STON - Earnings call transcript Q2 2019

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Operator

Greeting and welcome to the StoneMor Partners, 2019 Second Quarter Financial Results Conference Call.

During the presentation, all participants will be in a listen-only mode, afterwards we will conduct a question-and-answer session. [Operator Instructions]

I would now like to turn the conference over to John McNamara, Director of Investor Relations. Please go ahead.

John McNamara

you. Thank and conference for XXXX call financial everyone the us second you results. Partners StoneMor to thank afternoon joining again on quarter Good discuss our

Herdler, issued of all this a have afternoon Vice the Chief President at can Senior release Redling, press a www.stonemor.com. should full you If and copy are Financial the Officer our You release does Joe have copy, and we and Chief call on earlier find not With today. anyone on Garry the President Executive Officer. website us

performance usual, forward-looking Before we forward-looking expect we would begin, statements. of Reform that are everyone remind to events that anticipate the or operating XXXX. within conference as the in certain or I contains developments of the like Securities future Litigation statements Act to that call Private occur meaning this All statements address

statements These available on and currently and beliefs information forward-looking on management. are not based our assumptions to management's

Our reasonable. management believes that are these forward-looking statements

place otherwise any any obligation However, as revise We by future result undertake not should of statements as such do whether of publicly required or today's new reliance update only statements such because not events, any to or speak you except a statements as date. forward-looking undue forward-looking law. information, on

our statements experience addition, In from developments expectations forward-looking and that actual and differ our uncertainties to could projections. historical certain cause or materially risks are subject to and results, present events

take I'll to turn it are who'll ahead, but the limited include those in to that, uncertainties not file and Go over here. Joe the which now risks with Joe. the described These SEC. from With call Redling reports we

Joe Redling

joining everyone. discuss Thank you quarter XXXX to Thank us results. our Good you again second afternoon for John.

that sheet June first in has connection announcement the While investor management on first balance the with recapitalization. the is team this of XX one took place the new not but our conducted, call

once some pleased and It quarterly has we conducted is quite StoneMor to results progress. again regular on quarterly first call updates be in time our however, the providing are investor

the filing know, and As you continues we financials quarter first going tomorrow's became back timely our May our expectations a our results of of forward. XX-Q filing filer with timely to be filer a in

spoke recapitalization announced and our performance end June, balance liquidity, we When cash sheet. of and profitability revenue of we key through goal a balance sustained review million areas, in significant enhancements. and flow our $XXX This a the sheet portfolio at cost was through last to deliver reductions capital structure, four strategic improvement step

sufficient to ongoing With the first delivering recapitalization have liquidity liquidity. improving important now our turnaround further plan strategic implement step complete, in of an we we believe the our goals, on

and units. the by conversion goal a million process five-year our maturity preferred In our $XX.X are address the capital the C-Corp cash The structure of raised planned debt offering issuance an structure the on providing addition, launch and in the continuing from we with a new of both timetables convertible and recapitalization additional previously announced. liquidity capital rights improved with

implemented portfolio improved a to In performance of initiatives, reductions enhancements, expect have number review time. revenue cost of through over the deliver and and areas strategic we sheet we which improvement balance profitability

assets the Specific shortest have greatest we to operational prioritized but our the we asset our the as into changes impact in a base review, financial portfolio substantial view the initial could strength, time. that have

the highest concluded rationalize our costs. focus we QX in team has on producing last resources of tiering The our enabled locations, and refocus our to of year properties that

as to base We regarding strategies our actively relates divestitures. are it potential various also asset analyzing

for realizing divestitures. value our assets We to the continue to core examine select determine our and evaluate strategy non-core portfolio for and through potential

an that time, this entire involve be state. transactions all reviewing small or individual options whether it tiers, nothing We we transactions property even all report are at to or have but specific across clusters

Performance we all see We are additional which later we are these see cost updates a multifaceted benefits beginning diversification the to determine options our enhancement the XXXX. efforts expect on of to approach, early And in year. involves in plan forward. in through progress most full QX. in provide the to going weighing improvements strategy We benefits reductions appropriate revenue to

in disclosed, where As reductions headquarters positions. we G&A, eliminated have in operations. million one more we at a this more than of $XX and previously undergone across in we and minimum targeted one reductions workforce two field sales year, corporate field of recently operations XXX cost February, We've

by were reductions property field of review basis. result the comprehensive property a on a The labor rationalization

our in corporate in professional driven are where and and a in of excluding non-recurring one-time numbers we overhead reflected reductions by show fees. Some digit approximately savings expenses double overhead, second quarter corporate corporate reduction these payroll XX% expenses,

Garry a a cost will further reductions provide and plans forward minute. going breakdown on in

noted, we've significant production that properties. sales and revenues our analysis come tiered As of our our has revealed tier a percentage top from

we XX% quarter, encouraged our of X our improvement In the and those results. of production. fact, property are the have and signs for and Tier second level account properties Throughout sales X Tier seen prioritized at we by Tier X properties

both We X Tier focusing properties. X efforts are our now and Tier resources across and

included sales review of of with a size staffing efforts the potential market. and staffing addressable These sales aligning the

filled Tier and X positions locations placed at end and We properties. sales the the X hiring since of being XXX with have have over prioritized at majority Tier our these March

the with conjunction a hiring process. quarter ensure targeted effective more to this we new year, launched hiring in this training sales onboarding first In modules of and also

new by still encouraged these field's trends. programs seeing it's process, to are in and We early while the response are retention we the positive

speed believe to have place and process get the better in for time the a we we in productive, and heading right direction. are become Now I but it salespeople to up takes new

financial Now let's results. at look the a take

in quarter, For income. by from down mostly the driven year-over-year revenues about were and investment other X% a revenue decline

Excluding revenues X% after QX. and now other only down very investment difficult have income a stabilized and we're

Again, investment that we basis in Cemetery other a $X efficiency sales revenue a year-over-year as excluding Cemetery percentage sequentially million. In of operating income increased our revenues QX fact, year prior as revenues sign stabilizing million to XX% to revenue of was base. points. positive XXX selling QX flat improved are improved expense or at $XX core also from XXXX.

Operating expense period, reductions and selling expenses the down X% corporate overhead. driven by were in in COGS

loss items costs increased was Our in one-time debt related the the to operating including asset extinguishment and non-recurring to overhead. of early several impairment time by quarter impacted related one losses corporate

While month and items, materially. the if for have one-time quarter narrowed periods in these operating second not our six loss would

Moving to sales.

sales hiring. to in QX But down revenues. to improvement process with corporate interment encouraged overall year-over-year cemetery bit on we're impact of the QX sequential from combined a expected ramp-up We being XX% by in restructuring the the be still the

may of in In somewhat the more number QX contracts increased over QX. the from but pre-need XX,XXX XX% addition, written quarter, first than these second than factors. the go quarter approximately Seasonally, to gains beyond seasonality stronger be X,XXX any in

the to the detail Let over results. on financial to Garry call provide more turn me now

Garry Herdler

Thanks as and Joe. joined to senior I execute Good his XX, operational afternoon team Senior everyone. to strategy. and assist turnaround President Vice Joe StoneMor April CFO his XXXX on

of timely on work want the a effort efforts my our strong on I their months quarter supportive and filer. second also to on and thank operations files few SEC recapitalization, team for completing here with being team’s accounting the consecutive associated related first in diligence their their my

will We improve cadence to to and strive continue controls.

four structure, and in enhancement. strategy cost focused sheet XXXX As we outlined performance revenue and goals, mid-April, improvement our and through portfolio capital in liquidity, key turnaround comments reductions Joe on cash mentioned early improving flow review balance his

to results, some We We our forward. hold. take will show fiscal measure second improvement XXXX on starting believe ourselves evidence those each quarter earlier and X StoneMor’s of externally internally Phase goals are going efforts that

Notably, growth QX we expense reductions continued XXXX in in shoots QX versus with implemented green in revenue and not in some evidence withstanding revenue both the corporate have field of production year-over-year declines. sequential we sales in certain and

to we've addressing performance part As of deliver strategy our a is key discussed, ultimately improvements. expenses

review a to financial of move me let results. Now

million for Consolidated compared GAAP $XX.X XXXX or million XQ million was $X.X for XXXX year-over-year. decline to representing revenue a X.X% of XQ $XX.X

XXXX year-over-year in year-to-date year For million million the $XXX.X down $X.X X%. $XXX revenue versus half of year-to-date, or million prior was period down first

and revenue GAAP and to or $X respectively. X.X% of other and XXXX of when gains revenue. versus comparing improvement XXXX less and cemetery million XXXX XQ in home income, XQ a was combined X.X% X.X% funeral losses There XXXX StoneMor XQ delivered sequential XQ segment

pleased wall in are four improvement segment. second cemetery to the in see margin some modest particularly quarter We of XXXX,

turnaround and profit improving level plan economics. X performance measure margins Phase location have developed. basis we by major four-wall operational will prioritize the location by now improvement retail traditional a a focus for on We This store applying is

will We peers. and our versus internally also benchmark

in discuss call. will today's new these initiatives We further

$XX.X was X% XXXX more Total to down for of a year-over-year. decline the first cemetery revenues quarter $XX.X for for cemetery In with performing the cemeteries. a $X.X XX% for segment second at XQ StoneMor's of revenue. XXXX, total XQ or XXXX, million GAAP million of half segment starting revenue represented look Now compared detailed million

In of when XXXX down $XXX.X the improvement to revenue of million first $X.X cemetery half $X.X in down XXXX, was the half first sequential compared X.X%. of GAAP versus or or million was $XXX.X versus year-over-year XXXX. of revenue XXXX, quarter a There million XX.X% million the XQ first

products. from as the by stable as sales from to backlog to period mausoleum production new continues prior and increased its in and despite remained benefit the benefit year a year-over-year. contraction revenue X.X% merchandise services servicing niche company Interment the new of compared revenue Cemetery the relatively interment as company pre-need

adjacent other and as recognized period, and of in investment sales that decline income in to balance accelerated year and trusts, the XXXX in year of experienced And of early XXXX. in as from interest investment period the lower last decline certain occurred revenue primarily a merchandise revenue prior sales. perpetual accounts result from care receivable Segmented result the year to due decline our a compared receivable result a as prior collections a a lower land in a trusts

year-over-year goods cost expense. $XX.X compared million operating by and goods XXXX XXXX was XQ or X.X% for $XX.X improvements of sold million selling of lots. were decline $X.X segment caskets, and XQ representing to in decrease The The Cemetery driven primarily expenses markers related for a year-over-year. a of in sold million decrease were to cost

this XXXX of in quarter points in of second year force in by rate XXXX year-over-year, lower or from basis of XXXX. cemetery enhanced expense than XXX XX.X% revenue, quarter $XX.X the as in improvement prior million second was driven over was sales improved productivity. primarily quarter million $X.X And XX.X% to This percentage second a of Selling period.

increased to period. overhead organizational the the structure primarily to driven increase million. rollout G&A which increased This by driven expense in from million period. three-month million $XX.X the increased cemetery from $XX.X was is to occurred Cemetery comparable GM million XXXX. related in This the Regional by compared year landscaping expense $XX.X of to $XX prior late

XXXX of the quarter XXXX three Cemetery segment the XXXX in X.X% to XXXX. cemetery of profit delivered and $X.X month first quarter million second $X.X We X.X% for quarter million operating respectively. of improved from in income and of quarter period in margins of second second

funeral home XXXX of Now home representing compared XXXX, we'll the million results. or Funeral second call a second transition XXXX stable remains million quarter Funeral to of million revenue home quarter of to for $XX.X compared X.X% to decline of volume second $X the year-over-year. second was GAAP of quarter for XXXX. for the unit $XX.X quarter

average funeral revenue driven by in were homes revenue Total primarily per segment call. declines decrease

insurance in experienced commissions. company the Additionally, a from revenue decrease

nature to the Funeral home to $X.X profit change of million delivered in margins base expense XX.X% in year Funeral largely prior in the XXXX million and million year the fixed the $XX.X million in declined XX.X% business. profits prior funeral a minimal in period. compared comparable homes XQ respectively. is of The expense XQ funeral – $X.X $X.X result home operating segment and were of the We home expenses million from period. operating XXXX operating XQ from $XX.X

business XXXX, in of pricing spending the reduction $XX.X overhead coming for a and Corporate million improvements. in the period, quarter second the other of prior home million We will evaluating performance year compared be the to months for more expense portfolio was XX.X%. funeral time and $XX.X

compensation expenses and non-cash non-recurring stock Excluding expense.

talk expense to compared initiatives. reduction $X.X initiatives efforts prior Corporate in about as momentarily. of remained in quarter runoff reduction on non-recurring cost XQ will declined implemented down through our year to expense the overhead a driving specific focused I of result reduction cost StoneMor’s the cost the million expenses in primarily overhead XXXX. $XX.X We and more corporate million second period,

the $X.X credit period GAAP our million fees. for the and former rate June XXXX deferred XX, in from borrowed interest $X.X three months due months amortization change of an increased ended three of million XXXX. ended of facility, amounts expense XX% $X.X June The in on the to increase was the finance XX, an and was interest million acceleration

early a $X.X the by to accelerate option the extinguishment $X.X quarters. to as further in profile, loss of our Net toggle intent the in and manage and is the several of loss our reduction we million it X PIK million assets. order at impairment debt next impacted liquidity cost In elect loss plans, was execute for Phase the least an

result a roughly near-term from election, interest same this debt liquidity the former be flow cash as As of perspective, will cash payments our a under and expense structure. the

period certain Cash to used provided working capital non-recurring primarily period in in months and decline activities The cash six in compared reduction million items. initiatives sales to due was for first of activities million. was XXXX operating the $XX.X year from of cash other production, year in the in operating the prior a prior $XX.X

change $XX.X a a the accounts completion the the company the fiscal to down the end start pay of year, significant quarter in from Upon fiscal the of of to driven its certain payables by third accrued change The quarter. the and the million. and cash of catch up before made of prior payable refinancing, was second

XXXX. in balance in payments period, $X.X million. non-recurring quarter, of to normalize million trust of of DPOs fiscal its and $X.X intends fiscal the in cash attempt XXXX in interest payoffs There company In the balance starting outstanding slightly $X the increase impact a receivable to XH increases the in better were million early distributions accounts certain merchandise an third of

the production, and from Progress non-recurring flow as flow decline Last very cash by was further time. sales levels. and on other in XXXX was to on sales production pressure sales profile sales the in to company's continued impact year dampen million production increasing XXXX there to is to relative pre-need A over $XX important this items. expenses contraction contributor significant prior cash the year, was

XX, of restricted former also has credit related the lender. $XX.X of a company to has included June credit and XXXX, unrestricted card of related cash and under $XX.X facility the of the As by of million the collateralization former funding cash million company not as cash liquidity The company equivalents. cash letters former with cash, credit

of are stewards of these demonstrate X wherever plan by We that and good intend to cost we capital identified accelerating executing turnaround reductions our well possible. Phase

has of which nearly corporate million $XX the consist on RIFs XX% identified so reductions associated and field, in Joe’s reductions. of basis been cost $XX fees expense with an attributable executed million other and evenly between expenses which and far XX% in annualized annualized non-recurring including of over fees XXXX, the to split of professional and roll-off this is headcount reductions and

another million initiatives coming million target. to There the complete in identified reduction been $XX other quarters has in three to hit this $X.X

services have a performance labor procurement, We of the efficiencies, cost detailed operational sourcing, hierarchy, identified reduction with field other shared Phase regional in product initiatives focus improvement and X on outsourcing. and

possible. solid debt progress as structure In the the within quickly capital as implementation areas We're identification X of of execution improvements. Phase priority these the of we've performance X summary, in accelerating cost the opportunities extension reduction liquidity, of and higher and Phase made

store coming sales to on intend public as detail We achieve one-time information savings. on non-recurring information StoneMor’s more to SG&A same production metrics. items results And with financial cost disclosures for cost the results, and and unit descriptions such anticipated additional on savings enhance these quarters and of in additional things costs,

Joe for concluding With some that, turn it I'll back to remarks.

Joe Redling

a operating the our review I Thank base you, asset we XX structure. of Garry. have resulting tiered since in In a arrived, months undertaken comprehensive

operations with level decentralized accountability. focus on asset We a have

just as mentioned. will implemented do have We reductions and substantial to Garry continue so cost

recapitalization a of sheet. have We completed our balance major

and sales see to to signs productivity encouraging force continuing beginning we're a are improved are improving the sustained we and some company to deliver focus for the strategy position developing divestiture liquidity better We profitability. on and

very do to a take leadership dedication a and team StoneMor team though work, to and their in are appreciate significant I the our some continued challenges. and have thank families stage still in progress and like lot I'd and the for hard navigating associates have remain dedication early to the confident we we serve. made to recognize difficult communities even moment forward, through our we field while going all their and

now will questions. we open line that, With the for

Operator

Thank with Richard line from comes you. [Operator of Elkin First Instructions] question Oppenheimer.

is Your line open.

Richard Elkin

sales things. to specifically of the the again in Couple of you. Thank What get isn't growing needed yet the is parts doing where it that? business

Joe Redling

Richard. This Yes, is Joe.

So was the step first right-size. staffing getting

Tier new sales Tier a time both to X and and The up So new of I bit we've folks, takes XX mentioned, XX sales we We quite properties. that in data about see X some months. ramp clearly counsel, be shows in added productive. have as very it or historically typically that salespeople

So process to the be which company is the about ready a new the driving really reason leads put family to sales we get to place. XXXX. I onboarding get my process we're for prospecting ramping remarks mentioned program up for been better in and quicker now is in successful want that them and and kind has of training. We're local really back trying to prepared service,

it's get we're XX blocking think cohort and the right tenure Making sure a sales new are matter this more I have days, they the field. the at hiring of through becoming days, productive sure point tackling bands. is leadership moving XXX those really and go. productive as we So people making they because in

going So take to I think force to us the get some productive. time sales it's for just

take improvement. it's some But to I We seeing just time. think are signs some early going of

think and now just the programs it's time think – see to going have the process right and just results. to about I we the it's right I

Richard Elkin

if at quarter, because it me months continue about capacity your left? as what in you cash of to terms cash in Just have only seems same rate four utilize borrowing second you'd the of cash, your the is unused to

Joe Redling

think we us Yes, our goal to obviously than have these longer cost accelerate cuts. think I Obviously, I is for is runway the that.

levers have and continue also we management cash reduction managed and terms cost at within have lot to But Garry and of it's looking that for But critical for payables CapEx can things the kind last We year. about that sales. levels that. like talk to really of pull we've and us improve a little bit in of a other

we that we enough manage have flexibility to So cash feel number.

Richard Elkin

Okay.

Garry Herdler

new had would of that don't them million of $XX.X don't the runway – think any we I I that if four than as think as much I of done proceeds the debt to longer equity. would've of add they come the month just well number only new in a is a that. that runway. one think investors would've was thought there I

Richard Elkin

Okay.

are close other getting look kind Just or research thing, does anytime it one soon? to you'll you of coverage be like any

Joe Redling

Well, we prioritize now recapitalization were and done focused sort we're of – getting the operations turning obviously the on we around.

will think as Garry front. on I fall, reaching I be into So both and the out get we I that think

Richard Elkin

Okay. luck Thanks you very good you're with wish trying much. everything to And I do.

Joe Redling

Thank you, Richard.

Operator

Research. question of comes Our with from the Steve Lark next line Percoco

Your open. line is

Steve Percoco

you. Thank

$XX that I of that have set target cost with XX correct? said achieved you for XX of million although you if you the heard You've for you're looking right, is reduction, to more, go,

Joe Redling

has being in XX executed. been of Steve, Yes, process the

in been of other So process has identified XX executing. the and

number. tacking I line then Phase at you had would at Phase risk so health item single you far, is Phase all across categories, travel, straightforward first the costs what spending look the X, that's which our our So X of we it to every think workforce, if be We've things call – we've whether reductions pretty looked X, Obviously, normal the And quickly. are we've corporate. benefits, about done $XX what cutbacks reductions. and if you the call million

locations more more that, we spend to really in categories there's workflow. get is standalone the all about Garry operating outsourcing, mentioned like get a to of to feel location. need those phase as But when second huge are those still money a little I field. been we things may And process mean, procurement, The the cuts. opportunity integration

we take significantly. we time bit you takes processes That think that's and can but some investment, way the may do. a harder So about Phase That's a pretty little workflow feel more X. to improve little

Steve Percoco

haven't a X? put on number you And Phase

Joe Redling

number We haven't a put publicly it. on

Steve Percoco

you Can Okay. us give idea? an

Joe Redling

we're starting go up think from $XX I Well, and with we'll there. the million

Steve Percoco

Okay.

Joe Redling

process get updates you locked I in we mentioned, give operational are we'll on as sort of as And making. we'll changes these because be more

time. take they So

will these these And as are So critical. transparent. updating we fronts. we these progress will on be cuts definitely on know we be make We calls cost

Steve Percoco

the Okay. XXX some and But this on the expenses structure flip of sales too, you have side regional right. – added management your with hires, the

So got add the targets, savings to costs well. going while as expenses probably some you're you've

about we net the all should how of of So think this?

Joe Redling

way add That the this at guess, in answer was is standpoint, to would get the I the G&A here on in a Yes, property I did local the structure we lacking yes, that of company. GM level. really terms focus profitability

did spend improvement get structure manual out processes there a lot in around more process do lot to of the think So we place. GM that have in we money workflow have field. We a we because

So we is be think that that offset. can something

way we're I that have sales side, think properties feel volumes. I the our high on very sales is staffing in increasing the

the that are variable, relatively They their the individual of really commissions. income So on low. costs fixed make

it's when hiring which at was of we I you're in because joined a So just a not productivity, and of level. getting inefficiencies turnover for – seeing the were and you're stopped while when costs why having that us a money what case literally high the lot turnover of We levels we investment. variable is company more terms

about will think phase, our but good systems Steve, I part, in to be and operating the get sales the needed second So some speed. procedures pretty investments software I that policies up right and feel you're there on some to I think

I you don't that. anything to add to Garry, manual. want I pretty mean, know, is today still everything much if

Garry Herdler

traditional about, to analysis. kind And Steve, where transfer of talked most tiers I'd about with he four-wall location-based more next flow phase. that has would prioritizing starting to think get be he's the and we going the can say if in metrics talked I'd we're of then Yes, a you cash Joe say, how with. start to the And

then things that. sort would then, traditional our you metrics be our against into by things. conversion operating and of would location quartiles traditional amongst own that then then benchmarking types amongst cohorts and get and funnel then the And those And And of costs and groups like peers.

detailed So, associated you've and then what strategic got your a done got these streams a I have four with think then got goals. initiatives plan we've, we've of work And company is we've those. we We've with three number projects. against

pretty others So in think got And And both way can we bring and do to think operating the quick plan. to then think further. would wall I this that four those through we've of a now. margins improve detailed processes we is, low you'd right we the see procurement pretty as up expect we are wins, some

Q -

Okay.

for the be that additions, What the force during is would most what salary going percent fixed? percent second would Can said to of or you make course you could give that sales us Just, be variable? the back any costs the idea, of hope salesperson of What would variable. a be to their year?

Joe Redling

it in interments. greatly. X staffing about we're talk When the mean, look Well, we I'm market, way – way talking we're number is, at about the I Tier properties, staffing addressable I best. the of varies

location, interments of over a the We board, all could could very thousand be and we doing set have XX. assets we're doing So, at a we diverse a be right?

they typically, your which as slight against have commissions. salesperson a when is is There have earn hourly So wage, market. an to draw addressable a a opportunity you large

sales commissions and pre-need adding merchandise. their comes from most income So, from of

large that it's properties were – trying we So locations, many this the those we very, pretty in we had resources. by What analysis on where very to front. in And did focus as it's understaffed volumes. property found big we're variable, we interment property

of just And overstaffed. historical view in the was smaller managed. on properties, other those it a kind how were we were of properties And side

these six been get over as seeing gains. And trying rationalize the so to last, to improvements in seeing we've months right. or some properties, that the bigger that we're we're immediate So

direction. we're tells right in the So, think I it heading us

Steve Percoco

in much final lower give as challenge can me cremations, more of any you business. then question costs face towards, can but example, shifting the of And or because guess, trends us forms that for decline this a don't if in sense quantify is, in For in that the see know you light making Okay. secular to people opportunity due you're way the is you what And boost how that. what think the there's obviously I I the is the a sales, you effort business? you are

Joe Redling

Sure. try. Steve, I'll

So, I guess the years much doing a volumes. simplistic we answer sales were higher couple ago is,

So, but some highest trend wasn't cremation cremation in I Yes, believe three increased, of properties have that some, major last that happened the performing years. trends our in are there high markets. are look are trend. pretty the you they places are I California, at ALP. are in our top they salespeople, in that they mean, they When in Florida, in have large cremation

fix was that I think somewhat think first. I have to organization we and we that a sales have dysfunctional

very don't I seeing that. things, I about we've interments. macro about So and number seen stable when a think would be if not dramatic issue think again, of a decline in started and think the interments there's, on been I those you We've

by more gardens, providing cremation we which cremation we're is, very salespeople our been what to haven't related like products aggressive and do invigorate So, trying on.

to where We have process projects right excited in get our it XX about people in now matters. markets

So, cremation. I think we can on product align in the go-to-market the

I the sales to have think organization. and culture the basic have fixes sales we just to

Steve Percoco

very you much. great. Okay, Thank

Joe Redling

welcome. You're

Operator

the from Sauler of with comes Capital. question line Sean Next Redwood

Your line open. is

Sean Sauler

and QX of tell us in in there's can bunch Quick of was fees, forward. not So fees continue and stabilize quarter QX a extent Thanks and sure what the business. I'm there is, I quarter, to that thanks accounting of a the then congrats hopefully starting you that refinancing, charges. consulting and question my question whether like on will the In consultant time the moving in and will lot. one fees, the sort a be lot. guess moving gotten fees forward

Joe Redling

you. that Garry, Thank to walk cause through you Sean. relatively kind of a Sure want it's number. big

Garry Herdler

the So, as be hey, cost of cost fees, million of the the about it financing in cost in which terms of had $XX.X booked deferred We of thanks activities. will was financing Sean. finance

will will there adjustments, $XX.X we've what disclosure of think XX-Q, the in was million non-recurring overheads, you'll ended some three about corporate We have but of got is the see about we June XX, in which sorry describe our months net.

So million been finance expensed, that that we've other got ignoring deferred as the about $X.X amounts fees. capitalized would've been would've adjustments non-recurring of

Sean Sauler

you. Understood. Thank

Garry Herdler

so we're other just the fees and amounts bigger professional number, to so that, got within give you picture be and trying gets, So, clear that'll that you've in the Q. just that I'm

Sean Sauler

lot. Okay. Thanks a

time. no I'll are there turn call Thank present the you. at further And questions yourselves. to the back

Joe Redling

you us. for joining Thank

follow questions, me feel any at have XXX-XXX-XXXX. up a you Thank you. good have free If evening. And call to

Operator

And for you call please thank your the your for conclude does participation that line. disconnect you and ask today. that We conference

StoneMor (STON) 9 Aug 192019 Q2 Earnings call transcript