The low-speculative-grade ratings on Carriage Services Inc. reflect the funeral home operator's significant financial burden in an industry that, though fairly predictable, is subject to operating uncertainties. The Houston, Texas-based Carriage network of 133 funeral homes in 28 states and 29 cemeteries in 12 states is the fourth-largest rated operator in North America. Carriage is focused on increasing its net revenues per funeral and improving margins, rather than on aggressive expansion as it was in the past. The company continues to face challenging industry trends that could impede its progress. North America has been experiencing relatively flat death rates and therefore flat funeral volume and cemetery and merchandise sales trends. Cremation services have been rising and should continue to increase
