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Cautionary Statements
The Company cautions readers that
the following important factors, among others, in some cases
have affected, and in the future could affect, the Company's
actual consolidated results and could cause the Company's actual
consolidated results in the future to differ materially from
the goals and expectations expressed in the forward-looking statements
previously and in any other forward-looking statements made by
or on behalf of the Company.
(1) Achieving projected revenue growth
depends in part upon sustaining the level of acquisition activity
experienced by the Company in the last three fiscal years. Higher
levels of acquisition activity will increase anticipated revenues,
and lower levels will decrease anticipated revenues. The level
of acquisition activity depends not only on the number of properties
acquired, but also on the size of the acquisitions; for example,
one large acquisition could increase substantially the level
of acquisition activity and, consequently, revenues. Several
important factors, among others, affect the Company's ability
to consummate acquisitions:
- (a) The Company may be unable to find
a sufficient number of businesses for sale at prices the Company
is willing to pay.
(b) In most of its existing markets and in many new markets,
including foreign markets, that the Company desires to enter,
the Company competes for acquisitions with the other publicly
traded death care firms. These competitors, and others, may be
willing to pay higher prices for businesses than the Company
or may cause the Company to pay more to acquire a business than
the Company would otherwise have to pay in the absence of such
competition. Thus, the aggressiveness of the Company's competitors
in pricing acquisitions affects the Company's ability to complete
acquisitions at prices it finds attractive.
(c) Achieving the Company's projected acquisition activity depends
on the Company's ability to enter new markets, including foreign
markets. Due in part to the Company's lack of experience operating
in new areas and to the presence of competitors who have been
in certain markets longer than the Company, such entry may be
more difficult or expensive than anticipated by the Company.
(2) Achieving the Company's revenue goals
also is affected by the volume and prices of the properties,
products and services sold. The annual sales targets set by the
Company are very aggressive, and the inability of the Company
to achieve planned increases in volume or prices could cause
the Company not to meet anticipated levels of revenue. The ability
of the Company to achieve volume or price increases at any location
depends on numerous factors, including the local economy, the
local death rate and competition.
(3) Another important component of revenue
is earnings from the Company's trust funds and escrow accounts,
which are determined by the size of, and returns (which include
dividends, interest and realized capital gains) on, the funds.
The performance of the funds depends primarily on market conditions
that are not within the Company's control. The size of the funds
depends on the level of sales, funds added through acquisitions
and the amount of returns that may be reinvested.
(4) Future revenue also is affected by
the level of prearranged sales in prior periods. The level of
prearranged sales may be adversely affected by numerous factors,
including deterioration in the economy, which causes individuals
to have less discretionary income.
(5) The Company first entered foreign markets
in the fourth quarter of fiscal year 1994, and no assurance can
be given that the Company will continue to be successful in expanding
in foreign markets, or that any expansion in foreign markets
will yield results comparable to those realized through the Company's
expansion in the United States.
(6) In addition to the factors discussed
above, earnings per share may be affected by other important
factors, including the following:
- (a) The ability of the Company to achieve
projected economies of scale in markets where it has "clusters"
or combined facilities.
(b) Whether acquired businesses perform at pro forma levels used
by management in the valuation process and whether, and the rate
at which, management is able to increase the profitability of
acquired businesses.
(c) The ability of the Company to manage its growth in terms
of implementing internal controls and information-gathering systems,
and retaining or attracting key personnel, among other things.
(d) The amount and rate of growth in the Company's general and
administrative expenses.
(e) Changes in interest rates, which can increase or decrease
the amount the Company pays on borrowings with variable rates
of interest.
(f) The Company's debt-to-equity ratio, the number of shares
of common stock outstanding and the portion of the Company's
debt that has fixed or variable interest rates.
(g) The impact on the Company's financial statements of nonrecurring
accounting charges that may result from the Company's ongoing
evaluation of its business strategies, asset valuations and organizational
structures.
(h) Changes in government regulation, including tax rates and
their effects on corporate structure.
(i) Changes in inflation and other general economic conditions
both domestically and internationally, affecting financial markets
(e.g. marketable security values as well as exchange rate fluctuations).
(j) Unanticipated legal proceedings and unanticipated outcomes
of legal proceedings.
(k) Changes in accounting policies and practices adopted voluntarily
or required to be adopted by generally accepted accounting principles.
(l) The ability of the Company and its significant vendors, financial
institutions and insurers to achieve Year 2000 compliance on
a timely basis.
The Company also cautions readers that
it assumes no obligation to update or publicly release any revisions
to forward-looking statements made herein or any other forward-looking
statements made by or on behalf of the Company.
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