Bulletin: Carriage Services Inc. Lower EBITDA, Higher Leverage A Credit Negative

NEW YORK (S&P Global Ratings) July 28, 2022--S&P Global Ratings said today that Carriage Services Inc.'s lower than expected EBITDA for the second quarter and lowered EBITDA forecast for the next 12 months is a credit negative. Our ratings, including the 'B+' issuer rating and stable outlook, are unchanged. Based on lower assumptions for operating results, we now expect S&P Global Ratings-adjusted debt to EBITDA in the low-5x area for 2022 (less than $120 million, almost $10 million lower than 2021), declining to the high-4x area in 2023 from some EBITDA growth and modest debt repayment. We expect the company's investment in operating expenses to result in slightly better revenue growth in 2023 than 2022, although still in the low-single-digit

...July 28, 2022 NEW YORK (S&P Global Ratings) July 28, 2022--S&P Global Ratings said today that Carriage Services Inc.'s lower than expected EBITDA for the second quarter and lowered EBITDA forecast for the next 12 months is a credit negative. Our ratings, including the 'B+' issuer rating and stable outlook, are unchanged. Based on lower assumptions for operating results, we now expect S&P Global Ratings-adjusted debt to EBITDA in the low-5x area for 2022 (less than $120 million, almost $10 million lower than 2021), declining to the high-4x area in 2023 from some EBITDA growth and modest debt repayment. We expect the company's investment in operating expenses to result in slightly better revenue growth in 2023 than 2022, although still in the low-single-digit percentages, with some margin expansion compared to 2022. We expect EBITDA to exceed 2021 levels by 2024. S&P Global Ratings-adjusted debt to EBITDA in the high-4x area for 2023 is in line with Carriage's guidance for its calculated...

Bulletin