Park Lawn Corporation Announces Q1 2024 Financial Results

TORONTO, ON / ACCESSWIRE / May 9, 2024 / Today, Park Lawn Corporation (TSX:PLC)(TSX:PLC.U) (" Park Lawn " or " PLC ") announced its financial operating results for the first quarter ended March 31, 2024 (" Q1 ").

Financial Results for the Three-Month Period Ended March 31, 2024:

"We are proud of our first quarter operating results and are excited to see the hard work and efforts of our team beginning to take shape," said J. Bradley Green, Chief Executive Officer. Mr. Green further elaborated, "As you have heard in our commentary over the past few quarters, with the reshaping of our platform as a result of the disposition of certain legacy assets which was completed in December, the implementation of a refined operating model, a new and improved sales structure, the launch of a comprehensive educational platform and a stronger more robust internal backbone, Park Lawn is now poised to perform at a higher and more effective level than ever before."

Key Results from the Three-Month Period Ended March 31, 2024

• For the three-month period ended March 31, 2024, revenue decreased by 11.9% to $76,393 over the comparable prior period, primarily as a result of the disposition of certain legacy assets completed in December offset by an increase in acquired operations. On a Comparable Operations basis, revenue decreased only 2.7% over the comparable prior period, principally as a result of the decrease in mortality and large group sales in our cemeteries.
• For the three-month period ended March 31, 2024, Net Earnings increased by 14.7% to $5,247 over the comparable prior period. However, Adjusted Net Earnings for the three-month period ended March 31, 2024, decreased by 12.2% to $7,565, over the comparable prior period, primarily as a result of the disposition of legacy assets completed in December and the increased cost of financing.
• For the three-month period ended March 31, 2024, Adjusted EBITDA decreased by 4.4 % to $19,646 over the comparable prior period, primarily as a result of the disposition of legacy assets completed in December offset by a marginal decrease in Comparable Operations primarily as a result of decreases in large group sales from the Company's cemetery operations.
• For the three-month period ended March 31, 2024, Adjusted EBITDA margin increased by 200 basis points to 25.7% over the comparable prior period, primarily as a result of the disposition of lower margin businesses and operating efficiencies in the Company's funeral operations.
• For the three-month period ended March 31, 2024, Adjusted Field EBITDA margin increased by 320 basis points, or 10%, to 35.4% over the comparable prior period.
• For the three-month period ended March 31, 2024, Fully Diluted Net Earnings per share increased by 13.1% to $0.149. However, Fully Diluted Adjusted Net Earnings per share for the three-month period ended March 31, 2024, decreased by 13.6% to $0.215 over the comparable prior period.
• On February 20, 2024, the Company continued to execute on its growth strategy through the completion of the acquisition of substantially all the assets of Crippin Funeral Home located in Montrose, Colorado; Gunnison Funeral Services located in Gunnison, Colorado; and Grand View Cemetery located in Montrose, Colorado (collectively "Crippin"). The Crippin business adds two stand-alone funeral homes and one stand-alone cemetery to Park Lawn's portfolio and is expected to add approximately 576 calls, 85 placements and $703 in Adjusted EBITDA, annually.¹

¹ Adjusted Net Earnings, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Field EBITDA Margin and Adjusted Net Earnings per share diluted are a non-IFRS measure. Refer to the Non-IFRS Measures section of this news release for more information on this non-IFRS measure.

Dividend Reinvestment Plan

On May 9, 2024, the Company's Board of Directors approved the listing of an additional 500 thousand common shares issuable pursuant to the Company's amended and restated dividend reinvestment plan. The increase is subject to approval from the TSX.

Important Reminder

The Company will host a conference call to discuss its Q1 financial results on Friday, May 10, 2024. Details are as follows:

Date: Friday, May 10, 2024

Time: 9:30 a.m. EST

Dial-in Number: Toll Free (888) 506-0062 | Conference ID: 637260

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.sedarplus.ca or on the Company's website at www.parklawncorp.com.

A replay of the conference call will be available until Friday, May 24, 2024 and can be accessed as follows: Dial-in Number: Toll Free (877) 481-4010 | Conference ID: 50541. Alternatively, the conference will also be available on the Company's website at www.parklawncorp.com.

About Park Lawn Corporation:

PLC is the largest publicly traded Canadian-owned funeral, cremation and cemetery provider. PLC and its subsidiaries own and operate businesses including cemeteries, crematoria, funeral homes, chapels and event centers throughout Canada and the United States which provide a full range of services and merchandise to fulfill the desires of individuals and families seeking to honor their loved ones. Products and services can be customized to meet the personal needs of the consumer and are sold on a pre-planned basis (pre-need) or at the time of a death (at-need). PLC operates in three Canadian provinces and seventeen U.S. states. For more information about Park Lawn Corporation, please visit our website at www.parklawncorp.com.

Non‐IFRS Measures

Adjusted Net Earnings, EBITDA, Adjusted EBITDA and their related per share amounts, Adjusted EBITDA margin, Adjusted Field EBITDA, Adjusted Field EBITDA margin, 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, 2023 and ending March 31, 2024. The Company defines Comparable Operations as business units or operating locations owned by the Company for the entire period from January 1, 2023 and ending March 31, 2024.

The following tables indicate how the Company reconciles Adjusted Net Earnings, EBITDA, Adjusted EBITDA, Adjusted Field EBITDA and their related per share amount, and Adjusted EBITDA margin and Adjusted Field EBITDA margin to the nearest IFRS measure.

Adjusted Net Earnings

EBITDA and Adjusted EBITDA

Adjusted Field EBITDA