Carriage Services Inc (CSV) 2025 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Carriage Services fourth quarter 2025 earnings webcast. Please be advised that today's conference is being recorded.

各位好，感謝您撥冗等候。歡迎收看 Carriage Services 2025 年第四季財報網路直播。敬請注意，今日會議將進行錄音。

I would now like to hand the conference over to your speaker today, Steve Metzger, President. Please go ahead, sir.

現在我想將會議交給今天的講者——總裁 Steve Metzger。先生，請開始。

Good morning, everyone, and thank you for joining us to discuss our fourth quarter and year-end results for 2025. In addition to myself, on the call this morning from management are Carlos Quezada, Chief Executive Officer and Vice Chairman of the Board of Directors; and John Enwright, Senior Vice President and Chief Financial Officer.

各位早安，感謝各位加入我們，一同討論 2025 年第四季及全年年終業績。除了我之外，今天早上管理團隊也在電話會議中，包括：執行長暨董事會副主席 Carlos Quezada，以及資深副總裁兼財務長 John Enwright。

On the Carriage Services website, you can find our earnings press release, which was issued yesterday after the market closed. Our press release is intended to supplement our remarks this morning and include supplemental financial information, including the reconciliation of differences between GAAP and non-GAAP financial measures.

在 Carriage Services 官網上，您可以找到我們的財報新聞稿，該新聞稿已於昨日收盤後發布。我們的新聞稿旨在補充今天早上的發言，並包含補充性財務資訊，包括 GAAP 與非 GAAP 財務衡量指標差異的調節表。

Today's call will begin with formal remarks from Carlos and John, and will be followed by a question-and-answer period. Before we begin, I'd like to remind everyone that during this call, we'll make some forward-looking statements, including comments about our business, projections and plans. Forward-looking statements inherently involve risks and uncertainties and only reflect our views as of today. These risks and uncertainties include, but are not limited to, factors identified in our earnings release as well as in our SEC filings, all of which can be found on our website.

今天的電話會議將先由 Carlos 與 John 發表正式談話，隨後進入問答環節。在開始之前，我想提醒各位，在本次會議中我們將做出若干前瞻性陳述，包括對我們業務、預測與計畫的評論。前瞻性陳述本質上涉及風險與不確定性，且僅反映我們截至今日的觀點。這些風險與不確定性包括但不限於我們財報新聞稿以及向 SEC 提交文件中所識別的因素，相關文件皆可於我們官網查閱。

Thank you all for joining us this morning. And now I'd like to turn the call over to Carlos.

感謝各位今天早上加入我們。現在我想把電話會議交給 Carlos。

Thank you, Steve, and welcome to everyone joining us for today's fourth quarter and full year earnings call. As we close out 2025, I am incredibly proud of what our Carriage team has accomplished. This year reflects disciplined execution, cultural alignment and a relentless commitment to creating premier experiences for the families we serve. Before discussing our financial performance, I want to recognize every managing partner, every team member in the field and every support member across our organization.

謝謝你，Steve，也歡迎各位參加今天的第四季與全年財報電話會議。在 2025 年即將結束之際，我對 Carriage 團隊所達成的成果感到無比自豪。今年展現了紀律執行、文化一致性，以及為我們所服務的家庭打造卓越體驗的堅定承諾。在討論財務表現之前，我想先表揚每一位經營合夥人、每一位第一線團隊成員，以及組織內每一位支援同仁。

You are the heartbeat of Carriage. Our results are not accidental. They are the result of a clear vision, high expectations, accountability and a deep passion for this noble profession. Thank you for living our values and for delivering excellence to every family every time.

你們是 Carriage 的心臟。我們的成果並非偶然。這是清晰願景、高標準、問責精神，以及對這份崇高職業的深厚熱情所共同促成的結果。感謝各位實踐我們的價值觀，並在每一次服務中為每一個家庭提供卓越表現。

Today, I will highlight our financial performance for the fourth quarter and the full year and provide an update on the progress of some of our strategic objectives. John will then provide additional detail on our financial metrics, cash from operating activities, balance sheet strength, capital expenditures, overhead and 2026 guidance.

今天，我將重點說明第四季與全年財務表現，並更新部分策略目標的進展。接著 John 將就我們的財務指標、營運活動現金流、資產負債表強度、資本支出、管理費用以及 2026 年指引提供更多細節。

Now to my report. 2025 was a year of defined purpose and intentional value creation. We continue to build a more scalable operating framework, optimize our supply chain processes, enhance our passion for service mindset and reactivated our disciplined growth strategy through high-quality acquisitions. At the same time, we further strengthened our balance sheet and reinforced our capital allocation discipline. We are no longer in the rebuilding phase. We are now firmly in the compounding phase.

現在進入我的報告。2025 年是目標明確、刻意創造價值的一年。我們持續打造更具可擴展性的營運架構、優化供應鏈流程、強化以服務為核心的心態，並透過高品質併購重新啟動我們的紀律成長策略。同時，我們進一步強化資產負債表，並鞏固資本配置的紀律。我們已不再處於重建階段。我們現在已穩健進入複利成長階段。

Let's begin with the numbers. For the fourth quarter, we reported total revenue of $105.5 million, representing a solid 8% increase compared to the same period last year. When we look at each segment, total funeral operating revenue was $61.1 million, reflecting a 9.6% growth year over year. Funeral home operating volume was 10,571, an increase of 6.8% over the same period last year, while average revenue per contract was $5,777, an increase of 2.6% over the previous year's quarter.

先從數字開始。第四季我們的總營收為 1.055 億美元，較去年同期穩健成長 8%。就各事業別來看，殯葬業務營運營收合計為 6,110 萬美元，年增 9.6%。殯儀館營運量為 10,571 件，較去年同期增加 6.8%；每份合約平均營收為 5,777 美元，較去年同季增加 2.6%。

This performance reflects our continued focus on strategic pricing, new burial information offerings, service mix optimization and steady execution in our businesses. As you may recall, December 2024 had lower-than-expected volumes due to a shift in the flu season that pushed volume to January. This December, we experienced a more typical flu season.

此一表現反映我們持續聚焦於策略性定價、新的安葬資訊方案、服務組合最佳化，以及各項業務的穩健執行。如各位所記得，2024 年 12 月因流感季節時點移轉、使量能延後至 1 月，導致當月量能低於預期。而今年 12 月，我們經歷了較為典型的流感季節。

Moving to total cemetery operating revenue. We finished the fourth quarter at $33.8 million, an increase of $5.3 million or 18.4% compared to the same quarter last year. This performance was primarily driven by a 25.5% increase in preneed cemetery sales production, a 15.6% increase in preneed interment rights sold and a 5.3% increase in the average sales per property contract. Our cemetery performance continues to highlight the power of diverse inventory development, strategic pricing and focused preneed execution.

接著看墓園業務營運營收。第四季我們達到 3,380 萬美元，較去年同季增加 530 萬美元，增幅 18.4%。此表現主要由以下因素帶動：預售（preneed）墓園銷售產出增加 25.5%、預售安葬權利（interment rights）銷售增加 15.6%，以及每份不動產合約平均銷售額增加 5.3%。我們的墓園表現持續凸顯多元庫存開發、策略性定價與聚焦預售執行的力量。

Moving to total financial revenue. The company ended the quarter at $9.3 million, an increase of 15.3% compared to the same period last year, primarily driven by the strong performance of our trust fund investments. Preneed insurance contracts sold increased by 33.8% compared with the same quarter last year, reinforcing the continued strength of our funeral preneed insurance sales strategy and the outstanding work of our sales teams who continue to focus on the education of our families on the value of preplanning.

再看金融收入（financial revenue）。公司本季為 930 萬美元，較去年同期增加 15.3%，主要受惠於我們信託基金投資的強勁表現。預售保險合約銷售較去年同季增加 33.8%，進一步印證我們殯葬預售保險銷售策略的持續強勁，以及我們銷售團隊在向家庭宣導預先規劃價值方面所做的傑出工作。

Turning to profitability. Adjusted consolidated EBITDA for the fourth quarter was $32.5 million, an increase of $3.2 million or 11%, and adjusted consolidated EBITDA margin was 30.8%, an increase of 80 basis points when compared to the same quarter the previous year. This margin expansion reflects the combined impact of our supply chain initiatives, strategic pricing and capital allocation discipline. Adjusted diluted EPS for the fourth quarter was $0.75 per share compared to $0.62 during the same quarter the previous year, an increase of $0.13 per share or 21%. Our fourth quarter of 2025 delivered strong performance, and we are pleased with the progress made.

接著談獲利能力。第四季調整後合併 EBITDA 為 3,250 萬美元，增加 320 萬美元或 11%；調整後合併 EBITDA 利潤率為 30.8%，較去年同季提升 80 個基點。此一利潤率擴張反映我們供應鏈計畫、策略性定價與資本配置紀律的綜合影響。第四季調整後稀釋每股盈餘（EPS）為 0.75 美元，去年同季為 0.62 美元，增加 0.13 美元或 21%。我們 2025 年第四季交出強勁表現，並對所取得的進展感到滿意。

Now let's move to our full year performance. Total revenue was $417.4 million, up from $404.2 million in 2024, representing a 3.3% growth. While reported revenue growth of 3.3% may appear modest at first glance, it significantly understates the company's underlying performance in the context of our portfolio repositioning. In 2025, the divestiture of noncore businesses negatively impacted revenue by approximately $9 million, and we acquired strategically selected high-quality assets in September, which contributed about $4 million in revenue.

現在來看全年表現。總營收為 4.174 億美元，高於 2024 年的 4.042 億美元，成長 3.3%。雖然表面上 3.3% 的營收成長看似不高，但在我們進行投資組合重新定位的背景下，這個數字顯著低估了公司的基本面表現。2025 年，出售非核心業務使營收約減少 900 萬美元；而我們於 9 月策略性收購的高品質資產，約貢獻 400 萬美元營收。

We expect these new businesses to reach $16 million in revenue in 2026. Overall, while we felt the top line impact of the divestitures of noncore businesses in 2025, this portfolio optimization will enhance our ability to grow revenue and margins in the future and showcase our commitment to disciplined capital allocation and return of invested capital.

我們預期這些新業務在 2026 年將達到 1,600 萬美元營收。整體而言，儘管 2025 年出售非核心業務對營收上線造成影響，但此一投資組合最佳化將提升我們未來成長營收與利潤率的能力，並展現我們對紀律性資本配置與投資資本報酬的承諾。

Moving to adjusted consolidated EBITDA. We ended the year at $130.7 million, an increase of $4.4 million (sic- $4.5 million) or 3.5%, while adjusted consolidated EBITDA margin finished at 31.3%, an increase of 10 basis points, both compared to the prior year. Adjusted diluted EPS was $3.20 per share compared to $2.65 per share, an increase of $0.55 or 20.8% compared to the prior year.

接著談調整後合併 EBITDA。我們以 1.307 億美元結束年度，增加 440 萬美元（原文誤植：450 萬美元）或 3.5%；同時，調整後合併 EBITDA 利潤率為 31.3%，增加 10 個基點，兩者皆較前一年提升。調整後稀釋每股盈餘為每股 3.20 美元，較前一年的每股 2.65 美元增加 0.55 美元或 20.8%。

These results demonstrate the execution discipline of our operations and validate the effectiveness of our strategy to turn around the company. Over the past three years, we have rebuilt Carriage with intention, purpose and disciplined execution, not simply to improve performance and build credibility, but to create a more sustainable, profitable and predictable company.

這些結果展現了我們營運的執行紀律，並驗證了我們扭轉公司局勢策略的有效性。過去三年，我們以明確的意圖、使命感與嚴謹的執行重建 Carriage，不僅是為了改善績效與建立信譽，更是為了打造一家更具永續性、更高獲利且更可預測的公司。

We have reshaped our revenue mix for higher quality earnings, institutionalized rigor with our operating system to reduce volatility and improve our margin profile through disciplined pricing, supply chain optimization and strategic capital allocation. These actions are designed to generate consistent cash flow, expand profitability over time and enhance earnings visibility. Most importantly, our leadership teams are fully aligned and executing with accountability to deliver performance that we believe is repeatable and scalable.

我們已重塑營收組合以提升獲利品質，並透過營運系統制度化嚴謹管理，藉由紀律性定價、供應鏈最佳化與策略性資本配置來降低波動並改善利潤結構。這些行動旨在產生穩定的現金流、隨時間擴大利潤能力並提升獲利能見度。最重要的是，我們的領導團隊完全一致並以問責方式執行，交付我們相信可重複且可擴展的績效。

Moving to updates on our strategic initiatives. We continue to invest in systems and infrastructure to support disciplined growth, advancing continuous improvement initiatives, modernized technology platforms and enhanced reporting capabilities. These investments improve our reliability, visibility and decision-making quality, converting efforts into behaviors and repeatable outcomes.

接著更新我們的策略性計畫。我們持續投資於系統與基礎設施以支持有紀律的成長，推進持續改善計畫、現代化技術平台與強化報告能力。這些投資提升了我們的可靠性、能見度與決策品質，將努力轉化為行為與可重複的成果。

For example, we upgraded our sales infrastructure by deploying Sales Edge 2.0, our CRM, achieving approximately 80% adoption by year-end. The platform enhanced funnel visibility, campaign targeting and reporting precision, contributing $2.6 million in fourth quarter preneed production.

例如，我們透過導入 Sales Edge 2.0（我們的 CRM）升級銷售基礎設施，至年底採用率約達 80%。該平台提升了漏斗能見度、行銷活動鎖定與報告精準度，為第四季的預售（preneed）產出貢獻 260 萬美元。

In parallel, we fully integrated our preneed funeral sales strategy across the sales organization. We expect Sales Edge 2.0 to become our preneed sales engine in 2026. At the same time, we develop our leadership capability and reinforce a meritocratic culture aligned with performance expectations. Culture at Carriage is a measurable economic asset that makes execution stronger, reduces risk and supports sustainable profitability.

同時，我們已在整個銷售組織中全面整合預售殯葬銷售策略。我們預期 Sales Edge 2.0 將在 2026 年成為我們的預售銷售引擎。此外，我們也培養領導力並強化與績效期望一致的任人唯賢文化。Carriage 的文化是一項可衡量的經濟資產，能強化執行力、降低風險並支持永續獲利。

Our supply chain optimization strategy continues with our urn and casket core line initiatives now fully embedded across our organization. These strategies are driving purchasing consistency, margin improvement and a more curated presentation for families. We expect future optimization opportunities and additional national partnerships will allow us to further reduce complexity and enhance our operating leverage.

我們的供應鏈最佳化策略持續推進，骨灰罈與棺木核心產品線計畫現已全面嵌入整個組織。這些策略正推動採購一致性、利潤改善，並為家屬提供更精選的呈現。我們預期未來的最佳化機會與更多全國性合作夥伴關係，將使我們得以進一步降低複雜度並提升營運槓桿。

In closing, we're building a best-in-class death care company defined by premier experiences, a high-performance culture, meritocracy and accountability, all aligned with our three strategic objectives: disciplined capital allocation, purposeful growth and relentless improvement. Our performance in 2025 reflects disciplined execution guided by a clear, consistent framework rooted in our purpose to create premier experiences through innovation, empowered partnerships and elevated service.

最後，我們正在打造一家同級最佳的殯葬服務公司，其特徵是卓越體驗、高績效文化、任人唯賢與問責制，並與我們三項策略目標一致：有紀律的資本配置、有目的的成長與持續不懈的改善。我們在 2025 年的表現反映了在清晰且一致的框架指引下的紀律性執行；該框架根植於我們的使命：透過創新、賦能的夥伴關係與提升的服務，創造卓越體驗。

These are not aspirations. They are operating standards that guide capital deployment, operational decisions and long-term value creation. Our balance sheet is stronger. Our systems are more robust. Our acquisition engine is active and disciplined, and our culture is aligned with our 2030 vision. We're not chasing growth. We're building durable, predictable and compounding long-term shareholder value. As we enter 2026, we do so with confidence, clarity and intention.

這些不是願景口號。它們是指導資本投放、營運決策與長期價值創造的營運標準。我們的資產負債表更強健。我們的系統更健全。我們的併購引擎活躍且有紀律，而我們的文化也與 2030 願景一致。我們不是在追逐成長。我們是在建立耐久、可預測且能長期複利的股東價值。邁入 2026 年，我們帶著信心、清晰與明確的意圖前行。

Thank you for your continued trust and belief in Carriage. I will now turn the call over to John.

感謝各位持續對 Carriage 的信任與支持。接下來我把電話會議交給 John。

Thank you, Carlos, and thanks, everyone, for joining us today. Before I start, I'd like to look back on my first year at Carriage Services. I knew stepping into a new industry would bring professional growth, but what stood out most was the dedication and commitment throughout the organization. Our teams are truly unmatched in their focus on enhancing the care and service we provide for the families who choose us. I appreciate both our field and support center teams for everything you do each day.

謝謝你，Carlos，也謝謝各位今天加入我們。在開始之前，我想回顧我在 Carriage Services 的第一年。我知道踏入一個新產業會帶來專業成長，但最令我印象深刻的是整個組織的投入與承諾。我們的團隊在提升我們為選擇我們的家屬所提供的關懷與服務方面，專注程度確實無可匹敵。我感謝我們的一線與支援中心團隊每天所做的一切。

My comments today will primarily focus on performance in the fourth quarter of 2025 compared to the fourth quarter of 2024. After that, I will share our outlook for 2026. We reported consolidated adjusted EBITDA of $32.5 million, representing 30.8% of revenue, an increase from $29.3 million or 30% of revenue in the fourth quarter of last year.

我今天的評論將主要聚焦於 2025 年第四季相較 2024 年第四季的表現。之後，我將分享我們對 2026 年的展望。我們報告合併調整後 EBITDA 為 3,250 萬美元，占營收 30.8%，較去年第四季的 2,930 萬美元（占營收 30%）增加。

The increase, both in absolute terms and percentage were driven by improved performance across our field operations, resulting in a $5.5 million increase in field EBITDA. However, this progress was partially offset by an unanticipated employee benefit expense of approximately $1.2 million, which stemmed from a few high-cost claimants during the quarter as well as higher volume of medical insurance claims filed in December of this year compared to previous year.

無論以絕對金額或占比來看，增幅皆由我們現場營運的表現改善所帶動，使現場 EBITDA 增加 550 萬美元。然而，這項進展部分被約 120 萬美元的非預期員工福利費用所抵銷，該費用源於本季出現少數高成本理賠個案，以及今年 12 月提出的醫療保險理賠申請量較去年同期更高。

Additionally, overhead expenses rose, which I'll discuss further shortly. For the fourth quarter of 2025, our adjusted diluted EPS rose to $0.75, representing a 21% increase from $0.62 in the prior year.

此外，管理費用上升，我稍後會進一步說明。2025 年第四季，我們的調整後稀釋每股盈餘上升至 0.75 美元，較前一年 0.62 美元增加 21%。

The previously mentioned unanticipated employee benefit expense in the fourth quarter of 2025 impacted diluted EPS by approximately $0.05 to $0.06. On a GAAP basis, diluted EPS for the fourth quarter was $0.77 compared to $0.62 in the same period last year. For the full year, GAAP diluted EPS increased by $1.15 or 54.8%, while adjusted diluted EPS grew by $0.55 or 20.8%.

前述 2025 年第四季非預期員工福利費用，對稀釋每股盈餘的影響約為 0.05 至 0.06 美元。按 GAAP 基礎計算，第四季稀釋每股盈餘為 0.77 美元，去年同期為 0.62 美元。就全年而言，GAAP 稀釋每股盈餘增加 1.15 美元或 54.8%，而調整後稀釋每股盈餘成長 0.55 美元或 20.8%。

Moving to cash from operating activities. We saw an increase of $4.8 million over the prior year quarter or a 52.2% increase, primarily a result of year over year improvement in operating results. Adjusted free cash flow in the quarter was down $400,000 or 5.4% from the prior year fourth quarter, primarily due to higher capital expenditures.

接著談營業活動現金流。我們較去年同期增加 480 萬美元，增幅 52.2%，主要來自營運成果的年對年改善。本季調整後自由現金流較去年第四季減少 40 萬美元或 5.4%，主要因資本支出較高。

Due to our ongoing commitment to disciplined capital allocation, our bank leverage ratio decreased to 4 times from 4.3 times at the close of the fourth quarter of 2024. In recent years, we've concentrated on enhancing operations and deploying capital efficiently. We're pleased to finish the year within our long-term leverage ratio target of 3.5 times to 4 times. Capital expenditures for the quarter totaled $7.9 million in the fourth quarter of 2025 compared to $4.4 million in the prior year's fourth quarter. The $3.5 million increase was predominantly associated with growth capital, specifically investment in cemetery development, which allows us to continue to drive strong preneed cemetery sales production.

由於我們持續致力於有紀律的資本配置，我們的銀行槓桿比率由 2024 年第四季末的 4.3 倍降至 4 倍。近年來，我們專注於提升營運並有效率地部署資本。我們很高興年末落在我們長期槓桿比率目標 3.5 倍至 4 倍之內。2025 年第四季資本支出合計 790 萬美元，較前一年第四季的 440 萬美元增加。增加的 350 萬美元主要與成長型資本相關，特別是對墓園開發的投資，使我們能持續推動強勁的預售墓園銷售產出。

For the quarter, we spent $5.2 million on growth capital and $2.7 million on maintenance capital. Overhead expenditures for the quarter totaled $15.2 million or 14.4% of revenues compared to $12.9 million or 13.2% of revenues in the fourth quarter of 2024. The increase was predominantly associated with higher incentive pay for the field based on performance for the year. On a full year basis, overhead expenses totaled $56.6 million or 13.6% of revenues, which aligns with our long-term target.

本季我們在成長資本支出上投入了520萬美元，並在維護性資本支出上投入了270萬美元。本季管理費用合計為1,520萬美元，約占營收的14.4%，相較於2024年第四季的1,290萬美元（占營收13.2%）。增加主要與依年度績效而提高的一線激勵薪酬有關。以全年計，管理費用合計為5,660萬美元，約占營收的13.6%，與我們的長期目標一致。

Moving on to our 2026 outlook. In forming an outlook for the upcoming year, we have shifted toward a growth-oriented approach, along with incorporating the projected full year benefits from our 2025 acquisitions. Additionally, we have factored in the expectation of certain potential acquisitions that we believe may be completed in 2026. Revenues are planned to be in the $440 million to $450 million range compared to $417.4 million in 2025, which represents a growth rate of approximately 5.5% to 8%.

接著談我們對2026年的展望。在制定來年的展望時，我們已轉向以成長為導向的方法，同時納入我們於2025年收購案所帶來的預期全年效益。此外，我們也將我們認為可能於2026年完成的若干潛在收購之預期納入考量。營收規劃在4.40億至4.50億美元區間，相較於2025年的4.174億美元，約代表5.5%至8%的成長率。

We expect same-store funeral growth in the low single digits and cemetery growth in the high single digits. Preneed cemetery sales production should remain within our 10% to 20% target range. Adjusted consolidated EBITDA is forecasted at $135 million to $140 million for 2026, up from $130.7 million in 2025. Margins are expected to range between 30.5% to 31.5% compared to 2025 margin of 31.3%. Overhead is projected to be 13.5% to 14.5% a bit higher than our long-term goal of 13% to 14%, mainly due to expected increases in IT investments, ongoing Project Trinity rollout expenses and continued investment in talent.

我們預期同店葬儀業務成長為低個位數百分比，墓園業務成長為高個位數百分比。預售（preneed）墓園銷售產出應維持在我們10%至20%的目標區間內。2026年調整後合併EBITDA預估為1.35億至1.40億美元，高於2025年的1.307億美元。利潤率預期介於30.5%至31.5%，相較於2025年的31.3%。管理費用預估為13.5%至14.5%，略高於我們13%至14%的長期目標，主要因預期IT投資增加、Project Trinity持續推行的費用，以及持續的人才投資。

Based on these targets, we anticipate adjusted diluted EPS of $3.35 to $3.55 compared to $3.20 in 2025. Our adjusted diluted EPS will be somewhat impacted by our expected full year effective tax rate moving to a range of 28.5% to 29% compared to 26.7% in 2025.

基於這些目標，我們預期調整後稀釋每股盈餘（EPS）為3.35至3.55美元，相較於2025年的3.20美元。我們的調整後稀釋EPS將受到影響，原因是我們預期全年有效稅率將上升至28.5%至29%的區間，相較於2025年的26.7%。

Finally, we anticipate our adjusted free cash flow to be in the range of $40 million to $50 million, which assumes total capital expenditures in 2026 of $25 million to $30 million, reflective of the continued investment in our core business.

最後，我們預期調整後自由現金流將落在4,000萬至5,000萬美元區間；此假設2026年總資本支出為2,500萬至3,000萬美元，反映我們對核心業務的持續投資。

That concludes our prepared remarks, and I will turn it over to the operator to open it up for questions.

以上是我們準備好的發言內容，接下來我將交給接線員開放提問。

(Operator Instructions)

（接線員指示）

Alex Paris, Barrington Research.

Alex Paris，Barrington Research。

Congrats on the strong finish to the year and the guide. My questions are in three parts. First, on the quarter, you beat on revenue pretty handily. And I think you said the acquisitions of the third quarter added around $4 million for the year. How much for the fourth quarter did they add?

恭喜今年收官表現強勁以及給出的指引。我的問題分三個部分。第一，針對本季，你們在營收方面明顯優於預期。我記得你提到第三季的收購案全年大約貢獻了400萬美元。那第四季貢獻了多少？

They added about $3 million, generally speaking.

大致來說，他們貢獻了約300萬美元。

Okay. Adjusted EBITDA was in line despite that increase in overhead that you mentioned and the unanticipated insurance costs. Are those insurance costs included in overhead or no?

好的。儘管你提到管理費用增加以及未預期的保險成本，調整後EBITDA仍符合預期。那些保險成本有包含在管理費用裡嗎，還是沒有？

So they're spread between overhead as well as field margins. So predominantly, they're in field margins. But yes, there's an impact to overhead as well as we allocate.

它們分攤在管理費用以及一線利潤率之間。主要是在一線利潤率裡。但沒錯，因為我們會做分攤，所以管理費用也會受到影響。

Okay. And then adjusted EPS was a little bit lower than our expectations, but versus my model, you had higher interest expense and a higher tax rate than I had modeled. Anything else in there?

了解。另外，調整後EPS略低於我們的預期；但相較於我的模型，你們的利息費用與稅率都比我建模的更高。還有其他因素嗎？

No, no, that's -- I mean, as you think about our expectations and how we guided to really, if we didn't have that unanticipated employee benefit expense, we would have fallen right within where we expected.

沒有，沒有，就是——我的意思是，當你看我們的預期以及我們的指引時，實際上如果沒有那筆未預期的員工福利費用，我們就會完全落在我們原先預期的區間內。

That's true. Okay. And then moving to guidance. Revenue growth, 5% to 8%, adjusted EBITDA 3% to 7%, adjusted EPS growth, 5% to 11%. My question is, what are the underlying assumptions for the low end and the high end? In other words, what would it take to get to the high end of guidance?

確實如此。好的。接著談指引。營收成長5%到8%，調整後EBITDA成長3%到7%，調整後EPS成長5%到11%。我的問題是，低端與高端的底層假設是什麼？換句話說，要達到指引高端需要什麼條件？

So from a high end of guidance, you would need to -- the impact of the new acquisitions would have to be at our high end. So we're estimating the acquisitions to be between $5 million and $10 million of impact to performance in 2026. So we would be at the high end of that. We would be at a little bit higher end of the -- our impact. So as you think about our funeral business, we expect low single-digit growth. That could be between 1% to 3% would be at the high end of that. And then in cemetery really between 6% and 8%, we'd be at the high end of that.

若要達到指引高端，你需要——新收購案的影響必須落在我們預估的高端。我們估計這些收購案在2026年對業績的影響約在500萬到1,000萬美元之間。因此我們會落在該區間的高端。我們的影響也會偏向較高端。以葬儀業務來看，我們預期低個位數成長。若在高端，可能是1%到3%。而墓園業務大約在6%到8%之間，我們會落在該區間的高端。

Got you. That's helpful. And then you said that, that guidance included an assumption for acquisitions that have not yet been announced. Can you quantify it? Perhaps you did in the prepared comments, but I missed it. And what's the methodology for including or not including? For example, are you at letter of intent stage by the time you increase it? What's the methodology for factoring in future acquisitions?

了解。這很有幫助。另外你提到，該指引包含了對尚未公告之收購案的假設。你能量化一下嗎？也許你在事先準備的發言中已提到，但我漏聽了。以及納入或不納入的判斷方法是什麼？例如，是否在你們進入意向書（LOI）階段時才會提高？將未來收購納入考量的方法論是什麼？

Yeah. So the acquisitions, the impact to the guide is about $5 million or $10 million. We expect it to range within that. I can let Steve speak to kind of the perspective. But we -- both Carlos and I spoke in our prepared remarks, be more focused on growth and being growth oriented. And ultimately, based on that, as we are more proactive in our M&A program, we felt it appropriate to apply something this year.

可以。收購案對指引的影響大約是500萬到1,000萬美元。我們預期會落在這個區間內。我可以讓Steve談談這方面的觀點。但我和Carlos在我們準備好的發言中都提到，我們會更聚焦於成長、以成長為導向。最終，基於這點，隨著我們在併購（M&A）計畫上更積極主動，我們認為今年採用一些假設是合適的。

This is Carlos. I just want to reinforce. So as you remember, we spent the most part of the last three years trying to get all the systems updated, the foundation for growth for the company and really focusing on paying down our debt to a range that we feel comfortable, which is that 3.5 times to 4 times. We achieved the 4 times as we close 2025.

我是Carlos。我只是想再強調一下。如你所記得的，過去三年我們大部分時間都在更新所有系統、為公司的成長打好基礎，並且真正專注於把債務降到我們覺得舒適的區間，也就是3.5倍到4倍。在2025年結束時，我們達到了4倍。

And we truly believe now Carriage at its core is a consolidation company. So really trying to advance and make some rapid moves on growth from an M&A perspective in organically speaking. And I truly believe this is why we want to signal to our investors that within the guidance that we're ready for that.

而我們現在確實相信，Carriage 的核心是一家整合型公司。因此，從併購（M&A）的角度，以及就有機成長而言，我們正努力推進並在成長上做出一些快速動作。而我也確實相信，這就是為什麼我們希望向投資人傳達：在我們的指引範圍內，我們已經準備好這麼做。

That's great. The point of clarification though, the high end of guidance includes a $5 million to $10 million impact year over year from I assume the third quarter acquisitions. And then you're saying there's potentially another $5 million to $10 million in acquisitions that you expect to make in 2026.

很好。不過我想釐清一點：指引的高端包含了我推測是第三季收購案所帶來的、年對年約 500 萬到 1,000 萬美元的影響。然後你又說，2026 年可能還會有另一筆你們預期將完成的收購，帶來 500 萬到 1,000 萬美元的影響。

Yeah. So that's a great clarification. So for 2026 results, we expect the acquisitions that happened in 2025 to generate about $16 million worth of revenue. You have to net that against the $4 million that they had in 2025 as well as the divested revenue that we had in 2025 of about $9.7 million. So the impact of just that program is probably an increment of about $4 million, right, roughly. In 2026, we're estimating new acquisitions that we believe will have $5 million to $10 million of impact to revenue.

對。這個釐清很好。就 2026 年的結果而言，我們預期 2025 年完成的收購案將帶來約 1,600 萬美元的營收。你必須把這個數字扣掉它們在 2025 年本來就有的約 400 萬美元，以及我們在 2025 年處分掉的營收約 970 萬美元。所以，單就那個方案的影響來看，大概是增加約 400 萬美元，對吧，大約如此。至於 2026 年，我們估計新的收購案將對營收帶來 500 萬到 1,000 萬美元的影響。

Okay. Good. And then in terms of new acquisitions, I don't know if I fully heard the answer. Are these specific acquisitions that you're talking about or just a methodology to include some sort of number for acquisitions since you're a consolidator?

了解。很好。那在新收購案方面，我不確定我是否完全聽到答案。你們談的是特定的收購案，還是因為你們是整合者，所以只是用一種方法論把某個收購數字納入預估？

Alex, it's Steve. So it's a combination of both. So at this point, we -- last year, we talked a little bit about investing in more resources internally to make sure we can be more proactive on sourcing deals. And so we are talking to more owners, quite frankly, than at any time during my 8 years at Carriage. And we still balance that with looking for a very particular type of business.

Alex，我是 Steve。所以兩者都有。目前，我們——去年我們談到過，會在內部投入更多資源，以確保我們能更主動地尋找交易來源。坦白說，我們現在與更多業主在洽談，這是我在 Carriage 這 8 年來任何時候都沒有過的。同時，我們仍會在此之間取得平衡，去尋找非常特定類型的業務。

So at this point, we've got more that we will be able to report next quarter on some ongoing discussions with owners who are ready. So we're excited to talk about that when the time is appropriate. But parallel to that, we're talking with a number of owners who are getting comfortable and we're getting comfortable with them with some potential opportunities this year. So it's a little bit of both. We've got some that are closer to, call it, seventh or eighth inning and then some that are earlier innings.

所以就目前而言，我們有更多進展，下一季我們將能就一些與已準備好的業主之間的持續討論進行報告。我們很期待在適當的時機談這些。但與此同時，我們也在與多位業主洽談；他們正在逐步感到放心，而我們也在與他們建立互信，並就今年的一些潛在機會進行交流。所以兩者都有。有一些已經比較接近了，可以說是第七或第八局；也有一些還在比較早的局數。

Got you. Okay. And then the last question is I was wondering if we can get an update on the Q3 acquisitions. They had roughly $15 million in revenue in 2024. That's what you had announced at the time of the acquisition. You're saying that they're going to be $16 million in 2026 after having contributed a partial year of $4 million in 2025. So now that we're back in the M&A business after the hiatus, what is the integration process for acquisitions once closed? What is step 1, step 2, step 3? And where are we on the integration process for those Orlando-based acquisitions?

了解。好。最後一個問題：我想請你們更新一下第三季的收購案。它們在 2024 年的營收大約是 1,500 萬美元。這是你們在收購時宣布的數字。你們說它們在 2025 年貢獻了部分年度約 400 萬美元之後，2026 年將達到 1,600 萬美元。所以現在我們在暫停一段時間後又回到併購（M&A）業務，收購案完成後的整合流程是什麼？第 1 步、第 2 步、第 3 步是什麼？而對於那些以奧蘭多為基地的收購案，我們目前整合進度到哪裡了？

It's a great question. And I would -- I'd reframe it a little bit. So the integration process really for us begins before close. So we've dialed in with our continuous improvement team, a more structured management approach to systems, employment, onboarding, policies and procedures. And we begin all of that before close, obviously, in partnership with the sellers, so we can hit the ground running on day 1.

這是個很好的問題。我會——我會稍微換個角度來說。對我們而言，整合流程其實在交割前就開始了。我們已經與持續改善團隊一起，針對系統、雇用、到職訓練（onboarding）、政策與流程，調整出更結構化的管理方法。而這些工作我們在交割前就會開始，當然是與賣方合作，讓我們在第 1 天就能立即上手。

As it relates to these two acquisitions, very different acquisitions, although both in really strong markets. So starting with Osceola, as we talked about before, Osceola is unique in that it allows for a holistic operation in the Kissimmee market. So between the cemetery and the opportunities on cemetery development, I think we're really excited there. So we will have some new development, significant development available for the folks in Kissimmee here in just a few months.

就這兩筆收購而言，它們非常不同，雖然都位於非常強勁的市場。先從 Osceola 談起，如同我們之前提到的，Osceola 的獨特之處在於，它讓我們能在 Kissimmee 市場進行更全面的一體化營運。因此，結合墓園以及墓園開發的機會，我認為我們對那裡非常興奮。所以在短短幾個月內，我們將在 Kissimmee 為當地民眾提供一些新的開發項目，而且是相當重要的開發。

We have been working on that development before close. The preneed opportunity for both Kissimmee and then Faith Chapel in Pensacola is significant. So we've got our preneed teams ramped up there to try and take advantage of that as well. But I would say both businesses are pretty mature, but both have a lot of opportunity. And we're seeing steady progress from, call it, day 1 back in late September to where we are now.

我們在交割前就一直在推進那項開發。對 Kissimmee 以及 Pensacola 的 Faith Chapel 而言，預售（preneed）機會都很可觀。因此，我們已在那裡加速擴充預售團隊，力求把握這些機會。但我會說，兩個業務都相當成熟，但也都還有很大的機會。而我們看到從 9 月底的第 1 天到現在，進展都很穩健。

January was the strongest month by far for both businesses. So we're seeing kind of that preplanning on the integration side paying off for us based on kind of historical approach and look forward to seeing what they'll do this year.

1 月是兩個業務迄今為止最強的一個月。所以我們看到，整合端的前期規劃正在為我們帶來回報；就歷史做法來看也是如此，我們也期待看看它們今年會有什麼表現。

John Franzreb, Sidoti & Company.

John Franzreb，Sidoti & Company。

Congratulations on a good year. I'd actually like to start the fourth quarter. Carlos, you mentioned that flu activity returned to normalcy, if you will, in the December period, specifically in December and of itself was very active. I'm curious what you saw in January. We're seeing the secondary resurgence of the flu. I'm curious about the comps on a year over year basis and how they could play out considering last year was so particularly strong.

恭喜你們有個不錯的一年。我其實想先從第四季開始問。Carlos，你提到流感活動在 12 月期間回到正常水準；具體來說，12 月本身非常活躍。我想知道你們在 1 月看到了什麼。我們看到流感的二次回升。我想了解年對年的比較情況，以及考量到去年特別強勁，這些比較可能會如何發展。

That's a great question, John. Thank you for the question. And so as you know, and I mentioned on my prepared remarks, December 2024 came pretty light as a consequence, we believe, to the push of the flu season into January of 2025. This last year, 2025, December came as a normal flu season. So we saw that activity volume increase on a comparable basis, December '25 to '24. And then January, it came out quite light on a comparable basis on volume.

這是個很好的問題，John。謝謝你的提問。如你所知，而且我在事先準備的發言中也提到，2024 年 12 月相對偏淡，我們認為是因為流感季被推遲到 2025 年 1 月。而在剛過去的 2025 年，12 月則呈現正常的流感季。因此，在可比基礎上，我們看到活動量增加，也就是 2025 年 12 月相較 2024 年 12 月。然後到了 1 月，在可比基礎上，量則顯得相當偏淡。

However, I still feel pretty strong of our performance because we're able to make up that loss of volume on a comparable basis because the flu season came earlier and we still end up having a pretty decent -- I don't want to disclose too much, but January looks good even after the, let's call it, the alignment of the flu season between December and January over the past year.

不過，我對我們的表現仍然很有信心，因為即使在可比基礎上出現量的缺口，我們也能彌補，原因是流感季來得更早；而且即便把過去一年 12 月與 1 月之間流感季的時間對齊來看，我們最後的 1 月表現仍相當不錯——我不想透露太多，但 1 月看起來很好。

And what are the prospects for year over year growth in the first quarter versus last year's first quarter, given the tough comp?

那麼，在去年第一季基期很高（比較基期嚴峻）的情況下，今年第一季相較去年第一季的年對年成長前景如何？

Your question was on volume?

你的問題是關於量（volume）嗎？

Yeah. I think the first quarter will be a little bit tougher this year from a comparable perspective because the first quarter was strong throughout the whole quarter because of the flu season in January, February and a little bit into March. So to Carlos' earlier point, we're not going to disclose exactly how we're performing, but we're happy with the performance, but it will be a tougher comp.

是的。我認為從可比基期的角度來看，今年第一季會稍微更具挑戰，因為去年第一季整個季度都很強，主要是因為1月、2月以及延續到3月初的流感季。所以呼應Carlos先前的觀點，我們不會揭露我們具體表現到什麼程度，但我們對表現感到滿意，只是可比基期會更嚴峻。

Got it. Got it. And where do you stand in the supply chain optimization process at this point? Can you give us an update there?

了解。了解。那你們目前在供應鏈優化流程進行到哪一步了？可以給我們更新一下嗎？

Yeah. I would say, and Steve, please jump in if you have anything different to say. I would say we're still in the early innings of that program. We really started in 2024 with one individual kind of running that program. And in '25, we've got the program up to a little bit more speed. But I would say we still have opportunity there, and we'll see some more opportunity as we see 2026 results and into '27 results.

可以。我會說——Steve，如果你有不同看法也請補充。我會說我們仍處於這個計畫的早期階段。我們其實是在2024年才開始，由一位同仁大致負責推動這個計畫。到了2025年，我們讓計畫運轉得更上軌道一些。但我會說我們在這方面仍有機會，隨著看到2026年的成果以及延伸到2027年的成果，還會看到更多機會。

John, it's also a great question. I want to give you a little more context to that. It's a new department we started probably about two years ago, beginning of two years ago. And a slow start, just to be honest with you, we were able to deliver the caskets, urns, a couple of other things, but there's so much opportunity. And part of the challenge was that we're trying to change a lot of things operationally and system-wise at Carriage.

John，這也是個很好的問題。我想再提供你一些背景。這是一個我們大概在兩年前、約兩年前年初成立的新部門。坦白說，一開始進展較慢；我們能交付棺木、骨灰罈以及其他一些品項，但其實還有非常多的機會。而其中一個挑戰是，我們在Carriage正嘗試在營運與系統層面改變很多事情。

And at the time, as you may remember, it was really just from a senior leadership perspective, Steve and me driving those initiatives. And so this year, we have realigned with the changes we made and the promotions we made to allow for more focused work. So now supply chain actually reports to John, and John can place a more specific emphasis to supply chain and accelerate the journey on that side. At the same time, that Steve can put more focus on the operational side moving forward and continue to grow our organic strategy through M&A activity.

而在當時，如你可能記得的，從高階領導的角度來看，基本上就是Steve和我在推動這些倡議。因此今年，我們配合所做的變革與人事晉升進行了重新調整，以便能更聚焦地推進工作。所以現在供應鏈實際上向John匯報，而John可以對供應鏈投入更明確的重點並加速這段旅程。同時，Steve也能在未來把更多重心放在營運面，並透過併購（M&A）活動持續推進並擴大我們的有機成長策略。

Got it. Makes sense. One last question on the M&A. It seemed like last conference call that the expectation was there's going to be a lot of closure activity in the first quarter. Reading between the lines, it sounds like now that that's been extended maybe a little bit. Is that a function of multiples have gone up? Or is there something else that we should be aware of?

了解。有道理。最後一個關於併購（M&A）的問題。看起來在上次電話會議時，預期第一季會有很多結案（closure）活動。但從字裡行間讀起來，現在似乎延後了一點。這是因為估值倍數上升了嗎？還是有其他我們需要注意的因素？

Yeah, John, I don't think it's a product of multiples going up. I think we're seeing those remain pretty steady. And obviously, we remain disciplined in how we approach it. It really is a matter of sellers being ready and us respecting their time lines, but also us being pretty selective. So again, the type of business we're looking for, it's a smaller group of businesses that are going to fit that profile. So there's a number of folks out there, but their time line is just as important as ours.

是的，John，我不認為這是估值倍數上升所致。我認為我們看到倍數大致維持相當穩定。當然，我們在推進方式上仍然保持紀律。這主要是賣方是否準備就緒的問題；我們尊重他們的時間表，同時我們也相當挑選。再說一次，我們在找的那類標的，其實符合該輪廓的企業群體比較小。所以市場上確實有不少人，但他們的時間表和我們的一樣重要。

George Kelly, ROTH Capital Partners.

George Kelly，ROTH Capital Partners。

First one on your guide for 2026. There's a CapEx step-up versus what you've been doing in recent years. So I was wondering if that's related to a specific project or more maintenance related or just any kind of context around your CapEx guide.

第一個問題是關於你們2026年的指引。你們的資本支出（CapEx）相較近年有明顯上調。我想了解這是否與某個特定專案有關、或是偏維護性支出、或是其他原因；能否提供一些你們CapEx指引的背景？

Yeah. So over the last couple of years, as we've been very disciplined in our capital allocation, we've pulled back a little bit of maintenance. So there's going to be more maintenance in 2026 than there was in '25 and '24. And we're thoughtful on what we're going to do, but there's some just needed to be done. Also, there is still some additional growth capital, right? For us to continue to deliver 10% to 20% in preneed cemetery sales, we have to develop some cemeteries and there's also some incremental capital associated with that.

好的。過去幾年，因為我們在資本配置上非常有紀律，我們稍微縮減了一些維護性支出。因此，2026年的維護性支出會比2025年與2024年更多。我們會審慎評估要做哪些項目，但有些確實是必須要做的。另外，仍然會有一些額外的成長型資本支出，對吧？為了持續實現10%到20%的預售（preneed）墓園銷售成長，我們必須開發一些墓園，而這也會帶來一些增量資本投入。

And is that $25 million to $30 million -- I'm hearing feedback. But is that a good sort of go-forward number to use beyond '26? Or is this kind of a 1-year maintenance catch-up?

那麼，2,500萬到3,000萬美元——我這邊聽到一些回音。但2,500萬到3,000萬美元是否是2026年之後也可用的合理前瞻數字？還是這比較像是一年期的維護性支出補回？

Yeah. I would use -- I think I would use, yes, $25 million to $30 million is probably a good going-forward number.

是的。我會採用——我想是的，2,500萬到3,000萬美元大概是未來可延續使用的一個不錯的數字。

Yeah, George, if you remember, even you go back to '20, '21, '22, we're doing $22 million, $24 million, $26 million of just maintenance and growth CapEx at the time. And we did ask our managing partners to give us an opportunity to use some of that so we can pay down our debt. And they did, they were very patient for a little over three years. And now it is really time to give back to them some of that. And I think the $25 million to $30 million is really the right range going forward.

是的，George，如果你記得的話，即便回到2020、2021、2022年，當時我們僅維護與成長型CapEx就做了2,200萬、2,400萬、2,600萬美元。而我們也曾請我們的管理合夥人給我們一些空間，讓我們能把其中一部分拿去償還債務。他們也同意了，並且非常有耐心地支持了超過三年。而現在確實到了該回饋他們一部分的時候。我認為2,500萬到3,000萬美元確實是未來合理的區間。

Okay. Sounds good. And then just a couple of other ones for you. On Trinity, can you walk through the expectations for the year, the rollout testing, what you're most excited about? Just an update on that front would be helpful.

好的。聽起來不錯。接著還有幾個問題。關於Trinity，你能否說明一下今年的預期、推廣（rollout）測試的進度、以及你最期待的部分？如果能就這方面提供更新會很有幫助。

Yeah. So from a rollout perspective, we still anticipate a rollout in the, call it, second quarter. So right now, we're still in pilot phase. So we have a location in pilot phase. We're looking to move to a pilot phase for a second location shortly. And if successful, we expect to roll out our funeral homes into basically the beginning of the third quarter, ultimately maybe at the end of the fourth quarter. And then what we would do after that is the cemetery locations or the combos is really where we think the rollout. So there will be some rollout into 2027.

好的。就推廣（rollout）而言，我們仍預期在第二季左右進行推廣。目前我們仍處於試點（pilot）階段。我們有一個據點正在試點。我們也希望很快把第二個據點納入試點階段。若試點成功，我們預期會在第三季初把它推廣到我們的殯儀館（funeral homes），最終可能延伸到第四季末。之後我們會推進到墓園據點或殯葬墓園複合據點（combos），那才是我們認為真正的推廣重點所在。因此，部分推廣會延續到2027年。

And just to give you more context, George, the truth is that we are behind with Trinity. That's the bad news. The good news is Trinity became so much more robust in terms of system integrations, API connectivity, reporting capability, our ability to track loved ones and chain of custody, our ability to increase our sales average per contract based on inventory and core lines and things of that nature. So the excitement is very, very high.

George，為了讓你更有背景脈絡，事實是我們在 Trinity 的進度落後了。這是壞消息。好消息是，Trinity 在系統整合、API 連線能力、報表能力、我們追蹤摯愛親人與監管鏈（chain of custody）的能力，以及我們基於庫存與核心產品線等因素提升每份合約平均銷售額的能力等方面，都變得更強健、更完善。所以大家的興奮度非常、非常高。

The frustration is that we're a little behind in terms of time frames, but the solution has become a lot more robust with automation, AI and other components that initially were not part of the scope. So there is a lot of excitement. There is a lot of good energy going into 2026 because of all that Trinity means, which is they collectively -- so Trinity means all of the systems that basically tap into our ERP system.

令人挫折的是，我們在時程上稍微落後，但這個解決方案因為加入自動化、AI 與其他一開始不在範疇內的元件，而變得強健許多。所以確實有很多令人振奮的地方。因為 Trinity 所代表的一切，讓我們對 2026 年充滿期待、充滿正向能量；Trinity 的意思是它們共同——也就是 Trinity 代表所有基本上會串接到我們 ERP 系統的各個系統。

Okay. Maybe just one more on Trinity. Is there much of an uplift to the contract -- the average price per contract that's baked into your guide? And if not, Carlos, are you still based maybe on what you're seeing in the pilot or just generally, are you still optimistic that it can really drive a lot of pricing growth per contract?

好的。關於 Trinity 也許再問最後一個。你們的指引裡是否已經納入每份合約——也就是每份合約平均價格——會有明顯提升？如果沒有，Carlos，基於你們在試點看到的情況或一般觀察，你是否仍然樂觀認為它真的能帶動每份合約的價格大幅成長？

I'm still very optimistic that we can continue to grow our sales average revenue per contract. We have been able to achieve that and to absorb the cost and then pass on the cost to the consumer. However, it's a phased approach. And what I mean by that is, right now, we have -- thinking of more in manual presentation. We have offerings. We have materials that we present to the families that they can see.

我仍然非常樂觀，我們可以持續提升每份合約的平均銷售收入。我們一直能做到這點：吸收成本，然後再把成本轉嫁給消費者。不過，這會是分階段的做法。我的意思是，目前我們——更偏向以人工方式呈現。我們有產品方案。我們有提供給家屬看的資料與素材。

As Trinity rolls out, it will still be a combination of a manual process with the system process. And the phase that follows to that is integrating to a full digital experience to Trinity that embeds the presentation and the contract in the same moment. And so it will be a phased approach. Now that phased approach will not slow us down from the point of view of still presenting the full story with all of the options to all families regardless where they choose burial or cremation.

隨著 Trinity 推出，仍會是人工流程與系統流程的組合。接下來的階段是整合成完整的數位體驗，導入到 Trinity 中，讓簡報呈現與合約簽訂在同一個當下完成。因此會採取分階段推進。但從另一個角度來看，這種分階段並不會拖慢我們：我們仍會向所有家屬完整呈現所有選項與完整故事，不論他們選擇土葬或火化。

And then to answer the question on whether or not we factored in any increases in sales performance into the guide, we did not, right? So there is no expected impact of Trinity in 2026 guide.

至於你問到我們是否在指引中納入任何銷售表現提升的假設，我們沒有，對吧？所以在 2026 年指引中，並沒有預期 Trinity 會帶來任何影響。

Okay. And then last one for me is just about the M&A that's contemplated in your guide. How much do you factor in or how much do you expect to pay for those transactions? What's like the value? And where do you expect to end the year on a net leverage basis? And that's all I have.

好的。我最後一題是關於你們指引中所考量的併購（M&A）。你們對這些交易納入多少、或預期要支付多少？大概的價值是多少？以及你們預期年底在淨槓桿（net leverage）基礎上會落在什麼水準？我就這些。

Yeah. So again, from a multiple perspective, we're going to be disciplined. So it depends on the asset that we get because they're not all identified asset. But you can think about from an EBITDA multiple perspective, anywhere between 7 and 9 is probably a fair way to think about that. And from a debt leverage perspective, we expect to end the year based on hitting performance between 3.9 times and 4 times.

好的。所以再說一次，從倍數的角度，我們會保持紀律。這取決於我們拿到的資產，因為並不是所有資產都已經被明確鎖定。但你可以用 EBITDA 倍數來思考，大約落在 7 到 9 倍之間，可能是合理的區間。而從負債槓桿的角度，我們預期在達成營運表現的前提下，年底會落在 3.9 倍到 4 倍之間。

Parker Snure, Raymond James.

Parker Snure，Raymond James。

Just kind of drilling down on the first quarter, I know you mentioned it's a tough comp. Are you seeing any impact from the first quarter, the winter storms or just generally the poor weather that we're seeing across the country? I guess more so on the preneed side, is that affecting any sales activity? And then also just more broadly on the entire business?

我想更深入問一下第一季。我知道你提到比較基期很硬。你們是否看到第一季冬季風暴，或更廣泛來說全國各地不佳天候所帶來的任何影響？我想特別是在預售（preneed）端，這是否影響任何銷售活動？另外更廣泛地，對整體業務是否也有影響？

If I give you a little bit of -- well, first Parker, thanks for the question. But if I give you a little bit of an insight on January 2026 going into our full first quarter for the year, from a comp perspective on volume, we do see a decline because January of 2025 was so strong because of that push back of the flu season from December.

如果我先給你一點——嗯，首先 Parker，謝謝你的問題。但如果我給你一些對 2026 年 1 月、也就是進入我們全年第一季的觀察，從量的比較基期角度來看，我們確實看到下滑，因為 2025 年 1 月非常強，原因是流感季從 12 月延後所造成的遞延效應。

However, we're very pleased, as John mentioned, on our performance because our continued cemetery performance made up and then some of that plus our sales average per contract continues to remain very strong. Our ability to convert direct cremation to cremation, it's an area of focus for us. Cremation mix continues to be within our range and is not growing at any fast rate as we have seen in some other consolidators out there. And so it's really exciting that even with a bad comp from a plugging perspective, we still have very positive results as a financial -- from a financial perspective overall in January of 2026.

不過，我們對表現非常滿意，正如 John 提到的，因為我們持續的墓園（cemetery）表現不但彌補了這部分，甚至還超過；同時我們每份合約的平均銷售額仍然非常強勁。我們把「直接火化」轉換為「火化（含服務）」的能力，是我們的重點領域。火化組合（cremation mix）仍在我們的區間內，且並未像我們在其他一些整合商（consolidators）那裡看到的那樣快速上升。因此很令人振奮的是，即使從量的比較基期角度來看不利，我們在 2026 年 1 月整體財務表現仍然非常正面。

Okay. Okay. And then I guess just more of a bigger picture question. I like the comments you said you're moving out of the rebuilding phase into the compounding phase. And Carlos, you've undertaken a fair amount of strategic changes since taking the seat. I guess what is the next strategic frontier in your view for the business? What's the next initiative? And maybe there isn't one, maybe it's just executing on kind of the good work that you guys have done so far, but maybe just kind of speak high level on just kind of your views on the forward-looking kind of strategic initiatives for the business.

好的。好的。接著我想問一個更宏觀的問題。我很喜歡你提到你們正從重建階段走向複利成長階段。Carlos，自從你上任以來推動了相當多的策略性變革。我想問你認為公司下一個策略前沿是什麼？下一個倡議是什麼？也許沒有，也許只是把你們目前做得很好的事情持續落地執行；但能否從高層次談談你對公司未來策略性倡議的看法？

That's a great question. So not wrong, there's been a lot of work, whether it is continuous improvement strategies and departments that are now meeting and guiding our decisions at Carriage. Our framework for decision-making within our three strategic objectives, all the focus on margin expansion to our supply chain strategy. And of course, all the different changes we have made over the last probably three years with leadership. We have now a new structure within executive rank.

這是個很好的問題。所以你說得沒錯，我們做了很多工作，不論是持續改善策略，以及現在各部門會定期開會並引導我們在 Carriage 的決策。我們在三大策略目標下的決策框架、對毛利擴張的聚焦、到我們的供應鏈策略。當然，還有過去大概三年在領導團隊方面做的各種調整。我們現在在高階主管層級也有了新的組織架構。

And so for us right now, it's really to capitalize, maximize and really optimize all those changes we have made. I don't really have more changes that I have in my head other than deliver Trinity and really maximize and optimize the field engagement and opportunity to increase our opportunity with families through that solution to help and support Steve on the operational side and continue to grow sales at our 10% to 20% year over year preneed production rate. But most -- and most important, our main focus now other than optimizing what we have done over the last few years is really our focus on M&A.

因此對我們而言，現在最重要的是把這些變革的效益資本化、最大化，並真正把我們已做的所有改變最佳化。除了交付 Trinity、並真正最大化與最佳化前線團隊的參與度與機會，透過該解決方案提升我們與家屬互動的機會、協助並支持 Steve 在營運端，以及持續以每年 10% 到 20% 的預售（preneed）產出成長率來推動銷售之外，我腦中其實沒有更多其他變革。但最——也是最重要的，除了把過去幾年做的事情最佳化之外，我們現在的主要焦點其實是併購（M&A）。

Okay. Yes. And just maybe just -- I know this question has been asked kind of a few times in a different way, but just broadly on capital allocation priorities. You expect to do $40 million to $50 million of free cash flow this year. There are some deals that are built into the 2026 guidance, more focused on growth.

好的。是的。另外也許——我知道這個問題已經用不同方式問過好幾次了，但就更宏觀的資本配置優先順序而言。你們預期今年將產生4,000萬至5,000萬美元的自由現金流。有一些交易已納入2026年的指引中，且更偏向成長。

Your leverage is around 4 times. I think you kind of want to keep it in that range. But just how should we think more broadly about the split of how you're going to spend your free cash flow going forward? Are we kind of -- is it going to be kind of 50-50, more levered towards M&A? And just how do you think broadly about that whole kind of dynamic moving forward?

你們的槓桿大約是4倍。我想你們大概希望維持在這個區間。但我們應該如何更宏觀地看待你們未來將如何分配自由現金流的支出？我們是否可以理解為——會是大約50/50，或是更偏向併購（M&A）？以及你們如何從整體上看待未來這種動態？

We want to take an opportunistic view of the deals as they come, right? And so we have our plan. We have an idea of how that could be structured from a guidance perspective, and John did mention some of the ranges there. But they have flexibility, right? And so for example, if you have a deal, let's just say another Fairfax comes through and we may be willing to pay a little more multiple for something like that. And then we will have to move some of the flexibility we have within our balance sheet to decide if that's the right deal to do or not.

我們希望以機會主義的角度來看待交易出現的時機，對吧？因此我們有我們的計畫。我們也知道從指引角度來看，可能會如何架構，John也提到了一些區間。但它們是有彈性的，對吧？例如，如果有一筆交易——假設又出現另一個Fairfax，我們可能願意為這類標的支付稍高一些的倍數。然後我們就必須運用資產負債表內的彈性來調整，判斷這是否是一筆值得做的交易。

If the stock were to -- for some black swan event, we would consider that and put our numbers and make the best decision on behalf of the shareholders. We will look at all of the opportunities as they come from a very opportunistic point of view within our disciplined capital allocation framework. Does that make sense?

如果股價——因為某個黑天鵝事件而出現變化，我們也會把這納入考量，並根據數據做出對股東最有利的決策。我們會在嚴謹的資本配置框架下，以非常機會主義的角度來看待所有出現的機會。這樣說有道理嗎？

Yeah, I absolutely understood.

有，我完全理解。

John Franzreb, Sidoti & Company.

John Franzreb，Sidoti & Company。

Yeah. I'm actually a little curious about the $1.2 million of medical insurance cost that you incurred in the quarter. How unusual is that on a year to year basis? I mean, was the full year number much bigger than that? Or just contextualize it for us maybe?

是的。我其實對你們本季發生的120萬美元醫療保險成本有點好奇。以年度來看，這有多不尋常？我的意思是，全年數字是否遠高於此？或是能否幫我們提供一些背景脈絡？

Yeah. So I can speak to the actual activity, and I've only been here a year. But we've done a really nice job from an employee benefits perspective over the last few years. There's -- being a smaller company, there's a large claim that happened. When you have large claimants that happen, ultimately, that can impact results. We haven't had a significant claim over the last few years. So I would say that was a, call it a one-off in the last couple of years.

好的。我可以談談實際發生的情況，我也才來這裡一年。但過去幾年我們在員工福利方面做得非常好。由於我們公司規模較小，這次發生了一筆大型理賠。當出現大型理賠人時，最終確實可能影響業績。過去幾年我們沒有出現重大的理賠。所以我會說，這算是過去一兩年中的一次性事件。

The activity associated with December results versus the December of the last two years, I can't really speak to why that happened, but it was just -- I mean it can happen. So I would say we have planned for it in the guide, we have planned for what we believe is the appropriate expense associated with employee benefits, taking into consideration what happened in 2025.

至於12月的結果相較於前兩年的12月，為什麼會發生我也說不上來，但就是——我的意思是，這種事確實可能發生。所以我會說，我們已在指引中納入規劃，並在考量2025年發生的情況後，規劃了我們認為適當的員工福利相關費用。

Yeah. We typically look at three years to figure it out what the right reserve should be for claims and things like that. And we are a self-insured company from our point of view, right? And so we also have a tremendous focus on health benefits for the employees. We have a tremendous focus on making sure that all of our employees are active, are keeping their numbers within the range and helping in any way we can to drive that health performance of the company overall.

是的。我們通常會看三年的資料來判斷理賠等項目的適當準備金應該是多少。而且從我們的角度來看，我們是一家自保公司，對吧？因此我們也非常重視員工的健康福利。我們非常重視確保所有員工保持活躍、把各項數值維持在合理範圍內，並盡我們所能協助推動公司整體的健康表現。

But sometimes, even we haven't seen it in a long time, you get an event. In this case, it was one major event and then maybe a couple of other events that add up to that number that you cannot really expect. It just happened. These are major things, right? I can't really disclose much, but you have hard events, rain situation events, and we just have to be responsive to the employee when those happen.

但有時候，即使很久沒遇到，你還是會碰上一個事件。這次是一個重大事件，然後可能還有幾個其他事件加總起來形成你看到的那個數字，而這些其實很難預期。它就是發生了。這些都是重大事件，對吧？我無法透露太多，但你會遇到一些嚴重事件、突發狀況之類的，我們只能在發生時對員工做出即時回應。

Got it. I just appreciate the clarity and how -- and the frequency of it all. That's what I was kind of looking for.

了解。我很感謝你說得這麼清楚，以及——發生頻率等資訊。這就是我想了解的。

George Kelly, ROTH Capital Partners.

George Kelly，ROTH Capital Partners。

Just a quick one. How much EBITDA contribution from your -- the 2026 M&A is baked into your guide?

我快速問一個。你們——2026年的併購（M&A）在指引中已納入多少EBITDA貢獻？

So we basically -- in the '26 guide, so are you asking about the new acquisition, the $5 million to $10 million?

所以我們基本上——在2026年的指引裡，你是在問新的收購，也就是那5百萬到1千萬美元的部分嗎？

Correct.

沒錯。

Yeah. So we basically have them at the average margin, roughly, call it, 30%.

是的。所以我們基本上是以大約平均的利潤率來估算，約略來說，大概是30%。

It appears there are no further questions at this time. I'd like to turn the conference back over to Carlos for any additional or closing remarks.

看起來目前沒有其他問題。我想把電話會議交回給Carlos，請他做任何補充或結語。

Thank you, operator, and thank you for your trust, your partnership and your continued belief in Carriage. We are building a disciplined high-performance company with a clear purpose, a focused strategy and the intention to execute with excellence. We look forward to updating you next quarter as we continue creating long-term value for our shareholders, our teams and the families we serve. Have a great day.

謝謝主持人，也感謝各位對Carriage的信任、合作夥伴關係，以及持續的支持與信念。我們正在打造一家自律的高績效公司，具備清晰的使命、聚焦的策略，並以卓越執行為目標。我們期待在下個季度向各位更新進展，並持續為股東、團隊以及我們服務的家庭創造長期價值。祝各位有美好的一天。

This concludes today's call. Thank you again for your participation. You may now disconnect, and have a great day.y

今天的電話會議到此結束。再次感謝各位的參與。您現在可以掛線，祝您有美好的一天。y