Carriage Services, Inc. · NYSE:CSV
Carriage Services — Debt Investor Presentation (April 2021)
29 slides from Carriage Services's debt investor presentation, Apr 26, 2021
Slide 1: Investor Presentation April 2021
Exhibit 99.2 Honesty | Integrity | Quality in All That We Do Investor Presentation April 2021Exhibit 99.2 Honesty | Integrity | Quality in All That We Do Investor Presentation April 2021
Slide 2: Cautionary Statement on Forward Looking Statements and Non-GAAP Measures
Cautionary Statement on Forward Looking Statements and Disclosure of Non-GAAP Performance Measures 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 Securit
Slide 3: II. Company Overview
II. Company Overview 10II. Company Overview 10
Slide 4: Key Credit Highlights
Key Credit Highlights Industry leading Operating Results driven by Execution of our Standards Operating Model Significantly Improved Credit Profile: Carriage Services Lower Leverage, Increased Size & Scale, is a leading Higher Organic Growth & EBITDA Margins owner and operator of Long Term Organic R
Slide 5: Carriage Services Overview
Carriage Services Overview 1 Operating Segment Overview (2020) Diverse National Footprint (YE 2020) 2 WA WA WA Revenue / Field Level EBITDA 22 2 MT 4 MA ID WI NY 12 8 1 11 Cemetery MI RI 2 4 PA CT NJ 2 NV OH 9 25% IL 5 5 5 3 VA CA KS KY 10 2 33 9 NC 9 OK NM 8 1 TN Funeral GA 4 3 LA TX 75% 5 34 FL 17
Slide 6: Good to Great High Performance Flywheel
Good to Great High Performance Flywheel Our Mission: We are committed to being the most professional, ethical and highest quality funeral and cemetery service organization in our industry Value Creation Dynamics Five Guiding Principles • Operating Leverage • Honesty, Integrity and Quality In All We
Slide 7: Carriage Services – Three Core Models
Carriage Services –Three Core Models ü Innovative Standards Operating Model has led to Industry Leading Operating and Financial Performance ü Entrepreneurial Decentralized High Performance Culture Attracts and Retains Top Industry Talent ü One and Five Year Incentives Reward Top Managing Partners an
Slide 8: Valuation Creation Financial Dynamics
Valuation Creation Financial Dynamics Accelerating Value Creation Financial Dynamics with Increased Size and Scale post Four Strategic Acquisitions made in Q4 2019/Jan 2020 Operating Leverage Capital Structure Leverage • Modest historical growth in same store revenues • Demonstrated ability to rapid
Slide 9: Good To Great II Shareholder Value Creation Incentive Plan
Good To Great II Shareholder Value Creation Incentive Plan Carriage Leadership aligned for High Performance and Long-Term Shareholder Value Creation 20% 25% 30% 35% 40% $80 77.34 $75 • Equity Long Term Incentive Program for 50 senior $70 leaders of Carriage $65• Incentive awards based on compound an
Slide 10: III. Financial Overview & Recent Performance
III. Financial Overview & Recent Performance 17III. Financial Overview & Recent Performance 17
Slide 11: Transformative High Performance
Transformative High Performance 2020 and Q1 2021 Record Performance Reflects Accelerating Transformative High Performance __ Key Takeaways: o Carriage Leadership Teams are Aligned and Incentivized for Outstanding Execution of our 3 Core Models o Coronavirus Accelerated Innovation of High Value Perso
Slide 12: Recent Financial Highlights
Recent Financial Highlights Performance Momentum Continues in 2021 Adjusted Consolidated EBITDA $120 Year Ended December 31, 2020 $100 – Record Total Revenue of $329.4 million, an increase of 20.2%; $80 – Record Total Field EBITDA of $141.9 million, an increase of 29.3%; $60 – Record Total Field EBI
Slide 13: Funeral Home Performance
Funeral Home Performance Same Store Funeral Results ($MM) o Record Same Store Funeral Operating Performance in 2020 and Q1 2021 driven by higher funeral volumes, broad based Market Share Gains and Improved Margin Management by our Funeral Managing Partners o Funeral Volumes increase from COVID-19 wa
Slide 14: Cemetery Segment Performance
Cemetery Segment Performance Preneed Cemetery Contracts & Revenue o New Cemetery Preneed Sales Program & Leadership has led to higher Cemetery Revenue growth rates with higher sustained Cemetery Field EBITDA Margins in the second half of 2020 and Q1 2021 o Improved EBITDA Margin performance in our C
Slide 15: Acquisition Performance
Acquisition Performance Acquisition Funeral Home Result ($MM) o Carriage made 4 Large Transformational Acquisitions in attractive strategic markets in Q4 2019/Jan 2020: Fairfax Memorial Park and Funeral Home (VA), Oakmont Memorial Park and Mortuary (CA), Rest Haven Funeral Home and Cemetery (TX) and
Slide 16: Strong Free Cash Flow & Rapid Deleveraging
Strong Free Cash Flow & Rapid Deleveraging Growing Free Cash Flow ($MM) $ 120 45 % o 2020 Record Revenue and Adj. Consolidated 40 % $ 100 EBITDA Performance led to Record Free Cash Flow 35 % generation and a Rapid Reduction in our Total Debt $ 80 $70.0 to Adjusted Consolidated EBITDA Ratio 30 % $ 60
Slide 17: Trust Investment Repositioning/Performance
Trust Investment Repositioning/Performance Preneed Trust Fund Repositioning Strategy Executed during the Coronavirus Market Crisis has been highly accretive to Carriage’s reported Financial Revenue, Adj. Consolidated EBITDA, Adj. Consolidated EBITDA Margin and Free Cash Flow o Successful Execution o
Slide 18: Historical Financial Performance
Historical Financial Performance 1 Revenue by Segment Adj. Consolidated EBITDA and Margin $ 120 45 % $329.4 $104.3 40 % $ 100 $274.1 $268.0 $76.6 35 % $70.2 $ 80 30 % 31.6% $ 60 25 % 27.9% 26.2% $ 40 20 % $ 20 15 % $ 0 10 % 2018 2019 2020 2018 2019 2020 Funeral Home Cemetery Financial Divested Adj.
Slide 19: IV. Appendix
IV. Appendix 26IV. Appendix 26
Slide 20: Reconciliation of Non-GAAP Measures: Adjusted Consolidated EBITDA
Reconciliation of Non-GAAP Measures: Adjusted Consolidated EBITDA ($ in millions) 2018 2019 2020 Q1 2020 Q1 2021 LTM 2021 Net Income (Loss) (GAAP) 11.6 14.5 16.1 (4.2) 12.9 33.2 Plus: Net Tax Expense (Benefit) 6.6 7.9 8.5 (2.2) 5.6 16.3 Plus: Interest Expense 21.1 25.5 32.5 8.4 7.6 31.7 Plus: Deprec
Slide 21: Reconciliation: Funeral Field EBITDA and Cemetery Field EBITDA
Reconciliation of Non-GAAP Measures: Funeral Field EBITDA and Cemetery Field EBITDA Funeral Field EBITDA ($ in millions) 2018 2019 2020 Q1 2020 Q1 2021 Funeral Operating Income (GAAP) $ 60.0 $ 58.8 $ 57.7 $ 4.3 $ 25.9 Funeral Depreciation & Amortization 10.7 11.1 11.6 2.9 2.8 Regional and unallocate
Slide 22: Reconciliation: Total Financial EBITDA and Total Field EBITDA
Reconciliation of Non-GAAP Measures: Total Financial EBITDA and Total Field EBITDA Total Financial EBITDA ($ in millions) 2018 2019 2020 Q1 2020 Q1 2021 Other revenue (GAAP) 17.1 17.0 24.8 5.5 7.0 Other expenses (GAAP) 1.5 2.0 4.8 1.3 1.4 Other operating income 15.6 20.0 4.2 15.0 5 .6 Less: Ancillar
Slide 23: Reconciliation: Adjusted Free Cash Flow
Reconciliation of Non-GAAP Measures: Adjusted Free Cash Flow ($ in millions) 2018 2019 2020 Q1 2020 Q1 2021 Net cash provided by operating activities $49.0 $43.2 $82.9 $13.5 $26.8 Plus Special Items: Federal tax refund - - (7.0) - - Acquisition and divestiture expeneses 2.1 (0.0) 0.1 - Severance cos
Slide 24: Reconciliation: Total Overhead
Reconciliation of Non-GAAP Measures: Total Overhead ($ in millions) 2018 2019 2020 Q1 2020 Q1 2021 Regional and unallocated funeral and cemetery costs (GAAP) 12.7 13.8 18.1 2.8 6.1 General, administrative and other (GAAP) 30.8 25.9 25.8 5.9 8.8 Total 43.6 39.7 43.9 8.7 14.9 ($ in millions) 2018 2019
Slide 25: Reconciliation: Funeral and Cemetery Financial EBITDA
Reconciliation of Non-GAAP Measures: Funeral and Cemetery Financial EBITDA ($ in millions) 2018 2019 2020 Other revenue (GAAP) $17.1 $17.0 $24.8 Other expenses (GAAP) 1 .5 2 .1 4.8 Other operating income 15.6 15.0 20.0 Less: Ancillary EBITDA - (0.3) (1.2) Divested/Planned Divested Financial EBITDA (
Slide 26: Reconciliation: Ancillary EBITDA and Divested Financial EBITDA
Reconciliation of Non-GAAP Measures: Ancillary EBITDA and Divested/Planned Divested Financial EBITDA ($ in millions) 2018 2019 2020 Other revenue (GAAP) $17.1 $17.0 $24.8 Other expenses (GAAP) 1 .5 2 .1 4.8 Other operating income 15.6 15.0 20.0 Less: Divested/Planned Divested Financial EBITDA (1.4)
Slide 27: Reconciliation: Funeral and Cemetery Divested EBITDA
Reconciliation of Non-GAAP Measures: Funeral and Cemetery Divested / Planned Divested EBITDA ($ in millions) 2018 2019 2020 Funeral Operating Income (GAAP) $60.0 $58.8 $57.6 Funeral Depreciation & Amortization 1 0.7 1 1.1 1 1.6 Regional and unallocated funeral costs 10.5 11.0 14.3 Net loss (gain) on
Slide 28: Business Segment Overview
Business Segment Overview Funeral Home Operations Cemetery Operations Financial Earnings Preneed & Trust – Earnings from insurance contracts & trust fund assets as merchandise – 178 funeral homes in 26 states– 32 cemeteries in 12 states Overview and services are provided to customers – Complete rang
Slide 29: Non-GAAP Financial Measures Index
Non-GAAP Financial Measures Index – Adjusted Consolidated EBITDA is defined as Consolidated EBITDA after adjustments for Special Items that we believe do not directly reflect our core operations and may not be indicative of our normal business operations. – Adjusted Free Cash Flow is defined as cash
Carriage Services — Debt Investor Presentation (April 2021) on 6ix