StoneMor Partners L.P. Announces Operating Arrangement With the Archdiocese of Philadelphia to Manage 13 Catholic Cemeteries
September 26 2013 - 2:53PM
StoneMor Partners L.P. (NYSE:STON) today announced that it executed
a lease and a management agreement with the Archdiocese of
Philadelphia. Under this arrangement, StoneMor will operate for a
period of 60 years, 13 Archdiocesan cemeteries located throughout
the five-county Philadelphia region. Upon closing, subject to
satisfaction of certain conditions precedent, StoneMor will provide
an initial lease payment of $53 million to the Archdiocese as well
as $36 million in future annual rent payments, which will begin to
accrue in year 6 of the arrangement.
Speaking of the arrangement, Larry Miller, President and Chief
Executive Officer of StoneMor Partners, commented, "We are
delighted with this transaction. The 13 cemeteries we will be
managing have performed a combined average of about 7,000 burials
per year. In terms of providing services to so many families
per year, this transaction marks the second largest enterprise we
have taken on since becoming public in 2004. As with previous
transactions, we will be bringing to each property our unique
expertise in offering and managing pre-need planning for
families. StoneMor has been successful to date in effectively
transitioning management and operations of properties that are new
to our portfolio, and we anticipate a continuation of that trend
here."
"Although there will be a change in management," continued
Miller, "All 13 Catholic cemeteries will continue to be owned by
the Archdiocese throughout the term of the
arrangement. Operations will be conducted in a manner
consistent with Catholic values and the core mission of the
cemeteries. The cemeteries will continue to carry out the
sacred duty of providing dignified Catholic burials for the
faithful departed according to all current practices and policies.
There will be no perceptible change for visitors to the cemeteries
or individuals seeking to provide interment rights for themselves
or their loved ones. It should be noted that parish cemeteries will
not be affected as they are operated at the local level and are not
part of this arrangement. We will also provide a level of care for
the properties consistent with historical practices."
About StoneMor Partners L.P.
StoneMor Partners L.P., headquartered in Levittown,
Pennsylvania, is an owner and operator of cemeteries and funeral
homes in the United States, with 277 cemeteries and 92 funeral
homes in 28 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 that provide for the
installation of this merchandise.
For additional information about StoneMor Partners
L.P., please visit StoneMor's website, and the Investor Relations
section, at http://www.stonemor.com.
About Catholic Cemeteries in the Archdiocese of
Philadelphia
Founded in 1849, the Catholic Cemeteries Office of the
Archdiocese of Philadelphia operates 13 cemeteries located in
Chester, Delaware, Bucks, Montgomery and Philadelphia counties.
Last year, it conducted about 7,000 burials. It is staffed by
approximately 160 full-time, year-round and approximately 30
seasonal employees in its central office at the Archdiocesan
Pastoral Center and at individual cemeteries.
For additional information about the Catholic Cemeteries of the
Archdiocese of Philadelphia, please visit
http://www.archphila-cemeteries.org/
Forward-Looking Statements
Certain statements contained in this press release,
including, but not limited to, information regarding the status and
progress of StoneMor's operating activities, the plans and
objectives of its management, assumptions regarding its future
performance and plans, and any financial guidance provided, as well
as certain information in other filings with the Securities and
Exchange Commission and elsewhere, are forward-looking
statements. The words "believe," "may," "will," "estimate,"
"continue," "anticipate," "intend," "project," "expect," "predict,"
and similar expressions identify these forward-looking
statements. These forward-looking statements are made subject
to certain risks and uncertainties that could cause StoneMor's
actual results of operations to differ materially from those
expressed or implied by forward-looking statements, including, but
not limited to, the following: uncertainties associated with
future revenue and revenue growth; the effect of the current
economic downturn; the impact of StoneMor's significant leverage on
its operating plans; StoneMor's ability to service its debt and pay
distributions; the decline in the fair value of certain equity and
debt securities held in its 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 improvement, strong cash flows
and further deleveraging; StoneMor's ability to successfully
compete in the cemetery and funeral home industry; uncertainties
associated with the integration or the anticipated benefits of
StoneMor's recent acquisitions and any future acquisitions;
StoneMor's ability to complete and fund this transaction or future
acquisitions; litigation or legal proceedings that could expose
StoneMor to significant liabilities and damage its reputation;
StoneMor's ability to maintain effective disclosure controls and
procedures and internal control over financial reporting; 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, the
reader 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 filed with the Securities and
Exchange Commission. 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 StoneMor, whether as a result of new
information, future events, or otherwise.
CONTACT: StoneMor Contact: John C. McNamara - Investors
(215) 826-2945
Christine Reimert - Media
610-639-2136 (cell)
Archdiocesan Contact: Kenneth A. Gavin
Director of Communications
215-587-3747
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