Results show strong year-over-year revenue and adjusted EBITDA growth
TORONTO, May 11, 2017 /CNW/ - Today, Park Lawn Corporation (TSX: PLC) ("PLC") released its first quarter results for 2017 ("Q1 2017"). These results show strong revenue growth across all of PLC's business lines.
PLC's revenue increased year-over-year by 66.7% to $18,802,424 in Q1 2017 as compared to $11,282,305 in the first quarter of 2016 ("Q1 2016"). Excluding the businesses acquired in Q1, revenue from PLC's comparable businesses grew 4.6% in Q1 2017 compared to Q1 2016.
At the same time, net earnings attributable to PLC shareholders decreased to $1,297,529 in Q1 2017 from $1,386,616 in Q1 2016. On a fully-diluted per share basis, net earnings attributable to PLC shareholders was $0.117 in Q1 2017 compared with $0.217 for the same period in 2016.
"PLC continued to show strong operating results for the first quarter of 2017. We expect to see the short-term dilution of our per share metrics improve as we deploy the remaining cash from our 2016 bought deal financing," said Chairman & Chief Executive Officer Andrew Clark.
As with previous reporting periods, net earnings have been impacted by certain one-time, non-recurring or non-cash revenue and expense items. After accounting for the impact of these one-time items;
- Adjusted Net Earnings for Q1 2017 increased by 52.0% to $1,705,857 from $1,122,056 in Q1 2016.
- Adjusted EBITDA attributable to PLC shareholders for Q1 2017 was $2,486,426 compared to $1,563,899 in Q1 2016, which represents a year-over-year increase of 59.0%.
Following the November 2016 financing, the number of outstanding shares increased by 35%, which management believes will continue to create a short term dilutive effect until all capital has been fully invested. As such;
- Adjusted Net Earnings per fully-diluted share was $0.153 in Q1 2017 compared to $0.176 in Q1 2016.
- Q1 Adjusted EBITDA per fully-diluted share for Q1 2017 was $0.224 compared to $0.245 in Q1 2016.
Q1 2017 also saw continued acquisitions, including:
- Reynolds Funeral Home and Turner Family Funeral Home Inc. in Bracebridge and Gravenhurst, ON
- Jennett Funeral & Cremation Centre Ltd. and Innisfil Funeral Home Limited in Barrie and Innisfil, ON
- Providence Funeral Homes & Crematorium and Credible Cremations Services in Penticton and Summerland, BC.
In addition, PLC acquired TCS Funeral Services, a business-to-business service provider in the funeral industry which operates across Ontario, on May 4, 2017.
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 65 businesses including cemeteries, crematoria, funeral homes, chapels, planning offices and a transfer service. PLC operates in Ontario, Quebec, Manitoba, Saskatchewan, British Columbia & Michigan.
Adjusted Net Earnings, Adjusted Net Earnings per fully-diluted share, Adjusted EBITDA attributable to PLC shareholders and Adjusted EBITDA per fully-diluted share 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. Please see the Company's most recent management's discussion and analysis for how the Company reconciles such measures to the nearest IFRS measure.
Cautionary Statement Regarding Forward-Looking Information
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of PLC and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate", "pro-forma" and other similar expressions. These statements are based on PLC's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the improvement of per share metrics and the deployment of capital. The forward-looking statements in this news release are based on certain assumptions, and they are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in PLC's annual information form available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, PLC assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Park Lawn Corporation
For further information: Andrew Clark, Chief Executive Officer, 416-231-1462; Joseph Leeder, Chief Financial Officer, 416-231-1462; Suzanne Cowan, VP, Business Development & Corporate Affairs, 416-231-1462, [email protected]