The low-speculative-grade rating on Carriage Services Inc. reflects the funeral home operator's significant financial burden in an industry that, although 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 revenue per funeral and improving margins, it has returned to an aggressive expansion strategy. In 2007, Carriage acquired $48.6 million of funeral home and cemetery assets. By comparison, the company completed only $1 million of acquisitions in 2006. Standard&Poor's Ratings Services expects Carriage to continue making small acquisitions in 2008. The company continues to face challenging industry
