TREVOSE, Pa., Sept. 02, 2016 (GLOBE NEWSWIRE) -- 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’s Interest | 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
