EX-99.1
2
a04-11270_1ex99d1.htm
EX-99.1
EXHIBIT
99.1
ALDERWOODS GROUP ANNOUNCES COMPLETION
OF SALE OF SECURITY
PLAN LIFE INSURANCE COMPANY
CINCINNATI
-
October 1,
2004
- Alderwoods Group, Inc.
(NASDAQ:AWGI)
is pleased to announce that
its subsidiary Mayflower National Life Insurance Company has today completed
the sale of all of the outstanding shares of Security Plan Life Insurance
Company to Citizens Insurance Company of America.
Mayflower received cash
proceeds from this sale of $85 million and Alderwoods Group expects to record a
pre-tax gain on the sale of approximately $16 million in the third quarter of
its 2004 fiscal year. After payment of applicable taxes and expenses associated
with the transaction and the recapitalization of Mayflower, which remains
subject to regulatory approval, Alderwoods Group expects to realize net
proceeds of approximately $60 million from this transaction. The Company plans to use the net proceeds of
the sale to further reduce its outstanding long-term debt.
"We are very pleased to have completed this transaction with Citizens
Insurance Company for our non-strategic life insurance business", said Paul
Houston, President and Chief Executive Officer of Alderwoods Group. "With the
sale of Security Plan Life Insurance and other assets previously identified for
sale, we continue to make progress on our divestiture program and on our
objective to strengthen Alderwoods' balance sheet".
Houston added, "Having completed the sale of Security Plan Life
Insurance, our wholly-owned subsidiary Mayflower will continue to focus on
building its funeral pre-need insurance business".
Company
Overview
Alderwoods Group is the
second largest operator of funeral homes and cemeteries in North America, based
upon total revenue and number of locations. As of June 19, 2004, the Company
operated 716 funeral homes, 130 cemeteries and 61 combination funeral home and
cemetery locations throughout North America. Of the Company's total locations,
59 funeral homes, 53 cemeteries and four combination funeral home and cemetery
locations were held for sales as of June 19, 2004. The Company provides funeral
and cemetery services and products on both an at-need and pre-need basis. In
support of the pre-need business, the Company operates insurance subsidiaries
that provide customers with a funding mechanism for the pre-arrangement of
funerals.
Safe Harbor
Certain statements contained in this press
release, including, but not limited to, information regarding the status and
progress of the Company's operating activities, the plans and objectives of the
Company's management, assumptions regarding the Company's future performance
and
1
plans, and any financial guidance provided, as
well as certain information in other filings with the SEC and elsewhere are
forward-looking statements within the meaning of Section 27A(i) of the
Securities Act of 1933 and Section 21E(i) of the Securities and Exchange Act of
1934. The words "believe", "may,"
"will", "estimate", "continues", "anticipate", "intend", "expect" and
similar expressions identify these forward-looking statements. These forward-looking statements are made
subject to certain risks and uncertainties that could cause actual results to
differ materially from those stated, including the following: uncertainties
associated with obtaining regulatory approval for the recapitalization of
Mayflower National Life Insurance Company; future revenue and revenue growth;
the impact of the Company's significant leverage on its operating plans; the
ability of the Company to service its debt; uncertainties associated with the
volume and timing of pre-need sales of funeral and cemetery services and
products; variances in death rates; variances in the use of cremation; and
various other uncertainties associated with the funeral service industry and
the Company's operations in particular, which are referred to in the Company's
periodic reports filed with the SEC or this press release. The Company
undertakes no obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
- 30 -
Contact:
Kenneth A. Sloan
Chaya Cooperberg
Executive Vice President,
Director,
Chief Financial Officer
Investor Relations and Communications
Alderwoods Group, Inc.
Alderwoods Group, Inc.
Tel: 416.498.2455
Tel: 416.498.2802
Fax: 416.498.2449
Fax: 416.498.2449
Email: ken.sloan@alderwoods.com
chaya.cooperberg@alderwoods.com
2

EX - 99 . 1 2 a04 - 11270 _ 1ex99d1 . htm EX - 99 . 1 EXHIBIT 99 . 1 ALDERWOODS GROUP ANNOUNCES COMPLETION OF SALE OF SECURITY PLAN LIFE INSURANCE COMPANY CINCINNATI - October 1 , 2004 - Alderwoods Group , Inc . ( NASDAQ : AWGI ) is pleased to announce that its subsidiary Mayflower National Life Insurance Company has today completed the sale of all of the outstanding shares of Security Plan Life Insurance Company to Citizens Insurance Company of America . Mayflower received cash proceeds from this sale of $ 85 million and Alderwoods Group expects to record a pre - tax gain on the sale of approximately $ 16 million in the third quarter of its 2004 fiscal year . After payment of applicable taxes and expenses associated with the transaction and the recapitalization of Mayflower , which remains subject to regulatory approval , Alderwoods Group expects to realize net proceeds of approximately $ 60 million from this transaction . The Company plans to use the net proceeds of the sale to further reduce its outstanding long - term debt . " We are very pleased to have completed this transaction with Citizens Insurance Company for our non - strategic life insurance business " , said Paul Houston , President and Chief Executive Officer of Alderwoods Group . " With the sale of Security Plan Life Insurance and other assets previously identified for sale , we continue to make progress on our divestiture program and on our objective to strengthen Alderwoods ' balance sheet " . Houston added , " Having completed the sale of Security Plan Life Insurance , our wholly - owned subsidiary Mayflower will continue to focus on building its funeral pre - need insurance business " . Company Overview Alderwoods Group is the second largest operator of funeral homes and cemeteries in North America , based upon total revenue and number of locations . As of June 19 , 2004 , the Company operated 716 funeral homes , 130 cemeteries and 61 combination funeral home and cemetery locations throughout North America . Of the Company 's total locations , 59 funeral homes , 53 cemeteries and four combination funeral home and cemetery locations were held for sales as of June 19 , 2004 . The Company provides funeral and cemetery services and products on both an at - need and pre - need basis . In support of the pre - need business , the Company operates insurance subsidiaries that provide customers with a funding mechanism for the pre - arrangement of funerals . Safe Harbor Certain statements contained in this press release , including , but not limited to , information regarding the status and progress of the Company 's operating activities , the plans and objectives of the Company 's management , assumptions regarding the Company 's future performance and 1 plans , and any financial guidance provided , as well as certain information in other filings with the SEC and elsewhere are forward - looking statements within the meaning of Section 27A ( i ) of the Securities Act of 1933 and Section 21E ( i ) of the Securities and Exchange Act of 1934 . The words " believe " , " may , " " will " , " estimate " , " continues " , " anticipate " , " intend " , " expect " and similar expressions identify these forward - looking statements . These forward - looking statements are made subject to certain risks and uncertainties that could cause actual results to differ materially from those stated , including the following : uncertainties associated with obtaining regulatory approval for the recapitalization of Mayflower National Life Insurance Company ; future revenue and revenue growth ; the impact of the Company 's significant leverage on its operating plans ; the ability of the Company to service its debt ; uncertainties associated with the volume and timing of pre - need sales of funeral and cemetery services and products ; variances in death rates ; variances in the use of cremation ; and various other uncertainties associated with the funeral service industry and the Company 's operations in particular , which are referred to in the Company 's periodic reports filed with the SEC or this press release . The Company undertakes no obligation to publicly release any revisions to these forward - looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events . - 30 - Contact : Kenneth A . Sloan Chaya Cooperberg Executive Vice President , Director , Chief Financial Officer Investor Relations and Communications Alderwoods Group , Inc . Alderwoods Group , Inc . Tel : 416 . 498 . 2455 Tel : 416 . 498 . 2802 Fax : 416 . 498 . 2449 Fax : 416 . 498 . 2449 Email : ken.sloan@alderwoods.com chaya.cooperberg@alderwoods.com 2