STONEMOR INC. ANNOUNCES STRATEGIC MULTI-YEAR PROPERTY MANAGEMENT AND OPERATIONAL SERVICES AGREEMENT WITH MOON LANDSCAPING
April 02 2020 - 4:49PM
StoneMor Inc. (NYSE: STON), a leading owner and
operator of cemeteries and funeral homes, today announced it has
entered into a multi-year Master Services Agreement (“MSA”) with
Moon Landscaping (“Moon”) to develop, implement and provide all
manner of property management and operational services at most of
the funeral homes, cemeteries and other properties owned or managed
by StoneMor.
Under the terms of the MSA, Moon will hire all
of StoneMor’s grounds and maintenance employees at the serviced
locations and will perform all functions currently handled by those
employees, including, but not limited to, landscaping, openings and
closings, burials, installations, routine maintenance and
janitorial services. The implementation of the MSA will take
place on a clustered basis over the next three to four months, with
full implementation expected no later than July 31, 2020.
The total value of the contract, which runs
through December 31, 2024, is approximately $241 million, based
upon an initial annual cost of $49 million and annual increases of
2%. The first year cost will be prorated based upon exact
implementation and roll-out schedule for each location. As
part of the MSA, Moon is leasing StoneMor’s landscaping and
maintenance equipment for the duration of the agreement.
StoneMor expects to achieve annual savings of 10-15% compared to
current property management costs.
The MSA also includes customary notice
provisions for termination by either party.
“After the success of pilot programs launched
during the first quarter of 2020 at 57 properties in Virginia,
North Carolina and South Carolina, we are excited to launch this
program on a larger scale,” said Joe Redling, StoneMor’s President
and Chief Executive Officer. “This is an innovative approach
for the industry and we believe it is transformational on many
levels: Our customers will enjoy better maintained locations;
our former maintenance employees will benefit from new career
opportunities at a large, nationally recognized landscaping
company; and the Company will realize significant cost savings
while improving professional oversight and accountability for our
properties.”
Bill Hutchins, President of Moon Landscaping
said, “on behalf of Moon Landscaping, we are excited about the
opportunity to partner with StoneMor through this transformational
process. We look forward to welcoming StoneMor’s valued and
experienced maintenance employees into the Moon family. The
experience and reliability of these employees coupled with Moon’s
property management experience will allow us to bring new levels of
service and efficiency to StoneMor.”
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 implementation timing and the potential savings; and
other anticipated benefits of the new arrangements, 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
implementation 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
pandemic.
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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