Carriage Services, Inc. (CSV): Business Model Canvas [10-2024 Updated]
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Carriage Services, Inc. (CSV) Bundle
In the complex and sensitive world of funeral services, Carriage Services, Inc. (CSV) stands out with a well-defined business model that addresses the diverse needs of families during difficult times. This model emphasizes key partnerships with national insurance providers and local funeral homes, while focusing on value propositions like personalized care and financial security through preneed contracts. Discover how CSV’s structured approach not only enhances customer relationships but also drives sustainable revenue streams in this essential industry.
Carriage Services, Inc. (CSV) - Business Model: Key Partnerships
National insurance providers for preneed sales
Carriage Services, Inc. has established strategic partnerships with national insurance providers to enhance its preneed sales. These partnerships facilitate the sale of preneed funeral insurance policies, which are crucial for securing future funeral services for customers.
As of Q3 2024, the company reported a significant increase in general agency commission income, which rose by $1.3 million compared to the same period in 2023. This growth is attributed to the strategic partnership initiated in the second quarter of 2023, enabling increased sales of preneed insurance policies.
Strategic vendors for marketing and operational support
Carriage Services collaborates with various strategic vendors that provide marketing and operational support. These partnerships are vital for enhancing brand visibility and improving operational efficiencies across its service offerings.
The company has effectively utilized vendor partnerships to implement cost management strategies, resulting in a decrease in operating expenses as a percentage of revenue by 11.5% in Q3 2024 compared to Q3 2023. This reduction was primarily due to lower promotional expenses and more efficient operational practices.
Local funeral homes for service expansion
Partnerships with local funeral homes play a critical role in Carriage Services' strategy for geographic expansion and service diversification. These collaborations enable the company to extend its reach and enhance service delivery in various markets.
During the nine months ended September 30, 2024, Carriage Services sold six funeral homes for an aggregate of $10.9 million. This divestiture is part of a broader strategy to optimize its portfolio and focus on high-performing locations.
Cemetery trust fund managers for investment performance
Carriage Services works closely with cemetery trust fund managers to ensure the effective management of its preneed cemetery trust investments, which are essential for funding future services and maintaining property standards.
As of September 30, 2024, the company reported preneed funeral trust investments valued at $112.4 million, reflecting a market value as a percentage of cost of 97.9%. The management of these funds is critical for ensuring that the company can meet its long-term obligations to customers.
| Partnership Type | Key Metrics | Impact |
|---|---|---|
| National Insurance Providers | General agency commission income increased by $1.3 million Q3 2024 vs. Q3 2023 | Enhanced preneed sales through strategic insurance partnerships |
| Strategic Vendors | Operating expenses decreased by 11.5% Q3 2024 vs. Q3 2023 | Improved cost management and operational efficiency |
| Local Funeral Homes | Sold six funeral homes for $10.9 million | Portfolio optimization and service expansion |
| Cemetery Trust Fund Managers | Preneed funeral trust investments valued at $112.4 million | Effective management of long-term customer obligations |
Carriage Services, Inc. (CSV) - Business Model: Key Activities
Selling preneed and atneed funeral and cemetery services
Carriage Services, Inc. (CSV) generates significant revenue from selling both preneed and atneed funeral and cemetery services. For the nine months ended September 30, 2024, the company reported preneed revenue of $66.15 million, which accounted for 69.0% of total operating revenue. The number of preneed interment rights sold during this period was 11,127, with an average price of $5,408 per interment right.
Atneed revenue for the same period reached $29.34 million, representing approximately 31.0% of total operating revenue. The increase in revenue highlights the efficacy of the company's sales strategies and market penetration efforts in the funeral services sector.
Managing and operating funeral homes and cemeteries
Carriage Services operates a diverse portfolio of funeral homes and cemeteries. As of September 30, 2024, the company reported total revenue from funeral home operations of $199.13 million for the nine months, with an adjusted operating profit of $81.97 million. The average revenue per funeral contract, excluding preneed funeral trust earnings, was $5,557, despite a 4.1% decrease in contract volume.
The company’s cemetery segment also performed well, with operating revenue of $95.34 million and an adjusted operating profit of $44.90 million during the same period. This demonstrates effective management practices and operational efficiencies across its funeral homes and cemeteries.
Marketing and promoting services to local communities
Carriage Services engages in active marketing and promotional efforts to enhance its visibility and service uptake within local communities. For the nine months ended September 30, 2024, the company reported a decrease in operating expenses as a percentage of revenue by 6.7%, indicating successful cost management initiatives. This reduction includes a 4.7% decrease in salaries and benefits expenses and a 2.9% decrease in promotional expenses, which suggests that the company is optimizing its marketing spend effectively.
Conducting financial management and capital allocation
Financial management is critical for Carriage Services, especially in capital allocation. The company reported net income of $23.10 million for the nine months ended September 30, 2024, an increase from $21.78 million in the same period of 2023. Total cash provided by operating activities was $42.72 million.
In terms of capital expenditures, Carriage Services allocated $11.71 million for growth and maintenance capital expenditures during the nine months. This disciplined approach to financial management and capital allocation supports the company's long-term strategic goals and operational sustainability.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Preneed Revenue | $66.15 million | $47.02 million |
| Atneed Revenue | $29.34 million | $28.35 million |
| Total Revenue (Funeral Homes) | $199.13 million | $197.22 million |
| Adjusted Operating Profit (Funeral Homes) | $81.97 million | $76.88 million |
| Total Cash Provided by Operating Activities | $42.72 million | $61.85 million |
| Capital Expenditures | $11.71 million | $13.10 million |
Carriage Services, Inc. (CSV) - Business Model: Key Resources
Network of 162 Funeral Homes and 31 Cemeteries
Carriage Services operates a network comprising 162 funeral homes and 31 cemeteries across various regions, providing essential services for end-of-life arrangements. This extensive network enables the company to serve a broad customer base and maintain operational efficiency.
Experienced Workforce and Management Team
The company prides itself on its experienced workforce, which includes skilled funeral directors and management professionals. The management team has a proven track record in the funeral services industry, contributing to Carriage Services' strategic direction and operational excellence.
Cemetery Perpetual Care Trust Funds
Carriage Services maintains perpetual care trust funds for its cemeteries, which are essential for ensuring the long-term maintenance and care of cemetery properties. As of September 30, 2024, these trust funds had a market value of approximately $111.6 million, providing financial stability and assurance to clients regarding the future upkeep of their chosen burial sites.
Strong Brand Reputation in the Funeral Services Industry
Carriage Services has built a strong brand reputation within the funeral services sector, known for its commitment to quality and compassionate service. This reputation enhances customer trust and loyalty, which is critical in a sensitive industry focused on end-of-life services.
| Key Resource | Details |
|---|---|
| Funeral Homes | 162 funeral homes |
| Cemeteries | 31 cemeteries |
| Perpetual Care Trust Funds | Market value of approximately $111.6 million |
| Experienced Workforce | Skilled funeral directors and management professionals |
| Brand Reputation | Established reputation for quality and compassionate service |
Carriage Services, Inc. (CSV) - Business Model: Value Propositions
Comprehensive funeral and cemetery services
Carriage Services, Inc. offers a wide range of services in the funeral and cemetery sectors, which is crucial for meeting diverse customer needs. For the nine months ended September 30, 2024, the company reported total revenue of $306.5 million, reflecting an increase of $22.8 million compared to the prior year. The operating revenue from cemetery services was $95.3 million, up from $74.5 million in the same period of 2023.
| Service Type | Revenue (in thousands) | Year-over-Year Growth (%) |
|---|---|---|
| Funeral Services | $199,128 | 1.0% |
| Cemetery Services | $107,370 | 24.5% |
| Total Revenue | $306,498 | 8.0% |
Personalized service catering to family needs
Carriage Services emphasizes personalized service, tailoring offerings to meet the unique needs of families during difficult times. The company has experienced a 26.1% increase in the number of preneed interment rights sold for the three months ended September 30, 2024, with a total of 3,511 rights sold at an average price of $5,360.
Financial security through preneed contracts
The company provides financial security through preneed contracts, allowing families to lock in prices for services to mitigate future costs. For the nine months ended September 30, 2024, preneed revenue accounted for 69.0% of total operating revenue, amounting to $66.2 million, up from $47.0 million in 2023. This strategy not only secures revenue but also builds customer trust and commitment.
Commitment to quality and compassionate care
Carriage Services is dedicated to delivering high-quality services with compassion. The adjusted operating profit margin for the cemetery segment increased to 47.1% as of September 30, 2024, reflecting effective cost management and a focus on quality service delivery. The company aims to create lasting relationships with families, enhancing its reputation and customer loyalty.
Carriage Services, Inc. (CSV) - Business Model: Customer Relationships
Building trust through transparent communication
Carriage Services, Inc. emphasizes the importance of transparent communication in building trust with their clients. This is evident from their financial metrics, which highlight a significant increase in customer engagement and satisfaction. For instance, the company reported a 28.2% increase in the number of preneed interment rights sold, reflecting successful outreach and communication efforts within their service areas.
Offering ongoing support to families during grief
Carriage Services provides comprehensive support to families during their grieving process. In the nine months ended September 30, 2024, the company achieved an operating revenue of $306.5 million, which includes $66.15 million from preneed revenue, indicating a robust demand for their funeral services and ongoing support. This revenue structure allows them to allocate resources effectively towards customer support initiatives.
Engaging with customers via community events
Community engagement is a core strategy for Carriage Services, which organizes various local events to connect with families. The company’s funeral contract volume reached 33,483 for the nine months ended September 30, 2024, demonstrating their active participation in community outreach and the establishment of lasting relationships.
Utilizing feedback for service improvement
Feedback mechanisms are integral to Carriage Services' operational strategy. The company reported a 4.1% decrease in funeral contract volume, which they have addressed by enhancing their service offerings based on customer feedback. Their average revenue per contract increased to $5,557, indicating that adjustments made in response to customer insights have been effective.
| Metric | Value |
|---|---|
| Operating Revenue (2024) | $306.5 million |
| Preneed Revenue (2024) | $66.15 million |
| Funeral Contract Volume (2024) | 33,483 |
| Average Revenue per Contract (2024) | $5,557 |
| Number of Preneed Interment Rights Sold (2024) | 11,127 |
| Increase in Preneed Interment Rights Sold (YoY) | 28.2% |
Carriage Services, Inc. (CSV) - Business Model: Channels
Direct sales through funeral homes and cemeteries
Carriage Services, Inc. generates a significant portion of its revenue from direct sales through its network of funeral homes and cemeteries. For the nine months ended September 30, 2024, the company reported:
- Total revenue of $306.5 million, with funeral services generating $199.1 million and cemetery services generating $107.4 million.
- A decline in funeral contract volume by 4.1%, offset by a 3.7% increase in average revenue per contract, reaching $5,557.
- Average price per preneed interment right sold increased to $5,408, up from $4,990 in the previous year.
Online platforms for preneed service information
The company has enhanced its online presence to facilitate preneed service inquiries. This includes:
- The implementation of a user-friendly website that provides comprehensive information on preneed services.
- Online booking capabilities for consultations and service arrangements, contributing to a growing segment of revenue.
- Increased engagement through digital marketing strategies, resulting in a 28.2% increase in preneed interment rights sold, totaling 11,127 for the nine months ended September 30, 2024.
Partnerships with insurance providers for preneed contracts
Carriage Services has established strategic partnerships with major insurance providers to offer preneed contracts. Key metrics include:
- Growth in general agency commission income from preneed insurance policies, which increased by $2.9 million for the nine months ended September 30, 2024.
- A total of $66.2 million in preneed revenue, accounting for 69.0% of total operating revenue.
Marketing through local community outreach
Community outreach remains a vital channel for Carriage Services, focusing on building local relationships. The company has reported:
- A $15.4 million increase in general, administrative, and other expenses, mainly due to enhanced community marketing efforts.
- Continued efforts to engage with local organizations and events, which have led to increased brand visibility and customer engagement.
| Channel | Revenue Contribution (2024) | Growth Rate | Average Revenue per Contract |
|---|---|---|---|
| Direct Sales (Funeral Homes) | $199.1 million | -4.1% | $5,557 |
| Cemetery Services | $107.4 million | 28.2% (interment rights sold) | $5,408 |
| Insurance Partnerships | $66.2 million (preneed revenue) | $2.9 million increase | N/A |
| Community Outreach | Part of General Expenses | $15.4 million increase | N/A |
Carriage Services, Inc. (CSV) - Business Model: Customer Segments
Families seeking funeral and burial services
Carriage Services, Inc. serves families looking for comprehensive funeral and burial services. In the nine months ended September 30, 2024, the company reported operating revenue for funeral services of $185.2 million, with an average revenue per funeral contract of $5,557. The overall funeral contract volume during this period was 33,483.
Individuals planning for future funeral needs
Individuals planning for future funeral needs represent a significant customer segment for Carriage Services, particularly through their preneed services. For the nine months ended September 30, 2024, preneed revenue amounted to $66.15 million, making up 69% of the total operating revenue. The company sold 11,127 preneed interment rights, with an average price per interment right sold of $5,408.
Seniors and their families interested in preneed services
This segment includes seniors who are proactive about their funeral arrangements. As of September 30, 2024, the company experienced a 28.2% increase in the number of preneed interment rights sold compared to the same period in the previous year. The average price per preneed interment right sold was $5,408, reflecting a strategic focus on enhancing the value proposition for this demographic.
Local communities requiring cemetery services
Carriage Services also focuses on local communities that require cemetery services. The cemetery operating revenue for the nine months ended September 30, 2024, totaled $95.34 million, which represents a significant increase from $74.47 million in the same period of 2023. The company sold 11,127 preneed interment rights, with an increase in average price per interment right sold.
| Customer Segment | Revenue (9 Months Ended Sept 30, 2024) | Average Price per Contract/Interment Right | Volume Sold |
|---|---|---|---|
| Families seeking funeral services | $185.2 million | $5,557 | 33,483 |
| Individuals planning for future funeral needs | $66.15 million | $5,408 | 11,127 |
| Seniors and families interested in preneed services | Included in preneed revenue | $5,408 | 11,127 |
| Local communities requiring cemetery services | $95.34 million | Varies | Included in total interment rights sold |
Carriage Services, Inc. (CSV) - Business Model: Cost Structure
Operating costs for funeral homes and cemeteries
For the nine months ended September 30, 2024, Carriage Services, Inc. reported operating expenses totaling approximately $138.5 million, reflecting effective cost management strategies. The adjusted operating profit margin for this period was 45.2%, up from 41.6% in the prior year.
Marketing and promotional expenses
Marketing and promotional expenses decreased by 2.9% as a percentage of revenue for the three months ended September 30, 2024, contributing to overall operating efficiency. General and administrative expenses, which include marketing costs, were approximately $12.2 million for the three months ended September 30, 2024.
Staff salaries and benefits
Staff salaries and benefits accounted for a significant portion of operating costs, with total salaries and benefits expenses decreasing by 4.7% year-over-year. For the nine months ended September 30, 2024, regional and unallocated funeral and cemetery costs, which include management salaries and benefits, totaled approximately $12.2 million.
Maintenance of facilities and equipment
Maintenance capital expenditures for the nine months ended September 30, 2024, totaled approximately $5.0 million, which included general equipment and facility repairs. This reflects a decrease compared to $5.9 million for the same period in 2023.
| Cost Category | Q3 2024 Amount (in thousands) | Q3 2023 Amount (in thousands) | Change (%) |
|---|---|---|---|
| Operating Expenses | 138,473 | 117,965 | 17.3 |
| Marketing Expenses | 12,200 | 11,300 | 7.9 |
| Salaries and Benefits | 12,200 | 13,339 | -8.6 |
| Maintenance Expenditures | 5,013 | 5,926 | -15.4 |
Overall, Carriage Services, Inc. has focused on optimizing its cost structure by reducing certain operating expenses while maintaining effective marketing outreach and staff compensation strategies.
Carriage Services, Inc. (CSV) - Business Model: Revenue Streams
Sales from atneed funeral services
For the three months ended September 30, 2024, Carriage Services reported atneed revenue of $29.343 million, compared to $28.353 million for the same period in 2023. This reflects a steady demand for immediate funeral services.
During the nine months ended September 30, 2024, atneed revenue totaled $85.788 million, a slight increase from $84.269 million in 2023. The average revenue per funeral contract, excluding preneed funeral trust earnings, was $5,557.
Revenue from preneed funeral and cemetery contracts
In the nine months ended September 30, 2024, preneed revenue reached $66.150 million, up from $47.016 million in the same period of 2023, marking an increase of 40.7%. The number of preneed interment rights sold was 11,127, with an average price of $5,408.
Earnings from cemetery perpetual care trust funds
For the three months ended September 30, 2024, other revenue, which includes preneed cemetery trust revenue and finance charges, increased by $0.8 million compared to the previous year. The total revenue from perpetual care trust funds for the nine months ended September 30, 2024, was $11.877 million, slightly up from $11.101 million in 2023.
Ancillary services such as merchandise and memorials
Ancillary revenue, which includes sales from merchandise, memorials, and other services, generated $24.212 million in the three months ended September 30, 2024, compared to $24.392 million in the same period of 2023. This represents a minor decline, attributed to a strategic decision to cease certain low-margin operations.
The breakdown of revenue streams can be summarized in the following table:
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) |
|---|---|---|---|---|
| Atneed Funeral Services | $29.343 | $28.353 | $85.788 | $84.269 |
| Preneed Funeral and Cemetery Contracts | $23.207 | $15.168 | $66.150 | $47.016 |
| Cemetery Perpetual Care Trust Funds | $3.997 | $3.288 | $11.877 | $11.101 |
| Ancillary Services | $24.212 | $24.392 | $75.158 | $76.750 |
Article updated on 8 Nov 2024
Resources:
- Carriage Services, Inc. (CSV) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Carriage Services, Inc. (CSV)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Carriage Services, Inc. (CSV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.