STONEMOR PARTNERS LP

CIK:0001286131|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Revenues	$ 73,151	$ 73,185	$ 223,115	$ 232,701
Costs and Expenses:
Cost of goods sold	10,677	12,866	31,263	39,387
Cemetery expense	18,362	19,407	57,245	57,828
Selling expense	14,609	14,251	44,839	47,673
General and administrative expense	11,033	10,916	33,430	32,037
Corporate overhead	11,595	12,876	38,145	39,868
Depreciation and amortization	2,647	2,737	8,120	8,853
Total costs and expenses	79,592	83,201	245,678	259,481
Other gains (losses), net	(129)	702	(3,558)	(4,503)
Operating loss	(6,570)	(9,314)	(26,121)	(31,283)
Interest expense	(12,765)	(7,638)	(35,282)	(22,858)
Loss on debt extinguishment			(8,478)
Loss on impairment of goodwill	(24,862)		(24,862)
Loss from operations before income taxes	(44,197)	(16,952)	(94,743)	(54,141)
Income tax benefit (expense)	1,545	(273)	(4,841)	1,976
Net loss	(42,652)	(17,225)	(99,584)	(52,165)
General partner’s interest	(426)	(179)	(1,018)	(543)
Limited partners’ interest	$ (42,226)	$ (17,046)	$ (98,566)	$ (51,622)
Net loss per limited partner unit (basic and diluted)	$ (1.09)	$ (0.45)	$ (2.56)	$ (1.36)
Weighted average number of limited partners’ units outstanding (basic and diluted)	38,916	37,959	38,438	37,959
Cemetery
Revenues:
Revenues	$ 60,750	$ 61,405	$ 184,288	$ 191,328
Costs and Expenses:
Depreciation and amortization	1,853	1,858	5,735	6,043
Operating costs and expenses	54,681	57,440	166,777	176,925
Cemetery \| Interments
Revenues:
Revenues	15,605	17,716	52,544	58,130
Cemetery \| Merchandise
Revenues:
Revenues	18,014	18,023	51,870	51,766
Cemetery \| Services
Revenues:
Revenues	17,068	16,419	50,400	50,647
Cemetery \| Investment and other
Revenues:
Revenues	10,063	9,247	29,474	30,785
Funeral Home
Revenues:
Revenues	12,401	11,780	38,827	41,373
Costs and Expenses:
Depreciation and amortization	602	652	1,788	2,066
Operating costs and expenses	10,669	10,148	32,636	33,835
Funeral Home \| Merchandise
Revenues:
Revenues	5,572	5,581	17,920	19,532
Costs and Expenses:
Operating costs and expenses	1,896	1,341	5,227	4,927
Funeral Home \| Services
Revenues:
Revenues	6,829	6,199	20,907	21,841
Costs and Expenses:
Operating costs and expenses	5,351	5,493	16,363	16,593
Funeral Home \| Investment and other
Costs and Expenses:
Operating costs and expenses	$ 3,422	$ 3,314	$ 11,046	$ 12,315

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash Flows From Operating Activities:
Net loss	$ (99,584)	$ (52,165)
Adjustments to reconcile net loss to net cash provided by operating activities:
Cost of lots sold	5,339	5,850
Depreciation and amortization	8,120	8,853
Provision for bad debt	5,380	3,776
Non-cash compensation expense	2,814	2,026
Loss on debt extinguishment	8,478
Loss on impairment of goodwill	24,862
Non-cash interest expense	12,435	4,576
Non-cash impairment charge and other losses, net	3,558	4,503
Changes in assets and liabilities:
Accounts receivable, net of allowance	(14,305)	5,574
Merchandise trust fund	(11,137)	(6,917)
Other assets	(1,339)	(2,047)
Deferred selling and obtaining costs	(1,850)	(4,780)
Deferred revenues	23,860	40,361
Deferred taxes, net	4,620	(2,545)
Payables and other liabilities	1,994	12,346
Net cash (used in) provided by operating activities	(26,755)	19,411
Cash Flows From Investing Activities:
Cash paid for capital expenditures	(5,743)	(10,164)
Cash paid for acquisitions		(1,667)
Proceeds from divestitures	1,250
Proceeds from asset sales		954
Net cash used in investing activities	(4,493)	(10,877)
Cash Flows From Financing Activities:
Proceeds from issuance of redeemable convertible preferred units, net	57,500
Proceeds from borrowings	406,087	23,880
Repayments of debt	(366,644)	(27,924)
Principal payment on finance leases	(1,098)
Cost of financing activities	(17,972)	(3,268)
Units repurchased and retired related to unit-based compensation	(677)
Net cash provided by (used in) financing activities	77,196	(7,312)
Net increase in cash, cash equivalents and restricted cash	45,948	1,222
Cash, cash equivalents and restricted cash—Beginning of period	18,147	6,821
Cash, cash equivalents and restricted cash—End of period	64,095	8,043
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	24,444	15,809
Cash paid during the period for income taxes	1,470	1,517
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	2,759
Operating cash flows from finance leases	370
Financing cash flows from finance leases	1,098
Non-cash investing and financing activities:
Acquisition of assets by financing	$ 2,234	1,620
Classification of assets as held for sale		$ 543

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents, excluding restricted cash	$ 43,515	$ 18,147
Restricted cash	20,580
Accounts receivable, net of allowance	61,470	57,928
Prepaid expenses	5,630	4,475
Other current assets	18,148	17,766
Total current assets	149,343	98,316
Long-term accounts receivable, net of allowance	78,138	87,148
Cemetery property	328,612	330,841
Property and equipment, net of accumulated depreciation	108,992	112,716
Merchandise trusts, restricted, at fair value	519,529	488,248
Perpetual care trusts, restricted, at fair value	343,028	330,562
Deferred selling and obtaining costs	113,601	112,660
Deferred tax assets	55	86
Goodwill		24,862
Intangible assets	56,562	61,421
Other assets	32,663	22,241
Total assets	1,730,523	1,669,101
Current liabilities:
Accounts payable and accrued liabilities	64,585	59,035
Accrued interest		1,967
Current portion, long-term debt	503	798
Total current liabilities	65,088	61,800
Long-term debt, net of deferred financing costs	362,173	320,248
Deferred revenues	943,555	914,286
Deferred tax liabilities	11,264	6,675
Perpetual care trust corpus	343,028	330,562
Other long-term liabilities	51,940	42,108
Total liabilities	1,777,048	1,675,679
Commitments and contingencies
Redeemable convertible preferred units:
Total redeemable convertible preferred units	57,500
Partners’ deficit :
General partner interest	(5,026)	(4,008)
Common limited partners’ interest	(98,999)	(2,570)
Total partners’ deficit	(104,025)	(6,578)
Total liabilities, redeemable convertible preferred units and partners’ deficit	1,730,523	$ 1,669,101
Series A Preferred Units
Redeemable convertible preferred units:
Total redeemable convertible preferred units	$ 57,500