Carriage Services, Inc. · NYSE:CSV
Carriage Services — Investor Presentation (December 2003)
36 slides from Carriage Services's investor presentation, Dec 5, 2003
Slide 1: Carriage Services, Inc. December 2003 Investor Presentation
Carriage Services, Inc. (NYSE: CSV) December 2003 Investor Presentation Copyright2003 © Caniage Services, he. Al ights served "i Forward-looking statements contained herein sre subjectto certain risks and uncertainties as further described in the last slide in this presentation,
Slide 2: Company Overview
Company Overview = Carriage Services is a leading provider of death care services in the United States. = Focus on attractive suburban and rural markets = Primary competitors are local independents .
Slide 3: Locations
Locations Currently own and operate 139 Funeral meteries in 29 States Funeral Homes Cemeteries
Slide 4: Company Overview
Company Overview = Carriage Services is a leading provider of death care services in the United States. = Focus on attractive suburban and rural markets = Primary competitors are local independents = Capital structure and cash flow much improved — Recently completed a successful turnaround strategy
Slide 5: Total Debt & Contingent Acquisition Obligations
Total Debt & Contingent Acquisition Obligations Total Debt & Contingent Acquisition Obligations ($ in Mi $1987 sm $180 $1624 au uN 136.0 $140 2 va | | $100 camo soannt came s0a003e Total Debt Contingent Acquisition Obligations
Slide 6: Link to
Link to searchable text of slide shown above
Slide 7: Link to
Link to searchable text of slide shown above
Slide 8: Mission Statement
Mission Statement ={= “We are committed to being the most professional, ethical and highest quality funeral and cemetery service organization in our industry.”
Slide 9: Guiding Principles
Guiding Principles = Honesty, Integrity and Quality in all that we do a Hard work, pride of accomplishment and shared success through employee ownership = Belief in the power of people though individual initiative and teamwork = Outstanding service and profitability go hand-in- hand = Growth of the
Slide 10: Sales Mix
Sales Mix = | m Sales from the Funeral Home segment comprise the vast majority of Carriage’s revenue ‘Cemetery 23% Funeral Th Carriage Services: Nine Months Ending 9/30/03 i a]
Slide 11: Funeral Homes
Funeral Homes a Remain some of the most profitable Funeral Homes in the industry = Carriage’s Funeral Homes have experienced challenges from declining death rate and losses of market share in certain markets = Highly focused on operations, people, technology improvements and growing market share
Slide 12: Link to
Link to searchable text of slide shown above
Slide 13: Funeral Homes
B Funeral Homes = Offer a complete suite of products and services to meet families’ funeral needs. Funeral Home Service Offerings and Pricing Points Initial Call Traditional Burial $6200 Preparation Ffansportation—> Commital Cremation with Traditional Funeral Service ‘4200 Cremation with Memorial Se
Slide 14: Link to
Link to searchable text of slide shown above
Slide 15: Pre-Need Funeral Programs
Pre-Need Funeral Programs Carriage has shifted the funding of its pre-need sales to insurance policies — Commission earned on sale — Returns guaranteed Pre-Need Sales Allocations - 1999 _- Pre-Need Sales Allocations - 9 Mths. 2003 8 [=a]
Slide 16: Cemeteries
Cemeteries = Offers products and services including interment services, the rights to interment cemetery sites (including grave sites, mausoleum crypts and niches) and related cemetery merchandise such as memorials and vaults = Revenues primarily driven by pre-need product sales Financial Revenue In
Slide 17: Cemeteries
Cemeteries = Cemetery gross margins have improved since management shifted focus to its family service model Cemetery Revenue and Gross Profit ($ in Millions) $50 30% $45 8 25% a3 20% $30 $25 15% $20 aie 10% $10 Ba $5 $0 0% 1998 ©1999 ©2000-2001 200220036 SsaCemetery Revenues mmm Cemetery Gross Prof
Slide 18: Industry Overview
Industry Overview
Slide 19: Link to
Link to searchable text of slide shown above
Slide 20: Link to
Link to searchable text of slide shown above
Slide 21: Death Rate Trends
Death Rate Trends = Number of deaths in the United States had increased at a compounded rate of approximately 1% for years 1950 to 2000 = 2001 was down 2.4%, and 1.6% in 2002 CDC Death Rate Trends - Adjusted for Non-Reporting Cities 19 2a 3Q 4Q — Fullyear 2000% Change — -2.1% 1.2% 10.7% 6.9% 3.8% 20
Slide 22: Competition - Trends
2 a 5 a i Competition - Trends — Focus on reduced spending % and deleveraging are common themes among industry participants over the last three years hrooxed capt! Expenctures Industry Capex (Indexed to 100) a == 20 0 re ee eee eee Debt Levels (Indexed to 100) —earrigs —sbeat —s01 sa = a 5 gS . shal
Slide 23: Competition - Trends
Competition - Trends Industry Cremation vs. Burial Rates (% Total Services) — Cremations have increased as a percentage of total services 45% 0% ou] ee 20% Se rrr zo | 49981988 2000 2001 2002 3008 Cremations (i Total Seniees) [ties —adenvonds Steve se — Urban areas generally have driven the move to
Slide 24: Link to
Link to searchable text of slide shown above
Slide 25: Financial Overview
Financial Overview
Slide 26: Link to
Link to searchable text of slide shown above
Slide 27: Link to
Link to searchable text of slide shown above
Slide 28: Link to
Link to searchable text of slide shown above
Slide 29: Projection Assumptions
Projection Assumptions ={= = Management of fixed costs and improvement of field based operating margins, EBITDA is projected to increase from $40.0 to $44.6 million by 2007. = Approximately 80% of Capex is “maintenance” — The balance relates to development of new cemetery facilities or properties. .
Slide 30: Link to
Link to searchable text of slide shown above
Slide 31: Link to
Link to searchable text of slide shown above
Slide 32: Link to
Link to searchable text of slide shown above
Slide 33: Link to
Link to searchable text of slide shown above
Slide 34: Link to
Link to searchable text of slide shown above
Slide 35: Link to
Link to searchable text of slide shown above
Slide 36: Searchable text section of graphics shown above
Searchable text section of graphics shown above [LOGO] Carriage Services, Inc. (NYSE: CSV) December 2003 Investor Presentation Copyright 2003 © Carriage Services, Inc. All rights reserved. Forward-looking statements contained herein are subject to certain risks and uncertainties as further described
Carriage Services — Investor Presentation (December 2003) on 6ix