TORONTO, ON / ACCESSWIRE / March 13, 2023 / Park Lawn Corporation (TSX:PLC)(PLC.U) ('Park Lawn' or 'PLC') is pleased to announce that it has completed the acquisition of substantially all the assets of Meyer Brothers Funeral Homes, a business consisting of five stand-alone funeral homes located in Sioux City, Iowa, South Sioux City, Nebraska and Ponca, Nebraska (collectively 'Meyer'). The Meyer acquisition further increases Park Lawn's geographic presence in the Midwest by adding businesses in Iowa and Nebraska.
'We are pleased to welcome the Meyer businesses into the Park Lawn family as they exemplify the characteristics of the premier independent operating firms Park Lawn seeks to partner with in its growth strategy. These highly regarded businesses are a staple in their respective communities and we are proud to have them as part of our team,' said J. Bradley Green, Chief Executive Officer of PLC.
'For over 60 years the Meyer family has proudly served Sioux City, IA, South Sioux City, NE and Ponca, NE and the surrounding communities and we look forward to continuing to provide outstanding service to our families through our partnership with Park Lawn,' said Dale Meyer, former owner of Meyer.
Highlights of the transactions include:
- The addition of five (5) stand-alone funeral homes.
- The transaction represents 1,116 calls per year and is expected to be financed with funds from PLC's credit facility and available cash on hand.
- The Meyer acquisition is expected to add approximately US$1,843,734 in Adjusted EBITDA annually.1
- For the 12 months ended December 31, 2022, PLC had Adjusted EBITDA of US$74,948,868 and net earnings of US$25,124,765.
- The agreed upon purchase price multiple for the transaction 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 twenty 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 Meyer acquisition will add approximately US$1,843,734 in Adjusted EBITDA. The forward-looking statements in this news release are based on certain assumptions, including that the acquisition 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 acquisition, 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 Meyer. 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, 9 and 21 of PLC's Management's Discussion and Analysis for the year ending December 31, 2022, which was filed on SEDAR on March 2, 2023, 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
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