TORONTO, ONTARIO (August 10, 2023) – Today, Park Lawn Corporation (TSX: PLC; PLC.U) (“PLC”, “Park Lawn”, or the “Company”) announced its financial operating results for the second quarter (“Q2”) ended June 30, 2023.

Financial Results for the Three-Month Period Ended June 30, 2023[1]:

J. Bradley Green, Chief Executive Officer of PLC, commented, “We are proud of our operating results this quarter as our overall performance demonstrates the ability of our team to incrementally improve their business operations in a challenging macroeconomic environment while simultaneously staying true to our mission to deliver the highest level of service to our families.”  Mr. Green continued, “Despite a slightly depressed death rate, we were nonetheless able to maintain strong market share in the communities in which we operate while at the same time increasing our Adjusted EBITDA and Adjusted EBITDA margins demonstrating success with both our targeted pricing strategy as well as more intentional expense management.”

Key Results from the Three-Month Period Ended June 30, 2023:         

• Revenue increased by approximately 12.3% to $85.3M primarily as a result of Acquired Operations as compared to the three-month period ended June 30, 2022.

• Gross profit increased by 25.2% to $21,043,308 compared to $16,813,765 for the three-month period ended June 30, 2022.   

• Fully Diluted Earnings per share was $0.109 compared to $0.167 for the three-month period ended June 30, 2022.

• Fully Diluted Adjusted Net Earnings per share increased by $0.032 or 16.8% to  $0.222 compared to $0.190 for the three-month period ended June 30, 2022.

• Net Earnings was $3,775,581 compared to $5,807,886 for the three-month period ended June 30, 2022. 

• Adjusted EBITDA increased by 20.7% to $18,829,730 as compared to $15,605,747 for the three-month period ended June 30, 2022.

• PLC achieved an Adjusted EBITDA margin of 22.1%, an increase of 150 bps over the three-month period ended June 30, 2022.

• On April 10, 2023, the Company completed the acquisition of substantially all the assets of Carson-Speaks Chapel in Independence, Missouri; Speaks Buckner Chapel in Buckner, Missouri; Speaks Suburban Chapel in Independence, Missouri; and Oak Ridge Memory Gardens in Independence, Missouri (collectively “Speaks”). The Speaks acquisition expands Park Lawn’s Kansas City metropolitan market by adding three stand-alone funeral homes and one stand-alone cemetery and is expected to add $2,247,759 in Adjusted EBITDA annually.

• On June 26, 2023, the Company completed the acquisition of substantially all the assets of Cobb Funeral Chapel and Cobb Suncrest Memorial Gardens, a business consisting of one on-site funeral home and cemetery located in Moultrie, Georgia (collectively “Cobb”). The Cobb acquisition is expected to add $676,710 in Adjusted EBITDA annually.

• Following the close of the quarter, on July 17, 2023, the Company acquired substantially all the assets of Ward Funeral Home Limited with three standalone funeral homes located in Brampton, Woodbridge and Toronto, Ontario (collectively “Ward”).  The Ward acquisition expands PLC’s funeral home presence in Ontario and is expected to add $1,800,000 in Adjusted EBITDA annually.

Further Expansion of Ontario Footprint

Subsequent to the quarter, on August 8, 2023, the Company completed the acquisition of substantially all the assets of M.W. Becker Funeral Home Ltd. (“MWB”), a standalone funeral home business in Keswick, Ontario.

“We take great pride in serving Keswick and the surrounding communities and look forward to continuing to provide outstanding personalized service to our families through our partnership with Park Lawn,” said Yves Larocque, former owner of MWB.

“The addition of the M.W. Becker Funeral Home allows us to enter a growing market north of Toronto, and expands Park Lawn’s footprint in Ontario, in furtherance of our stated growth objectives.  We are excited to welcome the M.W. Becker team into the Park Lawn family,” stated J. Bradley Green, Chief Executive Officer of PLC.

Highlights of the transaction include:

• PLC deepening its presence in Ontario by adding one standalone funeral home in Keswick, Ontario;
• MWB performs approximately 162 calls per year and was financed with cash on hand and funds from PLC’s credit facility;
• The MWB acquisition is expected to add approximately CAD$375,970 in Adjusted EBITDA annually.[2]
• For the 12 months ended December 31, 2022, PLC had Adjusted EBITDA of US$74,948,868 and net earnings of US$25,124,765.
• The agreed upon purchase price multiple is within PLC’s publicly-stated targeted EBITDA multiple range for transactions of this nature.

Renewal Normal Course Issuer Bid

PLC also announced today that the Toronto Stock Exchange (the “TSX“) has approved the renewal of the Company’s normal course issuer bid (“NCIB“). Under the terms of the NCIB, PLC may, during the twelve-month period commencing August 17, 2023 and ending August 16, 2024 purchase up to 3,391,575 common shares (“Common Shares“) representing 10% of its public float of issued and outstanding Common Shares. As at August 4, 2023, there were 34,272,395 Common Shares issued and outstanding and 33,915,751 Common Shares estimated in the “public float”, calculated in accordance with TSX rules. All Common Shares purchased by PLC under the renewed NCIB will be cancelled or transferred to and held by a trust established by PLC for the settlement of equity settled incentive plans. 

PLC’s board of directors has authorized the NCIB because the board believes that, from time to time, the market price of Common Shares may be such that their purchase may be

an attractive and appropriate use of corporate funds. The NCIB will provide PLC with additional flexibility to manage capital. Decisions regarding the timing of future purchases of Common Shares will be based on market conditions, share price, capital needs and other factors.

Purchases made by PLC will be made on the open market through the facilities of the TSX and/or alternative Canadian trading systems, in accordance with applicable TSX and other applicable trading system rules.  The actual number of Common Shares purchased under the NCIB and the timing of any such purchases will be at PLC’s discretion. Based on the average daily trading volume of 62,835 during the last six months, daily purchases will be limited to 15,708 Common Shares, other than block purchase exceptions.

PLC has entered into an automatic securities purchase plan (“ASPP“) with its designated broker in connection with its NCIB to facilitate the purchase of Common Shares during times when PLC would ordinarily not be permitted to purchase Common Shares due to regulatory restrictions or self-imposed black-out periods. Before entering a black-out period, PLC may, but is not required to, instruct the broker to make purchases under the NCIB based on parameters set by PLC in accordance with the ASPP, TSX rules and applicable securities laws. The ASPP has been pre-cleared by the TSX. Outside of pre-determined blackout periods, Common Shares may be purchased under the NCIB based on management’s discretion, in compliance with TSX rules and applicable securities laws. All purchases made under the ASPP will be included in computing the number of Common Shares purchased under the NCIB.

Under its prior NCIB that commenced on August 17, 2022 and expires on August 16, 2023, the Company had sought and received approval from the TSX to purchase up to 3,385,439 Common Shares. As of August 9, 2023, the Company had purchased 207,885 Common Shares under its prior NCIB through open market purchases on the TSX and/or alternative Canadian trading systems, at a weighted average price of approximately C$24.81 per Common Share for total cash consideration, including commission, of $3,835,438 (C$5,152,539).

Important Reminder

The Company will host a conference call to discuss its second quarter 2023 financial results on Friday, August 11, 2023.  Details are as follows:

• Date:   Friday, August 11, 2023
• Time:  9:30 a.m. EST
• Dial-in Number:  Toll Free (877) 545-0523 | Conference ID: 711858

To ensure your participation, please join approximately five minutes prior to the scheduled start of the conference call.  The Company’s complete financial results can be found at www.sedar.com or on the Company’s website at www.parklawncorp.com.

A replay of the conference call will be available until Friday, August 25, 2023 and can be accessed as follows: Dial-in Number:  Toll Free (877) 481-4010| Conference ID: 48853.  Alternatively, the conference will also be available on the Company’s website at www.parklawncorp.com.

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 operates in three Canadian provinces and nineteen U.S. states.

Non‐IFRS Measures

Adjusted Net Earnings, Adjusted EBITDA and their related per share amounts, Adjusted EBITDA margins, Adjusted Field EBITDA margins, Acquired Operations and Comparable Operations are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Such measures are presented in this news release because management of PLC believes that such measures are relevant in evaluating PLC’s operating performance. Such measures, 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.

The Company defines Acquired Operations as business units or operating locations acquired by the Company during the period from January 1, 2022 and ending June 30, 2023. The Company defines Comparable Operations as business units or operating locations owned by the Company for the entire period from January 1, 2022 and ending June 30, 2023.

The following tables indicate how the Company reconciles Adjusted Net Earnings, Adjusted EBITDA and their related per share amount, Adjusted EBITDA margins and Adjusted Field EBITDA margins to the nearest IFRS measure.

Adjusted Net Earnings

EBITDA and Adjusted EBITDA

Adjusted Field EBITDA

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”, “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: PLC’s focus on implementing incremental improvements in its operations and making selective and strategic growth decisions that drive shareholder value; PLC’s expectations regarding its strong pipeline and opportunities for continued strategic growth in 2023; PLC’s expectation that the MWB acquisition will add approximately CAD$375,970 in Adjusted EBITDA; and regarding the impact of the Speaks, Cobb and Ward acquisitions on PLC’s annual Adjusted EBITDA.  The forward-looking statements in this news release are based on certain assumptions, including the normalization of the death rate, that the CAD to USD exchange rate remains consistent, the Speaks, Cobb, Ward and MWB acquisitions will perform as expected, PLC will be able to implement business improvements and costs savings, PLC will be able to retain key personnel, there will be no unexpected expenses occurring as a result of contemplated acquisitions, multiples remain at or below levels paid by PLC for previously announced acquisitions, 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 PLC will operate in the future, expected revenues, expansion plans and PLC’s ability to achieve its aspirational goals and acquisitions targets.

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, risks associated with pandemic, epidemic and other public health risks, risks associated with the impact of inflation on PLC’s business, risks associated with political conflict, including from economic sanctions imposed or to be imposed as a result thereof, and supply chain disruptions resulting therefrom, and the other factors discussed under the heading “Risk Factors” in PLC’s most recent Annual Information Form and most recent Management’s Discussion and Analysis available at www.sedarplus.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. 

Unless otherwise stated, all amounts discussed herein are denominated in U.S. dollars.

Contact Information

Daniel Millett
Chief Financial Officer
(416) 231-1462, ext. 221

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[1] Adjusted Net Earnings, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Field EBITDA Margin and Adjusted Net Earnings per share diluted are non IFRS financial measures.  Refer to the non-IFRS Financial Measures section of this document for more information on each non-IFRS financial measure.

[2] Adjusted EBITDA is a non-IFRS financial measure.  Refer to the Non-IFRS Financial Measures section of this news release for more information on this non-IFRS financial measure.