Stonemor Partners L.P. Reports Operating And Financial Results For Third Quarter 2016

  • Continued efforts to strengthen salesforce and drive pre-need billings 
  • Declared a quarterly cash distribution of $0.33 per limited partner unit 
  • Conference call scheduled at 11 a.m. ET on Wednesday, November 9, 2016

TREVOSE, Pa., Nov. 09, 2016 (GLOBE NEWSWIRE) -- StoneMor Partners L.P. (NYSE:STON) ("StoneMor" or the "Partnership") has reported operating and financial results for the third quarter 2016.

Third Quarter Summary
  As of & for the Three Months Ended    
  September 30,    
    2016     2015 (Restated)  
         
  (in thousands, except per unit data)  
Revenues  $ 78,536     $ 81,768    
                                         
Net loss  $     ( 11,644   )   $     ( 3,258   )  
         
Distributable Cash Flow (1)   $ 11,071     $ 18,811    
         
Distributable Available Cash (1)   $ 20,507     $ 32,214    
         
Cash Distributions   $ 11,103     $ 20,823    
  per unit  $ 0.33     $ 0.66    
         
Deferred Revenue  $ 896,752     $ 806,956    

  • On a GAAP basis, the Partnership generated a net loss of $11.6 million for the third quarter 2016 compared with a net loss of $3.3 million for the prior year third quarter, an unfavorable change of $8.3 million.  The change in earnings is primarily attributable to a $1.2 million decrease in cemetery revenue, a $1.7 million increase in cemetery expense, a $1.3 million increase in selling expense, and a $2.6 million increase in funeral home expenses. 
  • Distributable cash flow (1), a non-GAAP measure, was $11.1 million for the third quarter 2016 compared with $14.0 million for the prior year third quarter, a decrease of $2.9 million.  The change in distributable cash flow was primarily attributable to a $2.2 million increase in non-GAAP funeral home expenses, a $1.7 million increase in non-GAAP cemetery expense, a $1.4 million increase in non-GAAP selling expense, a $0.9 million increase in non-GAAP cost of goods sold, and a $1.1 million decrease in cemetery billings (2), partially offset by a $1.9 million increase in non-GAAP investment income from trusts.

(1)   Theses non-GAAP measures are used internally by the Partnership to measure Partnership operating performance, and management believes that they are relevant and helpful to investors in understanding that performance.  A reconciliation of non-GAAP measures with the most directly comparable  measures presented in accordance with GAAP is provided in the Financial and Operating Highlights table of this release (please see footnotes 1 and 3 to such table).  Non-GAAP measures used by the Partnership should not be considered as alternatives to GAAP measures, and you should not consider such non-GAAP measures in isolation or as a substitute for the Partnership's results as reported under GAAP.

(2)   Billings represent the value of contracts written, including sales of property during the relevant periods.
  • As previously announced, the Partnership declared a $0.33 distribution for the third quarter.  Management of the Partnership believes that the reduced cash distribution, along with previously announced cost savings measures of approximately $6.0 million annually, will enhance StoneMor's liquidity by approximately $12.0 million in quarterly cash savings.

Larry Miller, StoneMor's President and CEO, commented, "As we indicated in our previous announcement, third quarter financial results were disappointing.  We continue to work on upgrading the quality of our sales force through increased recruiting efforts and other initiatives.  The pace of progress has been below our expectations, but we believe our recent results are the result of a lack of execution and not due to any broad changes in the industry. The fundamentals of our industry continue to be predictable death rates, favorable demographics and large barriers to entry in the cemetery space, of which StoneMor is one of only a few scale players.  As we work on enhancing the quality and size of our sales force, we intend to provide updates on its expansion in an effort to provide visibility on our efforts and data points by which investors may monitor our progress.

If you liked this article you might like

These Two MLPs Are Unlikely to Mount a Turnaround in 2017

5 Stocks Poised for Major Breakouts

3 Stocks With Super-High Yields and a Decade or More of Rising Dividends

'Mad Money' Lightning Round: Lockheed Martin Can Fly to $210

Jim Cramer's 'Mad Money' Recap: The Urge to Merge Rules Wall Street