TORONTO, ONTARIO – (August 14, 2023) – Park Lawn Corporation (TSX:PLC; PLC.U) (“PLC” or “Park Lawn”) is pleased to announce that it has acquired the assets of Forrest & Taylor Funeral Home Limited (“Forrest & Taylor”), a standalone funeral home business in Sutton, Ontario.
“Since Forrest & Taylor began in the late 1880s, we have had the privilege of serving the families of Sutton and its surrounding communities. Through our partnership with Park Lawn, we are excited to be able to continue providing an unparalleled level of service with the tradition that began over a century ago,” said Greg and Carole Forrest, former owners of Forrest & Taylor.
J. Bradley Green, Chief Executive Officer of PLC stated, “We are pleased to continue building our strong operating position in the growing market north of Toronto through the acquisition of Forrest & Taylor, and we look forward to welcoming the Forrest & Taylor team into the Park Lawn family.”
Highlights of the transaction include:
- PLC further deepening its presence in Ontario by adding one standalone funeral home in Sutton, Ontario;
- Forrest & Taylor performs approximately 158 calls per year and was financed with cash on hand and funds from PLC’s credit facility;
- The Forrest & Taylor acquisition is expected to add approximately CAD$338,647 in Adjusted EBITDA annually.[1]
- 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.
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.
Cautionary Statement Regarding Forward-Looking Information:
This news release contains forward-looking information (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 expectation that the Forrest & Taylor acquisition will add approximately CAD$338,647 in Adjusted EBITDA. The forward-looking statements in this news release are based on certain assumptions, including that the acquisition will perform as expected following closing, PLC will be able to implement business improvements and achieve cost savings, PLC will be able to retain key personnel, there will be no unexpected expenses occurring as a result of the acquisition, the purchase price multiples for future acquisitions 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, 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, the factors discussed under the heading “Risk Factors” in PLC’s most recent Annual Information Form and 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.
Non-IFRS Measures
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 acquisition of Forrest & Taylor. 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 refer to pages 8, 9 and 21 of PLC’s Management’s Discussion and Analysis for the year ending December 31, 2022, which was filed on SEDAR on March 2, 2023, for how PLC reconciles Adjusted EBITDA to the nearest IFRS measure.
Contact Information
Daniel Millett
Chief Financial Officer
(416) 231-1462, ext. 221
[1] 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.