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A L L R I G H T S R E S E R V E D Investor Presentation Update M A Y 2 0 2 5
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A L L R I G H T S R E S E R V E D 2 Notice to Investors Certain statements made herein or else whereby, 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 Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions that the Company believes are reasonable; however, many important factors, as discussed under “Risk Factors” and “Forward‐Looking Statements” in the Company’s Annual Report on Form 10‐K for the year ended December 31, 2023, 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. This presentation constitutes the views of the Company at the time they were generated. Any past performance information presented herein is not a guarantee or indication of future results and should not be relied upon for such reason. Forward-looking statements contained herein include any statements regarding any expectations and projections of earnings, revenue, cash flow, investment returns, capital allocation, debt levels, equity performance, death rates, market share growth, cost inflation, overhead, preneed sales or other financial items. Forward-looking statements contained herein also include any statements of the plans, strategies, objectives, and expectations of management for future operations or financing activities, including, but not limited to, capital allocation, organizational performance, execution of our strategic objectives and growth plan, planned divestitures, the ability to obtain credit or financing, anticipated integration, performance and other benefits of recently completed acquisitions, technology improvements, and cost management and debt reductions. We can provide no assurances that these planned activities and objectives will be successfully implemented nor can we provide any assurances that we will generate the revenue growth, free cash flow, market share growth and operational performance referenced herein. We can provide no assurances that our strategic objectives and growth plans will be successfully executed nor can we provide any assurances that we will meet the timing, objectives and expectations related to our capital allocation framework, including our forecasted rates of return, leverage ratio targets, planned uses of free cash flow and future capital allocation, including potential strategic acquisitions, divestiture transactions, internal growth projects or debt reduction plans. We can provide no assurance that we will meet the expectations related to our ability to generate preneed sales, including implementing our cemetery portfolio sales strategy, product development and optimization plans. These statements are not facts and are made based upon such expectations, assumptions and views as they exist as of the date of this presentation. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, contingencies and changes in circumstances that are difficult to predict, many of which are beyond the Company’s control. The Company’s actual results may differ materially from those contemplated by the forward-looking statements. There is no assurance that such views are correct or will prove, with the passage of time, to be correct. Caution should be taken with respect to such statements and recipients should not place undue reliance on any such statements. The Company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward‐looking statements after the date they are made, whether as a result of new information, future events or otherwise. In this presentation, the Company relies on and refers to certain information and statistics from third-party sources which they believe to be reliable. The Company has not independently verified the accuracy or completeness of any such third-party information. This presentation uses Non-GAAP financial measures top resent the financial performance of the Company. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported operating results or cash flow from operations or any other measure of performance as determined in accordance with GAAP. We believe the Non-GAAP results are useful to investors because such results help investors compare our results to previous periods and provide insights in to underlying trends in our business. In addition, the Company’s presentation of these measures may not be comparable to similarly titled measures of other companies. Pursuant to the requirements of Regulation G, the Company has provided quantitative reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures within the most current press release and on our Investor Relations page of the website. A copy of the Company’s Annual Report on Form 10‐K for the year ended December 31, 2024, our Quarterly Reports on Form 10-Q, and other public filings and news releases, are available at www.carriageservices.com
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A L L R I G H T S R E S E R V E D 3 Q1 2025 Company Overview NYSE listed • Ticker: CSV (NYSE) • Market cap: ~$627 mm(1) • One of two publicly traded funeral and cemetery services and merchandise companies in the United States Asset Base • Operations in United States only • 160 funeral homes in 25 states • 28 cemeteries in 10 states Key Updates • CSV continues to de-risk the balance sheet by paying down $17 million of debt in Q1 2025, ending leverage at 4.2x • Funeral volume on a comparable basis, increased by 2.4% • Announced partnership with Express Funeral Funding to enhance product offerings Q1 Financial Highlights $ in mm, unless per share amounts Q1 2025 Q1 2024 Total Revenue $107.1 $103.5 Total Field EBITDA $48.2 $46.3 % Margin 45.0% 44.8% Overhead(2) $15.3 $19.4(3) As % of Total revenue 14.3% 18.7%(3) Adjusted Consolidated EBITDA $32.9 $33.6 % Margin 30.8% 32.5% Adjusted Diluted EPS $0.96 $0.76 Adjusted Free Cash Flow $13.4 $18.5 (1) As of market close on April 30, 2025. Calculated using basic outstanding shares. (2) Defined as regional and unallocated funeral and cemetery costs and general, administrative and other costs, excluding home office depreciation and non-cash stock compensation. (3) Inclusive of non-recurring items used in Adjusted Consolidated EBITDA. Adjusted for Special Items used in Adjusted Consolidated EBITDA, Overhead was $12.7 million, or 12.3% of Total Revenue in Q1 2024. Q1 2025 At A Glance
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A L L R I G H T S R E S E R V E D 4 Long-Term Growth Profile (1) Depicted 2025E represents midpoint of management’s guidance. (2) Total Revenue CAGR 2014 base year is $226 mm. (3) Adjusted Diluted EPS 2014 base year is $1.34 per share. $1.48 $1.62 $1.39 $1.17 $1.25 $1.86 $3.02 $2.61 $2.19 $2.65 $3.20 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E $243 $248 $258 $268 $274 $329 $376 $370 $383 $404 $405 29% 30% 27% 26% 28% 32% 34% 30% 30% 31% 32% 23% 27% 31% 35% 39% $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 $75 $80 $85 $90 $95 $10 0 $10 5 $11 0 $11 5 $12 0 $12 5 $13 0 $13 5 $14 0 $14 5 $15 0 $15 5 $16 0 $16 5 $17 0 $17 5 $18 0 $18 5 $19 0 $19 5 $20 0 $20 5 $21 0 $21 5 $22 0 $22 5 $23 0 $23 5 $24 0 $24 5 $25 0 $25 5 $26 0 $26 5 $27 0 $27 5 $28 0 $28 5 $29 0 $29 5 $30 0 $30 5 $31 0 $31 5 $32 0 $32 5 $33 0 $33 5 $34 0 $34 5 $35 0 $35 5 $36 0 $36 5 $37 0 $37 5 $38 0 $38 5 $39 0 $39 5 $40 0 $40 5 $41 0 $41 5 $42 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E Total Revenue & Adjusted Consolidated EBITDA Margin Adjusted Diluted EPS 6.0% Total Revenue CAGR(2) over the last ten years 7.1% Adjusted Diluted EPS CAGR(3) over the last ten years COVID PEAK COVID PEAK $ in millions (1) (1)
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A L L R I G H T S R E S E R V E D D E P A R T M E N T 5 Appendix
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A L L R I G H T S R E S E R V E D 6 Appendix: 2025 Outlook Full Year 2025 Outlook $ in mm, unless per share amounts 2025 Outlook Total Revenue $400 - $410 Adjusted Consolidated EBITDA $128 - $133 Adjusted Diluted EPS $3.10 - $3.30 Adjusted Free Cash Flow $40 - $50
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A L L R I G H T S R E S E R V E D 7 Operating Income to Adjusted Consolidated EBITDA and Adjusted Consolidated EBITDA Margin Appendix: Reconciliation of Non-GAAP measures(1) $ in thousands Q1 2025 Q1 2024 Operating income $ 31,564 $ 19,477 Depreciation & amortization 5,401 5,460 Non-cash stock compensation 1,753 489 Net loss on divestitures, disposals and impairment charges (5,770) 1,545 Consolidated EBITDA $ 32,948 $ 26,971 Adjusted for: Severance and separation costs $ - $ 5,457 Other special items - 1,173 Adjusted consolidated EBITDA $ 32,948 $ 33,601 Total revenue $ 107,069 $ 103,493 Adjusted consolidated EBITDA margin 30.8% 32.5% Q1 2025 Q1 2024 GAAP diluted earnings per share $ 1.34 $ 0.45 Special items (0.38) 0.30 Adjusted diluted earnings per share $ 0.96 $ 0.75 GAAP Diluted Earnings per Share to Adjusted Diluted Earnings per Share (1) For additional detail, see the Reconciliation of Non-GAAP Financial Measures from our Q1 2025 Earnings Release. Cash Provided by Operating Activities to Adjusted Free Cash Flow $ in thousands Q1 2025 Q1 2024 Cash provided by operating activities $ 13,792 $ 19,703 Cash used for maintenance capital expenditures (3,164) (3,551) Free cash flow $ 10,628 $ 16,152 Plus: incremental special items: Severance and separation costs 1,474 1,211 Other special items 1,250 1,173 Adjusted free cash flow $ 13,352 $ 18,536
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A L L R I G H T S R E S E R V E D 8 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Operating income $ 48,648 $ 50,204 $ 48,941 $ 43,307 $ 47,443 $ 57,227 $ 93,660 $ 79,726 $ 80,979 $ 81,799 Depreciation & amortization 13,780 15,421 15,979 17,430 17,771 19,389 20,520 19,799 21,117 22,890 Non-cash stock compensation 4,444 2,890 3,162 6,583 2,153 3,370 5,513 5,959 7,703 6,520 Net loss on divestitures, disposals and impairment charges - - - - 4,846 21,442 666 2,029 1,191 2,580 Consolidated EBITDA $ 66,872 $ 68,515 $ 68,082 $ 67,320 $ 72,213 $ 101,428 $ 120,359 $ 107,513 $ 110,990 $ 113,789 Adjusted for: Withdrawable trust income $ 555 $ - $ - $ - $ - $ - $ - $ - $ - $ - Acquisition and divestiture expenses 614 701 - - 2,083 (11) - - - - Severance and separation costs 959 3,979 - 1,435 1,205 563 1,575 1,431 - 6,228 Consulting fees 1,913 496 - - - - - - - - Litigation reserve - - - 1,000 750 270 1,050 200 - - Disaster recovery and pandemic costs - - 620 437 - 1,627 2,157 - - - Other special items 220 - - - 336 373 1,020 168 2,192 6,228 Adjusted consolidated EBITDA $ 71,133 $ 73,691 $ 68,702 $ 70,192 $ 76,587 $ 104,250 $ 126,161 $ 109,312 $ 113,182 $ 126,245 Total revenue $ 242,502 $ 248,200 $ 258,139 $ 267,992 $ 274,107 $ 329,448 $ 375,886 $ 370,174 $ 382,520 $ 404,198 Adjusted consolidated EBITDA margin 29.3% 29.7% 26.6% 26.2% 27.9% 31.6% 33.6% 29.5% 29.6% 31.2% Operating Income to Adjusted Consolidated EBITDA and Adjusted Consolidated EBITDA Margin(2) GAAP Diluted Earnings per Share to Adjusted Diluted Earnings per Share(2) Appendix: Reconciliation of Non-GAAP measures(1) $ in thousands (1) For additional detail, see the Reconciliation of Non-GAAP Financial Measures from our Q1 2025 Earnings Release. (2) Figures as reported each year. 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 GAAP diluted earnings per share $ 1.12 $ 1.12 $ 2.09 $ 0.63 $ 0.80 $ 0.89 $ 1.81 $ 2.63 $ 2.14 $ 2.10 Special items 0.36 0.50 (0.70) 0.54 0.45 0.97 1.21 (0.02) 0.05 0.55 Adjusted diluted earnings per share $ 1.48 $ 1.62 $ 1.39 $ 1.17 $ 1.25 $ 1.86 $ 3.02 $ 2.61 $ 2.19 $ 2.65