Mr. Andrew Clark reports

PARK LAWN CORPORATION ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS

Park Lawn Corp. has released results for the fourth quarter and year ended Dec. 31, 2014. Financial highlights are as follows:

• Total revenue for the year ended Dec. 31, 2014, was $23,720,728, an increase of $6,412,410 or 37 per cent from Dec. 31, 2013.
• Earnings from continuing operations for the 12-month period ended Dec. 31, 2014, were $3,003,511 compared with $2,603,621 for the same 12-month period in 2013, an increase of 15 per cent.
• Adjusted cash flows from continuing operations for the 12 months ended Dec. 31, 2014, were $5,180,687 versus $4,773,718 in 2013, an increase of 9 per cent.
• Net earnings from continuing operations for the 12-month period ended Dec. 31, 2014, totalled $2,304,094 compared with $2,454,737 in 2013. This decrease is largely due to increased income tax expense (a non-cash expense in 2014) and acquisition-related expenses.
• Fully diluted earnings per share for fiscal 2014 were 35.2 cents compared with 45.8 cents for fiscal 2013. In 2014, the weighted-average number of common shares outstanding increased to 5,087,606 from 3,641,140 in 2013 as a result of, among other things, the prospectus-based financing during the third quarter of 2014.

Chief executive officer Andrew Clark commented: "We are pleased with our results from 2014, which was a year of significant change and growth for Park Lawn. We closed our investments in Tubman Funeral Homes and Parkland Funeral Holdings, and commenced construction on the Mausoleum of Faith at Westminster Cemetery. In addition, we sold substantially all of the assets of the underperforming Harmonia business unit and completed a successful equity offering in the third quarter.

"The result of the above is that the key metrics by which we judge our business, namely income from continuing operations and adjusted cash flows from continuing operations, were comfortably ahead of prior-year results at year-end. We had anticipated that the financings in late 2013 and 2014 would be dilutive to our net earnings per share results; however, these financings allowed us to restructure our balance sheet and enhance flexibility as we roll out our business plan. We expect that the net earnings per share will grow as the Mausoleum of Faith opens in phases over Q2 and Q3 of 2015," added Mr. Clark.

"During the fourth quarter, the sluggishness that we had seen in the Ottawa market began to ease, and the restructuring efforts began to take hold in the Tubman business, resulting in the strongest quarter from that business unit since closing the transaction in February, 2014. The closing of our investment in Parkland during the fourth quarter was immediately accretive, and the results from our core Toronto properties were ahead of expectations for Q4 2014," stated Mr. Clark.

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