The low-speculative-grade ratings on Carriage Services Inc. reflect the company's still-significant financial burden in an industry that, while fairly predictable, is subject to uncertainties. Houston, Texas-based Carriage grew rapidly through the 1990s to become the fourth-largest cemetery and funeral home operator in North America. The company's expectations for industry growth proved too optimistic, however, and as a result, its earnings and financial profile suffered. In the past few years, it has pruned its marginal properties, selling nearly 40 funeral homes, 12 cemeteries, and other real estate, and its continuing operations now consist of 133 funeral homes and 30 cemeteries in 28 states. Carriage is now more focused on increasing its net revenues per funeral and improving margins, rather than on
