TORONTO, Aug. 13, 2020 /CNW/ - Today, Park Lawn
Corporation (TSX: PLC) ("PLC" or the "Company")
announced its results for the second quarter ("Q2") ended
June 30, 2020. The results show
strong revenue growth, with an increase of 44.6% as compared to the
same period in 2019. Net Earnings attributable to PLC shareholders
were $6,632,514 in Q2 2020 compared
to $1,458,782 in Q2 2019. On a fully
diluted per share basis, this represents $0.223 for 2020, as compared to $0.049 in 2019.
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
2019
|
|
2020
|
2019
|
Revenue
|
$
|
84,697,662
|
$
|
58,570,919
|
|
$
|
158,686,636
|
$
|
108,723,904
|
Net earnings, PLC
shareholders
|
$
|
6,632,514
|
$
|
1,458,782
|
|
$
|
7,366,571
|
$
|
4,784,029
|
Adjusted net
earnings, PLC shareholders
|
$
|
8,784,310
|
$
|
5,658,024
|
|
$
|
16,353,913
|
$
|
11,000,918
|
Adjusted EBITDA, PLC
shareholders
|
$
|
19,488,043
|
$
|
13,013,852
|
|
$
|
36,578,130
|
$
|
24,750,249
|
Per share amounts
atributable to
|
|
|
|
|
|
PLC shareholders -
diluted
|
|
|
|
|
|
Net
earnings
|
$
|
0.223
|
$
|
0.049
|
|
$
|
0.247
|
$
|
0.180
|
Adjusted net
earnings
|
$
|
0.295
|
$
|
0.190
|
|
$
|
0.549
|
$
|
0.414
|
Adjusted
EBITDA
|
$
|
0.654
|
$
|
0.438
|
|
$
|
1.229
|
$
|
0.932
|
"Thanks to the hard work, dedication and commitment of our team,
we had an exceptional second quarter in a challenging
environment. As we continue to navigate through trying times,
our integration efforts established a strong foundation which has
allowed us to quickly adapt to a changing operating environment, as
well as provide new and innovative solutions to serve our client
families. We have grown together as an organization and are
poised to continue with our projected growth targets," stated
Brad Green, CEO.
Second Quarter Financial Highlights
- Revenue for the quarter was $84.7
million compared to $58.6
million in Q2 2019 which is an increase of 44.6%. The
currency adjusted growth in revenue from comparable business units
was 7.3%. This significant increase in revenue was due, in part, to
the successful integration of acquisitions completed in previous
quarters.
- Earned $19.5 million in Adjusted
EBITDA this quarter representing $0.654 per common share, an increase of 49.7% and
49.3% respectively over the same quarter last year.
- Adjusted Net Earnings for the second quarter increased by 55.3%
to $8.8 million from $5.7 million in same quarter last year. Adjusted
Net Earnings Per Share for the second quarter increased 55.3% to
$0.295 from $0.190 for the same period last year.
- Balance sheet strengthened as a result of the recently
completed $86.3 million Senior
Unsecured Debenture Financing. Net proceeds from financing were
used to pay down credit facility to approximately $100 million. With $34
million in cash on hand, this gives the Company $175 million in liquidity to pursue its growth
objectives. At quarter end the Company's leverage ratio was 2.79
times. After closing the Debenture financing and paying down credit
facility this leverage ratio was reduced to 1.5 times.
COVID-19 Update
In North America, we all
continue to adjust to seemingly daily changes in our lives as a
result of the COVID-19 pandemic. 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. The increase in revenue from comparable business
operations during the quarter was related to both the cemetery and
funeral businesses. The Company's businesses located in
markets such as Colorado,
Michigan and New Jersey experienced an overall increase in
at-need services associated with the pandemic. However, there
were other markets that saw an increase in at-need services that
may or may not have been related to COVID-19.
At the same time, comparable pre-need cemetery revenue was down
during the quarter as many regions were faced with stay at home
orders that limited the ability to effectively close sales.
Despite this, pre-need sales greatly improved later in the quarter
as stay at home orders were lifted and the trigger effect provided
our sales counselors a strong story to tell. Irrespective of
any particular market's challenges, our businesses remained open
and were prepared to meet customers under restricted
circumstances.
As the pandemic began to unfold in early 2020 it was unclear as
to the severity or the duration of COVID-19 including the financial
impact it might have on the Company in the weeks and months ahead.
With that in mind, the Company implemented contingency planning
procedures in early March to limit the financial risk to our
business. As the quarter progressed, however, we realized that the
pandemic was not expected to impact the overall financial
performance of the business at the present time in a negative
way. Accordingly, certain measures that were adopted out of
an abundance of caution in March 2020
were relaxed, including the approval of certain capital expenditure
programs and the re-engagement of our acquisition program.
"The outbreak of this contagious illness continues to pose a
threat to the health and economic wellbeing of our employees, their
families and the families we serve. As a result, our constant
focus is on keeping each of these people safe by quickly adapting
to and adopting appropriate health and safety requirements as the
health landscape continues to change. Our team has worked
tirelessly and, at times, heroically, on the front lines.
Without that dedication, these exceptional results would not have
been possible. And for that, I am truly impressed and
eternally grateful," stated Mr. Green.
Important Reminder
The Company will host a conference call to discuss its Q2 2020
financial results on Friday, August
14, 2020. Details are as follows:
- Date: Friday, August 14, 2020
- Time: 9:30am EST
- Dial-in Number: Local (647) 427-7450 | Toll Free (888) 231-8191
| Conference ID: 5697518
To ensure your participation, please join approximately five
minutes prior to the scheduled start of the conference call.
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, and Adjusted EBITDA margins, 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 business and the Company's ability to emerge from
these uncertain times well positioned to grow the Company. 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