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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) March 05, 1997
THE LOEWEN GROUP INC.
(Exact name of registrant as specified in its charter)
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<S> <C> <C>
British Columbia, Canada 0-18429 98-0121376
(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
N/A
(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.
Exhibit No. Description
Exhibit 99 The Loewen Group Inc. Press Release dated
March 05, 1997
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: March 6, 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 The Loewen Group Inc. 4
Press Release dated March 05, 1997
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The Loewen Group Inc. March 5, 1997 Page 1
THE LOEWEN GROUP INC.
NEWS
Stock Symbols:
NYSE: LWN Media Contacts:
TSE: LWN Dave Laundy, Vice President,
ME: LWN Communications
The Loewen Group Inc.
Tel: (604) 293-7857
Investor Contacts:
Paul Wagler
Senior Vice President, Finance and
Chief Financial Officer
The Loewen Group Inc.
Tel: (604) 293-7844
Thomas C. Franco
Broadgate Consultants, Inc.
Tel: (212) 229-2222
FOR IMMEDIATE RELEASE
LOEWEN GROUP REPORTS RECORD REVENUES
AND EARNINGS FOR 1996
1997 Acquisition Pace Remains Strong
VANCOUVER, MARCH 5, 1997 - The Loewen Group Inc. (NYSE, TSE, ME: LWN) today
reported record revenues and earnings for 1996.
Full year 1996 earnings were $81.4 million or $1.27 per share excluding costs
incurred in connection
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The Loewen Group Inc. March 5, 1997 Page 2
with Loewen's successful defense against Service Corp. International's (SCI)
hostile takeover attempt. Full year revenues increased 52% to $908.4 million
from $598.5 million in 1995. Fourth quarter 1996 earnings were $25.1 million or
$.36 per share, excluding costs associated with the failed SCI hostile takeover
attempt. Fourth quarter revenues were $260.7 million, an increase of 47% over
the comparable 1995 period.
1996 is the eighth consecutive year of increased revenues and earnings growth
for The Loewen Group, excluding litigation related costs incurred in 1995 and
1996. On this basis, the company's compound annual earnings per share growth
rate is 25% over this same period.
"We are very proud of our performance in 1996. The growth in earnings again
validates the strength of our business plan and is an outstanding tribute to the
dedication and operating focus of our management team despite the very difficult
tests we faced during the year, particularly in the fourth quarter," said Ray
Loewen, chairman and chief executive officer of The Loewen Group. "With the
distractions of the failed SCI hostile takeover attempt behind us, we can
concentrate on our objective of delivering consistent earnings per share
growth."
Record Acquisition Activity
During 1996, the company's funeral home and cemetery acquisition activity
reached a record level, surpassing other U.S. consolidators. Last year the
company was involved in acquisitions or structured transactions totaling $1.1
billion, including joint ventures to acquire Prime Succession Inc. of
Batesville, Indiana -- North America's fourth largest supplier of funeral
services -- for $295 million and Rose Hills cemetery and related mortuary of Los
Angeles -- the largest cemetery in North America for $240 million.
"Our leadership role in the acquisition of smaller 'Mom & Pop' properties
continues to diversify our
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The Loewen Group Inc. March 5, 1997 Page 3
acquisition portfolio outside of the more competitive market for larger,
strategic properties. In addition, our strong emphasis on management retention
when we acquire smaller funeral homes and cemeteries has reinforced the
company's position as the preferred industry consolidator, though we continue to
be competitive in making larger, strategic acquisitions in major markets on the
best possible terms," said Mr. Loewen.
The pace of acquisition activity is continuing into 1997 and is expected to
result in another outstanding year of acquisitions totaling between $600 million
and $750 million. So far in the first quarter, the company has closed
acquisitions of 28 funeral homes and 40 cemeteries for a total purchase price of
approximately $100 million with a projected return on investment of 17.4%. In
addition, the company has agreements to acquire a further $230 million worth of
funeral homes and cemeteries -- including $90 million signed in 1997 -- for a
combined total of $330 million of acquisitions signed or closed with a projected
return on investment of 17.0%
Operating Earnings Grow 74%
Earnings from operations grew to $204.1 million in 1996 from $117.6 million in
1995, an increase of 74%. The company also recorded charges against earnings of
$18.7 million in connection with SCI's hostile takeover attempt, the majority of
which were related to securities, antitrust and other litigation issues.
The company cited a number of factors contributing to the strong 1996 operating
results, including greater operating efficiencies in existing and recently
acquired cemetery businesses, increased cross-selling opportunities for such
products as pre-need insurance, and tighter controls on selling, general and
administrative expenses.
For the year, funeral segment revenue increased 25% to $549.8 million and
funeral profits rose $40.5
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The Loewen Group Inc. March 5, 1997 Page 4
million to $222.9 million, an increase of 22%. The number of funeral services
performed rose 25% to 142,000. During 1996, gross sales of prearranged funeral
contracts were approximately $190 million, 96% more than in 1995. Cemetery
revenue nearly doubled to $286.7 million, reflecting the growth in acquisitions
during the year. Cemetery profits more than doubled, rising $55.3 million to
$95.2 million. The number of interments performed rose 67% to 45,000.
Mr. Loewen said, "Despite the hardships thrust upon us in 1996, we succeeded in
establishing a strong management and organizational infrastructure to help
ensure that the company achieves its five-year growth plan. We look forward
confidently to 1997, a year when we can focus exclusively on executing our
business plan. We see excellent opportunities for continued revenue and earnings
growth through acquisitions, as well as through margin improvements, product
enhancements and operating efficiencies."
With corporate offices in Vancouver, British Columbia, Cincinnati and
Philadelphia, The Loewen Group Inc. is the fastest growing publicly held funeral
home and cemetery service company in North America. The Company employs some
16,000 people and owns or operates 981 funeral homes and 351 cemeteries across
the United States and Canada. Over 90% of the Company's revenue is derived from
the United States.
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.
