1016281--3/10/2009--CARRIAGE_SERVICES_INC

related topics
{capital, credit, financial}
{condition, economic, financial}
{debt, indebtedness, cash}
{acquisition, growth, future}
{personnel, key, retain}
{product, market, service}
{regulation, government, change}
{loan, real, estate}
{financial, litigation, operation}
Price competition could also reduce our market share or cause us to reduce prices to retain or recapture market share, either of which could reduce revenues and margins. Our ability to execute our growth strategy is highly dependent upon our ability to successfully identify suitable acquisition candidates and negotiate transactions on favorable terms. Increased or unanticipated costs, such as insurance, taxes or litigation, may have a negative impact on our earnings and cash flow. Improved performance in our funeral and cemetery segments is highly dependent upon successful execution of our Standards Operating Model. The success of our businesses is typically dependent upon one or a few key employees for success because of the localized and personal nature of our business. Earnings from and principal of trust funds and insurance contracts could be reduced by changes in financial markets and the mix of securities owned. Covenant restrictions under our debt instruments may limit our flexibility in operating and growing our business. Continued economic crisis and financial and stock market declines could reduce future potential earnings and cash flows and could result in future goodwill impairments. RISKS RELATED TO THE DEATH CARE INDUSTRY Declines in the number of deaths in our markets can cause a decrease in revenues. Changes in the number of deaths are not predictable from market to market or over the short term. The increasing number of cremations in the United States could cause revenues to decline because we could lose market share to firms specializing in cremations. In addition, direct cremations produce minimal revenues for cemetery operations and lower funeral revenues.

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