New CEO search underway as Chairman and CEO Andrew Clark moves on to next career challenge
Company well-positioned for new phase of growth; reaffirms growth targets and expresses confidence in management team
TORONTO, February 18, 2020/CNW/ - Park Lawn Corporation (TSX: PLC) (“PLC” or “Park Lawn”) announces Andrew Clark has advised the board of directors (the “Board”) that he will be stepping down as Chairman and CEO of PLC. Until a new CEO is appointed, Mr. Clark will continue as CEO and work closely with the Board and management to ensure a smooth transition. Paul G. Smith, who has been a director of PLC for three years, will assume the role of Chairman effective today.
“It has been a tremendous privilege to lead PLC and build a strong and highly capable management team over the last eight years. I am grateful to have led a team that transformed PLC from a small business with six cemeteries into one of the largest and most well-respected operators in our industry. I remain confident in PLC’s future, believe that new leadership will benefit PLC through its next growth phase, and look forward to participating in its continued success as a shareholder. I know PLC is optimally positioned to continue to deliver long-term growth and drive shareholder value,” stated Andrew Clark, CEO of PLC.
“Andrew has been instrumental in putting together a deep and talented management team and taking PLC from a market cap of $30 million to almost $900 million in under seven years. Under Andrew’s leadership, PLC delivered a total shareholder return of 337%. On behalf of the entire Board, I want to thank Andrew for his passion, commitment to and leadership of PLC,” said Paul G. Smith, new Chairman of the Board. “Andrew will work closely with PLC’s team to ensure a smooth transition that will continue our strategic course.”
Park Lawn’s board has engaged Egon Zehnder, a leading global search firm, to identify Mr. Clark’s successor with the skill set necessary to ensure PLC’s current growth trajectory remains on track.
PLC reaffirms its aspirational growth target of achieving pro forma Adjusted EBITDA of $100 million by the end of 2022 and its commitment to the continued, consistent execution of its growth strategy via a combination of organic growth, margin expansion and continued acquisition activity.
About Park Lawn Corporation:
PLC provides goods and services associated with the disposition and memorialization of human remains. Products and services are sold on a pre-planned basis (pre-need) or at the time of a death (at-need). PLC and its subsidiaries own and operate businesses including cemeteries, crematoria, funeral homes, chapels, planning offices and a transfer service. PLC has a North American wide platform with operations in five Canadian provinces and fifteen U.S. States.
Adjusted EBITDA is not a measure recognized under IFRS and does not have a standardized meaning prescribed by IFRS. Such measure is presented in this news release because management of PLC believes that such measure is relevant in evaluating PLC's operating performance. Such measure, as computed by PLC, may differ from similar computations as reported by other similar organizations and, accordingly, may not be comparable to similar measures reported by such other organizations. Please see PLC's most recent Management's Discussion and Analysis for how PLC reconciles Adjusted EBITDA to the nearest IFRS measure.
Cautionary Statement Regarding Forward‐Looking Information
This news release contains forward-looking statements (within the meaning of applicable securities laws) relating to the business of PLC and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate", "pro-forma" and other similar expressions. These statements are based on PLC's expectations, estimates, forecasts and projections and include, without limitation, statements regarding Park Lawn’s continued success, the growth targets that PLC aspires to achieve by the end of 2022 and the execution of its growth strategy.
The forward-looking statements in this news release are based on certain assumptions, including those set out under the heading “Outlook” in PLC’s management’s discussion and analysis for the second quarter of 2018 (filed on SEDAR on August 14, 2018), as well as that acquisition multiples remain at or below levels paid by PLC for previously announced acquisitions, the CAD to USD exchange rate remains consistent, the acquisition and financing markets remain accessible, capital can be obtained at reasonable costs and PLC’s current business lines operate and obtain synergies as expected, as well as those regarding present and future business strategies, the environment in which the Company will operate in the future, expected revenues, expansion plans and the Company’s ability to achieve its goals.
Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in PLC's Annual Information Form available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, PLC assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Chief Financial Officer & Director
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Below is a video message from Andrew Clark and Paul Smith: