We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Carriage Services Inc | NYSE:CSV | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.26 | -1.00% | 25.74 | 26.31 | 25.54 | 26.31 | 92,746 | 21:02:10 |
|
FORM 10-Q
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Commission File Number: 1-11961
|
|
DELAWARE
|
76-0423828
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
|
3040 Post Oak Boulevard, Suite 300
|
|
Houston, Texas, 77056
|
|
(Address of principal executive offices)
|
|
Large accelerated filer
|
o
|
Accelerated filer
|
x
|
Non-accelerated filer
|
o
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
o
|
|
|
Emerging growth company
|
o
|
|
|
Page
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
|
|
|
Item 3. Defaults Upon Senior Securities
|
|
|
|
Item 4. Mine Safety Disclosures
|
|
|
|
Item 5. Other Information
|
|
|
|
|
|
|
|
Item 1.
|
Financial Statements.
|
|
|
|
(unaudited)
|
||||
|
December 31, 2017
|
|
March 31, 2018
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
952
|
|
|
$
|
779
|
|
Accounts receivable, net of allowance for bad debts of $835 in 2017 and $814 in 2018
|
19,655
|
|
|
17,817
|
|
||
Inventories
|
6,519
|
|
|
6,566
|
|
||
Prepaid expenses
|
2,028
|
|
|
1,966
|
|
||
Other current assets
|
986
|
|
|
572
|
|
||
Total current assets
|
30,140
|
|
|
27,700
|
|
||
Preneed cemetery trust investments
|
73,853
|
|
|
70,296
|
|
||
Preneed funeral trust investments
|
90,682
|
|
|
91,782
|
|
||
Preneed receivables, net of allowance for bad debts of $2,278 in 2017 and $2,289 in 2018
|
31,644
|
|
|
20,982
|
|
||
Receivables from preneed trusts
|
15,287
|
|
|
15,802
|
|
||
Property, plant and equipment, net of accumulated depreciation of $115,776 in 2017 and $118,864 in 2018
|
247,294
|
|
|
245,622
|
|
||
Cemetery property, net of accumulated amortization of $37,543 in 2017 and $38,451 in 2018
|
76,331
|
|
|
75,935
|
|
||
Goodwill
|
287,956
|
|
|
287,956
|
|
||
Intangible and other non-current assets
|
18,117
|
|
|
20,830
|
|
||
Cemetery perpetual care trust investments
|
50,229
|
|
|
48,285
|
|
||
Total assets
|
$
|
921,533
|
|
|
$
|
905,190
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Current portion of long-term debt and capital lease obligations
|
$
|
17,251
|
|
|
$
|
17,320
|
|
Accounts payable
|
6,547
|
|
|
7,273
|
|
||
Other liabilities
|
1,361
|
|
|
3,789
|
|
||
Accrued liabilities
|
17,559
|
|
|
12,397
|
|
||
Total current liabilities
|
42,718
|
|
|
40,779
|
|
||
Long-term debt, net of current portion
|
121,034
|
|
|
116,886
|
|
||
Revolving credit facility
|
91,120
|
|
|
83,389
|
|
||
Convertible subordinated notes due 2021
|
124,441
|
|
|
125,733
|
|
||
Obligations under capital leases, net of current portion
|
6,361
|
|
|
6,371
|
|
||
Deferred preneed cemetery revenue
|
54,690
|
|
|
50,797
|
|
||
Deferred preneed funeral revenue
|
34,585
|
|
|
27,251
|
|
||
Deferred tax liability
|
31,159
|
|
|
31,366
|
|
||
Other long-term liabilities
|
3,378
|
|
|
2,819
|
|
||
Deferred preneed cemetery receipts held in trust
|
73,853
|
|
|
70,296
|
|
||
Deferred preneed funeral receipts held in trust
|
90,682
|
|
|
91,782
|
|
||
Care trusts’ corpus
|
49,856
|
|
|
47,561
|
|
||
Total liabilities
|
723,877
|
|
|
695,030
|
|
||
Commitments and contingencies:
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Common stock, $.01 par value; 80,000,000 shares authorized and 22,622,242 and 22,815,774 shares issued at December 31, 2017 and March 31, 2018, respectively
|
226
|
|
|
228
|
|
||
Additional paid-in capital
|
216,158
|
|
|
216,526
|
|
||
Retained earnings
|
57,904
|
|
|
70,038
|
|
||
Treasury stock, at cost; 6,523,370 shares at December 31, 2017 and March 31, 2018
|
(76,632
|
)
|
|
(76,632
|
)
|
||
Total stockholders’ equity
|
197,656
|
|
|
210,160
|
|
||
Total liabilities and stockholders’ equity
|
$
|
921,533
|
|
|
$
|
905,190
|
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2018
|
||||
Revenues:
|
|
|
|
||||
Funeral
|
$
|
54,211
|
|
|
$
|
58,594
|
|
Cemetery
|
13,946
|
|
|
14,793
|
|
||
|
68,157
|
|
|
73,387
|
|
||
Field costs and expenses:
|
|
|
|
||||
Funeral
|
30,429
|
|
|
33,502
|
|
||
Cemetery
|
8,211
|
|
|
8,643
|
|
||
Depreciation and amortization
|
3,471
|
|
|
3,773
|
|
||
Regional and unallocated funeral and cemetery costs
|
2,954
|
|
|
3,281
|
|
||
|
45,065
|
|
|
49,199
|
|
||
Gross profit
|
23,092
|
|
|
24,188
|
|
||
Corporate costs and expenses:
|
|
|
|
||||
General, administrative and other
|
6,847
|
|
|
6,618
|
|
||
Home office depreciation and amortization
|
376
|
|
|
443
|
|
||
|
7,223
|
|
|
7,061
|
|
||
Operating income
|
15,869
|
|
|
17,127
|
|
||
Interest expense
|
(3,029
|
)
|
|
(3,735
|
)
|
||
Accretion of discount on convertible subordinated notes
|
(1,037
|
)
|
|
(1,160
|
)
|
||
Other, net
|
3
|
|
|
2
|
|
||
Income before income taxes
|
11,806
|
|
|
12,234
|
|
||
Provision for income taxes
|
(4,722
|
)
|
|
(3,365
|
)
|
||
Tax benefit related to certain discrete items
|
—
|
|
|
487
|
|
||
Total provision for income taxes
|
(4,722
|
)
|
|
(2,878
|
)
|
||
Net income
|
$
|
7,084
|
|
|
$
|
9,356
|
|
|
|
|
|
||||
Basic earnings per common share:
|
$
|
0.42
|
|
|
$
|
0.58
|
|
Diluted earnings per common share:
|
$
|
0.39
|
|
|
$
|
0.52
|
|
|
|
|
|
||||
Dividends declared per common share
|
$
|
0.050
|
|
|
$
|
0.075
|
|
|
|
|
|
||||
Weighted average number of common and common equivalent shares outstanding:
|
|
|
|
||||
Basic
|
16,597
|
|
|
16,094
|
|
||
Diluted
|
18,082
|
|
|
17,700
|
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
7,084
|
|
|
$
|
9,356
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
3,847
|
|
|
4,216
|
|
||
Provision for losses on accounts receivable
|
389
|
|
|
459
|
|
||
Stock-based compensation expense
|
836
|
|
|
1,100
|
|
||
Deferred income tax expense
|
162
|
|
|
207
|
|
||
Amortization of deferred financing costs
|
203
|
|
|
208
|
|
||
Amortization of capitalized commissions on preneed contracts
|
—
|
|
|
149
|
|
||
Accretion of discount on convertible subordinated notes
|
1,037
|
|
|
1,160
|
|
||
Net loss on sale and disposal of other assets
|
155
|
|
|
19
|
|
||
|
|
|
|
||||
Changes in operating assets and liabilities that provided (required) cash:
|
|
|
|
||||
Accounts and preneed receivables
|
303
|
|
|
(533
|
)
|
||
Inventories and other current assets
|
1,976
|
|
|
429
|
|
||
Intangible and other non-current assets
|
80
|
|
|
(85
|
)
|
||
Preneed funeral and cemetery trust investments
|
(1,404
|
)
|
|
3,886
|
|
||
Accounts payable
|
(2,778
|
)
|
|
727
|
|
||
Accrued and other liabilities
|
(6,142
|
)
|
|
(3,009
|
)
|
||
Deferred preneed funeral and cemetery revenue
|
1,308
|
|
|
1,346
|
|
||
Deferred preneed funeral and cemetery receipts held in trust
|
1,103
|
|
|
(4,752
|
)
|
||
Net cash provided by operating activities
|
8,159
|
|
|
14,883
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(3,730
|
)
|
|
(2,065
|
)
|
||
Net cash used in investing activities
|
(3,730
|
)
|
|
(2,065
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Borrowings from the revolving credit facility
|
18,800
|
|
|
3,700
|
|
||
Payments against the revolving credit facility
|
(21,400
|
)
|
|
(11,500
|
)
|
||
Payments against the term loan
|
(2,813
|
)
|
|
(3,750
|
)
|
||
Payments on other long-term debt and obligations under capital leases
|
(368
|
)
|
|
(428
|
)
|
||
Payments on contingent consideration recorded at acquisition date
|
(101
|
)
|
|
(138
|
)
|
||
Proceeds from the exercise of stock options and employee stock purchase plan contributions
|
315
|
|
|
626
|
|
||
Taxes paid on restricted stock vestings and exercise of non-qualified options
|
(509
|
)
|
|
(294
|
)
|
||
Dividends paid on common stock
|
(833
|
)
|
|
(1,207
|
)
|
||
Net cash used in financing activities
|
(6,909
|
)
|
|
(12,991
|
)
|
||
|
|
|
|
|
|||
Net decrease in cash and cash equivalents
|
(2,480
|
)
|
|
(173
|
)
|
||
Cash and cash equivalents at beginning of period
|
3,286
|
|
|
952
|
|
||
Cash and cash equivalents at end of period
|
$
|
806
|
|
|
$
|
779
|
|
|
|
|
|
|
December 31, 2017
|
|
March 31, 2018
|
||||
Funeral receivables, net of allowance for bad debt of $213 and $184, respectively
|
$
|
9,061
|
|
|
$
|
8,099
|
|
Cemetery receivables, net of allowance for bad debt of $622 and $630, respectively
|
10,331
|
|
|
9,395
|
|
||
Other receivables
|
263
|
|
|
323
|
|
||
Accounts receivable, net
|
$
|
19,655
|
|
|
$
|
17,817
|
|
|
December 31, 2017
|
|
March 31, 2018
|
||||
Funeral receivables, net of allowance for bad debt of $882
|
$
|
7,934
|
|
|
$
|
—
|
|
Cemetery receivables, net of allowance for bad debt of $1,396 and $1,391, respectively
|
23,710
|
|
|
20,982
|
|
||
Preneed receivable, net
|
$
|
31,644
|
|
|
$
|
20,982
|
|
|
December 31, 2017
|
|
March 31, 2018
|
||||
Land
|
$
|
74,981
|
|
|
$
|
74,981
|
|
Buildings and improvements
|
211,934
|
|
|
212,186
|
|
||
Furniture, equipment and automobiles
|
76,155
|
|
|
77,319
|
|
||
Property, plant and equipment, at cost
|
363,070
|
|
|
364,486
|
|
||
Less: accumulated depreciation
|
(115,776
|
)
|
|
(118,864
|
)
|
||
Property, plant and equipment, net
|
$
|
247,294
|
|
|
$
|
245,622
|
|
|
As of March 31, 2018
|
||||||||||
|
As Reported
|
|
Balances Without Adoption of Topic 606
|
|
Effect of Change
|
||||||
Assets
|
|
|
|
|
|
||||||
Accounts receivable, net of allowance for bad debts
|
$
|
17,817
|
|
|
$
|
19,199
|
|
|
$
|
(1,382
|
)
|
Preneed receivables, net of allowance for bad debts
|
$
|
20,982
|
|
|
$
|
32,173
|
|
|
$
|
(11,191
|
)
|
Intangible and other non-current assets
|
$
|
2,798
|
|
|
$
|
—
|
|
|
$
|
2,798
|
|
Liabilities
|
|
|
|
|
|
||||||
Deferred preneed cemetery revenue, net
|
$
|
50,797
|
|
|
$
|
55,292
|
|
|
$
|
(4,495
|
)
|
Deferred preneed funeral revenue, net
|
$
|
27,251
|
|
|
$
|
35,329
|
|
|
$
|
(8,078
|
)
|
Deferred tax liability
|
$
|
31,366
|
|
|
$
|
31,361
|
|
|
$
|
5
|
|
Stockholders’ equity:
|
|
|
|
|
|
||||||
Retained earnings
|
$
|
70,038
|
|
|
$
|
67,245
|
|
|
$
|
2,793
|
|
|
Three months ended March 31, 2018
|
||||||||||
|
As
Reported
|
|
Balances Without Adoption of Topic 606
|
|
Effect of Change
|
||||||
Field costs and expenses:
|
|
|
|
|
|
||||||
Funeral
|
$
|
36,366
|
|
|
$
|
36,406
|
|
|
$
|
(40
|
)
|
Cemetery
|
$
|
9,060
|
|
|
$
|
9,041
|
|
|
$
|
19
|
|
Income before income taxes
|
$
|
12,234
|
|
|
$
|
12,213
|
|
|
$
|
(21
|
)
|
Net income
|
$
|
9,356
|
|
|
$
|
9,341
|
|
|
$
|
15
|
|
|
|
|
|
|
|
||||||
Basic earnings per common share:
|
$
|
0.58
|
|
|
$
|
0.58
|
|
|
$
|
—
|
|
Diluted earnings per common share:
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||
Dividends declared per common share
|
$
|
0.075
|
|
|
$
|
0.075
|
|
|
$
|
—
|
|
|
Three months ended March 31, 2018
|
||||||||||
|
As
Reported
|
|
Balances Without Adoption of Topic 606
|
|
Effect of Change
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Amortization of capitalized commissions on preneed contracts
|
$
|
149
|
|
|
$
|
—
|
|
|
$
|
149
|
|
Changes in operating assets and liabilities that provided (required) cash:
|
|
|
|
|
|
||||||
Intangible and other non-current assets
|
$
|
(169
|
)
|
|
$
|
—
|
|
|
$
|
(169
|
)
|
|
December 31, 2017
|
|
Effect of Adoption of
Topic 606 |
|
January 1, 2018
|
||||||
Assets
|
|
|
|
|
|
||||||
Accounts receivable, net of allowance for bad debts
(1)
|
$
|
19,655
|
|
|
$
|
(1,399
|
)
|
|
$
|
18,256
|
|
Preneed receivables, net of allowance for bad debts
(2)(3)
|
$
|
31,644
|
|
|
$
|
(11,129
|
)
|
|
$
|
20,515
|
|
Intangible and other non-current assets
(4)
|
$
|
—
|
|
|
$
|
2,778
|
|
|
$
|
2,778
|
|
|
|
|
$
|
(9,750
|
)
|
|
|
||||
Liabilities
|
|
|
|
|
|
||||||
Deferred preneed cemetery revenue
(1)(2)
|
$
|
54,690
|
|
|
$
|
(4,594
|
)
|
|
$
|
50,096
|
|
Deferred preneed funeral revenue
(3)
|
$
|
34,585
|
|
|
$
|
(7,934
|
)
|
|
$
|
26,651
|
|
Stockholders’ equity:
|
|
|
|
|
|
||||||
Retained earnings
(4)
|
$
|
57,904
|
|
|
$
|
2,778
|
|
|
$
|
60,682
|
|
|
|
|
$
|
(9,750
|
)
|
|
|
|
|
|
|
|
(1)
|
Under Topic 606, receivables represent an entity’s unconditional right to consideration, billed or unbilled. Our balance of accounts receivable, net of allowance for bad debts, of $19.7 million at December 31, 2017, included the current portion of receivables for preneed cemetery merchandise and service contracts totaling $1.4 million. As these amounts represent undelivered performance obligations, they have been reclassified to reduce deferred preneed cemetery revenue on January 1, 2018.
|
|||
(2)
|
Under Topic 606, receivables represent an entity’s unconditional right to consideration, billed or unbilled. Our balance of preneed receivables, net of allowance for bad debts, of $31.6 million at December 31, 2017, included the non-current portion of receivables for preneed cemetery merchandise and service contracts totaling $4.6 million. As these amounts represent undelivered performance obligations, they have been reclassified to reduce deferred preneed cemetery revenue on January 1, 2018.
|
|||
(3)
|
Under Topic 606, receivables represent an entity’s unconditional right to consideration, billed or unbilled. Our balance of preneed receivables, net of allowance for bad debts, $31.6 million at December 31, 2017, included the non-current portion of receivables for preneed funeral trust contracts totaling $7.9 million. As these amounts represent undelivered performance obligations, they have been reclassified to reduce deferred preneed funeral revenue on January 1, 2018.
|
|||
(4)
|
Under Topic 606, certain costs incurred to obtain or fulfill a contract with a customer are capitalized. Beginning January 1, 2018, we capitalize selling costs related to undelivered preneed cemetery merchandise and services and preneed funeral trust contracts. Previously, these costs were expensed in the period incurred. We recorded a cumulative adjustment of approximately $2.8 million to our opening
Retained earnings
and
Intangible and other non-current assets
on our Consolidated Balance Sheets on January 1, 2018 to capitalize these costs.
|
Three months ended March 31, 2018
|
|
|
|
|
|
|
||||||
|
|
Funeral
|
|
Cemetery
|
|
Total
|
||||||
Services
|
|
$
|
36,300
|
|
|
$
|
3,121
|
|
|
$
|
39,421
|
|
Merchandise
|
|
19,982
|
|
|
1,957
|
|
|
21,939
|
|
|||
Cemetery interment rights
|
|
—
|
|
|
7,509
|
|
|
7,509
|
|
|||
Revenue from contracts with customers
|
|
$
|
56,282
|
|
|
$
|
12,587
|
|
|
$
|
68,869
|
|
|
|
|
|
|
|
|
||||||
Preneed funeral commission income
|
|
$
|
260
|
|
|
$
|
—
|
|
|
$
|
260
|
|
Preneed trust earnings
|
|
1,914
|
|
|
1,549
|
|
|
3,463
|
|
|||
Preneed trust management fees
|
|
138
|
|
|
210
|
|
|
348
|
|
|||
Preneed cemetery finance charges
|
|
—
|
|
|
447
|
|
|
447
|
|
|||
Financial revenues
|
|
$
|
2,312
|
|
|
$
|
2,206
|
|
|
$
|
4,518
|
|
Total Revenues
|
|
$
|
58,594
|
|
|
$
|
14,793
|
|
|
$
|
73,387
|
|
Three months ended March 31, 2017
|
|
|
|
|
|
|
||||||
|
|
Funeral
|
|
Cemetery
|
|
Total
|
||||||
Services
|
|
$
|
32,799
|
|
|
$
|
3,000
|
|
|
$
|
35,799
|
|
Merchandise
|
|
19,163
|
|
|
1,843
|
|
|
21,006
|
|
|||
Cemetery interment rights
|
|
—
|
|
|
6,905
|
|
|
6,905
|
|
|||
Revenue from contracts with customers
|
|
$
|
51,962
|
|
|
$
|
11,748
|
|
|
$
|
63,710
|
|
|
|
|
|
|
|
|
||||||
Preneed funeral commission income
|
|
$
|
303
|
|
|
$
|
—
|
|
|
$
|
303
|
|
Preneed trust earnings
|
|
1,809
|
|
|
1,514
|
|
|
3,323
|
|
|||
Preneed trust management fees
|
|
137
|
|
|
202
|
|
|
339
|
|
|||
Preneed cemetery finance charges
|
|
—
|
|
|
482
|
|
|
482
|
|
|||
Financial revenues
|
|
$
|
2,249
|
|
|
$
|
2,198
|
|
|
$
|
4,447
|
|
Total Revenues
|
|
$
|
54,211
|
|
|
$
|
13,946
|
|
|
$
|
68,157
|
|
|
January 1, 2018
(1)
|
|
March 31, 2018
|
||||
Contract liabilities:
|
|
|
|
||||
Deferred preneed cemetery revenue
|
$
|
54,690
|
|
|
$
|
55,292
|
|
Less: Balances due on undelivered cemetery preneed contracts
(2)
|
(4,594
|
)
|
|
(4,495
|
)
|
||
Deferred preneed cemetery revenue, net
|
$
|
50,096
|
|
|
$
|
50,797
|
|
|
|
|
|
||||
Deferred preneed funeral revenue
|
$
|
34,585
|
|
|
$
|
35,329
|
|
Less: Balances due on undelivered funeral preneed contracts
(3)
|
(7,934
|
)
|
|
(8,078
|
)
|
||
Deferred preneed funeral revenue, net
|
$
|
26,651
|
|
|
$
|
27,251
|
|
|
|
|
|
|
(1)
|
January 1, 2018 balances have been adjusted to reflect the cumulative effect of changes for the adoption of ASC 606.
|
|||
(2)
|
In accordance with Topic 606, $1.4 million of cemetery accounts receivables have been reclassified to reduce deferred preneed cemetery revenue at both January 1, 2018 and March 31, 2018 and $3.2 million and $3.1 million of preneed cemetery receivables have been reclassified to reduce deferred preneed cemetery revenue at January 1, 2018 and March 31, 2018, respectively.
|
|||
(3)
|
In accordance with Topic 606, $7.9 million and $8.1 million of preneed funeral receivables have been reclassified to reduce deferred preneed funeral revenue at January 1, 2018 and March 31, 2018, respectively.
|
|
December 31, 2017
|
|
March 31, 2018
|
||||
Preneed cemetery trust investments, at market value
|
$
|
75,992
|
|
|
$
|
72,450
|
|
Less: allowance for contract cancellation
|
(2,139
|
)
|
|
(2,154
|
)
|
||
Preneed cemetery trust investments, net
|
$
|
73,853
|
|
|
$
|
70,296
|
|
|
Fair Value Hierarchy Level
|
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Market
Value
|
||||||||
Cash and money market accounts
|
1
|
|
$
|
7,366
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,366
|
|
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign debt
|
2
|
|
4,848
|
|
|
193
|
|
|
(244
|
)
|
|
4,797
|
|
||||
Corporate debt
|
2
|
|
15,665
|
|
|
733
|
|
|
(665
|
)
|
|
15,733
|
|
||||
Preferred stock
|
2
|
|
16,471
|
|
|
118
|
|
|
(751
|
)
|
|
15,838
|
|
||||
Mortgage-backed securities
|
2
|
|
1,015
|
|
|
281
|
|
|
(26
|
)
|
|
1,270
|
|
||||
Common stock
|
1
|
|
25,216
|
|
|
4,074
|
|
|
(3,783
|
)
|
|
25,507
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed Income
|
2
|
|
1,202
|
|
|
27
|
|
|
(43
|
)
|
|
1,186
|
|
||||
Trust securities
|
|
|
$
|
71,783
|
|
|
$
|
5,426
|
|
|
$
|
(5,512
|
)
|
|
$
|
71,697
|
|
Accrued investment income
|
|
|
$
|
753
|
|
|
|
|
|
|
$
|
753
|
|
||||
Preneed cemetery trust investments
|
|
|
|
|
|
|
|
|
$
|
72,450
|
|
||||||
Market value as a percentage of cost
|
|
|
|
|
|
|
|
|
99.9
|
%
|
Due in one year or less
|
$
|
—
|
|
Due in one to five years
|
2,177
|
|
|
Due in five to ten years
|
2,561
|
|
|
Thereafter
|
32,900
|
|
|
Total
|
$
|
37,638
|
|
|
Fair Value Hierarchy Level
|
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Market
Value
|
||||||||
Cash and money market accounts
|
1
|
|
$
|
3,132
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,132
|
|
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign debt
|
2
|
|
4,834
|
|
|
292
|
|
|
(193
|
)
|
|
4,933
|
|
||||
Corporate debt
|
2
|
|
18,238
|
|
|
1,184
|
|
|
(273
|
)
|
|
19,149
|
|
||||
Preferred stock
|
2
|
|
16,421
|
|
|
510
|
|
|
(588
|
)
|
|
16,343
|
|
||||
Mortgage-backed securities
|
2
|
|
1,018
|
|
|
249
|
|
|
(24
|
)
|
|
1,243
|
|
||||
Common stock
|
1
|
|
26,465
|
|
|
5,250
|
|
|
(2,460
|
)
|
|
29,255
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed income
|
2
|
|
1,198
|
|
|
50
|
|
|
(11
|
)
|
|
1,237
|
|
||||
Trust securities
|
|
|
$
|
71,306
|
|
|
$
|
7,535
|
|
|
$
|
(3,549
|
)
|
|
$
|
75,292
|
|
Accrued investment income
|
|
|
$
|
700
|
|
|
|
|
|
|
$
|
700
|
|
||||
Preneed cemetery trust investments
|
|
|
|
|
|
|
|
|
$
|
75,992
|
|
||||||
Market value as a percentage of cost
|
|
|
|
|
|
|
|
|
105.6
|
%
|
|
March 31, 2018
|
||||||||||||||||||||||
|
In Loss Position Less than 12 months
|
|
In Loss Position Greater than 12 months
|
|
Total
|
||||||||||||||||||
|
Fair Market Value
|
|
Unrealized Losses
|
|
Fair Market Value
|
|
Unrealized Losses
|
|
Fair Market Value
|
|
Unrealized Losses
|
||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign debt
|
$
|
519
|
|
|
$
|
(20
|
)
|
|
$
|
1,605
|
|
|
$
|
(224
|
)
|
|
$
|
2,124
|
|
|
$
|
(244
|
)
|
Corporate debt
|
6,987
|
|
|
(464
|
)
|
|
768
|
|
|
(201
|
)
|
|
7,755
|
|
|
(665
|
)
|
||||||
Preferred stock
|
4,731
|
|
|
(43
|
)
|
|
8,295
|
|
|
(708
|
)
|
|
13,026
|
|
|
(751
|
)
|
||||||
Mortgage-backed securities
|
75
|
|
|
—
|
|
|
73
|
|
|
(26
|
)
|
|
148
|
|
|
(26
|
)
|
||||||
Common stock
|
12,001
|
|
|
(2,461
|
)
|
|
1,666
|
|
|
(1,322
|
)
|
|
13,667
|
|
|
(3,783
|
)
|
||||||
Mutual Funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed Income
|
842
|
|
|
(43
|
)
|
|
—
|
|
|
—
|
|
|
842
|
|
|
(43
|
)
|
||||||
Total temporary impaired securities
|
$
|
25,155
|
|
|
$
|
(3,031
|
)
|
|
$
|
12,407
|
|
|
$
|
(2,481
|
)
|
|
$
|
37,562
|
|
|
$
|
(5,512
|
)
|
|
December 31, 2017
|
||||||||||||||||||||||
|
In Loss Position Less than 12 months
|
|
In Loss Position Greater than 12 months
|
|
Total
|
||||||||||||||||||
|
Fair Market Value
|
|
Unrealized Losses
|
|
Fair Market Value
|
|
Unrealized Losses
|
|
Fair Market Value
|
|
Unrealized Losses
|
||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign debt
|
$
|
151
|
|
|
$
|
(6
|
)
|
|
$
|
1,637
|
|
|
$
|
(187
|
)
|
|
$
|
1,788
|
|
|
$
|
(193
|
)
|
Corporate debt
|
3,735
|
|
|
(72
|
)
|
|
846
|
|
|
(201
|
)
|
|
4,581
|
|
|
(273
|
)
|
||||||
Preferred stock
|
48
|
|
|
—
|
|
|
8,109
|
|
|
(588
|
)
|
|
8,157
|
|
|
(588
|
)
|
||||||
Mortgage-backed securities
|
127
|
|
|
(15
|
)
|
|
27
|
|
|
(9
|
)
|
|
154
|
|
|
(24
|
)
|
||||||
Common stock
|
8,249
|
|
|
(1,512
|
)
|
|
1,742
|
|
|
(948
|
)
|
|
9,991
|
|
|
(2,460
|
)
|
||||||
Mutual Funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed Income
|
496
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
496
|
|
|
(11
|
)
|
||||||
Total temporary impaired securities
|
$
|
12,806
|
|
|
$
|
(1,616
|
)
|
|
$
|
12,361
|
|
|
$
|
(1,933
|
)
|
|
$
|
25,167
|
|
|
$
|
(3,549
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2018
|
||||
Investment income
|
$
|
589
|
|
|
$
|
425
|
|
Realized gains
|
820
|
|
|
853
|
|
||
Realized losses
|
(383
|
)
|
|
(607
|
)
|
||
Expenses and taxes
|
(545
|
)
|
|
(51
|
)
|
||
Increase in deferred preneed cemetery receipts held in trust
|
(481
|
)
|
|
(620
|
)
|
||
|
$
|
—
|
|
|
$
|
—
|
|
|
December 31, 2017
|
|
March 31, 2018
|
||||
Preneed funeral trust investments, at market value
|
$
|
93,341
|
|
|
$
|
94,603
|
|
Less: allowance for contract cancellation
|
(2,659
|
)
|
|
(2,821
|
)
|
||
Preneed funeral trust investments, net
|
$
|
90,682
|
|
|
$
|
91,782
|
|
|
Fair Value Hierarchy Level
|
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Market
Value
|
||||||||
Cash and money market accounts
|
1
|
|
$
|
24,381
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24,381
|
|
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
||||||||
U.S treasury debt
|
1
|
|
1,490
|
|
|
7
|
|
|
(25
|
)
|
|
1,472
|
|
||||
Foreign debt
|
2
|
|
4,833
|
|
|
195
|
|
|
(238
|
)
|
|
4,790
|
|
||||
Corporate debt
|
2
|
|
16,034
|
|
|
718
|
|
|
(676
|
)
|
|
16,076
|
|
||||
Preferred stock
|
2
|
|
16,211
|
|
|
110
|
|
|
(741
|
)
|
|
15,580
|
|
||||
Mortgage-backed securities
|
2
|
|
1,163
|
|
|
293
|
|
|
(29
|
)
|
|
1,427
|
|
||||
Common stock
|
1
|
|
24,674
|
|
|
4,033
|
|
|
(3,751
|
)
|
|
24,956
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed income
|
2
|
|
1,944
|
|
|
28
|
|
|
(106
|
)
|
|
1,866
|
|
||||
Other investments
|
2
|
|
3,301
|
|
|
—
|
|
|
—
|
|
|
3,301
|
|
||||
Trust securities
|
|
|
$
|
94,031
|
|
|
$
|
5,384
|
|
|
$
|
(5,566
|
)
|
|
$
|
93,849
|
|
Accrued investment income
|
|
|
$
|
754
|
|
|
|
|
|
|
$
|
754
|
|
||||
Preneed funeral trust investments
|
|
|
|
|
|
|
|
|
$
|
94,603
|
|
||||||
Market value as a percentage of cost
|
|
|
|
|
|
|
|
|
99.8
|
%
|
Due in one year or less
|
$
|
—
|
|
Due in one to five years
|
3,702
|
|
|
Due in five to ten years
|
2,746
|
|
|
Thereafter
|
32,897
|
|
|
Total
|
$
|
39,345
|
|
|
Fair Value Hierarchy Level
|
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Market
Value
|
||||||||
Cash and money market accounts
|
1
|
|
$
|
14,349
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,349
|
|
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury debt
|
1
|
|
1,490
|
|
|
10
|
|
|
(15
|
)
|
|
1,485
|
|
||||
Foreign debt
|
2
|
|
4,870
|
|
|
298
|
|
|
(189
|
)
|
|
4,979
|
|
||||
Corporate debt
|
2
|
|
18,963
|
|
|
1,197
|
|
|
(278
|
)
|
|
19,882
|
|
||||
Preferred stock
|
2
|
|
16,335
|
|
|
501
|
|
|
(585
|
)
|
|
16,251
|
|
||||
Mortgage-backed securities
|
2
|
|
1,187
|
|
|
263
|
|
|
(27
|
)
|
|
1,423
|
|
||||
Common stock
|
1
|
|
26,129
|
|
|
5,253
|
|
|
(2,468
|
)
|
|
28,914
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed income
|
2
|
|
1,974
|
|
|
52
|
|
|
(48
|
)
|
|
1,978
|
|
||||
Other investments
|
2
|
|
3,341
|
|
|
—
|
|
|
—
|
|
|
3,341
|
|
||||
Trust securities
|
|
|
$
|
88,638
|
|
|
$
|
7,574
|
|
|
$
|
(3,610
|
)
|
|
$
|
92,602
|
|
Accrued investment income
|
|
|
$
|
739
|
|
|
|
|
|
|
$
|
739
|
|
||||
Preneed funeral trust investments
|
|
|
|
|
|
|
|
|
$
|
93,341
|
|
||||||
Market value as a percentage of cost
|
|
|
|
|
|
|
|
|
104.5
|
%
|
|
March 31, 2018
|
||||||||||||||||||||||
|
In Loss Position Less than 12 months
|
|
In Loss Position Greater than 12 months
|
|
Total
|
||||||||||||||||||
|
Fair Market Value
|
|
Unrealized Losses
|
|
Fair Market Value
|
|
Unrealized Losses
|
|
Fair Market Value
|
|
Unrealized Losses
|
||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. treasury debt
|
$
|
1,313
|
|
|
$
|
(25
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,313
|
|
|
$
|
(25
|
)
|
Foreign debt
|
542
|
|
|
(21
|
)
|
|
1,560
|
|
|
(217
|
)
|
|
2,102
|
|
|
(238
|
)
|
||||||
Corporate debt
|
6,988
|
|
|
(475
|
)
|
|
752
|
|
|
(201
|
)
|
|
7,740
|
|
|
(676
|
)
|
||||||
Preferred stock
|
4,645
|
|
|
(42
|
)
|
|
8,294
|
|
|
(699
|
)
|
|
12,939
|
|
|
(741
|
)
|
||||||
Mortgage-backed securities
|
167
|
|
|
(1
|
)
|
|
84
|
|
|
(28
|
)
|
|
251
|
|
|
(29
|
)
|
||||||
Common stock
|
11,560
|
|
|
(2,409
|
)
|
|
1,682
|
|
|
(1,342
|
)
|
|
13,242
|
|
|
(3,751
|
)
|
||||||
Mutual Funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed income
|
928
|
|
|
(47
|
)
|
|
571
|
|
|
(59
|
)
|
|
1,499
|
|
|
(106
|
)
|
||||||
Total temporary impaired securities
|
$
|
26,143
|
|
|
$
|
(3,020
|
)
|
|
$
|
12,943
|
|
|
$
|
(2,546
|
)
|
|
$
|
39,086
|
|
|
$
|
(5,566
|
)
|
|
December 31, 2017
|
||||||||||||||||||||||
|
In Loss Position Less than 12 months
|
|
In Loss Position Greater than 12 months
|
|
Total
|
||||||||||||||||||
|
Fair Market Value
|
|
Unrealized Losses
|
|
Fair Market Value
|
|
Unrealized Losses
|
|
Fair Market Value
|
|
Unrealized Losses
|
||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. treasury debt
|
$
|
1,325
|
|
|
$
|
(15
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,325
|
|
|
$
|
(15
|
)
|
Foreign debt
|
159
|
|
|
(6
|
)
|
|
1,608
|
|
|
(183
|
)
|
|
1,767
|
|
|
(189
|
)
|
||||||
Corporate debt
|
3,770
|
|
|
(74
|
)
|
|
842
|
|
|
(203
|
)
|
|
4,612
|
|
|
(277
|
)
|
||||||
Preferred stock
|
50
|
|
|
—
|
|
|
8,184
|
|
|
(585
|
)
|
|
8,234
|
|
|
(585
|
)
|
||||||
Mortgage-backed securities
|
221
|
|
|
(17
|
)
|
|
36
|
|
|
(10
|
)
|
|
257
|
|
|
(27
|
)
|
||||||
Common stock
|
8,001
|
|
|
(1,496
|
)
|
|
1,728
|
|
|
(972
|
)
|
|
9,729
|
|
|
(2,468
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed income
|
549
|
|
|
(12
|
)
|
|
615
|
|
|
(37
|
)
|
|
1,164
|
|
|
(49
|
)
|
||||||
Total temporary impaired securities
|
$
|
14,075
|
|
|
$
|
(1,620
|
)
|
|
$
|
13,013
|
|
|
$
|
(1,990
|
)
|
|
$
|
27,088
|
|
|
$
|
(3,610
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2018
|
||||
Investment income
|
$
|
591
|
|
|
$
|
412
|
|
Realized gains
|
824
|
|
|
2,896
|
|
||
Realized losses
|
(379
|
)
|
|
(609
|
)
|
||
Expenses and taxes
|
(339
|
)
|
|
(144
|
)
|
||
Increase in deferred preneed funeral receipts held in trust
|
(697
|
)
|
|
(2,555
|
)
|
||
|
$
|
—
|
|
|
$
|
—
|
|
|
December 31, 2017
|
|
March 31, 2018
|
|
||||
Accounts receivable, including unearned finance charges and allowance for contract cancellations of $2,779 and $2,745, respectively
|
$
|
11,843
|
|
|
$
|
12,285
|
|
(1)
|
Preneed receivables
, including unearned finance charges and allowance for contract cancellations of $4,922 and $4,903, respectively
|
28,631
|
|
|
28,979
|
|
(2)
|
||
Preneed cemetery financed receivables
|
$
|
40,474
|
|
|
$
|
41,264
|
|
|
|
|
|
|
|
(1)
|
In accordance with Topic 606, $1.4 million of cemetery accounts receivable has been reclassified to reduce deferred preneed cemetery revenue at March 31, 2018.
|
|||
(2)
|
In accordance with Topic 606, $3.1 million of preneed cemetery receivables has been reclassified to reduce deferred preneed cemetery revenue at March 31, 2018.
|
|
March 31, 2018
|
||
Beginning balance
|
$
|
2,019
|
|
Write-offs and cancellations
|
(307
|
)
|
|
Provision
|
309
|
|
|
Ending balance
|
$
|
2,021
|
|
|
31-60
Past Due
|
|
61-90
Past Due
|
|
91-120
Past Due
|
|
>120
Past Due
|
|
Total Past
Due
|
|
Current
|
|
Total Financing
Receivables
|
||||||||||||||
Recognized revenue
|
$
|
892
|
|
|
$
|
475
|
|
|
$
|
154
|
|
|
$
|
1,286
|
|
|
$
|
2,807
|
|
|
$
|
27,661
|
|
|
$
|
30,468
|
|
Deferred revenue
|
288
|
|
|
153
|
|
|
50
|
|
|
368
|
|
|
860
|
|
|
9,936
|
|
|
10,796
|
|
|||||||
Total contracts
|
$
|
1,180
|
|
|
$
|
628
|
|
|
$
|
204
|
|
|
$
|
1,654
|
|
|
$
|
3,667
|
|
|
$
|
37,597
|
|
|
$
|
41,264
|
|
|
December 31, 2017
|
|
March 31, 2018
|
||||
Preneed trust funds, at cost
|
$
|
15,759
|
|
|
$
|
16,291
|
|
Less: allowance for contract cancellation
|
(472
|
)
|
|
(489
|
)
|
||
Receivables from preneed trusts, net
|
$
|
15,287
|
|
|
$
|
15,802
|
|
|
Historical
Cost Basis
|
|
Fair Value
|
||||
As of March 31, 2018
|
|
|
|
||||
Cash and cash equivalents
|
$
|
3,953
|
|
|
$
|
3,953
|
|
Fixed income investments
|
9,647
|
|
|
9,647
|
|
||
Mutual funds and common stocks
|
2,685
|
|
|
2,654
|
|
||
Annuities
|
6
|
|
|
6
|
|
||
Total
|
$
|
16,291
|
|
|
$
|
16,260
|
|
|
Historical
Cost Basis
|
|
Fair Value
|
||||
As of December 31, 2017
|
|
|
|
||||
Cash and cash equivalents
|
$
|
3,903
|
|
|
$
|
3,903
|
|
Fixed income investments
|
9,306
|
|
|
9,306
|
|
||
Mutual funds and common stocks
|
2,544
|
|
|
2,567
|
|
||
Annuities
|
6
|
|
|
6
|
|
||
Total
|
$
|
15,759
|
|
|
$
|
15,782
|
|
|
December 31, 2017
|
|
March 31, 2018
|
||||
Trust assets, at market value
|
$
|
50,229
|
|
|
$
|
48,285
|
|
Obligations due from trust
|
(373
|
)
|
|
(724
|
)
|
||
Care trusts’ corpus
|
$
|
49,856
|
|
|
$
|
47,561
|
|
|
Fair Value Hierarchy Level
|
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Market
Value
|
||||||||
Cash and money market accounts
|
1
|
|
$
|
5,067
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,067
|
|
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign debt
|
2
|
|
3,602
|
|
|
144
|
|
|
(170
|
)
|
|
3,576
|
|
||||
Corporate debt
|
2
|
|
10,743
|
|
|
486
|
|
|
(429
|
)
|
|
10,800
|
|
||||
Preferred stock
|
2
|
|
11,618
|
|
|
91
|
|
|
(523
|
)
|
|
11,186
|
|
||||
Mortgage-backed securities
|
2
|
|
622
|
|
|
172
|
|
|
(16
|
)
|
|
778
|
|
||||
Common stock
|
1
|
|
15,449
|
|
|
2,414
|
|
|
(2,430
|
)
|
|
15,433
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed Income
|
2
|
|
919
|
|
|
25
|
|
|
(35
|
)
|
|
909
|
|
||||
Trust securities
|
|
|
$
|
48,020
|
|
|
$
|
3,332
|
|
|
$
|
(3,603
|
)
|
|
$
|
47,749
|
|
Accrued investment income
|
|
|
$
|
536
|
|
|
|
|
|
|
$
|
536
|
|
||||
Cemetery perpetual care investments
|
|
|
|
|
|
|
|
|
$
|
48,285
|
|
||||||
Market value as a percentage of cost
|
|
|
|
|
|
|
|
|
99.4
|
%
|
Due in one year or less
|
$
|
—
|
|
Due in one to five years
|
1,443
|
|
|
Due in five to ten years
|
1,765
|
|
|
Thereafter
|
23,132
|
|
|
|
$
|
26,340
|
|
|
Fair Value Hierarchy Level
|
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Market
Value
|
||||||||
Cash and money market accounts
|
1
|
|
$
|
1,906
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,906
|
|
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign debt
|
2
|
|
3,580
|
|
|
227
|
|
|
(134
|
)
|
|
3,673
|
|
||||
Corporate debt
|
2
|
|
12,557
|
|
|
805
|
|
|
(187
|
)
|
|
13,175
|
|
||||
Preferred stock
|
2
|
|
11,545
|
|
|
364
|
|
|
(411
|
)
|
|
11,498
|
|
||||
Mortgage-backed securities
|
2
|
|
621
|
|
|
152
|
|
|
(15
|
)
|
|
758
|
|
||||
Common stock
|
1
|
|
16,326
|
|
|
3,116
|
|
|
(1,595
|
)
|
|
17,847
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed income
|
2
|
|
913
|
|
|
42
|
|
|
(10
|
)
|
|
945
|
|
||||
Trust securities
|
|
|
$
|
47,448
|
|
|
$
|
4,706
|
|
|
$
|
(2,352
|
)
|
|
$
|
49,802
|
|
Accrued investment income
|
|
|
$
|
427
|
|
|
|
|
|
|
$
|
427
|
|
||||
Cemetery perpetual care investments
|
|
|
|
|
|
|
|
|
$
|
50,229
|
|
||||||
Market value as a percentage of cost
|
|
|
|
|
|
|
|
|
105.0
|
%
|
|
March 31, 2018
|
||||||||||||||||||||||
|
In Loss Position Less than 12 months
|
|
In Loss Position Greater than 12 months
|
|
Total
|
||||||||||||||||||
|
Fair Market Value
|
|
Unrealized Losses
|
|
Fair Market Value
|
|
Unrealized Losses
|
|
Fair Market Value
|
|
Unrealized Losses
|
||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign debt
|
$
|
318
|
|
|
$
|
(11
|
)
|
|
$
|
1,110
|
|
|
$
|
(157
|
)
|
|
$
|
1,428
|
|
|
$
|
(168
|
)
|
Corporate debt
|
4,637
|
|
|
(289
|
)
|
|
576
|
|
|
(141
|
)
|
|
5,213
|
|
|
(430
|
)
|
||||||
Preferred stock
|
3,423
|
|
|
(32
|
)
|
|
5,622
|
|
|
(492
|
)
|
|
9,045
|
|
|
(524
|
)
|
||||||
Mortgage-backed securities
|
45
|
|
|
—
|
|
|
45
|
|
|
(16
|
)
|
|
90
|
|
|
(16
|
)
|
||||||
Common stock
|
7,291
|
|
|
(1,534
|
)
|
|
1,079
|
|
|
(894
|
)
|
|
8,370
|
|
|
(2,428
|
)
|
||||||
Mutual Funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed Income
|
641
|
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|
641
|
|
|
(35
|
)
|
||||||
Total temporary impaired securities
|
$
|
16,355
|
|
|
$
|
(1,901
|
)
|
|
$
|
8,432
|
|
|
$
|
(1,700
|
)
|
|
$
|
24,787
|
|
|
$
|
(3,601
|
)
|
|
December 31, 2017
|
||||||||||||||||||||||
|
In Loss Position Less than 12 months
|
|
In Loss Position Greater than 12 months
|
|
Total
|
||||||||||||||||||
|
Fair Market Value
|
|
Unrealized Losses
|
|
Fair Market Value
|
|
Unrealized Losses
|
|
Fair Market Value
|
|
Unrealized Losses
|
||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign debt
|
$
|
92
|
|
|
$
|
(3
|
)
|
|
$
|
1,128
|
|
|
$
|
(131
|
)
|
|
$
|
1,220
|
|
|
$
|
(134
|
)
|
Corporate debt
|
2,621
|
|
|
(59
|
)
|
|
555
|
|
|
(128
|
)
|
|
3,176
|
|
|
(187
|
)
|
||||||
Preferred stock
|
29
|
|
|
—
|
|
|
5,492
|
|
|
(411
|
)
|
|
5,521
|
|
|
(411
|
)
|
||||||
Mortgage-backed securities
|
76
|
|
|
(10
|
)
|
|
16
|
|
|
(5
|
)
|
|
92
|
|
|
(15
|
)
|
||||||
Common stock
|
5,119
|
|
|
(991
|
)
|
|
1,108
|
|
|
(604
|
)
|
|
6,227
|
|
|
(1,595
|
)
|
||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed income
|
$
|
433
|
|
|
$
|
(10
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
433
|
|
|
$
|
(10
|
)
|
Total temporary impaired securities
|
$
|
8,370
|
|
|
$
|
(1,073
|
)
|
|
$
|
8,299
|
|
|
$
|
(1,279
|
)
|
|
$
|
16,669
|
|
|
$
|
(2,352
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2018
|
||||
Realized gains
|
$
|
281
|
|
|
$
|
282
|
|
Realized losses
|
(149
|
)
|
|
(214
|
)
|
||
Increase in care trusts’ corpus
|
(132
|
)
|
|
(68
|
)
|
||
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
December 31, 2017
|
|
March 31, 2018
|
||||
Prepaid agreements not-to-compete, net of accumulated amortization of $6,051 and $6,190, respectively
|
$
|
3,730
|
|
|
$
|
3,655
|
|
Tradenames
|
14,372
|
|
|
14,372
|
|
||
Capitalized commissions on preneed contracts, net of accumulated amortization of $149
|
—
|
|
|
2,798
|
|
||
Other
|
15
|
|
|
5
|
|
||
Intangible and other non-current assets
|
$
|
18,117
|
|
|
$
|
20,830
|
|
|
December 31, 2017
|
|
March 31, 2018
|
||||
Revolving credit facility, secured, floating rate
|
$
|
92,000
|
|
|
$
|
84,200
|
|
Term loan, secured, floating rate
|
127,500
|
|
|
123,750
|
|
||
Acquisition debt
|
10,548
|
|
|
10,212
|
|
||
Debt issuance costs, net of accumulated amortization of $4,442 and $4,518, respectively
|
(967
|
)
|
|
(891
|
)
|
||
Less: current portion
|
(16,927
|
)
|
|
(16,996
|
)
|
||
Total long-term debt
|
$
|
212,154
|
|
|
$
|
200,275
|
|
|
December 31, 2017
|
|
March 31, 2018
|
||||
Long-term liabilities:
|
|
|
|
||||
Principal amount
|
$
|
143,750
|
|
|
$
|
143,750
|
|
Unamortized discount of liability component
|
(17,559
|
)
|
|
(16,398
|
)
|
||
Convertible Notes issuance costs, net of accumulated amortization of $1,877 and $2,008, respectively
|
(1,750
|
)
|
|
(1,619
|
)
|
||
Carrying value of the liability component
|
$
|
124,441
|
|
|
$
|
125,733
|
|
|
|
|
|
||||
Equity component carrying value
|
$
|
17,973
|
|
|
$
|
17,973
|
|
|
Shares
Reserved |
|
Shares
Available to Issue |
|
Options
Outstanding |
|
Performance Awards Outstanding
(2)
|
||||
Amended and Restated 2006 Plan
|
—
|
|
|
—
|
|
|
1,641
|
|
|
303
|
|
2017 Plan
|
1,768
|
|
(1)
|
1,230
|
|
|
223
|
|
|
229
|
|
Total
|
1,768
|
|
|
1,230
|
|
|
1,864
|
|
|
532
|
|
|
|
|
|
|
(1)
|
Amount includes approximately 213,000 shares granted from the Amended and Restated 2006 Plan that were returned to the Company due to cancellations, to pay taxes on restricted stock vestings and to pay option price and taxes on option exercises.
|
|||
(2)
|
Performance Awards are reserved at 200% of shares granted which is equal to the maximum payout in shares.
|
|
2018
|
|
Dividend yield
|
1.18
|
%
|
Expected volatility
|
27.08
|
%
|
Risk-free interest rate
|
2.65
|
%
|
Expected holding period (years)
|
5.0
|
|
Black-Scholes value
|
$6.38
|
|
Accumulated Other Comprehensive Income
|
||
Balance at December 31, 2017
|
$
|
—
|
|
Decrease in net unrealized gains associated with available-for-sale securities of the trusts
|
(539
|
)
|
|
Reclassification of net unrealized gain activity attributable to the
Deferred preneed funeral and cemetery receipts held in trust and Care trusts’ corpus
|
539
|
|
|
Balance at March 31, 2018
|
$
|
—
|
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2018
|
||||
Numerator for basic and diluted earnings per share:
|
|
|
|
||||
Net income
|
$
|
7,084
|
|
|
$
|
9,356
|
|
Less: Earnings allocated to unvested restricted stock
|
(27
|
)
|
|
(60
|
)
|
||
Income attributable to common stockholders
|
$
|
7,057
|
|
|
$
|
9,296
|
|
|
|
|
|
||||
Denominator:
|
|
|
|
||||
Denominator for basic earnings per common share - weighted average shares outstanding
|
16,597
|
|
|
16,094
|
|
||
Effect of dilutive securities:
|
|
|
|
||||
Stock options
|
395
|
|
|
376
|
|
||
Convertible subordinated notes
|
1,090
|
|
|
1,230
|
|
||
Denominator for diluted earnings per common share - weighted average shares outstanding
|
18,082
|
|
|
17,700
|
|
||
|
|
|
|
||||
Basic earnings per common share:
|
$
|
0.42
|
|
|
$
|
0.58
|
|
Diluted earnings per common share:
|
$
|
0.39
|
|
|
$
|
0.52
|
|
|
Funeral
|
|
Cemetery
|
|
Corporate
|
|
Consolidated
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Three Months Ended March 31, 2018
|
$
|
58,594
|
|
|
$
|
14,793
|
|
|
$
|
—
|
|
|
$
|
73,387
|
|
Three Months Ended March 31, 2017
|
$
|
54,211
|
|
|
$
|
13,946
|
|
|
$
|
—
|
|
|
$
|
68,157
|
|
|
|
|
|
|
|
|
|
||||||||
Gross Profit (loss):
|
|
|
|
|
|
|
|
||||||||
Three Months Ended March 31, 2018
|
$
|
19,664
|
|
|
$
|
4,524
|
|
|
$
|
(7,061
|
)
|
|
$
|
17,127
|
|
Three Months Ended March 31, 2017
|
$
|
18,969
|
|
|
$
|
4,123
|
|
|
$
|
(7,223
|
)
|
|
$
|
15,869
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes:
|
|
|
|
|
|
|
|
||||||||
Three Months Ended March 31, 2018
|
$
|
19,414
|
|
|
$
|
4,592
|
|
|
$
|
(11,772
|
)
|
|
$
|
12,234
|
|
Three Months Ended March 31, 2017
|
$
|
18,822
|
|
|
$
|
4,212
|
|
|
$
|
(11,228
|
)
|
|
$
|
11,806
|
|
|
|
|
|
|
|
|
|
||||||||
Total assets:
|
|
|
|
|
|
|
|
||||||||
March 31, 2018
|
$
|
658,637
|
|
|
$
|
242,723
|
|
|
$
|
3,830
|
|
|
$
|
905,190
|
|
December 31, 2017
|
$
|
665,483
|
|
|
$
|
251,243
|
|
|
$
|
4,807
|
|
|
$
|
921,533
|
|
|
December 31, 2017
|
|
March 31, 2018
|
||||
Other current assets:
|
|
|
|
||||
State income taxes receivable
|
$
|
889
|
|
|
$
|
447
|
|
Other current assets
|
97
|
|
|
125
|
|
||
Total other current assets
|
$
|
986
|
|
|
$
|
572
|
|
|
|
|
|
||||
Current portion of long-term debt and capital lease obligations:
|
|
|
|
||||
Term note
|
$
|
15,000
|
|
|
$
|
15,000
|
|
Acquisition debt
|
1,927
|
|
|
1,996
|
|
||
Capital leases
|
324
|
|
|
324
|
|
||
Total current portion of long-term debt and capital lease obligations
|
$
|
17,251
|
|
|
$
|
17,320
|
|
|
|
|
|
||||
Other current liabilities:
|
|
|
|
||||
Federal income taxes payable
|
$
|
1,120
|
|
|
$
|
3,542
|
|
Deferred rent
|
241
|
|
|
247
|
|
||
Total other current liabilities
|
$
|
1,361
|
|
|
$
|
3,789
|
|
|
|
|
|
||||
Accrued liabilities:
|
|
|
|
||||
Accrued salaries and wages
|
$
|
2,643
|
|
|
$
|
1,399
|
|
Accrued incentive compensation
|
6,412
|
|
|
2,332
|
|
||
Accrued vacation
|
2,417
|
|
|
2,672
|
|
||
Accrued insurance
|
1,832
|
|
|
1,966
|
|
||
Accrued interest
|
1,271
|
|
|
290
|
|
||
Accrued ad valorem and franchise taxes
|
1,003
|
|
|
1,080
|
|
||
Accrued commissions
|
461
|
|
|
554
|
|
||
Other accrued liabilities
|
1,520
|
|
|
2,104
|
|
||
Total accrued liabilities
|
$
|
17,559
|
|
|
$
|
12,397
|
|
|
|
|
|
||||
Other long-term liabilities:
|
|
|
|
||||
Deferred rent
|
$
|
966
|
|
|
$
|
901
|
|
Incentive compensation
|
1,287
|
|
|
954
|
|
||
Contingent consideration
|
1,125
|
|
|
964
|
|
||
Total other long-term liabilities
|
$
|
3,378
|
|
|
$
|
2,819
|
|
•
|
the ability to find and retain skilled personnel;
|
•
|
our ability to execute our growth strategy;
|
•
|
the execution of our Standards Operating, 4E leadership and Standard Acquisition Models;
|
•
|
the effects of competition;
|
•
|
changes in the number of deaths in our markets;
|
•
|
changes in consumer preferences;
|
•
|
our ability to generate preneed sales;
|
•
|
the investment performance of our funeral and cemetery trust funds;
|
•
|
fluctuations in interest rates;
|
•
|
our ability to obtain debt or equity financing on satisfactory terms to fund additional acquisitions, expansion projects, working capital requirements and the repayment or refinancing of indebtedness;
|
•
|
death benefits related to preneed funeral contracts funded through life insurance contracts;
|
•
|
the financial condition of third-party insurance companies that fund our preneed funeral contracts;
|
•
|
increased or unanticipated costs, such as insurance or taxes;
|
•
|
recent changes in federal income tax laws and regulations and the implementation and interpretation of these laws and regulations by the Internal Revenue Service;
|
•
|
effects of the application of other applicable laws and regulations, including changes in such regulations or the interpretation thereof;
|
•
|
consolidation of the funeral and cemetery industry; and
|
•
|
other factors and uncertainties inherent in the funeral and cemetery industry.
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
•
|
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 Company Is Driven by Decentralization and Partnership
|
•
|
Standards Operating Model;
|
•
|
4E Leadership Model; and
|
•
|
Strategic Acquisition Model.
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2018
|
||||
Net income
|
$
|
7,084
|
|
|
$
|
9,356
|
|
Special items,
(1)
|
|
|
|
||||
Accretion of discount on convertible subordinated notes
|
1,037
|
|
|
1,160
|
|
||
Adjusted net income
(2)
|
$
|
8,121
|
|
|
$
|
10,516
|
|
|
|
|
|
|
(1)
|
Special items are defined as charges or credits included in our GAAP financial statements that can vary from period to period and are not reflective of costs incurred in the ordinary course of our operations. Special items are typically taxed at the federal statutory rate, except for the Accretion of the discount on convertible subordinated notes, as this is a non-tax deductible item.
|
|||
(2)
|
Adjusted net income is defined as Net income plus adjustments for Special items and other expenses or gains that we believe do not directly reflect our core operations and may not be indicative of our normal business operations.
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2018
|
||||
Gross profit
|
$
|
23,092
|
|
|
$
|
24,188
|
|
|
|
|
|
||||
Field depreciation and amortization
|
3,471
|
|
|
3,773
|
|
||
Regional and unallocated funeral and cemetery costs
|
2,954
|
|
|
3,281
|
|
||
Operating profit
(1)
|
$
|
29,517
|
|
|
$
|
31,242
|
|
|
|
|
|
|
(1)
|
Operating profit is defined as Gross profit less Field depreciation and amortization and Regional and unallocated funeral and cemetery costs.
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2018
|
||||
Funeral Home segment
|
$
|
23,782
|
|
|
$
|
25,092
|
|
Cemetery segment
|
5,735
|
|
|
6,150
|
|
||
Operating profit
|
$
|
29,517
|
|
|
$
|
31,242
|
|
|
|
|
|
||||
Operating profit margin
(1)
|
43.3
|
%
|
|
42.6
|
%
|
|
|
|
|
|
(1)
|
Operating profit margin, a non-GAAP measure, is Operating profit as a percentage of Total revenues.
|
|
Three Months Ended March 31,
|
|
Change
|
|||||||||||
|
2017
|
|
2018
|
|
Amount
|
|
%
|
|||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
Same store operating revenue
|
$
|
43,761
|
|
|
$
|
45,509
|
|
|
$
|
1,748
|
|
|
4.0
|
%
|
Acquired operating revenue
|
8,138
|
|
|
10,773
|
|
|
2,635
|
|
|
32.4
|
%
|
|||
Divested operating revenue
|
63
|
|
|
—
|
|
|
(63
|
)
|
|
n/a
|
|
|||
Preneed funeral insurance commissions
|
303
|
|
|
260
|
|
|
(43
|
)
|
|
(14.2
|
)%
|
|||
Preneed funeral trust earnings
|
1,946
|
|
|
2,052
|
|
|
106
|
|
|
5.4
|
%
|
|||
Total
|
$
|
54,211
|
|
|
$
|
58,594
|
|
|
$
|
4,383
|
|
|
8.1
|
%
|
|
|
|
|
|
|
|
|
|||||||
Operating profit:
|
|
|
|
|
|
|
|
|||||||
Same store operating profit
|
$
|
18,234
|
|
|
$
|
18,757
|
|
|
$
|
523
|
|
|
2.9
|
%
|
Acquired operating profit
|
3,504
|
|
|
4,291
|
|
|
787
|
|
|
22.5
|
%
|
|||
Divested operating profit
|
1
|
|
|
(3
|
)
|
|
(4
|
)
|
|
n/a
|
|
|||
Preneed funeral insurance commissions
|
130
|
|
|
38
|
|
|
(92
|
)
|
|
(70.8
|
)%
|
|||
Preneed funeral trust earnings
|
1,913
|
|
|
2,009
|
|
|
96
|
|
|
5.0
|
%
|
|||
Total
|
$
|
23,782
|
|
|
$
|
25,092
|
|
|
$
|
1,310
|
|
|
5.5
|
%
|
|
Three Months Ended March 31,
|
|
Change
|
|||||||||||
|
2017
|
|
2018
|
|
Amount
|
|
%
|
|||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
Same store operating revenue
|
$
|
10,839
|
|
|
$
|
11,717
|
|
|
$
|
878
|
|
|
8.1
|
%
|
Acquired operating revenue
|
909
|
|
|
870
|
|
|
(39
|
)
|
|
(4.3
|
)%
|
|||
Cemetery trust earnings
|
1,716
|
|
|
1,759
|
|
|
43
|
|
|
2.5
|
%
|
|||
Preneed cemetery finance charges
|
482
|
|
|
447
|
|
|
(35
|
)
|
|
(7.3
|
)%
|
|||
Total
|
$
|
13,946
|
|
|
$
|
14,793
|
|
|
$
|
847
|
|
|
6.1
|
%
|
|
|
|
|
|
|
|
|
|||||||
Operating profit:
|
|
|
|
|
|
|
|
|||||||
Same store operating profit
|
$
|
3,295
|
|
|
$
|
3,760
|
|
|
$
|
465
|
|
|
14.1
|
%
|
Acquired operating profit
|
353
|
|
|
325
|
|
|
(28
|
)
|
|
(7.9
|
)%
|
|||
Cemetery trust earnings
|
1,605
|
|
|
1,618
|
|
|
13
|
|
|
0.8
|
%
|
|||
Preneed cemetery finance charges
|
482
|
|
|
447
|
|
|
(35
|
)
|
|
(7.3
|
)%
|
|||
Total
|
$
|
5,735
|
|
|
$
|
6,150
|
|
|
$
|
415
|
|
|
7.2
|
%
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2018
|
||||
Cash at January 1
st
|
$
|
3.3
|
|
|
$
|
1.0
|
|
Cash flow from operating activities
|
8.2
|
|
|
14.9
|
|
||
Growth capital expenditures
|
(1.9
|
)
|
|
(0.6
|
)
|
||
Maintenance capital expenditures
|
(1.8
|
)
|
|
(1.5
|
)
|
||
Net payments on our revolving credit facility, term loan and long-term debt obligations
|
(5.8
|
)
|
|
(12.0
|
)
|
||
Taxes paid on restricted stock vestings and exercise of non-qualified options
|
(0.5
|
)
|
|
(0.3
|
)
|
||
Dividends paid on common stock
|
(0.8
|
)
|
|
(1.2
|
)
|
||
Proceeds from the exercise of stock options and employee stock purchase plan contributions
|
0.3
|
|
|
0.6
|
|
||
Other financing costs
|
(0.2
|
)
|
|
(0.1
|
)
|
||
Cash at March 31
st
|
$
|
0.8
|
|
|
$
|
0.8
|
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2018
|
||||
Growth
|
|
|
|
||||
Cemetery development
|
$
|
0.9
|
|
|
$
|
0.5
|
|
Construction for new funeral facilities
|
0.8
|
|
|
—
|
|
||
Renovations at certain businesses
|
0.2
|
|
|
0.1
|
|
||
Total Growth
|
$
|
1.9
|
|
|
$
|
0.6
|
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2018
|
||||
Maintenance
|
|
|
|
||||
Facility repairs and improvements
|
$
|
0.6
|
|
|
$
|
0.3
|
|
General equipment and furniture
|
0.4
|
|
|
0.5
|
|
||
Vehicles
|
0.6
|
|
|
0.6
|
|
||
Paving roads and parking lots
|
0.1
|
|
|
—
|
|
||
Information technology infrastructure improvements
|
0.1
|
|
|
0.1
|
|
||
Total Maintenance
|
$
|
1.8
|
|
|
$
|
1.5
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4.
|
Controls and Procedures.
|
Item 1.
|
Legal Proceedings.
|
Item 1A.
|
Risk Factors.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
.
|
Period
|
|
Total Number of Shares Purchased
(1)
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Program
|
|
Dollar Value of Shares That May Yet Be Purchased Under the Program
(2)
|
||||||
|
|
|
|
|
|
|
|
|
||||||
January 1, 2018 - January 31, 2018
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
26,019,052
|
|
February 1, 2018 - February 28, 2018
|
|
5,350
|
|
|
$
|
27.18
|
|
|
—
|
|
|
$
|
26,019,052
|
|
March 1, 2018 - March 31, 2018
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
26,019,052
|
|
Total for quarter ended March 31, 2018
|
|
5,350
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
(1)
|
Represents shares surrendered by employees to pay taxes withheld upon the vesting of restricted stock awards.
|
|||
(2)
|
See Note 12 to the Consolidated Financial Statements included herein for additional information on our publicly announced share repurchase program.
|
Item 3.
|
Defaults Upon Senior Securities
.
|
Item 4.
|
Mine Safety Disclosures.
|
Item 5.
|
Other Information.
|
Item 6.
|
Exhibits.
|
|
|
CARRIAGE SERVICES, INC.
|
Date:
|
April 27, 2018
|
/s/ Viki K. Blinderman
|
|
|
Viki K. Blinderman
|
|
|
Senior Vice President, Principal Financial Officer and Secretary
|
|
|
|
Exhibit No.
|
|
Description
|
|
|
|
*31.1
|
|
|
|
|
|
*31.2
|
|
|
|
|
|
**32
|
|
|
|
|
|
*101
|
|
Interactive Data Files.
|
(*)
|
Filed herewith.
|
(**)
|
Furnished herewith.
|
1 Year Carriage Services Chart |
1 Month Carriage Services Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions