In after-market trading, shares of StoneMor Inc. (STON) were up 17.47% at $1.95, at the time of writing. STON stock closed the last session at $1.66, decreasing -2.92% or -$0.05. STON stock price fluctuated between $1.65 and $1.79 throughout the day.
Acquisition of new 4 cemeteries by StoneMorInc
On 24th March StoneMor Inc. announced that it had acquired 4 cemeteries. The definitive agreement was signed for a value of $5,395,000 for the four cemeteries that are located in the East Coast Geographic. The total purchase price is subject to customary working and capital adjustments.
The Chief Executive Officer and President of STON stock, Joe Redling believes that this step represents a significant shift in the strategy which was previously on divesting assets but now is focused on acquisitions of locations that expand with the aligned existing portfolio. The transaction is subjected to regulatory approval and due diligence and will close expectedly on July 2021.
Announcing the financial results for full-year and fourth quarter of 2020
On 23rd March StoneMor Inc. reported its financial results for the year ended 31, 2020 and fourth quarter. The revenues for STON stock in the full year 2020 were greater than 2019 along with the fourth quarter revenues which had increased as well compared to the same period in 2019. Overall the company is set to focus on future growth and expansion with recent success in the financials.
Here are the highlights of the financial performances reported for FY 2020 and Q4;
- The revenues for the full year 2020 are $279.5 million which is a 8.67% increase from the $257.2 million for full year 2019
- The revenues for the fourth quarter 2020 are $74.9 million which is an increase from the $58.3 million for fourth quarter 2019.
- Cemetery Segment (CS) operating income for the full year 2020 are $35.0 which is an increase from $8 million for full year 2019
- CS operating income for fourth quarter 2020 are $10.9 million compared to the loss incurred in the fourth quarter 2019 of $0.6 million
- Funeral Home Segment (FHS) operating income for the full year 2020 is $5.0 million compared to $4.0 million in the full year 2019. Similarly, FHS operating income for Q4 is $1.5 million compared to $0.9 million in the Q4 2019.
- Q4 net loss from continuing operations were $5.7 million for 2020 compared to $52.4 million in Q4 2019. Similarly for full year 2020, net loss was $37.3 million compared to $154.7 for full year 2019.
StoneMor Inc. is a personal services company that specifically focuses on operating cemeteries and funeral homes in the US. In these two operational segments, the services are sold on a pre-need (Before death) and at-need (at passing away) basis. The cemetery operation provides interment rights to burial lots, crypts of the mausoleum, funeral lawn, cremation niche and cemetery-related merchandise. The Funeral homes operation focuses on merchandises related to funerals like caskets, family consultation, funeral home services, prepping the deceased, insurances, memorial and funeral home facility usage.
STON stock assets include 304 cemeteries as well as 70 funeral homes in 25 states and Puerto Rico.