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Be the first with the news that moves the market- Park Lawn Corporation (TSX:PLC) has reported a 51.3 per cent increase in revenue for the year ending December 31, 2019
- The adjusted EBITDA also increased by 53.5 per cent to C$53,254,756
- Park Lawn invested approximately $180 million in six acquisitions to expand its US presence
- The company has appointed Brad Green as Interim CEO, replacing Andrew Clark who resigned on February 18, 2020
- Park Lawn Corporation (PLC) is down 16.46 per cent to $16.50 per share, with a market cap of $476.69 million
Park Lawn Corporation (TSX:PLC) has reported a 51.3 per cent increase in revenue for the year ending December 31, 2019.
The Toronto-based company, along with its subsidiaries, operates a range of cemeteries, funeral homes, crematoria, chapels, and planning offices. Its footprint extends across five Canadian provinces and fifteen US states.
Revenue for the 2019 year was reportedly C$244,259,132, compared to $161,421,019 the year before.
Adjusted EBITDA for the year was also up 53.5 per cent to $53,254,756.
Park Lawn has partly attributed the improved financials to the performance of various acquisitions made before January 1, 2019. The company said that these assets exceeded EBITDA expectations, indicating significant improvement under Park Lawn’s management.
However, acquisitions made over the course of 2019 made little contribution to the company’s successful year.
That said, revenue from these businesses was in line with Park Lawn’s expectations. The funeral-dominant assets typically require a “longer runway to normalise selling, general and administrative expenses.” Park Lawn fully expects these businesses’ financial results to improve over time as their integration continues.
Nevertheless, the company’s newly appointed Interim CEO, Brad Green, said that 2019 was a transformative year.
“The success of 2019 positions us well for the emerging challenges of 2020.
“In a time of adversity, the entire PLC team remains focused on what we can control: the continued, consistent execution of PLC’s growth strategy via a combination of organic growth, margin expansion, and continued acquisition activity,” he added.
As of today, Green will serve as Interim CEO while the Board pursues a permanent candidate. Green has served as President of Park Lawn since May 2018, and was previously CEO of Signature Group.
He will replace Andrew Clark, who announced his resignation as CEO on February 18 this year. Clark will continue to work with the company on a consulting basis.
Paul G. Smith, Chairman of the Board, thanked Clark for his contributions.
“The world has dramatically changed over the past several weeks, and we are taking active steps to make certain that Park Lawn continues on its successful trajectory.
“Mr. Green brings years of operational experience to the table. I am confident in his abilities, in a time of uncertainty, to bring continuity to the organization,” he said.
Park Lawn Corporation (PLC) is down 16.46 per cent to $16.50 per share at 10:22am EST.
