Carriage Services, Inc. · NYSE:CSV
Carriage Services — Investor Presentation (March 2009)
22 slides from Carriage Services's investor presentation, Mar 31, 2009
Slide 1: Carriage Services Investor Presentation April 2009
Carriage Services (NYSE: CSV) Investor Presentation April 2009
Slide 2: Forward-Looking Statements
Forward-Looking Statements The statements in this presentation that are not historical facts are forward-looking statements made in reliance on the "safe harbor" protections provided under the Private Securities Litigation Reform Act of 1995. These statements may be accompanied by words that convey
Slide 3: Guiding Principles
Guiding Principles Honesty, Integrity and Quality in all that we do 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 Company is
Slide 4: Market Presence
Market Presence Operations in 25 states Focus on 10 - 15 Strategic Markets 136 Funeral Homes 32 Cemeteries (includes 11 Combos) Market leader (#1 or #2) in over 70% of locations = Funeral Home = Cemetery = Combination
Slide 5: Stock Valuation Metrics
Stock Valuation Metrics Price/2009(E) EPS = 4.1X Enterprise Value/2009(E) Consolidated EBITDA = 6.5X Equity Market Cap./2009(E) Free Cash Flow = 2.0X
Slide 6: Key Investment Considerations
Key Investment Considerations Standards Operating Model 4E Leadership Model Strategic Portfolio Optimization Model Carriage is uniquely positioned as a result of our three operating models: Execution of our models could produce superior stakeholder returns: Operating Leverage Organizational Overhead
Slide 7: Company Strategy
Company Strategy
Slide 8: Strategic Models: Standards Operating Model and 4E Leadership Model
Strategic Models Standards Operating Model Focuses on market share, people and operating metrics that drive long term operating and financial performance Designed and weighted to grow market share, volumes and average revenue modestly over time Designed to achieve sustainable Field EBITDA Margins ov
Slide 9: Strategic Models: Strategic Acquisition Model
Strategic Models Strategic Acquisition Model Assess acquisition candidates using six Strategic Ranking Criteria and use to differentiate pricing. Size of business Size of market Competitive standing Demographics Strength of brand Barriers of entry Build concentrated groups of A, B and C businesses i
Slide 10: Acquisition Growth Strategy
Acquisition Growth Strategy Consolidation landscape Inventory of potential sellers with succession issues is building Attractive opportunities on the near-term horizon Current credit crisis has lowered valuation metrics Best operators are sensitive to operating style and reputation of buyer Carriage
Slide 11: Annualized Revenue Estimates
uw Annualized Revenue Estimates 200920102011 20122013 Existing Revenue $ 1803 $ 1838 $ 1873 $ 1909 $ 1946 2009 Acquired Revenue $ 22 $ 22 $ 23 § 23 § 24 2010 Acquired Revenue 78 79 81 82 2011 Acquired Revenue 10.1 103 105 2012 Acquired Revenue 102 104 2013 Acquired Revenue 103 $1825 $1938 $2076 $221
Slide 12: Positioned to Produce Superior Shareholder Returns
Positioned to Produce Superior Shareholder Returns
Slide 13: Returns Driven by Four Levers
Returns Driven by Four Levers Superior investment returns will be driven by a combination of unique and simultaneous financial dynamics: Operating Leverage Positioned to grow revenues four ways: Pricing Market share gains Demographics Death rate (longer-term) Modest growth in same store revenues and
Slide 14: Returns Driven by Four Levers: Capital Structure Leverage
Returns Driven by Four Levers Capital Structure Leverage Small number of common shares outstanding Share repurchase programs Leveraged capital structure includes mezzanine (TIDES) and senior debt (high yield) layers similar to an LBO structure Convertible Subordinated Preferreds (7% fixed, due 2029)
Slide 15: Near Term Operational Focus
Near Term Operational Focus Reduction of costs and expenses Wage freeze has been implemented Stronger management of underperforming operations Higher revenue realization on cremation contracts Company wide implementation of cremation service program Developing a cremation merchandising system Cremat
Slide 16: Economic Impact on Business
Economic Impact on Business Focused on managing and improving the aspects of our business that we can control Carriage generates enough cash to finance its operations, repurchase shares and grow its business Deathcare business is recession resistant, not recession proof Cemetery preneed business has
Slide 17: Expecting Improved Profitability
Expecting Improved Profitability (1) Financial data for 2008 is from continuing operations (2) Excludes the effect of approx. $6.2 million in special charges. Including these special charges, EBITDA for 2008 was $33.0 million, Consolidated EBITDA Margin was 18.6% and GAAP EPS was $0.09 Expected impr
Slide 18: Long Term Outlook - Through 2013
Long Term Outlook - Through 2013* Acquisition planned for 2009 Revenue growth of 6-7% annually, including acquisitions Consolidated EBITDA growth of 9-11% annually, including acquisitions Consolidated EBITDA Margin range of 22-26% Delever the Company through increasing cash flow and earnings * Base
Slide 19: Summary
Summary "Being the Best" high performance culture and innovative models applied to a traditional industry Performance over time has less to do with industry dynamics and more to do with culture and execution of the models Industry landscape provides quality acquisition candidates A highly selective
Slide 20: Disclosure of Non-GAAP Performance Measures
Disclosure of Non-GAAP Performance Measures We report our financial results in accordance with generally accepted accounting principles ("GAAP"). However, management believes the presentation of non-GAAP financial measures provides useful information to management and investors regarding various fin
Slide 21: Disclosure of Non-GAAP Performance Measures
Disclosure of Non-GAAP Performance Measures Reconciliation of Net Income from continuing operations to EBITDA from continuing operations (in 000s): Reconciliation of estimated EBITDA from continuing operations to free cash flow for the twelve months ending December 31, 2009 (in 000’s): * See reconci
Slide 22: Disclosure of Non-GAAP Performance Measures
Disclosure of Non-GAAP Performance Measures Reconciliation of cash provided by operating activities from continuing operations to free cash flow (in 000’s):
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