During June 2008 the Board of Directors approved the repurchase of up to an aggregate of $5 million of the Company's common stock. The repurchases were executed in the open market and through privately negotiated transactions. Through September 30, 2008, the Company repurchased 854,700 shares of common stock at an aggregate cost of $3,381,631 and an average cost per share of $3.93. During October 2008 Carriage completed its $5.0 million repurchase program by acquiring an additional 492,769 shares for a total of 1,347,469 shares of common stock and an average cost per share of $3.68.
Total overhead increased $0.3 million to $5.8 million as the Company experienced an increase in legal costs and termination costs in the quarter of $0.2 million each.
Carriage experienced negative free cash flow (defined as cash flow from
continuing operations less maintenance capital expenditures) of $1.0
million during the third quarter of 2008 compared to negative free cash
flow of $3.3 million during the same period in 2007. In addition to being
seasonally the lowest quarter for deaths, the semiannual interest payments
on the Senior debt of $5.1 million are payable in the third quarter. The
elements of Cash Flow for the first nine months of 2008 consisted of the
following (in millions):
Cash flow from continuing operations $12.1
Cash used for maintenance capital expenditures (4.6)
Free Cash Flow for first nine months of 2008 7.5
Cash and liquid investments at beginning of year 3.4
Cash flow from discontinued operations 0.2
Proceeds from sales of businesses 1.0
Cash used for growth capital expenditures - funeral homes (2.4)
Cash used for growth capital expenditures - cemeteries (2.6)
Financing activities, primarily share repurchases
|SOURCE Carriage Services, Inc.|
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