StoneMor Inc. (NYSE: STON), a leading owner and
operator of cemeteries and funeral homes, today announced it has
signed a definitive agreement to sell the assets of Olivet Memorial
Park, Olivet Funeral and Cremation Services and Olivet Memorial
Park and Crematory (“Olivet”) located in Colma, California, to
Cypress Lawn Cemetery Association for a total purchase price of
$42.1 million - $25 million in cash plus $17.1 million in
assumption of lot takedown obligations, subject to certain
adjustments and credits.
Additionally, StoneMor announced that it has a signed separate
definitive agreement to sell the assets of its remaining California
locations to entities owned by John Yeatman and Guy Saxton for a
total purchase price of $7.1 million in cash, subject to certain
closing adjustments. The locations included in the
transaction are Melrose Abbey Memorial Park and Melrose Abbey
Mortuary in Anaheim, California, LaVerne Cemetery in LaVerne,
California, Lodi Memorial Park and Cemetery, Lodi Funeral Home and
Rocha’s Mortuary, in Lodi, California, Sierra View Memorial Park
and Sierra View Mortuary in Olivehurst, California, Sacramento
Memorial Lawn and Sacramento Funeral Home in Sacramento,
California, and Oakmont Funeral and Cremation Services in
Vacaville, California.
The transactions, which are expected to result in a gain, are
targeted to close, subject to confirmatory due diligence and
regulatory approvals, in the next 60 days.
On January 3, 2020, StoneMor completed the sale of Oakmont
Memorial Park & Mortuary to Carriage Services, Inc. for $33
million in cash, subject to certain adjustments.
Joe Redling, StoneMor’s President and Chief Executive Officer
said, “Coupled with the sale of Oakmont in January, these two
agreements represent a complete exit from the state of California
for StoneMor, which was a key component of our previously announced
divestiture strategy. Upon closing of these transactions, we
will have generated $65 million in closing proceeds at attractive
multiples, allowing us to reduce our debt levels and improve the
cash flow and liquidity profile of our business.”
“Additionally, with the exit of California, we have started the
process of optimizing our 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 during
the 2nd quarter of 2020.”
Per the indenture governing its Senior Secured PIK Toggle Notes
(“Senior Notes”), StoneMor will use the first $55 million of net
proceeds and 80% of the remaining portion of the net proceeds from
these sales to redeem a portion of the outstanding Senior
Notes.
Out of an abundance of caution surrounding the COVID-19
pandemic, the Company is postponing the release of its 2019 fourth
quarter and full year financial results and the previously
announced conference call to discuss those results. The
Company expects to announce next week a new date and time for the
foregoing release and conference call.
About StoneMor Inc.
StoneMor Inc., headquartered in Trevose, Pennsylvania, is an
owner and operator of cemeteries and funeral homes in the United
States, with 320 cemeteries and 88 funeral homes in 27 states and
Puerto Rico.
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 Inc., please visit StoneMor’s website, and the investors
section, at http://www.stonemor.com.
CONTACTInvestor RelationsStoneMor Inc.(215)
826-4438
Cautionary Note Regarding Forward-Looking
Statements
Certain statements contained in this press release, including,
but not limited to, information regarding the anticipated dates for
the closings of the sales and the release of 2019 results, as well
as continued implementation of StoneMor’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 the actual timing of the closing of
these and future divestitures to vary from those stated or implied
in this press release. StoneMor’s major risks that may impact such
timing are related to uncertainties associated with current
business and economic disruptions resulting from the recent
coronavirus outbreak and its ability to identify, and negotiate
acceptable agreements with, purchasers of additional
properties.,
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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