Mr. J. Bradley Green reports

PARK LAWN CORPORATION ANNOUNCES Q2 2023 RESULTS

Park Lawn Corp. has released its financial operating results for the second quarter ended June 30, 2023.

J. Bradley Green, chief executive officer of Park Lawn, commented, "We are proud of our operating results this quarter as our overall performance demonstrates the ability of our team to incrementally improve their business operations in a challenging macroeconomic environment while simultaneously staying true to our mission to deliver the highest level of service to our families."

Mr. Green continued, "Despite a slightly depressed death rate, we were nonetheless able to maintain strong market share in the communities in which we operate while at the same time increasing our adjusted [earnings before interest, taxes, depreciation and amortization] and adjusted EBITDA margins, demonstrating success with both our targeted pricing strategy, as well as more intentional expense management."

Key results from the three-month period ended June 30, 2023:

• Revenue increased by approximately 12.3 per cent to $85.3-million primarily as a result of acquired operations as compared with the three-month period ended June 30, 2022.
• Gross profit increased by 25.2 per cent to $21,043,308 compared with $16,813,765 for the three-month period ended June 30, 2022.
• Fully diluted earnings per share were 10.9 cents compared with 16.7 cents for the three-month period ended June 30, 2022.
• Fully diluted adjusted net earnings per share increased by 3.2 cents or 16.8 per cent to 22.2 cents compared with 19.0 cents for the three-month period ended June 30, 2022.
• Net earnings were $3,775,581 compared with $5,807,886 for the three-month period ended June 30, 2022.
• Adjusted EBITDA increased by 20.7 per cent to $18,829,730 as compared with $15,605,747 for the three-month period ended June 30, 2022.
• Park Lawn achieved an adjusted EBITDA margin of 22.1 per cent, an increase of 150 basis points over the three-month period ended June 30, 2022.
• On April 10, 2023, the company completed the acquisition of substantially all the assets of Carson-Speaks Chapel in Independence, Mo.; Speaks Buckner Chapel in Buckner, Mo.; Speaks Suburban Chapel in Independence, Mo.; and Oak Ridge Memory Gardens in Independence, Mo. The Speaks acquisition expands Park Lawn's Kansas City metropolitan market by adding three stand-alone funeral homes and one stand-alone cemetery, and is expected to add $2,247,759 in adjusted EBITDA annually.
• On June 26, 2023, the company completed the acquisition of substantially all the assets of Cobb Funeral Chapel and Cobb Suncrest Memorial Gardens, a business consisting of one on-site funeral home and cemetery located in Moultrie, Ga. The Cobb acquisition is expected to add $676,710 in adjusted EBITDA annually.
• Following the close of the quarter, on July 17, 2023, the company acquired substantially all the assets of Ward Funeral Home Ltd. with three stand-alone funeral homes located in Brampton, Woodbridge and Toronto, Ont. The Ward acquisition expands Park Lawn's funeral home presence in Ontario and is expected to add $1.8-million in adjusted EBITDA annually.

Further expansion of Ontario footprint

Subsequent to the quarter, on Aug. 8, 2023, the company completed the acquisition of substantially all the assets of M.W. Becker Funeral Home Ltd., a stand-alone funeral home business in Keswick, Ont.

"We take great pride in serving Keswick and the surrounding communities, and look forward to continuing to provide outstanding personalized service to our families through our partnership with Park Lawn," said Yves Larocque, former owner of MWB.

"The addition of the M.W. Becker Funeral Home allows us to enter a growing market north of Toronto, and expands Park Lawn's footprint in Ontario, in furtherance of our stated growth objectives. We are excited to welcome the M.W. Becker team into the Park Lawn family," stated Mr. Green.

Highlights of the transaction include:

• Park Lawn deepening its presence in Ontario by adding one stand-alone funeral home in Keswick, Ont.;
• MWB performs approximately 162 calls per year, and was financed with cash on hand and funds from Park Lawn's credit facility;
• The MWB acquisition is expected to add approximately $375,970 (Canadian) in adjusted EBITDA annually.
• For the 12 months ended Dec. 31, 2022, Park Lawn had adjusted EBITDA of $74,948,868 and net earnings of $25,124,765.
• The agreed-upon purchase price multiple is within Park Lawn's publicly stated targeted EBITDA multiple range for transactions of this nature.

Renewal normal course issuer bid

Park Lawn also announced today that the Toronto Stock Exchange has approved the renewal of the company's normal course issuer bid. Under the terms of the NCIB, Park Lawn may, during the 12-month period commencing Aug. 17, 2023, and ending Aug. 16, 2024, purchase up to 3,391,575 common shares, representing 10 per cent of its public float of issued and outstanding common shares. As at Aug. 4, 2023, there were 34,272,395 common shares issued and outstanding and 33,915,751 common shares estimated in the public float, calculated in accordance with TSX rules. All common shares purchased by Park Lawn under the renewed NCIB will be cancelled or transferred to and held by a trust established by Park Lawn for the settlement of equity-settled incentive plans.

Park Lawn's board of directors has authorized the NCIB because the board believes that, from time to time, the market price of common shares may be such that their purchase may be an attractive and appropriate use of corporate funds. The NCIB will provide Park Lawn with additional flexibility to manage capital. Decisions regarding the timing of future purchases of common shares will be based on market conditions, share price, capital needs and other factors.

Purchases made by Park Lawn will be made on the open market through the facilities of the TSX and/or alternative Canadian trading systems in accordance with applicable TSX and other applicable trading system rules. The actual number of common shares purchased under the NCIB and the timing of any such purchases will be at Park Lawn's discretion. Based on the average daily trading volume of 62,835 during the last six months, daily purchases will be limited to 15,708 common shares other than block purchase exceptions.

Park Lawn has entered into an automatic securities purchase plan (ASPP) with its designated broker in connection with its NCIB to facilitate the purchase of common shares during times when Park Lawn would ordinarily not be permitted to purchase common shares due to regulatory restrictions or self-imposed blackout periods. Before entering a blackout period, Park Lawn may, but is not required to, instruct the broker to make purchases under the NCIB based on limits set by Park Lawn in accordance with the ASPP, TSX rules and applicable securities laws. The ASPP has been precleared by the TSX. Outside of predetermined blackout periods, common shares may be purchased under the NCIB based on management's discretion in compliance with TSX rules and applicable securities laws. All purchases made under the ASPP will be included in computing the number of common shares purchased under the NCIB.

Under its prior NCIB that commenced on Aug. 17, 2022, and expires on Aug. 16, 2023, the company had sought and received approval from the TSX to purchase up to 3,385,439 common shares. As of Aug. 9, 2023, the company had purchased 207,885 common shares under its prior NCIB through open market purchases on the TSX and/or alternative Canadian trading systems at a weighted-average price of approximately $24.81 (Canadian) per common share for total cash consideration, including commission, of $3,835,438 ($5,152,539 (Canadian)).

Important reminder

The company will host a conference call to discuss its second quarter 2023 financial results on Friday, Aug. 11, 2023. Details are as follows.

Date:  Friday, Aug. 11, 2023

Time:  9:30 a.m. EST

Dial-in number:  toll-free: 877-545-0523

Conference ID:  711858

To ensure your participation, please join approximately five minutes prior to the scheduled start of the conference call. The company's complete financial results can be found at SEDAR+ or on the company's website.

A replay of the conference call will be available until Friday, Aug. 25, 2023.

Dial-in number:  toll-free: 877-481-4010

Conference ID:  48853

Alternatively, the conference will also be available on the company's website.

About Park Lawn Corp.

Park Lawn provides goods and services associated with the disposition and memorialization of human remains. Products and services are sold on a preplanned basis (preneed) or at the time of a death (at need). Park Lawn and its subsidiaries own and operate businesses including cemeteries, crematoria, funeral homes, chapels, planning offices and a transfer service. Park Lawn operates in three Canadian provinces and 19 U.S. states.

Unless otherwise stated, all amounts discussed herein are denominated in U.S. dollars.

We seek Safe Harbor.