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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 7, 1996
THE LOEWEN GROUP INC.
(Exact name of registrant as specified in its charter)
British Columbia, Canada 0-18429 98-0121376
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(State or other jurisdiction of (Commission File Number) (IRS Employer
incorporation) Identification No.)
4126 Norland Avenue, Burnaby, British Columbia V5G 3S8
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(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code 604-299-9321
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N/A
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(Former name or former address, if changed since last report)
Exhibit Index is on page 3
Page 1 of 5
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ITEM 5. OTHER EVENTS.
Pursuant to Form 8-K, General Instructions F, registrant hereby incorporates by
reference the press release attached hereto as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
Exhibit No. Description
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Exhibit 99 The Loewen Group Inc. Press Release dated
August 7, 1996
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Dated: August 7, 1996
THE LOEWEN GROUP INC.
By: /s/ PETER S. HYNDMAN
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Name: Peter S. Hyndman
Title: Corporate Secretary
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EXHIBIT INDEX
Sequential
Number Exhibit Page Number
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99 The Loewen Group Inc. 4
Press Release dated August 7, 1996
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August 7, 1996 For more information contact:
Paul Wagler, Senior Vice President, Finance
Dwight Hawes, Vice President, Finance
The Loewen Group Inc.
Tel: (800) 347-7010
Stock Symbols:
Nasdaq: LWNG
TSE: LWN
ME: LWN
(All amounts listed in U.S. dollars)
FOR IMMEDIATE RELEASE
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THE LOEWEN GROUP ANNOUNCES RECORD SECOND QUARTER
BURNABY, BC - Ray Loewen, chairman and chief executive officer of The Loewen
Group, today announced that the Company achieved record revenue, earnings from
operations and net earnings during the second quarter of 1996. In addition,
the Company has completed a record level of acquisitions in the six months
ended June 30, 1996.
RECORD REVENUE AND EARNINGS
"During the second quarter of 1996, revenues increased 61% to $223.2 million,
up from $138.2 million for the previous year," Loewen said. "Earnings from
operations also increased to a record $50.3 million, up 59% from the same
period in 1995." Loewen also noted that net earnings increased to a record
$19.5 million, up 59% over the second quarter of 1995.
The Loewen Group continued its cemetery division growth with cemetery revenues
increasing 103% to $67.9 million in the second quarter of 1996 from $33.5
million the previous year. Gross margins for cemetery operations improved to
32.5% from 28.3% for the previous year's quarter. Funeral home revenues
increased 28% to $133.7 million, up from $104.8 million in 1995. Funeral home
gross margins were 40.0% for the three months ended June 30, 1996, as compared
to 41.3% for the same quarter of 1995.
For the second quarter of 1996, fully diluted earnings per share increased to
$0.30 per share from $0.28 per share.
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For the first six months of 1996, in comparison to the same period in 1995,
revenue increased 45% to $416.2 million from $268.3 million. Net earnings
rose 39% to $36.7 million from $26.4 million. Fully diluted earnings per
share decreased to $0.60 per share from $0.62 per share primarily as a result
of the increased number of Common shares outstanding and the Series C preferred
share dividend.
1996 ACQUISITION PROGRAM
To date in 1996, the Company has acquired 96 funeral homes, 74 cemeteries and
two insurance companies with an aggregate purchase price of approximately $394
million. In addition, the Company presently has signed agreements for the
acquisition of 63 additional funeral homes and 55 additional cemeteries for an
estimated aggregate purchase price of $200 million.
Acquisitions in 1996 have included S.I. Acquisition Associates L.P., with its
15 funeral homes, two cemeteries and two insurance companies. These operations
will provide the Company with a significant presence in Louisiana.
"The key to our success and credibility is the quality of our service to
families on the local level while maintaining our succession planning
commitments to new affiliates and responsibility to the financial community,"
said Ray Loewen.
INVESTMENT IN PRIME SUCCESSION
In a press release date June 17, 1996, The Loewen Group announced the formation
of a corporate venture with Blackstone Capital Partners to acquire Prime
Succession Inc., the largest privately-held funeral home operator in North
America with 146 funeral homes and 16 cemeteries.
"Prime Succession Inc. is an outstanding strategic investment", said Ray Loewen.
"It provides The Loewen Group with an option to acquire the full outstanding
interest in five to six years and allows Loewen to maintain its focus on the
tremendous quality succession planning opportunities available today."
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With corporate offices in Burnaby, British Columbia, Cincinnati and
Philadelphia, The Loewen Group is the second largest funeral home and cemetery
operator in North America. The Company employs approximately 12,000 people and
owns and operates 909 funeral homes and 253 cemeteries across the United States
and Canada. Over 90 per cent of the Company's revenue is derived from the
United States.
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