StoneMor 8-K StoneMor Partners L.P. Announces Fourth Quarter and 2012 Year End Results

Exhibit 99.1

StoneMor Partners L.P. Announces Fourth Quarter and 2012 Year End Results

Levittown, PA, March 15, 2013 – StoneMor Partners L.P. (NYSE: STON) announced its results of operations for the three months and year ended December 31, 2012. Investors are encouraged to read the Company’s annual report on Form 10-K to be filed with the SEC which contains additional details as well as financial tables and can be found atwww.stonemor.com.

Yearly Financial Highlights

• Revenues (GAAP) improved from $228.4 million in 2011 to $242.6 million in 2012, a 6% increase.

• Production based revenue (non-GAAP) increased from $280.6 million in 2011 to $296.3 million in 2012, a 6% increase.

• Operating profits (GAAP) increased 41% to $13.8 million in 2012 as compared to $9.8 million in the 2011 year.

• Adjusted operating profits (non-GAAP) increased 11% to $53.8 million in 2012 from $48.6 million in 2011.

• Operating cash flows (GAAP) provided in the 12 months ended December 31, 2012 increased to $31.9 million from $5.5 million provided by operations in 2011, a 480% increase.

• Distributable free cash flow (non-GAAP) for 2012 was $53.3 million compared to $49.3 million for the same period last year, an 8% increase.

• Distributable cash available during the period (non-GAAP) exceeded distributions by $17.9 million for the year ended December 31, 2012, versus $12.2 million in 2011, a 47% increase.

• Net loss (GAAP) narrowed 69% to $3.0 million from a net loss of $9.7 million in the prior year period.

The Company reports its financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures used in managing the business may provide investors with additional information regarding underlying trends and ongoing results on a comparable basis. Specifically, management believes that production based revenues and adjusted operating profit allow the investor to gain insight into the current operating performance of the Company. Please see the section of this press release “Non-GAAP Financial Measures” to view the reconciliation tables previously presented in the body of the press release. Non-GAAP financial measures used by the Company should not be considered as alternatives to GAAP financial measures, and you should not consider such non-GAAP financial measures in isolation or as a substitute for an analysis of the Company’s results as reported under U.S. GAAP.

1

“This was another very good year for StoneMor,” said Lawrence Miller, President and Chief Executive Officer. “On a year over year basis, we showed positive returns on virtually every financial metric we use to measure the health and growth of the business.

“When looking at our quarterly comparisons, I’d like to discuss one element that we believe is important to consider. Our merchandise trust and perpetual care investment funds are managed by professional investment advisors. These advisors will realize gains when appropriate in accordance with pre-established portfolio management guidelines. In December 2012, our advisors realized $5 million less in gains than in 2011, and 100% of this $5 million directly impacted both production based revenues and adjusted operating profit. It was not a portfolio performance or an operating issue – it was a timing issue.”

Quarterly Financial Highlights

• Revenues (GAAP) for the three month period ended December 31, 2012 were $59.3 million as compared to $58.7 million for the prior year period, a 1% increase.

• Production based revenue (non-GAAP) for the three month period ended December 31, 2012 declined 3% to $73.4 million from $75.9 million in the prior year period.

• For the three month period ended December 31, 2012, operating profit (GAAP) increased 86% to $1.6 million, versus $0.8 million in the prior year period.

• For the three month period ended December 31, 2012, adjusted operating profits (non-GAAP) declined 16% to $11.9 million as compared to $14.2 million in the prior year period.

• For the three month period ended December 31, 2012, cash flows provided by operations (GAAP) were 1.1 million, versus $5.6 million used in operations in same period last year.

• For the three months ending December 31, 2012 distributable free cash flow (non-GAAP) declined 26% to $10.8 million from $14.6 million in the prior year period.

• For the three months ended December 31, 2012, net loss of $3.9 million increased 26% from the loss of $3.1 million reported in the same three month period of 2011.

“I would like to reiterate that we performed well during yet another year in which the economic background was uncertain. Our quarterly comparisons were impacted mostly by the time period when we recognized investment income. Had we taken the same amount of gains in the fourth quarter of 2012 as we did in 2011, all these quarterly comparisons would have been positive.

“We raised our distribution earlier in the year. We have strengthened our balance sheet while continuing to make high quality acquisitions. Our entry into the strategically important Florida market was one of our great successes this year and we will continue to evaluate opportunities as they present themselves.

2

“We are very excited about our prospects based on our actions to date and the nature of our business. I would like to thank our employees for all their hard work in making this possible, and our unitholders for their support.”

Investor Conference Call and Webcast

StoneMor will conduct a conference call to discuss the 2012 results today, Friday, March 15, 2013 at 11:00 a.m. Eastern Time. The conference call can be accessed by calling (800) 630-4153. An audio replay of the conference call will be available by calling (800) 633-8284 through 1:00 p.m. Eastern Time on March 29, 2013. The reservation number for the audio replay is as follows: 21650516. A live webcast of the conference call will also be available to investors who may access the call through the investor relations section ofwww.stonemor.com. An audio replay of the conference call will also be archived on StoneMor’s website atwww.stonemor.com.

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 276 cemeteries and 92 funeral homes in 28 states and Puerto Rico. StoneMor is the only publicly traded deathcare 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, atwww.stonemor.com. Information on StoneMor’s website is not incorporated by reference into this press release and does not constitute a part of this press release.

Forward-Looking Statements

Certain statements contained in this press release, including, but not limited to, information regarding the status and progress of our operating activities, the plans and objectives of our management, assumptions regarding our future performance and plans, and any financial guidance provided, as well as certain information in our other filings with the SEC 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 actual results to differ materially from those stated or implied, 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 our significant leverage on our operating plans; our ability to service our debt and pay distributions; the decline in the fair value of certain equity and debt securities held in our trusts; our 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; our ability to successfully implement a strategic plan relating to achieving operating improvements,

3

strong cash flows and further deleveraging; our ability to successfully compete in the cemetery and funeral home industry; uncertainties associated with the integration or anticipated benefits of our recent acquisitions or any future acquisitions; our ability to complete and fund additional acquisitions; our ability to maintain effective disclosure controls and procedures and internal control over financial reporting; the effect of cybersecurity attacks due to our significant reliance on information technology; uncertainties relating to the financial condition of third-party insurance companies that fund our pre-need funeral contracts; and various other uncertainties associated with the death care industry and our operations in particular.

When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements set forth in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q filed with the SEC. Except as required by federal and state securities laws, we assume no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by us, whether as a result of new information, future events, or otherwise.

Contact: John McNamara

   (215) 826-2800

4

Non-GAAP Financial Measures

Production Based Revenue

We present production based revenue because management believes it provides for a useful measure of both the value of contracts written and investment and other income generated during a given period and is a critical component of adjusted operating profit.

Production based revenue is a non-GAAP financial measure that may not be consistent with other similar non-GAAP financial measures presented by other publicly traded companies.

Adjusted Operating Profit

We present Adjusted Operating Profit because management believes it provides for a useful measure of economic value added by presenting an effective matching of the value of current and future revenue sources generated within a given period to the cost of producing such revenue and managing our day to day operations within that same period. It is a significant measure that we believe is an indicator of eventual profit generated within a given period of time.

Adjusted Operating Profit is a non-GAAP financial measure that may not be consistent with other similar non-GAAP financial measures presented by other publicly traded companies.

Adjusted Operating Cash Generated

We present adjusted operating cash generated revenue because management believes it provides for a useful measure of the amount of cash generated that is available to make capital expenditures and partner distributions once all cash flow timing issues have been settled.

Adjusted operating cash generated is a non-GAAP financial measure that may not be consistent with other similar non-GAAP financial measures presented by other publicly traded companies.

Distributable Free Cash Flow

We present Distributable Free Cash Flow because management believes this information is a useful adjunct to Net Cash Provided by (Used in) Operating Activities under GAAP. Distributable Free Cash Flow is a significant liquidity metric that we believe is an indicator of our ability to generate cash flow during any period at a level sufficient to pay the quarterly cash distribution to the holders of our common units and for other purposes, such as repaying debt and expanding through strategic investments.

Distributable Free Cash Flow is similar to quantitative standards of free cash flow used throughout the deathcare industry and to quantitative standards of distributable cash flow used throughout the investment community with respect to publicly traded partnerships, but is not intended to be a prediction of the future. However, our calculation of distributable free cash flow may not be consistent with calculations of free cash flow, distributable cash flow or other similarly titled measures of other companies. Distributable Free Cash Flow should not be used as a substitute for the GAAP measure of cash flows from operating, investing, or financing activities.

5

Production Based Partners’ Capital

We present production based partners’ capital as a means to provide better insight into the value that our activities contribute to the enterprise. Because a portion of our revenues and direct selling expenses are captured on our balance sheet until we deliver the underlying goods or services, we believe that by including these items in our view of partners’ capital, we gain better insight into the value creation.

6

The following tables reconcile Non-GAAP to GAAP Measures:

Reconciliation of Production Based Revenue and Adjusted Operating Profit (non-GAAP) to Revenue and Operating Profit (GAAP)

	Year ended							Year ended
	December 31, 2012							December 31, 2011
	(In thousands)							(In thousands)
Revenues	Segment Results (non-GAAP)		GAAP Adjustments			GAAP Results		Segment Results (non-GAAP)		GAAP Adjustments			GAAP Results		Change in GAAP results ($)			Change in GAAP results (%)
Pre-need cemetery revenues	$	128,437	$	(31,437	)	$	97,000	$	122,789	$	(31,735	)	$	91,054	$	5,946			6.5	%
At-need cemetery revenues		79,346		(4,552	)		74,794		79,501		(5,141	)		74,360		434			0.6	%
Investment income from trusts		38,571		(14,446	)		24,125		38,943		(15,399	)		23,544		581			2.5	%
Interest income		6,698		—			6,698		5,864		—			5,864		834			14.2	%
Funeral home revenues		37,988		(2,309	)		35,679		31,163		(759	)		30,404		5,275			17.3	%
Other cemetery revenues		5,283		(973	)		4,310		2,380		782			3,162		1,148			36.3	%
Total revenues		296,323		(53,717	)		242,606		280,640		(52,252	)		228,388		14,218			6.2	%
Costs and expenses
Cost of goods sold		33,807		(5,706	)		28,101		31,154		(5,039	)		26,115		1,986			7.6	%
Cemetery expense		55,410		—			55,410		57,145		—			57,145		(1,735	)		-3.0	%
Selling expense		54,641		(7,763	)		46,878		53,784		(8,493	)		45,291		1,587			3.5	%
General and administrative expense		28,928		—			28,928		29,547		(3	)		29,544		(616	)		-2.1	%
Corporate overhead		28,169		—			28,169		23,766		—			23,766		4,403			18.5	%
Depreciation and amortization		9,431		—			9,431		8,534		—			8,534		897			10.5	%
Funeral home expense		28,977		(252	)		28,725		23,554		—			23,554		5,171			22.0	%
Acquisition related costs		3,123		—			3,123		4,604		—			4,604		(1,481	)		-32.2	%
Total costs and expenses		242,486		(13,721	)		228,765		232,088		(13,535	)		218,553		10,212			4.7	%
Operating profit	$	53,837	$	(39,996	)	$	13,841	$	48,552	$	(38,717	)	$	9,835	$	4,006			40.7	%

	Three months ended								Three months ended
	December 31, 2012								December 31, 2011
	(In thousands)								(In thousands)
	Segment								Segment							Change in			Change in
	Results		GAAP			GAAP			Results		GAAP			GAAP		GAAP results			GAAP results
Revenues	(non-GAAP)		Adjustments			Results			(non-GAAP)		Adjustments			Results		($)			(%)
Pre-need cemetery revenues	$	31,842	$	(8,501	)	$	23,341		$	32,336	$	(10,422	)	$	21,914	$	1,427			6.5	%
At-need cemetery revenues		19,233		(1,354	)		17,879			19,731		(935	)		18,796		(917	)		-4.9	%
Investment income from trusts		8,357		(1,515	)		6,842			13,361		(5,802	)		7,559		(717	)		-9.5	%
Interest income		1,726		—			1,726			1,284		—			1,284		442			34.4	%
Funeral home revenues		10,923		(862	)		10,061			8,406		(196	)		8,210		1,851			22.5	%
Other cemetery revenues		1,302		(1,837	)		(535	)		750		212			962		(1,497	)		-155.6	%
Total revenues		73,383		(14,069	)		59,314			75,868		(17,143	)		58,725		589			1.0	%
Costs and expenses
Cost of goods sold		8,344		(1,545	)		6,799			8,003		(1,256	)		6,747		52			0.8	%
Cemetery expense		13,591		—			13,591			14,285		—			14,285		(694	)		-4.9	%
Selling expense		12,872		(2,194	)		10,678			13,885		(2,518	)		11,367		(689	)		-6.1	%
General and administrative expense		7,525		—			7,525			8,975		—			8,975		(1,450	)		-16.2	%
Corporate overhead		7,264		—			7,264			6,194		—			6,194		1,070			17.3	%
Depreciation and amortization		2,672		—			2,672			2,160		—			2,160		512			23.7	%
Funeral home expense		8,329		(71	)		8,258			6,679		—			6,679		1,579			23.6	%
Acquisition related costs		925		—			925			1,457		—			1,457		(532	)		-36.5	%
Total costs and expenses		61,522		(3,810	)		57,712			61,638		(3,774	)		57,864		(152	)		-0.3	%
Operating profit	$	11,861	$	(10,259	)	$	1,602		$	14,230	$	(13,369	)	$	861	$	741			86.1	%

The tables above analyze our results of operation and the changes therein for the three and twelve months ended December 31, 2012, as compared to the same periods last year. The tables are structured so that our readers can determine whether changes were based upon changes in the level of merchandise and services and other revenues generated during each period and/ or changes in the timing when merchandise and services were delivered.

7

Critical Financial Measures

	Year ended						Three months ended
	December 31,						December 31,
	2012			2011			2012			2011
	(In thousands)						(In thousands)
Total revenues (a)	$	242,606		$	228,388		$	59,314		$	58,725
Production based revenue consisting of the total value of cemetery contracts written, funeral home revenues and investment and other income (b)		296,323			280,640			73,383			75,868
Operating profit (a)		13,841			9,835			1,602			861
Adjusted operating profit (b)		53,837			48,552			11,861			14,230
Net income (loss) (a)		(3,013	)		(9,715	)		(3,935	)		(3,093	)
Operating cash flows (a)		31,896			5,466			1,099			(5,603	)
Adjusted operating cash generated (b)		55,028			50,698			11,434			14,605
Distributable free cash flow generated (b)	$	53,277		$	49,262		$	10,806		$	14,623

	As of		As of
	December 31, 2012		December 31, 2011
Distribution coverage quarters (b)		6.57		8.63

(a) This is a GAAP financial measure.

(b) This is a non-GAAP financial measure as defined by the Securities and Exchange Commission. Please see the reconciliation to GAAP measures or support calculation within this press release.

Reconciliation of Adjusted Operating Profit (non-GAAP) to Operating Profit (GAAP)

	Year ended December 31,						Three months ended December 31,
	2012			2011			2012			2011
	(In thousands)						(In thousands)
GAAP operating profit	$	13,841		$	9,835		$	1,602		$	861
Increase in applicable deferred revenues		53,717			52,252			14,069			17,143
Increase in deferred cost of goods sold and selling and obtaining costs		(13,721	)		(13,535	)		(3,810	)		(3,774	)
Adjusted operating profit	$	53,837		$	48,552		$	11,861		$	14,230

8

Reconciliation of Production Based Revenue (non-GAAP) to Revenues (GAAP)

	Year ended December 31,						Increase (Decrease)  ($)			Increase (Decrease)  (%)
	2012			2011
	(In thousands)
Value of pre-need cemetery contracts written	$	128,437		$	122,789		$	5,648			4.6	%
Value of at-need cemetery contracts written		79,346			79,501			(155	)		-0.2	%
Investment income from trusts		38,571			38,943			(372	)		-1.0	%
Interest income		6,698			5,864			834			14.2	%
Funeral home revenues		37,988			31,163			6,825			21.9	%
Other cemetery revenues		5,283			2,380			2,903			122.0	%
Total production based revenues	$	296,323		$	280,640		$	15,683			5.6	%
Less:
Increase in deferred sales revenue and investment income		(53,717	)		(52,252	)		(1,465	)		2.8	%
Total GAAP revenues	$	242,606		$	228,388		$	14,218			6.2	%
	Three months  ended December 31,						Increase (Decrease)  ($)			Increase (Decrease)  (%)
	2012			2011
	(In thousands)
Value of pre-need cemetery contracts written	$	31,842		$	32,336		$	(494	)		-1.5	%
Value of at-need cemetery contracts written		19,233			19,731			(498	)		-2.5	%
Investment income from trusts		8,357			13,361			(5,004	)		-37.5	%
Interest income		1,726			1,284			442			34.4	%
Funeral home revenues		10,923			8,406			2,517			29.9	%
Other cemetery revenues		1,302			750			552			73.6	%
Total production based revenues	$	73,383		$	75,868		$	(2,485	)		-3.3	%
Less:
Increase in deferred sales revenue and investment income		(14,069	)		(17,143	)		3,074			-17.9	%
Total GAAP revenues	$	59,314		$	58,725		$	589			1.0	%

9

Reconciliation of Adjusted Operating Cash Flows (non-GAAP) and Distributable Free Cash Flow (Non-GAAP) to Operating Cash Flows (GAAP)

	Year ended December 31,
	2012			2011
	(In thousands)
GAAP operating cash flows	$	31,896		$	5,466
Add: net cash inflows into the merchandise trust		11,806			23,889
Add: net increase in accounts receivable		5,475			9,241
Add: net decrease in merchandise liabilities		7,260			5,669
Deduct: net (increase) decrease in accounts payable and accrued expenses		(4,330	)		(868	)
Other float related changes		2,921			7,301
Adjusted operating cash flow generated		55,028			50,698
Less: maintenance capital expenditures		(4,874	)		(6,040	)
Plus: growth capital expenditures reclassified as operating expenses and deducted from adjusted operating cash generated (a)		3,123			4,604
Distributable free cash flow generated		53,277			49,262
Cash on hand - beginning of the period		12,058			7,535
Distributable cash available for the period		65,335			56,797
Partner distributions made	$	47,454		$	44,605

(a) We maintain a line of credit from which to make acquisitions and pay acquisition related costs. We utilize this line for these costs. Accordingly, distributable free cash flow is not negatively impacted by amounts spent on acquisitions that are recorded as expenses.

	Three months ended December 31,
	2012			2011
	(In thousands)
GAAP operating cash flows	$	1,099		$	(5,603	)
Add: net cash inflows into the merchandise trust		3,629			12,208
Deduct: net decrease in accounts receivable		3,142			3,732
Add: net decrease in merchandise liabilities		1,611			3,384
Deduct: net (increase) decrease in accounts payable and accrued expenses		(2,123	)		(2,158	)
Other float related changes		4,076			3,042
Adjusted operating cash flow generated		11,434			14,605
Less: maintenance capital expenditures		(1,553	)		(1,439	)
Plus: growth capital expenditures reclassified as operating expenses and deducted from adjusted operating cash generated (a)		925			1,457
Distributable free cash flow generated		10,806			14,623
Cash on hand - beginning of the period		8,128			20,135
Distributable cash available for the period		18,934			34,758
Partner distributions made	$	12,007		$	11,778

(a) We maintain a line of credit from which to make acquisitions and pay acquisition related costs. We utilize this line for these costs. Accordingly, distributable free cash flow is not negatively impacted by amounts spent on acquisitions that are recorded as expenses.

10

Production Based Partners’ Capital

	As of December 31,
	2012			2011
Partners’ Capital	$	135,182		$	180,279
Deferred selling and obtaining costs		(76,317	)		(68,542	)
Deferred cemetery revenues, net		497,861			441,678
Production based partners’ capital	$	556,726		$	553,415

Selected Net Assets

	As of		As of
	December 31, 2012		December 31, 2011
	(In thousands)
Selected assets:
Cash and cash equivalents	$	7,946	$	12,058
Accounts receivable, net of allowance		51,895		48,837
Long-term accounts receivable, net of allowance		71,521		68,419
Merchandise trusts, restricted, at fair value		375,973		344,515
Total selected assets		507,335		473,829
Selected liabilities:
Accounts payable and accrued liabilities		28,973		26,428
Accrued interest		1,833		1,632
Current portion, long-term debt		2,175		1,487
Other long-term liabilities		1,835		2,830
Long-term debt		252,774		193,835
Deferred tax liabilities		14,910		16,968
Merchandise liability		125,869		128,942
Total selected liabilities		428,369		372,122
Total selected net assets	$	78,966	$	101,707
Distribution coverage quarters (a)		6.57		8.63

(a) This is a measure of the ratio of selected net assets to a quarterly distribution amount. The quarterly distribution amount is calculated by taking the end of the period outstanding common units (19,568,448 at December 31, 2012 and 19,368,261 at December 31, 2011, respectively) and multiplying these units by the declared distribution. This total is then added to the distribution due to the General Partner based upon the same variables.

11

StoneMor Partners L.P.

Consolidated Balance Sheet

(In thousands)

	December 31, 2012		December 31, 2011
Assets
Current assets:
Cash and cash equivalents	$	7,946	$	12,058
Accounts receivable, net of allowance		51,895		48,837
Prepaid expenses		3,832		4,266
Other current assets		17,418		16,670
Total current assets		81,091		81,831
Long-term accounts receivable, net of allowance		71,521		68,419
Cemetery property		309,980		298,938
Property and equipment, net of accumulated depreciation		79,740		73,777
Merchandise trusts, restricted, at fair value		375,973		344,515
Perpetual care trusts, restricted, at fair value		282,313		254,679
Deferred financing costs, net of accumulated amortization		9,238		8,817
Deferred selling and obtaining costs		76,317		68,542
Deferred tax assets		381		415
Goodwill		42,392		32,145
Other assets		14,779		16,680
Total assets	$	1,343,725	$	1,248,758
Liabilities and partners’ capital
Current liabilities:
Accounts payable and accrued liabilities	$	28,973	$	26,428
Accrued interest		1,833		1,632
Current portion, long-term debt		2,175		1,487
Total current liabilities		32,981		29,547
Other long-term liabilities		1,835		2,830
Long-term debt		252,774		193,835
Deferred cemetery revenues, net		497,861		441,678
Deferred tax liabilities		14,910		16,968
Merchandise liability		125,869		128,942
Perpetual care trust corpus		282,313		254,679
Total liabilities		1,208,543		1,068,479
Commitments and contingencies
Partners’ capital
General partner		386		2,192
Common partners		134,796		178,087
Total partners’ capital		135,182		180,279
Total liabilities and partners’ capital	$	1,343,725	$	1,248,758

See accompanying notes to the Consolidated Financial Statements on the Annual Report to be filed on Form 10-K for the year ended December 31, 2012.

12

StoneMor Partners L.P.

Consolidated Statement of Operations

(In thousands, except unit data)

	Three months ended December 31,						Year ended December 31,
	2012			2011			2012			2011
	(Unaudited)
Revenues:
Cemetery
Merchandise	$	26,601		$	26,811		$	114,025		$	108,088
Services		11,613			11,298			46,094			46,995
Investment and other		11,039			12,406			46,808			42,901
Funeral home
Merchandise		4,416			3,673			15,551			12,810
Services		5,645			4,537			20,128			17,594
Total revenues		59,314			58,725			242,606			228,388
Costs and Expenses:
Cost of goods sold (exclusive of depreciation shown separately below):
Perpetual care		1,317			1,630			5,715			5,727
Merchandise		5,482			5,116			22,386			20,388
Cemetery expense		13,591			14,285			55,410			57,145
Selling expense		10,678			11,368			46,878			45,291
General and administrative expense		7,525			8,975			28,928			29,544
Corporate overhead (including $291 and $197 in unit-based compensation for the three months ended December 31, 2012 and 2011, and $916 and $773 for the year ended December 31, 2012 and 2011, respectively)		7,264			6,194			28,169			23,766
Depreciation and amortization		2,672			2,160			9,431			8,534
Funeral home expense
Merchandise		1,474			1,276			5,200			4,473
Services		4,128			3,261			14,574			11,717
Other		2,656			2,142			8,951			7,364
Acquisition related costs		925			1,457			3,123			4,604
Total cost and expenses		57,712			57,864			228,765			218,553
Operating profit		1,602			861			13,841			9,835
Expenses related to refinancing		—			—			—			453
Gain on termination of operating agreement		—			—			1,737			—
Gain on acquisition		—			—			122			—
Early extinguishment of debt		—			—			—			4,010
Gain on sale of funeral home		—			92			—			92
Interest expense		5,394			4,932			20,503			19,198
Loss before income taxes		(3,792	)		(3,979	)		(4,803	)		(13,734	)
Income tax expense (benefit)
State		196			128			420			(701	)
Federal		(53	)		(1,014	)		(2,210	)		(3,318	)
Total income tax expense (benefit)		143			(886	)		(1,790	)		(4,019	)
Net loss	$	(3,935	)	$	(3,093	)	$	(3,013	)	$	(9,715	)
General partner’s interest in net loss for the period	$	(79	)	$	(62	)	$	(60	)	$	(194	)
Limited partners’ interest in net loss for the period	$	(3,856	)	$	(3,031	)	$	(2,953	)	$	(9,521	)
Net loss per limited partner unit (basic and diluted)	$	(.20	)	$	(.16	)	$	(.15	)	$	(.50	)
Weighted average number of limited partners’ units outstanding (basic and diluted)		19,544			19,364			19,445			18,947
Distributions declared per unit	$	.590		$	.585		$	2.35		$	2.34

See accompanying notes to the Consolidated Financial Statements on the Annual Report to be filed on Form 10-K for the year ended December 31, 2012.

13

StoneMor Partners L.P.

Consolidated Statement of Cash Flows

(In thousands)

	Three months ended December 31,						Year ended December 31,
	2012			2011			2012			2011
	(Unaudited)
Operating activities:
Net loss	$	(3,935	)	$	(3,093	)	$	(3,013	)	$	(9,715	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Cost of lots sold		1,638			1,660			7,818			6,664
Depreciation and amortization		2,672			2,160			9,431			8,534
Unit-based compensation		291			197			916			773
Accretion of debt discount		509			404			1,739			1,354
Write-off of deferred financing fees		—			—			—			453
Gain on sale of funeral home		—			(92	)		—			(92	)
Gain on acquisitions		—			—			(122	)		—
Gain on termination of operating agreement		—			—		��	(1,737	)		—
Fees paid related to early extinguishment of debt		—			—			—			4,010
Changes in assets and liabilities that provided (used) cash:
Accounts receivable		(3,142	)		(3,732	)		(5,475	)		(9,241	)
Allowance for doubtful accounts		(2,533	)		(1,380	)		1,210			2,217
Merchandise trust fund		(3,629	)		(12,208	)		(11,806	)		(23,889	)
Prepaid expenses		895			687			527			1,273
Other current assets		(1,821	)		(1,331	)		(2,165	)		(7,355	)
Other assets		3			47			128			291
Accounts payable and accrued and other liabilities		2,123			2,158			4,330			868
Deferred selling and obtaining costs		(2,412	)		(2,722	)		(7,775	)		(9,120	)
Deferred cemetery revenue		12,108			16,038			47,548			47,598
Deferred taxes (net)		(57	)		(1,012	)		(2,398	)		(3,488	)
Merchandise liability		(1,611	)		(3,384	)		(7,260	)		(5,669	)
Net cash provided by (used in) operating activities		1,099			(5,603	)		31,896			5,466
Investing activities:
Cash paid for cemetery property		(1,681	)		(2,868	)		(7,098	)		(7,126	)
Purchase of subsidiaries		(2,300	)		(5,842	)		(27,976	)		(16,142	)
Proceeds from divestiture of funeral home		—			122			—			122
Cash paid for property and equipment		(1,553	)		(1,439	)		(4,874	)		(6,040	)
Net cash used in investing activities		(5,534	)		(10,027	)		(39,948	)		(29,186	)
Financing activities:
Cash distribution		(12,007	)		(11,778	)		(47,454	)		(44,605	)
Additional borrowings on long-term debt		20,500			20,250			84,000			48,050
Repayments of long-term debt		(4,134	)		(694	)		(30,271	)		(75,184	)
Proceeds from public offering		—			—			—			103,207
Proceeds from general partner contribution		—			16			89			2,262
Fees paid related to early extinguishment of debt		—			—			—			(4,010	)
Cost of financing activities		(106	)		(241	)		(2,424	)		(1,477	)
Net cash provided by financing activities		4,253			7,553			3,940			28,243
Net increase (decrease) in cash and cash equivalents		(182	)		(8,077	)		(4,112	)		4,523
Cash and cash equivalents - Beginning of period		8,128			20,135			12,058			7,535
Cash and cash equivalents - End of period	$	7,946		$	12,058		$	7,946		$	12,058
Supplemental disclosure of cash flow information
Cash paid during the period for interest	$	8,750		$	8,233		$	18,481		$	18,130
Cash paid during the period for income taxes	$	123		$	210		$	4,101		$	2,452
Non-cash investing and financing activities
Acquisition of assets by financing	$	88		$	57		$	287		$	294
Issuance of limited partner units for cemetery acquisition	$	650		$	—		$	4,753		$	264
Acquisition of assets by assumption of directly related liability	$	421		$	—		$	2,469		$	—

See accompanying notes to the Consolidated Financial Statements on the Annual Report to be filed on Form 10-K for the year ended December 31, 2012.

14