Carriage Services, Inc. · NYSE:CSV
Carriage Services — Investor Presentation (April 2014)
20 slides from Carriage Services's investor presentation, Apr 24, 2014
Slide 1: Carriage Services, Inc. Investor Presentation Q2 2014
1 Carriage Services, Inc. Investor Presentation Q2 2014
Slide 2: Forward-looking statements
2 Confidential 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, and Section 21E of the Securities Exchange Act of 1934,
Slide 3: Forward-looking model assumptions
3 The forward looking slides are solely intended to demonstrate the possible impact on our financial results of the successful implementation of our growth strategy by the hypothetical acquisition of businesses aggregating $40 million in assets per year for each of the next five years (including 201
Slide 4: Who is Carriage Services Inc.?
4 $3,080 $246 $214 Service Corp International Stonemor Carriage Who is Carriage Services Inc.? • A national funeral home and cemetery operating company • Founded in 1991 by Mel Payne and headquartered in Houston, TX • Funeral home and cemetery field operations drives success under a decentralized op
Slide 5: Geographic Diversification in Attractive Markets
5 Geographic Diversification in Attractive Markets 5 Note: Excludes businesses to be acquired from SCI.
Slide 6: Attractive Industry Trends
6 Attractive Industry Trends 2006 2013 Consolidators Independent % Change in Deaths Source: Center for Disease Control and Prevention, U.S. Census Bureau 65+ in Millions ~CAGR 0.6% Large Market Highly Fragmented Secular Trend 6 88.2% 11.8% 88.0% 12.0% Source: Center for Disease Control and Preventio
Slide 7: Differentiation in Stable Funeral & Cemetery Industry
7 Differentiation in Stable Funeral & Cemetery Industry • Carriage’s success has and will continue to be defined by three strategic models: • Standards Operating Model • Focuses on growing market share and employing high performance people which together drive long term operating and financial perfo
Slide 8: Our Growth Strategy
8 Our Growth Strategy • Adopt a pro‐growth business model within an industry that is characterized by its low growth and stable earnings • Modest growth in sales of our base businesses resulting in improved margins • Relatively fixed regional and corporate overhead allows for modest increases in Sam
Slide 9: Disciplined and Targeted Acquisition Strategy
9 Disciplined and Targeted Acquisition Strategy 9 DATE NAME 11/19/2013 Heritage Funeral Homes & Cremation Servces (Chattanooga, TN) 11/19/2013 Heritage Funeral Homes & Crematory (Ft. Oglethorpe, GA) 12/28/2012 Havenbrook Funeral Home (Norma, OK) 12/21/2012 Crespo & Jirrels Funeral and Cremation Serv
Slide 10: Acquisition Announced March 5, 2014: SCI Businesses
10 Acquisition Announced March 5, 2014: SCI Businesses • On March 5, 2014, we announced an agreement to acquire six businesses from Service Corporation International • Enter two new large strategic markets • New Orleans • Agreement to acquire 4 businesses • Improving demographics • Low cremation rat
Slide 11: Stable, Diversified Revenue Profile
11Note: Dollars in millions. Stable, Diversified Revenue Profile Note: Dollars in millions. Funeral Acquisition $0.3 $5.7 $14.2 $25.8 $35.9 Same Store Funeral 120.3 119.8 118.8 118.6 118.8 Cemeteries 39.3 37.8 36.5 38.3 40.5 Financial Revenue 9.7 14.2 14.0 16.7 18.8 $9.7 $14.2 $14.0 $16.7 $18.8 $39.
Slide 12: Track-record of Growing Profitability
12 $40.6 $44.8 $48.9 $53.1 $56.1 $0 $20 $40 $60 $80 2009A 2010A 2011A 2012A 2013A Adjusted Consolidated EBITDA Note: Dollars in millions. Track‐record of Growing Profitability Note: Dollars in millions.
Slide 13: FY 2013 Earnings Summary
13 FY 2013 Earnings Summary Key HighlightsFY 2013 Performance Revenues Adjusted EBITDA Note: Dollars in millions. $199.4 $214.0 $180 $200 $220 2012A 2013A $53.1 $56.1 $40 $45 $50 $55 $60 2012A 2013A • Outstanding financial performance in twelve months ended 12/31/13 • Revenues grew by 7.3% to $214.0
Slide 14: Strong and Improving Capitalization Profile
14 Strong and Improving Capitalization Profile Historical Total Capitalization Note: Dollars in millions. Total Capitalization $339 $350 $356 $403 $405 31.9% 34.2% 35.6% 33.4% 38.5% 27.7% 26.5% 25.2% 22.3% 22.1% 40.4% 39.2% 39.2% 44.3% 39.4% 0% 25% 50% 75% 100% 2009A 2010A 2011A 2012A 2013A Sharehol
Slide 15: Strong Cash Flow and Balance Sheet
15 Strong Cash Flow and Balance Sheet Adj. Consol. EBITDA / Interest Coverage (2)Free Cash Flow (1) Adjusted EBITDA Note: Dollars in millions. Net Debt / Adj. Consol. EBITDADebt / Adj. Consol. EBITDA Note: Dollars in millions. (1) Defined as cash flow from continuing operations less maintenance cape
Slide 16: Historical Trust Performance
16 Historical Trust Performance Trust Growth in $’sCompounded Returns Adjusted EBITDA Note: Dollars in millions. Gains & Income (3/31/09 – 2013)Asset Allocation Fixed Income 50% 50% 82% 87% 75% Equity 48% 47% 16% 11% 20% Cash / Other 2% 3% 2% 2% 5% 50% 50% 82% 87% 75% 48% 47% 16% 11% 20% 2% 3% 2% 2%
Slide 17: Model at assumed $40M acquisitions
17 $18.8 $18.6 $18.6 $18.6 $18.6 $18.6 $40.5 $42.8 $43.6 $43.8 $43.8 $43.8 $118.8 $118.9 $119.0 $119.1 $119.3 $119.3 $35.9 $52.1 $70.3 $85.3 $100.3 $115.3 $‐ $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 2013 2014 2015 2016 2017 2018 Model Revenue at assumed $40M Acquistions Financial Cemetery Sam
Slide 18: Appendix
18 Appendix
Slide 19: Historical Financials
19 Historical Financials Carriage Services Inc. Historical Performance ($'s in 000's) 2009A 2010A 2011A 2012A 2013A Same Store Funeral $120,309 $119,799 $118,801 $118,571 $118,813 Funeral Acquisition Revenue 310 5,705 14,210 25,801 35,891 Cemeteries 39,316 37,797 36,481 38,279 40,479 Financial Reven
Slide 20: GAAP Reconciliation to Adjusted EBITDA
20 GAAP Reconciliation to Adjusted EBITDA GAAP Reconciliation 2009A 2010A 2011A 2012A 2013A Consolidated EBITDA $40,325 $41,164 $39,542 $48,806 $51,587 Special Items Affecting EBITDA Withdrawable Trust Income(loss) $236 $3,438 $4,513 $1,916 1,454 Acquistion Expenses - 667 1,237 1,340 752 Severance C
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