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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 11, 1997
THE LOEWEN GROUP INC.
(Exact name of registrant as specified in its charter)
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British Columbia, Canada 0-18429 98-0121376
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(State or other jurisdiction of (Commission File Number) (IRS Employer Identification No.)
incorporation)
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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 7
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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.
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Exhibit No. Description
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Exhibit 99-1 The Loewen Group Inc. Press Release dated August 11, 1997
Exhibit 99-2 The Loewen Group Inc. Press Release dated August 11, 1997
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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 12, 1997
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
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Sequential
Number Exhibit Page Number
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99-1 The Loewen Group Inc. 4
Press Release dated August 11, 1997
99-2 The Loewen Group Inc. 5
Press Release dated August 11, 1997
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THE LOEWEN GROUP INC.
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(NYSE, TSE, ME: LWN) NEWS
Investor contacts:
Paul Wagler, Senior Vice President, Finance Media Contact:
Dave Laundy, Vice President,
Dwight Hawes, Vice President, Finance Corporate Communications
The Loewen Group Inc. Tel: (604) 293-7857
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FOR IMMEDIATE RELEASE
LOEWEN GROUP ANNOUNCES SALE OF INTEREST IN
ARBOR MEMORIAL SERVICES, INC.
VANCOUVER, BC, August 11, 1997 -- The Loewen Group today announced it has
entered into an agreement to sell its minority interest in Arbor Memorial
Services Inc., an operator of funeral homes and cemeteries in Canada, for
approximately US$69 million. This sale, which is subject to Canadian regulatory
approval, is anticipated to be recorded in the third quarter of 1997 and will
result in a gain before taxes of US$26 million. While Loewen continues to view
Arbor as
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an attractive operation, it does not believe that a minority interest in the
company is the most effective use of its capital at this time.
With corporate offices in Vancouver and Philadelphia, The Loewen Group Inc. is
the second largest and fastest growing funeral home and cemetery operator in
North America in terms of revenues and assets. The Company employs approximately
17,000 people and owns or operates more than 1,000 funeral homes and some 400
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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THE LOEWEN GROUP INC.
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(NYSE, TSE, ME: LWN) NEWS
Investor contacts:
Paul Wagler, Senior Vice President, Finance Media Contact:
Dave Laundy, Vice President,
Dwight Hawes, Vice President, Finance Corporate Communications
The Loewen Group Inc. Tel: (604) 293-7857
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FOR IMMEDIATE RELEASE
LOEWEN GROUP REPORTS
RECORD SECOND QUARTER
RESULTS
VANCOUVER, BC, August 11, 1997 -- The Loewen Group Inc. today reported record
revenues and earnings for the second quarter of 1997. Fully diluted earnings per
share were $0.38 for the quarter, a 27 per cent increase from the $0.30 reported
during the same quarter in 1996.
Revenues increased 24 per cent during the second quarter of 1997 to $275.6
million, up from $223.2 million during the same quarter a year ago. Net earnings
increased 35 per cent from the second quarter of 1996 to $26.3 million.
For the first six months of 1997, revenues grew 32 per cent in comparison to the
same period in 1996 while net earnings increased 36 per cent to $50.0 million.
Fully diluted earnings per share rose 23 per cent to $0.74 compared with
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$0.60 in 1996.
"This strong performance across the Company -- achieved during a period of
greater than normal seasonal slowdown in industry wide volumes -- reflects our
continued focus on improving profitability, increasing the diversity of our
operations, and the ongoing momentum of our acquisition program," said Raymond
L. Loewen, chairman and chief executive officer. "Additionally the success of
our recent $455 million equity offering reflects the confidence of investors in
our Company and gives us greater financial flexibility as we continue to grow."
The Company's cemetery division, which accounted for 39 per cent of total
revenues, continued to show strong growth, contributing revenues of $107.0
million in the second quarter, up 58 per cent from the same period a year
earlier. Profits from cemetery operations rose to $35.9 million, an increase of
70 per cent. Cemetery operating margins increased to 33.6 per cent, compared to
31.2 per cent for the second quarter of 1996.
Funeral home revenues during the quarter increased 10 per cent to $146.6
million. Funeral operating profits rose to $58.2 million, an increase of nine
per cent. Funeral operating margins were 39.7 per cent compared to 40.0 per cent
in the previous year. The sale of prearranged funeral contracts during the
second quarter were $60 million, an increase of 45 per cent over the same
quarter in 1996, continuing our focus on preneed sales.
The Company continues its aggressive acquisition program with agreements in
place or closed acquisitions this year representing an aggregate purchase price
of some $569 million. Since the beginning of the year, the Company has closed
transactions to acquire 85 funeral homes and 109 cemeteries for $338 million
which are expected to generate approximately $158 million of annualized revenue.
In addition, the Company has in place signed agreements for the acquisition of
58 funeral homes and 63 cemeteries for an estimated total purchase price of $231
million which are expected to generate annualized revenues of approximately $100
million.
As part of its ongoing program to reduce general and administrative expenses,
the Company announced plans to consolidate its Cincinnati corporate office with
its other corporate offices in Vancouver and Philadelphia. This initiative is
expected to result in both long-term savings and improved operating
efficiencies.
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During the second quarter, the Company entered into an agreement for the sale of
18 funeral homes in Wisconsin for proceeds of approximately $18.5 million and a
gain before taxes of $3 million. The sale was made in order to comply with state
regulations prohibiting the ownership of both funeral homes and cemeteries. The
Company has also entered into an agreement to sell its minority interest in
Arbor Memorial Services Inc., an operator of funeral homes and cemeteries in
Canada, for approximately $69 million. This sale, which is subject to Canadian
regulatory approval, is anticipated to be recorded in the third quarter of 1997
and will result in a gain before taxes of $26 million. While Loewen continues to
view Arbor as an attractive operation, it does not believe that a minority
interest in the company is the most effective use of its capital at this time.
The net proceeds from these two transactions will be used for debt repayment and
to offset any costs associated with the closure of the Cincinnati office.
With corporate offices in Vancouver and Philadelphia, The Loewen Group Inc. is
the second largest and fastest growing funeral home and cemetery operator in
North America in terms of revenues and assets. The Company employs approximately
17,000 people and owns or operates more than 1,000 funeral homes and some 400
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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Note: Certain of the statements contained in this press release, including, but
not limited to, information regarding the future economic performance and
financial condition of the company, the plans and objectives of the company's
management, and the company's assumptions regarding such performance and plans,
are forward-looking in nature. Additional information concerning important
factors that could cause actual results to differ from the forward-looking
information contained in this release is included in the company's publicly
filed quarterly and annual reports.
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