Carriage Services Reports Fourth Quarter and Year End Results.Business Editors HOUSTON--(BUSINESS WIRE)--Feb. 8, 2000 Carriage Services Inc. (NYSE NYSE See: New York Stock Exchange :CSV (1) (Comma Separated Value) Same as comma delimited. (2) (Computer System Validation) See software validation. CSV - comma separated values ) today reported results for the three months and year ended December December: see month. 31, 1999. Revenues for the fourth quarter of 1999 increased 25 percent to $43,656,000 compared to revenues of $34,889,000 for the fourth quarter of 1998. Fourth quarter funeral revenues increased 18 percent and cemetery cemetery, name used by early Christians to designate a place for burying the dead. First applied in Christian burials in the Roman catacombs, the word cemetery came into general usage in the 15th cent. revenues increased 50 percent compared to last year's fourth quarter. Fourth quarter net income available to common stockholders before the after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. impact of a special compensation charge totaled $1,960,000 or $0.12 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, versus $3,290,000 or $0.21 per diluted share, in the fourth quarter of 1998. As previously reported on November November: see month. 9, 1999, the Board authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: five-year contract extensions to the top executive officers to ensure continuity and maintain management's direction and focus in an effort to enhance long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. shareholder value. In connection with these contract extensions, there was a special compensation charge in the fourth quarter of 1999 of $1.5 million after tax, or $0.09 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . Revenues for the year were up 44 percent to $168,520,000 compared to revenues of $116,841,000 for 1998. Funeral revenues for 1999 increased 35 percent and cemetery revenues increased 81 percent compared to last year. For the year ended December 31, 1999, net income available to common stockholders before the after-tax impact of the special compensation charge and an extraordinary item was $11,098,000 or $0.69 per diluted share, versus net income totaling $8,927,000 or $0.65 per diluted share, for 1998. During 1999, the Company acquired businesses with estimated annual revenues of $26 million for consideration of $44 million. &uot;Nineteen ninety-nine was a year of contrasting performance,&uot; stated Melvin Melvin may refer to one of the following: Name:
The surname Payne stems from paganus, see pagan. People
&uot;Additionally, during the fourth quarter, we intensified in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: our focus on our core operations consistent with our goal for 2000 of generating the highest free cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses as a percentage of revenue in the industry,&uot; continued Mr. Payne. &uot;We believe that achievement of this goal will differentiate us and create improved financial flexibility beyond the $210 million available under our existing credit facility. In order to accomplish this goal, we have reduced our corporate development infrastructure; reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. operations management Operations management is an area of business that is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective. ; rationalized our pre-need sales program and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. ; reduced capital expenditures; modified our training programs; and accelerated our initiative to upgrade the quality of leadership throughout our organization. &uot;We have also begun to restructure the incentive compensation plans at the funeral home location level so as to engender en·gen·der v. en·gen·dered, en·gen·der·ing, en·gen·ders v.tr. 1. To bring into existence; give rise to: "Every cloud engenders not a storm" more entrepreneurial en·tre·pre·neur n. A person who organizes, operates, and assumes the risk for a business venture. [French, from Old French, from entreprendre, to undertake; see enterprise. behavior that should drive long-term market share and cash flow gains,&uot; concluded Mr. Payne. Carriage Services is the fourth largest publicly traded deathcare company. As of February 7, 2000, Carriage operated 182 funeral homes and 41 cemeteries This is a list of famous cemeteries, mausoleums and other places people are buried, world-wide. It may never be fully completed or, depending on its its nature, it may be that it can never be completed. However, new and revised entries in the list are always welcome. in 31 states. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on assumptions that the Company believes are reasonable; however, many important factors, as discussed under &uot;Cautionary Statements&uot; in Item 5 of the Company's Form 10-Q Form 10-Q See 10-Q. for the quarterly period ended September 30, 1999, could cause the Company's results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by, or on behalf of, the Company. Tables to Follow
CARRIAGE SERVICES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
In thousands, except
per share amounts For the Three Months For the Twelve Months
Ended Ended
12/31/98 12/31/99 12/31/98 12/31/99
-------- -------- -------- --------
Funeral
revenues, net $27,008 $31,853 $92,965 $125,317
Funeral costs
and expenses 17,995 23,564 64,929 89,725
-------- -------- -------- --------
Funeral gross
profit 9,013 8,289 28,036 35,592
Cemetery
revenues, net 7,881 11,803 23,876 43,203
Cemetery costs
and expenses 5,666 8,939 17,588 32,258
-------- -------- -------- --------
Cemetery gross profit 2,215 2,864 6,288 10,945
Total revenues, net 34,889 43,656 116,841 168,520
Total costs
and expenses 23,661 32,503 82,517 121,983
-------- -------- -------- --------
Total gross profit 11,228 11,153 34,324 46,537
General and
administrative
expenses -- recurring 1,920 2,350 7,581 9,264
-------- -------- -------- --------
Operating income
before special
compensation charge 9,308 8,803 26,743 37,273
Interest expense, Debt 3,210 3,461 9,720 13,619
Interest expense, TIDES -- 1,641 -- 3,792
-------- -------- -------- --------
3,210 5,102 9,720 17,411
Income before
income taxes, special
compensation charge and
extraordinary item 6,098 3,701 17,023 19,862
Provision for
income taxes 2,656 1,721 7,490 8,674
-------- -------- -------- --------
Net income before
special compensation
charge and
extraordinary item 3,442 1,980 9,533 11,188
Preferred stock
dividends:
Dilutive 124 -- -- 90
Anti-dilutive 28 20 606 --
-------- -------- --------- --------
Net income available
to common stockholders
before special
compensation charge and
extraordinary item 3,290 1,960 8,927 11,098
Special compensation
charge, net of
income tax
benefit of $1,000 -- (1,500) -- (1,500)
-------- -------- -------- --------
Net income
available to common
stockholders before
extraordinary item 3,290 460 8,927 9,598
Extraordinary item --
loss on early
extinguishment
of debt, net
of income tax
benefit of $151 -- -- -- (200)
-------- -------- -------- --------
Net income
available
to common
stockholders $3,290 $460 $8,927 $9,398
======== ======== ======== ========
Basic earnings
per share:
Net income before
special compensation
charge and
extraordinary item $0.22 $0.12 $0.67 $0.69
Special compensation
charge -- (0.09) -- (0.09)
-------- -------- -------- --------
Net Income before
extraordinary item 0.22 0.03 0.67 0.60
Extraordinary item -- -- -- (0.01)
-------- -------- -------- --------
Net income after
extraordinary item $0.22 $0.03 $0.67 $0.59
======== ======== ======== ========
Diluted earnings
per share:
Net income before
special compensation
charge and
extraordinary item $0.21 $0.12 $0.65 $0.69
Special compensation charge -- (0.09) -- (0.09)
-------- -------- -------- --------
Net Income
before extraordinary
item 0.21 0.03 0.65 0.60
Extraordinary item -- -- -- (0.01)
-------- -------- -------- --------
Net income
after extraordinary
item $0.21 $0.03 $0.65 $0.59
======== ======== ======== ========
Weighted average
number of
common shares
outstanding:
Basic 14,927 15,907 13,315 15,875
======== ======== ======== ========
Diluted 16,232 15,907 13,808 16,136
======== ======== ======== ========
CARRIAGE SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
In thousands
Dec. 31, Dec. 31,
1998 1999
----------- -----------
ASSETS
Current assets $31,880 $45,043
Property, net 194,553 219,266
Names and reputations and other 239,711 277,989
----------- -----------
$466,144 $542,298
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $20,316 $24,567
Long-term debt 216,181 181,844
Other liabilities 27,580 34,052
----------- -----------
Total liabilities $264,077 $240,463
Redeemable preferred securities 1,673 91,026
Total Stockholders' equity 200,394 210,809
----------- -----------
$466,144 $542,298
=========== ===========
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