The low-speculative-grade rating on Carriage Services Inc. reflects the funeral home operator's significant financial burden in an industry which, though relatively predictable, is subject to operating uncertainties. Carriage's network of 135 funeral homes in 27 states and 32 cemeteries in 11 states makes the company the third-largest rated operator in North America. Although Carriage has continued its focus on increasing net revenues per funeral and improving margins, the company has returned to its aggressive expansion strategy. As of Sept. 30, 2007, Carriage had acquired $32.5 million of funeral home and cemetery assets in the current year, not including an additional $10 million acquisition completed in November 2007. By comparison, the company completed only $1 million of acquisitions in 2006. Standard
