Research Update: Carriage Services Inc. Outlook Revised To Stable From Positive On More Aggressive Financial Policy, Ratings Affirmed

Carriage Services Inc. (CSV) has amended its credit agreement to allow it to repurchase up to $30 million of its common shares when its covenant leverage is between 4.50x and 5.25x. The previous credit agreement did not permit any share repurchases until the company reduced its covenant leverage below 4.5x. This announcement came amid a restructuring program, which CSV initiated after it reported weaker-than-expected results for the third quarter of 2018 due primarily to downward pressure on same store revenue growth and margin pressure in its funeral home segment. We are revising our outlook on CSV to stable from positive and affirming all of our ratings on the company, including the 'B' issuer credit rating. The stable outlook reflects our

...+ Carriage Services Inc. (CSV) has amended its credit agreement to allow it to repurchase up to $30 million of its common shares when its covenant leverage is between 4.50x and 5.25x. The previous credit agreement did not permit any share repurchases until the company reduced its covenant leverage below 4.5x. + This announcement came amid a restructuring program, which CSV initiated after it reported weaker-than-expected results for the third quarter of 2018 due primarily to downward pressure on same store revenue growth and margin pressure in its funeral home segment. + We are revising our outlook on CSV to stable from positive and affirming all of our ratings on the company, including the 'B' issuer credit rating. + The stable outlook reflects our expectation that the company's adjusted leverage will remain above 5x in 2018 and 2019....

Research Update