Park Lawn Corp T.PLC

Consumer Cyclical Personal Services

Park Lawn Corporation is engaged in providing goods and services associated with the disposition and memorialization of human remains. The Company and its subsidiaries own and operate businesses, including cemeteries, crematoria, funeral homes, chapels, planning offices and a transfer service. Its primary products and services are cemetery lots, crypts, niches, monuments, caskets, urns and other merchandise, funeral services, after-life celebration services and cremation services. Its products and services are sold on a pre-planned basis or at the time of death. It has one stand-alone funeral home located in Durham, North Carolina; one stand-alone funeral home and one on-site funeral home and cemetery located in Abingdon, Virginia; eight stand-alone funeral homes, two stand-alone cemeteries and one on-site funeral home and cemetery located in and around the Savannah, Tennessee area; three stand-alone funeral homes located in Brampton, Woodbridge and Toronto, Ontario and more.

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Park Lawn Corp

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Post by retiredcfon Sep 08, 2020 12:47pm

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Post# 31520644

TD

Maintain their Buy rating and $33.00 target. GLTA

Park Lawn Corp.

(PLC-T) C$27.79

CFO to Retire at Year-End; Successor Named Event

Park Lawn announced that Joseph Leeder, Chief Financial Officer (CFO), will retire at the end of the 2020. He will act in the capacity of Senior Advisor during a transition period for the balance of the year.
Park Lawn announced that Daniel Millett has been appointed as CFO. Mr. Millett previously held the position of CFO with Agellan Commercial REIT.

Impact: NEUTRAL

We believe that Mr. Leeder, alongside former CEO/Chairman Andrew Clark, has been instrumental in building Park Lawn since 2013. In the past seven years with Mr. Leeder as CFO, Park Lawn has grown from six properties (all in the Greater Toronto area) and annual revenue of ~$17mm to its current footprint of 222 properties (including 186 in the U.S.) and LTM revenue of $294mm and its share price has increased from $9.00 to $27.79.
While we believe that Mr. Leeder's departure is a loss for the company, we believe that, following the departure of Mr. Clark as Chairman/CEO earlier this year, the appointment of Brad Green as the new CEO, and with the Board already thinking about succession planning recently, that this is an appropriate time for the transition to occur. We do not expect any material changes in operational or financial strategy following the transition as the Board has remained largely unchanged, Mr. Green and President/COO Jay Dodds remain in place, and Park Lawn has demonstrated a very strong track-record of success in recent years.
Mr. Millett appears to be a capable successor, in our view. In his nearly seven years at Agellan Commercial REIT, Mr. Millett developed experience in cross-border real estate M&A, risk management, financial reporting, and financial controls across North America (Agellan owns 44 properties across Ontario and 9 U.S. states). Prior to Agellan, Mr. Millett was Senior Manager at KPMG LLP in their building, construction, and real estate audit practice. He holds a CPA, CA designation and earned a BBA degree from Wilfrid Laurier University.