Park Lawn Reports First-Quarter Earnings

Park Lawn Corp. reported first-quarter adjusted diluted earnings per share of about 22 cents per share compared with about 25 cents in the year-ago period, a decrease of 13.6%, according to a news release.

Quarterly revenue was $76.4 million compared with $86.7 million in the year-ago period, a decrease of 11.9%.

“We are proud of our first-quarter operating results and are excited to see the hard work and efforts of our team beginning to take shape,” said J. Bradley Green, chief executive officer. “As you have heard in our commentary over the past few quarters, with the reshaping of our platform as a result of the disposition of certain legacy assets which was completed in December, the implementation of a refined operating model, a new and improved sales structure, the launch of a comprehensive educational platform and a stronger more robust internal backbone, Park Lawn is now poised to perform at a higher and more effective level than ever before.”

Key Results from the Three-Month Period Ended March 31, 2024

For the three-month period ended March 31, 2024, revenue decreased by 11.9% to $76.4 million over the comparable prior period, primarily as a result of the disposition of certain legacy assets completed in December offset by an increase in acquired operations. On a comparable operations basis, revenue decreased only 2.7% over the comparable prior period, principally as a result of the decrease in mortality and large group sales in our cemeteries.

For the three-month period ended March 31, 2024, net earnings increased by 14.7% to $5.2 million over the comparable prior period. However, adjusted net earnings for the three-month period ended March 31, 2024, decreased by 12.2% to $7.6 million over the comparable prior period, primarily as a result of the disposition of legacy assets completed in December and the increased cost of financing.

For the three-month period ended March 31, 2024, adjusted EBITDA decreased by 4.4 % to $19.6 million over the comparable prior period, primarily as a result of the disposition of legacy assets completed in December offset by a marginal decrease in comparable operations primarily as a result of decreases in large group sales from the Company’s cemetery operations.

For the three-month period ended March 31, 2024, Adjusted EBITDA margin increased by 200 basis points to 25.7% over the comparable prior period, primarily as a result of the disposition of lower margin businesses and operating efficiencies in the company’s funeral operations.

For the three-month period ended March 31, 2024, adjusted field EBITDA margin increased by 320 basis points, or 10%, to 35.4% over the comparable prior period.

For the three-month period ended March 31, 2024, fully diluted net earnings per share increased by 13.1% to 15 cents. However, fully diluted adjusted net earnings per share for the three-month period ended March 31, 2024, decreased by 13.6% to 22 cents over the comparable prior period.

On Feb. 20, 2024, the company continued to execute on its growth strategy through the completion of the acquisition of substantially all 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. The Crippin business adds two stand-alone funeral homes and one stand-alone cemetery to Park Lawn’s portfolio and is expected to add approximately 576 calls, 85 placements and $703 in adjusted EBITDA, annually.

Dividend Reinvestment Plan

On May 9, 2024, the company’s Board of Directors approved the listing of an additional 500 thousand common shares issuable pursuant to the company’s amended and restated dividend reinvestment plan. The increase is subject to approval from the TSX.