Park Lawn Corporation Announces Q1 2023 Results

TORONTO, ON / ACCESSWIRE / May 11, 2023 / Today, Park Lawn Corporation (TSX:PLC; PLC.U) ("PLC", "Park Lawn", or the "Company") announced its financial operating results for the first quarter ("Q1") ended March 31, 2023.

Financial Results for the Three-Month Period Ended March 31, 2023^[1]:

J. Bradley Green, Chief Executive Officer of PLC, commented, "We are pleased with our operating performance from the first quarter as it demonstrates strength against a tough comparison under challenging macroeconomic conditions. As the impacts of COVID-19 wane, our focus continues to be on implementing incremental improvements in our operations and making selective and strategic growth decisions that drive shareholder value. Overall, for the quarter, this strategy resulted in a slight increase in our average revenue per call on the funeral home side and continued strong pre-need cemetery sales from our larger cemetery businesses." Mr. Green continued, "On the growth front, during the quarter and shortly thereafter, we opened Waco Memorial Funeral Home in Waco, Texas which adds another on-site to our portfolio, as well as closed two strategic acquisitions adding businesses in Iowa and Nebraska and further expanding our presence in Missouri. We have a strong pipeline and we remain confident in our opportunities for continued strategic growth in 2023."

Key Results from the Three-Month Period Ended March 31, 2023:

• Revenue increased by approximately 4% to $86.7M primarily as a result of Acquired Operations as compared to the three-month period ended March 31, 2022.
• Revenue from Comparable Operations decreased by approximately 5.6% over the prior heavily impacted COVID-19 three-month period ending March 31, 2022.
• Fully Diluted Earnings per share was $0.132 compared to $0.250 for the three-month period ended March 31, 2022.
• Fully Diluted Adjusted Net Earnings per share was $0.249 compared to $0.321 for the three-month period ended March 31, 2022.
• Net Earnings was $4,576,146 compared to $8,702,018 for the three-month period ended March 31, 2022.
• Adjusted EBITDA was $20,541,390 compared to $21,415,073 for the three-month period ended March 31, 2022.
• PLC achieved an Adjusted EBITDA margin of 23.7%, a decrease of 200 bps over the three-month period ended March 31, 2022.
• 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 play an important role in the Company's organic growth strategy.
• On March 13, 2023, the Company completed the acquisition of substantially all the assets of Meyer Brothers Funeral Homes, a business consisting of five stand-alone funeral homes located in Sioux City, Iowa, South Sioux City, Nebraska and Ponca, Nebraska (collectively "Meyer"). The Meyer acquisition is expected to add $1,843,734 in Adjusted EBITDA annually and increases Park Lawn's geographic presence by adding businesses in Iowa and Nebraska.
• Subsequent to the end of the quarter, on April 10, 2023, the Company completed the acquisition of substantially all 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 (collectively "Speaks"). The Speaks acquisition expands Park Lawn's Kansas City metropolitan market by adding three stand-alone funeral homes and one stand-alone cemetery and is expected to add $2,247,759 in Adjusted EBITDA annually.
• Also subsequent to March 31, 2023, the Company filed a well-known issuer base shelf prospectus to preserve maximum flexibility as it continues to execute on its growth strategy.

Important Reminder

The Company will host a conference call to discuss its first quarter 2023 financial results on Friday, May 12, 2023. Details are as follows:

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, May 26, 2023 and can be accessed as follows: Dial-in Number: Toll Free (877) 481-4010| Conference ID: 48311. 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 nineteen U.S. states.

Non‐IFRS Measures

Adjusted Net Earnings, Adjusted EBITDA and their related per share amounts, Adjusted EBITDA margins, Adjusted Field 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, 2022 and ending March 31, 2023. The Company defines Comparable Operations as business units or operating locations owned by the Company for the entire period from January 1, 2022 and ending March 31, 2023.

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

Adjusted Net Earnings

EBITDA and Adjusted EBITDA

Adjusted Field EBITDA