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Carriage Services Announces Third Quarter 2019 Results and Raises Rolling Four Quarter Outlook

HOUSTON, Oct. 28, 2019 (GLOBE NEWSWIRE) -- Carriage Services, Inc. (CSV) today announced results for the third quarter ended September 30, 2019.

Mel Payne, Chief Executive Officer, stated, “Our third quarter performance represented a continuation of the remarkable progress made since we began implementing dramatic changes exactly one year ago to corporate and operational leadership in combination with a complete update and reboot of the high performance funeral and cemetery operating standards that comprise our Standards Operating Model. During the third quarter, all four operating and financial profit centers that comprise Total Field EBITDA in our Trend Reports achieved higher revenue growth that produced much higher Field EBITDA growth because of substantially higher Field EBITDA Margins in each case.

As a result, on a proforma basis, Total Field EBITDA during the third quarter increased $2.9 million or 12.8% on an increase of only $3.4 million or 5.5% in Total Revenue, while Total Field EBITDA Margin increased 260 basis points to 39.0%, Consolidated EBITDA increased $2.0 million or 13.3% to $17.3 million, and Diluted EPS increased $0.12 or 92.3% to $0.25. For the first nine months, Total Revenue increased $6.3 million or 3.2% to $202.5 million, Consolidated EBITDA increased $5.4 million or 10.4% to $57.3 million, and Diluted EPS increased $0.23 or 31.9% to $0.95.

We were able to convert 85.3% of incremental revenue in the third quarter into Field EBITDA cash earnings at the individual business unit level of our portfolio, thereby benefiting substantially from the operating leverage inherent in our operating businesses when modest revenue growth is managed effectively over a high fixed cost base. We continued to make numerous moves (leadership top grading, cost reductions, pricing of products and services, etc.) throughout the third quarter in our portfolio on a business by business basis. Our goal is to finish this “year of renewal” strong by achieving a much higher comparative proforma performance in the fourth quarter that would be representative of the normalized and sustainable full year earning power of our existing portfolio of businesses in 2020 and beyond.

In order to present a more accurate comparative third quarter and nine months financial performance profile that reflects on a proforma basis the current “normalized” earning power of Carriage, we have made the following adjustments to our GAAP financial performance: excluded from 2018 third quarter and nine months results the large Ft. Lauderdale city cemetery business management contract which we divested in the third quarter of 2018; excluded from 2018 and 2019 results from two funeral businesses we divested in the third quarter of 2019; reduced 2019 third quarter and nine months Total Overhead for all changes that have been completed as of September 30, 2019 as if they had been effective December 31, 2018; and increased interest for the first six months of 2018 to reflect the balance sheet recapitalization that was completed at the end of May 2018 as if it had been effective December 31, 2017. The Pro Forma Adjusted results shown below are simply outstanding:

Third Quarter 2019 versus Third Quarter 2018

  • Total Revenue increased $3.4 million or 5.5% to $66.0 million;
  • Total Field EBITDA increased $2.9 million or 12.8% to $25.7 million;
  • Total Field EBITDA Margin increased 260 basis points to 39.0%;
  • Total Overhead increased $0.9 million or 12.0% to $8.4 million;
  • Total Overhead Margin increased 70 basis points to 12.8%;
  • Consolidated EBITDA increased $2.0 million or 13.3% to $17.3 million;
  • Consolidated EBITDA Margin increased 180 basis points to 26.2%; and
  • Diluted EPS increased $0.12 or 92.3% to $0.25.

First Nine Months of 2019 versus First Nine Months of 2018

  • Total Revenue increased $6.3 million or 3.2% to $202.5 million;
  • Total Field EBITDA increased $4.6 million or 5.9% to $81.5 million;
  • Total Field EBITDA Margin increased 110 basis points to 40.3%;
  • Total Overhead decreased $0.8 million or 3.4% to $24.2 million;
  • Total Overhead Margin decreased 80 basis points to 12.0%;
  • Consolidated EBITDA increased $5.4 million or 10.4% to $57.3 million;
  • Consolidated EBITDA Margin increased 190 basis points to 28.3%; and
  • Diluted EPS increased $0.23 or 31.9% to $0.95.

Third quarter GAAP highlights are shown below:

Third Quarter 2019 versus Third Quarter 2018

  • Total Revenue of $66.1 million, an increase of 2.9%;
  • Net Income of $0.6 million, a decrease of 73.8%; and
  • GAAP Diluted Earnings Per Share of $0.03, a decrease of 72.7%.

First Nine Months of 2019 versus First Nine Months of 2018

  • Total Revenue of $203.0 million, an increase of 0.7%;
  • Net Income of $12.0 million, a decrease of 16.4%; and
  • GAAP Diluted Earnings Per Share of $0.66, a decrease of 15.4%.

Given our confidence that the performance turnaround of our existing portfolio this year will continue and reach even higher levels of revenue, earnings and Free Cash Flow performance in 2020 and thereafter, I am delighted to report that we have returned to our growth capital allocation strategy by selective acquisition of only high quality larger businesses in the best strategic markets. On October 9th, we announced the acquisition of Lombardo Funeral Homes, which is the “Best in Class” funeral service provider in Buffalo, New York and largest funeral home business in Western New York with four funeral chapels serving approximately 2,000 families annually.

Additionally, I am honored and very excited to announce the acquisition, effective today, of Rest Haven Funeral Home and Cemetery in Rockwall, Texas, which was founded in 1970 by Dewayne Cain and has grown into a premier funeral home and cemetery combination business serving the Dallas-Fort Worth Metroplex. Rest Haven Funeral Home and Cemetery, under Dewayne’s visionary leadership over the last fifty years, has not only kept pace with the explosive growth in Rockwall and the surrounding area northeast of Dallas, the business has substantially expanded by adding two more funeral home locations in nearby Rowlett and Royse City as well as ancillary services and businesses including the onsite Northeast Texas Crematory, Care Center, The Flower Box and Pet Memories.

Given the remarkable progress we have made over the past year toward restoring the high and sustainable performance of our existing portfolio of funeral homes and cemeteries, in combination with getting back on a highly selective growth trajectory with our partnership affiliation with Lombardo Funeral Homes and Rest Haven Funeral Homes and Cemetery, plus a new LOI on a high quality combination business expected to close at the beginning of 2020, we are able to once again substantially increase Carriage’s Rolling Four Quarter Outlook, as shown below.

    Range
(in millions, except per share amounts)
Revenues   $294 - $300
Consolidated EBITDA   $85 - $88
Adjusted Net Income   $27 - $30
Adjusted Diluted Earnings Per Share   $1.55 - $1.65
Free Cash Flow   $38 - $41

As we approach the end of 2019, a year of dramatic change and renewal with the theme ‘Carriage Services 2019: Back to the Future - A New Beginning - Part II’, I would like to thank from the bottom of my heart all those Managing Partners, Sales Managers and their winning teams of employees in each business as well as our field operations Directors of Support and all the leadership teams in our Houston Support Center who responded so magnificently to the challenges of this past year. For as surely as night follows day, because of you ‘The best is yet to come!’ for our company,” concluded Mr. Payne.

HIGH PERFORMANCE HEROES

The following are High Performance Hero Managing Partners leading us during the third quarter on our Good To Great Journey that never ends:

Ben Friberg Heritage Funeral Home & Crematory; Ft. Oglethorpe, GA
David DeRubeis Cody-White Funeral Home; Milford, CT
Courtney Charvet North Brevard Funeral Home; Titusville, FL
John Appel Garden of Memories Cemetery; Metairie, LA
Brian Binion Steen Funeral Homes; Ashland, KY
Deanna Kelly Havenbrook Funeral Home; Norman, OK
Brian Sisson Jay Chapel Funeral Directors; Madera, CA
Jenny Chen Grant Miller Chapel; Oakland, CA
Alan Kerrick Dakan Funeral Chapels; Caldwell, ID
Trent Nielson Hennessey Valley Funeral Home & Crematory; Spokane, WA
*Nicholas Welzenbach Darling & Fischer Funeral Homes; Los Gatos, CA; and
Los Gatos Memorial Park; San Jose, CA
*Qualified for 2 Businesses

TRUST FUND PERFORMANCE

Shown below are consolidated performance metrics for the combined trust fund portfolios (preneed funeral, preneed cemetery and cemetery perpetual care) at key dates.

Investment Performance
    Investment Performance(1)   Index Performance
    Discretionary Total Trust   S&P 500
Stock Index
High Yield
Index
70/30 index
Benchmark(2)
               
9 months ended 9/30/19   17.4% 15.8%   20.6% 11.4% 14.2%
1 year ended 12/31/18   (8.3%) (7.4%)   (4.2%) (2.1%) (2.7%)
2 years ended 12/31/18   3.6% 4.0%   16.5% 5.3% 8.6%
3 years ended 12/31/18   24.0% 23.0%   30.4% 23.3% 25.4%
4 years ended 12/31/18   20.2% 19.7%   32.2% 17.8% 22.1%
5 years ended 12/31/18   30.3% 29.2%   50.3% 20.7% 29.5%
               
(1) Investment performance includes realized income and unrealized appreciation (depreciation).
(2) The 70/30 Benchmark is 70% weighted to the High Yield Index and 30% weighted to the S&P 500 Stock Index.


Asset Allocation as of September 30, 2019
(in thousands)
    Discretionary
Trust Funds
  Total
Trust Funds
Asset Class   MV %   MV %
Equities   $ 59,101   31 %   $ 61,642   27 %
Fixed Income     109,136   58 %     121,839   54 %
Cash     19,165   10 %     40,848   18 %
Other/Insurance     2,734   1 %     2,918   1 %
Total Portfolios   $ 190,136   100 %   $ 227,247   100 %

The total return for our Discretionary Preneed Funeral and Cemetery Trusts through the first nine months was 17.4% and flat for the third quarter. 

ADJUSTED FREE CASH FLOW

We produced Adjusted Free Cash Flow from operations for the three and nine months ended September 30, 2019 of $12.5 million and $31.6 million, respectively, compared to Adjusted Free Cash Flow from operations of $10.0 million and $32.5 million for the corresponding periods in 2018. A reconciliation of Cash Flow Provided by Operations to Adjusted Free Cash Flow for the three and nine months ended September 30, 2018 and 2019 is as follows (in thousands):

  For the Three Months
Ended September 30,
  For the Nine Months
Ended September 30,
 
  2018   2019   2018   2019
Cash flow provided by operations $ 12,436     $ 14,149     $ 38,717     $ 36,061  
Cash used for maintenance capital expenditures (2,482 )   (2,006 )   (6,196 )   (6,181 )
Free Cash Flow $ 9,954     $ 12,143     $ 32,521     $ 29,880  
               
Plus: Incremental Special Items:              
Severance and Retirement Costs     298         1,126  
Litigation Reserve     94         575  
Adjusted Free Cash Flow $ 9,954     $ 12,535     $ 32,521     $ 31,581  


ROLLING FOUR QUARTER OUTLOOK

The Rolling Four Quarter Outlook (“Outlook”) reflects management’s opinion on the performance of the portfolio of existing businesses, including performance of existing trusts, and excludes size and timing of acquisitions for the Rolling Four Quarter Outlook period ending September 30, 2020 unless we have a signed Letter of Intent (LOI) and high likelihood of a closing within 90 days. This Outlook is not intended to be management estimates or forecasts of our future performance, as we believe precise estimates will be precisely wrong all the time. Rather our intent and goal is to reflect a “Roughly Right Range” most of the time of future Outlook performance as we execute our Standards Operating, Strategic Acquisition and 4E Leadership Models over time.

Factors affecting our analysis include, among others, funeral contract volumes, average revenue per funeral service, cemetery interment volumes, preneed cemetery sales, capital expenditures and the execution of our funeral and our cemetery Standards Operating Model. Adjusted Net Income and Adjusted Diluted Earnings Per Share have been adjusted for accretion on our convertible notes.

The Outlook on Adjusted Diluted Earnings Per Share does not include any changes to our fully diluted share count that could occur related to additional share repurchases or a stock price increase and EPS dilution calculations related to our convertible notes and outstanding and exercisable stock options.

Based on these two recent acquisitions and the LOI anticipated to close within 90 days, we are increasing Carriage’s Rolling Four Quarter Outlook for the period ending September 30, 2020, as shown below:

    Range
(in millions, except per share amounts)
Revenues   $294 - $300
Consolidated EBITDA   $85 - $88
Adjusted Net Income   $27 - $30
Adjusted Diluted Earnings Per Share   $1.55 - $1.65
Free Cash Flow   $38 - $41

CONFERENCE CALL AND INVESTOR RELATIONS CONTACT

Carriage Services has scheduled a conference call for tomorrow, October 29, 2019 at 9:30 a.m. central time. To participate in the call, please dial 866-516-3867 (ID-4099626) and ask for the Carriage Services conference call. A replay of the conference call will be available through November 3, 2019 and may be accessed by dialing 855-859-2056 (ID-4099626). The conference call will also be available at www.carriageservices.com. For any investor relations questions, please contact Viki Blinderman at 713-332-8568 or Ben Brink at 713-332-8441 or email InvestorRelations@carriageservices.com.


 
CARRIAGE SERVICES, INC.
OPERATING AND FINANCIAL TREND REPORT
(IN THOUSANDS - EXCEPT PER SHARE AMOUNTS)
           
  Three Months Ended September 30,   Nine Months Ended September 30,
  2018 2019 % Change   2018 2019 % Change
               
Same Store Contracts              
Atneed Contracts 6,060   6,492   7.1 %   19,553   19,909   1.8 %
Preneed Contracts 1,360   1,418   4.3 %   4,514   4,418   (2.1 %)
Total Same Store Funeral Contracts 7,420   7,910   6.6 %   24,067   24,327   1.1 %
Acquisition Contracts              
Atneed Contracts 1,108   1,198   8.1 %   2,982   3,641   22.1 %
Preneed Contracts 116   111   (4.3 %)   302   432   43.0 %
Total Acquisition Funeral Contracts 1,224   1,309   6.9 %   3,284   4,073   24.0 %
Total Funeral Contracts 8,644   9,219   6.7 %   27,351   28,400   3.8 %
               
Funeral Operating Revenue              
Same Store Revenue $ 40,189   $ 41,470   3.2 %   $ 129,574   $ 128,757   (0.6 %)
Acquisition Revenue 7,400   7,750   4.7 %   20,228   24,372   20.5 %
Total Funeral Operating Revenue $ 47,589   $ 49,220   3.4 %   $ 149,802   $ 153,129   2.2 %
               
Cemetery Operating Revenue              
Same Store Revenue $ 11,091   $ 12,817   15.6 %   $ 34,228   $ 37,333   9.1 %
Acquisition Revenue     %       %
Total Cemetery Operating Revenue $ 11,091   $ 12,817   15.6 %   $ 34,228   $ 37,333   9.1 %
               
Financial Revenue              
Preneed Funeral Commission Income $ 360   $ 436   21.1 %   $ 974   $ 1,124   15.4 %
Preneed Funeral Trust Earnings 1,717   1,752   2.0 %   5,624   5,463   (2.9 %)
Cemetery Trust Earnings 1,392   1,446   3.9 %   4,327   4,320   (0.2 %)
Preneed Cemetery Finance Charges 436   345   (20.9 %)   1,239   1,118   (9.8 %)
Total Financial Revenue $ 3,905   $ 3,979   1.9 %   $ 12,164   $ 12,025   (1.1 %)
               
Total Divested Revenue $ 1,656   $ 109       $ 5,281   $ 471    
               
Total Revenue $ 64,241   $ 66,125   2.9 %   $ 201,475   $ 202,958   0.7 %
               
Field EBITDA              
Same Store Funeral EBITDA $ 13,788   $ 14,994   8.7 %   $ 48,261   $ 48,233   (0.1 %)
Same Store Funeral EBITDA Margin 34.3 % 36.2 % 190  bp   37.2 % 37.5 % 30  bp
Acquisition Funeral EBITDA 2,522   2,737   8.5 %   6,968   9,073   30.2 %
Acquisition Funeral EBITDA Margin 34.1 % 35.3 % 120  bp   34.4 % 37.2 % 280  bp
Total Funeral EBITDA $ 16,310   $ 17,731   8.7 %   $ 55,229   $ 57,306   3.8 %
Total Funeral EBITDA Margin 34.3 % 36.0 % 170  bp   36.9 % 37.4 % 50  bp
                   
Same Store Cemetery EBITDA $ 3,007   $ 4,439   47.6 %   $ 10,753   $ 12,909   20.1 %
Same Store Cemetery EBITDA Margin 27.1 % 34.6 % 750  bp   31.4 % 34.6 % 320  bp
Acquisition Cemetery EBITDA     %       %
Acquisition Cemetery EBITDA Margin % % —  bp   % % —  bp
Total Cemetery EBITDA $ 3,007   $ 4,439   47.6 %   $ 10,753   $ 12,909   20.1 %
Total Cemetery EBITDA Margin 27.1 % 34.6 % 750  bp   31.4 % 34.6 % 320  bp
                   
Funeral Financial EBITDA $ 1,776   $ 1,922   8.2 %   $ 5,797   $ 5,815   0.3 %
Cemetery Financial EBITDA 1,716   1,645   (4.1 %)   5,194   5,012   (3.5 %)
Total Financial EBITDA $ 3,492   $ 3,567   2.1 %   $ 10,991   $ 10,827   (1.5 %)
Total Financial EBITDA Margin 89.4 % 89.6 % 20  bp   90.4 % 90.0 % (40  bp)
                   
Total Divested EBITDA $ 430   $ (6 )       $ 1,504   $ 113      
Total Divested EBITDA Margin 26.0 % %       28.5 % %    
                   
Total Field EBITDA $ 23,239   $ 25,731   10.7 %   $ 78,477   $ 81,155   3.4 %
Total Field EBITDA Margin 36.2 % 38.9 % 270  bp   39.0 % 40.0 % 100  bp
               
               
               
OPERATING AND FINANCIAL TREND REPORT
(IN THOUSANDS - EXCEPT PER SHARE AMOUNTS)
               
  Three Months Ended September 30,   Nine Months Ended September 30,
  2018 2019 % Change   2018 2019 % Change
               
Overhead              
Total Variable Overhead $ 1,410   $ 2,852   102.3 %   $ 6,666   $ 7,832   17.5 %
Total Regional Fixed Overhead 903   1,062   17.6 %   3,043   3,091   1.6 %
Total Corporate Fixed Overhead 5,230   4,925   (5.8 %)   15,371   14,528   (5.5 %)
Total Overhead $ 7,543   $ 8,839   17.2 %   $ 25,080   $ 25,451   1.5 %
Overhead as a percentage of Revenue 11.7 % 13.4 % 170  bp   12.4 % 12.5 % 10  bp
                   
Consolidated EBITDA $ 15,696   $ 16,892   7.6 %   $ 53,397   $ 55,704   4.3 %
Consolidated EBITDA Margin 24.4 % 25.5 % 110  bp   26.5 % 27.4 % 90  bp
               
Other Expenses and Interest              
Depreciation & Amortization $ 4,516   $ 4,435   (1.8 %)   $ 13,100   $ 13,355   1.9 %
Non-Cash Stock Compensation 915   513   (43.9 %)   2,924   1,616   (44.7 %)
Interest Expense 6,285   6,283   %   14,763   18,907   28.1 %
Accretion of Discount on Convertible Subordinated Notes 246   61   (75.2 %)   1,961   178   (90.9 %)
Net Loss on Early Extinguishment of Debt           936        
Other, Net 347   4,076         345   3,914      
Pre-Tax Income $ 3,387   $ 1,524   (55.0 %)   $ 19,368   $ 17,734   (8.4 %)
Provision for Income Taxes 1,028   930       5,423   5,551    
Tax Adjustment Related to Certain Discrete Items 159   17       (358 ) 219    
Net Tax Provision 1,187   947       5,065   5,770    
GAAP Net Income $ 2,200   $ 577   (73.8 %)   $ 14,303   $ 11,964   (16.4 %)
               
Special Items, Net of Tax, except for **              
Severance and Retirement Costs $   $ 235       $   $ 889    
Accretion of Discount on Convertible Subordinated Notes ** 246   61       1,961   178    
Net Loss on Early Extinguishment of Debt         740      
Loss on Sale of Business and Other Costs 277   3,143       277   3,143    
Goodwill and Other Impairments   577         577    
Litigation Reserve   74         454    
Tax Expense Related to Divested Business **   860         860    
Gain on Insurance Reimbursements   (504 )       (504 )  
Adjusted Net Income $ 2,723   $ 5,023   84.5 %   $ 17,281   $ 17,561   1.6 %
Adjusted Net Profit Margin 4.2 % 7.6 % 340  bp   8.6 % 8.7 % 10  bp
               
Adjusted Basic Earnings Per Share $ 0.14   $ 0.28   100.0 %   $ 0.97   $ 0.97   %
Adjusted Diluted Earnings Per Share $ 0.14   $ 0.28   100.0 %   $ 0.94   $ 0.97   3.2 %
               
GAAP Basic Earnings Per Share $ 0.11   $ 0.03   (72.7 %)   $ 0.80   $ 0.66   (17.5 %)
GAAP Diluted Earnings Per Share $ 0.11   $ 0.03   (72.7 %)   $ 0.78   $ 0.66   (15.4 %)
               
Weighted Average Basic Shares Outstanding 19,060   17,737       17,701   17,917    
Weighted Average Diluted Shares Outstanding 19,161   17,768       18,273   17,951    
               
Reconciliation to Adjusted Consolidated EBITDA              
Consolidated EBITDA $ 15,696   $ 16,892   7.6 %   $ 53,397   $ 55,704   4.3 %
Severance and Retirement Costs   298         1,126    
Litigation Reserve   94         575    
Adjusted Consolidated EBITDA $ 15,696   $ 17,284   10.1 %   $ 53,397   $ 57,405   7.5 %
Adjusted Consolidated EBITDA Margin 24.4 % 26.1 % 170  bp   26.5 % 28.3 % 180  bp
                       



CARRIAGE SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

      (unaudited)
  December 31, 2018   September 30, 2019
ASSETS      
Current assets:      
Cash and cash equivalents $ 644     $ 5,812  
Accounts receivable, net 18,897     17,699  
Inventories 6,751     6,692  
Prepaid and other current assets 3,011     1,764  
Total current assets 29,303     31,967  
Preneed cemetery trust investments 62,432     68,333  
Preneed funeral trust investments 82,074     87,059  
Preneed receivables, net 18,441     19,467  
Receivables from preneed trusts 17,073     17,989  
Property, plant and equipment, net 260,838     258,035  
Cemetery property, net 74,958     75,064  
Goodwill 303,887     299,181  
Intangible and other non-current assets, net 24,425     24,028  
Operating lease right-of-use assets     22,628  
Cemetery perpetual care trust investments 44,071     48,397  
Total assets $ 917,502     $ 952,148  
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
Current portion of long-term debt $ 2,015     $ 1,679  
Current portion of finance lease obligations 312     282  
Current portion of operating lease obligations     1,524  
Accounts payable 9,987     6,135  
Accrued and other liabilities 22,644     29,270  
Total current liabilities 34,958     38,890  
Long-term debt, net of current portion 6,925     6,135  
Credit facility 26,145     17,099  
Convertible subordinated notes due 2021 5,732     5,902  
Senior notes due 2026 319,108     319,577  
Obligations under finance leases, net of current portion 6,143     5,929  
Obligations under operating leases, net of current portion     21,758  
Deferred preneed cemetery revenue 45,997     45,195  
Deferred preneed funeral revenue 28,606     29,522  
Deferred tax liability 31,263     32,533  
Other long-term liabilities 3,133     1,935  
Deferred preneed cemetery receipts held in trust 62,432     68,333  
Deferred preneed funeral receipts held in trust 82,074     87,059  
Care trusts’ corpus 43,494     47,771  
Total liabilities 696,010     727,638  
Commitments and contingencies:      
Stockholders’ equity:      
Common stock 257     259  
Additional paid-in capital 243,849     242,657  
Retained earnings 71,680     83,644  
Treasury stock (94,294 )   (102,050 )
Total stockholders’ equity 221,492     224,510  
      Total liabilities and stockholders’ equity $ 917,502     $ 952,148  
               



CARRIAGE SERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)

...
  (unaudited)
  Three Months Ended September 30,   Nine Months Ended September 30,
  2018   2019   2018   2019
Revenues:              
Service revenue $ 33,003     $ 34,133     $ 103,660     $ 105,444  
Property and merchandise revenue 27,026     28,002     84,741     85,458  
Other revenue 4,212     3,990     13,074     12,056  
  64,241     66,125     201,475     202,958  
Field costs and expenses:              
Cost of service 18,085     18,011     54,031     54,062  
Cost of merchandise 22,505     21,972     67,796     66,544  
Cemetery property amortization 964     972     2,763     2,990  
Field depreciation expense 3,047     3,106     8,925     9,250  
Regional and unallocated funeral and cemetery costs