Park Lawn Corporation Releases Q3 2019 Results

Quarter shows steady organic growth and solid overall results

TORONTO, Nov. 12, 2019 /CNW/ - Today, Park Lawn Corporation (TSX: PLC) ("PLC" or the "Company") released its third quarter results for 2019 ("Q3 2019").

	Three Months Ended September 30, 2019						Nine Months Ended September 30, 2019
	2019		2018		% Change		2019		2018		% Change
Revenue	$	66,578,738	$	43,239,963	54.0%		$	175,302,642	$	110,795,643	58.2%
Net earnings, PLC shareholders	$	1,579,106	$	3,272,770			$	6,363,135	$	4,509,899
Adjusted Net Earnings, PLC shareholders	$	6,581,920	$	4,588,241	43.5%		$	17,582,838	$	11,135,588	57.9%
Adjusted EBITDA, PLC shareholders	$	15,106,997	$	9,297,070	62.5%		$	39,857,246	$	23,421,627	70.2%
Per share amounts attributable to: PLC shareholders
Net Earnings - diluted	$	0.053	$	0.141			$	0.231	$	0.229
Adjusted Net Earnings - diluted	$	0.221	$	0.197	12.2%		$	0.637	$	0.565	12.7%
Adjusted EBITDA - diluted	$	0.507	$	0.400	26.8%		$	1.445	$	1.188	21.6%

• After adjusting for the impact of foreign exchange, revenue growth from comparable business units increased by 3.1% year over year and 3.7% for the quarter.
  
  
• Adjusted EBITDA margin increased to 22.9% in Q3 2019 from 21.9% for the same period in 2018.

"PLC had a steady quarter, with strong organic growth and margin expansion.  We remain focused on integration of the US platform as well as continuing to look for both organic growth and acquisition opportunities in both the US and Canada to further expand our operational footprint," said Andrew Clark, PLC's Chairman & Chief Executive Officer.

During and subsequent to the Q3 2019, PLC executed on important milestones, including:

• On July 1, 2019, the Company completed its previously announced acquisition of Horan & McConaty Funeral Services, Inc. ("Horan"). Horan operates two cemeteries and 11 funeral homes (including two on-sites) in Denver and Aurora, Colorado.
  
  
• During the quarter the Company completed construction of the third floor of the Mausoleum of Faith at Westminster Cemetery in Toronto, Ontario. The third floor added approximately 1,080 additional crypt spaces to the mausoleum.
  
  
• On October 24, 2019, the Company held the ground breaking ceremony for the new Westminster Visitation Centre at Westminster Cemetery in Toronto, Ontario.  This "on-site" is the Company's first visitation centre located on a cemetery property in the Canadian market. 
  
  
• On October 25, 2019 the Company signed a definitive agreement to acquire the assets of two U.S. businesses: Journey Group Texas One and Journey Group Texas Two, LLC ("Journey Group"). The Journey Group adds 5 cemeteries and 5 funeral homes, including two "on-sites", located on cemetery land, to PLC's portfolio in the state of Texas. The transaction is expected to close in the fourth quarter of 2019.

PLC will host a conference call to discuss its Q3 2019 financial results on Wednesday, November 13, 2019. Details of the conference call are as follows:

• Time: 9:30AM (EST)
• Dial-in Number: Local [phone]
• Toll Free: [phone]
• Conference ID: 1283838

About PLC

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 has a North American wide platform with operations in five Canadian provinces and fourteen U.S. states.

Non‐IFRS Measures

Adjusted EBITDA, and their related per share amounts, and Adjusted EBITDA margin 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 EBITDA and their related per share amount, and Adjusted EBITDA margin to the nearest IFRS measure.

Cautionary Statement Regarding Forward‐Looking Information

This news release may contain 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 future growth initiatives. The forward-looking statements in this news release are based on certain assumptions, including those regarding present and future business strategies, the environment in which the PLC will operate in the future, expected revenues, expansion plans and the 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 Annual Information Form 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.

SOURCE Park Lawn Corporation

Andrew Clark, Chairman & Chief Executive Officer, [phone]; Joseph Leeder, Chief Financial Officer, [phone]; Suzanne Cowan, VP, Business Development & Corporate Affairs, [phone], [email protected]

Related Links

https://www.parklawncorp.com/