BENSALEM, PA - August 11, 2022 - StoneMor Inc. (NYSE: STON) ("StoneMor" or the "Company"), a leading owner and operator of cemeteries and funeral homes, today reported operating and financial results for the second quarter ended June 30, 2022. Investors are encouraged to read the Company's quarterly report on Form 10-Q when it is filed with the Securities and Exchange Commission (the "SEC"), which will contain additional details, and will be posted at www.stonemor.com.
SECOND QUARTER FINANCIAL PERFORMANCE
- Revenues for the second quarter were $80.0 million compared to $83.0 million in in the second quarter in the prior year. Six-month revenues were $161.0 million compared to $161.3 million in the prior year period.
- Cemetery segment operating income for the
second quarter was $5.3 million compared to $14.7 million in the second quarter
in the prior year, representing a decrease of $9.3 million. Six-month cemetery segment operating income
was $13.4 million compared to $26.3 million in the prior year period,
representing a decrease of $13.0 million.
- Funeral home segment operating loss for
the second quarter was $0.1 million compared to operating income of $1.2
million in the second quarter in the prior year, representing a decrease of
$1.4 million. Six-month funeral home
segment operating income was $1.2 million compared to $2.8 million in the prior
year period, representing a decrease of $1.6 million.
- Corporate overhead expense increased to
$12.8 million in the second quarter compared to $9.5 million in the second
quarter in the prior year. Six-month
corporate overhead expense increased to $24.6 million compared to $19.1 million
in the prior year period.
- Second quarter operating loss was $7.8
million compared to operating income of $4.1 million in the second quarter in
the prior year.
- Second quarter net loss from continuing operations was $17.3 million compared to $36.2 million in the second quarter in the prior year.
- Second quarter adjusted EBITDA was $12.1 million compared to $32.1 million in the second quarter in the prior year.
Joe
Redling, StoneMor's President and Chief Executive Officer said, "During the
second quarter of 2022, our teams continued to deliver strong sales production
performance, even as we faced tough comparisons after our record performance
throughout 2021. Specifically, our
cemetery sales production grew 6.5% in the second quarter of 2022, compared
with the same quarter of 2021, including 12% growth related to our pre-need
sales production. We continue to focus
on managing our costs to combat the inflationary pressures from suppliers and
managing certain extraordinary costs associated with our various corporate
initiatives that have had a negative impact on our performance."
LIQUIDITY UPDATE
As
of June 30, 2022, the Company had $83.3 million of cash, including $12.0
million of restricted cash, and $392.6 million of total debt.
"Through
the second quarter, we remain confident that we will meet or exceed our
previously announced 2022 annual guidance targets for organic growth in our
trusts of $70 million and unlevered free cash flow of $40 million," said Jeff
DiGiovanni, StoneMor's Senior Vice President and Chief Financial Officer. "For
the six months ended June 30, 2022, we generated $36.6 million in organic trust
growth, which excluded $10.3 million in trust funds added through our recent
acquisitions, as well as $17.6 million in unlevered free cash flow."
CONFERENCE
CALL INFORMATION
StoneMor
will conduct a conference call to discuss this news release today, August 11,
2022 at 4:30 p.m. Eastern Time. The conference call can be accessed by
calling (800) 954-0601. No reservation
number is necessary; however, it is advised that interested parties access the
call-in number 5 to 10 minutes prior to the scheduled start time to avoid
delays. StoneMor will also host a live
webcast of this conference call.
Investors may access the live webcast via the Investors page of the
StoneMor website www.stonemor.com
under Events & Presentations.
About
StoneMor Inc.
StoneMor
Inc., headquartered in Bensalem, Pennsylvania, is an owner and operator of
cemeteries and funeral homes in the United States, with 304 cemeteries and 72
funeral homes in 24 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.
CONTACT
Investor Relations
StoneMor Inc.
(215) 826-4438
Cautionary
Note Regarding Forward-Looking Statements
Certain statements
contained in this press release, including, but not limited to, statements
regarding the Company's achievement of its 2022 organic trust growth and
unlevered free cash flow guidance targets, 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 actual results to differ materially
from the results stated or implied in this press release. StoneMor's major
risks are related to uncertainties associated with current business and
economic disruptions resulting from the ongoing coronavirus pandemic, including
the effect of government regulations issued in connection therewith, its
ability to identify, and negotiate acceptable agreements with, sellers of
additional properties, 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 and service its debt, as well as with
StoneMor's ability to maintain an effective system of internal control over
financial reporting and disclosure controls and procedures.
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.
Non-GAAP Financial Measures
This
release includes certain non-GAAP financial measures, including adjusted
EBITDA, Field EBITDA and unlevered free cash flow, which are intended as supplemental
measures of the Company's performance that are not required by or presented in
accordance with GAAP. All business results presented in this release are not
prepared in accordance with Article 11 of Regulation S-X.
Management
uses these non-GAAP measures internally to evaluate and manage the Company's
operations and to better understand its business because they facilitate a
comparative assessment of the Company's operating performance relative to its
performance based on results calculated under GAAP. These non-GAAP measures
also isolate the effects of some items that vary from period to period without
any correlation to core operating performance and eliminate certain charges
that management believes do not reflect the Company's operations and underlying
operational performance. The Compensation, Nominating and Governance Committee
of the Company's board of directors also uses certain of these measures to
evaluate management's performance and set its compensation. The Company
believes that these non-GAAP measures also provide useful information to
investors regarding certain financial and business trends relating to the
Company's financial condition and operating results and facilitate an
evaluation of the financial performance of the Company and its operations on a
consistent basis. Providing this information therefore allows investors to make
independent assessments of the Company's financial performance, results of
operation and trends while viewing the information through the eyes of management.
These non-GAAP measures are subject to limitations. The non-GAAP measures presented in this release may not be comparable to similarly titled measures used by other companies because other companies may not calculate one or more in the same manner. Additionally, the non-GAAP performance measures exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements; do not reflect changes in, or cash requirements for, working capital needs; and do not reflect interest expense, or the requirements necessary to service interest or principal payments on debt. Further, our historical adjusted results are not intended to project our adjusted results of operations or financial position for any future period. To compensate for these limitations, management presents and considers these non-GAAP measures in conjunction with the Company's GAAP results; no non-GAAP measure should be considered in isolation from or as an alternative to net income, earnings per share or any other measure determined in accordance with GAAP. Readers should review the reconciliations included below, and should not rely on any single financial measure to evaluate the Company's business.