TSX ABO.A and ABO.B
TORONTO, June 3 /CNW/ - Arbor Memorial Services Inc. announced today its
results for the 13 and 26 weeks ended April 26, 2009 and April 27, 2008.
13 weeks ended 26 weeks ended
($Millions) 2009 2008(1) 2009 2008(1)
---- ---- ---- ----
Revenue 60.0 58.1 118.5 114.6
Earnings before interest expense and
income taxes 7.5 8.5 15.1 16.8
Net earnings from continuing operations 4.9 5.3 9.6 8.4
Net earnings 4.9 5.6 9.8 8.7
Basic and diluted earnings per share
from continuing operations ($) 0.45 0.49 0.89 0.78
Basic and diluted earnings per share ($) 0.46 0.52 0.92 0.81
(1) Restated to conform with the current period's presentation for
obtaining costs and for discontinued operations.
Earnings before interest expense and income taxes ("EBIT") in the second
quarter of 2009 decreased by $1.0 million or 11.3% from 2008 to $7.5 million.
The reduction in EBIT was the result of a decrease in the funeral division of
$0.5 million due to an increase in expenses of 4.5%, which exceeded a 1.5%
increase in revenue, and an increase in the loss of the corporate division of
$0.4 million. The increase in revenue in the funeral division was lower than
historical increases due to a decline in the number of services performed of
2.8%. The increase in the loss of the corporate division was due mainly to a
reduction in interest income of $0.3 million due to a reduction in the average
cash balance and lower rates of interest.
Net earnings and earnings per share in the second quarter of 2009
decreased by $0.7 million or 11.7% to $4.9 million and $0.06 to $0.46 per
share respectively. The decrease was primarily due to a reduction in EBIT of
$1.0 million or 11.3%, which was partially offset by a reduction in interest
expense of $0.4 million or 43.8%. The reduction in EBIT was primarily the
result of a decline in the number of services performed in the funeral
division of 2.8% and a reduction in other income in the corporate division.
EBIT was $15.1 million for the first 26 weeks of 2009, which represented
a decrease of $1.8 million or 10.5% from the first 26 weeks of 2008. Of the
$1.8 million decrease, $0.9 million occurred in the cemetery division and $0.9
million occurred in the corporate division. These declines were due to an
increase in expenses that exceeded the increase in revenue and lower interest
income, respectively, compared to 2008. The increase in expenses in the
cemetery division that exceeded the increase in revenue was driven by a higher
cost of sales percentage, higher obtaining costs based on contracts written in
the period and higher administrative employee costs, including an increase of
$0.3 million in termination costs. The lower interest income in the corporate
division was due to a reduction in the average cash balance and lower rates of
Net earnings and earnings per share in the first 26 weeks of 2009
increased by $1.1 million or 13.2% to $9.8 million and by $0.11 to $0.92 per
share respectively compared to the first 26 weeks of 2008. The increase was
attributable to lower income taxes of $2.1 million or 32.2% and lower interest
expense of $0.8 million or 44.4%, which were partially offset by a reduction
in EBIT of $1.8 million or 10.5%.
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:
For further information: Brian D. Snowdon, President and Chief Executive
Officer, Laurel L. Ancheta, Vice-President and Chief Financial Officer, Phone: