Stonemor Partners (STON) Reports Q3 Loss of $1.09

Stonemor Partners (NYSE: STON) reported Q3 EPS of ($1.09), versus $0.45 reported last year. Revenue for the quarter came in at $73.2 million versus the consensus estimate of $85.58 million.

Quarterly Summary

• Revenues for the three months ended September 30, 2019 were $73.2 million compared to $73.2 million in the prior year period.
• Cemetery segment income for the three months ended September 30, 2019 was $4.2 million compared to $2.1 million in the prior year period, representing an improvement of$2.1 million.
• Funeral home segment income for the three months ended September 30, 2019 was $1.1 million compared to $1.0 million in the prior year period, representing an improvement of $0.1 million.
• Corporate overhead expense, excluding non-recurring expenses and non-cash stock compensation expense, declined to $9.1 million in the third quarter compared to $9.6 million in the prior year period as a result of corporate cost reduction initiatives.
• Significant progress made on divestiture process with targeted closings beginning in the first quarter of 2020.
• As of September 30, 2019, the Partnership had $64.1 million of cash, including $20.6 million of restricted cash, and $362.7 million of total debt.
• Third quarter net loss was $42.7 million compared to $17.2 million in the prior year period. The reported net loss for the third quarter included a non-cash charge of $24.9 million for impairment of goodwill.

Joe Redling, StoneMor’s President and Chief Executive Officer said, “While our year-over-year revenue was flat in the third quarter, our results demonstrate progress on our turnaround efforts as we continue to focus on increasing profitability through both revenue enhancements and cost reduction initiatives. We experienced stabilization in our pre-need sales efforts as sales production for Q3 was flat to prior year. Throughout the quarter, we saw improvements with September sales production finishing up 8% year-over-year. Additionally, we continue to benefit from executed cost reduction initiatives as our recurring fixed expenses declined compared to the prior year period.”

“We are now executing Phase II of our cost reduction efforts. We have identified additional opportunities to further reduce costs and improve operating efficiency in the areas of procurement, field operations and corporate overhead. We expect that the execution of these initiatives over the coming months will drive improved cash flow and exceed our target of $30 million of annualized cost reductions across corporate, G&A, sales and field operations.”

For earnings history and earnings-related data on Stonemor Partners (STON) click here.

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