Carriage Services, Inc. · NYSE:CSV
Carriage Services — Debt Investor Presentation (December 2019)
22 slides from Carriage Services's debt investor presentation, Dec 5, 2019
Slide 1: Investor Presentation December 2019
Investor Presentation December 2019 Exhibit 99.2
Slide 2: Cautionary Statement on Forward Looking Statements and Information
Certain statements made herein or elsewhere by, or on behalf of, the Company that are not historical facts are intended to be forward‐looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the "Securities Act") and Section 21E of the Securities Exchange Act
Slide 3: Cautionary Statement on Forward Looking Statements and Information (Con't)
This presentation contains preliminary information only, is subject to change at any time and is not, and should not be assumed to be, complete or to constitute all the information necessary to adequately make an investment decision or other determination. It is expected that investors interested in
Slide 4: |.
|. Company Update
Slide 5: Carriage Services Overview
Carriage Services Overview Operating Segment Overview (LTM Sep-19)1 Track Record of Long Term Revenue Growth4 Business Overview 1 Includes Cemetery and Funeral same store and acquisition revenue / EBITDA 2 Excludes variable overhead, regional fixed overhead, and corporate fixed overhead costs 3 Map
Slide 6: History of Carriage Evolution Into an Industry Leader
History of Carriage Evolution Into an Industry Leader Long Term Track Record of Performance Source: Company filings Note: Total Revenue and Adjusted Consolidated EBITDA bar charts are in millions. 1 Please refer to page 25 for the EBITDA reconciliation 2008 Assumed control of preneed trust investmen
Slide 7: Business Segment Overview
Business Segment Overview Funeral Home Operations Cemetery Operations Financial Earnings Preneed & Trust Overview 187 funeral homes in 29 states1 30 cemeteries in 11 states1 Earnings from insurance contracts & trust fund assets as merchandise and services are provided to customers Description Comple
Slide 8: High Performance Culture Framework
High Performance Culture Framework Innovative and disciplined Standards Operating Model has led to industry leading operating and financial performance Entrepreneurial culture and empowerment attracts top industry talent to Carriage One- and five-year incentives reward top Managing Partners and thei
Slide 9: Stable Industry With Favorable Trends Driven By An Aging Population
Stable Industry With Favorable Trends …Driven By An Aging Population Favorable Secular Tailwinds… … and is the Acquirer of Choice for Funeral Owner Succession Planning Given Aging Owner Population Carriage has grown Same Store Revenue4 despite Increasing Cremation Trends… Sources: 1 2017 National Po
Slide 10: Overview of Completed Acquisitions
Overview of Completed Acquisitions Lombardo Description Based in Buffalo, NY, Lombardo is a family-owned, best-in-class funeral service provider Largest funeral home business in Western New York, with 4 funeral homes serving approximately 2,000 families annually Transaction closed on October 9, 2019
Slide 11: Overview of Pending Acquisitions
Overview of Pending Acquisitions Oakmont Fairfax Description Based in Lafayette, CA, Oakmont will be purchased from StoneMor and has a funeral home, large cemetery and crematory Holds high-end inventory and serves affluent clientele in northern California area Currently under definitive acquisition
Slide 12: Key Credit Highlights
Key Credit Highlights #2 player in a highly fragmented industry, with the top 3 players representing only ~20% of the total market and the remaining 80% consisting of independent market players who are primarily local and family-owned High barriers to entry as heritage and local brand loyalty have b
Slide 13: II. Financial Overview
II. Financial Overview
Slide 14: Update on 2019 Operational Improvements
CSV evolved its Standards Operating Model in Q4 2018 for 2019 and beyond, following a deep analytical and qualitative portfolio review with leading Managing Partners and other key internal stakeholders The next evolution encompasses: Focusing on organic revenue growth in both same store funeral and
Slide 15: Financial Highlights for 3rd Quarter & YTD 2019
Revenues Improved results from all segments Funeral, Cemetery & Financial in Q3-19 Resulted in 2.9% growth in Q3-19, year-over-year bringing YTD growth to 0.7% despite an unusually strong Q1 2018 Higher growth when factoring in the disposition of the Ft. Lauderdale city cemetery business in Q3-18 an
Slide 16: Consistent Historical Financial Performance
Consistent Historical Financial Performance Adjusted Consolidated EBITDA and Margin1 Adj. Free Cash Flow & % Adj. EBITDA Conversion2 Revenue by Segment Maintenance vs. Growth Capex Note: Figures shown in millions. 1 Please refer to page 25 for the EBITDA reconciliation 2 Please refer to page 27 for
Slide 17: Key Financial Highlights
Key Financial Highlights High and recurring Free Cash Flow generation Industry leading EBITDA Margins Significant embedded Operating Leverage; both at local business level and as a company Consistent capex spending and minimal working capital needs Leverage target of 4.0 – 4.5x Total Debt / Adjusted
Slide 18: Appendix
Appendix
Slide 19: Reconciliation of Non-GAAP Measures: Net Income to Adjusted EBITDA
Reconciliation of Non-GAAP Measures: Net Income to Adjusted EBITDA Description of Key Adjustments EBITDA Adjustments Recognized accretion of the discount of convertible subordinated notes. Accretion is calculated using the effective interest method based on a stated interest rate of 6.75% and will i
Slide 20: Reconciliation of Non-GAAP Measures: Field EBITDA
Reconciliation of Non-GAAP Measures: Field EBITDA Source: Company Filings
Slide 21: Reconciliation of Non-GAAP Measures: Adjusted Free Cash Flow
Reconciliation of Non-GAAP Measures: Adjusted Free Cash Flow Source: Company Filings
Slide 22: Definitions of Non-GAAP Measures
Adjusted Consolidated EBITDA is defined as Consolidated EBITDA plus Special Items. Adjusted Free Cash Flow is defined as net cash provided by operating activities as adjusted by Special Items, less cash used for maintenance capital expenditures. Cemetery Field EBITDA or "operating profit” is defined
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