Earnings call transcript Q2 2023

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Operator

Good day and thank you for standing by. Welcome to the Carriage Services Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to Metzger, conference President. like speaker to now Steven today, would hand over the your I Please ahead. go

Steven Metzger

Good morning, everyone, to discuss and thank you second results. for quarter our joining us

management the In Granmayeh, myself, Directors; Executive and Chief of Carlos Officer and of call the are Executive of Mel Financial Chief Vice Vice this the addition President Board Payne, on Officer. Kian morning and to Quezada, Board Chairman Executive Directors; from Chairman of

release, press was you can find after On market issued the Carriage the earnings yesterday Services website, our which closed.

and Our press financial to by followed of supplement including this Mel, will remarks period. me differences question-and-answer supplemental our a Kian formal Today's reconciliation measures. include financial and release is with will the non-GAAP intended morning from begin and be and call between GAAP remarks information, Carlos,

Before plans. to we during our we'll make everyone comments forward-looking this business call, that about begin, statements, including like some and remind I'd

uncertainties statements views and Forward-looking website. factors reflect These filings, our as limited our not but identified involve can today. well and to, in our which our found earnings be of inherently uncertainties all SEC in are on release include, risks and as only of risks

now for to Thank this you call I'd joining like the morning. Mel. all turn And to us over

Mel Payne

Good morning, you with everyone. I'm excited this morning. to be

XX. off earnings we of call June first plan our on As our kick since the succession announcement

since more than is and our occurred is of been preparation CEO seamless by which transition years, we've working plan know, two As evidenced that for you thoughtful this time off, most investment on the announcement paying in of has the succession

From going ever my where recently work encouraged and intense to which XX-week that energized and the at of graduated been by doing all my the also before. following has program my been than I on we continue my best. are we're motivated, I being hard be about about continued is more top passionate an class, at what progress. and have stroke rehabilitation

While more look leadership strategic and even which Carlos, enjoy on vision as to Group I our with most, mentor a Principal regularly, and time I team focusing and meet spending Kian. the job serving is I to them with forward Steve the

and and to continue of I'm to pleased As exceed Steve Carriage, a their high Carlos they expectations focus that my report shareholder largest exceedingly cofounder new roles. on as

been together with Together the of closely continued our been leadership this alignment executive to Carriage, team, time has and more defined morning. detail stronger, together in strategic The three clearly working never for and to of talk maturation vision your this evolution listen execution and in Kian, has We team with of talent them been morning. this appreciate Dream which will of the their the taking has about interest never this lead more Carriage compelling.

a to over good performance. call this turn quarter color more now will on Carlos. of I really for Carlos

Carlos Quezada

Thank and joining. you you, Mel, good for morning, Thank everyone.

start report, on I'd role. thank I their I for team our and executive at the as the support Carriage with Board Mel of Before our and take CEO Directors, new everyone like to

of good am two continuing and years, over come. what journey Mel to prepared of lead for best I and mission to has to continue our the committed day. grateful being a and vision He created mentoring where this pursuing he and for coaching for years our and opportunity of great every has to legacy countless and thoughtful Carriage been the through process well-planned hours me

you. thank So

performance. quarter Now moving to our second high

and will most update information. Steve our and Board I M&A For with composition of financial will recent other of on provide process provide the integration activities, He operational new of today's the some an performance Kian Directors. will financial call, will our our report acquisitions color. detailed share

to results. on the Now

second the very our expectations. financial that quarter exceeded share are excited in performance to our We has

diligently on have we for focused high communicated, excellence. delivering performance previously execution As

Here are financial the consolidated results for quarter. second the

These impressive were I Total compared cemetery an $XX.X million increase exceptional sales acquisition or point year. Beckersvale, last the to reached on X.X% give performance our recent in million, on teams primarily $X results call. and will work more driven California. preneed this of outstanding color of hard later revenue by the this

salary a and million, Total is or XX.X%, and field of increase field This administration. general decrease margin basis cost showing or EBITDA EBITDA was $XXX,XXX primarily of to $XX.X $X.X higher of XX million an X.X% points. and and decrease in benefits experiencing attributed slight

areas incremental in million $X.X The quarter. during expenses two second totaled these the

same offset cost at to $XX.X However, thanks of each opportunities. to or $X.X other total revenue, our the the million quarter reflecting under XX% last goal in expenses dedicated of our we cost reduction through Overhead XX.X% to end partners business, savings to managing managed million of by previously compared efforts $X.X year amounted of the and of communicated overhead million XXXX. a reaching significant

$X.X item of what in to of profile equates GAAP plan, resulting XX% in we interest our continue approximately will of interest interest the previous $X.XX. GAAP can diluted attributed second to in The expense compared high-performance our a paid we share, was earnings $X.XX credit executing as in income diluted of decline expense. million, we This share year. million earnings million indicating and to notable $X.X increase year, the of decrease per restoration over last every reduce GAAP expense per $X.X a be XX.X% or decrease or quarter

and XX.X%, share impressive quarter For consensus. our of the outperforming earnings million, second of million adjusted margin an increase $XX.X $X.XX for or diluted adjusted was increase $X.X basis XX.X%, showing an consented of numbers, EBITDA was per EBITDA adjusted consolidated points adjusted XXX

our and plan performance to in these efforts as and financial consistently sustainably are time. our of proud executing they immensely enhance progress our reflect over results strategic We

make of the first first These efforts of peak year up quarter COVID-XX. the XXXX the to to quarter decrease record due allowed have us experienced we in of the most of at this for high

revenue total Funeral reached funeral Home portfolio. $XX.X an million X.X%. $X.X let's of move million, Now increase to or our

only decrease of with by only Total field decreasing growth, year X.X%. million remained X.X%. funeral drove slight a compared primarily previous $XXX,XXX revenues the at comparable $XXX,XXX EBITDA steady or to with acquisitions $XX.X or newest Our this

XX%, And total points margin field from XXX showing funeral last a basis reduction EBITDA year. of was

However, this thanks of Houston dedicated in inflationary field our Center, determination at pricing mission been managing significantly growth, margin the the of efficient the vision. gratitude efforts the Being the their to commitment has management and contributed our our Their cost decrease in strategy cost to Support and partners and controllable Best has we revenue the for curve. performance, to work extend and and financial

our portfolio. to switching cemetery Now

$XX.X year. quarter, to $X.X achieved reflecting an last exact all-time quarter previous the total of significant in cemetery second that We Moreover, million in reaching report the of $X the to cemetery compared are hit revenue or to thrilled reaching performance full our margin outstanding maintaining record an teams. growth or the XX.X% cemetery year. $XX.X increase due XX.X%. a million and field Total EBITDA cemetery the saw same XX.X%, mainly million preneed million, EBITDA results level our remained growth EBITDA revenue high at high, margin strong This performance very were total

opportunities generation provides cemetery cemetery in of strategy sales game changer, marketing premier years Edge three preneed over that system we're true and execute continue us relationship growth existing performance portfolio, the can is to Sales lead we years opportunities confident ahead. with our acquisitions the as making. execution -- create additional multiple maximizing as been addition is with impact and a our Establishing strategic the high coupled cemetery the last our our since customer premier these we of why XXXX that has and the organization of in

revolutionize funeral officially future of that options months value national National planning. their offering launched Regarding our after we Encourage recurring strategic two families the the to strategy of sales how businesses This will partnership, we prearranged been had delighted additional Guardian to each generating the are between by revenue a market before. move strategic has like Company, Insurance and securing integration never share for Pricoa, funerals, Life our we add announce arrangement for

that year and for venture a partners experience funeral generating our while and our into new incredible integration. preneed substantial the XX% We exciting our potential funeral we in to a of will for of shareholders. sales holds communities growth added the will portfolio integrate within program serve, approach, we home value range face Carriage, anticipate This XX% the in

the unwavering We results tangible plan us yet want to second and the express hard this entire prospects their for and are without much filled Carriage, our that firmly as strategic best dedication is the work about would whom our none of for for thrilled future believe heartfelt team gratitude the witnessing to to we excitement, possible, during of come. the be we our with quarter

now Steve. will Thank to it pass you over I and

Steven Metzger

you, Carlos. Thank

commitment first and talent able of who diversity drive and couple firm directors past this candidates. most were continuous our number individuals months group, three you made we Carriage. to national will to are experience and of seen fulfilling a We Board, that a impressive the that thought growth the with with and management our our aware, focus three probably meeting our in us the Directors. past have quarter, As have to year the search on help team, welcome Board add spent of bring throughout we several From improvement identify began new working new Board of earlier to months diverse

Executive currently financial to serves analysis. Dell resource XX Committee focus She has be has as our and variety a Vice opportunities to The on leadership one companies as for will other we enhance world's to and years. technology continue Julie as experience and of Board, served from two newest Audit Technologies, of for ESG and leading a with tremendous she's the of also companies planning our Sanders, Senior and corporate member identify on M&A everything CFO over serves the Chief extensive positions responsibility. Disclosure Julie a held where past President Dell's

to recently welcomed We've also Somer the Webb Board.

a serves lifestyle Chief Financial focused and the as traded currently Officer company brands. platform direct-to-consumer for publicly outdoor on Somer

Southwest Somer valuable has experience to she Carriage, some Amazon consumer-focused in companies as and companies relates through growing worked acquisitions. including for world, and Airlines, to the top the it particularly brings of

his companies, joined out XX execute a various late and for Chad capital years Ferguson with expertise focused last June. and year's After growth coupled years has shareholder for on of serve receiving Carriage Board strategies the with experience approximately well as spent Chad's XX analyzing Duke an under manager the portfolio firm in as division valuation will PhD laid our mathematics billion shareholders senior Chad knowledge KKR this identifying with spent deep the and University, investment in his $XX Finally, our markets XX-year from management. allocation we letter. in and

focus experience that and there's new to come. the identifying Board beginning helping forward join proud dedicated talent effort and immense and bring Directors. value in the of that that We're Julie, recruiting an been Chad contributions confident the years Carriage our will year, and Since to to thoughtful of this and time of amount our leadership our be look forward Board great to we of to to in Somer and shareholders, their drive of

the growth, by to most our relates we it to opportunities our As acquisitions. encouraged presented be by continue focus on recent three

In in Carriage Bakersfield, acquisition realized business we continues to a from excited in business, the our business. place this the about month team five our our to history Forest sales excited of foundation Similarly, and production Heritage with particular, the our segment so in East. top we ahead most great the years the highlight in revenue of Lawn support by of recent we're why initially Charlotte entering as that only and the months strong potential largest will since that cemetery were integration, to put optimize partner in we acquisition to of continue be is

resources dedicate Carriage premier additions supporting As other businesses and the to with country. the build also of to we these we portfolio, time relationships our to owners throughout continue new

right owners the willing We and many of their about our several down building past these that with them conversations paying their for visits great choice businesses their will plans newest as believe succession we our be that Carriage belief that of and current relationships and fact, These wait are are future is lines. had partners business. given In debt, owners learn integration look more continuing forward acquisitions this we we quarter, to is and to Carriage. these conversations of time aware our for focus and

transaction June on Board our alternatives, explore other has merger, shareholder a a value. or to strategic to potential strategic announced we potential including as sale financial possibly or maximize process initiated Finally, XX,

As can no process we noted that this a assurance transaction. result at be will the time, in there

further at we further While on this comment time updates have of the the Board review have and continues will process this no with outside the support advisers, don't topic.

We more provide have update an will, share. when to we however, news

our With Kian second that, color quarter provide more on I'll over performance. to to pass it

Kian Granmayeh

generally principles, $XX.X income million million quarter compares Carriage million the of XXXX you, XXXX. diluted total revenue per of $XX.X period reported accepted the under Thank share In total of share. net million This of second revenue $X.XX $X.X or of Steve. diluted and per income $X.XX same and to in in $XX.X accounting net or

flow of cash adjusted looking million, EBITDA reconciled of $XX consolidated flow of quarter, XXXX. release, EBITDA of adjusted adjusted consolidated XX.X% this in which million, second are Now reported our and our financials, appendix press adjusted at margin cash adjusted in million. adjusted XX.X% $XX.X free of of margin consolidated to adjusted of compares free consolidated $X.X EBITDA This of the quarter tables million and we $XX.X the EBITDA

our in to with operational EBITDA quarter as margin last quarter same consolidated the financial and and adjusted pleased very considerable are both results performance compared year. growth with this We

and Now examine down Houston Support to financial that that are of able Center of example is highlights from related post-COVID the affected model COVID, successfully field choppy compare perfect performance improvement, results. and a to waters strategy to into the periods are a the the resiliency growth operational able to navigate unique our are our we level this all decisions and translate near-term the operational we of that minimally to and our world. efficiencies by how This business prior further

will quarter's to expenses of highlight income turning the down Now to income. I net this statement, some

by off comment compensation excludes costs. Carlos' overhead stock-based other total to start First, on minor back which circling overhead, I'll and

primarily the statement, unallocated target. and continued along and to and other, G&A income related combination meet overhead effort and cemetery On the XXXX $XXX,XXX, our to total discipline decreased of with regional funeral by costs our

by from mentioned, Carlos increasing quarter. our the the driven interest nearly expense interest quarter X.X% rate million, increased as in of XXXX credit mainly second this for Second, average $X.X X.X% facility, to

second tax income $XXX,XXX result a rate decreased quarter. of similar the expense a lower a tax applied in taxable income Lastly, quarter the as to for

to same Cash year million and free operations $X.X the the months operations same income compared statement. nearly $XX.X during When expanding period. from flow $X the million flow $X as cash period quarter to this million to $XX six the million, and increased despite the flow to first flow cash decreased net cash the comparison Turning from decreasing respectively. year, of have approximately quarter million last

remain As see, the strictly credit strong, plan and adhere high-performance cash continue you in can capital back we to to restoration to continues flow allocation our in December. as plan outlined profile

from leverage. Similarly, our delever compliance quarter Using closing X.XXx credit bank we ratio leverage ended peak after the of on defined we this quarter Lon by ratio to second year, covenant first our with acquisition. continue methodically a the in Green agreement, the as

We expect the to steadily leverage throughout the ratio decrease year.

we annual seasonality gain post-COVID tracking take and our into we in a ranges. our more to annual business guidance. in prudent approach of relative are the our turning year Nonetheless, to before operationally how to pleased visibility first Lastly, guidance guidance, our like the would our with guidance a world the half revising of are to we

million we $X.XX XXXX earnings result, free to guidance of flow to million, total of million consolidated cash of a $XXX per million reaffirming of million. $XXX $XX million adjusted to As $XXX and diluted $X.XX in to EBITDA revenue, adjusted $XXX adjusted share are $XX

guidance will ranges quarter, for and/or the look Next to update we tighten our year.

Again, open questions. to will with we that, it

Operator

Thank you.

We comes conduct Paris Barrington Instructions] the first of from question-and-answer at now [Operator a will our line session. Alex Research. question

open. is line Your

Alex Paris

few quarter congratulations I second and follow-up everyone. you on a questions. the results, Thank better-than-expected have

impact start and P&L off, First on like on the behavior. both of inflation, consumer your to with I'd

this on big week, earnings earlier topic announced their a Corp. this call. was and Service Your

some thought So, second of I In better expected, driven questions. the your ask I'd the than same EBITDA was you quarter, field cemetery. by

was less while funeral, down EBITDA expense suggesting up the But compression. some overhead Your revenues field X.X%, margin within expectations. was than X.X%, were

how do the context on based increases comp decentralized your of evaluate funeral first incentive partners question structure? funeral the standards managing in is my structure, So price your

Carlos Quezada

just Alex, this couple break components let is Carlos. And first. me of a in

and and margins pricing between the what Managing partners cost level. field. a and on saving freedom based as and compare because quarter for If business compression that full the business and the first a strategies at the should the pricing to the We that that's go remain the be quarter decide decision-making highly of second on matter believe today, decentralized power effort from organization of we significant should be competition. truly on is difference have you and are things in where the focus a

know between many than them, making better miles they questions, what's competition are calls other us, of we're asking on X,XXX really shopping. from away that and going and families The

we working it can do each that performance lead And them. leave where really is, the right so to on opportunity business. to And financial decision hard in pricing power based for the so we're showing the expected

that have We is EBITDA, highlighted efforts delink quarter. continue feel to improvement after not we It the we're has should over cost, somewhat that here you believe on that significant as we even increase forward, been we very quarter. compression was as too up and experiencing catching be fully it where less increase increase nothing confident a move dramatic. were not We to but inflationary there, compared because over but steady, with our are last quarter done we

able So this that have very expectations we much we control. to pretty are in high should very, -- be with

Alex Paris

That's helpful.

this Great. there's period the sequentially during those you're to improvement So costs. in trying first from compression which while year-over-year, quarter along there's pass

their sales. in lower-tier Did on and on mid- related cemetery price last business? level Corp call within property similar noted see business, -- property behavior your cemetery sales, the you noted premium with Service is their question their so conference Second less that and sensitivity their more they

Carlos Quezada

for did phenomenal, -- quarter cemetery and so well every had Contrary job sales. XXX% stages and same shampoos exceededly of as phenomenal Alex, pretty it merchandise sales the team services. we whole that, thing, of of over This directors different in business and relates alone we to manager prior at -- two preneed the result properties. an support did is the year much and XXX% to on preneed property preneed preneed companies a

didn't on three structured say, sustain compensation, side the preneed ago, through very a the that years nature. approach of on to Carriage structure CRM, let's growth generation, things led Before, have really

really young, toddler. an cemetery -- So, on stages we a but certainly infant, maybe stages early of the early over almost very are time, not growth

executives of me today. they incredible One years. I job out to done an pointed And many SCI, believe for have many,

And are of organization. a I past not and they lower not that that, so Carriage as And having opportunity. And because mature way history families organization, we significant because because of more have spending. we that type relates of believe found any it pushback more have of reason, just discretion income the of to

Alex Paris

That's good hear. to

a had you though, clear XXX% be sales preneed increase in in to the Just quarter. property

Carlos Quezada

Correct.

right, Now just remember includes revenue, unrecognized that sales? preneed so pure that,

Mel Payne

be So get senior Alex, the equally growth at when Carlos is this in is impressed to so over impressed has done I've years And you Pudenz. three he turned been last has Mel. promoted what Good what the at he built his and leader. and to over back talking really been again. a development Shane Shane to I've organization

one all game quarter the preneed property consumer time Board third plan our a and and going of year. bring optical the three in sales. new yesterday, members presentation momentum I was an to blown keep being fourth of meeting He his up away with didn't in this by and the had We Shane first

July. next also I and third which into momentum the that. and has that assuming continued quarter after We'll and I'm years So year also the going be quarter agree the Carlos now with into to how could organization guided It continued he culture and be time never organization. a in a took he's I Carlos. and to preneed place. that. do of and effort lot a get knew high-performance sophistication fourth

sustainable developments. We can sell of high very very We the had high organization allocate into We capital margins we these a precious largest our be will when at And to have those have that the all future. strategic it investment plans never who properties. can in return in now on before.

about too were never rates. to We So, this had I'm We death push. it. excited engine relied on always

Now we're not.

Alex Paris

terminology think Great. and sold. Super the thinking point pre the the release, to pre-need know this, XXX%. of interment about answer And there? press sales explain you of in decrease clarification, rights the about number helpful. I just And you property up talked here? I in a oranges then apples Could were But Am I a in X.X% but difference

Carlos Quezada

Absolutely, for that. I apologize

there's just really But preneed burials could few the think interments, revenue is you place when actual to So the that one that correlate of increments. of number One the of those about a the which be number components specifically, side, time. cemetery doesn't directly right? on will take per over it,

why revenue. see that those a and recognized The we little a see recognized cemetery though a XXX% total difference piece we have other you preneed EBITDA. had the property between XX% That's difference rate, have the phenomenal almost XX.X% preneed field the on profits, you is on you'll from revenue can still recognition on the and XX% -- between timing even preneed

Mel Payne

that is And we get enough what. down the payment don't because

Carlos Quezada

No.

order So that to has recognize take development one to be down in not need because and that could revenue. for maybe to to and yes, payment we delivered be the delivery well, the able place been wait is --

Alex Paris

Got you.

it me, go and So, congrats into back very it Question again, then the you Yes, guess much does. And it's a... that's Thank for I the I'll queue. quarter. difference... on

Operator

question comes John John, Franzreb from next our is & next Sidoti for Instructions] line Our question. of open. moment Company. [Operator One your

John Franzreb

outlook XXXX, would that and I there? outlook that for guidance midterm guidance thoughts have an maybe like guess revised expectations. about you December I'm next status guess any of update but the quarter, note the the wondering with I the I what's cautionary to a XXXX you still start

Kian Granmayeh

John, speaking. yes, this is Kian

XXXX. on Focusing

at in out signaled terms had XXXX, of more we've our how and we sorry, up of to at kind XXXX. I'm result kind the December that -- want of has things we that revision changed look we forecast really a we expectations just of When we and play look as of the you tightening goals but see out for is XXXX-- laid So XXXX when for kind put the things out, there. nothing guidance now

feel into we as update to get next we more visibility But get -- guidance year, now. market those the with that we will So, sure appropriately. comfortable of as as we closer make

Mel Payne

I John to going is you Mel. We in, dangerous happen Carlos years it's when out. will this that, to come know is and too. predict what try did two always

we it very high did level. So, at a

what that actually seeing Now on more seeing now. than progress. that, portfolio. we little to track volumes to we're business, with thought But so our is more our and that, do pretty we're cemetery see we we're anything change success in far preneed would a funeral rather but we better don't property right want actually and post-COVID, We'd even in good

updates, I at tracking and precise Kian more based way things keep to, data if but on of range where be are you. and will tighter get we'll up have it more for the more wind is the success, they think, So a we end That's what we alluding 'XX.

So, thing I'm concerned main burial. is than as and concept something which and we would that -- We the in of disappoint. under-promise over-deliver past rather far overpromise rather whole we here is now not under did don't deliver, to as our

Carlos Quezada

for seasonalized year. year, a the has seasonality, been QX QX bit past, always being When more quarter then little talked you a for color, a the have about We this one in about quarter this I'll the being second think typically the business. number too.

apologize sorry, -- quarter -- will sorry, third third would be the I'm Second I'm I be third third the third will for one. quarter that. quarter the last be quarter and

So, QX. had had a dropped right? great coming We we experienced interesting COVID-XX. we're going quarter. COVID-XX phenomenal be last due we the not record-breaking September, then into XXXX. showing QX mainly phenomenal And suddenly July, anymore, and that's great some August we so, in something seasonality quarter, should into believe a to XX% third there off third great And In about

somewhere XXXX, However, families an dropped levels encouraged, into just not restrictions gather. of in in X.X%. how into X% to give way is highly due and a X.X%. a to quarterly above XXXX XXXX we it 'XX between one seen the Then sitting only is to the being able rate basis Pre-COVID the to in X.X% quarter the have cremation around as XXXX XXXX XXXX mainly move and variation and second year, went example. we're by normalization What

going even highly a to back year, it what which that's of X% rate about was, it encouraging seems So, was move continue is we mix and forward. as like the every cremation to

And so of we thoughtful, to more able off to and in next the which then want especially more third guidance, get you row prudent be should give coming and is insight be months, couple into quarter a outperforming.

John Franzreb

willingness Fair meaningful differences And the accept are pricing the just in looking to thinking -- properties, when at pricing... any or you're enough. you seeing regional

Operator

folks. Yes, you ma'am, we can difficulties, technical the very hear now. Thank you much -- sorry for

Carlos Quezada

really just what I and how that. Sorry, was of only apologize realize. didn't got cut for answer my up got. We've John, I I much know you speaking don't

John Franzreb

that got outlook, think regional question. but in the the I XXXX didn't pricing, we all differences I if heard of hear anything the about you

Carlos Quezada

be if I mind did not hear that question repeating the would you wonderful. that question,

John Franzreb

you if pricing was in environment, pricing the I meaningful differences in your any across see calls. the regional current curious Certainly, properties?

Carlos Quezada

do able mean like when say you Or Is your lower to... -- you prices? are meaningful, Increase we price.

John Franzreb

The curious in... ability push to just and/or back changes any if there's I'm accept,

Carlos Quezada

I'll here. give you some granularity

what and between quarter $X this was just was and The of last burial example, year average the is $XX second quarter. it per is last is cremation $XX.XX contract above for of this for funeral difference of the XXXX what at our it contract $XX So contract XXXX quarter between year.

was of last So, what year. it from is average a even sales -- funeral $XXX preneed

as can we is on we that feel and pretty So, working that pricing do that. encouraged work our continue revenue we strategy to increase sustainably

John Franzreb

all Fair Okay. have And personnel. Is additional hiring process people last Do talked I that sales was quarter, you that the you need? about enough. you complete? curious

Carlos Quezada

upgrading. terms in It of is

We properties looking add teams planning that strategy. preneed specific to add teams in are just advanced will to our more

aggregate to not And and play those themes yet. them into those we our so and It's to be performance sale, recruit get recruit outlook calculate teams have will to as in the today. that we our just a even continue as considers and it

John Franzreb

And been Okay. other people sure I'll question I'm let have last one waiting. and people because

expect Guardian, On the you of after implemented. that you confidence said growth it's year kind in relationship I number? you XX% XX% fully think a gives preneed to funeral What with National revenue in a

Carlos Quezada

million -- to things Right color So, some around funeral in we now, did general in just $XX that, prearranged right? terms. production somewhere on

a be those why that over agreement million. year I'm those over referring XX, right phased grow all new then of to XX% The approach and the that's a XX and this lot have through significantly that have remove We able to relationships being XX over going referring to strategy, million. is this XX% to It's now XX to we next time.

be rollout. we believe sometime $XXX I a year execution million within somewhere around to after $XX full the of million, full million So $XXX should

Operator

much. Thank question. you very One for moment our next

of George comes question from next Our MKM. ROTH Kelly

line is open. Your

George Kelly

So do just said to you to up over you preneed in think, were reviewing first, XX incremental? so expect to the relationships? that next, it The that's XX% I point, to funeral just is question I relationship they you a this Carlos, the the that follow for on XX% growth And XX your months. new guess, and you existing about that's what what is bring just so superior

Carlos Quezada

never your or funeral between where commission different so business, selling is what's behind backing marketer that really yes, many we different that managing to so marketer, somebody relationships, many trying And company first, well, on strategies different behalf prearranged is so it. the schedules, there our on many relationships a different Well, is, insurance focused by meaning by grow program.

those one from number have to to negotiate one, four a general your terms parties. different of commissions of have each because leverage able You lose, being in perspective agent better you

We becomes very than but have XX, complicated. it more

don't So But most you importantly, you usually strategy. a national have leverage.

advantage marketing use. a have don't can You that you

You out don't the have rely a there. because capacity, have have robust They and already in good opening strategy the have company their training, one They a Pricoa program. CRM States. have robust you their United CRM partners marketing to really in one those there. upon really is there's But that number national the of the each ones

of agreement, terms Life to within phenomenal into a backing commission Guardian them by they're this to partner partnering in every Insurance with Company, schedule. advantages NGL, And the National Carriage us and

be right? wins, we Xx we signed. were was general the In doing so agent doing everybody before estimations, agreement this somewhere around our And should commission

you very that it financial funeral the And to the becomes preneed of accretive sales addition on acceleration very, our so when in performance. side, add to

George Kelly

year That's Mel I for it's great. or I other then back pay Thanks a that if start maybe towards but to until you're have -- be and maybe you're number consider to cash. you'll Xx you some kind sure. that then uses target helpful. That's there second Kian prioritizing you're question for or that reach Okay. is this Xx, me. don't know just is debt Is don't really -- in of there and the working that down But leverage going of head something you and if know not

Just is. curious number what that

Mel Payne

Yes, this is Mel.

that this started And always reason the company You're Xx a number, just and We right. number. We less. anything do haven't knowing we've it. up having not or a have about on lived now to and there's It's had it. I lot, of leverage don't was cash except out business, can that the it. early know to comes need you lot funeral of a so whole you a told

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Operator

Mel conference closing like back very you the to Thank much. time, At would to for turn I Payne now remarks. this

Mel Payne

those a me. in received because stroke you been for my it's a recovery is like you This I've Thank a I this for for me. months. day listening months so might all team in of in back I've today. all have know few of been not for to now much who working tuning It's for very special the office on personality. the days after very here's And wimpy time deal me and emotional

energy So anybody for know they're to that they and passion an what knows who who has gets around me, do. somebody

wishes hide But received to XXX% seems with you our really the people. know it. "Mel, do so And behold, time, I many I that of Carlos say like to the out saddle do from good I don't a I in just all have and it for kind prayers. make recovery, said, video out didn't brilliant He idea like to me those so show and us myself. what you what to send thank many be back it up have us people I don't to of and to of lo troop why all came of people. a anything. didn't And and to

here. the go. his magical down is So, team, amazing. to they way just do A.J. put A.J. He's I did, and and Thanks they stuff What

few do again. And all sitting I'm this is over signed to reading haven't me all had this me I'm I the days wife, we away and of blown going I'm I questions, So, here pages And responses send to them, your our library people prepare what it so of lot video. my I've it. how week morning to into them this to I message came to out they a in known recorded so when Carlos is it video of listen messages, I want to a think ago, I told going maybe good me people many my and a will people a to walked thank And gave was answering all all for call. ago. of from and -- or while they're

And just sense sound another. Funeral Jason earlier general you in read I Wood one of Wheeler. one Bakersfield, a to Home, the this in all of them wanted part this Loan Family is of which give way they partner Green acquisition California Jason or So is from the is of year. from to how new managing

share text as Mel, if this with like this about a would sent morning, allow and filled It to we there's and front message any takes way camera a message and a the be obviously lot message, mail said, a he please on His Please, to pass So to in this honest get message love situation. It least. say the was to inspiring message about such of of open do. with courage was encouragement.

you. So Mel, thank

have families on company client people You a every company. based business. by about and his profit that the serve company his is based shown was and company me a his this alone people on the man in cares not but who was built This people that a

has best bless like act acted Your And always they and It to And our why the recovery. to words me always assets, people praying our here's are say and deal. I've really but like that don't the surprised for continued God people. people that people. the encouraging are motivating

we And say they so, respond, they decentralized. we're respond, and

standards. high-performance these have We

culture and be in the Company is what And industry, high-value you we the is that funeral share the do and field thing in services. we're and high-performance emotional reputation financial way same local in community in And the personal define I company in business. the business do the cemetery happens cemetery. performance you build that, deliver and when market to And a the

to just be love job, care to Building I'm life. life. the back of do grateful people has around my and a wonderful I and the my most in you and most myself been here highlight people, company this so the Our about the

it's team people calling and I I good. at fine you us place. lot And for I in this for with want that. I'm right thank listening within know long for leadership time. I hard. doing could of Dig today. just have hopefully a a because the of looking all And the Look, so keep grateful all surface to in now. are I'm

You dream got is me them in place to they Carlos wanted. while and are, just always now thrilled. Kian. hear It team took get and so to a that the Steve, This I'm

the rest reporting of you tuning year. look all forward So of for for and the in, thank we to our progress

Operator

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

disconnect. now may You

Carriage Services (CSV) 3 Aug 232023 Q2 Earnings call transcript