Park Lawn Corporation Announces Fourth Quarter 2022 Financial Results and Achievement of 2022 Aspirational Growth Target

TORONTO, ON / ACCESSWIRE / March 2, 2023 / Today, Park Lawn Corporation (TSX:PLC; PLC.U) ("PLC", "Park Lawn", or the "Company") announced its financial operating results for the fourth quarter ("Q4") and year ended December 31, 2022.

Financial Results from Q4 and the Year Ended 2022

J. Bradley Green, Chief Executive Officer of PLC commented, "We are pleased with our fourth quarter 2022 year-end operating results as compared to the heavily COVID-19 impacted fourth quarter and year-end 2021. While the Centers for Disease Control and Prevention identified a sharp decline in the U.S. national death during the year, our decrease in call volume was notably less than the national decline, as well as that of our peers. Further, as we experienced this change in landscape in conjunction with an inflationary and challenging macroeconomic climate, we were able to quickly adjust our operations in the short-term and are proud of how this is illustrated by our fourth quarter results. For example, we saw our same store funeral averages increase quarter-over-quarter by 1.3% despite increased inflationary pressures. Likewise, we saw an increase in our Adjusted EBITDA margin of 240 basis points from the second quarter of this year, far exceeding our own expectations to make meaningful change in this short period. This significant improvement would not have been possible without the visibility provided by our proprietary software system FaCTS™ and the hard work of our employees. We remain committed to regularly improving upon and refining our operations to maximize shareholder value."

Key Results from Q4 and the Year Ended 2022

• For the three-month period and year ended December 31, 2022, revenue grew by approximately 9.1% and 10.6%, respectively, over the comparable prior period, primarily due to acquisitions made during 2022 and 2021.
• For the three-month period and year ended December 31, 2022, revenue from Comparable Operations decreased only slightly at 2.0% and 2.3% respectively, far outperforming decreases in mortality rates.
• Fully Diluted Earnings per share attributable to PLC shareholders was $0.153 and $0.725 for the three-month period and year ended December 31, 2022, respectively, compared to $0.206 and $0.882 for the three-month period and year ended December 31, 2021, respectively.
• Adjusted Net Earnings per share attributable to PLC shareholders was $0.239 and $0.976 for the three-month period and year ended December 31, 2022, respectively, compared to $0.294 and $1.205 for the three-month period and year ended December 31, 2021, respectively.
• For the three-month period ended December 31, 2022, Net Earnings decreased 25.6% relative to the three-month period ended December 31, 2021 and decreased 9.7% over the year ended December 31, 2021.
• For the three-month period ended December 31, 2022, Adjusted EBITDA was consistent with the three-month period ended December 31, 2021, and decreased 1.8% over the year ended December 31, 2021.
• PLC achieved an Adjusted EBITDA margin of 23.0% for the three-month period and year ended December 31, 2022, respectively.
• During the quarter, the Company completed six acquisitions including the acquisition of substantially all the assets of: (1) Ertel Funeral Home & Crematory, a stand-alone funeral home located in Cortez, Colorado; (2) Brown's Cremation & Funeral Service, a stand-alone funeral home in Grand Junction, Colorado; (3) Taylor Funeral Home, a business comprised of three stand-alone funeral homes and one on-site funeral home and cemetery combination located in Delta, Cedaredge, Hotchkiss and Paonia, Colorado; (4) Muehlebach Funeral Care in Kansas City, Missouri, Skradsi-Pierce Funeral Home in Kansas City, Kansas and Assurance Cremation Society in Kansas City, Missouri, a group of businesses consisting of three stand-alone funeral homes; (5) Park Lawn Funeral Home and Memorial Park Cemetery & Green Lawn Cemetery, Park Lawn Northland Chapel and Glenridge Cemetery in Kansas City and Liberty Mutual, a business made up of one on-site funeral home and cemetery combination, one-stand-alone funeral home and one stand-alone cemetery; and (6) Schrader, Aragon & Jacoby Funeral Home, Mountain View Memorial Park and Bustard & Jacoby Funerals, Cremation, Monuments and Receptions, a group of businesses consisting of two stand-alone funeral homes and one stand-alone cemetery located in Cheyenne and Casper, Wyoming.
• In 2022, the Company successfully executed on its growth strategy by completing a total of 11 acquisitions for a total purchase price of approximately US$94,000,000. The combined transactions represent a total of 7,054 calls and 890 interments as well as the addition of 23 stand-alone funeral homes, 4 stand-alone cemeteries, and 5 on-sites. The Company also added two new geographic regions - the states of Virginia and Wyoming.
• On August 3, 2022, the Company announced the opening of Westminster Funeral & Reception Centre located at Westminster Cemetery, making this 32,100 square foot state-of-the-art facility the Company's first on-site in Toronto, Ontario. The Company anticipates that this facility will play a meaningful role in its organic growth strategy.
• Subsequent to the quarter and year end, on March 1, 2023, the Company completed and opened the Waco Memorial Funeral Home, a new-build funeral home, located on-site at Waco Memorial Park in Waco, Texas. This new on-site facility offers the first funeral home and cemetery combination in the market and is expected to provide an important part of the Company's organic growth strategy.

PLC Achieved its 2022 Aspirational Growth Target

In 2018, PLC announced a long-term aspirational goal of achieving CAD$100 million in pro forma Adjusted EBITDA[2] by the conclusion of the 2022 calendar year. The Company is proud to announce that it exceeded this aspirational growth target at the conclusion of 2022.

In response to the Company meeting this goal, Mr. Green stated, "Despite the many adverse conditions experienced during the five year period, including the COVID-19 pandemic as well as the subsequent periods since its height, we are pleased that the Company not only met, but exceeded its aspirational growth target. We look forward to further sharpening our operating acumen as we turn our focus to the achievement of our previously announced 2026 aspirational growth targets."

PLC Remains Committed to its Comprehensive Growth Strategy

Subsequent to the quarter, the Company announced it has entered into a definitive agreement to acquire substantially all of the assets of Carson-Speaks Chapel in Independence, Missouri; Speaks Buckner Chapel in Buckner, Missouri; Speaks Suburban Chapel in Independence, Missouri; and Oak Ridge Memory Gardens in Independence, Missouri, a group of businesses consisting of three stand-alone funeral homes and one stand-alone cemetery. The transaction is anticipated to close in early April 2023 following the receipt of regulatory approval.

Important Reminder

The Company will host a conference call to discuss its fourth quarter 2022 financial results on Friday, March 3, 2023. Details are as follows:

Date: Friday, March 3, 2023

Time: 9:30 a.m. EST

Dial-in Number: Toll Free (888) 506-0062 | Conference ID: 934271

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, March 17, 2023 and can be accessed as follows: Dial-in Number: Toll Free (877) 481-4010| Conference ID: 47713. 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 three Canadian provinces and eighteen U.S. states.

Non‐IFRS Measures

Adjusted Net Earnings, Adjusted EBITDA and their related per share amounts, Adjusted EBITDA margins, Acquired Operations 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 Acquired Operations as business units or operating locations acquired by the Company during the period from January 1, 2021 and ending December 31, 2022. 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 December 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