TORONTO, ONTARIO (May 12, 2022) – Today, Park Lawn Corporation (TSX: PLC; PLC.U) (“PLC” or the “Company”) announced its results for the first quarter (“Q1”) ended March 31, 2022. The Company had a solid performance achieving strong growth in Net Revenue, Net Earnings, Adjusted Net Earnings1, and Adjusted EBITDA1:
“We are pleased with our first quarter results and performance against a very difficult comparison in the first quarter of 2021. As we previously predicted and communicated, we are seeing less impact from the pandemic on our businesses. Irrespective of the decline in impact, we continue to see strong operating performance from our comparable operations as well as through our active acquisition pipeline,” said J. Bradley Green, Chief Executive Officer. “Specifically, in this quarter, while we did see a slight drop in our call volume, as we expected, this was offset by an increase in our average revenue per call. We also experienced strong property sales in our cemeteries as the pandemic continues to act as a trigger event,” said Mr. Green.
Highlights from Q1 2022
- For the three-month period ended March 31, 2022, net revenue increased by approximately 17.5% to $83.2M compared to the three-month period ended March 31, 2021.
- For the three-month period ended March 31, 2022, net revenue growth from Comparable Operations2 was 0.6% over the prior period ending March 31, 2021.
- Fully Diluted Net Earnings per share attributable to PLC shareholders was $0.250 for the three-month period ended March 31, 2022, compared to $0.256 for the three-month period ended March 31, 2021.
- Fully Diluted Adjusted Net Earnings per share attributable to PLC shareholders was $0.321 for the three-month period and year ended March 31, 2022, compared to $0.316 for the three-month period and year ended March 31, 2021.
- Adjusted EBITDA attributable to PLC shareholders was approximately $21.4M for the three-month period ended March 31, 2022 compared to $19.2M for the three month period ended March 31, 2021 an increase of 11.8%.
- PLC achieved a Net Earnings margin of 10.5% for the three-month period ended March 31, 2022 compared to a 10.9% margin for the three-month period ended March 31, 2021.
- PLC achieved an Adjusted EBITDA margin of 25.7% for the three-month period ended March 31, 2022, a decrease of 150 bps over the prior comparable period.
- Subsequent to March 31, 2022, the Company completed the acquisition of Chancellor Funeral Home and Garden of Memories consisting of one stand-alone funeral home and one combination funeral home and cemetery property located in Byram and Florence, Mississippi, respectively.
- Subsequent to March 31, 2022, the Company also announced that it has entered into a definitive agreement to purchase substantially all of the assets of Hudson Funeral Home & Cremation Services, a stand-alone funeral home in Durham, North Carolina. The Company anticipates closing this transaction upon receipt of regulatory approval in early June 2022.
2 This is a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section of this document for more information on each non-IFRS financial measure.
Important Reminder
The Company will host a conference call to discuss its first quarter 2022 financial results on Friday, May 13, 2022. Details are as follows:
- Date: Friday, May 13, 2022
- Time: 9:30 a.m. EST
- Dial-in Number: Toll Free (888) 506-0062 | Conference ID: 367158
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 or on the Company’s website at www.parklawncorp.com.
A replay of the conference call will be available until Friday, May 27, 2022 and can be accessed as follows: Dial-in Number: Toll Free (877) 481-4010 | Conference ID: 45413. 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 two Canadian provinces and sixteen U.S. states.
Non‐IFRS Measures
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.
The Company defines Comparable Operations as business units or operating locations owned by the Company for the entire period from January 1, 2021 and ending March 31, 2022. The following tables indicate how the Company reconciles Adjusted Net Earnings, Adjusted EBITDA and their related per share amount, and Adjusted EBITDA margins to the nearest IFRS measure.
Adjusted Net Earnings
EBITDA and Adjusted EBITDA
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”, “aspirational”, “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 Hudson acquisition will close in early June, 2022; and the impact of COVID-19 on the Company’s business. 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 2022 calendar year, the CAD to USD exchange rate remains consistent, PLC is able to obtain regulatory approval or satisfy regulatory requirements for the Hudson acquisition, the acquisition closes in the anticipated timeframe, the acquisition will perform as expected following closing, PLC will be able to implement business improvements and cost savings, PLC will be able to retain key personnel, there will be no unexpected expenses occurring as a result of contemplated acquisitions, multiples 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, the environment in which PLC will operate in the future, any adjustments to operations with the ongoing COVID-19 pandemic, 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 most recent 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.
Contact Information
Daniel Millett
Chief Financial Officer
(416) 231-1462, ext. 221
