TORONTO, ON / ACCESSWIRE / February 20, 2024 / Park Lawn Corporation (TSX:PLC)(TSX:PLC.U) ("Park Lawn" or "PLC") is pleased to announce that it has completed the acquisition of substantially all of the assets of Crippin Funeral Home located in Montrose, Colorado; Gunnison Funeral Services located in Gunnison, Colorado; and Grand View Cemetery located in Montrose, Colorado (collectively "Crippin"). The Crippin acquisition deepens Park Lawn's footprint in the Colorado market through the addition of two (2) stand-alone funeral homes as well as one (1) stand-alone cemetery.
"For 37 years, the Crippin businesses have proudly served Montrose and its surrounding communities. We take great pride in our ability to provide excellent professional service and guidance to our families at their time of need and are excited to partner with Park Lawn to continue this tradition," said Kelly and Gregory Crippin, former owners of Crippin.
"We are delighted to further expand our operating presence in the State of Colorado through the strategic acquisition of the Crippin businesses," said J. Bradley Green, Chief Executive Officer of PLC. Mr. Green continued, "These outstanding businesses will be an excellent addition to our existing portfolio of high-quality businesses in Colorado, and we are honored to welcome the Crippin businesses and their teams into the Park Lawn family."
Highlights of the transaction include:
- The addition of two (2) stand-alone funeral homes and one (1) stand-alone cemetery.
- The transaction represents approximately 576 calls per year, approximately 85 placements per year, and is expected to be financed with funds from PLC's credit facility and available cash on hand.
- Following the closing and integration of the transaction, the Crippin acquisition is expected to add approximately US$703,404 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 is the largest publicly traded Canadian-owned funeral, cremation and cemetery provider. PLC and its subsidiaries own and operate businesses including cemeteries, crematoria, funeral homes, chapels and event centers throughout Canada and the United States which provide a full range of services and merchandise to fulfill the desires of individuals and families seeking to honor their loved ones. Products and services can be customized to meet the personal needs of the consumer and are sold on a pre-planned basis (pre-need) or at the time of a death (at-need). PLC operates in three Canadian provinces and seventeen U.S. states. For more information about Park Lawn Corporation, please visit our website at www.plcorp.com.
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 Crippin acquisition will add approximately US$703,404 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.sedarplus.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.
Non-IFRS Measures
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 Crippin. 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.
Contact Information
Daniel Millett
Chief Financial Officer
(416) 231-1462, ext. 221
[1] Adjusted 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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