On February 21, 2024, Carriage Services Inc (CSV, Financial) released its 8-K filing, detailing its financial performance for the fourth quarter and full year ended December 31, 2023. The company, a leading provider of funeral and cemetery services in the United States, operates primarily through its Funeral Home Operations and Cemetery Operations segments, with the former contributing the majority of the revenue.
Despite facing challenges such as a decline in funeral contract volume, attributed to the COVID "pull forward" impact, Carriage Services managed to grow its top line. This was achieved through strategic pricing and a 25.0% surge in preneed cemetery sales production in Q4, and a 19.6% increase for the full year. The company's disciplined cost management also contributed to a year-over-year increase in adjusted consolidated EBITDA.
Carlos Quezada, Vice Chairman and CEO, expressed confidence in the company's core initiatives, highlighting the launch of a new website and a refreshed Carriage image that aligns with their vision for the future.
We are pleased to announce our strong fourth quarter and full year 2023 results. Total revenue grew by 5.2% in the fourth quarter and 3.3% for the full year, despite the COVID “pull forward” impact resulting in modest declines in funeral contract volume experienced during the year.
Financial Performance Highlights
Carriage Services reported a robust financial performance for the fourth quarter and full year of 2023. The company's total revenue increased by 5.2% to $98.8 million in the fourth quarter and by 3.3% to $382.5 million for the full year. Operating income for the fourth quarter grew to $23.9 million, with a significant margin expansion. However, net income for the full year experienced a decrease to $33.4 million, down from the previous year's $41.4 million.
The adjusted consolidated EBITDA for the fourth quarter was $32.4 million, marking a 13.2% growth over the prior year quarter. The full year adjusted EBITDA also saw an increase, reaching $113.2 million. Adjusted diluted EPS for the fourth quarter was $0.77, and the full year adjustment was $2.19. The company's adjusted free cash flow grew to $12.8 million in the fourth quarter and to $55.1 million for the full year.
Strategic and Operational Developments
Carriage Services also announced the transition of Mel Payne from his role as Executive Chairman to a special advisor to the Board of Directors. The Board has concluded its strategic review process, deciding that continuing as an independent public company is in the best interest of the company and its stockholders. The company's outlook for 2024 includes organic growth initiatives and cost discipline while continuing to deleverage the balance sheet.
The company's financial stability and strategic initiatives position it well for continued growth and value creation for its stockholders. Carriage Services' focus on leveraging pricing power, exceptional preneed cemetery sales, and disciplined cost management have contributed to its financial achievements in a challenging environment.
For more detailed information, investors are encouraged to review the full 8-K filing and join the conference call scheduled for February 22, 2024, at 9:30 a.m. central time.
Explore the complete 8-K earnings release (here) from Carriage Services Inc for further details.
