TSX ABO.A and ABO.B
TORONTO, March 4 /CNW/ - Arbor Memorial Services Inc. announced today its
results for the 13 weeks ended January 25, 2009 and January 27, 2008.13 weeks ended
($Millions) 2009 2008(1)
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Revenue 58.7 56.9
Earnings before interest expense and income taxes 7.7 8.4
Net earnings from continuing operations 4.8 3.1
Net earnings 4.9 3.1
Basic and diluted earnings per share
from continuing operations ($) 0.44 0.29
Basic and diluted earnings per share ($) 0.46 0.29
(1) Restated to conform with the current year's presentation for
obtaining costs.Earnings before interest expense and income taxes ("EBIT") decreased by
$0.8 million or 9.2% from 2008 to $7.7 million. The reduction in EBIT was
mainly the result of a decrease in the cemetery division of $0.9 million due
to an increase in expenses of 6.2%, which exceeded a 1.5% increase in sales
and an increase in the loss of the corporate division of $0.5 million, which
were partially offset by an increase in EBIT of the funeral division of $0.6
million. The increase in sales in the cemetery division was lower than
historical increases. The average annual increase in cemetery sales for 2007
and 2008 was 4.2%. The 6.2% increase in expenses was partially timing related.
The decrease in earnings of the corporate division was due to a reduction in
interest income of $0.2 million, an increase in termination costs of $0.1
million and an increase in other employee costs of $0.2 million.
Net earnings in the first quarter of 2009 increased by $1.8 million or
57.8% to $4.9 million and earnings per share increased by $0.17 to $0.46 per
share compared to the first quarter of 2008. The increase was mainly due to a
higher increase in the future tax expense in 2008 of $1.8 million that
resulted from the impact of a reduction in future Federal tax rates in the
first quarter of 2008 on the net future income tax asset. Excluding future
income tax expense from both years, net earnings increased by less than $0.1
million or 0.9%. The increase in earnings was the net result of the decrease
in EBIT of $0.8 million, which was more than offset by a reduction in interest
expense of $0.5 million, an increase in net earnings from discontinued
operations and a reduction in the effective income tax rate.
Arbor Memorial Services Inc. owns 41 cemeteries, 26 crematoria, 4
reception centres located on cemetery premises and 87 funeral homes in eight
provinces of Canada.
For further information: Brian D. Snowdon, President and Chief Executive
Officer; Laurel L. Ancheta, Vice-President and Chief Financial Officer, Phone:
(416) 763-4531
