Park Lawn Corporation, the Canadian funeral home and cemetery acquisition firm, released its results for their 3rd Quarter of 2018 earlier this week.  You can see their Press Release here.

The fast-growing death care public company announced that their revenues increased on a year over year basis for the quarter by 92.9%.  They reported revenue of C$ 43.2 million as compared to the 2017 3Q of C$22.4 million.

• The company announced their net earnings at C$ 3.27 million as compared to a loss in Q3 2017 of over $171,000.
• The company also stated in the announcement that, adjusting for the impact of foreign exchange, the growth from comparable business units was 5% for the quarter which they say is withing their target range.
• Park Lawn also announced that their EBITDA margin for Q3 2018 was 21.9% as compared to 18.4% in Q3 2017.
• The company is paying a dividend of C$ 0.46 per share with its most recent stock price at C$ 21.97 for a dividend rate of 2.09%.

Funeral Director Daily take:  We certainly cannot say anything bad about these results.  They show increased revenue, earnings per share, and strong year over year growth.  According to E-Trade, analysts had looked for an estimated earnings per share of C$ 0.18 and the company produced earnings of C$ 0.19 per share.

We’ve said before, this is a very fast growing company in the death care space.  It is expected by analysts that their revenue will have more than doubled from FY 2017 to FY 2019.  They did C$ 87.2 million in FY 2017 and are expected to do $208 million in FY 2019.  That is a growth company.

They also act like a steady utility company by throwing off an over 2% cash dividend to investors.  It is rare when a company can grow their revenue by those multiples and continue to operate like a steady utility company with dividend payouts.

Of course, the question is. . “Can this continue?”.  We continue to look at how the large acquisitions of CMS Mid-Atlantic and the Signature Group will play out.  Park Lawn Corporation, according to their press releases,  put out about $US 170 million for these operations.  Those companies have not been in the fold even one year yet. . . .time will eventually tell on these investments.

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