HOUSTON, Feb. 25, 2016 /PRNewswire/ -- Carriage
Services, Inc. (NYSE: CSV) announced today that its Board of
Directors has approved the repurchase of up to an aggregate of
$25 million of its common
stock. The share repurchases may be made from time to time
through open market transactions or privately negotiated
transactions and are subject to market conditions, as well as
corporate, regulatory, and other considerations. The company
intends to make all repurchases in compliance with applicable
regulatory guidelines and to administer the plan in accordance with
applicable laws, including Rule 10b-18 of the Securities Exchange
Act of 1934, as amended.
Commenting on the announcement, Melvin
C. Payne, Chief Executive Officer, stated "I am pleased to
announce that our Board has approved a $25
million common share repurchase program, effective
immediately. The Board's action demonstrates our continuing
confidence in the Company's vision, strategy, growth opportunities
and financial strength, but most of all our confidence in the
Being The Best quality of the leaders and employees in our
businesses and support teams. We believe that the purchase of
our shares during the recent market volatility at prices that do
not reflect the growing cash earning power and intrinsic value of
our company is a wise allocation of the Company's capital and
enhances long term value for all remaining shareholders.
Carriage continues to get better as an operating and consolidation
platform that has also become a superior value creation investment
platform. As I discussed in our recent annual press release,
our goal for Capital Allocation is to invest our recurring Adjusted
Free Cash Flow among various options to create maximum 'per share'
value over the long term.
"During May and September 2015,
our Board of Directors approved the repurchase of up to an
aggregate of $45 million of the
Company's common stock. The repurchases through year end 2015
totaled 1.9 million shares at an aggregate cost of $45 million and average cost per share of
$23.34, which represented about 10.4%
of our previous shares outstanding. On a pro forma basis to
December 31, 2015, our Free Cash Flow
per share with the lower share count would have been $2.63 for 2015, offering current shareholders a
Free Cash Flow Equity Yield of 12.8%.
"We will repurchase shares under our $25
million approved plan from time to time as long as we can
buy our shares at prices under what we consider 'fair value.' We
will continue to prioritize the allocation of our internally
generated capital on acquiring the best remaining independent
funeral and cemetery businesses in the country and on internal
growth projects that generate rates of return well in excess of our
cost of capital.
"Our company goal remains the creation of long term value for
our shareholders and improvement of our credit profile over time
consistent with our high and sustainable performance through 4E
Leadership execution of our three models since beginning the
Carriage Good To Great Journey in 2012," concluded Mr.
Payne.
Certain statements made herein or elsewhere by, or on behalf of,
the Company that are not historical facts are intended to be
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements are
based on assumptions that the Company believes are reasonable;
however, many important factors, as discussed under
"Forward-Looking Statements and Cautionary Statements" in the
Company's Annual Report and Form 10-K for the year ended
December 31, 2015, could cause the
Company's results in the future to differ materially from the
forward-looking statements made herein and in any other documents
or oral presentations made by, or on behalf of, the Company. The
Company assumes no obligation to update or publicly release any
revisions to forward-looking statements made herein or any other
forward-looking statements made by, or on behalf of, the Company. A
copy of the Company's Form 10-K, and other Carriage Services
information and news releases, are available at
http://www.carriageservices.com.
Carriage Services is a leading provider of deathcare services
and merchandise in the United
States. Carriage operates 167 funeral homes in 27 states and
32 cemeteries in 11 states.
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SOURCE Carriage Services, Inc.