StoneMor Partners L.P. Provides Update on Accounting Review
July 17 2017 - 6:59AM
StoneMor Partners L.P. (NYSE:STON)
(“StoneMor” or the “Partnership”) today provided
an update regarding its ongoing review of certain of the
Partnership’s previously issued consolidated financial
statements. The Partnership is working to complete the
review, but at this time it remains ongoing. The Partnership
continues to believe that the revisions to previously reported
financial information resulting from this review will principally
reflect a net decrease in deferred revenues and deferred selling
costs and an increase in partners’ capital on its previously
reported consolidated balance sheets. The Partnership also
continues to expect that the results of these corrections will have
an immaterial impact on cash flows for the three years ended
December 31, 2016.
The Partnership remains committed to filing its Annual Report on
Form 10-K for the fiscal year ended December 31, 2016 (the “Form
10-K”) as promptly as practicable, and believes it will be able to
do so within the next two to four weeks. The Partnership’s
failure to file the Form 10-K before July 15, 2017 was an event of
default under its revolving credit agreement.
Additionally, under the terms of its credit agreement, the
Partnership is obligated to file its Quarterly Report on Form 10-Q
for the fiscal quarter ended March 31, 2017 (the “First Quarter
10-Q”) within 45 days after the Form 10-K is filed. The
Partnership is also obligated to file its Quarterly Report on Form
10-Q for the fiscal quarter ended June 30, 2017 (the “Second
Quarter 10-Q”) on or before August 14, 2017. Because of the
ongoing accounting review and the work required to file multiple
reports (Form 10-K, First Quarter 10-Q, and Second Quarter 10-Q) in
such a condensed time period on or before August 14, 2017, the
Partnership believes it is likely that it will not be able to file
the Second Quarter 10-Q by that date. The Partnership has
communicated with all its lenders that it will be seeking a waiver
or other relief to extend the time for filing the Form 10-K and
expects to seek similar relief to extend the time for filing the
Second Quarter 10-Q.
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 316 cemeteries and 98 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.
Cautionary Note Regarding
Forward-Looking Statements
Certain statements contained in this press
release, including, but not limited to, information regarding the
restatement of StoneMor’s consolidated financial statements,
expected timing of filings and efforts to obtain waivers or other
relief from the Partnership’s lenders 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, pay distributions, and
increase its distributions, 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, risks and uncertainties related to
the following: the difficulty of predicting the timing of the
completion of the restatement of its consolidated financial
statements, its impact on the Partnership’s financial results and
the timing of the related filings; additional information arising
from the Partnership’s continuing analysis and review of its
historical recognition of revenue and its prior financial
statements and the performance of additional work in this regard,
as well as the review and audit by the Partnership’s registered
independent public accounting firm of the Partnership’s prior
financial statements; the consequences of the Partnership’s
delinquent filing of the Form 10-K, including that the U.S.
Securities and Exchange Commission could institute an
administrative proceeding seeking the revocation of the
registration of the Partnership’s common units under the Exchange
Act, and that the Partnership is delinquent in its required filings
with the New York Stock Exchange (“NYSE”) and could ultimately face
the possible delisting of its common units from the NYSE; the
existence of a default under the Partnership’s credit facility
because the Form 10-K was not filed prior to July 15, 2017; the
existence of a default under the indenture governing its senior
notes if the Form 10-K and any other delinquent report are not
filed within 120 days after notice from the trustee under the
indenture; and the Partnership’s ability to obtain relief from its
creditors under its credit facility or the indenture governing its
senior notes, the terms on which such relief might be granted and
any restrictions that might be imposed in connection with any
relief that might be obtained.
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
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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