-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LOka9UExRjzkWrjFvw14QGq4bJxKJfbxMHflj2rc1wmPAZaLbYvq/+A0pbY+WKML 5345Q2ck+uOeLfGKWScMwA== 0000950150-98-000292.txt : 19980304 0000950150-98-000292.hdr.sgml : 19980304 ACCESSION NUMBER: 0000950150-98-000292 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980302 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980303 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: LOEWEN GROUP INC CENTRAL INDEX KEY: 0000845577 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PERSONAL SERVICES [7200] IRS NUMBER: 980121376 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-12163 FILM NUMBER: 98556805 BUSINESS ADDRESS: STREET 1: 4126 NORLAND AVE CITY: BURNABY BC CANADA V5 STATE: A1 ZIP: V5G 3S8 BUSINESS PHONE: 6042999321 MAIL ADDRESS: STREET 1: 4126 NORLAND AVE STREET 2: BRITISH COLUMIA CITY: BURNABY V5G 3S8 STATE: A1 8-K 1 FORM 8-K 1 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 2, 1998 THE LOEWEN GROUP INC. (Exact name of registrant as specified in its charter) British Columbia, Canada 0-18429 98-0121376 - ------------------------------- ------------------------ --------------------------------- (State or other jurisdiction of (Commission File Number) (IRS Employer Identification No.) incorporation)
4126 Norland Avenue, Burnaby, British Columbia V5G 3S8 ------------------------------------------------------ (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 2 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 2, 1998 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 2, 1998 THE LOEWEN GROUP INC. By: /s/ PETER S. HYNDMAN ------------------------------------- Name: Peter S. Hyndman Title: Corporate Secretary 3 EXHIBIT INDEX Sequential Number Exhibit Page Number - ------ ------- ----------- 99 The Loewen Group Inc. 4 Press Release dated March 2, 1998 EX-99 2 PRESS RELEASE 1 THE LOEWEN GROUP INC. (NYSE, TSE, ME: LWN) NEWS Investor contacts: Dwight Hawes, Vice President, Finance Media Contact: Chris Hunter, Director, Investor Relations Dave Laundy, Vice President, The Loewen Group Inc. Corp. Communications Tel: (800) 347-7010 Tel: (604) 293-7857 FOR IMMEDIATE RELEASE LOEWEN GROUP FOURTH QUARTER EARNINGS IMPROVE SUBSTANTIALLY OVER THIRD QUARTER INITIAL BENEFITS FROM RESTRUCTURING AND STRATEGIC INITIATIVES REALIZED ANNUAL REVENUES REACH $1.1 BILLION, UP 25% OVER 1996 VANCOUVER, BC, March 2, 1998 -- The Loewen Group Inc. today reported substantially improved earnings for the fourth quarter as compared with the third quarter of 1997. Fully diluted earnings were $0.28 cents per share compared with $0.15 per share in the third quarter of 1997, up 87 per cent, after excluding earnings of $0.14 per share resulting from the sale of the Company's shareholdings in Arbor Memorial Services Inc. and certain restructuring, strategic initiatives and other charges. Including the above earnings of $0.14 per share, the Company reported fourth quarter 1997 net earnings of $33.6 million or $0.42 per share compared with net earnings of $10.3 million or $0.13 per share for the same period in 1996. "We are encouraged by the improvement in operating performance in the fourth quarter," said Chairman and Chief Executive Officer Ray Loewen. "Our performance to date in 1998 is showing further evidence that our recovery plan is on track toward the goal of disciplined, predictable and sustained earnings growth." - more - 2 Chief Financial Officer Paul Wagler said "The fourth quarter earnings we delivered are in line with expectations and reflect the initial benefits of the restructuring and strategic initiatives implemented in the fall of 1997. These initiatives should provide annual pre-tax savings of $25 to $30 million. Furthermore the intensive reviews conducted with the Company's operational management early in the first quarter will help us to strengthen our Company and should result in additional earnings improvement." Total revenues for 1997 were $1.1 billion, up 25 per cent over 1996. The Company reported 1997 net earnings of $42.7 million or $0.49 per share, compared with $64.1 million or $0.97 per share in 1996. Excluding certain gains and charges, net earnings were $84.8 million or $1.12 per share in 1997, compared with $74.9 million or $1.16 per share in 1996. Excluded gains and charges in 1997, include the gain on the sale of the Company's shareholdings in Arbor Memorial Services Inc. and the restructuring, strategic initiatives and other charges recorded in both the third and fourth quarters of 1997 and in 1996 include gains relating to certain non-recurring revisions to actuarial assumptions in the insurance operations and conversions of trust investments to insurance investments as well as the costs associated with the Company's defense against a hostile takeover proposal. The following discussion of operating results excludes the gains and charges mentioned above. Total revenues for the fourth quarter of 1997 were $303.7 million, up 17 per cent from $257.6 million in the same period of 1996. For the full year 1997, total revenues increased to $1,131.3 million compared with $903.9 million in 1996. Funeral home revenues for the fourth quarter of 1997 were $159.9 million, up 7 per cent from $149.0 million in the prior year period. As expected, funeral home margins improved to 40.1 per cent from 34.2 per cent in the third quarter of 1997. In the fourth quarter of 1996, the funeral home margins were 40.3 per cent. Funeral home revenues for the year were $602.4 million, up 11 per cent from $545.3 million in 1996, reflecting 153,000 funerals performed, compared with 142,000 a year earlier. Funeral home margins in 1997 were 38.8 per cent, down from 40.1 per cent in 1996. - more - 3 Cemetery revenues for the fourth quarter 1997 rose 39 per cent to $121.8 million from $87.7 million in 1996. The large number of cemetery acquisitions during 1997, combined with their integration and the build-up of the sales force, depressed cemetery margins. Margins in the fourth quarter of 1997 were 28.5 per cent compared with 33.3 per cent in 1996. Overall, cemetery revenues for the year were $438.9 million, up 53 per cent from $286.7 million a year ago. Cemetery margins in 1997 were 31.7 per cent, compared with 32.1 per cent in 1996. General and administrative expenses as a percentage of revenue were 8.8 per cent for the fourth quarter of 1997 compared with 8.1 per cent for the same period in 1996. The increase in general and administrative expenses as a percentage of revenue reflected a lag in revenue growth from the integration of recently acquired cemeteries. For 1997, general and administrative expenses were 8.1 per cent of revenue compared with 7.9 per cent in 1996. During 1997 the Company continued its acquisition program on a focused and disciplined basis, including its first European acquisition in the United Kingdom. Acquisitions totaled $507.7 million, comprising 133 funeral homes and 172 cemeteries, and are expected to generate approximately $233 million in annualized revenue. The Company currently has agreements in place and has closed acquisitions to date in 1998 representing an aggregate purchase price of $269.9 million. The Loewen Group Inc. is North America's second largest and fastest growing funeral home and cemetery operator in terms of revenue and assets. The Company employs approximately 18,000 employees and owns or operates over 1,000 funeral homes and 500 cemeteries in the United States, Canada and the United Kingdom. Over 90 per cent of the Company's revenue is derived from the United States. - more - 4 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. ### -----END PRIVACY-ENHANCED MESSAGE-----