Growth Catalysts

• Funeral cremation mix continues to rise: total cremation rate realized at 52.8% in Q2 2025 (up 3.6% mix shift).
• 6.1% increase in cremation families choosing to have service associated with honoring their loved one.
• Funeral sales average up 3.3%, supporting modest revenue growth in the funeral home division (+1.2% revenue to $3.26M).

Business Development

Financial Highlights

• Net earnings before tax: $1.79M in 2025 (Q2 2025 context provided) vs $2.09M in Q2 2024; down 14.2%.
• Total revenue: $8.14M in Q2 2025 vs $8.28M in Q2 2024; down 1.7%.
• Funeral home division: earnings $387k vs $394k (slightly down); revenue $3.26M vs prior year (up 1.2%). Driven by funeral sales average +3.3%.
• Cemetery division: earnings $822k vs $1.43M (down materially); revenue down 10% from $4.81M to $4.33M.
• Cemetery preneed land sales lag: prior-year quarter included large land sales absent in 2025.
• Cemetery interment volumes down 16.4% (65 interments fewer within the quarter), largely due to consumer shift toward cremation.
• Personnel costs: analyst-cited $4.0M increase in personnel costs attributed to (1) market-rate compensation adjustments and (2) strategic investments/hires including proprietary aftercare program and proprietary CRM for Salesforce.

Capital Funding

Strategy & Ops

• Cemetery sales team turnover to improve professionalism/standards: since Jan 2025, turned over 60% of sales team; by end of Q2, 50% of cemetery sales team joined within last six months.
• Operational focus for remainder of 2025: talent development, technology, expense management, and sales culture.
• Mortgage company losses mitigation: expense reduction on the mortgage side and increased margins; management expects increased margins in Q3 to raise revenue on a comparative basis.
• Expense increases year-over-year (Q2) drivers called out as items without operational control: CECL for unexpected credit losses and deferred compensation accruals; management says it is rationalizing expenses excluding these.

Market Outlook

Risks & Headwinds

• Cemetery profitability/volume pressure: preneed land sales weaker vs prior year due to absence of large land sales; interment volumes down 16.4% and preneed revenue down 10%.
• Mortgage/margin competitiveness risk: if margin increases, potential competitiveness/volume risk; management says they monitor market conditions via pricing engine and publicly traded competitor results and try not to increase more than market increases.
• Premium increases contributing to field sales challenges: management noted premium increases create a mindset challenge for Salesforce; they are working to position company as value proposition (not competing on price).
• Expense headwinds beyond operational control: CECL for unexpected credit losses and deferred compensation accruals increased in Q2 year over year.
• Personnel cost pressure: costs rising due to market-rate retention and strategic hires/investments.