TORONTO, ONTARIO (May 13, 2021) – Today, Park Lawn Corporation (TSX: PLC) (“PLC” or the “Company”) announced its results for the first quarter (“Q1”) ended March 31, 2021. PLC continued its solid performance into Q1 2021, which included significant growth in revenue, net earnings, Adjusted Net Earnings, Adjusted EBITDA, and Adjusted EBITDA margin:
J. Bradley Green, Chief Executive Officer of PLC, stated:
“Similar to the fourth quarter of 2020, we experienced continued operational excellence from our PLC team in the first quarter of 2021. As compared to Q1 2020, net revenue from comparable operations grew approximately 21% and Adjusted EBITDA margin increased 300 basis points to 27.2%, further demonstrating our commitment to improving upon our existing operations and integrating our recent acquisitions.
While our frontline teams remain focused on serving our families and their respective communities during this difficult time, during the quarter, we began to observe a normalization in the death rate and believe that the effects of COVID-19 are lessening in most of the markets we serve. Keeping that in mind, as our communities begin the journey back towards reopening, we are also seeing an increase in the number of families who are engaging in pre-planning activities in both our funeral homes and cemeteries. Likewise, we are also experiencing an increase in the average revenue per call as regulatory guidelines are being relaxed. We believe that this trend will continue as we progress through the 2021 calendar year.
Again, I would like to thank the entire PLC team for their steadfast commitment and dedication in providing our client families with the opportunity to honor and celebrate the lives of their loved ones. It is your courage and compassion which allows us to continue to meet the evolving needs of our client families.”
Highlights from Q1 2021 include:
- For the three-month period ended March 31, 2021, net revenue grew by 25.7%, over the comparable prior period, primarily due to increased demand for at-need funeral and cemetery services and pre-need property sales, as well as strong sales performance from acquisitions made during 2020.
- For the three-month period ended March 31, 2021, net revenue growth from comparable business units increased 21.4%, over the three-month period ended March 31, 2020.
- For the three-month period ended March 31, 2021, Adjusted Net Earnings attributable to PLC shareholders grew 59.1%, over the three-month period ended March 31, 2020.
- Adjusted Net Earnings per share attributable to PLC shareholders was $0.400 for the three-month period ended March 31, 2021, compared to $0.255 for the three-month period ended March 31, 2020, an increase of 56.9%.
- For the three-month period ended March 31, 2021, Adjusted EBITDA attributable to PLC shareholders grew 41.9%, over the three-month period ended March 31, 2020.
- Adjusted EBITDA per share attributable to PLC shareholders was $0.805 for the three-month period ended March 31, 2021, compared to $0.576 for the three-month period ended March 31, 2020, an increase of 39.8%.
- Park Lawn achieved an Adjusted EBITDA margin of 27.2% for the three-month period ended March 31, 2021, an increase of 300 basis points over the three-month period ended March 31, 2020.
PLC Continues its Expansion through both Acquisitions and Organic Growth
Subsequent to the quarter’s end, PLC closed three previously announced transactions which increased PLC’s presence in the Wisconsin, North Carolina and Tennessee markets. These businesses were financed with funds from PLC’s credit facility and available cash on hand.
- Effective as of April 1, 2021, PLC purchased substantially all of the assets of Wichmann Funeral Home & Crematory, Inc., BDB Company LLP and 312 Milwaukee Street, LLC in Appleton, Menasha, Kaukauna and Kimberly, Wisconsin (collectively the “Wichmann Businesses”). The Wichmann Businesses consist of five funeral homes and one cremation business.
- Effective as of April 22, 2021, PLC purchased substantially all of the assets of West Funeral Home, Inc., West Monument Company and Cemetery, Inc. and Sky View Memorial Park, Inc., in Asheville and Weaverville, North Carolina (collectively the “West Businesses”). The West Businesses consist of one funeral home, three cemeteries and one monument company.
- Effective as of May 1, 2021, PLC purchased all of the issued and outstanding membership interests of Cremation Society of Tennessee and Family Care Services, LLC, as well as all of the issued and outstanding stock of Polk Memorial Gardens Corporation and Williams Funeral Home, Inc. with businesses located in Columbia, Mt. Pleasant and Pulaski, Tennessee (collectively the “Williams Businesses”). The Williams Businesses consist of two funeral homes, three cemeteries and one cremation business.
“PLC is proud to welcome the Wichmann, West and Williams Businesses into our family,” stated Mr. Green.
Also, during the quarter, PLC executed an agreement to commence construction of a new funeral home, Waco Memorial Funeral Home, to be located on-site at Waco Memorial Park in Waco, Texas. The building is anticipated to be completed in April 2022.
The Company will host a conference call to discuss its Q1 2021 financial results on Friday, May 14, 2021. Details are as follows:
- Date: Friday, May 14, 2021
- Time: 9:30 a.m. EST
- Dial-in Number: Local (647) 427-7450 | Toll Free (888) 231-8191 | Conference ID: 7538966
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 May 21, 2021 and can be accessed as follows: Dial-in Number: Local (416) 849-0833 | Toll Free (855) 859-2056 | Conference ID: 7538966. 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 five Canadian provinces and fifteen U.S. states.
Adjusted Net Earnings, Adjusted EBITDA and their related per share amounts, Adjusted EBITDA margins, and Revenue Growth from Comparable Business Units 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: the impact of COVID-19 on the Company’s business; the Company’s belief that the effects of COVID-19 are lessening in most of the markets the Company serves; the Company’s belief that the average revenue per call will continue to increase as regulatory guidelines relating to the COVID-19 pandemic are relaxed through the 2021 calendar year; and the Company’s expectation that the Waco Funeral Home will be completed in April 2022. 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; recent 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 Waco Funeral Home will be completed in the estimated timeframe anticipated by the Company, 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 the 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