StoneMor Partners L.P. (NYSE:STON)
(“StoneMor” or the Partnership”) today announced
that the Partnership intends to restate its consolidated financial
statements for the fiscal years ended December 31, 2013 through
2015 and the fiscal quarters ended March 31, 2016 and June 30,
2016. The restatement is not expected to have any impact to net
income (loss), total assets, total liabilities, total partner’s
capital, Adjusted EBITDA, Distributable Cash Flow, or cash
distributions for the aforementioned periods.
Upon further review of prevailing accounting literature, and in
consultation with the Audit Committee of its Board of Directors,
the Partnership determined that it incorrectly allocated net loss
to the general partner and its limited partners for the referenced
historical periods. While this misallocation had no impact on total
net loss for each of the referenced historical periods, it impacted
net loss per limited partner unit on the Partnership’s consolidated
statements of operations. In addition, the allocation of net
loss between the general partner and limited partners is utilized
in the determination of the general partner’s and limited partners’
capital accounts within partners’ capital on the Partnership’s
consolidated balance sheets. As such, while the misallocation
had no impact on overall partners’ capital, total assets or total
liabilities, it impacted the general partner’s and limited
partners’ capital accounts within partners’ capital on the
consolidated balance sheets.
The Partnership’s consolidated financial statements for the
fiscal years ended December 31, 2013 through 2015 and the
fiscal quarters ended March 31, 2016 and June 30, 2016 will be
restated in amendments to the Partnership’s Annual Report on Form
10-K and Quarterly Reports on Form 10-Q, as applicable, which are
expected to be filed with the SEC during or before October
2016.
The Partnership has presented a summary of its planned
adjustments (subject to final audit and review) to amounts
previously reported in the tables below (amounts in thousands,
except per unit data):
Consolidated Statements of Operations:
|
|
Net
Loss |
General
Partner’sInterest |
Limited
Partners’Interest |
Net Loss
Per Limited Partner Unit (Basic and
Diluted) |
|
|
As
Reported |
As
Restated |
As
Reported |
As
Restated |
As
Reported |
As
Restated |
As
Reported |
As
Restated |
Year
Ended: |
|
|
|
|
|
|
|
|
|
December 31, 2015 |
|
$ |
(24,244 |
) |
$ |
(24,244 |
) |
$ |
(315 |
) |
$ |
3,595 |
|
$ |
(23,929 |
) |
$ |
(27,839 |
) |
$ |
(0.79 |
) |
$ |
(0.91 |
) |
December 31, 2014 |
|
$ |
(10,773 |
) |
$ |
(10,773 |
) |
$ |
(155 |
) |
$ |
2,074 |
|
$ |
(10,618 |
) |
$ |
(12,847 |
) |
$ |
(0.40 |
) |
$ |
(0.48 |
) |
December 31, 2013 |
|
$ |
(19,032 |
) |
$ |
(19,032 |
) |
$ |
(350 |
) |
$ |
921 |
|
$ |
(18,682 |
) |
$ |
(19,953 |
) |
$ |
(0.89 |
) |
$ |
(0.95 |
) |
|
|
|
|
|
|
|
|
|
|
Quarter
Ended: |
|
|
|
|
|
|
|
|
|
March 31, 2016 |
|
$ |
(7,659 |
) |
$ |
(7,659 |
) |
$ |
(93 |
) |
$ |
1,086 |
|
$ |
(7,566 |
) |
$ |
(8,745 |
) |
$ |
(0.23 |
) |
$ |
(0.27 |
) |
June 30, 2016 |
|
$ |
(9,079 |
) |
$ |
(9,079 |
) |
$ |
(103 |
) |
$ |
1,080 |
|
$ |
(8,976 |
) |
$ |
(10,159 |
) |
$ |
(0.26 |
) |
$ |
(0.29 |
) |
|
|
|
|
|
|
|
|
|
|
Year to
Date: |
|
|
|
|
|
|
|
|
|
June 30, 2016 |
|
$ |
(16,738 |
) |
$ |
(16,738 |
) |
$ |
(196 |
) |
$ |
2,166 |
|
$ |
(16,542 |
) |
$ |
(18,904 |
) |
$ |
(0.49 |
) |
$ |
(0.56 |
) |
|
|
|
|
|
|
|
|
|
|
Quarter
Ended: |
|
|
|
|
|
|
|
|
|
March 31, 2015 |
|
$ |
(8,883 |
) |
$ |
(8,883 |
) |
$ |
(120 |
) |
$ |
680 |
|
$ |
(8,763 |
) |
$ |
(9,563 |
) |
$ |
(0.30 |
) |
$ |
(0.33 |
) |
June 30, 2015 |
|
$ |
(4,848 |
) |
$ |
(4,848 |
) |
$ |
(65 |
) |
$ |
896 |
|
$ |
(4,783 |
) |
$ |
(5,744 |
) |
$ |
(0.16 |
) |
$ |
(0.20 |
) |
|
|
|
|
|
|
|
|
|
|
Year to
Date: |
|
|
|
|
|
|
|
|
|
June 30, 2015 |
|
$ |
(13,731 |
) |
$ |
(13,731 |
) |
$ |
(185 |
) |
$ |
1,576 |
|
$ |
(13,546 |
) |
$ |
(15,307 |
) |
$ |
(0.46 |
) |
$ |
(0.53 |
) |
Consolidated Balance Sheets:
|
|
Total
Partners’ Capital |
|
General
Partner Interest |
|
Common
Limited Partners’ Interests |
|
|
As
Reported |
As
Restated |
As
Reported |
As
Restated |
As
Reported |
As
Restated |
As
of: |
|
|
|
|
|
|
|
December 31, 2015 |
|
$ |
|
183,678 |
|
$ |
183,678 |
|
$ |
|
(10,038 |
) |
$ |
114 |
|
|
$ |
193,716 |
|
$ |
183,564 |
|
December 31, 2014 |
|
$ |
|
208,762 |
|
$ |
208,762 |
|
$ |
|
(5,113 |
) |
$ |
1,129 |
|
|
$ |
213,875 |
|
$ |
207,633 |
|
|
|
|
|
|
|
|
|
March 31, 2016 |
|
$ |
|
173,633 |
|
$ |
173,633 |
|
$ |
|
(11,495 |
) |
$ |
(164 |
) |
|
$ |
185,128 |
|
$ |
173,797 |
|
June 30, 2016 |
|
$ |
|
197,424 |
|
$ |
197,424 |
|
$ |
|
(13,054 |
) |
$ |
(540 |
) |
|
$ |
210,478 |
|
$ |
197,964 |
|
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 317 cemeteries and 107 funeral
homes in 29 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.
Cautionary Note Regarding
Forward-Looking Statements
Certain statements contained in this press
release, including, but not limited to, information regarding
StoneMor’s continuing analysis and review of the historical
allocation of net income (loss) to the general partner and limited
partners, the restatement of its consolidated financial statements,
the plans and objectives of StoneMor’s management, assumptions
regarding StoneMor’s future performance and plans, and any
financial guidance provided or guidance related to StoneMor’s
future distributions, as well as certain information in StoneMor’s
other filings with the SEC and elsewhere, are forward-looking
statements. Generally, the words “believe,” “may,” “will,”
“estimate,” “continue,” “anticipate,” “intend (including, but not
limited to StoneMor’s intent to maintain or increase its
distributions),” “project,” “expect,” “predict” and similar
expressions identify these forward-looking statements.
These forward-looking statements are
based on management’s current expectations and estimates. These
statements are neither promises nor guarantees and are made subject
to risks and uncertainties that could cause actual results to
differ materially from those stated or implied by the
forward-looking statements, including, without limitation, risks
relating to additional information arising from StoneMor’s
continuing analysis and review of the historical allocation of net
income (loss) to the general partner and limited partners and its
prior financial statements, as well as the review and audit by
StoneMor’s independent auditors of StoneMor’s prior financial
statements, StoneMor’s ability to maintain an effective system of
internal controls and disclosure controls, 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, its ability to service its debt and pay
distributions, and its ability to increase its
distributions.
StoneMor’s additional risks and uncertainties
include, but are not limited to, the following: 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
complete and fund additional acquisitions; 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 implement a strategic plan relating to achieving
operating improvements, strong cash flows and further deleveraging;
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; 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 filed
with the Securities and Exchange Commission on February 29, 2016
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.
CONTACT: John McNamara
Director - Investor Relations
StoneMor Partners L.P.
(215) 826-2945
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