TORONTO, Nov. 12, 2020 /CNW/ - Today, Park Lawn
Corporation (TSX: PLC) ("PLC" or the "Company")
announced its results for the third quarter ("Q3") ended
September 30, 2020. PLC had another
strong quarter achieving double digit revenue, net earnings,
Adjusted Net Earnings and Adjusted EBITDA growth which is
summarized as follows:
Selected Financial
Information
|
Three Months Ended
September 30
|
|
Nine Months Ended
September 30
|
2020
|
2019
|
|
|
2020
|
|
|
2019
|
Revenue
|
$
|
83,791,627
|
$
66,578,738
|
|
|
$
|
242,478,263
|
|
$
|
175,302,642
|
Net
earnings,
|
$
|
5,403,038
|
$
1,579,106
|
|
|
$
|
12,769,609
|
|
$
|
6,363,135
|
PLC
shareholders
|
Adjusted net
earnings,
|
$
|
7,748,660
|
$
6,581,920
|
|
|
$
|
24,102,573
|
|
$
|
17,582,838
|
PLC
shareholders
|
Adjusted
EBITDA,
|
$
|
19,102,935
|
$
15,106,997
|
|
|
$
|
55,681,065
|
|
$
|
39,857,246
|
PLC
shareholders
|
|
|
|
|
|
|
|
|
|
|
Per share amounts
attributable to
|
|
|
|
|
|
|
|
|
|
|
PLC shareholders -
diluted
|
Net
earnings
|
$
|
0.180
|
$
0.053
|
|
|
$
|
0.428
|
|
$
|
0.231
|
Adjusted net
earnings
|
$
|
0.259
|
$
0.221
|
|
|
$
|
0.808
|
|
$
|
0.637
|
Adjusted
EBITDA
|
$
|
0.638
|
$
0.507
|
|
|
$
|
1.866
|
|
$
|
1.445
|
"We continue to demonstrate a high level of growth and strong
performance, and the third quarter was no exception. Even
though our work environment remains a challenge, we viewed this
quarter as an opportunity to shift our focus back to our core
operating objectives and resume our efforts in working towards our
stated growth objectives. Our team remains steadfast in its
commitment to safely provide the highest level of care to the
families and communities we serve," stated Brad Green, CEO.
Third Quarter Financial Highlights
- Revenue for the quarter was $83.8
million compared to $66.6
million in Q3 2019 which represents an increase of
25.9%.
- Revenue Growth from Comparable Business Units was approximately
11.1% for Q3 2020 relative to Q3 2019.
- Adjusted Net Earnings increased to $7.7
million from $6.6 million
during Q3 2019, and Adjusted Net Earnings per share increased to
$0.259 from $0.221 for Q3 2019.
- PLC earned Adjusted EBITDA of $19.1
million or $0.638 per share
compared to $15.1 million or
$0.507, an increase of 26.5% and
25.8%, respectively, over Q3 2019.
- PLC achieved an Adjusted EBITDA margin of 23% for the
three-month period ended September 30,
2020, consistent with the year to date Adjusted EBITDA
margin.
- Balance sheet strengthened as a result of the recently
completed $86.3 million Senior
Unsecured Debenture Financing. The proceeds were used to pay
down PLC's credit facility to approximately $138.8 million. As at September 30, 2020 PLC had approximately
$157.3 million in liquidity to pursue
its growth objectives and a current leverage ratio of 1.48
times.
- On October 1, 2020, PLC completed
the acquisition of Bowers Funeral Service Ltd, a three-location
funeral home business in British
Columbia.
- On November 2, 2020, PLC
announced the acquisition of J.F. Floyd Mortuary, Crematory and
Cemeteries, consisting of four funeral homes (3 of which are
on-sites), nine cemeteries and a stand-alone crematory. The
addition of these businesses strengthen PLC's operational footprint
in South Carolina and provides a
platform from which it can continue to expand into the southeast
region of the U.S.
COVID-19 Update
As previously noted, at the inception of the pandemic, the
Company was fortunate to have implemented specific operational
directives in advance of governmental restrictions which allowed us
to more quickly address the impact of the pandemic on our business.
And, while we continue to make adjustments as local restrictions
loosen or tighten, the Company has adapted to the current
environment and demonstrated its ability to act swiftly and nimbly
in the face of disruption. Although we continued to see
an increase in revenue from comparable business operations during
the quarter related to both the cemetery and funeral businesses,
this has stabilized somewhat from the second quarter. Many of
the Company's businesses throughout the U.S. experienced positive
growth from both at-need sales, that may or may not be directly or
indirectly related to COVID-19, and pre-need sales.
Comparable pre-need cemetery revenue significantly increased
during the quarter as many regions relaxed stay at home orders and
the trigger effect of the pandemic created a compelling platform
for our sales counselors. Irrespective of any particular
market's challenges, our businesses embraced the overall change to
the landscape and remained open and prepared to meet customers
under restricted or alternative circumstances.
As the Company has settled into the COVID-19 environment, we
have gained confidence and comfort in our contingency planning
procedures. With stabilization measures in place, we recognized the
Company's ability to shift focus back to its core strategy –
development and growth as North
America's premier funeral, cremation and cemetery
provider. Accordingly, we fully re-engaged in our stated
growth objectives both through our acquisition program and our
internal capital expenditure program.
"Despite the confidence in and implementation of our operational
directives, we continue to closely monitor COVID-19 as the
resurgence of cases throughout North
America continues to pose a threat to the health and
economic wellbeing of our employees, their families and the
families we serve. As the circumstances evolve, our principal
focus is ensuring the safety of each of these individuals to the
best of our ability," said Mr. Green. Further, Mr. Green
continued, "Our team members consistently exhibit an unwavering
commitment to their job and the families we serve, which is
certainly not lost on this executive management team. Without
them, none of this would have been possible and I hope that is not
lost on our investors."
Important Reminder
The Company will host a conference call to discuss its Q3 2020
financial results on Friday, November
13, 2020. Details are as follows:
- Date: Friday, November 13,
2020
- Time: 9:30am EST
- Dial-in Number: Local (647) 427-7450 | Toll Free (888) 231-8191
| Conference ID: 7388398
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
November 20, 2020 and can be accessed
as follows: Dial-in Number: Local (416) 849-0833 | Toll Free (855)
859-2056 | Conference ID: 7388398. 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.
Non–IFRS Measures
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 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 the impact of
COVID-19 on the Company's business; the Company's ability to adapt
to the current environment; and the Company's ability to shift
focus back to the Company's core strategy and re-engage in its
stated growth objectives both through its acquisition program and
its internal capital expenditure program. The forward-looking
statements in this news release are based on certain assumptions,
including that 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 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, the
environment in which the PLC will operate in the future, the
anticipated adjustments to operations in the COVID-19 pandemic,
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, 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.
SOURCE Park Lawn Corporation