Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Feb. 14, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | STON | |
Entity Registrant Name | STONEMOR PARTNERS LP | |
Entity Central Index Key | 1,286,131 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 37,958,645 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 8,043 | $ 6,821 |
Accounts receivable, net of allowance | 64,150 | 79,116 |
Prepaid expenses | 9,218 | 4,580 |
Assets held for sale | 1,083 | 1,016 |
Other current assets | 19,145 | 21,453 |
Total current assets | 101,639 | 112,986 |
Long-term accounts receivable, net of allowance | 89,765 | 105,935 |
Cemetery property | 333,724 | 333,404 |
Property and equipment, net of accumulated depreciation | 113,674 | 114,090 |
Merchandise trusts, restricted, at fair value | 520,027 | 515,456 |
Perpetual care trusts, restricted, at fair value | 345,022 | 339,928 |
Deferred selling and obtaining costs | 112,621 | 126,398 |
Deferred tax assets | 95 | 84 |
Goodwill | 24,862 | 24,862 |
Intangible assets, net | 61,905 | 63,244 |
Other assets | 24,549 | 19,695 |
Total assets | 1,727,883 | 1,756,082 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 56,472 | 43,023 |
Accrued interest | 5,331 | 1,781 |
Current portion, long-term debt | 1,184 | 1,002 |
Total current liabilities | 62,987 | 45,806 |
Long-term debt, net of deferred financing costs | 314,103 | 317,693 |
Deferred revenues, net | 943,805 | 912,626 |
Deferred tax liabilities | 6,730 | 9,638 |
Perpetual care trust corpus | 345,022 | 339,928 |
Other long-term liabilities | 41,776 | 38,695 |
Total liabilities | 1,714,423 | 1,664,386 |
Commitments and contingencies | ||
Partners' capital (deficit): | ||
General partner interest | (3,794) | (2,959) |
Common limited partners' interest | 17,254 | 94,655 |
Total partners' capital | 13,460 | 91,696 |
Total liabilities and partners' capital | $ 1,727,883 | $ 1,756,082 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | ||||
Revenues | $ 73,185 | $ 84,034 | $ 232,701 | $ 252,932 |
Costs and Expenses: | ||||
Cost of goods and services sold | 12,866 | 11,910 | 39,387 | 37,472 |
Selling expense | 14,251 | 17,082 | 47,673 | 49,164 |
General and administrative expense | 10,916 | 9,752 | 32,037 | 29,462 |
Corporate overhead | 12,876 | 11,887 | 39,868 | 39,058 |
Depreciation and amortization | 2,737 | 3,186 | 8,853 | 10,032 |
Total costs and expenses | 83,201 | 86,382 | 259,481 | 259,442 |
Other (losses) gains, net | 702 | 338 | (4,503) | (733) |
Interest expense | (7,638) | (6,944) | (22,858) | (20,391) |
Loss before income taxes | (16,952) | (8,954) | (54,141) | (27,634) |
Income tax benefit (expense) | (273) | (622) | 1,976 | (2,085) |
Net loss | (17,225) | (9,576) | (52,165) | (29,719) |
General partner's interest | (179) | (99) | (543) | (309) |
Limited partners' interest | $ (17,046) | $ (9,477) | $ (51,622) | $ (29,410) |
Net loss per limited partner unit (basic and diluted) | $ (0.45) | $ (0.25) | $ (1.36) | $ (0.78) |
Weighted average number of limited partners' units outstanding (basic and diluted) | 37,959 | 37,958 | 37,959 | 37,945 |
Cemetery | ||||
Revenues: | ||||
Revenues | $ 61,405 | $ 69,543 | $ 191,328 | $ 205,816 |
Costs and Expenses: | ||||
Depreciation and amortization | 1,858 | 2,175 | 6,043 | 6,734 |
Total costs and expenses | 19,407 | 19,984 | 57,828 | 56,805 |
Cemetery | Interments | ||||
Revenues: | ||||
Revenues | 17,716 | 17,841 | 58,130 | 55,460 |
Cemetery | Merchandise | ||||
Revenues: | ||||
Revenues | 18,023 | 20,051 | 51,766 | 57,182 |
Cemetery | Services | ||||
Revenues: | ||||
Revenues | 16,419 | 17,729 | 50,647 | 52,861 |
Cemetery | Investment and other | ||||
Revenues: | ||||
Revenues | 9,247 | 13,922 | 30,785 | 40,313 |
Funeral Home | ||||
Revenues: | ||||
Revenues | 11,780 | 14,491 | 41,373 | 47,116 |
Costs and Expenses: | ||||
Depreciation and amortization | 652 | 753 | 2,066 | 2,369 |
Total costs and expenses | 83,201 | 259,481 | ||
Funeral Home | Merchandise | ||||
Revenues: | ||||
Revenues | 5,581 | 6,591 | 19,532 | 21,176 |
Costs and Expenses: | ||||
Total costs and expenses | 1,341 | 1,793 | 4,927 | 5,176 |
Funeral Home | Services | ||||
Revenues: | ||||
Revenues | 6,199 | 7,900 | 21,841 | 25,940 |
Costs and Expenses: | ||||
Total costs and expenses | 5,493 | 5,442 | 16,593 | 16,595 |
Funeral Home | Investment and other | ||||
Costs and Expenses: | ||||
Total costs and expenses | $ 3,314 | $ 5,346 | $ 12,315 | $ 15,678 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL (UNAUDITED) - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands | Total | Common Limited Partners | General Partner | Outstanding Common Units |
Beginning Balance at Dec. 31, 2017 | $ 91,696 | $ 94,655 | $ (2,959) | |
Beginning Balance (in units) at Dec. 31, 2017 | 37,957,936 | |||
Common unit awards under incentive plans | 2,026 | 2,026 | ||
Common unit awards under incentive plans (in units) | 709 | |||
Net loss | (52,165) | (51,622) | (543) | |
Ending Balance at Sep. 30, 2018 | 13,460 | 17,254 | (3,794) | |
Ending Balance (in units) at Sep. 30, 2018 | 37,958,645 | |||
Cumulative effect of accounting change | $ (28,097) | $ (27,805) | $ (292) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows From Operating Activities: | ||
Net loss | $ (52,165) | $ (29,719) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Cost of lots sold | 5,850 | 7,823 |
Depreciation and amortization | 8,853 | 10,032 |
Provision for bad debt | 3,776 | 5,123 |
Non-cash compensation expense | 2,026 | 656 |
Non-cash interest expense | 4,576 | 3,318 |
Non-cash impairment charge and other losses | 4,503 | 517 |
Changes in assets and liabilities: | ||
Accounts receivable, net of allowance | 5,574 | (8,576) |
Merchandise trust fund | (6,917) | 44,251 |
Other assets | (2,047) | (5,053) |
Deferred selling and obtaining costs | (4,780) | (7,246) |
Deferred revenues, net | 40,361 | (12,119) |
Deferred taxes, net | (2,545) | 1,425 |
Payables and other liabilities | 12,346 | 14,269 |
Net cash provided by operating activities | 19,411 | 24,701 |
Cash Flows From Investing Activities: | ||
Cash paid for capital expenditures | (10,164) | (7,960) |
Cash paid for acquisitions | (1,667) | |
Proceeds from divestitures | 701 | |
Proceeds from asset sales | 954 | 401 |
Net cash used in investing activities | (10,877) | (6,858) |
Cash Flows From Financing Activities: | ||
Cash distributions | (24,545) | |
Proceeds from borrowings | 23,880 | 78,792 |
Repayments of debt | (27,924) | (74,627) |
Cost of financing activities | (3,268) | (1,573) |
Net cash provided by (used in) financing activities | (7,312) | (21,953) |
Net increase (decrease) in cash and cash equivalents | 1,222 | (4,110) |
Cash and cash equivalents - Beginning of period | 6,821 | 12,570 |
Cash and cash equivalents - End of period | 8,043 | 8,460 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 15,809 | 13,653 |
Cash paid during the period for income taxes | 1,517 | 2,884 |
Non-cash investing and financing activities: | ||
Acquisition of assets by financing | 1,620 | 2,285 |
Classification of assets as held for sale | $ 543 | $ 1,169 |
GENERAL
GENERAL | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | 1. GENERAL Nature of Operations StoneMor Partners L.P. (the “Partnership”) is a provider of funeral and cemetery products and services in the death care industry in the United States. As of September 30, 2018, the Partnership operated 322 cemeteries in 27 states and Puerto Rico, of which 291 were owned and 31 were operated under lease, management or operating agreements. The Partnership also owned and operated 90 funeral homes, including 44 located on the grounds of cemetery properties that the Partnership owns, in 17 states and Puerto Rico. Basis of Presentation The accompanying condensed consolidated financial statements, which are unaudited except for the balance sheet at December 31, 2017, which has been derived from audited financial statements, have been prepared in accordance with the requirements of Form 10-Q 10-K. 10-K Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of each of the Partnership’s 100% owned subsidiaries. These statements also include the accounts of the merchandise and perpetual care trusts in which the Partnership has a variable interest and is the primary beneficiary. The Partnership operates 31 cemeteries under long-term lease, operating or management contracts. The operations of 16 of these managed cemeteries have been consolidated. The Partnership operates 15 cemeteries under long-term leases and other agreements that do not qualify as acquisitions for accounting purposes. As a result, the Partnership did not consolidate all of the existing assets and liabilities related to these cemeteries. The Partnership has consolidated the existing assets and liabilities of the merchandise and perpetual care trusts associated with these cemeteries as variable interest entities since the Partnership controls and receives the benefits and absorbs any losses from operating these trusts. Under the long-term leases and other agreements associated with these properties, which are subject to certain termination provisions, the Partnership is the exclusive operator of these cemeteries and earns revenues related to sales of merchandise, services and interment rights, and incurs expenses related to such sales, including the maintenance and upkeep of these cemeteries. Upon termination of these contracts, the Partnership will retain all of the benefits and related contractual obligations incurred from sales generated during the contract period. The Partnership has also recognized the existing customer contract related performance obligations that it assumed as part of these agreements. Reclassifications and Adjustments to Prior Period Financial Statements Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation, in the consolidated results of operations, primarily to present interment rights separately from merchandise revenues and to reclassify items that were previously recorded in Merchandise Revenues that represented the installation of certain merchandise items which are now presented in Services. There was no effect on the previously reported consolidated results of operations, consolidated financial position or cash flows, except as described below under “ Recently Issued Accounting Standard Updates - Adopted in the Current Period. Uses and Sources of Liquidity The Partnership’s primary sources of liquidity are cash generated from operations and borrowings under its revolving credit facility. As a master limited partnership (MLP), the Partnership’s primary cash requirements, in addition to normal operating expenses, are for capital expenditures, net contributions to the merchandise and perpetual care trust funds, debt service and cash distributions. In general, as part of its operating strategy, the Partnership expects to fund: • working capital deficits through cash generated from operations, additional borrowings and sales of underperforming properties; • expansion capital expenditures, net contributions to the merchandise and perpetual care trust funds and debt service obligations through available cash, cash generated from operations, additional borrowings or asset sales. Amounts contributed to the merchandise trust funds will be withdrawn at the time of the delivery of the product or service sold to which the contribution relates (see “Summary of Significant Accounting Policies” section below regarding revenue recognition), which will reduce the amount of additional borrowings or asset sales needed; and • any cash distributions the Partnership is permitted and determines to pay in accordance with its partnership agreement and maintenance capital expenditures through available cash and cash flows from operating activities. While the Partnership relies heavily on its cash flows from operating activities and borrowings under its credit facility to execute its operational strategy and meet its financial commitments and other short-term financial needs, the Partnership cannot be certain that sufficient capital will be generated through operations or available to the Partnership to the extent required and on acceptable terms. Moreover, although the Partnership’s cash flows from operating activities have been positive, the Partnership has experienced negative financial trends which, when considered in the aggregate, raise substantial doubt about the Partnership’s ability to continue as a going concern. These negative financial trends include: • net losses from operations due to an increased competitive environment, an increase in professional fees and compliance costs and an increase in consulting fees associated with the Partnership’s adoption of the Accounting Standard Codification (“ASC”) 606, Revenue from Contracts with Customers • a decline in billings coupled with the increase in professional, compliance and consulting expenses, tightened the Partnership’s liquidity position and increased reliance on long-term financial obligations, which in turn limited the Partnership’s ability to pay distributions; • the Partnership’s failure to comply with certain debt covenants required by the Partnership’s credit facility due to the Partnership’s inability to complete a timely filing of our Annual Reports on Form 10-K 10-Q, During 2017 and to date in 2018, the Partnership has implemented (and will continue to implement) various actions to improve profitability and cash flows to fund operations. A summary of these actions is as follows: • continue to manage recurring operating expenses and seek to limit non-recurring • complete sales of certain assets and businesses to provide supplemental liquidity; and • for the reasons disclosed above, the Partnership was not in compliance with certain of its amended credit facility covenants as of December 31, 2017, March 31, 2018, June 30, 2018, September 30, 2018 and December 31, 2018. These failures constituted defaults that the lenders agreed to waive pursuant to the Sixth Amendment and Waiver, the Seventh Amendment and Waiver and the Eighth Amendment and Waiver to the Partnership’s credit facility on June 12, 2018, July 13, 2018 and February 4, 2019, respectively, as disclosed in the credit facility subsection in Note 9 Long-Term Debt and in Note 17 Subsequent Events. Moreover, based on the Partnership’s forecasted operating performance, cash flows and projected plans to file financial statements on a timely basis consistent with the debt covenants, the Partnership does not believe it is probable that the Partnership will further breach the covenants under its amended credit facility for the next twelve-month period. However, there is no certainty that the Partnership’s actual operating performance and cash flows will not be substantially different from forecasted results, and no certainty the Partnership will not need further amendments to its credit facility in the future. Factors that could impact the significant assumptions used by the Partnership in assessing its ability to satisfy its financial covenants include the following: • operating performance not meeting reasonably expected forecasts; • failing to generate profitable sales; • investments in the Partnership’s trust funds experiencing significant declines due to factors outside its control; • being unable to compete successfully with other cemeteries and funeral homes in the Partnership’s markets; • the number of deaths in the Partnership’s markets declining; and • the mix of funeral and cemetery revenues between burials and cremations. If the Partnership’s planned and implemented actions are not realized and the Partnership fails to improve its operating performance and cash flows, or the Partnership is not able to comply with the covenants under its amended credit facility, the Partnership may be forced to limit its business activities, implement further modifications to its operations, further amend its credit facility and/or seek other sources of capital, and the Partnership may be unable to continue as a going concern. Additionally, a failure to generate additional liquidity could negatively impact the Partnership’s access to inventory or services that are important to the operation of the Partnership’s business. Given the Partnership’s level of cash and cash equivalents, to preserve capital resources and liquidity, the Board of Directors of the General Partner concluded that it was not in the best interest of unitholders to pay distributions to unitholders after the first quarter of 2017. In addition, the Partnership’s revolving credit facility prohibits the Partnership from making distributions to unitholders. Any of these events may have a material adverse effect on the Partnership’s results of operations and financial condition. The condensed consolidated financial statements included in this Quarterly Report on Form 10-Q Summary of Significant Accounting Policies Refer to Note 1 to the Partnership’s audited consolidated financial statements included in Item 8 of its Annual Report on Form 10-K As of September 30, 2018, with the exception of the items noted in the section captioned “ Recently Issued Accounting Standard Updates - Adopted in the Current Period” 10-K Use of Estimates The preparation of the Partnership’s unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions as described in its Annual Report on Form 10-K Revenues A. Significant Accounting Policy The Partnership’s revenues are derived from contracts with customers through sale and delivery of death care products and services. Primary sources of revenue are derived from (1) cemetery and funeral home operations generated both at the time of death (“at-need”) (“pre-need”), pre-need Cemetery and Funeral Home Operations Revenue Pre-need Sales taxes assessed by a governmental authority are excluded from revenue. Any shipping and handling costs that are incurred after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold. Investment income pre-need Pre-need At the time of a non-cancellable pre-need pre-need B. Nature of Goods and Services The following is a description of the principal activities, separated by reportable segments, from which the Partnership generates its revenue. As discussed more fully in Note 15 Segment Information, the Partnership operates two reportable segments: Cemetery Operations and Funeral Home Operations. Cemetery Operations The Cemetery Operations segment principally generates revenue from (1) providing rights to inter remains in a specific cemetery property inventory space such as burial lots and constructed mausoleum crypts (“Interments”), (2) sales of cemetery merchandise which includes markers (i.e., method of identifying a deceased person in a burial space, crypt, or niche), base (i.e.; concrete lining for the bottom of the burial plot), vault (i.e. a container installed in the burial lot in which the casket is placed), caskets, cremation niches, and other cemetery related items (“Merchandise”) and (3) service revenues, including opening and closing (“O&C”), a service of digging and refilling burial spaces to install the burial vault and place the casket into the vault, cremation services, and fees for installation of cemetery merchandise (“Services”). Products and services may be sold separately or in packages. For packages, the Partnership accounts for individual products and services separately as they are distinct (i.e., the product or service is separately identifiable from other items in the package and the customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration (including any discounts) is allocated among separate products and services in a package based on their relative stand-alone selling prices. The stand-alone selling price is determined by management based upon local market conditions and reasonable ranges for both merchandise and services which is the best estimate of the stand-alone price. For items that are not sold separately (e.g., second interment rights), the Partnership estimates stand-alone selling prices using the best estimate of market value. The Partnership estimated the stand-alone selling price using inputs such as average selling price and list price broken down by each geographic location. Additionally the Partnership considered typical sales promotions that could have impacted the stand-alone selling price estimates. Interments revenue is recognized when control transfers, which is when the property is available for use by the customer. For pre-construction Merchandise revenue and deferred investment earnings on merchandise trusts are recognized when a customer obtains control of the product. This usually occurs when the customer takes possession of the product (title has transferred to the customer and the merchandise is either installed or stored, at the direction of the customer, at the vendor’s warehouse or a third-party warehouse at no additional cost to the Partnership). The amount of revenue recognized is adjusted for expected refunds, which are estimated based on applicable law, general business practices and historical experience observed specific to the respective performance obligation. The estimate of the refund obligation is reevaluated on a quarterly basis. In addition, we are entitled to retain, in certain jurisdictions, a portion of collected customer payments when a customer cancels a pre-need Service revenue is recognized when the services are performed and the performance obligation is thereby satisfied. The cost of goods sold related to merchandise and services reflects the actual cost of purchasing products and performing services and the value of cemetery property depleted through the recognized sales of interment rights. The costs related to the sales of lots and crypts are determined systematically using a specific identification method under which the total value of the underlying cemetery property and the lots available to be sold at the location are used to determine the cost per lot. Funeral Home Operations Our Funeral Home Operations segment principally generates revenue from (1) sales of funeral home merchandise which includes caskets and other funeral related items (“Merchandise”) and (2) service revenues, including services such as family consultation, the removal of and preparation of remains and the use of funeral home facilities for visitation and prayer services (“Services”). Our funeral home operations also include revenues related to the sale of term and whole life insurance on an agency basis, in which we earn a commission from the sales of these policies. Insurance commission revenue is reported within service revenues. Products and services may be sold separately or in packages. For packages, the Partnership accounts for individual products and services separately as they are distinct (i.e. the product or service is separately identifiable from other items in the package and the customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration (including any discounts) is allocated among separate products and services based on their relative stand-alone selling prices. The relative stand-alone selling price is determined by management’s best estimate of the stand-alone price based upon the list price at each location. Funeral Home Operations primarily generate revenues from at-need Merchandise revenue is recognized when a customer obtains control of the product. This usually occurs when the customer takes possession of the product (title has transferred to the customer and the merchandise is either installed or stored, at the direction of the customer, at the vendor’s warehouse or a third-party warehouse). The amount of revenue recognized is adjusted for expected refunds, which are estimated based on applicable law, general business practices and historical experience observed specific to the respective performance obligations. The estimate of the refund obligation is reevaluated on a quarterly basis. Service revenue is recognized when the services are performed and the performance obligation is thereby satisfied. Costs related to the delivery or performance of merchandise and services are charged to expense when merchandise is delivered or services are performed. Deferred Selling and Obtaining Costs The Partnership defers certain costs that are incremental to obtaining pre-need As of September 30, 2018, we had $112.6 million in deferred incremental direct selling costs included in Deferred charges and other assets Income Taxes The Partnership is not subject to U.S. federal and most state income taxes. The partners of the Partnership are liable for income tax in regard to their distributive share of the Partnership’s taxable income. Such taxable income may vary substantially from net income reported in the accompanying consolidated financial statements. Certain corporate subsidiaries are subject to federal and state income tax. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and tax carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Partnership records a valuation allowance against its deferred tax assets if it deems that it is more likely than not that some portion or all of the recorded deferred tax assets will not be realizable in future periods. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law. The Tax Act made broad and complex changes to the U.S. tax code by, among other things, reducing the federal corporate income tax rate, creating a new limitation on deductible interest expense, creating bonus depreciation that will allow for full expensing on qualified property, changing the lives of post-2017 net operating loss carryovers and imposing limitations on deductibility of certain executive compensation. The primary driver of the change in the income tax provision for the three and nine months ended September 30, 2018 related to the reduction of tax rates and the benefit related to 2018 net operating loss carryovers which have an unlimited carry forward life and can be used to offset long life deferred tax liabilities. Net Loss per Common Unit Basic net loss attributable to common limited partners per unit is computed by dividing net loss attributable to common limited partners, which is determined after the deduction of the general partner’s interest by the weighted average number of common limited partner units outstanding during the period. Net loss attributable to common limited partners is determined by deducting net loss attributable to participating securities, if applicable, and net loss attributable to the general partner’s units. The general partner’s interest in net loss is calculated on a quarterly basis based upon its units and incentive distributions to be distributed for the quarter, with a priority allocation of net loss to the general partner’s incentive distributions, if any, in accordance with the partnership agreement, and the remaining net loss allocated with respect to the general partner’s and limited partners’ ownership interests. The Partnership presents net loss per unit under the two-class two-class two-class two-class The following is a reconciliation of net loss allocated to the common limited partners for purposes of calculating net loss attributable to common limited partners per unit (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net loss $ (17,225 ) $ (9,576 ) $ (52,165 ) $ (29,719 ) Less: Incentive distribution right (“IDR”) payments to general partner — — — — Net loss to allocate to general and common limited partners (17,225 ) (9,576 ) (52,165 ) (29,719 ) General partner’s interest excluding IDRs (179 ) (99 ) (543 ) (309 ) Net loss attributable to common limited partners $ (17,046 ) $ (9,477 ) $ (51,622 ) $ (29,410 ) Diluted net loss attributable to common limited partners per unit is calculated by dividing net loss attributable to common limited partners, less income allocable to participating securities, by the sum of the weighted average number of common limited partner units outstanding and the dilutive effect of unit option awards, as calculated by the treasury stock or if converted methods, as applicable. These awards consist of common units issuable upon payment of an exercise price by the participant under the terms of the Partnership’s long-term incentive plan. The following table sets forth the Partnership’s weighted average number of common limited partner units used to compute basic net loss attributable to common limited partners per unit with those used to compute diluted net loss attributable to common limited partners per unit (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Weighted average number of common limited partner units - basic and diluted (1) 37,959 37,958 37,959 37,945 (1) The diluted weighted average number of limited partners’ units outstanding presented on the condensed consolidated statement of operations does not include 560,839 units and 334,942 units for the three months ended September 30, 2018 and 2017, respectively, and 560,839 units and 328,460 units for the nine months ended September 30, 2018 and 2017, respectively, as their effects would be anti-dilutive. Recently Issued Accounting Standard Updates - Adopted in the Current Period Revenue In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) No. 2014-09 The Partnership adopted the new revenue standard as of January 1, 2018 using the modified retrospective method and applying the new standard to all contracts with customers. Therefore, the comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Partnership elected to aggregate the effects of all contract modifications that occurred prior to the date of adoption when (i) identifying the satisfied and unsatisfied performance obligations, (ii) determining the transaction price and (iii) allocating the transaction price to the satisfied and unsatisfied performance obligations, rather than retrospectively restating the contracts for those modifications. The new revenue standard, as amended, requires that we recognize revenue in the amount to which we expect to be entitled for delivery of promised goods and services to our customers. The new revenue standard also resulted in enhanced revenue-related disclosures, including any significant judgments and changes in judgments. Additionally, the new revenue standard requires the deferral of incremental direct selling costs to the period in which the related revenue is recognized. The standard primarily impacts the manner in which we recognize (a) certain nonrefundable up-front pre-need at-need pre-need As noted above, due to the adoption of ASC 606, the Partnership recorded a $6.4 million decrease to the opening balance of partners’ capital primarily related to the timing of the recognition of nonrefundable upfront fees partially offset by an increase to the opening balance of partners’ capital due to the timing of revenue recognition for interment rights which are now recognized when the property is available for use by the customer. The Partnership recorded an $18.6 million decrease to the opening balance of partners’ capital due to the write-down of certain recoverable selling and obtaining costs that were determined not to be incremental costs to acquire under ASC 606. In addition, the Partnership established a $2.1 million reserve representing the fair value of the refund obligation that may arise due to state law provisions that include a guarantee of customer funds collected on unfulfilled performance obligations and maintained in trust, which may be refundable due to the exercise of customer cancellation rights. As a result, the Partnership recorded a $3.5 million decrease to the opening balance of partners’ capital and an increase in Other Long-Term Liabilities. Additionally, the Partnership recognized a tax benefit of $0.4 million as a result of adoption, which was an increase to the opening balance of partners’ capital. The information presented for the period prior to January 1, 2018 has not been restated and is reported under FASB ASC 605. The cumulative effect of adopting the new revenue standard impacted the Partnership’s consolidated January 1, 2018 balance sheet as follows (in thousands): Balance Sheet Balance as of Impact of Balance as of Assets Current Assets: Cash and cash equivalents $ 6,821 $ — $ 6,821 Accounts receivable, net of allowance 79,116 (6,122 ) 72,994 Prepaid expenses 4,580 — 4,580 Assets held for sale 1,016 — 1,016 Other current assets 21,453 — 21,453 Total current assets 112,986 (6,122 ) 106,864 Long-term accounts receivable - net of allowance 105,935 (6,527 ) 99,408 Cemetery property 333,404 (2,020 ) 331,384 Property and equipment, net of accumulated depreciation 114,090 — 114,090 Merchandise trusts, restricted, at fair value 515,456 — 515,456 Perpetual care trusts, restricted, at fair value 339,928 — 339,928 Deferred selling and obtaining costs 126,398 (18,557 ) 107,841 Deferred tax assets 84 7 91 Goodwill 24,862 — 24,862 Intangible assets 63,244 — 63,244 Other assets 19,695 — 19,695 Total assets $ 1,756,082 $ (33,219 ) $ 1,722,863 Liabilities and partners’ capital Current liabilities Accounts payable and accrued liabilities $ 43,023 $ 1,329 $ 44,352 Accrued interest 1,781 — 1,781 Current portion, long-term debt 1,002 — 1,002 Total current liabilities 45,806 1,329 47,135 Long-term debt, net of deferred financing costs 317,693 — 317,693 Deferred revenues, net 912,626 (9,558 ) 903,068 Deferred tax liabilities 9,638 (367 ) 9,271 Perpetual care trust corpus 339,928 — 339,928 Other long term liabilities 38,695 3,474 42,169 Total liabilities 1,664,386 (5,122 ) 1,659,264 Partners’ capital General partner (2,959 ) (292 ) (3,251 ) Common partner 94,655 (27,805 ) 66,850 Total partners’ equity 91,696 (28,097 ) 63,599 Total liabilities and partners’ equity $ 1,756,082 $ (33,219 ) $ 1,722,863 In accordance with FASB ASC 606 under the modified retrospective approach, the Partnership is required to disclose the impact of the new revenue standard by comparing the results of the current reporting period under FASB ASC 605. The impact of adopting ASC 606 on the Partnership’s condensed consolidated statement of operations for the three and nine months ended September 30, 2018 is as follows: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Statement of Operations As Reported Balances if Impact of As Reported Balances if Impact of Revenues: Cemetery: Interments $ 17,716 $ 17,732 $ (16 ) $ 58,130 $ 53,411 $ 4,719 Merchandise 18,023 17,920 103 51,766 50,156 1,610 Services 16,419 16,255 164 50,647 49,061 1,586 Investment and other 9,247 11,988 (2,741 ) 30,785 39,623 (8,838 ) Funeral home: Merchandise 5,581 5,621 (40 ) 19,532 19,464 68 Services 6,199 6,389 (190 ) 21,841 22,255 (414 ) Total revenues 73,185 75,905 (2,720 ) 232,701 233,970 (1,269 ) Costs and Expenses: Cost of goods sold $ 12,866 $ 13,407 $ (541 ) $ 39,387 $ 40,366 $ (979 ) Cemetery expenses 19,407 19,407 — 57,828 57,828 — Selling expense 14,251 14,483 (232 ) 47,673 45,586 2,087 General and administrative expense 10,916 10,918 (2 ) 32,037 32,039 (2 ) Corporate overhead 12,876 12,873 3 39,868 39,865 3 Depreciation and amortization 2,737 2,737 — 8,853 8,853 — Funeral home expenses: Merchandise 1,341 1,341 — 4,927 4,927 — Services 5,493 5,504 (11 ) 16,593 16,628 (35 ) Other 3,314 3,314 — 12,315 12,315 — Total costs and expenses 83,201 83,984 (783 ) 259,481 258,407 1,074 Other losses 702 702 — (4,503 ) (4,503 ) — Interest expense (7,638 ) (7,638 ) — (22,858 ) (22,858 ) — Loss before income taxes (16,952 ) (15,015 ) (1,937 ) (54,141 ) (51,798 ) (2,343 ) Income tax benefit (expense) (273 ) (273 ) — 1,976 1,899 77 Net loss $ (17,225 ) $ (15,288 ) $ (1,937 ) $ (52,165 ) $ (49,899 ) $ (2,266 ) The impact of the adoption on the September 30, 2018 balance sheet was not material. The cumulative impact of the adoption on the statement of cash flows only impacted certain line items in cash flows from operating activities. Total net cash provided by operating activities did not change as a result of the adoption. The increase net loss of $(1.9) million and $(2.3) million, for the three and nine months ended September 30, 2018, respectively, was offset by changes in costs of lots sold, provision for bad debt, and changes in the balances of accounts receivable, deferred selling and obtaining cost, deferred revenues and deferred taxes, net. Financial Instruments In the first quarter of 2016, the FASB issued Update No. 2016-01, Financial Instruments (Subtopic 825-10) (“ASU 2016-01”). The ASU 2016-01 is ASU 2016-01 on In the first quarter of 2018, the FASB issued Update No. 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10): 2018-03”). 2016-01. ASU 2018-03 on Cash Flows In the third quarter of 2016, the FASB issued Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The ASU 2016-15 is In the fourth quarter of 2016, the FASB issued Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). The 2016-18 is Business Combinations In the first quarter of 2017, the FASB issued Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Income Taxes In the first quarter of 2018, the FASB issued Update No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 2018-05”). 2018-05 Recently Issued Accounting Standard Updates - Not Yet Effective Leases In the first quarter of 2016, the FASB issued Update No. 2016-02, Leases (Topic 842) 2016-02”). 2016-02 In the first quarter of 2018, the FASB issued Update No. 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 2018-01”). Leases. 2016-02, 2016-02. In July 2018, the FASB issued Update No. 2018-10 Codification Improvements to Topic 842, Leases 2018-10”) No. 2018-11 Leases (Topic 842) Targeted Improvements 2018-11”). 2018-10 2016-02. 2018-11 2016-02 2016-02. Credit Losses In the second quarter of 2016, the FASB issued Update No. 2016-13, Credit Losses (Topic 326) 2016-13”). 2016-13 2016-13 |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | 2. ACQUISITIONS On January 19, 2018, the Partnership acquired six cemetery properties in Wisconsin and their related assets, net of certain assumed liabilities, for cash consideration of $2.5 million, of which $0.8 million was paid at closing. These properties had been managed by the Partnership since August 2016. The Partnership has accounted for the purchase of these properties, which were not material individually or in the aggregate under the acquisition method of accounting. |
IMPAIRMENT & OTHER LOSSES
IMPAIRMENT & OTHER LOSSES | 9 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
IMPAIRMENT & OTHER LOSSES | 3. IMPAIRMENT & OTHER LOSSES Merchandise is sold to both at-need pre-need pre-need at-need pre-need Due to enhanced inventory control procedures implemented in late 2018, the Partnership determined that certain merchandise inventory allocated to pre-need pre-need Materiality Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in the Current Year Financial Statements, |
ACCOUNTS RECEIVABLE, NET OF ALL
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE | 4. ACCOUNTS RECEIVABLE, NET OF ALLOWANCE Long-term accounts receivable, net, consisted of the following at the dates indicated (in thousands): September 30, December 31, Customer receivables (1) $ 177,614 $ 225,380 Unearned finance income (1) (18,213 ) (20,534 ) Allowance for bad debt (1) (5,486 ) (19,795 ) Accounts receivable, net of allowance 153,915 185,051 Less: Current portion, net of allowance 64,150 79,116 Long-term portion, net of allowance $ 89,765 $ 105,935 Activity in the allowance for bad debt was as follows (in thousands): Nine Months Ended 2018 2017 Balance, beginning of period (1) $ 19,795 $ 26,153 Cumulative effect of accounting changes (12,876 ) — Provision for bad debt (1) 3,776 5,123 Charge offs, net (1) (5,209 ) (6,057 ) Balance, end of period $ 5,486 $ 25,219 (1) Upon adoption of ASC 606, the Partnership reclassified amounts due from customers for unfulfilled performance obligations on cancellable pre-need |
CEMETERY PROPERTY
CEMETERY PROPERTY | 9 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
CEMETERY PROPERTY | 5. CEMETERY PROPERTY Cemetery property consisted of the following at the dates indicated (in thousands): September 30, December 31, (1) Cemetery land $ 258,197 $ 256,856 Mausoleum crypts and lawn crypts 75,527 76,548 Cemetery property $ 333,724 $ 333,404 (1) The information at December 31, 2017 has not been adjusted for the impact of the Partnership’s adoption of ASC 606 on January 1, 2018. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 6. PROPERTY AND EQUIPMENT Property and equipment consisted of the following at the dates indicated (in thousands): September 30, December 31, Buildings and improvements $ 129,589 $ 125,337 Furniture and equipment 58,573 57,514 Funeral home land 14,185 14,185 Property and equipment, gross 202,347 197,036 Less: Accumulated depreciation (88,673 ) (82,946 ) Property and equipment, net of accumulated depreciation $ 113,674 $ 114,090 Depreciation expense was $2.3 million and $2.6 million for the three months ended September 30, 2018 and 2017, respectively, and $7.5 million and $8.3 million for the nine months ended September 30, 2018 and 2017, respectively. |
MERCHANDISE TRUST
MERCHANDISE TRUST | 9 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
MERCHANDISE TRUST | 7. MERCHANDISE TRUSTS At September 30, 2018 and December 31, 2017, the Partnership’s merchandise trusts consisted of investments in debt and equity marketable securities and cash equivalents, both directly as well as through mutual and investment funds. All of these investments are carried at fair value. All of the investments subject to the fair value hierarchy are considered either Level 1 or Level 2 assets pursuant to the three-level hierarchy described in Note 13. There were no Level 3 assets. As discussed in Note 1, when we receive payments from the customer, we deposit the amount required by law into the merchandise trusts that may be subject to cancellation on demand by our customer. The Partnership’s merchandise trusts related to states in which customers may cancel contracts with us comprise 53.2% of the total merchandise trust as of September 30, 2018. The merchandise trusts are variable interest entities (“VIE”) of which the Partnership is deemed the primary beneficiary. The assets held in the merchandise trusts are required to be used to purchase the merchandise and provide the services to which they relate. If the value of these assets falls below the cost of purchasing such merchandise and providing such services, the Partnership may be required to fund this shortfall. The Partnership included $9.1 million of investments held in trust by the West Virginia Funeral Directors Association at September 30, 2018 and December 31, 2017 in its merchandise trust assets. As required by law, the Partnership deposits a portion of certain funeral merchandise sales in West Virginia into a trust that is held by the West Virginia Funeral Directors Association. These trusts are recognized at their account value, which approximates fair value. A reconciliation of the Partnership’s merchandise trust activities for the nine months ended September 30, 2018 and 2017 is presented below (in thousands): Nine Months Ended 2018 2017 Balance, beginning of period $ 515,456 $ 507,079 Contributions 49,762 44,497 Distributions (53,321 ) (65,723 ) Interest and dividends 20,486 18,252 Capital gain distributions 405 927 Realized gains and losses (258 ) 14,192 Other than temporary impairment (11,977 ) — Taxes (337 ) (1,306 ) Fees (3,049 ) (1,855 ) Unrealized change in fair value 2,860 (3,882 ) Balance, end of period $ 520,027 $ 512,181 During the nine months ended September 30, 2018 and 2017, purchases of investments were approximately $78.3 million and $298.7 million, respectively, while sales, maturities and paydowns of investments were $66.6 million and $297.2 million, respectively. Cash flows from pre-need customer The cost and market value associated with the assets held in the merchandise trusts as of September 30, 2018 and December 31, 2017 were as follows (in thousands): September 30, 2018 Fair Value Cost Gross Gross Fair Short-term investments 1 $ 10,573 $ — $ — $ 10,573 Fixed maturities: U.S. governmental securities 2 398 — (156 ) 242 Corporate debt securities 2 1,396 48 (351 ) 1,093 Total fixed maturities 1,794 48 (507 ) 1,335 Mutual funds - debt securities 1 206,264 70 (5,295 ) 201,039 Mutual funds - equity securities 1 56,956 2,579 — 59,535 Other investment funds (1) 202,951 2,160 (1,239 ) 203,872 Equity securities 1 22,307 3,982 (220 ) 26,069 Other invested assets 2 8,455 9 (4 ) 8,460 Total investments $ 509,300 $ 8,848 $ (7,265 ) $ 510,883 West Virginia Trust Receivable 9,144 9,144 Total $ 518,444 $ 8,848 $ (7,265 ) $ 520,027 (1) Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have redemption periods ranging from 1 to 30 days, and private credit funds, which have lockup periods of two to seven years with three potential one-year December 31, 2017 Fair Value Cost Gross Gross Fair Short-term investments 1 $ 10,421 $ — $ — $ 10,421 Fixed maturities: U.S. governmental securities 2 196 1 (65 ) 132 Corporate debt securities 2 1,204 52 (242 ) 1,014 Total fixed maturities 1,400 53 (307 ) 1,146 Mutual funds - debt securities 1 222,450 1,522 (1,211 ) 222,761 Mutual funds - equity securities 1 71,500 2,399 (6,292 ) 67,607 Other investment funds (1) 171,044 522 (401 ) 171,165 Equity securities 1 21,808 2,715 (277 ) 24,246 Other invested assets 2 9,013 — — 9,013 Total investments $ 507,636 $ 7,211 (8,488 ) $ 506,359 West Virginia Trust Receivable 9,097 — — 9,097 Total $ 516,733 $ 7,211 $ (8,488 ) $ 515,456 (1) Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have redemption periods ranging from 1 to 90 days and private credit funds, which have lockup periods of four to eight years with two potential one-year The contractual maturities of debt securities as of September 30, 2018 were as follows (in thousands): Less than 1 year through 6 years through More than U.S. governmental securities $ — $ 136 $ 106 $ — Corporate debt securities 15 1,005 57 16 Total fixed maturities $ 15 $ 1,141 $ 163 $ 16 The Partnership evaluates declines in fair value below cost for each asset held in the merchandise trusts on a quarterly basis. An aging of unrealized losses on the Partnership’s investments in debt and equity securities within the merchandise trusts as of September 30, 2018 and December 31, 2017 is presented below (in thousands): Less than 12 months 12 months or more Total September 30, 2018 Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities: U.S. governmental securities $ — $ — $ 240 $ 156 $ 240 $ 156 Corporate debt securities 112 5 561 346 673 351 Total fixed maturities 112 5 801 502 913 507 Mutual funds - debt securities 144,400 4,819 873 476 145,273 5,295 Mutual funds - equity securities — — — — — — Other investment funds 87,897 1,239 — — 87,897 1,239 Equity securities 1,710 55 852 165 2,562 220 Other invested assets — 4 — — — 4 Total $ 234,119 $ 6,122 $ 2,526 $ 1,143 $ 236,645 $ 7,265 Less than 12 months 12 months or more Total December 31, 2017 Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities: U.S. governmental securities $ — $ — $ 112 $ 65 $ 112 $ 65 Corporate debt securities 150 50 361 192 511 242 Total fixed maturities 150 50 473 257 623 307 Mutual funds - debt securities 102,526 912 1,462 299 103,988 1,211 Mutual funds - equity securities 51,196 6,292 — — 51,196 6,292 Other investment funds 48,140 401 — — 48,140 401 Equity securities 2,906 255 390 22 3,296 277 Total $ 204,918 $ 7,910 $ 2,325 $ 578 $ 207,243 $ 8,488 For all securities in an unrealized loss position, the Partnership evaluated the severity of the impairment and length of time that a security has been in a loss position and concluded the decline in fair value below the asset’s cost was temporary in nature. In addition, the Partnership is not aware of any circumstances that would prevent the future market value recovery for these securities. Other-Than-Temporary Impairment of Trust Assets The Partnership assesses its merchandise trust assets for other-than-temporary declines in fair value on a quarterly basis. During the three months ended September 30, 2018, the Partnership determined, based on its review, that there were 37 securities with an aggregate cost basis of approximately $62.1 million and an aggregate fair value of approximately $61.3 million, resulting in an impairment of $0.8 million, with such impairment considered to be other-than-temporary due to credit indicators. During the nine months ended September 30, 2018, the Partnership determined, based on its review, that there were 122 securities with an aggregate cost basis of approximately $227.9 million and an aggregate fair value of approximately $215.9 million, resulting in an impairment of $12.0 million, with such impairment considered to be other-than-temporary due to credit indicators. Accordingly, the Partnership adjusted the cost basis of these assets to their current value and offset this change against deferred merchandise trust revenue. During the three and nine months ended September 30, 2017, the Partnership determined that there were no other than temporary impairments to the investment portfolio in the merchandise trusts. |
PERPETUAL CARE TRUSTS
PERPETUAL CARE TRUSTS | 9 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
PERPETUAL CARE TRUSTS | 8. PERPETUAL CARE TRUSTS At September 30, 2018 and December 31, 2017, the Partnership’s perpetual care trusts consisted of investments in debt and equity marketable securities and cash equivalents, both directly as well as through mutual and investment funds. All of these investments are carried at fair value. All of the investments subject to the fair value hierarchy are considered either Level 1 or Level 2 assets pursuant to the three-level hierarchy described in Note 13. There were no Level 3 assets. The perpetual care trusts are VIEs of which the Partnership is deemed the primary beneficiary. A reconciliation of the Partnership’s perpetual care trust activities for the nine months ended September 30, 2018 and 2017 is presented below (in thousands): Nine Months Ended 2018 2017 Balance, beginning of period $ 339,928 $ 333,780 Contributions 10,795 7,156 Distributions (13,790 ) (13,449 ) Interest and dividends 17,416 12,935 Capital gain distributions 612 403 Realized gains and losses 353 1,371 Other than temporary impairment (7,449 ) — Taxes (292 ) (420 ) Fees (4,087 ) (1,095 ) Unrealized change in fair value 1,536 (2,070 ) Balance, end of period $ 345,022 $ 338,611 During the nine months ended September 30, 2018 and 2017, purchases of investments were $56.4 million and $82.8 million, respectively, while sales, maturities and paydowns of investments were $49.4 million and $68.7 million, respectively. Cash flows from perpetual care trust related contracts are presented as operating cash flows in our condensed consolidated statement of cash flows. The cost and market value associated with the assets held in the perpetual care trusts as of September 30, 2018 and December 31, 2017 were as follows (in thousands): September 30, 2018 Fair Value Cost Gross Gross Fair Short-term investments 1 $ 10,452 $ — $ — $ 10,452 Fixed maturities: U.S. governmental securities 2 962 3 (133 ) 832 Corporate debt securities 2 5,029 97 (327 ) 4,799 Total fixed maturities 5,991 100 (460 ) 5,631 Mutual funds - debt securities 1 122,939 137 (1,476 ) 121,600 Mutual funds - equity securities 1 22,836 1,605 (105 ) 24,336 Other investment funds (1) 156,247 5,455 (2,830 ) 158,872 Equity securities 1 21,657 2,613 (169 ) 24,101 Other invested assets 2 26 4 — 30 Total investments $ 340,148 $ 9,914 $ (5,040 ) $ 345,022 (1) Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have a redemption period ranging from 1 to 30 days, and private credit funds, which have lockup periods ranging from two to eight years with three potential one-year December 31, 2017 Fair Value Cost Gross Gross Fair Short-term investments 1 $ 9,456 $ — $ — $ 9,456 Fixed maturities: U.S. governmental securities 2 506 4 (46 ) 464 Corporate debt securities 2 5,365 148 (191 ) 5,322 Total fixed maturities 5,871 152 (237 ) 5,786 Mutual funds - debt securities 1 141,511 1,974 (712 ) 142,773 Mutual funds - equity securities 1 32,707 1,757 (1,771 ) 32,693 Other investment funds (1) 124,722 2,630 (533 ) 126,819 Equity securities 1 22,076 1,648 (1,570 ) 22,154 Other invested assets 2 247 — — 247 Total investments $ 336,590 $ 8,161 $ (4,823 ) $ 339,928 (1) Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have a redemption period ranging from 1 to 90 days, and private credit funds, which have lockup periods ranging from four to ten years with three potential one-year The contractual maturities of debt securities as of September 30, 2018 were as follows (in thousands): Less than 1 year through 6 years through More than U.S. governmental securities $ — $ 412 $ 387 $ 33 Corporate debt securities 392 4,032 284 91 Total fixed maturities $ 392 $ 4,444 $ 671 $ 124 Temporary Declines in Fair Value The Partnership evaluates declines in fair value below cost of each individual asset held in the perpetual care trusts on a quarterly basis. An aging of unrealized losses on the Partnership’s investments in debt and equity securities within the perpetual care trusts as of September 30, 2018 and December 31, 2017 is presented below (in thousands): Less than 12 months 12 months or more Total September 30, 2018 Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities: U.S. governmental securities $ 2 $ — $ 779 $ 133 $ 781 $ 133 Corporate debt securities 464 11 2,901 316 3,365 327 Total fixed maturities 466 11 3,680 449 4,146 460 Mutual funds - debt securities 67,840 1,255 3,006 221 70,846 1,476 Mutual funds - equity securities 1,438 105 — — 1,438 105 Other investment funds 45,598 2,830 — — 45,598 2,830 Equity securities 3,519 124 548 45 4,067 169 Total $ 118,861 $ 4,325 $ 7,234 $ 715 $ 126,095 $ 5,040 Less than 12 months 12 months or more Total December 31, 2017 Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities: U.S. governmental securities $ — $ — $ 399 $ 46 $ 399 $ 46 Corporate debt securities 994 20 2,271 171 3,265 191 Total fixed maturities 994 20 2,670 217 3,664 237 Mutual funds - debt securities 37,090 289 12,793 423 49,883 712 Mutual funds - equity securities 16,668 1,754 36 17 16,704 1,771 Other investment funds 42,606 533 — — 42,606 533 Equity securities 9,516 1,510 112 60 9,628 1,570 Total $ 106,874 $ 4,106 $ 15,611 $ 717 $ 122,485 $ 4,823 For all securities in an unrealized loss position, the Partnership evaluated the severity of the impairment and length of time that a security has been in a loss position and concluded the decline in fair value below the asset’s cost was temporary in nature. In addition, the Partnership is not aware of any circumstances that would prevent the future market value recovery for these securities. Other-Than-Temporary Impairment of Trust Assets The Partnership assesses its perpetual care trust assets for other-than-temporary declines in fair value on a quarterly basis. During the three months ended September 30, 2018, the Partnership determined that there were 49 securities with an aggregate cost basis of approximately $40.0 million and an aggregate fair value of approximately $39.4 million, resulting in an impairment of $0.6 million, with such impairment considered to be other-than-temporary. During the nine months ended September 30, 2018, the Partnership determined that there were 116 securities with an aggregate cost basis of approximately $158.0 million and an aggregate fair value of approximately $150.6 million, resulting in an impairment of $7.4 million, with such impairment considered to be other-than-temporary. Accordingly, the Partnership adjusted the cost basis of these assets to their current value and offset this change against the liability for perpetual care trust corpus. During the three and nine months ended September 30, 2017, the Partnership determined that there were no other-than-temporary impairments to the investment portfolio in the perpetual care trusts. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | 9. LONG-TERM DEBT Total debt consisted of the following at the dates indicated (in thousands): September 30, December 31, Credit facility $ 150,034 $ 153,423 7.875% Senior Notes, due June 2021 173,480 173,098 Notes payable - acquisition debt 146 304 Notes payable - acquisition non-competes 391 378 Insurance and vehicle financing 1,150 1,280 Less deferred financing costs, net of accumulated amortization (9,914 ) (9,788 ) Total debt 315,287 318,695 Less current maturities (1,184 ) (1,002 ) Total long-term debt $ 314,103 $ 317,693 Credit Facility On August 4, 2016, our 100% owned subsidiary, StoneMor Operating LLC (the “Operating Company”) entered into a Credit Agreement (the “Original Credit Agreement”) among each of the Subsidiaries of the Operating Company (together with the Operating Company, “Borrowers”), the Lenders identified therein, Capital One, National Association (“Capital One”), as Administrative Agent, Issuing Bank and Swingline Lender, Citizens Bank N.A., as Syndication Agent, and TD Bank, N.A. and Raymond James Bank, N.A., as Co-Documentation On March 15, 2017, the Borrowers, Capital One, as Administrative Agent and acting in accordance with the written consent of the Required Lenders, entered into the First Amendment to Credit Agreement. Those parties subsequently entered into a Second Amendment and Limited Waiver on July 26, 2017, a Third Amendment and Limited Waiver effective as of August 15, 2017, a Fourth Amendment to Credit Agreement dated September 29, 2017, a Fifth Amendment to Credit Agreement dated as of December 22, 2017 but effective as of September 29, 2017. We refer to the Original Credit Agreement, as so amended, as the “Original Amended Agreement.” On June 12, 2018 and July 13, 2018, those parties also entered into a Sixth Amendment and Waiver to Credit Agreement and a Seventh Amendment and Waiver, to the Credit Agreement, respectively (collectively, the “2018 Amendments”). On February 4, 2019, the Partnership, the Borrowers, Capital One, as Administrative Agent and the Lenders entered into an Eighth Amendment and Waiver to Credit Agreement (the “Eighth Amendment”). See Note 17 Subsequent Events for a detailed discussion of the changes to the Original Amended Agreement effected by the 2018 Amendments and the Eighth Amendment. Prior to the 2018 Amendments, the Original Amended Agreement provided for up to $200.0 million initial aggregate amount of Revolving Commitments, which could have been increased, from time to time, in minimum increments of $5.0 million so long as the aggregate amount of such increases does not exceed $100.0 million. Prior to the Eighth Amendment, the Operating Company could also request the issuance of Letters of Credit for up to $15.0 million in the aggregate, of which there were $9.4 million outstanding at September 30, 2018 and $7.5 million outstanding at December 31, 2017. Prior to the Eighth Amendment, the Maturity Date under the Original Amended Agreement was the earlier of (i) August 4, 2021 and (ii) the date that is six months prior to the earliest scheduled maturity date of any outstanding Permitted Unsecured Indebtedness (at present, such date is December 1, 2020, which is six months prior to the June 1, 2021 maturity date of outstanding 7.875% senior notes). As of September 30, 2018, the outstanding amount of borrowings under the Original Amended Agreement was $150.0 million, which was used to pay down outstanding obligations under the Partnership’s prior credit agreement, to pay fees, costs and expenses related to the New Agreements and to fund working capital needs. Prior to the Eighth Amendment, proceeds of the Loans under the Original Amended Agreement could be used to finance the working capital needs and for other general corporate purposes of the Borrowers and Guarantors, including acquisitions and distributions permitted under the Original Amended Agreement. Each Borrowing under the Original Amended Agreement is comprised of Base Rate Loans or Eurodollar Loans. The Loans comprising each Base Rate Borrowing (including each Swingline Loan) bear interest at the Base Rate plus the Applicable Rate, and the Loans comprising each Eurodollar Borrowing bear interest at the Eurodollar Rate plus the Applicable Rate. Prior to the 2018 Amendments and the Eighth Amendment, the Applicable Rate was determined based on the Consolidated Leverage Ratio of the Partnership and its Subsidiaries and ranged from 1.75% to 3.75% for Eurodollar Rate Loans, 0.75% to 2.75% for Base Rate Loans and between 0.30% and 0.50% for unused commitment fee. As of September 30, 2018, the Applicable Rate for Eurodollar Rate Loans was 4.25% and for Base Rate Loans was 3.25%. Prior to the Eighth Amendment, the Original Amended Agreement also required the Borrowers to pay a quarterly unused commitment fee, which accrued at the Applicable Rate on the amount by which the commitments under the Original Amended Agreement exceeded the usage of such commitments, and which is included within interest expense on the Partnership’s condensed consolidated statements of operations. On September 30, 2018, the weighted average interest rate on outstanding borrowings under the Original Amended Agreement was 6.7%. Prior to the 2018 Amendments and the Eighth Amendment, the Original Amended Agreement contained financial covenants, pursuant to which the Partnership will not permit: • the ratio of Consolidated Funded Indebtedness to Consolidated EBITDA, or the Consolidated Leverage Ratio, as of the last day of any fiscal quarter, commencing on September 30, 2016, determined for the period of four consecutive fiscal quarters ending on such date (the “Measurement Period”), to be greater than 4.25 to 1.00 for periods ended September 30, 2018 through December 31, 2018, and 4:00 to 1:00 for periods thereafter, which could be increased after January 1, 2019 to 4:25 to 1:00 (in case of a Designated Acquisition made subsequent to the last day of the immediately preceding fiscal quarter) as of the last day of the fiscal quarter in which such Designated Acquisition occurs and as of the last day of the immediately succeeding fiscal quarter; • the ratio of Consolidated EBITDA to Consolidated Debt Service, or the Consolidated Debt Service Coverage Ratio, as of the last day of any fiscal quarter, commencing on September 30, 2016 to be less than 2:50 to 1:00 for any Measurement Period; and • the ratio of Consolidated EBITDA (reduced by the amount of maintenance and growth capital expenditures not financed with debt other than Revolving Commitments taxes and restricted payments including distributions paid in cash) to Consolidated Fixed Charges, or the Consolidated Fixed Charge Coverage Ratio, as of the last day of any fiscal quarter, commencing on December 31, 2017, to be less than 1.20 to 1.00 for any Measurement Period. Additional covenants include customary limitations, subject to certain exceptions, on, among others: (i) the incurrence of Indebtedness; (ii) granting of Liens; (iii) fundamental changes and dispositions; (iv) investments, loans, advances, guarantees and acquisitions; (v) swap agreements; (vi) transactions with Affiliates; (vii) Restricted Payments; (viii) restrictive agreements; (ix) amendments to organizational documents and indebtedness; (x) prepayment of indebtedness; and (xi) Sale and Leaseback Transactions. The Borrowers’ obligations under the Original Amended Agreement are guaranteed by the Partnership and the Borrowers. Pursuant to the Guaranty Agreement, the Borrowers’ obligations under the Original Amended Agreement are secured by a first priority lien and security interest (subject to permitted liens and security interests) in substantially all of the Partnership’s and Borrowers’ assets, whether then owned or thereafter acquired, excluding certain excluded assets, which include, among others: (i) Trust Accounts, certain proceeds required by law to be placed into such Trust Accounts and funds held in such Trust Accounts; and (ii) Excluded Real Property, including owned and leased real property that may not be pledged as a matter of law. The Partnership was not in compliance with the facility’s maximum Consolidated Leverage Ratio for the periods ended March 31, 2018 and December 31, 2017, which constituted defaults that the lenders agreed to waive pursuant to the Sixth Amendment and Waiver. In addition, the Partnership’s failure to timely file its 2017 Annual Report on Form 10-K 10-Q 10-K 10-Q 10-K 10-Q Senior Notes On May 28, 2013, the Partnership issued $175.0 million aggregate principal amount of 7.875% Senior Notes due 2021 (the “Senior Notes”). The Partnership pays 7.875% interest per annum on the principal amount of the Senior Notes, payable in cash semi-annually in arrears on June 1 and December 1 of each year. The net proceeds from the offering of the Senior Notes were used to retire a $150.0 million aggregate principal amount of 10.25% Senior Notes due 2017 and the remaining proceeds were used for general corporate purposes. The Senior Notes were issued at 97.832% of par resulting in gross proceeds of $171.2 million with an original issue discount of approximately $3.8 million. The Partnership incurred debt issuance costs and fees of approximately $4.6 million. These costs and fees are deferred and are being amortized over the life of the Senior Notes. The Senior Notes mature on June 1, 2021. The Partnership may redeem the Senior Notes at any time, in whole or in part, at the redemption prices (expressed as percentages of the principal amount) set forth below, together with accrued and unpaid interest, if any, to the redemption date, if redeemed during the 12-month Year Percentage 2018 101.969 % 2019 and thereafter 100.000 % Subject to certain exceptions, upon the occurrence of a Change of Control (as defined in the Indenture), each holder of the Senior Notes will have the right to require the Partnership to purchase that holder’s Senior Notes for a cash price equal to 101% of the principal amounts to be purchased, plus accrued and unpaid interest. The Senior Notes are jointly and severally guaranteed by certain of the Partnership’s subsidiaries. The Indenture governing the Senior Notes contains covenants, including limitations of the Partnership’s ability to incur certain additional indebtedness and liens, make certain dividends, distributions, redemptions or investments, enter into certain transactions with affiliates, make certain asset sales, and engage in certain mergers, consolidations or sales of all or substantially all of the Partnership’s assets, among other items. As of September 30, 2018, the Partnership was in compliance with these covenants. |
DEFERRED REVENUES AND COSTS
DEFERRED REVENUES AND COSTS | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
DEFERRED REVENUES AND COSTS | 10. DEFERRED REVENUES AND COSTS The Partnership defers revenues and all direct costs associated with the sale of pre-need pre-need pre-need Deferred revenues and related costs consisted of the following at the dates indicated (in thousands): September 30, December 31, Deferred contract revenues (1) $ 835,833 $ 808,549 Deferred merchandise trust investment income 106,389 105,354 Deferred merchandise trust unrealized gains (losses) 1,583 (1,277 ) Deferred revenues $ 943,805 $ 912,626 (1) Upon the adoption of ASC 606, the Partnership eliminated the allowance for cancellation of these performance obligations. The activity in deferred selling and obtaining costs was as follows (in thousands): September 30, Deferred selling and obtaining costs, beginning of period $ 126,398 Cumulative effect of accounting change (18,557 ) Change in deferred selling and obtaining costs 4,780 Deferred selling and obtaining costs, end of period $ 112,621 For the three and nine months ended September 30, 2018, the Partnership recognized $24.6 million and $64.6 million, respectively, of the deferred revenue balance at December 31, 2017 as revenue. Also during the three and nine months ended September 30, 2018, the Partnership recognized 0.6 million and $4.8 million, respectively, from deferred incremental direct selling costs. The components of Deferred revenues, net in the Partnership’s unaudited Condensed Consolidated Balance Sheet at September 30, 2018 and December 31, 2017 were as follows (in thousands): September 30, December 31, Deferred revenue 967,227 912,626 Amounts due from customers for unfulfilled performance obligations on cancellable pre-need (1) (23,422 ) — Deferred revenue, net $ 943,805 912,626 (1) Prior to the adoption of “ Revenue from Contracts with Customers” pre-need The Partnership cannot estimate the period when it expects its remaining performance obligations will be recognized because certain performance obligations will only be satisfied at the time of death. The Partnership expects to service 55% of its deferred revenue in the first 4-5 |
LONG-TERM INCENTIVE AND RETIREM
LONG-TERM INCENTIVE AND RETIREMENT PLANS | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
LONG-TERM INCENTIVE AND RETIREMENT PLANS | 11. LONG-TERM INCENTIVE AND RETIREMENT PLANS On March 19, 2018, an aggregate of 236,234 phantom units were awarded under the Partnership’s 2014 LTIP, of which an aggregate of 127,229 were subject to time-based vesting and an aggregate of 109,005 were subject to performance-based vesting. Also, on March 19, 2018, 14,556 restricted units were awarded to an officer of the General Partner pursuant to his employment agreement, which units vest in 24 equal monthly installments commencing one month after the grant date. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES Legal The Partnership is currently subject to class or collective actions under the Securities Exchange Act of 1934 and for related state law claims that certain of the Partnership’s officers and directors breached their fiduciary duty to the Partnership and its unitholders. The Partnership could also become subject to additional claims and legal proceedings relating to the factual allegations made in these actions. While management cannot reasonably estimate the potential exposure in these matters at this time, if the Partnership does not prevail in any such proceedings, the Partnership could be required to pay substantial damages or settlement costs, subject to certain insurance coverages. Management has determined that, based on the status of the claims and legal proceedings against the Partnership, the amount of the potential losses cannot be reasonably estimated at this time. These actions are summarized below. • Anderson v. StoneMor Partners, LP, et al., No. 2:16-cv-06111 2:16-cv-06275, • Bunim v. Miller, et al., No. 2:17-cv-00519-ER, non-GAAP • Muth v. StoneMor G.P. LLC, et al., December Term, 2016, No. 01196 and Binder v. StoneMor G.P. LLC, et al., January Term, 2017, No. 04872, both pending in the Court of Common Pleas for Philadelphia County, Pennsylvania, and filed on December 20, 2016 and February 3, 2017, respectively. In these cases, the plaintiffs brought, derivatively on behalf of the Partnership, claims that StoneMor GP’s officers and directors aided and abetted in breaches of StoneMor GP’s purported fiduciary duties by, among other things and in general, allegedly making misrepresentations through the use of non-GAAP The Philadelphia Regional Office of the Securities and Exchange Commission, Enforcement Division, is continuing its investigation of the Partnership as to whether violations of federal securities laws have occurred. The investigation relates to, among other things, the Partnership’s prior restatements, financial statements, internal control over financial reporting, public disclosures, use of non-GAAP The Partnership is party to other legal proceedings in the ordinary course of its business but does not expect the outcome of any such proceedings, individually or in the aggregate, to have a material adverse effect on its financial position, results of operations or cash flows. The Partnership carries insurance with coverage and coverage limits that it believes to be customary in the cemetery and funeral home industry. Although there can be no assurance that such insurance will be sufficient to protect the Partnership against all contingencies, management believes that the insurance protection is reasonable in view of the nature and scope of the operations. Other In connection with the Partnership’s lease and management agreements with the Archdiocese of Philadelphia, it has committed to pay aggregate fixed rent of $36.0 million in the following amounts: Lease Years 1-5 None Lease Years 6-20 $1,000,000 per Lease Year Lease Years 21-25 $1,200,000 per Lease Year Lease Years 26-35 $1,500,000 per Lease Year Lease Years 36-60 None The fixed rent for lease years 6 through 11, an aggregate of $6.0 million, is deferred. If, prior to May 31, 2024, the Archdiocese terminates the agreements pursuant to a lease year 11 termination or the Partnership terminates the agreements as a result of a default by the Archdiocese, the Partnership is entitled to retain the deferred fixed rent. If the agreements are not terminated, the deferred fixed rent will become due and payable on or before June 30, 2024. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 13. FAIR VALUE OF FINANCIAL INSTRUMENTS Management has established a hierarchy to measure the Partnership’s financial instruments at fair value, which requires it to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs represent market data obtained from independent sources; whereas, unobservable inputs reflect the Partnership’s own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. The hierarchy defines three levels of inputs that may be used to measure fair value: Level 1 - Unadjusted quoted market prices in active markets for identical, unrestricted assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the same contractual term of the asset or liability. Level 3 - Unobservable inputs that the entity’s own assumptions about the assumptions market participants would use in the pricing of the asset or liability and are consequently not based on market activity but rather through particular valuation techniques. The Partnership’s current assets and liabilities and customer receivables on its condensed consolidated balance sheets are similar to cash basis financial instruments, and their estimated fair values approximate their carrying values due to their short-term nature and thus are categorized as Level 1. The Partnership’s merchandise and perpetual care trusts consist of investments in debt and equity marketable securities and cash equivalents, are carried at fair value, and are considered either Level 1 or Level 2 (see Note 7 and Note 8). Where quoted prices are available in active markets, securities are classified as Level 1 investments pursuant to the fair value measurement hierarchy. Where quoted market prices are not available for the specific security, fair values are estimated by using either quoted prices of securities with similar characteristics or an income approach fair value model with observable inputs that include a combination of interest rates, yield curves, credit risks, prepayment speeds, rating and tax-exempt The Partnership’s other financial instruments as of September 30, 2018 and December 31, 2017 consist of its Senior Notes and outstanding borrowings under its revolving credit facility (see Note 9). The estimated fair values of the Partnership’s Senior Notes as of September 30, 2018 and December 31, 2017 were $164.1 million and $173.3 million, respectively, based on trades made on those dates, compared with the carrying amounts of $173.5 million and $173.1 million, respectively. As of September 30, 2018 and December 31, 2017, the carrying values of outstanding borrowings under the Partnership’s revolving credit facility (see Note 9), which bears interest at variable interest rates with maturities of 90 days or less, approximated their estimated fair values. The Senior Notes and the credit facility are valued using Level 2 inputs. The Partnership may be required to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with GAAP from time to time. These adjustments to fair value usually result from the application of lower of cost or fair value accounting on assets held for sale. The lower of cost or estimated fair value of assets held for sale was $1.1 million with an original net book value of $2.2 million prior to adjustments of $0.2 million for the nine months ended September 30, 2018 and $0.9 million for the year ended December 31, 2017. Assets held for sale are valued at lower of cost or estimated fair value based on broker comps and estimates at the time the assets are classified as held for sale. These assets held for sale are classified as Level 3 pursuant to the fair value measurement hierarchy. |
SUPPLEMENTAL CONDENSED CONSOLID
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION | 14. SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION The Partnership’s Senior Notes are guaranteed by StoneMor Operating LLC and its 100% owned subsidiaries, other than the co-issuer, co-issuers non-guarantor non-guarantor The financial information presented below reflects the Partnership’s standalone accounts, the combined accounts of the subsidiary co-issuer, non-guarantor CONDENSED CONSOLIDATING BALANCE SHEETS September 30, 2018 Parent Subsidiary Guarantor Non- Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ — $ 6,142 $ 1,901 $ — $ 8,043 Assets held for sale — — 1,083 — — 1,083 Other current assets — 3,962 72,932 15,619 — 92,513 Total current assets — 3,962 80,157 17,520 — 101,639 Long-term accounts receivable — 3,139 74,408 12,218 — 89,765 Cemetery and funeral home property and equipment — 751 412,824 33,823 — 447,398 Merchandise trusts — — — 520,027 — 520,027 Perpetual care trusts — — — 345,022 — 345,022 Deferred selling and obtaining costs — 5,511 88,666 18,444 — 112,621 Goodwill and intangible assets — — 25,872 60,895 — 86,767 Other assets — — 20,660 3,984 — 24,644 Investments in and amounts due from affiliates eliminated upon consolidation 81,861 19,436 566,392 — (667,689 ) — Total assets $ 81,861 $ 32,799 $ 1,268,979 $ 1,011,933 $ (667,689 ) $ 1,727,883 Liabilities and Partners’ Capital Current liabilities $ — $ 177 $ 61,437 $ 1,373 $ — $ 62,987 Long-term debt, net of deferred financing costs 68,401 105,079 140,623 — — 314,103 Deferred revenues — 33,273 795,945 114,587 — 943,805 Perpetual care trust corpus — — — 345,022 — 345,022 Other long-term liabilities — — 33,265 15,241 — 48,506 Due to affiliates — — 173,480 574,305 (747,785 ) — Total liabilities 68,401 138,529 1,204,750 1,050,528 (747,785 ) 1,714,423 Partners’ capital 13,460 (105,730 ) 64,229 (38,595 ) 80,096 13,460 Total liabilities and partners’ capital $ 81,861 $ 32,799 $ 1,268,979 $ 1,011,933 $ (667,689 ) $ 1,727,883 December 31, 2017 (1) Parent Subsidiary Guarantor Non- Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ — $ 4,216 $ 2,605 $ — $ 6,821 Assets held for sale 1,016 1,016 Other current assets — 3,882 83,901 17,366 — 105,149 Total current assets — 3,882 89,133 19,971 — 112,986 Long-term accounts receivable — 2,179 89,275 14,481 — 105,935 Cemetery and funeral home property and equipment — 738 411,936 34,820 — 447,494 Merchandise trusts — — — 515,456 — 515,456 Perpetual care trusts — — — 339,928 — 339,928 Deferred selling and obtaining costs — 6,171 98,639 21,588 — 126,398 Goodwill and intangible assets — — 26,347 61,759 — 88,106 Other assets — — 16,995 2,784 — 19,779 Investments in and amounts due from affiliates eliminated upon consolidation 159,946 82,836 556,783 — (799,565 ) — Total assets $ 159,946 $ 95,806 $ 1,289,108 $ 1,010,787 $ (799,565 ) $ 1,756,082 Liabilities and Partners’ Capital Current liabilities $ — $ 72 $ 44,380 $ 1,354 $ — $ 45,806 Long-term debt, net of deferred financing costs 68,250 104,848 144,595 — — 317,693 Deferred revenues — 33,469 773,516 105,641 — 912,626 Perpetual care trust corpus — — — 339,928 — 339,928 Other long-term liabilities — — 34,149 14,184 — 48,333 Due to affiliates — — 173,098 576,025 (749,123 ) — Total liabilities 68,250 138,389 1,169,738 1,037,132 (749,123 ) 1,664,386 Partners’ capital 91,696 (42,583 ) 119,370 (26,345 ) (50,442 ) 91,696 Total liabilities and partners’ capital $ 159,946 $ 95,806 $ 1,289,108 $ 1,010,787 $ (799,565 ) $ 1,756,082 (1) The information at December 31, 2017 has not been adjusted for the impact of the Partnership’s adoption of ASC 606 on January 1, 2018. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended September 30, 2018 Parent Subsidiary Guarantor Non- Eliminations Consolidated Total revenues $ — $ 1,513 $ 61,254 $ 12,116 $ (1,698 ) $ 73,185 Total costs and expenses — (3,192 ) (68,979 ) (12,728 ) 1,698 (83,201 ) Other income (loss) — — 702 — — 702 Net loss from equity investment in subsidiaries (15,867 ) (13,280 ) — — 29,147 — Interest expense (1,358 ) (2,087 ) (3,935 ) (258 ) — (7,638 ) Net income (loss) from continuing operations before income taxes (17,225 ) (17,046 ) (10,958 ) (870 ) 29,147 (16,952 ) Income tax benefit (expense) — — (273 ) — — (273 ) Net income (loss) $ (17,225 ) $ (17,046 ) $ (11,231 ) $ (870 ) $ 29,147 $ (17,225 ) Three Months Ended September 30, 2017 (1) Parent Subsidiary Guarantor Non-Guarantor Eliminations Consolidated Total revenues $ — $ 1,842 $ 69,423 $ 14,648 $ (1,879 ) $ 84,034 Total costs and expenses — (2,883 ) (71,234 ) (14,144 ) 1,879 (86,382 ) Other income (loss) — — 338 — — 338 Net loss from equity investment in subsidiaries (8,218 ) (8,674 ) — — 16,892 — Interest expense (1,358 ) (2,087 ) (3,264 ) (235 ) — (6,944 ) Net income (loss) from continuing operations before income taxes (9,576 ) (11,802 ) (4,737 ) 269 16,892 (8,954 ) Income tax benefit (expense) — — (622 ) — — (622 ) Net income (loss) $ (9,576 ) $ (11,802 ) $ (5,359 ) $ 269 $ 16,892 $ (9,576 ) (1) The information for the three months ended September 30, 2017 has not been adjusted for the impact of the Partnership’s adoption of ASC 606 on January 1, 2018. Nine Months Ended September 30, 2018 Parent Subsidiary Guarantor Non- Eliminations Consolidated Total revenues $ — $ 4,563 $ 196,638 $ 38,390 $ (6,890 ) $ 232,701 Total costs and expenses — (10,278 ) (214,804 ) (41,289 ) 6,890 (259,481 ) Other loss — — (4,503 ) — — (4,503 ) Net loss from equity investment in subsidiaries (48,090 ) (40,382 ) — — 88,472 — Interest expense (4,075 ) (6,261 ) (11,755 ) (767 ) — (22,858 ) Net income (loss) from continuing operations before income taxes (52,165 ) (52,358 ) (34,424 ) (3,666 ) 88,472 (54,141 ) Income tax benefit — — 1,976 — — 1,976 Net income (loss) $ (52,165 ) $ (52,358 ) $ (32,448 ) $ (3,666 ) $ 88,472 $ (52,165 ) Nine Months Ended September 30, 2017 (1) Parent Subsidiary Guarantor Non- Eliminations Consolidated Total revenues $ — $ 5,381 $ 209,331 $ 44,785 $ (6,565 ) $ 252,932 Total costs and expenses — (10,090 ) (214,855 ) (41,062 ) 6,565 (259,442 ) Other loss — — (733 ) — — (733 ) Net loss from equity investment in subsidiaries (25,644 ) (27,135 ) — — 52,779 — Interest expense (4,075 ) (6,261 ) (9,366 ) (689 ) — (20,391 ) Net income (loss) from continuing operations before income taxes (29,719 ) (38,105 ) (15,623 ) 3,034 52,779 (27,634 ) Income tax expense — — (2,085 ) — — (2,085 ) Net income (loss) $ (29,719 ) $ (38,105 ) $ (17,708 ) $ 3,034 $ 52,779 $ (29,719 ) (1) The information for the nine months ended September 30, 2017 has not been adjusted for the impact of the Partnership’s adoption of ASC 606 on January 1, 2018. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Nine Months Ended September 30, 2018 Parent Subsidiary Guarantor Non- Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ 363 $ 29,462 $ (78 ) $ (10,336 ) $ 19,411 Cash Flows From Investing Activities: Cash paid for acquisitions and capital expenditures — (363 ) (9,888 ) (626 ) — (10,877 ) Net cash used in investing activities — (363 ) (9,888 ) (626 ) — (10,877 ) Cash Flows From Financing Activities: Cash distributions — — — — — — Payments to affiliates — — (10,336 ) — 10,336 — Net borrowings of debt — — (4,044 ) — — (4,044 ) Other financing activities — — (3,268 ) — — (3,268 ) Net cash provided by (used in) financing activities — — (17,648 ) — 10,336 (7,312 ) Net increase (decrease) in cash and cash equivalents — — 1,926 (704 ) — 1,222 Cash and cash equivalents - Beginning of period — — 4,216 2,605 6,821 Cash and cash equivalents - End of period $ — $ — $ 6,142 $ 1,901 $ — $ 8,043 Nine Months Ended September 30, 2017 (1) Parent Subsidiary Guarantor Non- Eliminations Consolidated Net cash provided by (used in) operating activities $ 24,545 $ 57 $ 34,863 $ 117 $ (34,881 ) $ 24,701 Cash Flows From Investing Activities: Cash paid for acquisitions and capital expenditures — (57 ) (6,105 ) (696 ) — (6,858 ) Net cash used in investing activities — (57 ) (6,105 ) (696 ) — (6,858 ) Cash Flows From Financing Activities: Cash distributions (24,545 ) — — — — (24,545 ) Payments to affiliates — — (34,881 ) — 34,881 — Net borrowings of debt — — 4,165 — — 4,165 Proceeds from issuance of common units — — — — — — Other financing activities — — (1,573 ) — — (1,573 ) Net cash provided by (used in) financing activities (24,545 ) — (32,289 ) — 34,881 (21,953 ) Net increase (decrease) in cash and cash equivalents — — (3,531 ) (579 ) — (4,110 ) Cash and cash equivalents - Beginning of period — — 9,145 3,425 — 12,570 Cash and cash equivalents - End of period $ — $ — $ 5,614 $ 2,846 $ — $ 8,460 (1) The information for the nine months ended September 30, 2017 has not been adjusted for the impact of the Partnership’s adoption of ASC 606 on January 1, 2018. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 15. SEGMENT INFORMATION The Partnership’s operations include two reportable operating segments, Cemetery Operations and Funeral Home Operations. These operating segments reflect the way the Partnership’s Chief Operating Decision Maker manages its operations and makes business decisions. Operating segment data for and as of the periods indicated were as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 (1) 2018 2017 (1) STATEMENT OF OPERATIONS DATA: Cemetery Operations: Revenues $ 61,405 $ 69,543 $ 191,328 $ 205,816 Operating costs and expenses (57,440 ) (58,728 ) (176,925 ) (172,903 ) Depreciation and amortization (1,858 ) (2,175 ) (6,043 ) (6,734 ) Segment income $ 2,107 $ 8,640 $ 8,360 $ 26,179 Funeral Home Operations: Revenues $ 11,780 $ 14,491 $ 41,373 $ 47,116 Operating costs and expenses (10,148 ) (12,581 ) (33,835 ) (37,449 ) Depreciation and amortization (652 ) (753 ) (2,066 ) (2,369 ) Segment income $ 980 $ 1,157 $ 5,472 $ 7,298 Reconciliation of segment income to net loss: Cemetery Operations $ 2,107 $ 8,640 $ 8,360 $ 26,179 Funeral Home Operations 980 1,157 5,472 7,298 Total segment income 3,087 9,797 13,832 33,477 Corporate overhead (12,876 ) (11,887 ) (39,868 ) (39,058 ) Corporate depreciation and amortization (227 ) (258 ) (744 ) (929 ) Other gains (losses), net 702 338 (4,503 ) (733 ) Interest expense (7,638 ) (6,944 ) (22,858 ) (20,391 ) Income tax benefit (expense) (273 ) (622 ) 1,976 (2,085 ) Net loss $ (17,225 ) $ (9,576 ) $ (52,165 ) $ (29,719 ) CASH FLOW DATA: Capital expenditures: Cemetery Operations $ 2,105 $ 4,525 $ 9,378 $ 7,501 Funeral Home Operations 246 76 465 203 Corporate 187 48 321 256 Total capital expenditures $ 2,538 $ 4,649 $ 10,164 $ 7,960 BALANCE SHEET DATA September 30, December 31, Assets: Cemetery Operations $ 1,570,110 $ 1,594,091 Funeral Home Operations 141,350 152,934 Corporate 16,423 9,057 Total assets $ 1,727,883 $ 1,756,082 Goodwill: Cemetery Operations $ 24,862 $ 24,862 Funeral Home Operations — — Total goodwill $ 24,862 $ 24,862 (1) The results for the three and nine months ended September 30, 2017 have not been adjusted for the impact of the Partnership’s adoption of ASC 606 on January 1, 2018. |
SUPPLEMENTAL CONDENSED CONSOL_2
SUPPLEMENTAL CONDENSED CONSOLIDATED CASH FLOW INFORMATION | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CONDENSED CONSOLIDATED CASH FLOW INFORMATION | 16. SUPPLEMENTAL CONDENSED CONSOLIDATED CASH FLOW INFORMATION The tables presented below provide supplemental information to the condensed consolidated statements of cash flows regarding contract origination and maturity activity included in the pertinent captions on the Partnership’s condensed consolidated statements of cash flows (in thousands): Nine Months Ended 2018 2017 Pre-need/at-need $ (95,267 ) $ (78,419 ) Cash receipts from sales on credit (post-origination) 100,841 69,843 Changes in Accounts receivable, net of allowance $ 5,574 $ (8,576 ) Deferrals: Cash receipts from customer deposits at origination, net of refunds $ 114,132 $ 113,177 Withdrawals of realized income from merchandise trusts during the period 13,815 10,592 Pre-need/at-need 95,267 78,419 Undistributed merchandise trust investment earnings, net 357 (32,299 ) Recognition: Merchandise trust investment income, net withdrawn as of end of period (7,211 ) (7,851 ) Recognized maturities of customer contracts collected as of end of period (137,265 ) (148,630 ) Recognized maturities of customer contracts uncollected as of end of period (38,734 ) (25,527 ) Changes in Deferred revenues $ 40,361 $ (12,119 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS Credit Agreements On June 12, 2018, StoneMor Operating LLC (the “Operating Company”), a wholly-owned subsidiary of the Partnership, the Subsidiaries (as defined in the Amended Credit Agreement) of the Operating Company (together with the Operating Company, “Borrowers”), the Lenders party thereto and Capital One, National Association (“Capital One”), as Administrative Agent (in such capacity, the “Administrative Agent”), entered into the Sixth Amendment and Waiver to Credit Agreement (the “Sixth Amendment”) which further amended the Credit Agreement dated August 4, 2016 (as previously amended by that certain First Amendment to Credit Agreement dated as of March 15, 2017, Second Amendment and Limited Waiver dated July 26, 2017, Third Amendment and Limited Waiver effective August 15, 2017, Fourth Amendment to Credit Agreement dated as of September 29, 2017 and Fifth Amendment to Credit Agreement dated as of December 22, 2017 but effective as of September 29, 2017, the “Original Amended Agreement”), dated as of August 4, 2016, among the Borrowers, the Lenders, Capital One, as Administrative Agent, Issuing Bank and Swingline Lender, Citizens Bank N.A., as Syndication Agent, and TD Bank, N.A. and Raymond James Bank, N.A., as Co-Documentation The Sixth Amendment included covenants pursuant to which the Partnership agreed to deliver to the Administrative Agent (a) the consolidated financial statements included in this Annual Report on Form 10-K 10-K”) 10-Q 10-K • reduce the amount of the Revolving Commitments from $200.0 million to $175.0 million and eliminate the Borrowers’ ability to increase the Revolving Commitments; • add a further limitation on Revolving Credit Availability at any time prior to the date on which the Partnership shall have achieved (i) as of the last day of any fiscal quarter after the effective date of the Fourth Amendment, a Consolidated Leverage Ratio (determined based on Consolidated EBITDA calculated without regard to the amendments under the Sixth Amendment) of less than 4.00:1.00 for the four consecutive fiscal quarters ending on such date and (ii) as of the last day of any fiscal quarter after the Sixth Amendment Effective Date, a Consolidated Secured Net Leverage Ratio of less than 3.00:1.00 for the four consecutive fiscal quarters ending on such date by establishing a Secured Leverage Borrowing Base, which is equal to the sum of 80% of accounts receivable outstanding less than 120 days (without giving effect to the application of the Financial Accounting Standards Board’s Accounting Standards Codification Topic 606) plus 40% of the book value, net of depreciation, of property, plant and equipment; • amend the definition of “Consolidated EBITDA” for purposes of calculating the various financial covenants to (A) (i) permit the Partnership to add back goodwill impairment charges; (ii) permit the Partnership to add back non-cash non-recurring non-cash non-cash non-cash • replace the Consolidated Leverage Ratio covenant with a Consolidated Secured Net Leverage Ratio covenant that: • defines Consolidated Secured Net Leverage Ratio as the ratio of (i) (x) Consolidated Secured Funded Indebtedness, which is Consolidated Funded Indebtedness secured by a lien, minus (y) unrestricted cash and cash equivalents subject to a first priority lien in favor of the Administrative Agent in an amount not to exceed $5.0 million, to (ii) Consolidated EBITDA; and • establishes limitations on the Partnership’s Consolidated Secured Net Leverage Ratio at 5.75:1.00 for the period ended June 30, 2018 and the period ended September 30, 2018, stepping down to 5.50:1.00 for the period ended December 31, 2018, 5.00:1.00 for periods ending in fiscal 2019 and 4.50:1.00 for periods ending in fiscal 2020; • prohibit distributions to the Partnership’s partners unless the Consolidated Leverage Ratio (determined based on Consolidated EBITDA calculated giving effect to amendments under the Sixth Amendment) is not greater than 7.50:1.00 and the Revolving Credit Availability is at least $25.0 million; • increase the minimum and maximum Applicable Rate by 0.50%; redetermine the Applicable Rate based on the Consolidated Secured Net Leverage Ratio of the Partnership and its Subsidiaries to be in the range between 2.25% to 4.25% for Eurodollar Rate Loans and 1.25% to 3.75% for Base Rate Loans (but in no event less that the Applicable Rate that would be in effect if calculated as set forth in the Original Amended Agreement); • revise the provisions relating to the Consolidated Fixed Charge Coverage Ratio by (A) reducing the minimum Consolidated Fixed Charge Coverage Ratio from 1.20:1.00 to 1.00:1.00 for fiscal 2018, stepping up to 1.10:1.00 for fiscal 2019 and returning to 1.20:1.00 for fiscal 2020 and (B) permitting the Partnership to include in calculating the ratio adjustments for “Change in Deferred Selling and Obtaining Costs,” “Change In Deferred Revenue” and “Change In Merchandise Trust Fund” as presented in the Partnership’s consolidated financial statements; • remove the Consolidated Debt Service Charge Ratio; • provide for mandatory prepayments in an amount equal to 100% of the net cash proceeds, subject to certain thresholds in certain cases, from sale/leaseback transactions and certain other permitted dispositions of assets; • further modify the Partnership’s and its subsidiaries’ ability to incur additional indebtedness by: (i) decreasing the capital equipment financing basket from $10.0 million to $5.0 million; (ii) decreasing the general basket for certain permitted debt from $10.0 million to $7.5 million; (iii) eliminating the Borrowers’ ability to incur subordinated debt to fund consideration payable for certain permitted acquisitions; (iv) eliminating the Borrowers’ ability to incur unsecured indebtedness; and (v) permitting the Partnership to incur indebtedness of up to an aggregate of $11.0 million in the form of deferred purchase price obligations payable pursuant to certain specified agreements entered into prior to the Sixth Amendment Effective Date; • eliminate the Partnership’s and its subsidiaries’ (A) right to consummate, subject to certain other conditions, acquisitions if, on a pro forma basis, the Consolidated Leverage Ratio was not greater than 3.75:1.00 and (B) ability to fund acquisitions with Borrowers’ own funds, except for an aggregate of up to $11.0 million of purchase price obligations pursuant to certain acquisitions for which agreements had been executed prior to the Sixth Amendment Effective Date; • modify the scope of permitted dispositions: (i) to decrease the general basket from $10.0 million annually to $5.0 million after the Sixth Amendment Effective Date; (ii) except with respect to certain existing sale/leaseback transactions, reduce the limit on dispositions involving sale/leaseback transactions from $10.0 million during the term of the facility to $3.0 million after the Sixth Amendment Effective Date; and (iii) for dispositions that would not otherwise be permitted dispositions, change the basket from an annual aggregate limit of $10.0 million to a limit of $12.0 million from the Sixth Amendment Effective Date until June 30, 2019 and a limit of $3.0 million from July 1, 2019 until December 31, 2019 and each year thereafter (provided that such limitations will not apply to certain specified dispositions); • reduce the amount that may be invested in non-guarantor • extend the deadline for filing the Partnership’s Forms 10-Q 10-K. In addition, in the Sixth Amendment, the Administrative Agent and Lenders party thereto waived existing defaults under the Original Amended Agreement as a result of the Partnership’s failure to (i) deliver the financial statements for the periods ended December 31, 2017 and March 31, 2018 and the related compliance certificates; (ii) comply with the facility’s maximum Consolidated Leverage Ratio for the quarters ended December 31, 2017 and March 31, 2018; and (iii) give notice of such defaults and inaccuracies in representations and warranties resulting from such defaults. This waiver was subject to the satisfaction of certain conditions, including the payment to the Lenders of a fee in the aggregate amount of $0.9 million. The Seventh Amendment included covenants pursuant to which the Partnership agreed to deliver to the Administrative Agent: (a) the consolidated financial statements included in its Annual Report on Form 10-K 10-Q 10-Q”) 10-K 10-Q 10-Q”) 10-Q 10-Q 10-Q 10-K The Eighth Amendment added to the Amended Credit Agreement a separate last out revolving credit facility (the “Tranche B Revolving Credit Facility”) in the aggregate amount of $35.0 million to be provided by certain affiliates of Axar Capital Management as the initial lenders under the Tranche B Revolving Credit Facility (the “Tranche B Revolving Lenders”) on the following terms (as further detailed in the Eighth Amendment): • the aggregate amount of the Tranche B Revolving Commitments is $35.0 million; such Commitments were utilized in the amount of $15.0 million, which is reduced by a $0.7 million Original Issue Discount on the Eighth Amendment effective date. The remaining $20 million in commitments may be utilized in the amount of $5.0 million (or any integral multiple thereof) from time to time until April 30, 2019, provided that any borrowings resulting in the outstanding principal amount of the Tranche B Revolving Credit Facility being in excess of $25.0 million require, as a condition to such borrowings, that the Partnership receive a fairness opinion with respect to the Tranche B Revolving Credit Facility; • Tranche B Revolving Credit Facility Maturity Date is one business day after the maturity date of the original revolving credit facility (the “Tranche A Revolving Credit Facility”); • the interest rate applicable to the loans made under the Tranche B Revolving Credit Facility is 8.00% per annum, payable quarterly in arrears; • borrowings under the Tranche B Revolving Credit Facility on the effective date of the Eighth Amendment (the “Eighth Amendment Effective Date”) were subject to an original issue discount in the amount of $0.7 million; and • upon the repayment or prepayment of the Tranche B Revolving Credit Facility in full, the Tranche B Revolving Lenders will receive additional interest in the amount of $0.7 million. The Eighth Amendment also amended certain terms of the Original Amended Agreement (as further amended by the 2018 Amendments) to: • reduce the Tranche A Revolving Credit Availability Period to end on the Eighth Amendment Effective Date, which precludes borrowings under the Tranche A Revolving Credit Facility after such date; • reduce the amount of the Letter of Credit Sublimit from $15.0 million to $9.4 million, plus the principal amount of loans under the Tranche A Revolving Credit Facility that become subject to optional prepayment after the Eighth Amendment Effective Date, and permit the issuance of letters of credit under the Tranche A Revolving Credit Facility after the Eight Amendment Effective Date; • modify the Tranche A Revolving Credit Facility Maturity Date to be the earlier of (i) May 1, 2020 and (ii) the date that is six months prior to the earliest scheduled maturity date of any outstanding Permitted Unsecured Indebtedness; • redetermine the Applicable Rate to be 4.50% for Eurodollar Rate Loans and 3.50% for Base Rate Loans from the Eighth Amendment Effective Date to February 28, 2019; 4.75% and 3.75%, respectively, from March 1, 2019 to March 31, 2019; 5.50% and 4.50%, respectively, from April 1, 2019 to April 30, 2019; 5.75% and 4.75%, respectively, from May 1, 2019 to May 31, 2019; and 6.00% and 5.00%, respectively, from June 1, 2019; • discontinue the accrual of the commitment fee after the Eighth Amendment Effective Date; • provide for ticking fees assessed on the amount of outstanding loans made under the Tranche A Revolving Credit Facility (the “Tranche A Revolving Loans”) and payable to the Tranche A Revolving Lenders (i) in-kind, • 3.00% on July 1, 2019, of which (x) 2.00% shall PIK and (y) 1.00% shall be payable in cash, unless the Required Lenders agree to PIK; • 1.00% on August 1, 2019, payable in cash, unless the Required Lenders agree to PIK; • 1.00% on September 1, 2019, payable in cash, unless the Required Lenders agree to PIK; and • 1.00% on October 1, 2019, PIK; • amend the definition of “Consolidated Net Income” for purposes of calculating the Consolidated EBITDA to exclude, for the time period from January 1, 2018 to January 1, 2019, (i) any non-recurring non-recurring • amend the definition of “Consolidated EBITDA” for purposes of calculating the financial covenant to (i) adjust the limit on add backs for non-recurring non-recurring “non-ordinary • remove the Consolidated Secured Net Leverage Ratio and Consolidated Fixed Charge Coverage Ratio and replace them with a covenant requiring the Partnership to ensure that its Consolidated EBITDA is not less than the following amounts for the four quarters ending on the following dates: (i) $18.0 million for the period ended March 31, 2018; (ii) $13.0 million for the period ended June 30, 2018; (iii) $2.5 million for the period ended September 30, 2018; (iv) ($3.0 million) for the period ended December 31, 2018; (v) $1.0 million for the period ending March 31, 2019; (vi) $3.5 million for the period ending June 30, 2019; (vii) $8.0 million for the period ending September 30, 2019; (viii) $8.25 million for the period ending December 31, 2019; and (ix) $9.25 million for the period ending March 31, 2020; • provide for mandatory prepayments in an amount equal to 100% of the net cash proceeds from (i) sale/leaseback transactions and certain other permitted dispositions of assets and (ii) incurrence of certain indebtedness (including any indebtedness not permitted under the Amended Credit Agreement) in an amount exceeding $5.0 million; • extend the deadline for filing the Partnership’s Form 10-Q • add a covenant requiring the Partnership and the Administrative Borrower to use their reasonable best efforts to consummate the transactions contemplated under the Merger Agreement (as defined below) by May 15, 2019 (the “C-Corporation C-Corporation • add a covenant requiring the Administrative Borrower to engage Houlihan Lokey or any other acceptable financial advisor by no later than the second business day after the Eighth Amendment Effective Date to advise it in the arrangement of the refinancing in full of the obligations with respect to the Tranche A Revolving Credit Facility (such refinancing, the “Refinancing”); • add a covenant requiring the Administrative Borrower to retain Carl Marks & Co. or another acceptable consultant of recognized national standing on or prior to the Eighth Amendment Effective Date, who shall (i) assist the Administrative Borrower in further developing its financial planning and analysis function; (ii) prepare a detailed analysis of G&A expenses and other overhead and develop cost savings initiatives and (iii) present a monthly written update to the Administrative Agent and the Lenders on progress; and • amend other provisions of the Original Amended Agreement (as amended by the 2018 Amendments) in connection with the foregoing. In addition, in the Eighth Amendment, the Administrative Agent and Lenders party thereto waived existing defaults under the Original Amended Agreement (as amended by the 2018 Amendments) as a result of the Partnership’s failure to (i) deliver the financial statements for the periods ended March 31, 2018, June 30, 2018 and September 30, 2018 and the related compliance certificates; (ii) comply with the facility’s maximum Consolidated Secured Net Leverage Ratio for each period ended June 30, 2018, September 30, 2018 and December 31, 2018 (iii) comply with the facility’s minimum Fixed Charge Coverage Ratio for each period ended June 30, 2018, September 30, 2018 and December 31, 2018; and (iv) inaccuracies in representations and warranties resulting from such defaults. The effectiveness of the Eighth Amendment was subject to the satisfaction of certain conditions, including the payment to the Tranche A Revolving Lenders of a fee in the aggregate amount of $0.8 million. Merger and Reorganization Agreement On September 27, 2018, the Partnership, StoneMor GP LLC, a Delaware limited liability company and the general partner of the Partnership (“GP”), StoneMor GP Holdings LLC, a Delaware limited liability company and the sole member of GP (“GP Holdings”), and Hans Merger Sub, LLC, a Delaware limited liability company and wholly-owned subsidiary of GP (“Merger Sub”), entered into a Merger and Reorganization Agreement (the “Merger Agreement”) pursuant to which, among other things, GP will convert from a Delaware limited liability company into a Delaware corporation to be named StoneMor Inc. (the “Company” when referring to StoneMor Inc. subsequent to such conversion), the Partnership will become a wholly owned subsidiary of the Company and the unitholders of the Partnership will become stockholders in the Company. Upon the terms and subject to the conditions set forth in the Merger Agreement, GP Holdings shall contribute the 2,332,878 common units representing limited partner interests in the Partnership (the “Common Units”) owned by it (the “GP Holdings’ Common Units”) to GP and immediately following receipt thereof, GP shall contribute the GP Holdings’ Common Units to StoneMor LP Holdings, LLC, a Delaware limited liability company and wholly owned subsidiary of GP (“LP Sub”) and LP Sub shall be admitted as a limited partner of the Partnership; (ii) GP shall convert into the Company (the “Conversion”) and all of the limited liability company interests of GP held by GP Holdings prior to the Conversion shall be canceled; (iii) as part of the Conversion and before giving effect to the Merger (as defined below), GP Holdings will be the sole stockholder of StoneMor Inc. and, as consideration for the Conversion and the Merger, will receive 2,332,878 shares of common stock, par value $0.01 per share, of StoneMor Inc. (the “Company Shares”) (subject to adjustment as provided in the Merger Agreement) with respect to the 2,332,878 Common Units held by LP Sub immediately prior to the Conversion, and 2,950,000 Company Shares (the “General Partner Shares”) (also subject to adjustment as provided in the Merger Agreement) with respect to the 1.04% general partner interest, the incentive distribution rights and the governance and all other economic and other rights associated with the general partner interest held indirectly by GP Holdings through the GP immediately prior to the Conversion. Pursuant to the Merger Agreement, (i) any then outstanding awards of phantom units granted to a member of the GP Board under the StoneMor Partners L.P. Long-Term Incentive Plan(as amended April 19, 2010) (the “2004 Partnership Equity Plan”), (ii) any then outstanding award of Phantom Units granted to a member of the GP Board under the StoneMor Partners L.P. 2014 Long-Term Incentive Plan (the “2014 Partnership Equity Plan”), which was also renamed the StoneMor Amended and Restated 2018 Long-Term Incentive Plan (the “Restated Plan”), (iii) any then outstanding award of Phantom Units that is not a 2004 Director Deferred Phantom Unit Award or a 2014 Director Deferred Phantom Unit Award granted under either the 2004 Partnership Equity Plan or the 2014 Partnership Equity Plan (a “Phantom Award”), (iv) any then outstanding award of restricted units (“Restricted Units”) granted under the 2014 Partnership Equity Plan, (v) any then outstanding award of unit appreciation rights (“UARs”) granted under the 2004 Partnership Equity Plan (a “UAR Award”)shall, without any required action on the part of the holder thereof, be assumed by the Company and converted into an award denominated in Company Shares. At the Effective Time, Merger Sub shall be merged with and into the Partnership (the “Merger”), with the Partnership surviving and with the Company as its sole general partner and LP Sub as its sole holder of Common Units and each outstanding Common Unit, including certain phantom units granted to members of the GP Board under the 2004 Partnership Equity Plan but excluding any Common Units held by LP Sub, being converted into the right to receive one Company Share. All of the limited liability company interests in Merger Sub outstanding immediately prior to the Effective Time shall be converted into and become limited partner interests in the surviving entity. Following the Effective Time, the general partnership interests in the Partnership issued and outstanding immediately prior to the Effective Time shall remain outstanding and unchanged subject to such changes as are set forth in the Second Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of September 9, 2008, as amended as of November 3, 2017 (the “LPA”), and the Company shall continue to be the sole general partner of the Partnership. Per the terms of the Merger Agreement each Party shall bear its own expenses, costs and fees (including attorneys’, auditors’ and financing fees, if any) in connection with the preparation and delivery of the Merger Agreement and compliance therewith, whether or not the transactions contemplated by the Merger Agreement are effected. The Partnership has incurred $2.1 million in legal and other expenses for the transactions contemplated by the Merger Agreement through December 31, 2018. Extension of Interim Strategic Executive On October 8, 2018, Leo J. Pound, Interim Strategic Executive, and StoneMor GP LLC (“StoneMor GP”), the general partner of StoneMor Partners L.P. (the “Partnership”), modified the terms of the agreement dated July 26, 2018 pursuant to which he served as Interim Strategic Executive of StoneMor GP by extending the term of his service in such capacity through October 31, 2018. The agreement outlined the specific strategic initiatives for which Mr. Pound was responsible in that capacity, which focused primarily on enhancing the Partnership’s financial management and improving its cash flow. StoneMor GP also delegated to Joseph M. Redling, its current President and Chief Executive Officer, the authority to extend such term for one additional month. During such additional period of service as Interim Strategic Executive, Mr. Pound continued to receive a monthly fee of $50,000. Matters Pertaining to Former President and Chief Executive Officer On October 12, 2018, the former President and Chief Executive Officer, Lawrence Miller and the Partnership entered into a letter agreement (the “Agreement”) that resolved the number of units that vested upon Mr. Miller’s retirement as President and Chief Executive Officer in May 2017 pursuant to awards made under the Partnership’s 2014 Long-Term Incentive Plan (the “Plan”). The parties agreed that a total of 22,644 time-based units and 63,836 performance-based units vested under such awards in accordance with the terms of the Separation Agreement dated March 27, 2017 between Mr. Miller and StoneMor GP. The parties also agreed that a total of $340,751.40 will be paid to Mr. Miller pursuant to distribution equivalent rights with respect to those units. In connection with entering into the Agreement, Mr. Miller resigned as a director of StoneMor GP. The Partnership will pay Mr. Miller the distribution equivalent rights within five business days, and will issue the vested units within five business days after it has filed all reports it is required to file under the Securities Exchange Act of 1934, as amended. The Agreement also included a customary release by Mr. Miller of any further claims with respect to the Plan, including the referenced awards, and any right to appoint a “Founder Director” under the terms of StoneMor GP’s Second Amended and Restated Limited Liability Company Agreement, as amended. Loan Agreement with a Related Party On February 4, 2019, the Partnership entered into the Eighth Amendment with, among other parties, certain affiliates of Axar Capital Management (collectively, “Axar”) to provide an up to $35.0 million bridge financing in the form of the Tranche B Revolving Credit Facility, of which $15.0 million was drawn down immediately. Borrowings under the financing arrangement are collateralized by a perfected first priority security interest in substantially all assets of the Partnership and the Borrowers held for the benefit of the existing Tranche A Revolving Lenders and bear interest at a fixed rate of 8.0%. Borrowings under Tranche B Revolving Credit Facility on the effective date of the Eighth Amendment (the “Eighth Amendment Effective Date”) are subject to an original issue discount in the amount of $0.7 million, which was recorded as original issue discount and will pay additional interest in the amount $0.7 million at the termination and payment in full of the financing arrangement, which will be accreted to interest expense over the term of the financing arrangement, As of February 5, 2019, Axar beneficially owned approximately 19.5% of the Partnership’s outstanding common units. Axar also has exposure to an additional 1,462,272 Common Units pursuant to certain cash-settled equity swaps which mature on June 20, 2022 in accordance with information included in Axar’s filing on Form 13D/A which was filed with the SEC on February 5, 2019. In addition, the Partnership’s board of directors has separately approved an amendment to the voting and standstill agreement and director voting agreement with Axar to permit Axar to acquire up to 27.5% of the Partnership common units outstanding. January 2019 Restructuring On January 31, 2019, the Partnership announced a restructuring initiative implemented as part of its ongoing organizational review. This restructuring is intended to further integrate, streamline and optimize the Partnership’s operations. As part of this restructuring, the Partnership will undertake certain cost reduction initiatives, including a reduction of approximately 45 positions of its workforce, primarily related to corporate functions in Trevose, a streamlining of general and administrative expenses and an optimization of location spend. The Partnership expects to incur cash charges of approximately $0.5 million to $0.7 million of employee separation and other benefit-related costs in connection with the January 2019 restructuring initiative. Substantially all of these cash payments are anticipated to be made by the end of 2019 and the Partnership anticipates that substantially all of the actions associated with this restructuring will be completed by the end of 2019. Under this restructuring, separation costs are expensed over the requisite service period, if any. There were no expenses recorded for the year ended December 31, 2018 related to the January 2019 restructuring initiative. |
GENERAL (Policies)
GENERAL (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations StoneMor Partners L.P. (the “Partnership”) is a provider of funeral and cemetery products and services in the death care industry in the United States. As of September 30, 2018, the Partnership operated 322 cemeteries in 27 states and Puerto Rico, of which 291 were owned and 31 were operated under lease, management or operating agreements. The Partnership also owned and operated 90 funeral homes, including 44 located on the grounds of cemetery properties that the Partnership owns, in 17 states and Puerto Rico. |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements, which are unaudited except for the balance sheet at December 31, 2017, which has been derived from audited financial statements, have been prepared in accordance with the requirements of Form 10-Q 10-K. 10-K |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of each of the Partnership’s 100% owned subsidiaries. These statements also include the accounts of the merchandise and perpetual care trusts in which the Partnership has a variable interest and is the primary beneficiary. The Partnership operates 31 cemeteries under long-term lease, operating or management contracts. The operations of 16 of these managed cemeteries have been consolidated. The Partnership operates 15 cemeteries under long-term leases and other agreements that do not qualify as acquisitions for accounting purposes. As a result, the Partnership did not consolidate all of the existing assets and liabilities related to these cemeteries. The Partnership has consolidated the existing assets and liabilities of the merchandise and perpetual care trusts associated with these cemeteries as variable interest entities since the Partnership controls and receives the benefits and absorbs any losses from operating these trusts. Under the long-term leases and other agreements associated with these properties, which are subject to certain termination provisions, the Partnership is the exclusive operator of these cemeteries and earns revenues related to sales of merchandise, services and interment rights, and incurs expenses related to such sales, including the maintenance and upkeep of these cemeteries. Upon termination of these contracts, the Partnership will retain all of the benefits and related contractual obligations incurred from sales generated during the contract period. The Partnership has also recognized the existing customer contract related performance obligations that it assumed as part of these agreements. |
Reclassifications and Adjustments to Prior Period Financial Statements | Reclassifications and Adjustments to Prior Period Financial Statements Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation, in the consolidated results of operations, primarily to present interment rights separately from merchandise revenues and to reclassify items that were previously recorded in Merchandise Revenues that represented the installation of certain merchandise items which are now presented in Services. There was no effect on the previously reported consolidated results of operations, consolidated financial position or cash flows, except as described below under “ Recently Issued Accounting Standard Updates - Adopted in the Current Period. |
Uses and Sources of Liquidity | Uses and Sources of Liquidity The Partnership’s primary sources of liquidity are cash generated from operations and borrowings under its revolving credit facility. As a master limited partnership (MLP), the Partnership’s primary cash requirements, in addition to normal operating expenses, are for capital expenditures, net contributions to the merchandise and perpetual care trust funds, debt service and cash distributions. In general, as part of its operating strategy, the Partnership expects to fund: • working capital deficits through cash generated from operations, additional borrowings and sales of underperforming properties; • expansion capital expenditures, net contributions to the merchandise and perpetual care trust funds and debt service obligations through available cash, cash generated from operations, additional borrowings or asset sales. Amounts contributed to the merchandise trust funds will be withdrawn at the time of the delivery of the product or service sold to which the contribution relates (see “Summary of Significant Accounting Policies” section below regarding revenue recognition), which will reduce the amount of additional borrowings or asset sales needed; and • any cash distributions the Partnership is permitted and determines to pay in accordance with its partnership agreement and maintenance capital expenditures through available cash and cash flows from operating activities. While the Partnership relies heavily on its cash flows from operating activities and borrowings under its credit facility to execute its operational strategy and meet its financial commitments and other short-term financial needs, the Partnership cannot be certain that sufficient capital will be generated through operations or available to the Partnership to the extent required and on acceptable terms. Moreover, although the Partnership’s cash flows from operating activities have been positive, the Partnership has experienced negative financial trends which, when considered in the aggregate, raise substantial doubt about the Partnership’s ability to continue as a going concern. These negative financial trends include: • net losses from operations due to an increased competitive environment, an increase in professional fees and compliance costs and an increase in consulting fees associated with the Partnership’s adoption of the Accounting Standard Codification (“ASC”) 606, Revenue from Contracts with Customers • a decline in billings coupled with the increase in professional, compliance and consulting expenses, tightened the Partnership’s liquidity position and increased reliance on long-term financial obligations, which in turn limited the Partnership’s ability to pay distributions; • the Partnership’s failure to comply with certain debt covenants required by the Partnership’s credit facility due to the Partnership’s inability to complete a timely filing of our Annual Reports on Form 10-K 10-Q, During 2017 and to date in 2018, the Partnership has implemented (and will continue to implement) various actions to improve profitability and cash flows to fund operations. A summary of these actions is as follows: • continue to manage recurring operating expenses and seek to limit non-recurring • complete sales of certain assets and businesses to provide supplemental liquidity; and • for the reasons disclosed above, the Partnership was not in compliance with certain of its amended credit facility covenants as of December 31, 2017, March 31, 2018, June 30, 2018, September 30, 2018 and December 31, 2018. These failures constituted defaults that the lenders agreed to waive pursuant to the Sixth Amendment and Waiver, the Seventh Amendment and Waiver and the Eighth Amendment and Waiver to the Partnership’s credit facility on June 12, 2018, July 13, 2018 and February 4, 2019, respectively, as disclosed in the credit facility subsection in Note 9 Long-Term Debt and in Note 17 Subsequent Events. Moreover, based on the Partnership’s forecasted operating performance, cash flows and projected plans to file financial statements on a timely basis consistent with the debt covenants, the Partnership does not believe it is probable that the Partnership will further breach the covenants under its amended credit facility for the next twelve-month period. However, there is no certainty that the Partnership’s actual operating performance and cash flows will not be substantially different from forecasted results, and no certainty the Partnership will not need further amendments to its credit facility in the future. Factors that could impact the significant assumptions used by the Partnership in assessing its ability to satisfy its financial covenants include the following: • operating performance not meeting reasonably expected forecasts; • failing to generate profitable sales; • investments in the Partnership’s trust funds experiencing significant declines due to factors outside its control; • being unable to compete successfully with other cemeteries and funeral homes in the Partnership’s markets; • the number of deaths in the Partnership’s markets declining; and • the mix of funeral and cemetery revenues between burials and cremations. If the Partnership’s planned and implemented actions are not realized and the Partnership fails to improve its operating performance and cash flows, or the Partnership is not able to comply with the covenants under its amended credit facility, the Partnership may be forced to limit its business activities, implement further modifications to its operations, further amend its credit facility and/or seek other sources of capital, and the Partnership may be unable to continue as a going concern. Additionally, a failure to generate additional liquidity could negatively impact the Partnership’s access to inventory or services that are important to the operation of the Partnership’s business. Given the Partnership’s level of cash and cash equivalents, to preserve capital resources and liquidity, the Board of Directors of the General Partner concluded that it was not in the best interest of unitholders to pay distributions to unitholders after the first quarter of 2017. In addition, the Partnership’s revolving credit facility prohibits the Partnership from making distributions to unitholders. Any of these events may have a material adverse effect on the Partnership’s results of operations and financial condition. The condensed consolidated financial statements included in this Quarterly Report on Form 10-Q |
Use of Estimates | Use of Estimates The preparation of the Partnership’s unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions as described in its Annual Report on Form 10-K |
Revenues | Revenues A. Significant Accounting Policy The Partnership’s revenues are derived from contracts with customers through sale and delivery of death care products and services. Primary sources of revenue are derived from (1) cemetery and funeral home operations generated both at the time of death (“at-need”) (“pre-need”), pre-need Cemetery and Funeral Home Operations Revenue Pre-need Sales taxes assessed by a governmental authority are excluded from revenue. Any shipping and handling costs that are incurred after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold. Investment income pre-need Pre-need At the time of a non-cancellable pre-need pre-need B. Nature of Goods and Services The following is a description of the principal activities, separated by reportable segments, from which the Partnership generates its revenue. As discussed more fully in Note 15 Segment Information, the Partnership operates two reportable segments: Cemetery Operations and Funeral Home Operations. Cemetery Operations The Cemetery Operations segment principally generates revenue from (1) providing rights to inter remains in a specific cemetery property inventory space such as burial lots and constructed mausoleum crypts (“Interments”), (2) sales of cemetery merchandise which includes markers (i.e., method of identifying a deceased person in a burial space, crypt, or niche), base (i.e.; concrete lining for the bottom of the burial plot), vault (i.e. a container installed in the burial lot in which the casket is placed), caskets, cremation niches, and other cemetery related items (“Merchandise”) and (3) service revenues, including opening and closing (“O&C”), a service of digging and refilling burial spaces to install the burial vault and place the casket into the vault, cremation services, and fees for installation of cemetery merchandise (“Services”). Products and services may be sold separately or in packages. For packages, the Partnership accounts for individual products and services separately as they are distinct (i.e., the product or service is separately identifiable from other items in the package and the customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration (including any discounts) is allocated among separate products and services in a package based on their relative stand-alone selling prices. The stand-alone selling price is determined by management based upon local market conditions and reasonable ranges for both merchandise and services which is the best estimate of the stand-alone price. For items that are not sold separately (e.g., second interment rights), the Partnership estimates stand-alone selling prices using the best estimate of market value. The Partnership estimated the stand-alone selling price using inputs such as average selling price and list price broken down by each geographic location. Additionally the Partnership considered typical sales promotions that could have impacted the stand-alone selling price estimates. Interments revenue is recognized when control transfers, which is when the property is available for use by the customer. For pre-construction Merchandise revenue and deferred investment earnings on merchandise trusts are recognized when a customer obtains control of the product. This usually occurs when the customer takes possession of the product (title has transferred to the customer and the merchandise is either installed or stored, at the direction of the customer, at the vendor’s warehouse or a third-party warehouse at no additional cost to the Partnership). The amount of revenue recognized is adjusted for expected refunds, which are estimated based on applicable law, general business practices and historical experience observed specific to the respective performance obligation. The estimate of the refund obligation is reevaluated on a quarterly basis. In addition, we are entitled to retain, in certain jurisdictions, a portion of collected customer payments when a customer cancels a pre-need Service revenue is recognized when the services are performed and the performance obligation is thereby satisfied. The cost of goods sold related to merchandise and services reflects the actual cost of purchasing products and performing services and the value of cemetery property depleted through the recognized sales of interment rights. The costs related to the sales of lots and crypts are determined systematically using a specific identification method under which the total value of the underlying cemetery property and the lots available to be sold at the location are used to determine the cost per lot. Funeral Home Operations Our Funeral Home Operations segment principally generates revenue from (1) sales of funeral home merchandise which includes caskets and other funeral related items (“Merchandise”) and (2) service revenues, including services such as family consultation, the removal of and preparation of remains and the use of funeral home facilities for visitation and prayer services (“Services”). Our funeral home operations also include revenues related to the sale of term and whole life insurance on an agency basis, in which we earn a commission from the sales of these policies. Insurance commission revenue is reported within service revenues. Products and services may be sold separately or in packages. For packages, the Partnership accounts for individual products and services separately as they are distinct (i.e. the product or service is separately identifiable from other items in the package and the customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration (including any discounts) is allocated among separate products and services based on their relative stand-alone selling prices. The relative stand-alone selling price is determined by management’s best estimate of the stand-alone price based upon the list price at each location. Funeral Home Operations primarily generate revenues from at-need Merchandise revenue is recognized when a customer obtains control of the product. This usually occurs when the customer takes possession of the product (title has transferred to the customer and the merchandise is either installed or stored, at the direction of the customer, at the vendor’s warehouse or a third-party warehouse). The amount of revenue recognized is adjusted for expected refunds, which are estimated based on applicable law, general business practices and historical experience observed specific to the respective performance obligations. The estimate of the refund obligation is reevaluated on a quarterly basis. Service revenue is recognized when the services are performed and the performance obligation is thereby satisfied. Costs related to the delivery or performance of merchandise and services are charged to expense when merchandise is delivered or services are performed. |
Deferred Selling and Obtaining Costs | Deferred Selling and Obtaining Costs The Partnership defers certain costs that are incremental to obtaining pre-need As of September 30, 2018, we had $112.6 million in deferred incremental direct selling costs included in Deferred charges and other assets |
Income Taxes | Income Taxes The Partnership is not subject to U.S. federal and most state income taxes. The partners of the Partnership are liable for income tax in regard to their distributive share of the Partnership’s taxable income. Such taxable income may vary substantially from net income reported in the accompanying consolidated financial statements. Certain corporate subsidiaries are subject to federal and state income tax. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and tax carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Partnership records a valuation allowance against its deferred tax assets if it deems that it is more likely than not that some portion or all of the recorded deferred tax assets will not be realizable in future periods. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law. The Tax Act made broad and complex changes to the U.S. tax code by, among other things, reducing the federal corporate income tax rate, creating a new limitation on deductible interest expense, creating bonus depreciation that will allow for full expensing on qualified property, changing the lives of post-2017 net operating loss carryovers and imposing limitations on deductibility of certain executive compensation. The primary driver of the change in the income tax provision for the three and nine months ended September 30, 2018 related to the reduction of tax rates and the benefit related to 2018 net operating loss carryovers which have an unlimited carry forward life and can be used to offset long life deferred tax liabilities. |
Net Loss per Common Unit | Net Loss per Common Unit Basic net loss attributable to common limited partners per unit is computed by dividing net loss attributable to common limited partners, which is determined after the deduction of the general partner’s interest by the weighted average number of common limited partner units outstanding during the period. Net loss attributable to common limited partners is determined by deducting net loss attributable to participating securities, if applicable, and net loss attributable to the general partner’s units. The general partner’s interest in net loss is calculated on a quarterly basis based upon its units and incentive distributions to be distributed for the quarter, with a priority allocation of net loss to the general partner’s incentive distributions, if any, in accordance with the partnership agreement, and the remaining net loss allocated with respect to the general partner’s and limited partners’ ownership interests. The Partnership presents net loss per unit under the two-class two-class two-class two-class The following is a reconciliation of net loss allocated to the common limited partners for purposes of calculating net loss attributable to common limited partners per unit (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net loss $ (17,225 ) $ (9,576 ) $ (52,165 ) $ (29,719 ) Less: Incentive distribution right (“IDR”) payments to general partner — — — — Net loss to allocate to general and common limited partners (17,225 ) (9,576 ) (52,165 ) (29,719 ) General partner’s interest excluding IDRs (179 ) (99 ) (543 ) (309 ) Net loss attributable to common limited partners $ (17,046 ) $ (9,477 ) $ (51,622 ) $ (29,410 ) Diluted net loss attributable to common limited partners per unit is calculated by dividing net loss attributable to common limited partners, less income allocable to participating securities, by the sum of the weighted average number of common limited partner units outstanding and the dilutive effect of unit option awards, as calculated by the treasury stock or if converted methods, as applicable. These awards consist of common units issuable upon payment of an exercise price by the participant under the terms of the Partnership’s long-term incentive plan. The following table sets forth the Partnership’s weighted average number of common limited partner units used to compute basic net loss attributable to common limited partners per unit with those used to compute diluted net loss attributable to common limited partners per unit (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Weighted average number of common limited partner units - basic and diluted (1) 37,959 37,958 37,959 37,945 (1) The diluted weighted average number of limited partners’ units outstanding presented on the condensed consolidated statement of operations does not include 560,839 units and 334,942 units for the three months ended September 30, 2018 and 2017, respectively, and 560,839 units and 328,460 units for the nine months ended September 30, 2018 and 2017, respectively, as their effects would be anti-dilutive. |
Recently Issued Accounting Standard Updates | Recently Issued Accounting Standard Updates - Adopted in the Current Period Revenue In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) No. 2014-09 The Partnership adopted the new revenue standard as of January 1, 2018 using the modified retrospective method and applying the new standard to all contracts with customers. Therefore, the comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Partnership elected to aggregate the effects of all contract modifications that occurred prior to the date of adoption when (i) identifying the satisfied and unsatisfied performance obligations, (ii) determining the transaction price and (iii) allocating the transaction price to the satisfied and unsatisfied performance obligations, rather than retrospectively restating the contracts for those modifications. The new revenue standard, as amended, requires that we recognize revenue in the amount to which we expect to be entitled for delivery of promised goods and services to our customers. The new revenue standard also resulted in enhanced revenue-related disclosures, including any significant judgments and changes in judgments. Additionally, the new revenue standard requires the deferral of incremental direct selling costs to the period in which the related revenue is recognized. The standard primarily impacts the manner in which we recognize (a) certain nonrefundable up-front pre-need at-need pre-need As noted above, due to the adoption of ASC 606, the Partnership recorded a $6.4 million decrease to the opening balance of partners’ capital primarily related to the timing of the recognition of nonrefundable upfront fees partially offset by an increase to the opening balance of partners’ capital due to the timing of revenue recognition for interment rights which are now recognized when the property is available for use by the customer. The Partnership recorded an $18.6 million decrease to the opening balance of partners’ capital due to the write-down of certain recoverable selling and obtaining costs that were determined not to be incremental costs to acquire under ASC 606. In addition, the Partnership established a $2.1 million reserve representing the fair value of the refund obligation that may arise due to state law provisions that include a guarantee of customer funds collected on unfulfilled performance obligations and maintained in trust, which may be refundable due to the exercise of customer cancellation rights. As a result, the Partnership recorded a $3.5 million decrease to the opening balance of partners’ capital and an increase in Other Long-Term Liabilities. Additionally, the Partnership recognized a tax benefit of $0.4 million as a result of adoption, which was an increase to the opening balance of partners’ capital. The information presented for the period prior to January 1, 2018 has not been restated and is reported under FASB ASC 605. The cumulative effect of adopting the new revenue standard impacted the Partnership’s consolidated January 1, 2018 balance sheet as follows (in thousands): Balance Sheet Balance as of Impact of Balance as of Assets Current Assets: Cash and cash equivalents $ 6,821 $ — $ 6,821 Accounts receivable, net of allowance 79,116 (6,122 ) 72,994 Prepaid expenses 4,580 — 4,580 Assets held for sale 1,016 — 1,016 Other current assets 21,453 — 21,453 Total current assets 112,986 (6,122 ) 106,864 Long-term accounts receivable - net of allowance 105,935 (6,527 ) 99,408 Cemetery property 333,404 (2,020 ) 331,384 Property and equipment, net of accumulated depreciation 114,090 — 114,090 Merchandise trusts, restricted, at fair value 515,456 — 515,456 Perpetual care trusts, restricted, at fair value 339,928 — 339,928 Deferred selling and obtaining costs 126,398 (18,557 ) 107,841 Deferred tax assets 84 7 91 Goodwill 24,862 — 24,862 Intangible assets 63,244 — 63,244 Other assets 19,695 — 19,695 Total assets $ 1,756,082 $ (33,219 ) $ 1,722,863 Liabilities and partners’ capital Current liabilities Accounts payable and accrued liabilities $ 43,023 $ 1,329 $ 44,352 Accrued interest 1,781 — 1,781 Current portion, long-term debt 1,002 — 1,002 Total current liabilities 45,806 1,329 47,135 Long-term debt, net of deferred financing costs 317,693 — 317,693 Deferred revenues, net 912,626 (9,558 ) 903,068 Deferred tax liabilities 9,638 (367 ) 9,271 Perpetual care trust corpus 339,928 — 339,928 Other long term liabilities 38,695 3,474 42,169 Total liabilities 1,664,386 (5,122 ) 1,659,264 Partners’ capital General partner (2,959 ) (292 ) (3,251 ) Common partner 94,655 (27,805 ) 66,850 Total partners’ equity 91,696 (28,097 ) 63,599 Total liabilities and partners’ equity $ 1,756,082 $ (33,219 ) $ 1,722,863 In accordance with FASB ASC 606 under the modified retrospective approach, the Partnership is required to disclose the impact of the new revenue standard by comparing the results of the current reporting period under FASB ASC 605. The impact of adopting ASC 606 on the Partnership’s condensed consolidated statement of operations for the three and nine months ended September 30, 2018 is as follows: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Statement of Operations As Reported Balances if Impact of As Reported Balances if Impact of Revenues: Cemetery: Interments $ 17,716 $ 17,732 $ (16 ) $ 58,130 $ 53,411 $ 4,719 Merchandise 18,023 17,920 103 51,766 50,156 1,610 Services 16,419 16,255 164 50,647 49,061 1,586 Investment and other 9,247 11,988 (2,741 ) 30,785 39,623 (8,838 ) Funeral home: Merchandise 5,581 5,621 (40 ) 19,532 19,464 68 Services 6,199 6,389 (190 ) 21,841 22,255 (414 ) Total revenues 73,185 75,905 (2,720 ) 232,701 233,970 (1,269 ) Costs and Expenses: Cost of goods sold $ 12,866 $ 13,407 $ (541 ) $ 39,387 $ 40,366 $ (979 ) Cemetery expenses 19,407 19,407 — 57,828 57,828 — Selling expense 14,251 14,483 (232 ) 47,673 45,586 2,087 General and administrative expense 10,916 10,918 (2 ) 32,037 32,039 (2 ) Corporate overhead 12,876 12,873 3 39,868 39,865 3 Depreciation and amortization 2,737 2,737 — 8,853 8,853 — Funeral home expenses: Merchandise 1,341 1,341 — 4,927 4,927 — Services 5,493 5,504 (11 ) 16,593 16,628 (35 ) Other 3,314 3,314 — 12,315 12,315 — Total costs and expenses 83,201 83,984 (783 ) 259,481 258,407 1,074 Other losses 702 702 — (4,503 ) (4,503 ) — Interest expense (7,638 ) (7,638 ) — (22,858 ) (22,858 ) — Loss before income taxes (16,952 ) (15,015 ) (1,937 ) (54,141 ) (51,798 ) (2,343 ) Income tax benefit (expense) (273 ) (273 ) — 1,976 1,899 77 Net loss $ (17,225 ) $ (15,288 ) $ (1,937 ) $ (52,165 ) $ (49,899 ) $ (2,266 ) The impact of the adoption on the September 30, 2018 balance sheet was not material. The cumulative impact of the adoption on the statement of cash flows only impacted certain line items in cash flows from operating activities. Total net cash provided by operating activities did not change as a result of the adoption. The increase net loss of $(1.9) million and $(2.3) million, for the three and nine months ended September 30, 2018, respectively, was offset by changes in costs of lots sold, provision for bad debt, and changes in the balances of accounts receivable, deferred selling and obtaining cost, deferred revenues and deferred taxes, net. Financial Instruments In the first quarter of 2016, the FASB issued Update No. 2016-01, Financial Instruments (Subtopic 825-10) (“ASU 2016-01”). The ASU 2016-01 is ASU 2016-01 on In the first quarter of 2018, the FASB issued Update No. 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10): 2018-03”). 2016-01. ASU 2018-03 on Cash Flows In the third quarter of 2016, the FASB issued Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The ASU 2016-15 is In the fourth quarter of 2016, the FASB issued Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). The 2016-18 is Business Combinations In the first quarter of 2017, the FASB issued Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Income Taxes In the first quarter of 2018, the FASB issued Update No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 2018-05”). 2018-05 Recently Issued Accounting Standard Updates - Not Yet Effective Leases In the first quarter of 2016, the FASB issued Update No. 2016-02, Leases (Topic 842) 2016-02”). 2016-02 In the first quarter of 2018, the FASB issued Update No. 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 2018-01”). Leases. 2016-02, 2016-02. In July 2018, the FASB issued Update No. 2018-10 Codification Improvements to Topic 842, Leases 2018-10”) No. 2018-11 Leases (Topic 842) Targeted Improvements 2018-11”). 2018-10 2016-02. 2018-11 2016-02 2016-02. Credit Losses In the second quarter of 2016, the FASB issued Update No. 2016-13, Credit Losses (Topic 326) 2016-13”). 2016-13 2016-13 |
GENERAL (Tables)
GENERAL (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reconciliation of Net Income (Loss) Allocated to Common Limited Partners | The following is a reconciliation of net loss allocated to the common limited partners for purposes of calculating net loss attributable to common limited partners per unit (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Net loss $ (17,225 ) $ (9,576 ) $ (52,165 ) $ (29,719 ) Less: Incentive distribution right (“IDR”) payments to general partner — — — — Net loss to allocate to general and common limited partners (17,225 ) (9,576 ) (52,165 ) (29,719 ) General partner’s interest excluding IDRs (179 ) (99 ) (543 ) (309 ) Net loss attributable to common limited partners $ (17,046 ) $ (9,477 ) $ (51,622 ) $ (29,410 ) |
Reconciliation of Partnership's Weighted Average Number of Common Limited Partner Units | The following table sets forth the Partnership’s weighted average number of common limited partner units used to compute basic net loss attributable to common limited partners per unit with those used to compute diluted net loss attributable to common limited partners per unit (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Weighted average number of common limited partner units - basic and diluted (1) 37,959 37,958 37,959 37,945 (1) The diluted weighted average number of limited partners’ units outstanding presented on the condensed consolidated statement of operations does not include 560,839 units and 334,942 units for the three months ended September 30, 2018 and 2017, respectively, and 560,839 units and 328,460 units for the nine months ended September 30, 2018 and 2017, respectively, as their effects would be anti-dilutive. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of adopting the new revenue standard impacted the Partnership’s consolidated January 1, 2018 balance sheet as follows (in thousands): Balance Sheet Balance as of Impact of Balance as of Assets Current Assets: Cash and cash equivalents $ 6,821 $ — $ 6,821 Accounts receivable, net of allowance 79,116 (6,122 ) 72,994 Prepaid expenses 4,580 — 4,580 Assets held for sale 1,016 — 1,016 Other current assets 21,453 — 21,453 Total current assets 112,986 (6,122 ) 106,864 Long-term accounts receivable - net of allowance 105,935 (6,527 ) 99,408 Cemetery property 333,404 (2,020 ) 331,384 Property and equipment, net of accumulated depreciation 114,090 — 114,090 Merchandise trusts, restricted, at fair value 515,456 — 515,456 Perpetual care trusts, restricted, at fair value 339,928 — 339,928 Deferred selling and obtaining costs 126,398 (18,557 ) 107,841 Deferred tax assets 84 7 91 Goodwill 24,862 — 24,862 Intangible assets 63,244 — 63,244 Other assets 19,695 — 19,695 Total assets $ 1,756,082 $ (33,219 ) $ 1,722,863 Liabilities and partners’ capital Current liabilities Accounts payable and accrued liabilities $ 43,023 $ 1,329 $ 44,352 Accrued interest 1,781 — 1,781 Current portion, long-term debt 1,002 — 1,002 Total current liabilities 45,806 1,329 47,135 Long-term debt, net of deferred financing costs 317,693 — 317,693 Deferred revenues, net 912,626 (9,558 ) 903,068 Deferred tax liabilities 9,638 (367 ) 9,271 Perpetual care trust corpus 339,928 — 339,928 Other long term liabilities 38,695 3,474 42,169 Total liabilities 1,664,386 (5,122 ) 1,659,264 Partners’ capital General partner (2,959 ) (292 ) (3,251 ) Common partner 94,655 (27,805 ) 66,850 Total partners’ equity 91,696 (28,097 ) 63,599 Total liabilities and partners’ equity $ 1,756,082 $ (33,219 ) $ 1,722,863 In accordance with FASB ASC 606 under the modified retrospective approach, the Partnership is required to disclose the impact of the new revenue standard by comparing the results of the current reporting period under FASB ASC 605. The impact of adopting ASC 606 on the Partnership’s condensed consolidated statement of operations for the three and nine months ended September 30, 2018 is as follows: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Statement of Operations As Reported Balances if Impact of As Reported Balances if Impact of Revenues: Cemetery: Interments $ 17,716 $ 17,732 $ (16 ) $ 58,130 $ 53,411 $ 4,719 Merchandise 18,023 17,920 103 51,766 50,156 1,610 Services 16,419 16,255 164 50,647 49,061 1,586 Investment and other 9,247 11,988 (2,741 ) 30,785 39,623 (8,838 ) Funeral home: Merchandise 5,581 5,621 (40 ) 19,532 19,464 68 Services 6,199 6,389 (190 ) 21,841 22,255 (414 ) Total revenues 73,185 75,905 (2,720 ) 232,701 233,970 (1,269 ) Costs and Expenses: Cost of goods sold $ 12,866 $ 13,407 $ (541 ) $ 39,387 $ 40,366 $ (979 ) Cemetery expenses 19,407 19,407 — 57,828 57,828 — Selling expense 14,251 14,483 (232 ) 47,673 45,586 2,087 General and administrative expense 10,916 10,918 (2 ) 32,037 32,039 (2 ) Corporate overhead 12,876 12,873 3 39,868 39,865 3 Depreciation and amortization 2,737 2,737 — 8,853 8,853 — Funeral home expenses: Merchandise 1,341 1,341 — 4,927 4,927 — Services 5,493 5,504 (11 ) 16,593 16,628 (35 ) Other 3,314 3,314 — 12,315 12,315 — Total costs and expenses 83,201 83,984 (783 ) 259,481 258,407 1,074 Other losses 702 702 — (4,503 ) (4,503 ) — Interest expense (7,638 ) (7,638 ) — (22,858 ) (22,858 ) — Loss before income taxes (16,952 ) (15,015 ) (1,937 ) (54,141 ) (51,798 ) (2,343 ) Income tax benefit (expense) (273 ) (273 ) — 1,976 1,899 77 Net loss $ (17,225 ) $ (15,288 ) $ (1,937 ) $ (52,165 ) $ (49,899 ) $ (2,266 ) |
ACCOUNTS RECEIVABLE, NET OF A_2
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Accounts Receivable, Net of Allowance | Long-term accounts receivable, net, consisted of the following at the dates indicated (in thousands): September 30, December 31, Customer receivables (1) $ 177,614 $ 225,380 Unearned finance income (1) (18,213 ) (20,534 ) Allowance for bad debt (1) (5,486 ) (19,795 ) Accounts receivable, net of allowance 153,915 185,051 Less: Current portion, net of allowance 64,150 79,116 Long-term portion, net of allowance $ 89,765 $ 105,935 |
Activity in Allowance for Contract Cancellations | Activity in the allowance for bad debt was as follows (in thousands): Nine Months Ended 2018 2017 Balance, beginning of period (1) $ 19,795 $ 26,153 Cumulative effect of accounting changes (12,876 ) — Provision for bad debt (1) 3,776 5,123 Charge offs, net (1) (5,209 ) (6,057 ) Balance, end of period $ 5,486 $ 25,219 (1) Upon adoption of ASC 606, the Partnership reclassified amounts due from customers for unfulfilled performance obligations on cancellable pre-need |
CEMETERY PROPERTY (Tables)
CEMETERY PROPERTY (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
Schedule of cemetery property | Cemetery property consisted of the following at the dates indicated (in thousands): September 30, December 31, (1) Cemetery land $ 258,197 $ 256,856 Mausoleum crypts and lawn crypts 75,527 76,548 Cemetery property $ 333,724 $ 333,404 (1) The information at December 31, 2017 has not been adjusted for the impact of the Partnership’s adoption of ASC 606 on January 1, 2018. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following at the dates indicated (in thousands): September 30, December 31, Buildings and improvements $ 129,589 $ 125,337 Furniture and equipment 58,573 57,514 Funeral home land 14,185 14,185 Property and equipment, gross 202,347 197,036 Less: Accumulated depreciation (88,673 ) (82,946 ) Property and equipment, net of accumulated depreciation $ 113,674 $ 114,090 |
PERPETUAL CARE TRUSTS (Tables)
PERPETUAL CARE TRUSTS (Tables) - Variable Interest Entity, Primary Beneficiary | 9 Months Ended |
Sep. 30, 2018 | |
Merchandise Trusts | |
Reconciliation of Trust Activities | A reconciliation of the Partnership’s merchandise trust activities for the nine months ended September 30, 2018 and 2017 is presented below (in thousands): Nine Months Ended 2018 2017 Balance, beginning of period $ 515,456 $ 507,079 Contributions 49,762 44,497 Distributions (53,321 ) (65,723 ) Interest and dividends 20,486 18,252 Capital gain distributions 405 927 Realized gains and losses (258 ) 14,192 Other than temporary impairment (11,977 ) — Taxes (337 ) (1,306 ) Fees (3,049 ) (1,855 ) Unrealized change in fair value 2,860 (3,882 ) Balance, end of period $ 520,027 $ 512,181 |
Cost and Market Value Associated with Assets Held in Trusts | The cost and market value associated with the assets held in the merchandise trusts as of September 30, 2018 and December 31, 2017 were as follows (in thousands): September 30, 2018 Fair Value Cost Gross Gross Fair Short-term investments 1 $ 10,573 $ — $ — $ 10,573 Fixed maturities: U.S. governmental securities 2 398 — (156 ) 242 Corporate debt securities 2 1,396 48 (351 ) 1,093 Total fixed maturities 1,794 48 (507 ) 1,335 Mutual funds - debt securities 1 206,264 70 (5,295 ) 201,039 Mutual funds - equity securities 1 56,956 2,579 — 59,535 Other investment funds (1) 202,951 2,160 (1,239 ) 203,872 Equity securities 1 22,307 3,982 (220 ) 26,069 Other invested assets 2 8,455 9 (4 ) 8,460 Total investments $ 509,300 $ 8,848 $ (7,265 ) $ 510,883 West Virginia Trust Receivable 9,144 9,144 Total $ 518,444 $ 8,848 $ (7,265 ) $ 520,027 (1) Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have redemption periods ranging from 1 to 30 days, and private credit funds, which have lockup periods of two to seven years with three potential one-year December 31, 2017 Fair Value Cost Gross Gross Fair Short-term investments 1 $ 10,421 $ — $ — $ 10,421 Fixed maturities: U.S. governmental securities 2 196 1 (65 ) 132 Corporate debt securities 2 1,204 52 (242 ) 1,014 Total fixed maturities 1,400 53 (307 ) 1,146 Mutual funds - debt securities 1 222,450 1,522 (1,211 ) 222,761 Mutual funds - equity securities 1 71,500 2,399 (6,292 ) 67,607 Other investment funds (1) 171,044 522 (401 ) 171,165 Equity securities 1 21,808 2,715 (277 ) 24,246 Other invested assets 2 9,013 — — 9,013 Total investments $ 507,636 $ 7,211 (8,488 ) $ 506,359 West Virginia Trust Receivable 9,097 — — 9,097 Total $ 516,733 $ 7,211 $ (8,488 ) $ 515,456 (1) Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have redemption periods ranging from 1 to 90 days and private credit funds, which have lockup periods of four to eight years with two potential one-year |
Contractual Maturities of Debt Securities Held in Trusts | The contractual maturities of debt securities as of September 30, 2018 were as follows (in thousands): Less than 1 year through 6 years through More than U.S. governmental securities $ — $ 136 $ 106 $ — Corporate debt securities 15 1,005 57 16 Total fixed maturities $ 15 $ 1,141 $ 163 $ 16 |
Aging of Unrealized Losses on Investments in Fixed Maturities and Equity Securities Held in Trusts | An aging of unrealized losses on the Partnership’s investments in debt and equity securities within the merchandise trusts as of September 30, 2018 and December 31, 2017 is presented below (in thousands): Less than 12 months 12 months or more Total September 30, 2018 Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities: U.S. governmental securities $ — $ — $ 240 $ 156 $ 240 $ 156 Corporate debt securities 112 5 561 346 673 351 Total fixed maturities 112 5 801 502 913 507 Mutual funds - debt securities 144,400 4,819 873 476 145,273 5,295 Mutual funds - equity securities — — — — — — Other investment funds 87,897 1,239 — — 87,897 1,239 Equity securities 1,710 55 852 165 2,562 220 Other invested assets — 4 — — — 4 Total $ 234,119 $ 6,122 $ 2,526 $ 1,143 $ 236,645 $ 7,265 Less than 12 months 12 months or more Total December 31, 2017 Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities: U.S. governmental securities $ — $ — $ 112 $ 65 $ 112 $ 65 Corporate debt securities 150 50 361 192 511 242 Total fixed maturities 150 50 473 257 623 307 Mutual funds - debt securities 102,526 912 1,462 299 103,988 1,211 Mutual funds - equity securities 51,196 6,292 — — 51,196 6,292 Other investment funds 48,140 401 — — 48,140 401 Equity securities 2,906 255 390 22 3,296 277 Total $ 204,918 $ 7,910 $ 2,325 $ 578 $ 207,243 $ 8,488 |
Perpetual care trusts | |
Reconciliation of Trust Activities | A reconciliation of the Partnership’s perpetual care trust activities for the nine months ended September 30, 2018 and 2017 is presented below (in thousands): Nine Months Ended 2018 2017 Balance, beginning of period $ 339,928 $ 333,780 Contributions 10,795 7,156 Distributions (13,790 ) (13,449 ) Interest and dividends 17,416 12,935 Capital gain distributions 612 403 Realized gains and losses 353 1,371 Other than temporary impairment (7,449 ) — Taxes (292 ) (420 ) Fees (4,087 ) (1,095 ) Unrealized change in fair value 1,536 (2,070 ) Balance, end of period $ 345,022 $ 338,611 |
Cost and Market Value Associated with Assets Held in Trusts | The cost and market value associated with the assets held in the perpetual care trusts as of September 30, 2018 and December 31, 2017 were as follows (in thousands): September 30, 2018 Fair Value Cost Gross Gross Fair Short-term investments 1 $ 10,452 $ — $ — $ 10,452 Fixed maturities: U.S. governmental securities 2 962 3 (133 ) 832 Corporate debt securities 2 5,029 97 (327 ) 4,799 Total fixed maturities 5,991 100 (460 ) 5,631 Mutual funds - debt securities 1 122,939 137 (1,476 ) 121,600 Mutual funds - equity securities 1 22,836 1,605 (105 ) 24,336 Other investment funds (1) 156,247 5,455 (2,830 ) 158,872 Equity securities 1 21,657 2,613 (169 ) 24,101 Other invested assets 2 26 4 — 30 Total investments $ 340,148 $ 9,914 $ (5,040 ) $ 345,022 (1) Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have a redemption period ranging from 1 to 30 days, and private credit funds, which have lockup periods ranging from two to eight years with three potential one-year December 31, 2017 Fair Value Cost Gross Gross Fair Short-term investments 1 $ 9,456 $ — $ — $ 9,456 Fixed maturities: U.S. governmental securities 2 506 4 (46 ) 464 Corporate debt securities 2 5,365 148 (191 ) 5,322 Total fixed maturities 5,871 152 (237 ) 5,786 Mutual funds - debt securities 1 141,511 1,974 (712 ) 142,773 Mutual funds - equity securities 1 32,707 1,757 (1,771 ) 32,693 Other investment funds (1) 124,722 2,630 (533 ) 126,819 Equity securities 1 22,076 1,648 (1,570 ) 22,154 Other invested assets 2 247 — — 247 Total investments $ 336,590 $ 8,161 $ (4,823 ) $ 339,928 (1) Other investment funds are measured at fair value using the net asset value per share practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the balance sheet. This asset class is composed of fixed income funds and equity funds, which have a redemption period ranging from 1 to 90 days, and private credit funds, which have lockup periods ranging from four to ten years with three potential one-year |
Contractual Maturities of Debt Securities Held in Trusts | The contractual maturities of debt securities as of September 30, 2018 were as follows (in thousands): Less than 1 year through 6 years through More than U.S. governmental securities $ — $ 412 $ 387 $ 33 Corporate debt securities 392 4,032 284 91 Total fixed maturities $ 392 $ 4,444 $ 671 $ 124 |
Aging of Unrealized Losses on Investments in Fixed Maturities and Equity Securities Held in Trusts | An aging of unrealized losses on the Partnership’s investments in debt and equity securities within the perpetual care trusts as of September 30, 2018 and December 31, 2017 is presented below (in thousands): Less than 12 months 12 months or more Total September 30, 2018 Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities: U.S. governmental securities $ 2 $ — $ 779 $ 133 $ 781 $ 133 Corporate debt securities 464 11 2,901 316 3,365 327 Total fixed maturities 466 11 3,680 449 4,146 460 Mutual funds - debt securities 67,840 1,255 3,006 221 70,846 1,476 Mutual funds - equity securities 1,438 105 — — 1,438 105 Other investment funds 45,598 2,830 — — 45,598 2,830 Equity securities 3,519 124 548 45 4,067 169 Total $ 118,861 $ 4,325 $ 7,234 $ 715 $ 126,095 $ 5,040 Less than 12 months 12 months or more Total December 31, 2017 Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities: U.S. governmental securities $ — $ — $ 399 $ 46 $ 399 $ 46 Corporate debt securities 994 20 2,271 171 3,265 191 Total fixed maturities 994 20 2,670 217 3,664 237 Mutual funds - debt securities 37,090 289 12,793 423 49,883 712 Mutual funds - equity securities 16,668 1,754 36 17 16,704 1,771 Other investment funds 42,606 533 — — 42,606 533 Equity securities 9,516 1,510 112 60 9,628 1,570 Total $ 106,874 $ 4,106 $ 15,611 $ 717 $ 122,485 $ 4,823 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Outstanding Debt | Total debt consisted of the following at the dates indicated (in thousands): September 30, December 31, Credit facility $ 150,034 $ 153,423 7.875% Senior Notes, due June 2021 173,480 173,098 Notes payable - acquisition debt 146 304 Notes payable - acquisition non-competes 391 378 Insurance and vehicle financing 1,150 1,280 Less deferred financing costs, net of accumulated amortization (9,914 ) (9,788 ) Total debt 315,287 318,695 Less current maturities (1,184 ) (1,002 ) Total long-term debt $ 314,103 $ 317,693 |
Redemption Price Expressed as Percentage of Principal Amount | The Partnership may redeem the Senior Notes at any time, in whole or in part, at the redemption prices (expressed as percentages of the principal amount) set forth below, together with accrued and unpaid interest, if any, to the redemption date, if redeemed during the 12-month Year Percentage 2018 101.969 % 2019 and thereafter 100.000 % |
DEFERRED REVENUES AND COSTS (Ta
DEFERRED REVENUES AND COSTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Deferred Revenues and Related Costs | Deferred revenues and related costs consisted of the following at the dates indicated (in thousands): September 30, December 31, Deferred contract revenues (1) $ 835,833 $ 808,549 Deferred merchandise trust investment income 106,389 105,354 Deferred merchandise trust unrealized gains (losses) 1,583 (1,277 ) Deferred revenues $ 943,805 $ 912,626 (1) Upon the adoption of ASC 606, the Partnership eliminated the allowance for cancellation of these performance obligations. The components of Deferred revenues, net in the Partnership’s unaudited Condensed Consolidated Balance Sheet at September 30, 2018 and December 31, 2017 were as follows (in thousands): September 30, December 31, Deferred revenue 967,227 912,626 Amounts due from customers for unfulfilled performance obligations on cancellable pre-need (1) (23,422 ) — Deferred revenue, net $ 943,805 912,626 (1) Prior to the adoption of “ Revenue from Contracts with Customers” pre-need |
Schedule of Deferred Selling and Obtaining Costs | The activity in deferred selling and obtaining costs was as follows (in thousands): September 30, Deferred selling and obtaining costs, beginning of period $ 126,398 Cumulative effect of accounting change (18,557 ) Change in deferred selling and obtaining costs 4,780 Deferred selling and obtaining costs, end of period $ 112,621 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Fixed Rent for Cemeteries | In connection with the Partnership’s lease and management agreements with the Archdiocese of Philadelphia, it has committed to pay aggregate fixed rent of $36.0 million in the following amounts: Lease Years 1-5 None Lease Years 6-20 $1,000,000 per Lease Year Lease Years 21-25 $1,200,000 per Lease Year Lease Years 26-35 $1,500,000 per Lease Year Lease Years 36-60 None |
SUPPLEMENTAL CONDENSED CONSOL_3
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS September 30, 2018 Parent Subsidiary Guarantor Non- Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ — $ 6,142 $ 1,901 $ — $ 8,043 Assets held for sale — — 1,083 — — 1,083 Other current assets — 3,962 72,932 15,619 — 92,513 Total current assets — 3,962 80,157 17,520 — 101,639 Long-term accounts receivable — 3,139 74,408 12,218 — 89,765 Cemetery and funeral home property and equipment — 751 412,824 33,823 — 447,398 Merchandise trusts — — — 520,027 — 520,027 Perpetual care trusts — — — 345,022 — 345,022 Deferred selling and obtaining costs — 5,511 88,666 18,444 — 112,621 Goodwill and intangible assets — — 25,872 60,895 — 86,767 Other assets — — 20,660 3,984 — 24,644 Investments in and amounts due from affiliates eliminated upon consolidation 81,861 19,436 566,392 — (667,689 ) — Total assets $ 81,861 $ 32,799 $ 1,268,979 $ 1,011,933 $ (667,689 ) $ 1,727,883 Liabilities and Partners’ Capital Current liabilities $ — $ 177 $ 61,437 $ 1,373 $ — $ 62,987 Long-term debt, net of deferred financing costs 68,401 105,079 140,623 — — 314,103 Deferred revenues — 33,273 795,945 114,587 — 943,805 Perpetual care trust corpus — — — 345,022 — 345,022 Other long-term liabilities — — 33,265 15,241 — 48,506 Due to affiliates — — 173,480 574,305 (747,785 ) — Total liabilities 68,401 138,529 1,204,750 1,050,528 (747,785 ) 1,714,423 Partners’ capital 13,460 (105,730 ) 64,229 (38,595 ) 80,096 13,460 Total liabilities and partners’ capital $ 81,861 $ 32,799 $ 1,268,979 $ 1,011,933 $ (667,689 ) $ 1,727,883 December 31, 2017 (1) Parent Subsidiary Guarantor Non- Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ — $ 4,216 $ 2,605 $ — $ 6,821 Assets held for sale 1,016 1,016 Other current assets — 3,882 83,901 17,366 — 105,149 Total current assets — 3,882 89,133 19,971 — 112,986 Long-term accounts receivable — 2,179 89,275 14,481 — 105,935 Cemetery and funeral home property and equipment — 738 411,936 34,820 — 447,494 Merchandise trusts — — — 515,456 — 515,456 Perpetual care trusts — — — 339,928 — 339,928 Deferred selling and obtaining costs — 6,171 98,639 21,588 — 126,398 Goodwill and intangible assets — — 26,347 61,759 — 88,106 Other assets — — 16,995 2,784 — 19,779 Investments in and amounts due from affiliates eliminated upon consolidation 159,946 82,836 556,783 — (799,565 ) — Total assets $ 159,946 $ 95,806 $ 1,289,108 $ 1,010,787 $ (799,565 ) $ 1,756,082 Liabilities and Partners’ Capital Current liabilities $ — $ 72 $ 44,380 $ 1,354 $ — $ 45,806 Long-term debt, net of deferred financing costs 68,250 104,848 144,595 — — 317,693 Deferred revenues — 33,469 773,516 105,641 — 912,626 Perpetual care trust corpus — — — 339,928 — 339,928 Other long-term liabilities — — 34,149 14,184 — 48,333 Due to affiliates — — 173,098 576,025 (749,123 ) — Total liabilities 68,250 138,389 1,169,738 1,037,132 (749,123 ) 1,664,386 Partners’ capital 91,696 (42,583 ) 119,370 (26,345 ) (50,442 ) 91,696 Total liabilities and partners’ capital $ 159,946 $ 95,806 $ 1,289,108 $ 1,010,787 $ (799,565 ) $ 1,756,082 (1) The information at December 31, 2017 has not been adjusted for the impact of the Partnership’s adoption of ASC 606 on January 1, 2018. |
Condensed Consolidating Statements of Operations | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended September 30, 2018 Parent Subsidiary Guarantor Non- Eliminations Consolidated Total revenues $ — $ 1,513 $ 61,254 $ 12,116 $ (1,698 ) $ 73,185 Total costs and expenses — (3,192 ) (68,979 ) (12,728 ) 1,698 (83,201 ) Other income (loss) — — 702 — — 702 Net loss from equity investment in subsidiaries (15,867 ) (13,280 ) — — 29,147 — Interest expense (1,358 ) (2,087 ) (3,935 ) (258 ) — (7,638 ) Net income (loss) from continuing operations before income taxes (17,225 ) (17,046 ) (10,958 ) (870 ) 29,147 (16,952 ) Income tax benefit (expense) — — (273 ) — — (273 ) Net income (loss) $ (17,225 ) $ (17,046 ) $ (11,231 ) $ (870 ) $ 29,147 $ (17,225 ) Three Months Ended September 30, 2017 (1) Parent Subsidiary Guarantor Non-Guarantor Eliminations Consolidated Total revenues $ — $ 1,842 $ 69,423 $ 14,648 $ (1,879 ) $ 84,034 Total costs and expenses — (2,883 ) (71,234 ) (14,144 ) 1,879 (86,382 ) Other income (loss) — — 338 — — 338 Net loss from equity investment in subsidiaries (8,218 ) (8,674 ) — — 16,892 — Interest expense (1,358 ) (2,087 ) (3,264 ) (235 ) — (6,944 ) Net income (loss) from continuing operations before income taxes (9,576 ) (11,802 ) (4,737 ) 269 16,892 (8,954 ) Income tax benefit (expense) — — (622 ) — — (622 ) Net income (loss) $ (9,576 ) $ (11,802 ) $ (5,359 ) $ 269 $ 16,892 $ (9,576 ) (1) The information for the three months ended September 30, 2017 has not been adjusted for the impact of the Partnership’s adoption of ASC 606 on January 1, 2018. Nine Months Ended September 30, 2018 Parent Subsidiary Guarantor Non- Eliminations Consolidated Total revenues $ — $ 4,563 $ 196,638 $ 38,390 $ (6,890 ) $ 232,701 Total costs and expenses — (10,278 ) (214,804 ) (41,289 ) 6,890 (259,481 ) Other loss — — (4,503 ) — — (4,503 ) Net loss from equity investment in subsidiaries (48,090 ) (40,382 ) — — 88,472 — Interest expense (4,075 ) (6,261 ) (11,755 ) (767 ) — (22,858 ) Net income (loss) from continuing operations before income taxes (52,165 ) (52,358 ) (34,424 ) (3,666 ) 88,472 (54,141 ) Income tax benefit — — 1,976 — — 1,976 Net income (loss) $ (52,165 ) $ (52,358 ) $ (32,448 ) $ (3,666 ) $ 88,472 $ (52,165 ) Nine Months Ended September 30, 2017 (1) Parent Subsidiary Guarantor Non- Eliminations Consolidated Total revenues $ — $ 5,381 $ 209,331 $ 44,785 $ (6,565 ) $ 252,932 Total costs and expenses — (10,090 ) (214,855 ) (41,062 ) 6,565 (259,442 ) Other loss — — (733 ) — — (733 ) Net loss from equity investment in subsidiaries (25,644 ) (27,135 ) — — 52,779 — Interest expense (4,075 ) (6,261 ) (9,366 ) (689 ) — (20,391 ) Net income (loss) from continuing operations before income taxes (29,719 ) (38,105 ) (15,623 ) 3,034 52,779 (27,634 ) Income tax expense — — (2,085 ) — — (2,085 ) Net income (loss) $ (29,719 ) $ (38,105 ) $ (17,708 ) $ 3,034 $ 52,779 $ (29,719 ) (1) The information for the nine months ended September 30, 2017 has not been adjusted for the impact of the Partnership’s adoption of ASC 606 on January 1, 2018. |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Nine Months Ended September 30, 2018 Parent Subsidiary Guarantor Non- Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ 363 $ 29,462 $ (78 ) $ (10,336 ) $ 19,411 Cash Flows From Investing Activities: Cash paid for acquisitions and capital expenditures — (363 ) (9,888 ) (626 ) — (10,877 ) Net cash used in investing activities — (363 ) (9,888 ) (626 ) — (10,877 ) Cash Flows From Financing Activities: Cash distributions — — — — — — Payments to affiliates — — (10,336 ) — 10,336 — Net borrowings of debt — — (4,044 ) — — (4,044 ) Other financing activities — — (3,268 ) — — (3,268 ) Net cash provided by (used in) financing activities — — (17,648 ) — 10,336 (7,312 ) Net increase (decrease) in cash and cash equivalents — — 1,926 (704 ) — 1,222 Cash and cash equivalents - Beginning of period — — 4,216 2,605 6,821 Cash and cash equivalents - End of period $ — $ — $ 6,142 $ 1,901 $ — $ 8,043 Nine Months Ended September 30, 2017 (1) Parent Subsidiary Guarantor Non- Eliminations Consolidated Net cash provided by (used in) operating activities $ 24,545 $ 57 $ 34,863 $ 117 $ (34,881 ) $ 24,701 Cash Flows From Investing Activities: Cash paid for acquisitions and capital expenditures — (57 ) (6,105 ) (696 ) — (6,858 ) Net cash used in investing activities — (57 ) (6,105 ) (696 ) — (6,858 ) Cash Flows From Financing Activities: Cash distributions (24,545 ) — — — — (24,545 ) Payments to affiliates — — (34,881 ) — 34,881 — Net borrowings of debt — — 4,165 — — 4,165 Proceeds from issuance of common units — — — — — — Other financing activities — — (1,573 ) — — (1,573 ) Net cash provided by (used in) financing activities (24,545 ) — (32,289 ) — 34,881 (21,953 ) Net increase (decrease) in cash and cash equivalents — — (3,531 ) (579 ) — (4,110 ) Cash and cash equivalents - Beginning of period — — 9,145 3,425 — 12,570 Cash and cash equivalents - End of period $ — $ — $ 5,614 $ 2,846 $ — $ 8,460 (1) The information for the nine months ended September 30, 2017 has not been adjusted for the impact of the Partnership’s adoption of ASC 606 on January 1, 2018. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Operating segment data for and as of the periods indicated were as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 (1) 2018 2017 (1) STATEMENT OF OPERATIONS DATA: Cemetery Operations: Revenues $ 61,405 $ 69,543 $ 191,328 $ 205,816 Operating costs and expenses (57,440 ) (58,728 ) (176,925 ) (172,903 ) Depreciation and amortization (1,858 ) (2,175 ) (6,043 ) (6,734 ) Segment income $ 2,107 $ 8,640 $ 8,360 $ 26,179 Funeral Home Operations: Revenues $ 11,780 $ 14,491 $ 41,373 $ 47,116 Operating costs and expenses (10,148 ) (12,581 ) (33,835 ) (37,449 ) Depreciation and amortization (652 ) (753 ) (2,066 ) (2,369 ) Segment income $ 980 $ 1,157 $ 5,472 $ 7,298 Reconciliation of segment income to net loss: Cemetery Operations $ 2,107 $ 8,640 $ 8,360 $ 26,179 Funeral Home Operations 980 1,157 5,472 7,298 Total segment income 3,087 9,797 13,832 33,477 Corporate overhead (12,876 ) (11,887 ) (39,868 ) (39,058 ) Corporate depreciation and amortization (227 ) (258 ) (744 ) (929 ) Other gains (losses), net 702 338 (4,503 ) (733 ) Interest expense (7,638 ) (6,944 ) (22,858 ) (20,391 ) Income tax benefit (expense) (273 ) (622 ) 1,976 (2,085 ) Net loss $ (17,225 ) $ (9,576 ) $ (52,165 ) $ (29,719 ) CASH FLOW DATA: Capital expenditures: Cemetery Operations $ 2,105 $ 4,525 $ 9,378 $ 7,501 Funeral Home Operations 246 76 465 203 Corporate 187 48 321 256 Total capital expenditures $ 2,538 $ 4,649 $ 10,164 $ 7,960 BALANCE SHEET DATA September 30, December 31, Assets: Cemetery Operations $ 1,570,110 $ 1,594,091 Funeral Home Operations 141,350 152,934 Corporate 16,423 9,057 Total assets $ 1,727,883 $ 1,756,082 Goodwill: Cemetery Operations $ 24,862 $ 24,862 Funeral Home Operations — — Total goodwill $ 24,862 $ 24,862 (1) The results for the three and nine months ended September 30, 2017 have not been adjusted for the impact of the Partnership’s adoption of ASC 606 on January 1, 2018. |
SUPPLEMENTAL CONDENSED CONSOL_4
SUPPLEMENTAL CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The tables presented below provide supplemental information to the condensed consolidated statements of cash flows regarding contract origination and maturity activity included in the pertinent captions on the Partnership’s condensed consolidated statements of cash flows (in thousands): Nine Months Ended 2018 2017 Pre-need/at-need $ (95,267 ) $ (78,419 ) Cash receipts from sales on credit (post-origination) 100,841 69,843 Changes in Accounts receivable, net of allowance $ 5,574 $ (8,576 ) Deferrals: Cash receipts from customer deposits at origination, net of refunds $ 114,132 $ 113,177 Withdrawals of realized income from merchandise trusts during the period 13,815 10,592 Pre-need/at-need 95,267 78,419 Undistributed merchandise trust investment earnings, net 357 (32,299 ) Recognition: Merchandise trust investment income, net withdrawn as of end of period (7,211 ) (7,851 ) Recognized maturities of customer contracts collected as of end of period (137,265 ) (148,630 ) Recognized maturities of customer contracts uncollected as of end of period (38,734 ) (25,527 ) Changes in Deferred revenues $ 40,361 $ (12,119 ) |
GENERAL - Additional Informatio
GENERAL - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018USD ($)PropertyState | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)PropertyStateSegment | Sep. 30, 2017USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 04, 2016 | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Notes receivable interest, additional interest above prime rate | 3.75% | ||||||
Number of reportable segments | Segment | 2 | ||||||
Deferred selling and obtaining costs | $ 112,621 | $ 112,621 | $ 107,841 | $ 126,398 | |||
Change in deferred selling and obtaining costs | 600 | 4,780 | $ 7,246 | ||||
Partners' capital | 13,460 | 13,460 | 63,599 | 91,696 | |||
Accounts receivable, net of allowance | 64,150 | 64,150 | 72,994 | 79,116 | |||
Long-term accounts receivable, net of allowance | 89,765 | 89,765 | 99,408 | 105,935 | |||
Remaining performance obligation | 23,422 | 23,422 | |||||
Allowance for cancellation reserve | 12,900 | 12,900 | |||||
Customer refund liability | 2,100 | 2,100 | |||||
Other long-term liabilities | 41,776 | 41,776 | 42,169 | 38,695 | |||
Deferred tax liabilities | 6,730 | 6,730 | 9,271 | 9,638 | |||
Net loss | $ (17,225) | $ (9,576) | $ (52,165) | $ (29,719) | |||
Maximum | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Product sales, payment term | 60 months | ||||||
StoneMor Operating LLC | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Ownership percentage subsidiaries by the parent | 100.00% | 100.00% | 100.00% | ||||
Cemetery | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Number of operating locations | Property | 31 | 31 | |||||
Cemetery | US and Puerto Rico | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Number of operating locations | Property | 322 | 322 | |||||
Number of states | State | 27 | 27 | |||||
Cemetery | Consolidated Properties | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Number of operating locations | Property | 16 | 16 | |||||
Cemetery | Unconsolidated Properties | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Number of operating locations | Property | 15 | 15 | |||||
Cemetery | Wholly Owned Properties | US and Puerto Rico | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Number of operating locations | Property | 291 | 291 | |||||
Cemetery | Managed Properties | US and Puerto Rico | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Number of operating locations | Property | 31 | 31 | |||||
Funeral Home | US and Puerto Rico | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Number of operating locations | Property | 90 | 90 | |||||
Number of states | State | 17 | 17 | |||||
Funeral Home | Cemetery Property | US and Puerto Rico | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Number of operating locations | Property | 44 | 44 | |||||
Impact of Adoption of FASB ASC 606 | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Deferred selling and obtaining costs | 18,600 | ||||||
Partners' capital | 28,100 | ||||||
Accounts receivable, net of allowance | $ 11,400 | $ 11,400 | |||||
Long-term accounts receivable, net of allowance | 14,100 | 14,100 | |||||
Remaining performance obligation | 25,500 | 25,500 | |||||
Decrease of partners' capital related to timing of recognition of nonrefundable upfront fees | 6,400 | ||||||
Other long-term liabilities | 3,500 | ||||||
Deferred tax liabilities | $ 400 | ||||||
Impact of Adoption of FASB ASC 606 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Deferred selling and obtaining costs | (18,557) | ||||||
Partners' capital | (28,097) | ||||||
Accounts receivable, net of allowance | (6,122) | ||||||
Long-term accounts receivable, net of allowance | (6,527) | ||||||
Other long-term liabilities | 3,474 | ||||||
Deferred tax liabilities | $ (367) | ||||||
Net loss | $ (1,937) | $ (2,266) |
GENERAL - Reconciliation of Net
GENERAL - Reconciliation of Net Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Net loss | $ (17,225) | $ (9,576) | $ (52,165) | $ (29,719) |
Less: Incentive distribution right ("IDR") payments to general partner | 0 | 0 | 0 | 0 |
Net loss to allocate to general and common limited partners | (17,225) | (9,576) | (52,165) | (29,719) |
General partner's interest excluding IDRs | (179) | (99) | (543) | (309) |
Limited partners' interest | $ (17,046) | $ (9,477) | $ (51,622) | $ (29,410) |
GENERAL - Reconciliation of Par
GENERAL - Reconciliation of Partnership's Weighted Average Number of Common Limited Partner Units (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Weighted average number of common limited partner units - basic and diluted | 37,959 | 37,958 | 37,959 | 37,945 |
GENERAL - Reconciliation of P_2
GENERAL - Reconciliation of Partnership's Weighted Average Number of Common Limited Partner Units (Parenthetical) (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Units excluded from the calculation of diluted weighted average number of limited partners' units, because of their anti-dilutive effect | 560,839 | 334,942 | 560,839 | 328,460 |
GENERAL - Cumulative Effect of
GENERAL - Cumulative Effect of Adopting New Revenue Standard Impacted Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | |||||
Cash and cash equivalents | $ 8,043 | $ 6,821 | $ 6,821 | $ 8,460 | $ 12,570 |
Accounts receivable, net of allowance | 64,150 | 72,994 | 79,116 | ||
Prepaid expenses | 9,218 | 4,580 | 4,580 | ||
Assets held for sale | 1,083 | 1,016 | 1,016 | ||
Other current assets | 19,145 | 21,453 | 21,453 | ||
Total current assets | 101,639 | 106,864 | 112,986 | ||
Long-term accounts receivable - net of allowance | 89,765 | 99,408 | 105,935 | ||
Cemetery property | 333,724 | 331,384 | 333,404 | ||
Property and equipment, net of accumulated depreciation | 113,674 | 114,090 | 114,090 | ||
Merchandise trusts, restricted, at fair value | 520,027 | 515,456 | 515,456 | ||
Perpetual care trusts, restricted, at fair value | 345,022 | 339,928 | 339,928 | ||
Deferred selling and obtaining costs | 112,621 | 107,841 | 126,398 | ||
Deferred tax assets | 95 | 91 | 84 | ||
Goodwill | 24,862 | 24,862 | 24,862 | ||
Intangible assets | 61,905 | 63,244 | 63,244 | ||
Other assets | 24,549 | 19,695 | 19,695 | ||
Total assets | 1,727,883 | 1,722,863 | 1,756,082 | ||
Current liabilities | |||||
Accounts payable and accrued liabilities | 56,472 | 44,352 | 43,023 | ||
Accrued interest | 5,331 | 1,781 | 1,781 | ||
Current portion, long-term debt | 1,184 | 1,002 | 1,002 | ||
Total current liabilities | 62,987 | 47,135 | 45,806 | ||
Long-term debt, net of deferred financing costs | 314,103 | 317,693 | 317,693 | ||
Deferred revenues, net | 943,805 | 903,068 | 912,626 | ||
Deferred tax liabilities | 6,730 | 9,271 | 9,638 | ||
Perpetual care trust corpus | 345,022 | 339,928 | 339,928 | ||
Other long term liabilities | 41,776 | 42,169 | 38,695 | ||
Total liabilities | 1,714,423 | 1,659,264 | 1,664,386 | ||
Partners' capital | |||||
General partner | (3,794) | (3,251) | (2,959) | ||
Common partner | 17,254 | 66,850 | 94,655 | ||
Total partners' equity | 13,460 | 63,599 | 91,696 | ||
Total liabilities and partners' equity | 1,727,883 | 1,722,863 | 1,756,082 | ||
Impact of Adoption of FASB ASC 606 | |||||
Current assets: | |||||
Accounts receivable, net of allowance | 11,400 | ||||
Long-term accounts receivable - net of allowance | $ 14,100 | ||||
Deferred selling and obtaining costs | 18,600 | ||||
Current liabilities | |||||
Deferred tax liabilities | 400 | ||||
Other long term liabilities | 3,500 | ||||
Partners' capital | |||||
Total partners' equity | $ 28,100 | ||||
Impact of Adoption of FASB ASC 606 | Balances if Reported Under FASB ASC 605 | |||||
Current assets: | |||||
Cash and cash equivalents | 6,821 | ||||
Accounts receivable, net of allowance | 79,116 | ||||
Prepaid expenses | 4,580 | ||||
Assets held for sale | 1,016 | ||||
Other current assets | 21,453 | ||||
Total current assets | 112,986 | ||||
Long-term accounts receivable - net of allowance | 105,935 | ||||
Cemetery property | 333,404 | ||||
Property and equipment, net of accumulated depreciation | 114,090 | ||||
Merchandise trusts, restricted, at fair value | 515,456 | ||||
Perpetual care trusts, restricted, at fair value | 339,928 | ||||
Deferred selling and obtaining costs | 126,398 | ||||
Deferred tax assets | 84 | ||||
Goodwill | 24,862 | ||||
Intangible assets | 63,244 | ||||
Other assets | 19,695 | ||||
Total assets | 1,756,082 | ||||
Current liabilities | |||||
Accounts payable and accrued liabilities | 43,023 | ||||
Accrued interest | 1,781 | ||||
Current portion, long-term debt | 1,002 | ||||
Total current liabilities | 45,806 | ||||
Long-term debt, net of deferred financing costs | 317,693 | ||||
Deferred revenues, net | 912,626 | ||||
Deferred tax liabilities | 9,638 | ||||
Perpetual care trust corpus | 339,928 | ||||
Other long term liabilities | 38,695 | ||||
Total liabilities | 1,664,386 | ||||
Partners' capital | |||||
General partner | (2,959) | ||||
Common partner | 94,655 | ||||
Total partners' equity | 91,696 | ||||
Total liabilities and partners' equity | 1,756,082 | ||||
Impact of Adoption of FASB ASC 606 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||
Current assets: | |||||
Accounts receivable, net of allowance | (6,122) | ||||
Total current assets | (6,122) | ||||
Long-term accounts receivable - net of allowance | (6,527) | ||||
Cemetery property | (2,020) | ||||
Deferred selling and obtaining costs | (18,557) | ||||
Deferred tax assets | 7 | ||||
Total assets | (33,219) | ||||
Current liabilities | |||||
Accounts payable and accrued liabilities | 1,329 | ||||
Total current liabilities | 1,329 | ||||
Deferred revenues, net | (9,558) | ||||
Deferred tax liabilities | (367) | ||||
Other long term liabilities | 3,474 | ||||
Total liabilities | (5,122) | ||||
Partners' capital | |||||
General partner | (292) | ||||
Common partner | (27,805) | ||||
Total partners' equity | (28,097) | ||||
Total liabilities and partners' equity | $ (33,219) |
GENERAL - Cumulative Effect o_2
GENERAL - Cumulative Effect of Adopting New Revenue Standard Impacted Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | ||||
Revenues | $ 73,185 | $ 84,034 | $ 232,701 | $ 252,932 |
Costs and Expenses: | ||||
Cost of goods sold | 12,866 | 11,910 | 39,387 | 37,472 |
Selling expense | 14,251 | 17,082 | 47,673 | 49,164 |
General and administrative expense | 10,916 | 9,752 | 32,037 | 29,462 |
Corporate overhead | 12,876 | 11,887 | 39,868 | 39,058 |
Depreciation and amortization | 2,737 | 3,186 | 8,853 | 10,032 |
Total costs and expenses | 83,201 | 86,382 | 259,481 | 259,442 |
Other losses | 702 | 338 | (4,503) | (733) |
Interest expense | (7,638) | (6,944) | (22,858) | (20,391) |
Loss before income taxes | (16,952) | (8,954) | (54,141) | (27,634) |
Income tax benefit (expense) | (273) | (622) | 1,976 | (2,085) |
Net loss | (17,225) | (9,576) | (52,165) | (29,719) |
Cemetery | ||||
Revenues: | ||||
Revenues | 61,405 | 69,543 | 191,328 | 205,816 |
Costs and Expenses: | ||||
Depreciation and amortization | 1,858 | 2,175 | 6,043 | 6,734 |
Total costs and expenses | 19,407 | 19,984 | 57,828 | 56,805 |
Cemetery | Interments | ||||
Revenues: | ||||
Revenues | 17,716 | 17,841 | 58,130 | 55,460 |
Cemetery | Merchandise | ||||
Revenues: | ||||
Revenues | 18,023 | 20,051 | 51,766 | 57,182 |
Cemetery | Services | ||||
Revenues: | ||||
Revenues | 16,419 | 17,729 | 50,647 | 52,861 |
Cemetery | Investment and other | ||||
Revenues: | ||||
Revenues | 9,247 | 13,922 | 30,785 | 40,313 |
Funeral Home | ||||
Revenues: | ||||
Revenues | 11,780 | 14,491 | 41,373 | 47,116 |
Costs and Expenses: | ||||
Depreciation and amortization | 652 | 753 | 2,066 | 2,369 |
Total costs and expenses | 83,201 | 259,481 | ||
Funeral Home | Merchandise | ||||
Revenues: | ||||
Revenues | 5,581 | 6,591 | 19,532 | 21,176 |
Costs and Expenses: | ||||
Total costs and expenses | 1,341 | 1,793 | 4,927 | 5,176 |
Funeral Home | Services | ||||
Revenues: | ||||
Revenues | 6,199 | 7,900 | 21,841 | 25,940 |
Costs and Expenses: | ||||
Total costs and expenses | 5,493 | 5,442 | 16,593 | 16,595 |
Funeral Home | Investment and other | ||||
Costs and Expenses: | ||||
Total costs and expenses | 3,314 | $ 5,346 | 12,315 | $ 15,678 |
Balances if Reported Under FASB ASC 605 | Impact of Adoption of FASB ASC 606 | ||||
Revenues: | ||||
Revenues | 75,905 | 233,970 | ||
Costs and Expenses: | ||||
Cost of goods sold | 13,407 | 40,366 | ||
Selling expense | 14,483 | 45,586 | ||
General and administrative expense | 10,918 | 32,039 | ||
Corporate overhead | 12,873 | 39,865 | ||
Depreciation and amortization | 2,737 | 8,853 | ||
Other losses | 702 | (4,503) | ||
Interest expense | (7,638) | (22,858) | ||
Loss before income taxes | (15,015) | (51,798) | ||
Income tax benefit (expense) | (273) | 1,899 | ||
Net loss | (15,288) | (49,899) | ||
Balances if Reported Under FASB ASC 605 | Cemetery | Impact of Adoption of FASB ASC 606 | ||||
Costs and Expenses: | ||||
Total costs and expenses | 19,407 | 57,828 | ||
Balances if Reported Under FASB ASC 605 | Cemetery | Impact of Adoption of FASB ASC 606 | Interments | ||||
Revenues: | ||||
Revenues | 17,732 | 53,411 | ||
Balances if Reported Under FASB ASC 605 | Cemetery | Impact of Adoption of FASB ASC 606 | Merchandise | ||||
Revenues: | ||||
Revenues | 17,920 | 50,156 | ||
Balances if Reported Under FASB ASC 605 | Cemetery | Impact of Adoption of FASB ASC 606 | Services | ||||
Revenues: | ||||
Revenues | 16,255 | 49,061 | ||
Balances if Reported Under FASB ASC 605 | Cemetery | Impact of Adoption of FASB ASC 606 | Investment and other | ||||
Revenues: | ||||
Revenues | 11,988 | 39,623 | ||
Balances if Reported Under FASB ASC 605 | Funeral Home | Impact of Adoption of FASB ASC 606 | ||||
Costs and Expenses: | ||||
Total costs and expenses | 83,984 | 258,407 | ||
Balances if Reported Under FASB ASC 605 | Funeral Home | Impact of Adoption of FASB ASC 606 | Merchandise | ||||
Revenues: | ||||
Revenues | 5,621 | 19,464 | ||
Costs and Expenses: | ||||
Total costs and expenses | 1,341 | 4,927 | ||
Balances if Reported Under FASB ASC 605 | Funeral Home | Impact of Adoption of FASB ASC 606 | Services | ||||
Revenues: | ||||
Revenues | 6,389 | 22,255 | ||
Costs and Expenses: | ||||
Total costs and expenses | 5,504 | 16,628 | ||
Balances if Reported Under FASB ASC 605 | Funeral Home | Impact of Adoption of FASB ASC 606 | Investment and other | ||||
Costs and Expenses: | ||||
Total costs and expenses | 3,314 | 12,315 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Impact of Adoption of FASB ASC 606 | ||||
Revenues: | ||||
Revenues | (2,720) | (1,269) | ||
Costs and Expenses: | ||||
Cost of goods sold | (541) | (979) | ||
Selling expense | (232) | 2,087 | ||
General and administrative expense | (2) | (2) | ||
Corporate overhead | 3 | 3 | ||
Loss before income taxes | (1,937) | (2,343) | ||
Income tax benefit (expense) | 77 | |||
Net loss | (1,937) | (2,266) | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Cemetery | Impact of Adoption of FASB ASC 606 | Interments | ||||
Revenues: | ||||
Revenues | (16) | 4,719 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Cemetery | Impact of Adoption of FASB ASC 606 | Merchandise | ||||
Revenues: | ||||
Revenues | 103 | 1,610 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Cemetery | Impact of Adoption of FASB ASC 606 | Services | ||||
Revenues: | ||||
Revenues | 164 | 1,586 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Cemetery | Impact of Adoption of FASB ASC 606 | Investment and other | ||||
Revenues: | ||||
Revenues | (2,741) | (8,838) | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Funeral Home | Impact of Adoption of FASB ASC 606 | ||||
Costs and Expenses: | ||||
Total costs and expenses | (783) | 1,074 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Funeral Home | Impact of Adoption of FASB ASC 606 | Merchandise | ||||
Revenues: | ||||
Revenues | (40) | 68 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Funeral Home | Impact of Adoption of FASB ASC 606 | Services | ||||
Revenues: | ||||
Revenues | (190) | (414) | ||
Costs and Expenses: | ||||
Total costs and expenses | $ (11) | $ (35) |
ACQUISITIONS - Additional Infor
ACQUISITIONS - Additional Information (Detail) $ in Thousands | Jan. 19, 2018USD ($)Property | Sep. 30, 2018USD ($) |
Business Acquisition [Line Items] | ||
Payments to acquire businesses | $ 1,667 | |
Cemetery Properties In Wisconsin | ||
Business Acquisition [Line Items] | ||
Number of properties acquired | Property | 6 | |
Consideration paid - cash | $ 2,500 | |
Payments to acquire businesses | $ 800 |
IMPAIRMENT & OTHER LOSSES - Add
IMPAIRMENT & OTHER LOSSES - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | ||
Inventory impairment charges | $ 1.9 | |
Inventory allocated to pre-need customers | $ 5 | |
Estimated impairment loss related to damaged and unusable merchandise | $ 5 |
ACCOUNTS RECEIVABLE, NET OF A_3
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE - Schedule of Accounts Receivable, Net of Allowance (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | |||
Customer receivables | $ 177,614 | $ 225,380 | |
Unearned finance income | (18,213) | (20,534) | |
Allowance for bad debt | (5,486) | (19,795) | |
Accounts receivable, net of allowance | 153,915 | 185,051 | |
Less: Current portion, net of allowance | 64,150 | $ 72,994 | 79,116 |
Long-term portion, net of allowance | 89,765 | $ 99,408 | 105,935 |
Accounts receivable, net of allowance | $ 153,915 | $ 185,051 |
ACCOUNTS RECEIVABLE, NET OF A_4
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE - Activity in Allowance for Contract Cancellations (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance, beginning of period | $ 19,795 | |
Cumulative effect of accounting changes | (28,097) | |
Provision for bad debt | 3,776 | $ 5,123 |
Balance, end of period | 5,486 | |
Contract Cancellations | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance, beginning of period | 19,795 | 26,153 |
Cumulative effect of accounting changes | (12,876) | |
Provision for bad debt | 3,776 | 5,123 |
Charge offs, net | (5,209) | (6,057) |
Balance, end of period | $ 5,486 | $ 25,219 |
CEMETERY PROPERTY (Detail)
CEMETERY PROPERTY (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Cemetery property | $ 333,724 | $ 333,404 |
Cemetery land | ||
Property, Plant and Equipment [Line Items] | ||
Cemetery property | 258,197 | 256,856 |
Mausoleum crypts and lawn crypts | ||
Property, Plant and Equipment [Line Items] | ||
Cemetery property | $ 75,527 | $ 76,548 |
PROPERTY AND EQUIPMENT (Detail)
PROPERTY AND EQUIPMENT (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 202,347 | $ 197,036 | |
Less: Accumulated depreciation | (88,673) | (82,946) | |
Property and equipment, net of accumulated depreciation | 113,674 | $ 114,090 | 114,090 |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 129,589 | 125,337 | |
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 58,573 | 57,514 | |
Funeral home land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 14,185 | $ 14,185 |
PROPERTY AND EQUIPMENT - Additi
PROPERTY AND EQUIPMENT - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 2.3 | $ 2.6 | $ 7.5 | $ 8.3 |
MERCHANDISE TRUSTS - Additional
MERCHANDISE TRUSTS - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018USD ($)Security | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Security | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
West Virginia Trust Receivable | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Trust assets, fair value | $ 9,100 | $ 9,100 | $ 9,100 | |||
Revenue from Contract with Customer [Member] | Geographic Concentration Risk [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Percentage of total merchandise trust in states in which customers may cancel contracts | 53.20% | |||||
Merchandise Trusts | Variable Interest Entity, Primary Beneficiary | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Trust assets, fair value | 520,027 | $ 512,181 | $ 520,027 | $ 512,181 | 515,456 | $ 507,079 |
Purchases of available for sale securities | 78,300 | 298,700 | ||||
Sales, maturities and paydowns of available for sale securities | 66,600 | 297,200 | ||||
Other than temporary impairments loss | 11,977 | |||||
Merchandise Trusts | Variable Interest Entity, Primary Beneficiary | Other Than Temporarily Impaired Securities | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Trust assets, fair value | $ 61,300 | $ 215,900 | ||||
Number of securities that incurred other than temporary impairment losses | Security | 37 | 122 | ||||
Trust assets, cost | $ 62,100 | $ 227,900 | ||||
Other than temporary impairments loss | 800 | $ 0 | 12,000 | $ 0 | ||
Merchandise Trusts | Variable Interest Entity, Primary Beneficiary | West Virginia Trust Receivable | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Trust assets, fair value | $ 9,144 | $ 9,144 | $ 9,097 |
MERCHANDISE TRUSTS - Reconcilia
MERCHANDISE TRUSTS - Reconciliation of Merchandise Trust Activities (Detail) - Variable Interest Entity, Primary Beneficiary - Merchandise Trusts - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | $ 515,456 | $ 507,079 |
Contributions | 49,762 | 44,497 |
Distributions | (53,321) | (65,723) |
Interest and dividends | 20,486 | 18,252 |
Capital gain distributions | 405 | 927 |
Realized gains and losses | (258) | 14,192 |
Other than temporary impairment | (11,977) | |
Taxes | (337) | (1,306) |
Fees | (3,049) | (1,855) |
Unrealized change in fair value | 2,860 | (3,882) |
Balance, end of period | $ 520,027 | $ 512,181 |
MERCHANDISE TRUSTS - Cost and M
MERCHANDISE TRUSTS - Cost and Market Value Associated with Assets Held in Merchandise Trusts (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
West Virginia Trust Receivable | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fair Value | $ 9,100 | $ 9,100 | ||
Variable Interest Entity, Primary Beneficiary | Merchandise Trusts | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cost | 518,444 | 516,733 | ||
Gross Unrealized Gains | 8,848 | 7,211 | ||
Gross Unrealized Losses | (7,265) | (8,488) | ||
Fair Value | 520,027 | 515,456 | $ 512,181 | $ 507,079 |
Variable Interest Entity, Primary Beneficiary | Merchandise Trusts | Short-term investments | Level 1 | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cost | 10,573 | 10,421 | ||
Fair Value | 10,573 | 10,421 | ||
Variable Interest Entity, Primary Beneficiary | Merchandise Trusts | Fixed maturities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cost | 1,794 | 1,400 | ||
Gross Unrealized Gains | 48 | 53 | ||
Gross Unrealized Losses | (507) | (307) | ||
Fair Value | 1,335 | 1,146 | ||
Variable Interest Entity, Primary Beneficiary | Merchandise Trusts | Fixed maturities | U.S. governmental securities | Level 2 | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cost | 398 | 196 | ||
Gross Unrealized Gains | 1 | |||
Gross Unrealized Losses | (156) | (65) | ||
Fair Value | 242 | 132 | ||
Variable Interest Entity, Primary Beneficiary | Merchandise Trusts | Fixed maturities | Corporate debt securities | Level 2 | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cost | 1,396 | 1,204 | ||
Gross Unrealized Gains | 48 | 52 | ||
Gross Unrealized Losses | (351) | (242) | ||
Fair Value | 1,093 | 1,014 | ||
Variable Interest Entity, Primary Beneficiary | Merchandise Trusts | Mutual funds - debt securities | Level 1 | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cost | 206,264 | 222,450 | ||
Gross Unrealized Gains | 70 | 1,522 | ||
Gross Unrealized Losses | (5,295) | (1,211) | ||
Fair Value | 201,039 | 222,761 | ||
Variable Interest Entity, Primary Beneficiary | Merchandise Trusts | Mutual funds - equity securities | Level 1 | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cost | 56,956 | 71,500 | ||
Gross Unrealized Gains | 2,579 | 2,399 | ||
Gross Unrealized Losses | (6,292) | |||
Fair Value | 59,535 | 67,607 | ||
Variable Interest Entity, Primary Beneficiary | Merchandise Trusts | Other investment funds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cost | 202,951 | 171,044 | ||
Gross Unrealized Gains | 2,160 | 522 | ||
Gross Unrealized Losses | (1,239) | (401) | ||
Fair Value | 203,872 | 171,165 | ||
Variable Interest Entity, Primary Beneficiary | Merchandise Trusts | Equity securities | Level 1 | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cost | 22,307 | 21,808 | ||
Gross Unrealized Gains | 3,982 | 2,715 | ||
Gross Unrealized Losses | (220) | (277) | ||
Fair Value | 26,069 | 24,246 | ||
Variable Interest Entity, Primary Beneficiary | Merchandise Trusts | Other invested assets | Level 2 | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cost | 8,455 | 9,013 | ||
Gross Unrealized Gains | 9 | |||
Gross Unrealized Losses | (4) | |||
Fair Value | 8,460 | 9,013 | ||
Variable Interest Entity, Primary Beneficiary | Merchandise Trusts | Total Investments | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cost | 509,300 | 507,636 | ||
Gross Unrealized Gains | 8,848 | 7,211 | ||
Gross Unrealized Losses | (7,265) | (8,488) | ||
Fair Value | 510,883 | 506,359 | ||
Variable Interest Entity, Primary Beneficiary | Merchandise Trusts | West Virginia Trust Receivable | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Cost | 9,144 | 9,097 | ||
Fair Value | $ 9,144 | $ 9,097 |
MERCHANDISE TRUSTS - Cost and_2
MERCHANDISE TRUSTS - Cost and Market Value Associated with Assets Held in Merchandise Trusts (Parenthetical) (Detail) - Merchandise Trusts - Variable Interest Entity, Primary Beneficiary $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)Extension | Dec. 31, 2017USD ($)Extension | |
Debt Securities, Available-for-sale [Line Items] | ||
Number of potential lockup period extensions | Extension | 3 | 2 |
Lockup extension period | 1 year | 1 year |
Unfunded commitments to private credit funds, callable at any time | $ | $ 81.2 | $ 52.1 |
Minimum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed income funds and equity funds, redemption period | 1 day | 1 day |
Private credit funds, lockup periods | 2 years | 4 years |
Maximum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed income funds and equity funds, redemption period | 30 days | 90 days |
Private credit funds, lockup periods | 7 years | 8 years |
MERCHANDISE TRUSTS - Contractua
MERCHANDISE TRUSTS - Contractual Maturities of Debt Securities Held in Merchandise Trusts (Detail) - Variable Interest Entity, Primary Beneficiary - Merchandise Trusts - Fixed maturities $ in Thousands | Sep. 30, 2018USD ($) |
Investments Classified by Contractual Maturity Date [Line Items] | |
Less than 1 year | $ 15 |
1 year through 5 years | 1,141 |
6 years through 10 years | 163 |
More than 10 years | 16 |
U.S. governmental securities | |
Investments Classified by Contractual Maturity Date [Line Items] | |
1 year through 5 years | 136 |
6 years through 10 years | 106 |
Corporate debt securities | |
Investments Classified by Contractual Maturity Date [Line Items] | |
Less than 1 year | 15 |
1 year through 5 years | 1,005 |
6 years through 10 years | 57 |
More than 10 years | $ 16 |
MERCHANDISE TRUSTS - Aging of U
MERCHANDISE TRUSTS - Aging of Unrealized Losses on Investments in Fixed Maturities and Equity Securities Held in Merchandise Trusts (Detail) - Variable Interest Entity, Primary Beneficiary - Merchandise Trusts - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair Value | $ 234,119 | $ 204,918 |
12 Months or more Fair Value | 2,526 | 2,325 |
Total Fair Value | 236,645 | 207,243 |
Less than 12 months Unrealized Losses | 6,122 | 7,910 |
12 Months or more Unrealized Losses | 1,143 | 578 |
Total Unrealized Losses | 7,265 | 8,488 |
Fixed maturities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair Value | 112 | 150 |
12 Months or more Fair Value | 801 | 473 |
Total Fair Value | 913 | 623 |
Less than 12 months Unrealized Losses | 5 | 50 |
12 Months or more Unrealized Losses | 502 | 257 |
Total Unrealized Losses | 507 | 307 |
Fixed maturities | U.S. governmental securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
12 Months or more Fair Value | 240 | 112 |
Total Fair Value | 240 | 112 |
12 Months or more Unrealized Losses | 156 | 65 |
Total Unrealized Losses | 156 | 65 |
Fixed maturities | Corporate debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair Value | 112 | 150 |
12 Months or more Fair Value | 561 | 361 |
Total Fair Value | 673 | 511 |
Less than 12 months Unrealized Losses | 5 | 50 |
12 Months or more Unrealized Losses | 346 | 192 |
Total Unrealized Losses | 351 | 242 |
Mutual funds - debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair Value | 144,400 | 102,526 |
12 Months or more Fair Value | 873 | 1,462 |
Total Fair Value | 145,273 | 103,988 |
Less than 12 months Unrealized Losses | 4,819 | 912 |
12 Months or more Unrealized Losses | 476 | 299 |
Total Unrealized Losses | 5,295 | 1,211 |
Mutual funds - equity securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair Value | 51,196 | |
Total Fair Value | 51,196 | |
Less than 12 months Unrealized Losses | 6,292 | |
Total Unrealized Losses | 6,292 | |
Other investment funds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair Value | 87,897 | 48,140 |
Total Fair Value | 87,897 | 48,140 |
Less than 12 months Unrealized Losses | 1,239 | 401 |
Total Unrealized Losses | 1,239 | 401 |
Equity securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair Value | 1,710 | 2,906 |
12 Months or more Fair Value | 852 | 390 |
Total Fair Value | 2,562 | 3,296 |
Less than 12 months Unrealized Losses | 55 | 255 |
12 Months or more Unrealized Losses | 165 | 22 |
Total Unrealized Losses | 220 | $ 277 |
Other invested assets | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Unrealized Losses | 4 | |
Total Unrealized Losses | $ 4 |
PERPETUAL CARE TRUSTS - Reconci
PERPETUAL CARE TRUSTS - Reconciliation of Perpetual Care Trust Activities (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | $ 339,928 | |
Balance, end of period | 345,022 | |
Variable Interest Entity, Primary Beneficiary | Perpetual care trusts | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | 339,928 | $ 333,780 |
Contributions | 10,795 | 7,156 |
Distributions | (13,790) | (13,449) |
Interest and dividends | 17,416 | 12,935 |
Capital gain distributions | 612 | 403 |
Realized gains and losses | 353 | 1,371 |
Other than temporary impairment | (7,449) | |
Taxes | (292) | (420) |
Fees | (4,087) | (1,095) |
Unrealized change in fair value | 1,536 | (2,070) |
Balance, end of period | $ 345,022 | $ 338,611 |
PERPETUAL CARE TRUSTS - Additio
PERPETUAL CARE TRUSTS - Additional Information (Detail) - Variable Interest Entity, Primary Beneficiary - Perpetual care trusts $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)Security | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Security | Sep. 30, 2017USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||||
Purchases of available for sale securities | $ 56,400 | $ 82,800 | ||
Sales, maturities and paydowns of available for sale securities | 49,400 | 68,700 | ||
Other than temporary impairments loss | $ 7,449 | |||
Other Than Temporarily Impaired Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of securities that incurred other than temporary impairment losses | Security | 49 | 116 | ||
Trust assets, cost | $ 40,000 | $ 158,000 | ||
Trust assets, fair value | 39,400 | 150,600 | ||
Other than temporary impairments loss | $ 600 | $ 0 | $ 7,400 | $ 0 |
PERPETUAL CARE TRUSTS - Cost an
PERPETUAL CARE TRUSTS - Cost and Market Value Associated with Assets Held in Perpetual Care Trusts (Detail) - Variable Interest Entity, Primary Beneficiary - Perpetual care trusts - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Short-term investments | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | $ 10,452 | $ 9,456 |
Fair Value | 10,452 | 9,456 |
Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 5,991 | 5,871 |
Gross Unrealized Gains | 100 | 152 |
Gross Unrealized Losses | (460) | (237) |
Fair Value | 5,631 | 5,786 |
Fixed maturities | U.S. governmental securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 962 | 506 |
Gross Unrealized Gains | 3 | 4 |
Gross Unrealized Losses | (133) | (46) |
Fair Value | 832 | 464 |
Fixed maturities | Corporate debt securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 5,029 | 5,365 |
Gross Unrealized Gains | 97 | 148 |
Gross Unrealized Losses | (327) | (191) |
Fair Value | 4,799 | 5,322 |
Mutual funds - debt securities | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 122,939 | 141,511 |
Gross Unrealized Gains | 137 | 1,974 |
Gross Unrealized Losses | (1,476) | (712) |
Fair Value | 121,600 | 142,773 |
Mutual funds - equity securities | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 22,836 | 32,707 |
Gross Unrealized Gains | 1,605 | 1,757 |
Gross Unrealized Losses | (105) | (1,771) |
Fair Value | 24,336 | 32,693 |
Other investment funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 156,247 | 124,722 |
Gross Unrealized Gains | 5,455 | 2,630 |
Gross Unrealized Losses | (2,830) | (533) |
Fair Value | 158,872 | 126,819 |
Equity securities | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 21,657 | 22,076 |
Gross Unrealized Gains | 2,613 | 1,648 |
Gross Unrealized Losses | (169) | (1,570) |
Fair Value | 24,101 | 22,154 |
Other invested assets | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 26 | 247 |
Gross Unrealized Gains | 4 | |
Fair Value | 30 | 247 |
Total Investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 340,148 | 336,590 |
Gross Unrealized Gains | 9,914 | 8,161 |
Gross Unrealized Losses | (5,040) | (4,823) |
Fair Value | $ 345,022 | $ 339,928 |
PERPETUAL CARE TRUSTS - Cost _2
PERPETUAL CARE TRUSTS - Cost and Market Value Associated with Assets Held in Perpetual Care Trusts (Parenthetical) (Detail) - Perpetual care trusts - Variable Interest Entity, Primary Beneficiary $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)Extension | Dec. 31, 2017USD ($)Extension | |
Debt Securities, Available-for-sale [Line Items] | ||
Number of potential lockup period extensions | Extension | 3 | 3 |
Lockup extension period | 1 year | 1 year |
Unfunded commitments to private credit funds, callable at any time | $ | $ 105.1 | $ 92.2 |
Minimum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed income funds and equity funds, redemption period | 1 day | 1 day |
Private credit funds, lockup periods | 2 years | 4 years |
Maximum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed income funds and equity funds, redemption period | 30 days | 90 days |
Private credit funds, lockup periods | 8 years | 10 years |
PERPETUAL CARE TRUSTS - Contrac
PERPETUAL CARE TRUSTS - Contractual Maturities of Debt Securities Held in Perpetual Care Trusts (Detail) - Variable Interest Entity, Primary Beneficiary - Perpetual care trusts - Fixed maturities $ in Thousands | Sep. 30, 2018USD ($) |
Investments Classified by Contractual Maturity Date [Line Items] | |
Less than 1 year | $ 392 |
1 year through 5 years | 4,444 |
6 years through 10 years | 671 |
More than 10 years | 124 |
U.S. governmental securities | |
Investments Classified by Contractual Maturity Date [Line Items] | |
1 year through 5 years | 412 |
6 years through 10 years | 387 |
More than 10 years | 33 |
Corporate debt securities | |
Investments Classified by Contractual Maturity Date [Line Items] | |
Less than 1 year | 392 |
1 year through 5 years | 4,032 |
6 years through 10 years | 284 |
More than 10 years | $ 91 |
PERPETUAL CARE TRUSTS - Aging o
PERPETUAL CARE TRUSTS - Aging of Unrealized Losses on Investments in Fixed Maturities and Equity Securities Held in Perpetual Care Trusts (Detail) - Variable Interest Entity, Primary Beneficiary - Perpetual care trusts - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair Value | $ 118,861 | $ 106,874 |
12 Months or more Fair Value | 7,234 | 15,611 |
Total Fair Value | 126,095 | 122,485 |
Less than 12 months Unrealized Losses | 4,325 | 4,106 |
12 Months or more Unrealized Losses | 715 | 717 |
Total Unrealized Losses | 5,040 | 4,823 |
Fixed maturities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair Value | 466 | 994 |
12 Months or more Fair Value | 3,680 | 2,670 |
Total Fair Value | 4,146 | 3,664 |
Less than 12 months Unrealized Losses | 11 | 20 |
12 Months or more Unrealized Losses | 449 | 217 |
Total Unrealized Losses | 460 | 237 |
Fixed maturities | U.S. governmental securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair Value | 2 | |
12 Months or more Fair Value | 779 | 399 |
Total Fair Value | 781 | 399 |
12 Months or more Unrealized Losses | 133 | 46 |
Total Unrealized Losses | 133 | 46 |
Fixed maturities | Corporate debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair Value | 464 | 994 |
12 Months or more Fair Value | 2,901 | 2,271 |
Total Fair Value | 3,365 | 3,265 |
Less than 12 months Unrealized Losses | 11 | 20 |
12 Months or more Unrealized Losses | 316 | 171 |
Total Unrealized Losses | 327 | 191 |
Mutual funds - debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair Value | 67,840 | 37,090 |
12 Months or more Fair Value | 3,006 | 12,793 |
Total Fair Value | 70,846 | 49,883 |
Less than 12 months Unrealized Losses | 1,255 | 289 |
12 Months or more Unrealized Losses | 221 | 423 |
Total Unrealized Losses | 1,476 | 712 |
Mutual funds - equity securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair Value | 1,438 | 16,668 |
12 Months or more Fair Value | 36 | |
Total Fair Value | 1,438 | 16,704 |
Less than 12 months Unrealized Losses | 105 | 1,754 |
12 Months or more Unrealized Losses | 17 | |
Total Unrealized Losses | 105 | 1,771 |
Other investment funds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair Value | 45,598 | 42,606 |
Total Fair Value | 45,598 | 42,606 |
Less than 12 months Unrealized Losses | 2,830 | 533 |
Total Unrealized Losses | 2,830 | 533 |
Equity securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 months Fair Value | 3,519 | 9,516 |
12 Months or more Fair Value | 548 | 112 |
Total Fair Value | 4,067 | 9,628 |
Less than 12 months Unrealized Losses | 124 | 1,510 |
12 Months or more Unrealized Losses | 45 | 60 |
Total Unrealized Losses | $ 169 | $ 1,570 |
LONG-TERM DEBT - Outstanding De
LONG-TERM DEBT - Outstanding Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Less deferred financing costs, net of accumulated amortization | $ (9,914) | $ (9,788) | |
Total debt | 315,287 | 318,695 | |
Less current maturities | (1,184) | $ (1,002) | (1,002) |
Total long-term debt | 314,103 | $ 317,693 | 317,693 |
Credit facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 150,034 | 153,423 | |
Senior Notes | 7.875% notes, due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 173,480 | 173,098 | |
Notes Payable, other Payables | Acquisitions Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 146 | 304 | |
Notes Payable, other Payables | Acquisition non-competes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 391 | 378 | |
Insurance and vehicle financing | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,150 | $ 1,280 |
LONG-TERM DEBT - Additional Inf
LONG-TERM DEBT - Additional Information (Detail) | Jun. 12, 2018 | Sep. 29, 2017USD ($) | May 31, 2013USD ($) | May 28, 2013USD ($) | Dec. 31, 2018 | Sep. 30, 2018USD ($)Quarter | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2017USD ($) | Aug. 04, 2016 |
Debt Disclosure [Line Items] | ||||||||||
Debt covenant, consolidated leverage ratio | 7.50 | |||||||||
Debt covenant, number of consecutive quarters for calculating consolidated leverage ratio | Quarter | 4 | |||||||||
Debt covenant, consolidated fixed charge coverage ratio | 1.20 | |||||||||
StoneMor Operating LLC | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Ownership percentage | 100.00% | 100.00% | ||||||||
Minimum | Base Rate | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Credit facility, basis spread on variable rate | 1.25% | |||||||||
Maximum | Base Rate | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Credit facility, basis spread on variable rate | 3.75% | |||||||||
Scenario, Forecast | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Debt covenant, consolidated fixed charge coverage ratio | 1 | 1.10 | 1.20 | |||||||
Scenario, Forecast | Minimum | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Debt covenant, consolidated leverage ratio | 4 | |||||||||
Scenario, Forecast | Maximum | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Debt covenant, consolidated leverage ratio | 4.25 | |||||||||
Amended Credit Agreement | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Credit facility, maximum borrowing capacity | $ 200,000,000 | |||||||||
Debt covenant, consolidated leverage ratio | 4 | |||||||||
Debt covenant, consolidated fixed charge coverage ratio | 1.20 | |||||||||
Amended Credit Agreement | Credit facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Credit facility, maximum borrowing capacity | 200,000,000 | |||||||||
Line of credit outstanding amount | $ 150,000,000 | |||||||||
Amended Credit Agreement | Letter of Credit | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Credit facility, maximum borrowing capacity | 15,000,000 | |||||||||
Line of credit outstanding amount | $ 9,400,000 | $ 7,500,000 | ||||||||
Amended Credit Agreement | Minimum | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Debt covenant, debt service coverage ratio | 250.00% | |||||||||
Amended Credit Agreement | Minimum | Credit facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Line of credit additional borrowing capacity | 5,000,000 | |||||||||
Amended Credit Agreement | Maximum | Credit facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Line of credit additional borrowing capacity | $ 100,000,000 | |||||||||
7.875% notes, due 2021 | Senior Notes | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Debt premium percentage | 7.875% | |||||||||
Long-term debt, principal amount | $ 175,000,000 | |||||||||
Long-term debt, interest rate | 7.875% | |||||||||
Long-term debt, issued price per $100 | 97.832% | |||||||||
Net proceeds from issuance of senior notes | $ 171,200,000 | |||||||||
Long-term debt, discount | $ 3,800,000 | |||||||||
Long-term debt, debt issuance costs | $ 4,600,000 | |||||||||
Maturity date | Jun. 1, 2021 | |||||||||
10.25% Senior Notes, due 2017 | Senior Notes | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Long-term debt, principal amount | $ 150,000,000 | |||||||||
Long-term debt, interest rate | 10.25% | |||||||||
7.875% senior notes, due 2021 | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Purchase price as percentage of principal plus accrued and unpaid interest, Upon occurrence of change of control | 101.00% | |||||||||
Credit Agreement | Credit facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Weighted average interest rate on outstanding borrowings | 6.70% | |||||||||
Credit Agreement | Eurodollar | Credit facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Credit facility, basis spread on variable rate | 4.25% | |||||||||
Credit Agreement | Base Rate | Credit facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Credit facility, basis spread on variable rate | 3.25% | |||||||||
Credit Agreement | Minimum | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | |||||||||
Credit Agreement | Minimum | Eurodollar | Credit facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Credit facility, basis spread on variable rate | 1.75% | |||||||||
Credit Agreement | Minimum | Base Rate | Credit facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Credit facility, basis spread on variable rate | 0.75% | |||||||||
Credit Agreement | Maximum | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||||||||
Credit Agreement | Maximum | Eurodollar | Credit facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Credit facility, basis spread on variable rate | 3.75% | |||||||||
Credit Agreement | Maximum | Base Rate | Credit facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Credit facility, basis spread on variable rate | 2.75% | |||||||||
Subsequent Event | Credit Agreement | Minimum | Credit facility | ||||||||||
Debt Disclosure [Line Items] | ||||||||||
Debt covenant, consolidated leverage ratio | 4.25 |
LONG-TERM DEBT - Redemption Pri
LONG-TERM DEBT - Redemption Prices Expressed as Percentages of Principal Amount (Detail) - 7.875% senior notes, due 2021 | 6 Months Ended |
Jun. 30, 2006 | |
Debt Instrument, Redemption, 2018 | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 101.969% |
Debt Instrument, Redemption, 2019 and thereafter | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument, redemption price, percentage | 100.00% |
DEFERRED REVENUES AND COSTS - S
DEFERRED REVENUES AND COSTS - Schedule of Deferred Revenue and Other Costs (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | |||
Deferred contract revenues | $ 835,833 | $ 808,549 | |
Deferred merchandise trust investment income | 106,389 | 105,354 | |
Deferred merchandise trust unrealized gains (losses) | 1,583 | (1,277) | |
Deferred revenues, net | 943,805 | $ 903,068 | 912,626 |
Deferred revenue | 967,227 | 912,626 | |
Amounts due from customers for unfulfilled performance obligations on cancellable pre-need contracts | (23,422) | ||
Deferred revenue, net | $ 943,805 | $ 903,068 | $ 912,626 |
DEFERRED REVENUES AND COSTS -_2
DEFERRED REVENUES AND COSTS - Schedule of Deferred Selling and Obtaining Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |
Deferred Revenue Arrangement [Line Items] | |||
Deferred selling and obtaining costs, beginning of period | $ 126,398 | ||
Cumulative effect of accounting change | $ (28,097) | (28,097) | |
Change in deferred selling and obtaining costs | 600 | 4,780 | $ 7,246 |
Deferred selling and obtaining costs, end of period | 112,621 | 112,621 | |
Impact of Adoption of FASB ASC 606 | |||
Deferred Revenue Arrangement [Line Items] | |||
Cumulative effect of accounting change | $ (18,557) | $ (18,557) |
DEFERRED REVENUES AND COSTS - A
DEFERRED REVENUES AND COSTS - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Deferred revenues, revenue recognized | $ 24,600 | $ 64,600 | |
Change in deferred selling and obtaining costs | $ 600 | $ 4,780 | $ 7,246 |
DEFERRED REVENUES AND COSTS - R
DEFERRED REVENUES AND COSTS - Revenue, Remaining Performance Obligation (Detail) | Sep. 30, 2018 |
First 4-5years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 55.00% |
Within 18 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 80.00% |
LONG-TERM INCENTIVE AND RETIR_2
LONG-TERM INCENTIVE AND RETIREMENT PLANS - Additional Information (Detail) | Mar. 19, 2018shares |
Phantom units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of units awarded (in shares) | 236,234 |
Restricted units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of units awarded (in shares) | 14,556 |
Number of monthly vesting installments | 24 months |
Time-Based Vesting | Phantom units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of units awarded (in shares) | 127,229 |
Performance-Based Vesting | Phantom units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of units awarded (in shares) | 109,005 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) $ in Millions | Sep. 30, 2018USD ($) |
Commitments and Contingencies [Line Items] | |
Deferred fixed rent for lease | $ 6 |
Second Quarter 2014 Acquisition | |
Commitments and Contingencies [Line Items] | |
Aggregate fixed rent payment to landlord | $ 36 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Fixed Rent for Cemeteries (Detail) - 2014 Acquisitions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Lease Years 1-5 | |
Management Agreement Future Minimum Payments Due [Line Items] | |
Fixed rent for cemeteries, per lease year | $ 0 |
Lease Years 6-20 | |
Management Agreement Future Minimum Payments Due [Line Items] | |
Fixed rent for cemeteries, per lease year | 1,000,000 |
Lease Years 21-25 | |
Management Agreement Future Minimum Payments Due [Line Items] | |
Fixed rent for cemeteries, per lease year | 1,200,000 |
Lease Years 26- 35 | |
Management Agreement Future Minimum Payments Due [Line Items] | |
Fixed rent for cemeteries, per lease year | 1,500,000 |
Lease Years 36-60 | |
Management Agreement Future Minimum Payments Due [Line Items] | |
Fixed rent for cemeteries, per lease year | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets held-for-sale | $ 1.1 | |
Assets held-for-sale original net book value | 2.2 | |
Assets held-for-sale fair value adjustment | 0.2 | $ 0.9 |
Senior Notes | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 164.1 | 173.3 |
Notes payable, carrying value | $ 173.5 | $ 173.1 |
SUPPLEMENTAL CONDENSED CONSOL_5
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | |||||
Cash and cash equivalents | $ 8,043 | $ 6,821 | $ 6,821 | $ 8,460 | $ 12,570 |
Assets held for sale | 1,083 | 1,016 | 1,016 | ||
Other current assets | 92,513 | 105,149 | |||
Total current assets | 101,639 | 106,864 | 112,986 | ||
Long-term accounts receivable | 89,765 | 99,408 | 105,935 | ||
Cemetery and funeral home property and equipment | 447,398 | 447,494 | |||
Merchandise trusts | 520,027 | 515,456 | 515,456 | ||
Perpetual care trusts | 345,022 | 339,928 | 339,928 | ||
Deferred selling and obtaining costs | 112,621 | 107,841 | 126,398 | ||
Goodwill and intangible assets | 86,767 | 88,106 | |||
Other assets | 24,644 | 19,779 | |||
Total assets | 1,727,883 | 1,722,863 | 1,756,082 | ||
Liabilities and Partners' Capital | |||||
Current liabilities | 62,987 | 47,135 | 45,806 | ||
Long-term debt, net of deferred financing costs | 314,103 | 317,693 | 317,693 | ||
Deferred revenues | 943,805 | 912,626 | |||
Perpetual care trust corpus | 345,022 | 339,928 | 339,928 | ||
Other long-term liabilities | 48,506 | 48,333 | |||
Total liabilities | 1,714,423 | 1,659,264 | 1,664,386 | ||
Partners' capital | 13,460 | 63,599 | 91,696 | ||
Total liabilities and partners' capital | 1,727,883 | $ 1,722,863 | 1,756,082 | ||
Eliminations | |||||
Current assets: | |||||
Investments in and amounts due from affiliates eliminated upon consolidation | (667,689) | (799,565) | |||
Total assets | (667,689) | (799,565) | |||
Liabilities and Partners' Capital | |||||
Due to affiliates | (747,785) | (749,123) | |||
Total liabilities | (747,785) | (749,123) | |||
Partners' capital | 80,096 | (50,442) | |||
Total liabilities and partners' capital | (667,689) | (799,565) | |||
Parent | |||||
Current assets: | |||||
Investments in and amounts due from affiliates eliminated upon consolidation | 81,861 | 159,946 | |||
Total assets | 81,861 | 159,946 | |||
Liabilities and Partners' Capital | |||||
Long-term debt, net of deferred financing costs | 68,401 | 68,250 | |||
Total liabilities | 68,401 | 68,250 | |||
Partners' capital | 13,460 | 91,696 | |||
Total liabilities and partners' capital | 81,861 | 159,946 | |||
Subsidiary Issuer | |||||
Current assets: | |||||
Other current assets | 3,962 | 3,882 | |||
Total current assets | 3,962 | 3,882 | |||
Long-term accounts receivable | 3,139 | 2,179 | |||
Cemetery and funeral home property and equipment | 751 | 738 | |||
Deferred selling and obtaining costs | 5,511 | 6,171 | |||
Investments in and amounts due from affiliates eliminated upon consolidation | 19,436 | 82,836 | |||
Total assets | 32,799 | 95,806 | |||
Liabilities and Partners' Capital | |||||
Current liabilities | 177 | 72 | |||
Long-term debt, net of deferred financing costs | 105,079 | 104,848 | |||
Deferred revenues | 33,273 | 33,469 | |||
Total liabilities | 138,529 | 138,389 | |||
Partners' capital | (105,730) | (42,583) | |||
Total liabilities and partners' capital | 32,799 | 95,806 | |||
Guarantor Subsidiaries | |||||
Current assets: | |||||
Cash and cash equivalents | 6,142 | 4,216 | 5,614 | 9,145 | |
Assets held for sale | 1,083 | 1,016 | |||
Other current assets | 72,932 | 83,901 | |||
Total current assets | 80,157 | 89,133 | |||
Long-term accounts receivable | 74,408 | 89,275 | |||
Cemetery and funeral home property and equipment | 412,824 | 411,936 | |||
Deferred selling and obtaining costs | 88,666 | 98,639 | |||
Goodwill and intangible assets | 25,872 | 26,347 | |||
Other assets | 20,660 | 16,995 | |||
Investments in and amounts due from affiliates eliminated upon consolidation | 566,392 | 556,783 | |||
Total assets | 1,268,979 | 1,289,108 | |||
Liabilities and Partners' Capital | |||||
Current liabilities | 61,437 | 44,380 | |||
Long-term debt, net of deferred financing costs | 140,623 | 144,595 | |||
Deferred revenues | 795,945 | 773,516 | |||
Other long-term liabilities | 33,265 | 34,149 | |||
Due to affiliates | 173,480 | 173,098 | |||
Total liabilities | 1,204,750 | 1,169,738 | |||
Partners' capital | 64,229 | 119,370 | |||
Total liabilities and partners' capital | 1,268,979 | 1,289,108 | |||
Non-Guarantor Subsidiaries | |||||
Current assets: | |||||
Cash and cash equivalents | 1,901 | 2,605 | $ 2,846 | $ 3,425 | |
Other current assets | 15,619 | 17,366 | |||
Total current assets | 17,520 | 19,971 | |||
Long-term accounts receivable | 12,218 | 14,481 | |||
Cemetery and funeral home property and equipment | 33,823 | 34,820 | |||
Merchandise trusts | 520,027 | 515,456 | |||
Perpetual care trusts | 345,022 | 339,928 | |||
Deferred selling and obtaining costs | 18,444 | 21,588 | |||
Goodwill and intangible assets | 60,895 | 61,759 | |||
Other assets | 3,984 | 2,784 | |||
Total assets | 1,011,933 | 1,010,787 | |||
Liabilities and Partners' Capital | |||||
Current liabilities | 1,373 | 1,354 | |||
Deferred revenues | 114,587 | 105,641 | |||
Perpetual care trust corpus | 345,022 | 339,928 | |||
Other long-term liabilities | 15,241 | 14,184 | |||
Due to affiliates | 574,305 | 576,025 | |||
Total liabilities | 1,050,528 | 1,037,132 | |||
Partners' capital | (38,595) | (26,345) | |||
Total liabilities and partners' capital | $ 1,011,933 | $ 1,010,787 |
SUPPLEMENTAL CONDENSED CONSOL_6
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Total revenues | $ 73,185 | $ 84,034 | $ 232,701 | $ 252,932 |
Total costs and expenses | (83,201) | (86,382) | (259,481) | (259,442) |
Other income (loss) | 702 | 338 | (4,503) | (733) |
Interest expense | (7,638) | (6,944) | (22,858) | (20,391) |
Loss before income taxes | (16,952) | (8,954) | (54,141) | (27,634) |
Income tax benefit | (273) | (622) | 1,976 | (2,085) |
Net income (loss) | (17,225) | (9,576) | (52,165) | (29,719) |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Total revenues | (1,698) | (1,879) | (6,890) | (6,565) |
Total costs and expenses | 1,698 | 1,879 | 6,890 | 6,565 |
Net loss from equity investment in subsidiaries | 29,147 | 16,892 | 88,472 | 52,779 |
Loss before income taxes | 29,147 | 16,892 | 88,472 | 52,779 |
Net income (loss) | 29,147 | 16,892 | 88,472 | 52,779 |
Parent | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net loss from equity investment in subsidiaries | (15,867) | (8,218) | (48,090) | (25,644) |
Interest expense | (1,358) | (1,358) | (4,075) | (4,075) |
Loss before income taxes | (17,225) | (9,576) | (52,165) | (29,719) |
Net income (loss) | (17,225) | (9,576) | (52,165) | (29,719) |
Subsidiary Issuer | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Total revenues | 1,513 | 1,842 | 4,563 | 5,381 |
Total costs and expenses | (3,192) | (2,883) | (10,278) | (10,090) |
Net loss from equity investment in subsidiaries | (13,280) | (8,674) | (40,382) | (27,135) |
Interest expense | (2,087) | (2,087) | (6,261) | (6,261) |
Loss before income taxes | (17,046) | (11,802) | (52,358) | (38,105) |
Net income (loss) | (17,046) | (11,802) | (52,358) | (38,105) |
Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Total revenues | 61,254 | 69,423 | 196,638 | 209,331 |
Total costs and expenses | (68,979) | (71,234) | (214,804) | (214,855) |
Other income (loss) | 702 | 338 | (4,503) | (733) |
Interest expense | (3,935) | (3,264) | (11,755) | (9,366) |
Loss before income taxes | (10,958) | (4,737) | (34,424) | (15,623) |
Income tax benefit | (273) | (622) | 1,976 | (2,085) |
Net income (loss) | (11,231) | (5,359) | (32,448) | (17,708) |
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Total revenues | 12,116 | 14,648 | 38,390 | 44,785 |
Total costs and expenses | (12,728) | (14,144) | (41,289) | (41,062) |
Interest expense | (258) | (235) | (767) | (689) |
Loss before income taxes | (870) | 269 | (3,666) | 3,034 |
Net income (loss) | $ (870) | $ 269 | $ (3,666) | $ 3,034 |
SUPPLEMENTAL CONDENSED CONSOL_7
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ 19,411 | $ 24,701 |
Cash Flows From Investing Activities: | ||
Cash paid for acquisitions and capital expenditures | (10,877) | (6,858) |
Net cash used in investing activities | (10,877) | (6,858) |
Cash Flows From Financing Activities: | ||
Cash distributions | (24,545) | |
Net borrowings of debt | (4,044) | 4,165 |
Proceeds from issuance of common units | 0 | |
Other financing activities | (3,268) | (1,573) |
Net cash provided by (used in) financing activities | (7,312) | (21,953) |
Net increase (decrease) in cash and cash equivalents | 1,222 | (4,110) |
Cash and cash equivalents - Beginning of period | 6,821 | 12,570 |
Cash and cash equivalents - End of period | 8,043 | 8,460 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (10,336) | (34,881) |
Cash Flows From Financing Activities: | ||
Payments to affiliates | 34,881 | |
Payments to affiliates | 10,336 | |
Proceeds from issuance of common units | 0 | |
Net cash provided by (used in) financing activities | 10,336 | 34,881 |
Parent | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 24,545 | |
Cash Flows From Financing Activities: | ||
Cash distributions | (24,545) | |
Proceeds from issuance of common units | 0 | |
Net cash provided by (used in) financing activities | (24,545) | |
Subsidiary Issuer | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 363 | 57 |
Cash Flows From Investing Activities: | ||
Cash paid for acquisitions and capital expenditures | (363) | (57) |
Net cash used in investing activities | (363) | (57) |
Cash Flows From Financing Activities: | ||
Proceeds from issuance of common units | 0 | |
Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 29,462 | 34,863 |
Cash Flows From Investing Activities: | ||
Cash paid for acquisitions and capital expenditures | (9,888) | (6,105) |
Net cash used in investing activities | (9,888) | (6,105) |
Cash Flows From Financing Activities: | ||
Payments to affiliates | (34,881) | |
Payments to affiliates | (10,336) | |
Net borrowings of debt | (4,044) | 4,165 |
Proceeds from issuance of common units | 0 | |
Other financing activities | (3,268) | (1,573) |
Net cash provided by (used in) financing activities | (17,648) | (32,289) |
Net increase (decrease) in cash and cash equivalents | 1,926 | (3,531) |
Cash and cash equivalents - Beginning of period | 4,216 | 9,145 |
Cash and cash equivalents - End of period | 6,142 | 5,614 |
Non-Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (78) | 117 |
Cash Flows From Investing Activities: | ||
Cash paid for acquisitions and capital expenditures | (626) | (696) |
Net cash used in investing activities | (626) | (696) |
Cash Flows From Financing Activities: | ||
Proceeds from issuance of common units | 0 | |
Net increase (decrease) in cash and cash equivalents | (704) | (579) |
Cash and cash equivalents - Beginning of period | 2,605 | 3,425 |
Cash and cash equivalents - End of period | $ 1,901 | $ 2,846 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
SEGMENT INFORMATION (Detail)
SEGMENT INFORMATION (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 73,185 | $ 84,034 | $ 232,701 | $ 252,932 | ||
Depreciation and amortization | (2,737) | (3,186) | (8,853) | (10,032) | ||
Segment income | 3,087 | 9,797 | 13,832 | 33,477 | ||
Corporate overhead | (12,876) | (11,887) | (39,868) | (39,058) | ||
Segment income | 3,087 | 9,797 | 13,832 | 33,477 | ||
Corporate depreciation and amortization | (227) | (258) | (744) | (929) | ||
Capital expenditures | 2,538 | 4,649 | 10,164 | 7,960 | ||
Other gains (losses), net | 702 | 338 | (4,503) | (733) | ||
Total assets | 1,727,883 | 1,727,883 | $ 1,722,863 | $ 1,756,082 | ||
Interest expense | (7,638) | (6,944) | (22,858) | (20,391) | ||
Goodwill | 24,862 | 24,862 | $ 24,862 | 24,862 | ||
Income tax benefit (expense) | (273) | (622) | 1,976 | (2,085) | ||
Net loss | (17,225) | (9,576) | (52,165) | (29,719) | ||
Cemetery | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 61,405 | 69,543 | 191,328 | 205,816 | ||
Operating costs and expenses | (57,440) | (58,728) | (176,925) | (172,903) | ||
Depreciation and amortization | (1,858) | (2,175) | (6,043) | (6,734) | ||
Goodwill | 24,862 | 24,862 | 24,862 | |||
Funeral Home | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 11,780 | 14,491 | 41,373 | 47,116 | ||
Operating costs and expenses | (10,148) | (12,581) | (33,835) | (37,449) | ||
Depreciation and amortization | (652) | (753) | (2,066) | (2,369) | ||
Operating Segments | Cemetery | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment income | 2,107 | 8,640 | 8,360 | 26,179 | ||
Segment income | 2,107 | 8,640 | 8,360 | 26,179 | ||
Capital expenditures | 2,105 | 4,525 | 9,378 | 7,501 | ||
Total assets | 1,570,110 | 1,570,110 | 1,594,091 | |||
Operating Segments | Funeral Home | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment income | 980 | 1,157 | 5,472 | 7,298 | ||
Segment income | 980 | 1,157 | 5,472 | 7,298 | ||
Capital expenditures | 246 | 76 | 465 | 203 | ||
Total assets | 141,350 | 141,350 | 152,934 | |||
Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Capital expenditures | 187 | $ 48 | 321 | $ 256 | ||
Total assets | $ 16,423 | $ 16,423 | $ 9,057 |
SUPPLEMENTAL CONDENSED CONSOL_8
SUPPLEMENTAL CONDENSED CONSOLIDATED CASH FLOW INFORMATION - Schedule of Cash Flow, Supplemental Disclosures (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | ||
Pre-need/at-need contract originations (sales on credit) | $ (95,267) | $ (78,419) |
Cash receipts from sales on credit (post-origination) | 100,841 | 69,843 |
Changes in Accounts receivable, net of allowance | 5,574 | (8,576) |
Deferrals: | ||
Cash receipts from customer deposits at origination, net of refunds | 114,132 | 113,177 |
Withdrawals of realized income from merchandise trusts during the period | 13,815 | 10,592 |
Pre-need/at-need contract originations (sales on credit) | 95,267 | 78,419 |
Undistributed merchandise trust investment earnings, net | 357 | (32,299) |
Recognition: | ||
Merchandise trust investment income, net withdrawn as of end of period | (7,211) | (7,851) |
Recognized maturities of customer contracts collected as of end of period | (137,265) | (148,630) |
Recognized maturities of customer contracts uncollected as of end of period | (38,734) | (25,527) |
Changes in Deferred revenues | $ 40,361 | $ (12,119) |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Detail) | Feb. 04, 2019USD ($) | Jan. 31, 2019USD ($)Position | Oct. 12, 2018USD ($)shares | Oct. 08, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 12, 2018USD ($) | Jun. 01, 2019 | May 31, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2018USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018 | Sep. 30, 2018USD ($) | Dec. 31, 2019USD ($) | Feb. 05, 2019shares | Dec. 31, 2018USD ($) | Dec. 31, 2020 | Oct. 01, 2019 | Sep. 01, 2019 | Aug. 01, 2019 | Apr. 19, 2019USD ($) | Feb. 03, 2019USD ($) | Sep. 27, 2018$ / sharesshares | Sep. 29, 2017USD ($) |
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt covenant, consolidated leverage ratio | 7.50 | ||||||||||||||||||||||||||||||||||||
Debt covenant, maximum add back of extraordinary, unusual or nonrecurring losses, charges or expenses | $ 16,300,000 | $ 17,000,000 | |||||||||||||||||||||||||||||||||||
Debt covenant, cash and cash equivalents subject to first priority lien, maximum | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||
Amount available borrowing capacity under revolving credit facility | $ 25,000,000 | ||||||||||||||||||||||||||||||||||||
Increase of basis spread on variable rate | 0.50% | ||||||||||||||||||||||||||||||||||||
Debt covenant, consolidated fixed charge coverage ratio | 1.20 | ||||||||||||||||||||||||||||||||||||
Capital equipment financing general basket allowed, certain permitted debt | $ 10,000,000 | ||||||||||||||||||||||||||||||||||||
Capital equipment financing basket allowed | 10,000,000 | ||||||||||||||||||||||||||||||||||||
Dispositions, general basket limitation | 10,000,000 | ||||||||||||||||||||||||||||||||||||
Dispositions, general basket limitation, sale/leaseback transactions | 10,000,000 | ||||||||||||||||||||||||||||||||||||
Investment limitations, non-guarantor subsidiaries | 1,000,000 | ||||||||||||||||||||||||||||||||||||
Investment limitations, all other investments | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||
Merger and Reorganization Agreement | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Contribution of general partner shares | shares | 2,950,000 | ||||||||||||||||||||||||||||||||||||
General partner interest rate | 1.04% | ||||||||||||||||||||||||||||||||||||
Merger and Reorganization Agreement | GP Holdings | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Contribution of common units | shares | 2,332,878 | ||||||||||||||||||||||||||||||||||||
Merger and Reorganization Agreement | StoneMor Inc. | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Contribution of common units | shares | 2,332,878 | ||||||||||||||||||||||||||||||||||||
Common units, par value | $ / shares | $ 0.01 | ||||||||||||||||||||||||||||||||||||
Minimum | Base Rate | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Credit facility, basis spread on variable rate | 1.25% | ||||||||||||||||||||||||||||||||||||
Maximum | Base Rate | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Credit facility, basis spread on variable rate | 3.75% | ||||||||||||||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt covenant, mandatory prepayments as percentage of net cash proceeds | 100.00% | ||||||||||||||||||||||||||||||||||||
Subsequent Event | January 2019 Restructuring | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of positions expected to be eliminated | Position | 45 | ||||||||||||||||||||||||||||||||||||
Subsequent Event | Merger and Reorganization Agreement | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Legal and other expenses | $ 2,100,000 | ||||||||||||||||||||||||||||||||||||
Subsequent Event | Minimum | January 2019 Restructuring | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Expected cost in restructuring | $ 500,000 | ||||||||||||||||||||||||||||||||||||
Subsequent Event | Maximum | January 2019 Restructuring | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Expected cost in restructuring | $ 700,000 | ||||||||||||||||||||||||||||||||||||
Axar | TrancheB Revolving Credit Facility | Subsequent Event | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Credit facility, maximum borrowing capacity | $ 35,000,000 | ||||||||||||||||||||||||||||||||||||
Payments of lender fees | 700,000 | ||||||||||||||||||||||||||||||||||||
Debt expected exit fees at termination | 700,000 | ||||||||||||||||||||||||||||||||||||
Amount drawn down from bridge financing | $ 15,000,000 | ||||||||||||||||||||||||||||||||||||
Long-term debt, interest rate | 8.00% | ||||||||||||||||||||||||||||||||||||
Interim Strategic Executive | Subsequent Event | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Monthly professional fees | $ 50,000 | ||||||||||||||||||||||||||||||||||||
Former President and Chief Executive Officer | Subsequent Event | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Expected payment in separation agreement | $ 340,751.40 | ||||||||||||||||||||||||||||||||||||
Stonemor PartnersLp | Axar | Subsequent Event | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Ownership interest of Partnership's outstanding common units | 19.50% | ||||||||||||||||||||||||||||||||||||
Number of common units pursuant to certain cash-settled equity swaps | shares | 1,462,272 | ||||||||||||||||||||||||||||||||||||
Maximum percentage of common units outstanding to be acquired | 27.50% | ||||||||||||||||||||||||||||||||||||
Time-Based Vesting | Former President and Chief Executive Officer | Phantom units | Subsequent Event | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Units vested (in shares) | shares | 22,644 | ||||||||||||||||||||||||||||||||||||
Performance-Based Vesting | Former President and Chief Executive Officer | Phantom units | Subsequent Event | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Units vested (in shares) | shares | 63,836 | ||||||||||||||||||||||||||||||||||||
Sixth Amendment To Credit Agreement | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Credit facility, maximum borrowing capacity | $ 175,000,000 | ||||||||||||||||||||||||||||||||||||
Debt covenant, consolidated secured net leverage ratio | 3 | 5.75 | 5.75 | ||||||||||||||||||||||||||||||||||
Secured Leverage Borrowing Base, percentage of accounts receivable less than 120 days | 80.00% | ||||||||||||||||||||||||||||||||||||
Secured Leverage Borrowing Base, percentage of book value, net of depreciation, of property, plant and equipment | 40.00% | ||||||||||||||||||||||||||||||||||||
Debt covenant, add back non-cash deferred financing fees, maximum | $ 9,800,000 | ||||||||||||||||||||||||||||||||||||
Debt covenant, remove add back fees unsuccessful acquisition efforts | 3,000,000 | ||||||||||||||||||||||||||||||||||||
Debt covenant, maximum add back of extraordinary, unusual or nonrecurring losses, charges or expenses | $ 13,600,000 | $ 13,900,000 | |||||||||||||||||||||||||||||||||||
Debt covenant, remove add back realized losses | 53,000,000 | ||||||||||||||||||||||||||||||||||||
Deferred purchase price obligations payable allowed | 11,000,000 | ||||||||||||||||||||||||||||||||||||
Capital equipment financing general basket allowed, certain permitted debt | 7,500,000 | ||||||||||||||||||||||||||||||||||||
Capital equipment financing basket allowed | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||
Consolidated leverage ratio required, proforma basis | 3.75 | ||||||||||||||||||||||||||||||||||||
Dispositions, general basket limitation | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||
Dispositions, general basket limitation, sale/leaseback transactions | 3,000,000 | ||||||||||||||||||||||||||||||||||||
Investment limitations, non-guarantor subsidiaries | 500,000 | ||||||||||||||||||||||||||||||||||||
Investment limitations, all other investments | 2,500,000 | ||||||||||||||||||||||||||||||||||||
Debt origination fees | $ 900,000 | ||||||||||||||||||||||||||||||||||||
Mandatory prepayments, percentage of net cash proceeds | 100.00% | ||||||||||||||||||||||||||||||||||||
Sixth Amendment To Credit Agreement | Minimum | Eurodollar | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Credit facility, basis spread on variable rate | 2.25% | ||||||||||||||||||||||||||||||||||||
Sixth Amendment To Credit Agreement | Maximum | Eurodollar | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Credit facility, basis spread on variable rate | 4.25% | ||||||||||||||||||||||||||||||||||||
Amended Credit Agreement | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Credit facility, maximum borrowing capacity | $ 200,000,000 | ||||||||||||||||||||||||||||||||||||
Debt covenant, consolidated leverage ratio | 4 | ||||||||||||||||||||||||||||||||||||
Debt covenant, consolidated fixed charge coverage ratio | 1.20 | ||||||||||||||||||||||||||||||||||||
Amended Credit Agreement | Letter of Credit | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Credit facility, maximum borrowing capacity | $ 15,000,000 | $ 15,000,000 | $ 15,000,000 | ||||||||||||||||||||||||||||||||||
Eighth Amendment To Credit Agreement | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt covenant, consolidated EBITDA, minimum | 2,500,000 | $ 13,000,000 | $ 18,000,000 | ||||||||||||||||||||||||||||||||||
Eighth Amendment To Credit Agreement | Subsequent Event | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt covenant, non-recurring charges for adjustments made to cost of goods sold for merchandise inventory impairment, maximum | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||
Debt covenant, non-recurring charges for establishment of liability reserves, maximum | $ 15,000,000 | ||||||||||||||||||||||||||||||||||||
Debt covenant, consolidated EBITDA, minimum | $ 3,000,000 | ||||||||||||||||||||||||||||||||||||
Eighth Amendment To Credit Agreement | Letter of Credit | Subsequent Event | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Credit facility, maximum borrowing capacity | $ 9,400,000 | $ 15,000,000 | |||||||||||||||||||||||||||||||||||
Eighth Amendment To Credit Agreement | TrancheA Revolving Credit Facility | Subsequent Event | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt expected exit fees at termination | 800,000 | ||||||||||||||||||||||||||||||||||||
Eighth Amendment To Credit Agreement | TrancheA Revolving Credit Facility | Subsequent Event | Eurodollar | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Credit facility, basis spread on variable rate | 4.75% | 4.50% | |||||||||||||||||||||||||||||||||||
Eighth Amendment To Credit Agreement | TrancheA Revolving Credit Facility | Subsequent Event | Base Rate | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Credit facility, basis spread on variable rate | 3.75% | 3.50% | |||||||||||||||||||||||||||||||||||
Eighth Amendment To Credit Agreement | TrancheB Revolving Credit Facility | Subsequent Event | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Credit facility, maximum borrowing capacity | 35,000,000 | ||||||||||||||||||||||||||||||||||||
Debt covenant, minimum outstanding principal amount to receive fairness opinion | 25,000,000 | ||||||||||||||||||||||||||||||||||||
Current borrowing capacity | 15,000,000 | $ 20,000,000 | |||||||||||||||||||||||||||||||||||
Long-term debt, discount | $ 700,000 | ||||||||||||||||||||||||||||||||||||
Eighth Amendment To Credit Agreement | Axar | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Credit facility, maximum borrowing capacity | 35,000,000 | 35,000,000 | 35,000,000 | ||||||||||||||||||||||||||||||||||
Long-term debt, discount | $ 700,000 | $ 700,000 | $ 700,000 | ||||||||||||||||||||||||||||||||||
Long-term debt, interest rate | 8.00% | ||||||||||||||||||||||||||||||||||||
Payments of lender fees | $ 700,000 | ||||||||||||||||||||||||||||||||||||
Seventh Amendment To Credit Agreement | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt origination fees | $ 200,000 | ||||||||||||||||||||||||||||||||||||
Debt prepaid amount | $ 4,000,000 | ||||||||||||||||||||||||||||||||||||
Seventh Amendment To Credit Agreement | Minimum | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt covenant, consolidated secured net leverage ratio | 5.75 | ||||||||||||||||||||||||||||||||||||
Seventh Amendment To Credit Agreement | Maximum | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt covenant, consolidated secured net leverage ratio | 6.25 | ||||||||||||||||||||||||||||||||||||
Scenario, Forecast | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt covenant, consolidated fixed charge coverage ratio | 1 | 1.10 | 1 | 1.10 | 1 | 1.20 | |||||||||||||||||||||||||||||||
Scenario, Forecast | Minimum | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt covenant, consolidated leverage ratio | 4 | ||||||||||||||||||||||||||||||||||||
Scenario, Forecast | Maximum | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt covenant, consolidated leverage ratio | 4.25 | ||||||||||||||||||||||||||||||||||||
Scenario, Forecast | Sixth Amendment To Credit Agreement | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Disposition of assets, net cash proceeds estimated by June 30, 2019 | $ 12,000,000 | ||||||||||||||||||||||||||||||||||||
Debt covenant, consolidated secured net leverage ratio | 4.50 | 5 | 5.50 | ||||||||||||||||||||||||||||||||||
Dispositions, general basket limitation | $ 3,000,000 | 12,000,000 | $ 3,000,000 | ||||||||||||||||||||||||||||||||||
Scenario, Forecast | Eighth Amendment To Credit Agreement | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt covenant, consolidated EBITDA, minimum | $ 9,250,000 | $ 8,250,000 | $ 8,000,000 | $ 3,500,000 | $ 1,000,000 | ||||||||||||||||||||||||||||||||
Scenario, Forecast | Eighth Amendment To Credit Agreement | TrancheA Revolving Credit Facility | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Debt instrument, ticking fees as percentage of outstanding and payable amount | 3.00% | ||||||||||||||||||||||||||||||||||||
Debt instrument, ticking fees as percentage of outstanding amount | 2.00% | 1.00% | 1.00% | 1.00% | |||||||||||||||||||||||||||||||||
Debt instrument, ticking fees as percentage of payable amount | 1.00% | ||||||||||||||||||||||||||||||||||||
Scenario, Forecast | Eighth Amendment To Credit Agreement | TrancheA Revolving Credit Facility | Eurodollar | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Credit facility, basis spread on variable rate | 6.00% | 5.75% | 5.50% | ||||||||||||||||||||||||||||||||||
Scenario, Forecast | Eighth Amendment To Credit Agreement | TrancheA Revolving Credit Facility | Base Rate | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Credit facility, basis spread on variable rate | 5.00% | 4.75% | 4.50% | ||||||||||||||||||||||||||||||||||
Scenario, Forecast | Eighth Amendment To Credit Agreement | TrancheB Revolving Credit Facility | |||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||
Incremental borrowing amount, or integral multiple thereof | $ 5,000,000 |