StoneMor Partners L.P. Announces Agreement to Sell Oakmont Memorial Park & Mortuary to Carriage Services, Inc. for $33 Millio...
December 04 2019 - 4:15PM
StoneMor Partners L.P. (NYSE: STON) (“StoneMor” or the
“Partnership”), a leading owner and operator of cemeteries
and funeral homes, today announced it has signed a definitive
agreement to sell the assets of Oakmont Memorial Park &
Mortuary (“Oakmont”) located in Lafayette, California, to Carriage
Services, Inc. for a total purchase price of $33 million in cash,
subject to customary working capital adjustments.
Joe Redling, StoneMor’s President and Chief Executive Officer
said, “The sale of Oakmont is a significant achievement in
accordance with our previously announced divestiture strategy. It
allows us to divest assets at attractive multiples, reduce debt
levels and improve the cash flow and liquidity profile of the
business.
“Additionally, this sale represents a pivotal first step in
optimizing our operating footprint. We remain focused on executing
our divestiture strategy in geographic areas where we lack
meaningful operating scale. This will allow us to focus our efforts
and investments in markets where we can effectively leverage our
economies of scale to further improve the profitability of the
business. We expect to finalize additional transactions supporting
our divestiture strategy by the end of the 1st quarter of
2020.”
Per the indenture governing its Senior Secured PIK Toggle Notes
(“Senior Notes”), StoneMor will use all of the net proceeds from
this sale to redeem a portion of its outstanding Senior Notes.
The transaction is expected to close, subject to confirmatory
due diligence and regulatory approvals, in early January 2020.
About StoneMor Partners L.P.StoneMor Partners
L.P., headquartered in Trevose, Pennsylvania, is an owner and
operator of cemeteries and funeral homes in the United States, with
321 cemeteries and 89 funeral homes in 27 states and Puerto
Rico.
StoneMor is the only publicly traded death care company
structured as a partnership. StoneMor’s cemetery products and
services, which are sold on both a pre-need (before death) and
at-need (at death) basis, include: burial lots, lawn and mausoleum
crypts, burial vaults, caskets, memorials, and all services which
provide for the installation of this merchandise. For additional
information about StoneMor Partners L.P., please visit StoneMor’s
website, and the investors section, at http://www.stonemor.com.
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CONTACT: |
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Investor Relations |
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StoneMor Partners L.P. |
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(215) 826-4440 |
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Cautionary Note Regarding Forward-Looking
StatementsCertain statements contained in this press
release, including, but not limited to, information regarding the
anticipated closing date for the sale, as well as continued
implementation of the Partnership’s divestiture strategy, are
forward-looking statements. Generally, the words “believe,” “may,”
“will,” “estimate,” “continue,” “anticipate,” “intend,” “project,”
“expect,” “predict” and similar expressions identify these
forward-looking statements. These statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.
Forward-looking statements are based on management’s current
expectations and estimates. These statements are neither promises
nor guarantees and are made subject to certain risks and
uncertainties that could cause actual results to differ materially
from the results stated or implied in this press release.
StoneMor’s major risks are related to uncertainties associated with
the cash flow from pre-need and at-need sales,
trusts and financings, which may impact StoneMor’s ability to meet
its financial projections, service its debt and resume paying
distributions, with the proposed merger and whether and when the
transactions contemplated by the merger and reorganization
agreement will be consummated, as well as with StoneMor’s ability
to maintain an effective system of internal control over financial
reporting and disclosure controls and procedures.
StoneMor’s additional risks and uncertainties include, but are
not limited to: uncertainties associated with future revenue and
revenue growth; uncertainties associated with the integration or
anticipated benefits of recent acquisitions or any future
acquisitions; StoneMor’s ability to successfully implement its
strategic plan relating to completing asset divestitures and
achieving operating improvements, including improving sales
productivity and reducing operating expenses; the effect of
economic downturns; the impact of StoneMor’s significant leverage
on its operating plans; the decline in the fair value of certain
equity and debt securities held in StoneMor’s trusts; StoneMor’s
ability to attract, train and retain an adequate number of sales
people; uncertainties associated with the volume and timing
of pre-need sales of cemetery services and products;
increased use of cremation; changes in the death rate; changes in
the political or regulatory environments, including potential
changes in tax accounting and trusting policies; StoneMor’s ability
to successfully compete in the cemetery and funeral home industry;
litigation or legal proceedings that could expose StoneMor to
significant liabilities and damage StoneMor’s reputation, including
but not limited to litigation and governmental investigations or
proceedings arising out of or related to accounting and financial
reporting matters; the effects of cyber security attacks due to
StoneMor’s significant reliance on information technology;
uncertainties relating to the financial condition of third-party
insurance companies that fund StoneMor’s pre-need funeral
contracts; and various other uncertainties associated with the
death care industry and StoneMor’s operations in particular.
When considering forward-looking statements, you should keep in
mind the risk factors and other cautionary statements set forth in
StoneMor’s Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q and the other reports that StoneMor
files with the Securities and Exchange Commission, from time to
time. Except as required under applicable law, StoneMor assumes no
obligation to update or revise any forward-looking statements made
herein or any other forward-looking statements made by it, whether
as a result of new information, future events or otherwise.
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