TORONTO, ONTARIO--(Marketwired - Aug. 29, 2014) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Park Lawn Corporation (TSX VENTURE:PLC) (the "Company" or "Park Lawn") today announced results for the second quarter ended June 30, 2014. A more detailed discussion of financial results is included in the Company's Management's Discussion and Analysis and Unaudited Consolidated Financial Statements, which have been filed on SEDAR and can be viewed at www.sedar.com.
Total revenue from continuing operations for the quarter was $4,998,344, an increase of 40% from the same quarter in 2013. Earnings from continuing operations fell to $608,897 from $643,718 in the quarter ended June 30, 2013. However for the six months ended June 30, 2014, net earnings were $1,426,237, an increase of 21% over the prior year.
Net earnings from continuing operations for the period were $504,268, an increase of 2% from the prior year's result of $491,668. Due to the additional common shares issued as part of the equity financing that closed in December 2013, however, earnings per share from continuing operations were down from $0.14 in Q2 2013 to $0.117 in Q2 2014.
On June 30, 2014 the Company announced that it had closed a transaction whereby substantially all of the business assets of the Harmonia Division operating in the Quebec City and Montreal markets were sold. The sale of these assets completed the restructuring of the Harmonia division that the Company had been working on for some time. The business will continue to be operated by the new owners in the Quebec City and Montreal markets using the Harmonia name, which has been licensed from Park Lawn for an initial term of 40 years. On the basis that this transaction represents a sale of substantially all of the business operations of the Company in these markets, the Company has accounted for the transaction as a discontinued operation.
"The second quarter saw significant changes to Park Lawn's business", commented Andrew Clark, CEO. "The Harmonia division had been underperforming for some time relative to other segments of the business and relative to other opportunities under consideration. Accordingly, management and the Board determined there were a number of different areas in which the Company could deploy shareholder's capital more effectively, and so the assets were sold. In addition to the sale of Harmonia, we experienced some unexpected softness in the Ottawa market during the latter half of the second quarter, which acted as a drag on earnings. We continue to explore opportunities in the Ottawa market to not only diversify the revenue base, but also to improve the efficiency of the operation."
About Park Lawn
Park Lawn Corporation provides goods and services associated with the disposition and memorialization of human remains. Products and services are sold to people on a pre-planned basis (pre-need) or at the time of a death (at-need). The Company owns and operates six cemeteries in the Greater Toronto Area and operates the crematorium at the Brampton Crematorium and Visitation Centre. The Company also owns 50% of Amety Ltd, which operates Tubman/Cadieux Funeral Homes in Ottawa and Western Quebec. The Harmonia business of the Company currently operates in Quebec City, Laval, Saint-Apollinaire, Montreal and the Beauce region under license. Park Lawn's common shares are listed on the TSX Venture Exchange under the symbol "PLC". The Company is the only Canadian publicly listed cemetery, funeral and cremation business. Park Lawn makes monthly dividend payments to its shareholders. The monthly dividend has been paid each month since January, 2011 and is currently $0.038 per share ($0.46 per share on an annual basis).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements regarding the Company's business and growth plans. Although management of the Company believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. By their nature, forward-looking statements are inherently uncertain, are subject to risk and are based on assumptions including those discussed herein. Readers are cautioned to not place undue reliance on forward-looking statements made herein because a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward- looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to, the factors described under the heading "Risk Factors" in the Company's most recent Annual Information Form. Forward-looking statements are provided as of the date hereof and the Company assumes no obligation to update or revise such forward-looking statements to reflect new events or circumstances except as required under applicable securities laws.