Cemetery revenue decreased $27.3 million, or 9 percent, for the year ended October 31, 2000, compared to the corresponding period in 1999. The Company experienced a $39.9 million, or 14 percent, decrease in revenue from Existing Operations resulting primarily from reduced preneed sales. Slightly offsetting this decrease was an approximate $4.0 million, or 13 percent, increase in revenue from cemetery trust funds and escrow accounts to $34.7 million. This increase was due to an increase in the average yield on the funds coupled with an increase in the average balance. The yield for the year was slightly higher than the Company’s goal of 8.5 percent to 9.0 percent.

Changes in the Company’s preneed sales strategies during fiscal year 2000, which are detailed in the funeral segment discussion above, had the effect of considerably reducing preneed cemetery sales.

Cemetery profit margin from Existing Operations decreased from 27.3 percent in 1999 to 22.5 percent in 2000. The decline was attributable principally to reduced preneed sales as described above, coupled with the high fixed-cost nature of the cemetery business.

The increase in revenue and costs from Acquired/Opened Operations resulted primarily from the Company’s acquisition and construction of cemeteries from November 1998 through October 2000 which were not owned for the entirety of both periods being presented.