Arbor announces first quarter results

TSX ABO.A and ABO.B

TORONTO, March 4 /CNW/ - Arbor Memorial Services Inc. announced today its results for the 13 weeks ended January 24, 2010 and January 25, 2009.

    
                                                            13 weeks ended
    (In $Millions)                                           2010     2009(1)
                                                             ----     ----
    Revenue                                                  64.1     58.3
    Earnings before interest expense and income
     taxes ("EBIT" - a non-GAAP measure)                      8.6      7.6
    Net earnings from continuing operations                   5.3      4.7
    Net earnings                                              5.3      4.9
    Basic and diluted earnings per share
      from continuing operations ($)                         0.49     0.44
    Basic and diluted earnings per share ($)                 0.49     0.46

    (1) Restated to conform with the current period's presentation for
discontinued operations.
    

Revenue increased by $5.7 million or 9.8% over 2009. Sales in the cemetery division increased by $4.5 million or 19.1% due primarily to higher sales of pre-need interment rights and delivery of markers. Sales in the funeral division increased by $0.6 million or 2.0%. Investment and other income increased by $0.7 million or 16.8% over 2009 due primarily to higher annuity fee income in the funeral division.

EBIT (a non-GAAP measure) increased by $1.0 million or 12.9% over 2009 to $8.6 million. The increase in EBIT was the result of an increase of $1.4 million in the cemetery division due to higher sales. The favourable variance in the cemetery division was partially offset by an increase in the loss of the corporate division of $0.3 million or 7.5% and lower earnings of the funeral division of $0.1 million or 0.9%.

Net earnings increased by $0.4 million or 7.3% from 2009 to $5.3 million. The improvement was the result of an increase in EBIT of $1.0 million or 12.9%, which was driven by higher sales in the cemetery division and lower interest expense of $0.2 million or 32.5%, which were partially offset by higher income taxes of $0.6 million or 25.8% and a reduction in earnings of discontinued operations of $0.2 million. Income taxes increased by $0.6 million primarily due to an increase in future income tax expense of $0.4 million resulting from changes in future tax rates and higher earnings.

In addition to the GAAP results provided in this Press Release, some of the discussion of operating performance is based on EBIT. EBIT excludes the impact of interest expense and income taxes as disclosed in the statements of earnings. EBIT is a non-GAAP financial measure that does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. This non-GAAP financial measure is more fully defined and discussed in the management discussion and analysis of Arbor Memorial Services Inc. for the year ended October 25, 2009, available on the SEDAR website at www.sedar.com.

Arbor Memorial Services Inc. owns 41 cemeteries, 26 crematoria, 5 reception centres located on cemetery premises and 82 funeral homes in eight provinces of Canada.

%SEDAR: 00007478E

For further information: Brian D. Snowdon, President and Chief Executive Officer; Laurel L. Ancheta, Vice-President and Chief Financial Officer, Telephone: [phone]