TORONTO, ON / ACCESSWIRE / October 5, 2022 / Park Lawn Corporation (TSX:PLC, PLC.U) ("Park Lawn" or "PLC") is pleased to announce that it has strategically enlarged its presence in Colorado by expanding into the Western Slope through:
- Completing the acquisition of substantially all of the assets of Ertel Funeral Home & Crematory ("Ertel"), a stand-alone funeral home located in Cortez, Colorado serving the families of Dolores and Montezuma Counties and the Ute Mountain Ute and Navajo tribes.
- Entering into a definitive agreement to acquire substantially all of the assets of Taylor Funeral Home ("Taylor") consisting of three stand-alone funeral homes and one on-site funeral home and cemetery combination located in Delta, Cedaredge, Hotchkiss and Paonia, Colorado. The Taylor transaction is anticipated to close in early November 2022 following the receipt of regulatory approval.
- Entering into a definitive agreement to acquire substantially all of the assets of Brown's Cremation & Funeral Service ("Brown's"), a stand-alone funeral home located in Grand Junction, Colorado. The Brown's transaction is anticipated to close in early November 2022 following the receipt of regulatory approval.
"Through the addition of the Ertel, Taylor and Brown's businesses, Park Lawn has established a firm commitment to serving the families of the Western Slope of Colorado," said J. Bradley Green, Chief Executive Officer of PLC. Mr. Green continued, "Each of these businesses have renowned reputations and pride themselves on providing superior service within their respective communities. We are honored to welcome each of them to the Park Lawn family."
Highlights of the transactions include:
- The addition of five (5) stand-alone funeral homes; and one (1) on-site funeral home and cemetery.
- The combined transactions represent 1,738 calls per year and 35 interments and are expected to be financed with funds from PLC's credit facility and available cash on hand.
- Following the closing and integration of all three businesses, the Ertel, Taylor and Brown's acquisitions are expected to add approximately US$1,618,393 in Adjusted EBITDA annually.1
- For the 12 months ended December 31, 2021, PLC had Adjusted EBITDA of US$76,284,577 and net earnings of US$27,812,866.
- The agreed upon purchase price multiple for each of the transactions is within PLC's publicly-stated targeted Adjusted EBITDA multiple range for its historical transactions.
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 seventeen U.S. states.
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking information (within the meaning of applicable securities laws) relating to the business of PLC and the environment in which it operates. Forward-looking statements in this news release 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 PLC's expectation that the Ertel, Taylor and Brown's acquisitions will add approximately US$1,618,393 in Adjusted EBITDA; and the expected time of closing of the Taylor and Brown's acquisitions. The forward-looking statements in this news release are based on certain assumptions, including that PLC is able to obtain regulatory approval or satisfy regulatory requirements for the Taylor and Brown's acquisitions, the acquisitions close in the anticipated time frame, the acquisitions will perform as expected following closing, PLC will be able to implement business improvements and achieve cost savings, PLC will be able to retain key personnel, there will be no unexpected expenses occurring as a result of the acquisitions, the purchase price multiples for future acquisitions 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, organic growth initiatives, the environment in which PLC will operate in the future, expected revenues, expansion plans and PLC's ability to achieve its goals. 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, the factors discussed under the heading "Risk Factors" in PLC's most recent Annual Information Form and 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.
Adjusted Net Earnings is not a measure recognized under IFRS and does not have a standardized meaning prescribed by IFRS. Such measure is presented in this news release because management of PLC believes that such measure is relevant in evaluating PLC's acquisition of Ertel and proposed acquisitions of Taylor and Brown's. Such measure, 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 refer to pages 8 and 19 of PLC's Management's Discussion and Analysis for the year ending December 31, 2021, which was filed on SEDAR on March 3, 2022, for how PLC reconciles Adjusted EBITDA to the nearest IFRS measure.
Chief Financial Officer
(416) 231-1462, ext. 221
1Adjusted EBITDA is a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section of this news release for more information on this non-IFRS financial measure.
SOURCE: Park Lawn Corporation