TORONTO, March 30, 2021 /CNW/ - Today, Park Lawn
Corporation (TSX: PLC) ("PLC" or the "Company")
announced its results for the fourth quarter ("Q4") and year
ended December 31, 2020. PLC
finished 2020 with a powerful performance in Q4, which included
achieving significant growth in revenue, net earnings, Adjusted Net
Earnings, Adjusted EBITDA, and Adjusted EBITDA margin:
|
For the three-month
period ended
|
For the year
ended
|
|
December 31,
2020
|
December 31,
2019
|
% Increase
|
December 31,
2020
|
December 31,
2019
|
% Increase
|
Total
Revenue
|
$93,274,216
|
$68,956,490
|
35%
|
$334,152,978
|
$244,259,132
|
37%
|
Net
Earnings(1)
|
$6,260,955
|
$543,706
|
1052%
|
$19,030,564
|
$6,906,841
|
176%
|
Adjusted Net
Earnings(1)
|
$10,522,986
|
$4,776,840
|
120%
|
$34,625,559
|
$22,359,678
|
55%
|
Adjusted
EBITDA(1)
|
$24,181,865
|
$13,397,500
|
81%
|
$79,862,930
|
$53,254,746
|
50%
|
Adjusted EBITDA
Margin
|
26.1%
|
19.5%
|
6.6%
|
24.1%
|
22.0%
|
2.1%
|
(1)
Attributable to PLC Shareholders
|
|
|
|
|
|
"Despite the adversities posed by COVID-19, PLC finished the
year with the strongest fourth quarter it has seen in its history.
Not only did we see a tremendous financial performance with
double-digit plus growth across the board, but we also witnessed
how the integration of our legacy businesses brought the Company
together as one cohesive operating unit. The ability to
persevere in 2020's challenging environment demonstrates not only
the capability of our organization but, more importantly, the
courage, dedication and commitment of each individual of our team
in honorably serving their communities and our families," stated
Brad Green, CEO. Mr. Green
continued, "I am immensely proud of our frontline team and grateful
for the sacrifices that they made in providing our families with
the opportunity to care for their loved ones."
Highlights from 2020 include:
- For the three-month period and year ended December 31, 2020, revenue grew by approximately
35% and 37%, respectively, over the comparable prior period,
primarily due to acquisitions made during 2020 and 2019, as well as
increased demand for funeral and cemetery products and
services.
- For the three-month period and year ended December 31, 2020, revenue growth from comparable
business units was 20.9% and 10.8% respectively.
- Adjusted Net Earnings per share attributable to PLC
shareholders was $0.351 and
$1.158 for the three-month period and
year ended December 31, 2020,
respectively, compared to $0.160 and
$0.795 for the three-month period and
year ended December 31, 2019,
respectively.
- For the three-month period and year ended December 31, 2020, Adjusted EBITDA grew 81% and
50%, respectively, over the three-month period and year ended
December 31, 2019.
- Park Lawn achieved an Adjusted
EBITDA margin of 26.1% and 24.1% for the three-month period and
year ended December 31, 2020,
respectively, an increase of 6.6% and 2.1% over the three-month
period and year ended December 31,
2019.
- On January 31, 2020, the Company
completed the acquisition of Family Legacy and Harpeth Hills
establishing a strong presence in the middle Tennessee market. The businesses consist of
four combination funeral home and cemetery properties, seven
stand-alone funeral homes, and two stand-alone cemeteries. The
businesses perform approximately 3,000 funeral and 1,000 interments
per year.
- In July of 2020, the Company strengthened its balance sheet by
successfully completing an $86.3
million Senior Unsecured Debenture Financing. Net proceeds
from the financing were used to pay down PLC's credit facility and
create liquidity for future growth. As at December 31, 2020, PLC's leverage ratio was 1.55
times based on the terms of its credit facility.
- The Company greatly lessened the impact of the COVID-19
pandemic on its business operations by initiating highly effective
operational directives to protect the safety and well-being of its
team members and the families it serves. Likewise, the Company also
implemented new technology and alternative means by which it could
effectively meet jurisdictional limitations on gatherings but also
provide families with a meaningful way to honor their loved
ones.
- Although initially placed on hold as a result of the COVID-19
pandemic, the Company was able to re-engage in its growth
initiatives through the strategic acquisition of two businesses in
October and November 2020,
respectively – Bowers Funeral Service Ltd. (a three location
funeral home business in British
Columbia) and J.F. Floyd Mortuary, Crematory and Cemeteries
(consisting of three combination funeral home and cemetery
properties, one stand-alone funeral home, six stand-alone
cemeteries and one stand-alone crematory).
- The Company has effectively completed the integration of its
legacy acquisitions.
PLC Aggressively Pursues its Growth Targets by Expanding its
Presence in Four Key Markets in the U.S.
Prior to the end of Q4 2020, PLC purchased a bolt-on funeral
home in Texas, and subsequent to
the quarter and year-end, PLC has executed a series of purchase
agreements committing to expand its presence in three additional
U.S. markets:
Texas
Effective as of December 15, 2020,
PLC purchased substantially all of the assets of Winscott Funeral
Service Corporation, a single funeral home strategically located in
Benbrook, Texas (the "Winscott
Business"). The Winscott Business is a bolt-on to PLC's
presence in the Dallas/Fort Worth
area.
Wisconsin
Park Lawn has entered into a
definitive agreement to purchase substantially all of the assets of
Wichmann Funeral Home & Crematory, Inc., BDB Company LLP and
312 Milwaukee Street, LLC in Appleton, Menasha, Kaukauna and Kimberly, Wisconsin (collectively the
"Wichmann Businesses"). The Wichmann Businesses consist of
five funeral homes, two crematoria and one cremation business which
complement PLC's existing operations in and around the Madison
area. Following regulatory approval, the transaction is
anticipated to close on March 31,
2021.
North Carolina
PLC has entered into a definitive agreement to purchase
substantially all of the assets of West Funeral Home, Inc., West
Monument Company and Cemetery, Inc. and Sky
View Memorial Park, Inc., in Asheville and Weaverville, North Carolina (collectively the
"West Businesses"). The West Businesses consist of one
funeral home, three cemeteries and one monument company and
complement PLC's existing North
Carolina operations. Following required regulatory
approvals, the transaction is anticipated to close towards the end
of April 2021.
Tennessee
PLC has entered into a definitive agreement to purchase all of
the issued and outstanding membership interests of Cremation
Society of Tennessee and Family
Care Services, LLC, as well as all of the issued and outstanding
stock of Polk Memorial Gardens Corporation and Williams Funeral
Home, Inc. with businesses located in Columbia, Mt.
Pleasant and Pulaski,
Tennessee (collectively the "Williams Businesses").
The Williams Businesses consist of two funeral homes, three
cemeteries and one cremation business. The addition of the
Williams businesses greatly expands PLC's presence in the middle
Tennessee market which is widely
known as one of the fastest growing regions in the United
States. Following satisfaction of regulatory requirements,
the transaction is anticipated to close at the end of April 2021.
The combined transactions represent 1,659 calls and 456
interments per year and have been or are expected to be financed
with funds from the Company's credit facility and available cash on
hand. Once all of these transactions close and the businesses
are fully integrated, the combination of the West, Wichmann,
Williams and Winscott Businesses are expected to add approximately
US$3.6M in EBITDA. The agreed
upon purchase price multiples for each of these transactions are
within PLC's publicly-stated targeted EBITDA multiple ranges for
transactions of this nature.
Important Reminder
The Company will host a conference call to discuss its 2020
financial results on Wednesday, March
31, 2021. Details are as follows:
- Date: Wednesday, March 31,
2021
- Time: 9:30 a.m. EST
- Dial-in Number: Local (647) 427-7450 | Toll Free (888) 231-8191
| Conference ID: 8367200
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
April 7, 2021 and can be accessed as
follows: Dial-in Number: Local (416) 849-0833 |
Toll Free (855) 859-2056 | Conference ID: 8367200.
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 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",
"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 operating environment; the growth targets that PLC
aspires to achieve by the end of 2022; the Company's intention to
finance the acquisition of the West, Wichmann and Williams
Businesses with funds from the Company's credit facility and
available cash on hand; the expected timing for closing of such
acquisitions; and the expected impact of such acquisitions on
EBITDA. The forward-looking statements in this news release
are based on certain assumptions, including that the Company will
be able to complete the pending acquisitions in the time period
contemplated, recent and pending 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, any
adjustments to operations with the ongoing 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