LEVITTOWN, Pa., Sept. 26, 2013 (GLOBE NEWSWIRE) -- 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.
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
