TORONTO, ONTARIO/June 26, 2023/ACCESSWIRE – Park Lawn Corporation (TSX: PLC, PLC.U) (“Park Lawn” or “PLC”) is pleased to announce that it has completed the acquisition of substantially all the assets of Cobb Funeral Chapel and Cobb Suncrest Memorial Gardens, a business consisting of one on-site funeral home and cemetery located in Moultrie, Georgia (collectively “Cobb”).
“Park Lawn has further expanded its strategic growth in the southeast United States through the addition of Cobb. The Cobb business has an exemplary reputation and has been a staple of its community for nearly fifty years. We are excited to welcome the Cobb team to the Park Lawn family,” said J. Bradley Green, Chief Executive Officer of PLC.
“Since 1974, we have proudly served Colquitt County, Georgia and its surrounding communities. The culture and values of Cobb closely align with those of Park Lawn and we are excited that our partnership allows us to continue our legacy of providing best-in-class service to our families,” said Ellen Cobb-Robinson, a former owner of Cobb.
Highlights of the transaction include:
- The addition of one (1) on-site funeral home and cemetery.
- The transaction represents 280 calls and 50 interments per year and is expected to be financed with funds from PLC’s credit facility and available cash on hand.
- The Cobb acquisition is expected to add approximately US$676,710 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 for the transaction is within PLC’s publicly-stated targeted Adjusted EBITDA multiple range for its historical transactions.
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 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 in this news release 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 Cobb acquisition will add approximately US$676,710 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 Net Earnings 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 Cobb. 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.
