I read a lot of different articles.  Recently I read an article about investing that contrasted “Dividend Investing” and “Growth Investing”.  The article was very interesting but it also made me think about my time as a funeral home owner and how I managed the profits, or cash-flow, of the business.

In reading the article one point was expressed that many times public companies pay dividends because paying out that money to investors was done in lieu of searching for growth opportunities for the company.  The article actually said, “Dividends are many times paid out with the cash-flow because the company sees no growth opportunities”.

One glance at the cash-flow and large dividends paid by the public tobacco companies brings that thought to reality.

So, if you are an individual proprietor of a funeral home you actually have the same choice.  Do you use your cash-flow proceeds and look for a growth opportunity such as buying another funeral home or expanding your existing funeral home or do you simply “take the dividend” and give yourself more cash at the time?

We are all different, but over the long-run, it might make a great deal of difference on the situation you find yourself in when you decide you want to retire and sell your funeral business.

Let’s say that you have a very stable 150 call funeral home.  Do you continue to take the very stable income out of the business annually and put it into your personal holdings or do you take some risk and expand the present situation hoping you can grow into a 300 or 400 call business?

There is no right or wrong answer and part of the answer comes in the question if the money you take out for yourself is put into consumables and enjoyment (buying cars, boats, vacations, etc) or into investments (stocks, land, collectibles, etc).  And, if you choose to “make investments”. . . . . is it better, or more profitable in the long run, to invest in your business or in the public investment markets?

Tom Anderson
Funeral Director Daily

It’s an interesting question.  When I was operating my business I don’t think that I really thought about it too much.  However, I’m one who always felt that my long-term “Security” was in the assets of my business.  And, I’m also one who has a strong sense of “Security” and a weaker sense of “Adventure” so I judiciously made investments in the growth of our funeral business simply because that is where my comfort level was.

I never made the big splash investment but periodically made what I call incremental investments in the business — remodeling buildings, building new buildings, putting in a crematory, starting a preneed agency, and making an acquisition.  Those investments in our firm, and the growth of my community, eventually led me to operating that 300 to 400 call firm that was highly coveted by regional and national operators.

My choices seem to be validated in this recent study from Houlihan and Lokey whereby they make note that private companies have higher revenue and EBITDA growth rates than do companies in the public sector S&P 500.  Here’s what Houlihan and Lokey say, “Private companies in the Private Performing Credit Index (PPCI) reported revenue growth of 12.3% and adjusted EBITDA growth of 14.4% for the quarter ended June 30, 2025, compared to the same quarter in 2024. This marks the eighth consecutive quarter where these companies’ revenue growth exceeded that of the S&P 500 benchmark. This performance highlights the private sector’s consistent ability to achieve robust growth in both revenue and profitability.”

When it comes to Margins, the study makes this statement, “. . .public companies exhibited narrower but more consistent margins than their private counterparts within the PPCI. . . . Currently, the average margin for public companies stands at 19.9%, while private companies maintain an average margin of 24.5%. These figures remain consistent with historical averages.”

So, everybody is different and everybody has different levels of tolerance, but it seems to appear that one may be able to have a larger sum at retirement by growth of their own private business than by simply investing in the S&P 500.

Of course there are a million variables and diversity of investments is usually a smart decision as well.  My take on this subject for funeral home owners is to “know your situation” and seek advice from seasoned professionals when making these investment type decisions.

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Pension funds and endowments have the responsibility of shepherding for safety, growth, and income their assets into a multitude of investments.  I’ve learned that most of those types of investors invest in bonds and private debt for income and stocks for short-term growth.  Some will invest up to 5% of the assets into new ventures hoping to make a better than average return on those funds while realizing that there is risk involved also.

But I’ve also learned that pension funds and endowments invest a very large percentage of their assets into what I would call “slow-growth” infrastructure that is not real liquid.  Much of this type of investment is in commercial real estate, agricultural land, cell phone towers, storage facilities, and energy production infrastructure.

While stocks and bonds of funeral service companies have been bought and sold as investments for pension and endowment funds, I’m not sure if any pension fund or endowment fund has invested in what one might call “an infrastructure investment” in Death Care.  If so, I’m trying to think of what that infrastructure would have been  — maybe a cemetery?

I think that is what makes the recent acquisition by British pension fund manager Railpin of Horizon Ceremonies Limited unusual and an interesting play on the long-term cremation and ceremony outlook.  According to this article, Railpin recently purchased Horizon, which is described as a United Kingdom-based operator and developer of crematoria from private equity company Maven Capital Partners.

Horizon operates three crematoria in Great Britain with what is described as “a strong pipeline of greenfield development sites in underserved areas across the UK, aligning with its mission to improve the experience and accessibility of cremation services nationwide”.

According to the linked article, “The business operates a B2B model, providing cremation services to funeral directors and direct cremation specialists, ensuring flexibility and choice for communities during the most sensitive times.” 

The United Kingdom historical cremation model —  What is different with cremation in the United Kingdom as compared to the United States is that crematories have traditionally been owned and operated by municipalities and not funeral directors in the UK.  Consumers would arrange their loved one’s funeral through the funeral director but then go to the municipal crematory for a service and cremation.

In essence, the crematories are owned and operated by the municipality and consumers are charged for the crematory services by funeral directors much like “cash advances” are charged for items in the United States.

Railpin is counting on the ability to build new crematoriums through private enterprise to compete with many of the aging cremation infrastructure of municipalities.   They are also counting on the increased use of Direct Cremation to build the numbers of cremation higher and higher.

Here’s what Tim Grimstone, Investment Manager at Railpin said about the Horizon investment:

“Our investment in Horizon is directly aligned with Railpen’s purpose of securing the future for our members by delivering strong, diversified investment returns while having a positive impact on the communities in which we invest. The UK is facing a clear demographic need for new, high-quality crematoria, and Horizon’s award-winning track record and commitment to sensitive, well-designed facilities positions them to meet that demand. By backing Horizon’s growth, we are investing in critical social infrastructure that will provide sustainable income streams to support our members’ pensions.” 

Related — For an idea of a British Crematorium here is a 1-minute video tour of Pure Cremation’s original facility

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  I find this development extremely interesting to our profession.  To me, I see a private company investing in “Death Care” to build-out and take-over municipal infrastructure in Great Britain.  Quite frankly, it looks like a long-term goal of Horizon, under Railpin’s ownership, is to move ceremony and cremations in Great Britain from a municipal facility to a facility that is owned by private concerns.

And, I would also add that in most instances a private company will be able to operate a more efficient and consumer friendly business than a municipality can. If they succeed in replacing municipal crematories, Horizon will bring great value to this infrastructure and Railpin pensioners.

Quite frankly, it is very much like Pure Cremation did when building their own crematory and ceremony facility to serve the London area. . . .and, if selling for $400 million dollars 10 years later is considered successful, then Pure Cremation was very successful.

What about this happening in the United States:  The crematory system is fundamentally different in the United States than it is in Great Britain which would make this type of investment questionable in the U.S.  The U.S. already has independently owned business crematories so there is no municipality crematories to replace and operate in a more efficient manner.

However, what I think is interesting is thinking about “Death Care” not in an operational business vernacular but in an “infrastructure” vernacular.  We will always have deaths and we will always need infrastructure to care for deaths.

Thinking of parts of the business as “infrastructure” rather than “business operations” may allow much more well-heeled financing into the Death Care business.  For instance, would a real estate investment trust consider building the infrastructure out for a group of “Celebration Centers” across a region or the country to be managed by an operating company?  The “Celebration Centers” could be chosen by families for celebrations, services, lunches, visitations, and the like.

Or, would that same type of real estate investment trust be interested in building out new and modern facilities for an existing funeral home operator on a lease-back type of arrangement?  I think that is possible too.

Pension funds and endowment funds would not be so focused on the annual return as they would the long-term real estate appreciation in value over time.  And, in my book, that brings a lot more potential investors to the plate in Death Care who would look for their returns in a patient fashion.

Learning about Pensions and Endowments:  When I served on the University of Minnesota Board I learned much about pension and endowment investing.  Most people don’t even realize it, but at the U of M and many other colleges, we had an Office of Investment and Banking  (OIB) — you can get a description of the U of Minnesota’s office here. 

The OIB was tasked with operating everything from our own insurance company to the endowment fund to retirement plans.  I chaired the Debt Management portion for four years and learned much about the world of big finance.  One of the things I loved to do in that position was talk, in general terms, of the investment world with our Chief Investment Officer.  Sometimes it was just fascinating to see where our money was invested. . . . . Oh, and it was public money so from time to time we had to have the discussions about fossil fuels and ESG investing (Environmental, Social, and Governmental) options.. . . .All in all, it was a great learning experience for this small-town funeral home operator.

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Foundation Partners Group Launches Next Chapter with New Investment, New Ownership and Bold Plan for Growth

WINTER PARK, Fla. (August 4, 2025) – Foundation Partners Group, the second-largest funeral home provider in the U.S., today announced a transformational milestone in its growth journey, including new ownership, increased investment in its people and facilities, and a strategic reorganization to strengthen field operations and support care teams.

“These changes are bold by design,” said John D. Smith, CEO of Foundation Partners Group. “They reflect our commitment to operational excellence, a people-first culture, and a unified organization focused on growth and delivering exceptional care to families.”

A Stronger Foundation with Institutional Investors

The company is now backed by institutional investors who share its vision and commitment to the future of funeral care. These investors have committed fresh growth capital—effectively recapitalizing the business with modest leverage and strong liquidity.

“This is a vote of confidence in our team, our strategy and our future,” Smith said. “Our investors believe in what we’re building—and their investment gives us financial flexibility to grow, improve facilities and invest in our people.”

A new Board of Directors will be announced in the coming weeks.

Organizational Realignment to Empower the Field

To better support the 250+ funeral homes, cremation centers, and cemeteries across 21 states, Foundation Partners is realigning leadership and operations:

• Execution resources are moving from the Support Center to the field.
• ‘Centers of Excellence’ are being built within the Support Center to enable field success, and more effectively serve families.
• Data, analytics and technology are being elevated to drive smarter, faster decision-making and growth.

“As part of this shift, some leaders are transitioning out, and others are stepping into expanded roles,” Smith said. “We thank all those moving on for their contributions and are excited about the next generation of leadership driving performance where it matters most—in service to families.”

Investment in People, Facilities and Service

Smith emphasized that Foundation Partners is entering a new phase focused on organic growth, team development and modernizing infrastructure:

• Facility upgrades and transportation fleet improvements are underway.
• Care centers are being enhanced to improve workflow, and elevate service and consistency.
• Investments in training and tools will enable team members to serve with greater pride and effectiveness.

“After years of growth through acquisition, we are now building a high-performing operating company driven by shared values, empowered people and consistent standards of care,” Smith said. “The future is bright—and it starts with our people.”

About Foundation Partners Group 

Winter Park, Florida-based Foundation Partners Group is one of the industry’s most innovative providers of funeral services and the second-largest funeral home group in the country based on the number of families served. Foundation Partners owns and operates a network of over 250 funeral homes, cremation centers and cemeteries across 21 states. Our deep understanding of technology and customer experience-centered approach allows us to deliver truly innovative and compassionate care to the families we serve. Visit https://foundationpartners.com/ to learn more. 

Directors Investment Group Earns Great Place to Work Certification™ for Fourth Consecutive Year

ABILENE, TX — Directors Investment Group (DIG), parent company to Funeral Directors Life, Passare,
Claimcheck, and other subsidiaries, has spent the better part of four decades building a unique culture.
After undergoing a rigorous and extensive certification process, DIG is proud to announce that it has
been recertified as a “Great Place To Work” through May 2026!

“To be recognized as a great workplace for the fourth consecutive year is an honor and a testament to
the culture we’ve intentionally built over the years,” said Kris Seale, DIG President & CEO. “This
achievement isn’t just about having amazing programs or benefits; it’s about our people. We extend our
gratitude to Great Place To Work® for this recognition!”

This prestigious recognition is based on a comprehensive write-up and current employees’ experience
working at DIG. To acquire recertification, DIG’s employees completed an anonymous survey ranking the
company’s culture, leadership, benefits, and other factors. The survey feedback and Great Place To
Work’s extensive data-driven methodology revealed that 96% of employees said DIG is a great place to
work, compared to 57% at an average U.S.-based company.

For the past eight years, DIG has also been named on Fortune’s Best Workplaces in Texas™ list.
Additionally, DIG has received recognition on Fortune’s Best Medium Workplaces™ list and its Best
Workplaces in Financial Services & Insurance™ list.

“Our team shows up every day with purpose, passion, and a commitment to serve our clients,
community, and each other,” Seale continued. “To quote Nehemiah 6:3, we believe that ‘we’re doing a
great work, and we cannot come down.’ That shared mission is what makes DIG truly special.”
To learn more about DIG, visit dig.family or view our Great Place To Work® profile.

About DIG

At Directors Investment Group (parent company to Funeral Directors Life, Passare, Claimcheck, and
other subsidiaries), our mission is to be known as “the best, most-respected provider of service to our
industries.” We serve funeral homes nationwide, offering various services to clients, including sales
programs, training, technology, marketing, and financial services. To apply online, visit us at dig.family.

About Great Place To Work®

As the global authority on workplace culture, Great Place To Work brings 30 years of groundbreaking
research and data to help every place become a great place to work for all. Their proprietary platform
and For All™ Model help companies evaluate the experience of every employee, with exemplary
workplaces becoming Great Place To Work Certified or receiving recognition on a coveted Best
Workplaces™ List.

We didn’t quite make it through the week without being able to give you another article which again shows a “bullishness” in the greater Death Care profession and industry.  As I’ve noticed several times recently, at the same time that many Death Care retail operators are “skittish” about the future of their business it seems that the more global professional money managers who direct the investments of private investors are continuing to be bullish in the profession. . . if their investments in Death Care are any indication.

Just this week we received this press release which lets us know that Serent Capital has made an investment in Death Care company Plotbox.  Acording to the press release, “PlotBox is the innovative cloud-based deathcare management solution that helps cemeteries, crematories and funeral homes to excel. The intuitive, easy-to-use platform seamlessly places all essential deathcare management functions into one place. This enables customers to serve better, save time, increase revenue, reduce risk – and sustain long-term growth. The 120-strong company is headquartered in Northern Ireland, with on-the-ground teams in the United States and Australia”.

Sean McAllister, CEO of PlotBox had this to say in his remarks that appeared in the press release, ” . . . We wanted a partner whose values aligned with our own, helping to support our mission to help take away some of the pain in dealing with death for families and those that serve them. We’re focused on bettering the industry by raising standards within the profession and this partnership will help us to realize that.”

Lance Fenton, a Partner at Serent Capital had this to say in prepared remarks, “PlotBox has established itself as the premier platform in the deathcare market, offering a comprehensive and highly differentiated product.  We are thrilled to support their vision and help drive the company’s growth across the entirety of the deathcare industry.”

Here is the Serent Capital website that includes their press release.

Here is the PlotBox website that includes their press release.

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  It was somewhat tongue-in-cheek that I mentioned we could not get through the week without another investment in Death Care by private equity. That seems to be happening more and more bringing big business into what for a century has been small independent operators.

And while I understand change is hard for many — especially home town funeral directors who have “lived the life” of taking care of their community.  The fact that private equity is continuing to invest in Death Care should let us know that we have built a valuable commodity with our businesses.

Private equity is a reality all around the greater Death Care community at this time.  There is no doubt that the money they bring to the table will change the “business”.  However, the simple fact that they are investing in the industry/profession should tell us that our businesses may be more valuable, or have better growth potential, than we realize.

Many regional consolidators are financed with private equity capital which possibly allows owners to exit their business with higher values than might be available if those consolidators were not, at least sometimes, competing for the purchase.  And, it is not just funeral homes that are gaining value from these sales but the new technological businesses that are being formed to help the retail Death Care market —  some firms that you might do business with such as MJK Marketing, Frazer Consultants, SRS Computing, Tukios, Legacy.com and more on the periphery of funeral service are, or at one time, were part of private equity investors.

I think it is important to understand that some of us in the family funeral home business that are worrying about our revenue per service moving downward and see only a negative spiral for funeral service have a completey different outlook on our business than some in the professional financial markets do.  Only time will tell who is seeing it right.

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When an investment is made in a business venture the investor has high hopes for a multiple return on their investment.  That can certainly be said for private equity companies who make some of those investments.

Unlike individual investors where passion may fuel the investment, most private equity investments are done with a large amount of due diligence put into the venture before the investment is consummated.  Because of that in-depth research, many private equity investments turn out to be wise decisions.

That is why I think the recent investment of 3 Boomerang Capital into human disposition alkaline hydrolysis company Bio-Response Solutions is very interesting . .  and potentially lucrative.  You can see a press release on that investment here.

Alkaline hydrolysis is now legal in over half of the United States.  See a map of those states here.

Here is the 3 Boomerang Capital website

Here is the website for Bio-Response Solutions

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  Even though human disposition via alkaline hydroysis is legal in over half of the states of the United States.  My thought is that it has not caught on among consumers as I thought it would by now.  I believe a part of the “why” of that situation is that the American consumer is not fully aware of it as funeral homes and other facilities with “flame cremation” equipment are interested in using that equipment rather than invest in the equipment necessary to operate an alkaline hydrolysis operation.

Another part of the “why” is that of the Catholic Church’s stand against it.  You can read about that in this article from Aleteia.

It is also a reminder that “flame” cremation did not catch on in America until 1963 when the Vatican’s Holy Office approved the process.  You can read about that here in this Catholic cremation timeline furnished by Better Place Forests.  At that time cremation was the choice of only about 4% of United States dispositions.

Related — Cremation in America 2001-2013 (with inter-active map).  Slate

My guess is that we are going to hear more about alkaline hydrolysis in the future and it could very well be that those who invest in the process now may reap the benefits.

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Prelude’s website makes this statement “We created the world’s best in-person selling software that anyone in your funeral home can use to close in just one meeting”.

One year ago on March 8, 2024, Funeral Director Daily published our first article on the company.  That article, that you can read here, was titled, “Will Prelude be the product?”

I didn’t know much about the company or the product at that time, but in the time since I see that they are still moving forward.  The company landed an investment from Cortado Ventures of Oklahoma City and now, according to this press release, has landed another investor in Hurricane Ventures out of Tulsa, Oklahoma. . . . It should be noted that Prelude is an Oklahoma-based company.

Tom Anderson
Funeral Director Daily

In the last year I’ve also got to take a “test-ride” of their product acting as a consumer with their digital platform.  Quite frankly, I found the experience, which must use artificial intelligence (AI), to be pretty simple and easily understandable in guiding me through an arrangement conference to pricing and preneed financing.

I was at the point that I said to myself, “This is something the common consumer could use”.

Like a lot of products in the developing stages I’m sure that there will be enhancements moving forward, but the experience that I had with my Prelude test-drive has convinced me that computer arrangements and pre-arrangements will be the choice for a certain percentage of consumers in Death Care’s future.

To learn more about Prelude you can access their website here.

To learn more about Hurricane Ventures you can access their website here.

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I learned long ago that there is no such thing as a free lunch and there is no such thing as a safe investment.  However, sometimes you can get pretty close to a free lunch (all you gave is time) as an attendee at a post-funeral lunch and pretty close with Treasury Bills backed by the full faith and credit of the United States government as well as certain savings accounts under $250,000 that fall under the Federal Deposit Insurance Corporation (FDIC) guarantee.

However, with most everything else it’s “Caveat Emptor” or “let the buyer beware”.

It’s with that preface that I tell you of an investment in debt held by the largest funeral home and cemetery operator in North America, Service Corporation International (SCI), that will mature in 2032.  That investment, what SCI calls their “Senior Notes Due 2032” pays a listed 5.75% interest payment on increments of a $1,000 bond that is currently (January 6, 2024) selling below par at $974.4 per $1,000 unit resulting in an effective yield of 5.9%.

SCI put these bonds on the market back in September 2024 and you can read about them here from a press release that SCI issued at that time.

Tom Anderson
Funeral Director Daily

Funeral Director Daily:  I bring this up today not to try and sell bonds for Service Corporation International, but rather as a way to look at the overall creditworthiness of the Death Care industry and profession.  Those bonds have been given a credit rating of “BB” by Standard & Poor’s rating services.

What I find interesting is that there are very few people in our profession who don’t think that SCI will be a going and viable enterprise seven years from now when that bond principal becomes due to be paid back to those that invested in those bonds.  Yet, they are rated “BB” by Standard & Poor’s. . . In my opinion that shows how difficult it is to be rated in the “A and above categories”.

When you look at SCI, according to E-Trade financial website, the company did $4.1 billion in business in 2023 and that amount produced a “Net Income” of $537 million.  If you do the math on those numbers that equates to 13 cents out of every dollar spent with SCI as moving down to the “Net Income” line. . . . Yet, the credit companies, and I agree there is a lot that goes into that rating, don’t give them an “A” rating.

Again, I just think that this points out how difficult it is to recieve and secure an “A and above” rating from the corporate credit agencies.

Here is an article from Standard and Poor’s dated September 12, 2024 titled “Service Corporation International’s $800 million Senior Unsecured Notes Rated “BB”

Investments are a decision of “Options and Risks” —  On the same day (January 6, 2024) that I looked at the par value of the SCI bonds I also looked at E-Trade’s listing of 5-year Certificates of Deposits (CD’s) which, when purchased in a unit of under $250,000 have the FDIC insurance benefit to individual investors.  The top interest rate that I found was 4.7% from JP Morgan Chase for a CD that matured on January 16, 2030.

So, a purchaser has the option of choosing that 4.7% rate in a virtually guaranteed investment as compared to the 5.9% rate from the SCI bond which has some level of risk.  What would be your choice?

My time in Debt Management —  When I served on the Board of Regents for the University of Minnesota I chaired what was called the Debt Management Committee for 4 years.  It’s where all the debt for the University was watched and our committee made suggestions to the full Board of Regents about potential uses of credit.

The committee was ad hoc and I was blessed to have financial and revenue experts from two large urban counties, the CFO of the University of Minnesota, the Dean of the University’s Carlson School of Business, and a retired CFO from a Fortune 100 company on this ad hoc board to advise me during this time.  I learned an extreme amount of information and details about the public credit markets from this position and, at least in my opinion, we were able to selectively and judiciously use the University’s S&P Credit Rating of “AA” to our advantage in building University assets for the future.

Disclosure — This article from Funeral Director Daily is not intended as an investment advice article.  It is meant to be an article on how the ratings companies may look at the Death Care, funeral, cemetery, and related businesses in the overall scheme of creditworthiness.

Disclosure — The author of this article from Funeral Director Daily is a shareholder in Service Corporation International (SCI).

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If you are an investor in the public stock markets — and most people are now with the advent of IRA’s and 401k plans — you would more than likely be pleased with the growth of your investment had you simply followed an investment strategy of investing in the index of stock market holdings in the Dow 30, the NASDAQ, and the S&P 500.

From the period of January 1, 2024, through the final trading day of the year, December 31, 2024, those market indexes grew by the following percentages:

• Dow 30:       +13.6&
• NASDAQ:    +32.3%
• S&P 500:     +25.2%

If you invested in equal shares of the four publicly traded companies that comprise the Funeral Director Daily Death Care Index (DCI) you would have ended up with a total stock appreciation return of 14.9% for the same time period.  That is down in the last month from December 2, 2024, when Funeral Director Daily published this article showing that at that time the return stood at 24.3% year to date.

However, like many public companies, December 2024 was not kind to the stock prices of Death Care stocks for what could be many reasons, including year-end profit taking.  As a matter of fact, all four companies that comprise the DCI ended 2024 with a lower stock price than they reflected on November 30, 2024.  Those four companies include Service Corporation International (SCI), Carriage Services, Matthews International, and Security National Financial Corporation.  The combined share price of one share of each of those companies stood at $172.38 on November 30, 2024, and had fell to $159.38 on December 31, 2024.

The good news however, is that they started 2024 at a combined price of $138.68 and ended the year at $159.38 — an increase of 14.9% on the year.

If you are wondering how those Death Care companies fared on an individual basis here is a chart:

Three of the four Death Care Index companies had price appreciation in their stock prices during 2024 with Carriage Services gaining a whopping 59.3% on the year.

Tom Anderson
Funeral Director Daily

Funeral Director Daily take:  When I talk to people about the “Death Care Industry” my perception is that most people are bullish about the profession and its movement forward. . . .especially with the fact that the number of deaths per year going forward is virtually guaranteed to rise because of the ageing of the American demographic.

However, balanced with that “positive trend” moving forward is the growing implication that many of the future deceased and their families may choose to spend less than today’s current amounts on their final arrangement services.  I don’t think that potential unknown of “funeral spend” is lost on the investing community.

That “teeter-totter” of thought, if you will, is what I think guides many investor’s decisons about their investment in funeral service.  I also think that may be one of the reasons that investors have been investing in Carriage Services.  If there is an eventual lessening of “funeral spend” in the years to come, those companies who have their debt in check will be in better situations than those that don’t.  Carriage Services has been very forward in talking about how they are getting their debt under control . . . and that may resonate with the investing public.

Here’s what Kathy Shanley, Carriage Services Chief Accounting Officer said of that commitment in the company’s October 31, 2024, Earnings Call, “We paid $15 million towards our outstanding debt this quarter as we continue to drive down our leverage ratio, which is now at 4.3x, down from 5.3x at Q3 of 2023. This reduction in leverage illustrates our commitment to disciplined capital allocation. . . “

Carriage Services had a new CEO named in June 2023 when Carlos Quezada was put in that position.  He was the first CEO to replace founder Melvin Payne who had been in that position since 1991.  I think investors have seen how Quezada and his team have seemed to put in place a patient and deliberate plan to put the company in the best position possible as Death Care moves forward with probable generational changes coming to the business over the next decade and beyond as more options for dispositions, celebrations, and memorializations come to pass.

For decades the mantra in growing funeral service companies has always been about “growing revenue” to increase cash-flows.  Maybe the investing public is changing to a more balanced approach about not only growing revenue but including a “watch your expenses” attitude to grow that cash-flow.

Disclaimer–  The author of this article for Funeral Director Daily is a shareholder in Service Corporation International, Carriage Services, and Security National Financial Corporation.

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The last time we mentioned the upstart preneed company Prelude in Funeral Director Daily was this article back in March 2024 when we first heard of them.  We mentioned that we didn’t know much about them but from their LinkedIn references and website it appeared that they were in the business of helping individual funeral homes sell preneed directly to the consumer public.

Earlier this week we received this press release from Cortado Ventures of Oklahoma City making known the fact that Cortado Ventures has invested in Prelude.  Here’s what that press release says in the first paragraph:

“Cortado Ventures has invested in the end-to-end digital preneed funeral planning company Prelude, which helps families, as well as funeral homes, craft an individual’s legacy by making it easier to plan and pre-pay for their own funeral. Offering a human-focused alternative to the highly transactional options in the funeral planning industry, Prelude harnesses a member-based insurance collective with AI-enabled B2B software aimed at transforming the funeral pre-planning process.”

Cortado Ventures’ Managing Partner Nathaniel Harding is quoted in the press release with this statement, “Prelude’s innovative solutions to funeral planning provides not only logistical ease but also emotional comfort and security before one of life’s most sensitive times.  End-of-life planning is never easy, but Cortado is excited to invest in a company that will serve Oklahomans, in life and after, and provide families some certainty in the face of life’s greatest uncertainty.”

Related Article — “Why we Invested:  Prelude”   —  Dated September 16, 2024, from the Cortado Ventures website.

Funeral Director Daily:  We still don’t know exactly how Prelude will work in integration with a funeral home, but their website has pages of information and one of them says this that is attributed to Prelude Co-Founder and CEO Kris Yee, “At Prelude we partner with independent funeral homes to revolutionize the preneed process.  . . .With Prelude you stay in control, increase profitability, and see significant growth in your preneed sales. . . . “

Here is the website for Prelude

Here is the website for Cortado Ventures

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