TREVOSE, Pa., April 02, 2020 (GLOBE NEWSWIRE) -- StoneMor Inc. (NYSE: STON), a leading owner and operator of cemeteries and funeral homes, today announced it has entered into a multi-year Master Services Agreement (“MSA”) with Moon Landscaping (“Moon”) to develop, implement and provide all manner of property management and operational services at most of the funeral homes, cemeteries and other properties owned or managed by StoneMor.
Under the terms of the MSA, Moon will hire all of StoneMor’s grounds and maintenance employees at the serviced locations and will perform all functions currently handled by those employees, including, but not limited to, landscaping, openings and closings, burials, installations, routine maintenance and janitorial services. The implementation of the MSA will take place on a clustered basis over the next three to four months, with full implementation expected no later than July 31, 2020.
The total value of the contract, which runs through December 31, 2024, is approximately $241 million, based upon an initial annual cost of $49 million and annual increases of 2%. The first year cost will be prorated based upon exact implementation and roll-out schedule for each location. As part of the MSA, Moon is leasing StoneMor’s landscaping and maintenance equipment for the duration of the agreement. StoneMor expects to achieve annual savings of 10-15% compared to current property management costs.
The MSA also includes customary notice provisions for termination by either party.
“After the success of pilot programs launched during the first quarter of 2020 at 57 properties in Virginia, North Carolina and South Carolina, we are excited to launch this program on a larger scale,” said Joe Redling, StoneMor’s President and Chief Executive Officer. “This is an innovative approach for the industry and we believe it is transformational on many levels: Our customers will enjoy better maintained locations; our former maintenance employees will benefit from new career opportunities at a large, nationally recognized landscaping company; and the Company will realize significant cost savings while improving professional oversight and accountability for our properties.”
Bill Hutchins, President of Moon Landscaping said, “on behalf of Moon Landscaping, we are excited about the opportunity to partner with StoneMor through this transformational process. We look forward to welcoming StoneMor’s valued and experienced maintenance employees into the Moon family. The experience and reliability of these employees coupled with Moon’s property management experience will allow us to bring new levels of service and efficiency to StoneMor.”
About StoneMor Inc.
StoneMor Inc., headquartered in Trevose, Pennsylvania, is an owner and operator of cemeteries and funeral homes in the United States, with 320 cemeteries and 88 funeral homes in 27 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.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this press release, including, but not limited to, information regarding the anticipated implementation timing and the potential savings; and other anticipated benefits of the new arrangements, 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 the actual timing of implementation to vary from those stated or implied in this press release. StoneMor’s major risks that may impact such timing are related to uncertainties associated with current business and economic disruptions resulting from the recent coronavirus pandemic.
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.