TORONTO, ONTARIO (November 11, 2021) – Today, Park Lawn Corporation (TSX: PLC) (“PLC” or the “Company”) announced its results for the third quarter (“Q3”) ended September 30, 2021. PLC once again demonstrated its operating strength and ability to achieve sustained growth. The Company experienced measurable growth in net revenue, net earnings, Adjusted Net Earnings, Adjusted EBITDA, and Adjusted EBITDA margin:
J. Bradley Green, Chief Executive Officer of PLC, stated:
“The third quarter exceeded our expectations, especially given the continued decline of COVID-19 deaths served by our businesses. Despite this, we saw an increase in the number of families that we served in our comparable businesses in both our funeral homes and cemeteries. Likewise, we continued to see an increase in the average revenue per call in our funeral homes as families are now able to memorialize and honor their loved ones in meaningful ways. We attribute this success, in large part, to the hard work and dedication of our team to the families we serve.
We also proved our ability to sustain a high level of growth by continuing to expand our presence in targeted strategic markets. And, as we continue to evaluate new opportunities to partner with premier independent businesses, as well as new organic growth opportunities, we look forward to continuing that high level of growth well into the future.”
Highlights from Q3 2021 include:
- For the three-month period ended September 30, 2021, net revenue grew by 14.7%, (19.6% excluding the impact of foreign exchange) over the comparable prior period, primarily due to increased revenue averages per service, demand for pre-need property sales, as well as strong sales performance from acquisitions made during the first three quarters of 2021.
- For the three-month period ended September 30, 2021, net revenue growth from Comparable Operations increased by 3.2% (8.1% excluding the impact of foreign exchange), over the three-month period ended September 30, 2020.
- For the three-month period ended September 30, 2021, Adjusted Net Earnings attributable to PLC shareholders grew approximately 56.0%, and Diluted Adjusted Net Earnings per share attributable to PLC shareholders grew 48.3% to $0.384 per share, over the three-month period ended September 30, 2020.
- For the three-month period ended September 30, 2021, Adjusted EBITDA attributable to PLC shareholders grew 23.1%, over the three-month period ended September 30, 2020, to $23.5 million.
- PLC achieved an Adjusted EBITDA margin of 25.6% for the three-month period ended September 30, 2021, an increase of 160 basis points over the three-month period ended September 30, 2020.
- PLC’s consolidated results faced headwind from foreign exchange as the average USD/CAD exchange rate decreased 5.4% compared to the three-month period ended September 30, 2020.
- PLC completed a public offering of common shares whereby a total of 4,081,000 common shares were issued at a price of $36.40 per common share for total gross proceeds of approximately $148.5 million, which includes proceeds from the full exercise of an over-allotment option to purchase an additional 371,000 common shares.
- PLC amended its credit facility to increase its overall borrowing capacity to $300 million on a cost neutral basis and extended the term to maturity to August 31, 2026.
- During the quarter, PLC strengthened its presence in Mississippi and Tennessee through the completion of two acquisitions which added three on-site funeral home/cemetery properties and ten stand-alone funeral homes.
- PLC announced its intention to transition to a USD presentation currency as of January 1, 2022 in order to reduce the volatility from exchange rates in the presentation of the Company’s financial statements.
PLC’s Growth Story Continues
Subsequent to the quarter’s end, PLC completed the acquisition of the Pugh Funeral Homes and New Hope Memorial Gardens in central North Carolina which added five funeral homes and one cemetery to PLC’s North Carolina presence. PLC also completed the acquisition of Malcolm, Deavitt & Binhammer Funeral Home Limited which added one funeral home in Pembroke, Ontario. In addition, PLC announced that it has entered into an asset purchase agreement for the purchase of substantially all of the assets of Smith Funeral & Cremation Service, Life & Legacy Cremation Center and Smith Event Centers, as well as Grandview Cemetery and Cremation by Grandview which, upon closing, will add one funeral home, one on-site funeral home/cemetery property and five event centers in Maryville, Tennessee.
“Our team members consistently exhibit an unwavering commitment to our profession, their jobs and the families we serve. Without them, none of this would have been possible,” said Mr. Green.
The Company will host a conference call to discuss its Q3 2021 financial results on Friday, November 12, 2021. Details are as follows:
- Date: Friday, November 12, 2021
- Time: 9:30 a.m. EST
- Dial-in Number: Toll Free (888) 506-0062 | Conference ID: 622285
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.
A replay of the conference call will be available until November 26, 2021 and can be accessed as follows: Dial-in Number: Toll Free (877) 481-4010 | Conference ID: 43347. Alternatively, the conference call 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 fifteen U.S. states.
Adjusted Net Earnings, Adjusted EBITDA and their related per share amounts, Adjusted EBITDA margins, 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. Please see PLC’s most recent Management’s Discussion and Analysis for how the Company reconciles Adjusted Net Earnings, Adjusted EBITDA and their related per share amount, and Adjusted EBITDA margins 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: PLC’s intention to continue to evaluate new opportunities to partner with premier independent businesses, as well as new organic growth opportunities, and to continue a high level of growth well into the future; the impact of COVID-19 on the Company’s business; the pending acquisition of Smith Funeral & Cremation Service, Life & Legacy Cremation Center and Smith Event Centers, as well as Grandview Cemetery and Cremation by Grandview; and PLC’s intention to transition to a USD presentation currency as of January 1, 2022 in order to reduce the volatility from exchange rates in the presentation of the Company’s financial statements. The forward-looking statements in this news release are based on certain assumptions, including that regulatory restrictions relating to the COVID-19 pandemic in the markets the Company serves will continue to be relaxed through the 2021 calendar year, the Company will be able to complete the pending acquisitions in the time period contemplated, recent and pending acquisitions perform as expected, PLC will be able to implement business improvements and achieve costs savings, PLC will be able to retain key personnel, there will be no unexpected expenses occurring as a result of the acquisitions, 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, organic growth initiatives, the environment in which PLC will operate in the future, expected revenues, expansion plans and PLC’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, risks associated with the current COVID-19 pandemic and the other factors discussed under the heading “Risk Factors” in PLC’s Annual Information Form and most recent Management’s Discussion and Analysis 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
(416) 231-1462, ext. 221