Carriage Services, Inc. · NYSE:CSV
Carriage Services — Johnson Rice & Company Deathcare Conference 2002
22 slides from Carriage Services's conference presentation, Oct 2, 2002
Slide 1: Johnson Rice & Company Deathcare Conference
Johnson Rice & Company Deathcare Conference October 2, 2002 (NYSE: CSV) Copyright 2002 © Carriage Services, Inc. All rights reserved Forward-looking statements contained herein are subject to certain risks and uncertainties as further described in the last slide in this presentation.
Slide 2: Company Overview
Company Overview ! Fourth largest publicly traded deathcare company ! 149 funeral homes and 30 cemeteries in 29 states ! Successful Fresh Start Program largely complete ! Upgraded leadership is driving new strategies ! Culture of excellence to build a lasting enterprise
Slide 3: Mission Statement
Mission Statement We are committed to being the most professional, ethical and highest quality funeral and cemetery service organization in our industry.
Slide 4: Guiding Principles
Guiding Principles ! Honesty, Integrity and Quality in all that we do ! Hard work, pride of accomplishment and shared success through employee ownership ! Belief in the power of people through individual initiative and teamwork ! Outstanding service and profitability go hand-in-hand ! Growth of the
Slide 5: Key Elements Of Fresh Start
Key Elements Of Fresh Start ! Downsize corporate organization ! Upgrade corporate and local business leadership ! Change preneed funeral marketing strategy ! Stratify funeral home and cemetery portfolios ! Improve or dispose underperforming businesses ! Adjust carrying value of remaining assets ! Mo
Slide 6: Review Of Five Major Fresh Start Goals
Review Of Five Major Fresh Start Goals 1) Restore credibility to our operating & consolidation model 2) Increase and better align our earnings & cash flow 1999 2000 2001 2002E EPS $0.39 $0.06* $0.51 $0.42 Recurring free cash flow per share ($0.49) $0.12* $0.83 $0.74 * before special charges related
Slide 7: Review Of Five Major Fresh Start Goals
Review Of Five Major Fresh Start Goals 3) Restore market value credibility to balance sheet 4) Reduce debt 5) Reposition company to access capital markets
Slide 8: Review Of Operating Performance
REVIEW OF OPERATING PERFORMANCE
Slide 9: Acquisition Spending
Acquisition Spending ($ in millions) $160 $159 $140 $120 $118 $100 $80 $68 $60 $44 $40 $20 $12 $5 $0 $1 $0 1995 1996 1997 1998 1999 2000* 2001* 2002* * excludes payments of contingent acquisition obligations
Slide 10: Revenue
Revenue ($ in millions) $170 $163 $162 $154 $155 $150 $130 $110 $109 $90 $74 $70 $50 $40 $30 1996 1997 1998 1999 2000 2001 2002E
Slide 11: EPS
EPS (Before special and other non-recurring charges) $0.60 $0.51 $0.50 0.44 0.39 $0.40 0.42 $0.30 0.20 $0.20 $0.10 0.06 $0.00 (0.09) -$0.10 1996 1997 1998 1999 2000 2001 2002E All periods reflect the adoption of SAB 101
Slide 12: EBITDA
EBITDA ($ in millions) $50 $49 $47 $42 $42 $40 $34 $30 $20 $20 $9 $10 $0 1996 1997 1998 1999 2000* 2001* 2002E* * Before nonrecurring special charges
Slide 13: Debt & Contingent Obligations
Debt & Contingent Obligations ($ in millions) $210 $205 $200 $190 $180 $170 $163 $155 $160 $150 $150 $140 11/8/2000 12/31/2001 6/30/2002 2002E
Slide 14: Recurring Operating Free Cash Flow & Stock Price Data
Recurring Operating Free Cash Flow & Stock Price Data ($ in millions, except stock price) $28.44 stock price $22.38 operating free cash flow $20 $19.00 $14.6 $13.0 $10 $5.94 $5.27 $3.00 $1.9 $1.50 $0 $0.5 1996 1997 1998 1999 2000 2001 2002E ($3.9) ($8.0) ($10.5) -$10
Slide 15: Why Own This Stock?
WHY OWN THIS STOCK?
Slide 16: Unique Investment Opportunity
Unique Investment Opportunity ! CSV existing operations visible and predictable ! CSV offers LBO characteristics without promotion ! Favorable risk/reward profile ! Three scenarios with compelling returns
Slide 17: Long-Term Base Case Scenario
Long-Term Base Case Scenario ($ in millions, except per share data) 5-Yr. 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 CAGR Revenue 154 154 155 161 166 171 2.1% EBITDA 42 42 42 44 46 48 2.9% EPS, Diluted 0.42 0.42 0.46 0.55 0.64 0.75 12.2% FCF Per Share 0.74 0.72 0.66 0.71 0.84 0.97 5.6% Pr
Slide 18: Base Case Enterprise Valuation #1
Base Case Enterprise Valuation #1 (Estimated $ in millions, except per share data) 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 Enterprise Value (EV) Debt 150 132 116 104 89 71 Preferred Stock 90 90 90 90 90 90 Mkt. Value Equity 53 71 86 99 114 131 Total 293 293 293 293 293 293 EBITDA 42 42
Slide 19: Base Case Enterprise Valuation #2
Base Case Enterprise Valuation #2 (Estimated $ in millions, except per share data) 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 Enterprise Value (EV) Debt 150 132 116 104 89 71 Preferred Stock 90 90 90 90 90 90 Mkt. Value Equity 53 71 86 99 114 131 Total 293 293 293 293 293 293 EBITDA 42 42
Slide 20: Base Case Enterprise Valuation #3
Base Case Enterprise Valuation #3 (Estimated $ in millions, except per share data) 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 Enterprise Value (EV) Debt 150 132 116 104 89 71 Preferred Stock 90 90 90 90 90 90 Mkt. Value Equity 53 71 86 99 114 131 Total 293 293 293 293 293 293 EBITDA 42 42
Slide 21: A unique investment opportunity… Thank You!
A unique investment opportunity… THANK YOU!
Slide 22: Forward-Looking Information
Forward-Looking Information In addition to historical information, this presentation contains forward-looking statements made by the management of Carriage Services, Inc. (the “Company” or “Carriage”). Such statements are typically identified by terms expressing future expectations or goals. These f
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