of more the prepared or And enough. do Sales Carlos, touched course still you Fair of size the software. force? you of development use Where revamping comments in the are do cemetery at And have work your are after the double you to the Okay. of on the sales you are

Carlos Quezada

our opportunity do, change work across we we lot process And enable an portfolio. the started find broadly programs already which forward, A family compensation because was moving advanced on is we then the to where even see foreseeable the on service more grow which XXXX right our planning service have with that the teams team, family right? most we who, development. is And teams just will for our and sales cemeteries team so the future. have advanced educational would accelerated cemetery move planning broadly. it At-need, mainly we and to continue into But early we of the That's to the stages where though most opportunity

Mel Payne

I like the everybody. I add I'm going spot, and just there, something do on This is put Mel. to to wanted Carlos

front have think but of what demographic think only time Houston at is we're talking before? master weren't advance on Atlanta. about Which all to alignment areas basis. go, used bigger had which we we would high us, build-out include master and does it in, to for the with where was The with innings, in the planning, not World various them where performance a the Carlos would think in one. product you in sales terms sales Series which the X-inning team inning include frequent I X going about, those groups never we would also game if And we we are And of more still have last in like, a then Astros, That large had, So it they a plans. When parks, won really say you if about oh, plans sustainable in include and Carlos in all way can game. that's we one? he of a back to is again. But being last Houston think night, baseball

Carlos Quezada

hitters fourth you, at in we're say Thank to a base home single every full lined with of I runs. probably the house big Mel. bottom hit would with the Absolutely. already

Mel Payne

the of sounds fourth. good the game. that of Bottom rest the for Hey,

Liam Burke

Fair Mel. enough. you, Thank Thank Carlos. you,

Operator

[Operator Chris Sidoti. Instructions] question McGinnis We from with have a

Chris McGinnis

earnings Congrats obviously release. all-around really on strong a

you lot at that Can look Just how can about have at look transformed how that years in ago, team maybe just look refocus differently of going that about maybe just talk sense in M&A, you if forward? terms looked maybe the X back to than a you opportunities you M&A the you you the talk may opportunities today. you've

Steve Metzger

great Chris. is question, This It's Steve. Yes. a

at the end realized I stepped think really focused the at and went model back And that one that time. we Carriage really We all referenced us. where really We acquisition our to into accelerates type for really that's on were on well. dug into start the from the and transformation, particularly them, we our away bring was them. 'XX we it when And it want integration is a approach. performance. of we it, we They bigger part we came 'XX. lot businesses of look because of Those

What set of cemeteries. what acquisitions, spoken It our obviously, drawing at businesses? of that we the Carlos want a bit. just with again, this has the to model like encourage short, performance call businesses. efficiencies criteria for Shareholder this highlighted for us. from those to those We say, Letter we folks take a and And broke rooftops. the took year So do that. the look In but an Mel's in on this away Annual markets, look also volume, team, as obviously, that. was, when strategic acquisition bigger say to executive based team, to fewer to a performance down that back Bigger redefine does like businesses, board us? strategic kind so not we what look I quite And actually of went let's

the legs it We our world. getting are comes sea cemetery when to really

terms cemeteries team And us. your on of the attractive then more a become so And it truly question works is in this, team. about that for

this. folks who on executive weighing team have across the are We in

fortunately, go offer that with trips. leaders on folks these We to up multiple my out have support the And on in We and come different this functions. invite meet they take remarks. folks to us I mentioned here.

we've a of give you your few know through the name in gives pitch, told that's get recent our to given and we'd way one more all practice. And just well years I'll And So everything people absolutely for that with able there basically partnered their them and us team. with said, provide visit. you them We recently the this on an great will somebody. name what a dinner in story owner from us from a with story. they the goal is out call us that that to a be Everybody, we if us. is in to might sounds practice? we is have who person, looks Don't goal And meet our had ask were sit who anecdotal we only well, partner go conversation just great, talking halfway a we it is us, years if it what to said, how know of was, I like an you. this them ago front look, that this And about honor few our left with right? when actually take owner Carriage

patient sure are not the into with that process. insight question, answers the it We a team change if focused we've to in it. that's larger right the got a little and find owners, I'm now your on but

Mel Payne

detail X an his why had this a down and just call he's him, X and he time comprehensively much owner. years then. at to spoke had the joining payment. he about owner he then today, in our able more on place, And we we Cain, is just Dewayne earnings was speak now whatever had Carriage. anniversary and that said Steve, today joined And Carriage, first being joined who about a had Carriage years call

And lot any become so many, years. of owners Cain a having he's He's other of many a upside biggest business, Carriage. not partner, Ann, terms Dewayne great doubts only in a become one wonderful about advocates of our and over

Chris McGinnis

that Great. Mel, for call. question No, just appreciate that. I you. I remember one

year, if that was heard when you know I it, What you change at surprising I've written the you to in plus say I significant the a don't anything over most last look point? now, think off back year Looking about back but you've this business. anything? obviously guard, lot caught you

Mel Payne

have Well, have be of a aggressive, nightmare I've I the it been vision bit of future that had and more could what easy. a actually vision a always that having the worst or been you surprised. too about might achieve was future little fears optimistic My be would achieved.

thing. into at the the had September I little most it of back the did, my I've of way the coming of one side high I upside optimistic listed. very turn and portfolio than was existing biggest could have things, updating So funeral before. turned is Carlos even it of visionary talent 'XX, most time, I is we Growth different no the Top team, way anything It those the mind, company, of business most crazy a joining in talent, executive standards was lot that company the the out. into had ever And the rating of better a of to surprise a lot operating say of there been if what have wasn't model, mean, imagined all possible. around, And what X and the then were goal. years, in which beyond fantastic, could and being I first has stepping actually or imagined. imagined, would I X what side a achieved but might acquisitions that they've within missions be the always in here on people's knew We're what had just I is I have the the crazy. there were thought X-year I they now

coronavirus market, able to coming of a lot the put crash. in crash And money so all very of work market at to these the the things bottom together, the of

income gains. Now we've and got all this recurring

to So balance sheet, sheet we you a we just got balance wanted the my get everything, and this. now And and then I the got the got oh gosh, always operations, like leadership. balance sheet

times in of I Letter over Shareholder are us. everything walls. you the XXXX 'XX day all halls, only that the XXXX best the up around day before the the every other this get person team These in thing about wrote at here you you you best times. in the truly up. what can mess it it's walk with I like the talk this Just if are told these Paris the the day, - period, mirror That's every of And London about the the we, look is versus

person and we up can't I'd look and But the really We -- encourage everything not here come lease. people I renovated let expectations or floors. mean we're could individually got individually what here. we in. at it we're X around, and teams. come So know all business damn that walls you has And even extended never this with would X talent, exceeding if for what business we're mess just than you his in, good be and than talent, team to we're other or through other that's whatever at. Other in, know you collaboration days the

go come been together, see So the surprising will that's it's all it to back. part all never how parts, and

Chris McGinnis

for Great. QX. luck in answering Well, and thanks again good questions my

Operator

I'm further the Mr. Mel call questions remarks. no the turn showing for queue. in Payne back And like I closing would to to

Mel Payne

no a principles. best with of X the mission the on business X, only and years XXXX and XX being I had at by of what cemetery the Carriage history and age do, June guiding funeral we vision and guided of no cofounded industry. knowledge at I

the good years, had as an to Over XX last we get really company. first operating

this in business criteria 'XX business acquisition the of the last model businesses. in best we to operating of the used vet our advanced mission our and that use years. candidates model over at strategic So operating control we XX each standards financial and model a the operating 'XX, called XX framework into at business at Which a performance, we ditched budget and evolved that 'XX performance, over and innovated develop years, operating Then has last portfolio in a our model produces we being model. alignment the with radical the to end acquisition

achieved a our consolidator Best large strategic mission the as the markets. have we believe best in we businesses of remaining Being the independent best So

quarter best and too. We're value shareholders, company, last it clear this this long-term obvious we to future believe shareholder about mission, evolutionary minutes capital our who of without every our last into produce the years, X becomes compounded learning and aspect platform. this X we people funeral reflection this returns, X support creation So over in only think being we I operating Being and I performance allocation high-performance could history, few strongly, of creation. this friendship still that achieved the journey we superior to Best the year, have ago, critically important highly mentioned in in and the is a matured and industry, transformation about achieved and and way which those company believe and years finally that the have changed I have fundamentally of of the cemetery shareholder the fragmented industries. consolidating value never Upon

personally quarter company. to So in for our with release gratefulness Thorndike. and interested Alan in dedicate and Will you and being and would like this Treforest all honor, to calling I Thank Weber, third performance Tom

Operator

for you Thank call. conference participating. today's concludes This

have may now good You a day. disconnect. Everyone,

Carriage Services (CSV) 29 Oct 212021 Q3 Earnings call transcript