Canada NewsWire
TORONTO, March 3, 2022
TORONTO, March 3, 2022 /CNW/ - Today, Park Lawn Corporation (TSX: PLC) ( TSX: PLC.U) ("PLC" or the "Company") announced its results for the fourth quarter ("Q4") and year ended December 31, 2021. The Company finished the year with a solid performance achieving strong growth in Net Revenue, Net Earnings and Adjusted Net Earnings1:
|
For the three-month period ended |
|
For the year ended |
||||
|
December 31, |
December 31, |
% Increase |
|
December 31, |
December 31, |
% Increase |
Net Revenue |
$99,484,580 |
$90,366,948 |
10% |
|
$369,540,232 |
$323,430,108 |
14% |
Net Earnings* |
$8,959,448 |
$6,260,955 |
43% |
|
$34,866,218 |
$19,030,564 |
83% |
Adjusted Net Earnings*1 |
$12,791,532 |
$10,522,986 |
22% |
|
$47,686,548 |
$34,625,559 |
38% |
Adjusted EBITDA*1 |
$25,151,056 |
$24,181,865 |
4% |
|
$95,643,804 |
$79,862,930 |
20% |
Adjusted EBITDA Margin*1 |
25.3% |
27.0% |
(170) bps |
|
25.9% |
24.9% |
100 bps |
*Attributable to PLC Shareholders |
"A solid fourth quarter capped yet another strong year of financial performance and growth at PLC. As anticipated, we continued to see a lessening effect of COVID-19 year-over-year in the communities we serve; however, we still had strong earnings growth over a very difficult comparable with the fourth quarter of 2020. We attribute this to our frontline team's ability to continue to meet the evolving needs of our families," stated J. Bradley Green, Chief Executive Officer. Mr. Green continued, "Additionally, the acquisition of three premier independent groups of businesses in the fourth quarter is further evidence that PLC's growth years are in front of us, and not behind us."
________________________________ |
1 This is a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section of this document for more information on each non-IFRS financial measure. |
Highlights from Q4 and the Year Ended 2021
For the three-month period and year ended December 31, 2021, net revenue grew by approximately 10.1% and 14.3%, respectively, over the comparable prior period, primarily due to acquisitions made during 2021 and 2020.
PLC Continues to Actively Pursue its Growth Strategy and Announces a New Long-Term Aspirational Target
In 2018, PLC announced a long-term aspirational goal of achieving CAD$100 million (approximately USD$79 million) in pro forma Adjusted EBITDA by the conclusion of the 2022 calendar year. While the 2022 calendar year has just begun, before considering the impact of any potential future acquisitions, the Company expects to modestly exceed the previously announced 2018 growth target.
Looking beyond 2022, PLC has set a new five-year long-term aspirational financial target to achieve by the conclusion of the 2026 calendar year. More specifically, PLC has set an aspirational growth target of achieving a total of US$150 million of pro forma Adjusted EBITDA by the end of 2026 translating into Adjusted Net Earnings exceeding US$2.00 per share.
Mr. Green elaborated on this new aspirational target by stating, "PLC continues to execute its growth strategy at a high level both through organic growth opportunities as well as by partnering with premier independent businesses. At the same time, PLC remains dedicated to its unique operational approach and is committed to delivering a consistent performance in the near term." Mr. Green continued, "It was our laser focus on the above that allowed us to effectively reach the growth targets announced in 2018 a year earlier than anticipated, and it is that same intense focus that will allow us to come close to doubling the size of PLC in the next five years."
To date, PLC's 2018 long-term aspirational targets have helped the Company achieve the following significant financial milestones between June 30, 2018 and December 31, 2021:
An increase in market capitalization from $566M on June 30, 2018 to $1.444B as at December 31, 2021;
Important Reminder
The Company will host a conference call to discuss its fourth quarter 2021 financial results on Friday, March 4, 2022. Details are as follows:
Date : |
Friday, March 4, 2022 |
|
|
Time : |
9:30 a.m. EST |
|
|
Dial-in Number : |
Toll Free (888) 506-0062 | Conference ID: 490276 |
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, March 18, 2022 and can be accessed as follows: Dial-in Number: Toll Free (877) 481-4010| Conference ID: 44691. 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 sixteen U.S. states.
Non
–
IFRS Measures
Adjusted Net Earnings, Adjusted EBITDA and their related per share amounts, Adjusted EBITDA margins, 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 following tables indicate how the Company reconciles Adjusted Net Earnings, Adjusted EBITDA and their related per share amount, and Adjusted EBITDA margins to the nearest IFRS measure.
Adjusted Net Earnings
Three Months Ended December 31,
2021
2020
Net Earnings
$
8,959,448
$
6,260,955
Adjusted for the impact of:
Amortization of intangible assets
374,879
601,376
Share based compensation
1,342,058
1,501,744
Acquisition and integration costs
2,590,640
1,729,060
Other (income) expenses
422,592
1,260,683
Tax effect on the above items
(898,085)
(830,832)
Adjusted Net Earnings, PLC shareholders
$
12,791,532
$
10,522,986
Adjusted Net Earnings - per share
Basic
$
0.375
$
0.352
Diluted
$
0.371
$
0.351
Weighted Average Shares
Basic
34,105,883
29,876,804
Diluted
34,483,191
29,999,849
Twelve Months Ended December 31,
2021
2020
Net Earnings
$
34,866,218
$
19,030,564
Adjusted for the impact of:
Amortization of intangible assets
1,753,930
2,448,031
Share based compensation
4,774,511
5,270,069
Acquisition and integration costs
7,187,802
6,538,806
Other (income) expenses
1,700,635
4,588,323
Tax effect on the above items
(2,596,548)
(3,250,234)
Adjusted Net Earnings, PLC shareholders
$
47,686,548
$
34,625,559
Adjusted Net Earnings - per share
Basic
$
1.533
$
1.165
Diluted
$
1.511
$
1.158
Weighted Average Shares
Basic
31,111,308
29,716,980
Diluted
31,549,563
29,894,399
EBITDA and Adjusted EBITDA
Three Months Ended December 31,
2021
2020
Earnings from operations
$
15,018,452
$
13,283,003
Adjusted for the impact of:
Finance costs
2,110,114
2,610,030
Depreciation and amortization
4,015,598
4,073,309
Amortization of cemetery property
2,664,834
2,908,059
Non-controlling interest
-
(194,280)
EBITDA, PLC shareholders
23,808,998
22,680,121
Share based compensation
1,342,058
1,501,744
Adjusted EBITDA, PLC shareholders
$
25,151,056
$
24,181,865
EBITDA, PLC shareholders - per share
Basic
$
0.698
$
0.759
Diluted
$
0.690
$
0.756
Adjusted EBITDA, PLC shareholders - per share
Basic
$
0.737
$
0.809
Diluted
$
0.729
$
0.806
Weighted Average Shares Outstanding
Basic
34,105,883
29,876,804
Diluted
34,483,191
29,999,849
Twelve Months Ended December 31,
2021
2020
Earnings from operations
$
57,721,963
$
40,691,482
Adjusted for the impact of:
Finance costs
9,580,697
9,853,791
Depreciation and amortization
14,778,000
15,774,272
Amortization of cemetery property
9,023,848
8,915,555
Non-controlling interest
(235,215)
(642,239)
EBITDA, PLC shareholders
90,869,293
74,592,861
Share based compensation
4,774,511
5,270,069
Adjusted EBITDA, PLC shareholders
$
95,643,804
$
79,862,930
EBITDA, PLC shareholders - per share
Basic
$
2.921
$
2.510
Diluted
$
2.880
$
2.495
Adjusted EBITDA, PLC shareholders - per share
Basic
$
3.074
$
2.687
Diluted
$
3.032
$
2.672
Weighted Average Shares Outstanding
Basic
31,111,308
29,716,980
Diluted
31,549,563
29,894,399
Cautionary Statement Regarding Forward – Looking Information
This news release contains 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", "aspirational", "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: PLC's intention to continue to evaluate new opportunities to partner with premier independent businesses, as well as organic growth opportunities, and to continue a high level of growth into the future; the impact of COVID-19 on the Company's business; the Company's ability to adapt to the current operating environment and inflation; PLC's ability to modestly exceed the 2022 aspirational growth target by the end of 2022; and the growth targets that PLC aspires to achieve by the end of 2026. The forward-looking statements in this news release are based on certain assumptions, including that regulatory restrictions relating to the COVID-19 pandemic in the markets the Company serves will continue to be relaxed through the 2022 calendar year, the CAD to USD exchange rate remains consistent, PLC will be able to retain key personnel, there will be no unexpected expenses occurring as a result of contemplated acquisitions, multiples remain at or below levels paid by PLC for previously announced acquisitions, the acquisition and financing markets remain accessible, capital can be obtained at reasonable costs and PLC's current business lines operate and obtain synergies as expected, as well as those regarding present and future business strategies, the environment in which PLC will operate in the future, any adjustments to operations with the ongoing COVID-19 pandemic, expected revenues, expansion plans and PLC's ability to achieve its goals. In addition, the achievement of PLC's 2026 aspirational growth target is based on the following key assumptions: that PLC will continue to capitalize on ongoing operational improvements to both existing and acquired businesses; that PLC will achieve efficiencies through the full implementation, deployment and integration of PLC's proprietary industry software; that PLC's revenue will continue to increase through organic growth opportunities and the expansion and addition of new inventory at PLC's existing cemetery properties; and that PLC will pursue acquisition opportunities in high-growth markets at a rate of US$75-$125 per year.
Forward-looking statements 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, risks associated with the current COVID-19 pandemic and the other factors discussed under the heading "Risk Factors" in PLC's most recent Annual Information Form and most recent Management's Discussion and Analysis 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
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