LEVITTOWN, Pa., July 27, 2012 (GLOBE NEWSWIRE) -- StoneMor Partners L.P. (NYSE:STON) issued a statement today in response to recent market activity in its unit price.
CEO Larry Miller stated, "Normally, it is not the policy of StoneMor to respond to price action of our units. We feel an obligation to our unit holders to provide some information that adds insight into our business.
"StoneMor Partners, since becoming a publicly traded MLP, has acquired cemetery and funeral assets of more than $220 million. Because MLPs pay out most of their cash flow to unit holders, StoneMor, like every other MLP, finances these acquisitions with debt and periodic equity offerings. The table below highlights the sources of debt and equity capital obtained since 2007 and the use of this acquired capital.
| For the years ended December 31, | |||||
| 2007 | 2008 | 2009 | 2010 | 2011 | |
| (in thousands) | |||||
| Capital Sources | |||||
| Borrowings* | $ 73,713 | $ 33,188 | $ 246,788 | $ 74,727 | $ 46,573 |
| Equity raised | 50,788 | 500 | 24,189 | 45,714 | 105,733 |
| Capital Acquired | $ 124,501 | $ 33,688 | $ 270,977 | $ 120,441 | $ 152,306 |
| Capital Uses | |||||
| Debt repayments | $ 34,000 | $ 18,446 | $ 239,862 | $ 41,712 | $ 75,184 |
| Growth in accounts receivable | 2,430 | 6,678 | 9,770 | 15,357 | 9,241 |
| Growth in merchandise trust | 5,223 | 453 | 6,133 | 13,517 | 23,889 |
| Assets acquired | 86,777 | 17,046 | 12,180 | 49,551 | 29,186 |
| Total Uses | $ 128,430 | $ 42,623 | $ 267,945 | $ 120,137 | $ 137,500 |
| *Borrowings listed net of debt issuance costs. | |||||
"By following this formula, the company has effectively increased the size of its asset base while not significantly increasing its debt load which has allowed it to remain flexible and opportunistic in the acquisition market.
"As the table below exhibits, we have grown the company significantly without increasing the total debt.
A graph comparing total assets to total debt is available at https://media.globenewswire.com/cache/11738/file/14750.pdf.
"By continuing to grow, the company has built up a net asset base that will continue to provide for liquidity well into the future.
| March 31, 2012 | |
| (in thousands) | |
| Cash and Accounts Receivable, net | $ 126,782 |
| Merchandise Trust | 355,027 |
| Total Cash and Investments to Satisfy Liabilities | 481,809 |
| Accounts Payable and Accrued Liabilities | 22,332 |
| Cemetery Merchandise Liability | 128,220 |
| Payables and Merchandise liabilities | 150,552 |
| Net cash after satisfaction of liabilities | $ 331,257 |
| Debt outstanding | 203,126 |
| Net cash after satisfaction of debt | $ 128,131 |
"Were StoneMor to satisfy all of its liabilities as of March 31, 2012, the company would still have more than $128 million in cash, 12,800 acres in cemetery land, perpetual care trusts with a value in excess of $250 million and 272 cemeteries and 76 funeral homes.
"The company provides information on a production basis in order to allow the investor to understand the current sales activity and operating performance of the company. The following table illustrates the effect that growth has had on the recognition of revenues. In 2005, shortly after the company first went public and prior to the time that it began to experience growth, there was virtually no difference between GAAP and production based revenues.
A graph illustrating revenue is available at https://media.globenewswire.com/cache/11738/file/14750.pdf.
"Our business model provides a high level of predictability and stability. We have grown profitably even in challenging environments. The demographics of our industry provide us with a great deal of visibility into our future. There are very high barriers to entry to our business and the fragmented nature of the industry is also favorable to our model. We believe that we are ideally positioned to carry on our growth strategy and bring value to our unitholders. As previously announced, we will be paying our 32nd consecutive distribution, in the amount of 58.5 cents per unit, to unitholders on August 15th and will announce our second quarter earnings on August 7th, 2012," concluded Miller.
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 272 cemeteries and 76 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 which 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.
Forward-Looking Statements
Certain statements contained in this press release, including, but not limited to, information regarding the status and progress of the StoneMor's operating activities, the plans and objectives of StoneMor's management, assumptions regarding StoneMor's future performance and plans, and any financial guidance provided, as well as certain information in other filings with the SEC and elsewhere, are forward-looking statements within the meaning of Section 27A(i) of the Securities Act of 1933 and Section 21E(i) of the Securities Exchange Act of 1934. 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 actual results to differ materially from those stated, including, but not limited to, the following: uncertainties associated with the integration or the anticipated benefits of StoneMor's recent acquisitions; 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; the ability of StoneMor to service its debt and pay distributions; 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 political or regulatory environments, including potential changes in tax accounting and trusting policies; StoneMor's ability to successfully implement a strategic plan relating to producing operating improvements, strong cash flows and further deleveraging; StoneMor's ability to complete and fund additional acquisitions; StoneMor's ability to maintain effective disclosure controls and procedures and internal control over financial reporting; the effect of cybersecurity 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 and its Quarterly Reports on Form 10-Q filed with the SEC. StoneMor assumes no obligation to publicly 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.