Q3 2020 StoneMor Partners LP Earnings Call
Please continue to stand by your conference will begin momentarily. We thank you for your patience and ask that you. Please remain on the line.
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Greetings and welcome to the Stonemor third quarter earnings release call. During the presentation. All participants will be in a listen only mode. Afterwards, we will conduct a question and answer session at that time. If you have a question. Please press the one followed by the four on your telephone.
If at any time during the conference you need to reach an operator.
Please press Star zero.
As a reminder, this conference is being recorded Thursday November 12 2020.
I would now like to turn the conference over to Keith Trust VP financial planning and analysis. Please go ahead.
Thank you.
Good afternoon, everyone and thank you again for joining us.
The Stonemor Inc. conference call to discuss our 2023rd quarter financial results.
Gentlemen, I have a copy of the press release, we issued earlier today if anyone does not have a copy you can find the full release on our website at www Dot Stonemor dotcom. Additionally, a copy of the presentation can also be found on our web.
Right.
With us on the call. This afternoon are Joe Redling, President and Chief Executive Officer, and Jeffrey D., Giovanni Senior Vice President and Chief Financial Officer.
Before we begin as usual I would like to remind everyone that this conference call will include certain forward looking statements within the meaning of the private securities.
Ladies Litigation Reform Act of 1995.
All statements that address operating performance events or developments that we expect or anticipate to occur in the future are forward looking statements.
These forward looking statements are based on management's good faith beliefs and assumptions.
Our management believes that these forward looking statements are reasonable.
However, you should not place undue reliance on any such forward looking statements because such statements speak only as of today's date we.
We do not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information future events or otherwise except as required by law.
In addition forward looking statements are subject to certain.
On risks and uncertainties that could cause actual results events and developments to differ materially from our historical experience and our present expectations or projections.
These risks and uncertainties include but are not limited to those described in the reports, which we file with the SEC.
During the call we will reference certain non-GAAP.
Certain financial measures such as.
Comparable location revenues adjusted operating income adjust.
Adjusted comparable location operating income EBITDA, adjusted EBITDA field, EBITDA and Unlevered cash from operations.
Reconciliation of these measures to the most directly comparable measures calculated in accordance with GAAP is provided.
Got it in the presentation.
With that ill now turn the call over to Joe Redling, we'll take it from here.
Thank you Kate.
Thank you for joining us this afternoon for our third quarter earnings call.
I hope that you and your family continue to remain safe and healthy as we all continue to navigate the pandemic.
I'd like I say this every quarter, but the third quarter was once again very eventful for both Stonemor and our nation as a whole.
During the second quarter, we reported strong sales production results with those trends continuing into July.
As we closed the third quarter I am pleased to report that our cemetery sales per.
Okay and reached record levels driven.
Driven primarily by strong growth in preneed sales production.
Small a portion of that record level of production was also from Atneed activity driven both by coded and increased mortality rate in general.
While the sales production growth in the second and third quarter are clearly encouraging.
Result.
It's much more about the sustainability of that performance, particularly if and when the cobot impact moderate and we eventually return for normalized environment.
With the team that we built.
And the accompanying culture changes along with the reinvestment that has been committed to our key property.
Readout profit sees that we've implemented we are in a strong position to optimize our results regardless of the operating environment, which we find ourselves.
I will talk in more detail on the sales production levels in a few minutes.
Profit 19, Unfortunately continues to be a driving force in our daily activities.
Our on site teams.
We continue to serve faithfully on the front line. This public health crisis and are doing so even as cases continue to rise within our community.
We've seen spikes in the number of cases and are continuing to be diligent in our preventive measures and safety protocols. This.
Additionally, we ramped up our procurement efforts and have been able.
And the secure the necessary PE for our teams for both their immediate and longer term.
We continue to work closely with local and state governments and authorities to ensure that our locations meet the standards of care for our guest.
Particularly as we see spikes in cases and states are starting to reimpose restrictions.
On the number of deaths permitted in gathering.
We have set a minimum standard in our locations requiring mass for all indoor activity as.
As well as outdoor activities, where social distancing is not practical or possible.
Of course, where local standards are even more stringent.
We adhere to those as well.
Our corporate team continues to work with Moses.
And we'll continue to do so into 2021.
We have seen very little disruption in our corporate office as a result of the remote work environment. In fact, we've experienced increases in employee productivity and job satisfaction as our team has been working remotely now.
Eight months.
With this in mind, we secured a termination agreement with our current landlord and will now lease a significantly smaller office footprint, a move that will save us approximately $1 billion annually.
Jeff will provide some additional color on this transition.
Very proud of our.
Premium across the country and how they've responded in the wake of this pandemic occur.
Across the company our leaders have ensured that their teams are ready to handle the rapid shift that we've seen with Kobe.
We continue to utilize and expand on the technologies available to us, particularly for virtual meetings with customers. In addition to remain.
Maintenance socially distant during the process the virtual meetings allow family members the plan together, even when they are apart.
It has enhance the experience for many families and we received great feedback from staffing customers alike.
Unfortunately, it looks like COVID-19 will continue to impact our business for the remainder.
2020, and well into 2021.
With more surges predicted and additional lockdowns possible. Our teams are prepared to continue their important work should that happen.
We are an essential business and we will remain open to serve our communities throughout the duration of this pandemic and in coordination with state and local requirement.
As I noted our third quarter cemetery sales production on a comparable location basis represented record level.
As a reminder, when we talk about cemetery sales production, we're looking at non-GAAP measures that focus on new pre need contract dollar value.
Together with ATMI contract dollar volume.
We know pre need existed.
Jeff will review more details on GAAP financial performance in a few minutes.
On a comparable location basis, our cemetery sales production for the third quarter increased 27% compared to the third quarter of 2019.
This growth was driven by a very strong 32%.
He's in comparable location pre need sales production.
Certainly we believe that a portion of this growth can be linked to an increase in general awareness of the need for pre need planning, particularly in light of Cobiz.
However, we also attribute a significant portion of this growth through our own internal activity and the improved.
Quality of our sales and marketing teams in their efforts.
We've seen a material decline in turnover compared with our own historical rate.
Our teams worked tirelessly throughout the third quarter and these results are a testament to their hard work and dedication using.
These impressive production results occurred across all regions.
In preparing and experiencing consistent performance across the board, which demonstrates the core improvement in our sales process and culture that I believe is sustainable and it is a very encouraging sign regarding future growth.
I am extremely proud of our sales and marketing team.
Been a major focus of our.
We are and we're seeing a brand new culture take hold one that's focused on performance and over achievement.
In both our pre need and at need sales deduction, we've increased the number of contracts signed up approximately 28% year over year for pre need and 12% per annum.
Similarly, we've seen an increase in content.
Our value in both screening and that means a combined 6.5% increase as all of our locations have continued to undergo regular pricing reviews.
Again, and I'd like to emphasize this point this is comparable location growth it.
There was no benefit from new acquisitions in for.
Back we have achieved this remarkable growth despite the disruptions generated from divestiture activity, which I will discuss shortly.
We're in a solid fourth quarter, driven largely by pre need production momentum.
We are driving this momentum through strong lead generation aided by our improved marketing efforts obvious.
Obviously.
Belonged local or national shutdowns could have an impact on our ability to drive continued growth of pre need. So we're watching that closely and we'll adapt as needed.
Jeff will go into further detail, but after we adjust for comparable location.
That is excluding now divested location from prior year results.
Our third quarter revenues increased 11% over prior year with.
With that growth, primarily driven by gains in cemetery revenue.
As you know we've also been very focused on reducing our expenses across the board.
We saw a $6 million decrease in the quarter for our total expenses compared to.
In the third quarter of 2019, representing a 7.5% decrease year over year in total call.
These savings are the direct result of the transformation initiatives that have been implemented by our team.
The major initiatives that we've identified early in our transformation process have now been largely implemented and.
Now focused on maintaining those savings.
Certainly there are additional opportunities to further decrease our costs and will continue to identify them.
We're also focused on refining the processing and ensuring that we continue to realize and maximize the cash flow benefits from these initiatives as we move forward.
The revenue growth and expense savings combined to generate operating income of $3.2 million, which is nearly an $11 million improvement from the third quarter of 2019 on a comparable location basis. It's.
It's been a tremendous amount of effort from the team to drive revenue and decreased.
Very much that allowed me to talk about operating income instead of losses.
While we have much more work to do I am very pleased with our progress and how we have remained laser focused on executing our turnaround plan.
I believe there are additional opportunities ahead as we continue to focus on top line revenue growth expense management.
Comp and margin expansion.
One metric that we watch and manage internally as field EBITDA.
That's total revenues, excluding investment and other revenue.
Less total costs and expenses and excluding corporate overhead and depreciation.
Field EBITDA for the third quarter was 5.4 million.
Would you be dollars, a $7.6 million increase over the third quarter of 2019.
On a year to date basis, Weve seen a $10.6 million increase in field EBITDA over the prior year.
As we talked about on our second quarter call we.
We have now fully implemented Cooper, our new bids.
And spend management platform across our organization.
It's still early in the ramp up process, so were not able to fully realized savings generated from this launch, but we do expect to see that as we move forward.
Coming out of the starting gate, we're seeing positive early indicators with regards to the rollout and implementation.
So that gives us great confidence for example, our adoption rates exceed 85%, which was a lofty goal based on past implementation.
Importantly, our key vendors have embraced the new purchase order system that was implemented as part of the launch. This is a very positive indicators the majority of our non payroll related.
Good spend will now be managed through the Cooper platform.
That greatly enhances our ability to proactively review spending request valve.
Valuate contracts and procedural compliance.
And monitor our spend versus our budget performance.
From a cash flow perspective.
We continue to.
To generate positive operating cash flow generating another $2.6 million from operating activities in the quarter.
That's on a levered basis.
So it includes $6.5 million in cash interest payments in the quarter.
When adding back the cash interest payments are unlevered cash flow from operations was $9.1 million.
Third quarter.
In addition to the cash inflows from operations. We've also seen improvements on some of our trust assets.
This is a long term strategic asset for the company.
Specifically during the third quarter.
We increased the value and trust by more than $15 million.
Between the Unlevered operating cash flow.
And trust performance, that's nearly $25 million of value generated during the third quarter.
We're now truly beginning to see the earnings power of the business. When you consider the growth in Unlevered operating cash flow together with long term earnings power of our trust assets.
Before I turn the call over to Jay.
Jeff I want to circle back to the divestiture activity.
As you may have seen from our press release on Monday.
We have completed the sale of our California profit.
Thats sales closing now have exceeded $55 million and total debt reduction.
May recall that our indenture agreement requires at a 100% of the first $55 million met.
Seed from divestitures are used to reduce debt.
At this point, 80% of the net proceeds from future divestitures will be utilized to repay the debt while stonemor will retain the other 20% and those proceeds will be reinvested back into the business via capital expenditures.
On that note. We also announced that we signed a sales agreement to sell the remaining assets on the West coast.
That's nine cemeteries and 10 funeral homes for a total price of $6.2 million.
In addition to providing an attractive multiple the deal will allow stonemor to significantly reduce overheads and regional costs as we fight.
Finalized our strategic goal of exiting operations on the west coast, and creating a more sustainable and efficient operating footprint.
It is expected that this transaction will be completed by the end of 2012.
The completion of these deals will conclude that divestiture phase of our transformation process.
We'll continue to look for opportunities to strengthen and de leverage our balance sheet.
Although that may come through strategic acquisitions that add new assets without increasing our debt load.
I also want to take a minute to formally introduce our newest board member Kevin Patrick.
We made the announcement back in September, but I havent.
Have the opportunity to speak publicly about Kevin.
He joins our board as well as an experienced chief financial Officer currently with the colonial Williamsburg Foundation.
Which has assets in excess of $1 billion, including a $700 million down.
Having extensive financial experience with.
David This is an asset management and financing.
Certainly enabled Kevin to make immediate contribution to Stonemor screeches success rate.
We're very excited to welcome him to the board.
On that note I will turn the call over to Jesse Giovanni who will walk you through more details on our financial performance during the third quarter.
Okay.
Thank you Joe.
And thank you all for joining us today I'm proud of the financial performance to Stonemor team delivered in the third quarter.
I wanted to I want to thank the team for their tireless efforts in prioritizing the safety of our people and communities in supporting the families. We serve.
First before we dive into the GAAP results. Please note that non-GAAP sales production performance that Joe discussed is truly a measure of our current period sales production. It is not primarily reflected in these GAAP results. The non-GAAP Cemetery production performance was a primary driver in.
Integration of Unlevered operating cash flows of $9.1 million for the third quarter, which excludes cash interest payments of $6.5 million. In addition.
Between investment returns in contributions from customer collections, we delivered growth in our trust assets.
Of 15 points.
$4 million for the quarter.
On slide four you will see a snapshot of our third quarter GAAP financial results.
GAAP revenues are more heavily related to the timing of pre need turning to atneed.
Any prudent contract those components will be recognized sometime in the future as merchandise delivered.
In services are performed on a GAAP basis, we generated revenues of $76.9 million with the SEC for the third quarter compared to $73.1 million for the prior year period.
In Threeq you 20, we generated operating income of $3.2 million and parents.
On an operating loss of $6.6 million in the third quarter 2019.
In order to provide additional clarity into these results along with the comparisons to prior year I will refer to search results on a comparable location basis.
That is excluding the locations that have been divested.
Between January Onest 2019 at September Thirtyth 2020.
We believe that this comparison provides a better picture of our current performance reconciliations of these adjusted measures to the GAAP financials are included as an appendix to the presentation, which can be found on our website.
Having said that we generated $76.8 million of revenues from comparable locations for the third quarter, which represents a $7.6 million or 10.9% increase on a comparable location basis over the same quarterly period in 2019.
Cemetery revenue comprised 83% of our revenue.
For the third quarter 2020, and was primarily driver of the year over year increase in total revenues accounting for $6.6 million.
Of 7.59 comparable location increase.
Within the cemetery segment in terms of revenue, which is largely recognized at the time.
Mel drove the increase on the strength of the strong cemetery production performance that we've highlighted.
Funeral home revenue, which makes up the remaining 17% of revenues experienced is your point 9 million year over year increase on a comparable location basis with the bulk of that growth.
We generated a recognition of merchandise related revenues the gains in revenues were offset by declines in average contract values for our Atneed services as we experienced an $11.7 million increase in call volume volume year over year.
The decline in average contract.
Value was driven by reduced restrictions.
Service opportunities related to covert social distancing.
Moving ahead to slide five we had operating income of $3.2 million.
This represents approximately $11 million improvement over the third quarter 2019, when we reported a comparable location.
I was up $7.8 million, excluding other losses. It also represents a sequential improvement compared to the second quarter 2020, when we reported breakeven operating income on a comparable allocation basis, and excluding a gain on divestitures and other losses certainly.
The growth in revenue played a major part in driving operating income, but we also benefit from a reduced cost structure and our transformation initiatives that both reduced our variable cost on a percent of revenue bases and reduced our fixed costs.
On the expense side, we've made tremendous strides.
We are reducing our overall cost the total cost and expenses of $73.6 million on a GAAP basis during the third quarter 2020, representing a $5.9 million or 7.5% decline from prior year.
Cemetery cost of goods sold as a percent of cemetery revenue decreased.
Crease from 17.6% for the third quarter, 2019% to 15.6% for the third quarter 2020.
The decrease in percentage was largely driven by the decline in merchandise revenue, which typically carries a lower margin than determine and services revenue.
Cemetery expense, which is.
Includes the cost associated with the maintenance outsourcing admissions declined 1.7 million overall or 9% versus the same period last year.
Which is primarily related to maintenance and landscape. It gets expense savings certainly much of the savings is being driven by our transition of maintenance and landscaping.
During two new landscape and we rolled out the program to most of our locations, but still have some locations that will be transitioned over the coming months.
Those savings have been offset with continued investment in locations with repairs and maintenance activity that does not meet the standards for capitalization.
In addition, we continue to drive savings in our cemetery selling expenses with a total savings of $1 million. Despite the increase in revenues.
<unk> expense as a percentage of total cemetery revenue improved to 21.3% for the third quarter 2020, compared to 24% for the third quarter 2019.
This is improvement is driven by increases in sales productivity through enhanced training and more efficient marketing spend as we more closely managed and target our digital leads less.
Lastly on a cemetery side side, we drove Gina saving of 0.5 million overall with the elimination of.
Certain administrative expenses and tighter expense management.
It's important to note that our three Q2 thousand 20 costs also include zero point $3 million in covert related purchases as we manage through the pandemic and ensure that our location tagged necessary safety equipment. This.
This line certainly plays.
We'll look to see additional savings generated with the launch of Cooper Jeter.
Funeral home expenses were flat year over year.
Despite the increase in funeral home revenue on a percentage of revenue basis, we saw a slight decline cost as our locations focused on offsetting a decline in service revenue.
Through higher margin merchandise and finally, we reduced corporate overhead by $1.8 million, a 15.8% decrease over the third quarter 2019, including those savings was a decrease of $2 million related to professional consulting fees and our ability to execute many of these trends.
Information initiatives with our own team and relying less on third party professionals is a true Testament to the leadership and dedication from everyone. On that note. We're also doing more with less as we significantly reduced our payroll at corporate during the second half of 2019, but also during the second quarter 2000.
We're 20, when we executed an additional reduction in force in April.
The savings from the most recent riff or now materializing after previously being offset by associated severance costs.
We've also reduced.
Our other expenses across the board, although those have been offset by increased insurance.
Additional investment in our corporate marketing efforts to drive more higher quality leads moving forward.
In addition to the strike that we made in our income statement. We've made similar strive in terms of our cash flows and are pleased with the overall results I would like to turn your attention to slide six for some key metrics.
And I am happy to report that we have once again achieve positive cash flows from operations for the second consecutive quarter for the nine months ended 932020, we had $3.8 million in cash flows from operation, which includes $20 million of cash interest payments, we were able.
Execute this while also reducing our payables balance by $3.8 million.
Specifically for the third quarter that equates to $2.6 million in cash flows from operation and again Thats. After a $6.5 million cash interest payments, we have now generated $9 million in leverage.
Operating cash or slow over the last two quarters. We've done this without seeing a material increase in our payables.
So its a truly representative of operating cash flow generation.
Looking back at 2019, you may recall that during the third quarter, we actually generated $4.8 million in operating cash flow.
But that was really a function of timing as we had negative 18.5 million in operating cash flow in the second quarter and negative $11.2 million in operating cash flow in the fourth quarter 2019.
As we look at our current results, we believe that two sequential quarters of positive operating cash flow.
But 19.
Pandemic during the latter stages in third quarter, we started increasing our capex spend but that has yet to show up on our cash flows due to the natural cycles of payables.
On the debt side and as Joe mentioned with the closing that sale the remaining locations in California, we exceeded our $55 million in debt reductions.
We are targeting the completion of the Oregon divestitures in the fourth quarter, which will provide additional reductions to our debt as well as provide additional capital to further accelerate our capex reinvestment initiatives.
As a reminder, as it relates to our debt we have the option until January 32022.
Up paying 7.5% cash interest and 4% paid in kind interest, we're paying 9.875% cash interest with no paid in kind.
After January 2022, we are obligated to pay cash interest of 9.875 until maturity.
Our intention for the fourth quarter 2020, we will be to pay a full cash interest although that decision will be finalized in December and market conditions, including co related issues may impact that ultimate decision.
We have also been carefully monitoring and tracking our trust performance with more than $800 million and trust.
Assets, including 19 million that is classified as held for sale, we know that an uptick in performance can have a material impact on our results.
There has been a considerable amount of market volatility recently, especially with the unknowns from the pandemic in the election during the third quarter, we drove net returns of $15 million yes.
And see on page seven we calculated.
Those amounts we also added $17.4 million during the quarter in terms of net contributions primarily from customer receipts increases and trust balances were partially offset by $16.9 million in distributions representing.
Net asset creation during the third quarter of $50.4 million.
You will you will continue to closely monitor track and track our performance portfolio with the help of our outside advisors and trust committed to maximize the values from these trusts as Joe noted between our Unlevered cash flow from operations and.
The growth in trust assets, we created nearly $25 million in asset value during the third quarter.
Lastly, Joe mentioned, our corporate office, we have been working remotely since early March and our team has not missed a beat even prior remote working environment. We had lifted a portion of our office for potential sub.
Lease, but the previously executed breadth.
We were leasing more space than we necessarily need and represent an opportunity to drive further savings as such we identified an opportunity subleased the entire footprint to a single tenant as part of that process, we negotiate a onetime termination fee with our.
Current landlord and the sub lessee negotiate directly with the landlord. Moreover, we signed a new lease in Bensalem for new corporate office, which is expressed only a third of our existing space between grant utilities and can charges, we expect to save nearly $1 million annually on a cash.
Basis from this transition.
In summary, we have made great progress on our initiatives with steady test reductions.
Coupled with significant expense reductions and positive operating cash flow, we're enthused and remain encouraged about the prospects as we continue to focus on execution and drive.
<unk> operational and financial improvements in the business with that I will turn the call back over to Joe for his final thoughts. Thank you.
Thanks, Jeff.
Yeah, we're seeing our team's hard work and the successful implementation of our plans drive these financial results.
Has been rewarding as we are executing at a very high level.
That said now is not the time to rest we have more to do and when fully embracing the opportunity in each can you continue to build on this momentum.
We have already laid out our plans for 2021 and are beginning to lock down on key initiatives to see.
Start the year off strong and continue to drive EBITDA growth in 2021 impact.
Importantly, we are closely monitoring COVID-19 and its impact.
We'll be prepared to act, if and when it's required.
I continue to commend the resolve of our employees.
They are the backbone of our success.
With this team.
Leading the way I'm very confident that our future remains bright with that I. Thank everyone for their time today and we'll now open the floor for questions.
All right. Thank you so everyone if you'd like to register a question. Please press the one followed by the four on your telephone jewel.
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Technology in your request.
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As a reminder, everyone. It's one for if you'd like to queue up for a question.
Our first question comes from the line of Craig Carlos He was Longfellow investment. Please go ahead.
Yeah, Hi, thanks for the opportunity to ask a question. So I'm I'm new to this story and my question actually ensue.
But the first one is regarding your trust assets on page seven looks like you grew the value of the trust under what scenario would be excess valuing the trust that could be used to.
Health, the holding company Beth Im just not familiar with the match liabilities in the mechanics.
Jeff you want to take that yes.
Okay. So that's a great question so what our across every brand. We believe increased contracting portion of that sale price goes in the trust the customer page.
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Makes makes their monthly payments.
Having said that the liability substantially less so when we service the truck when we service those merchandise assets money comes out of the trust. Each state has different loss. So if theres exit one depending on the state laws. He could disappear you can deal with distribution, but stable.
Sometimes those distributions get hang up and trust, which get hung up in deferred revenue. So it state by state case.
You think that simple Craig Craig. This is Joe I think it's simple way to think about it is as we generate screening sales.
We make contributions to the trust each state has different regulatory.
Three requirements for trust deposits on a pre need contract.
So we make this quarter, we made significant investments in trust, we benefit from the from the yields of those investments.
Certain percentage certain states allow us to distribute that income other states don't.
About 60% of our our trust income 60% of our Arc Trust returns, our distributable and so that's a big piece of income for the company and at the same time as we're adding more value to the trust we're increasing the total the total number of assets that were managing.
And to Jeff's point.
We meet full face value of those contracts go into the trust, which includes quite a bit of margin. So when when we're able to withdraw money from the trust there's quite a bit of margin that comes with that so it's it's it's obviously has multiple components of.
But.
It's complicated, but it's it's tremendous long term asset for the company.
Okay. So.
Have you disclosed what the net asset would be at Q3, assuming.
Trust went into runoff and the contracts were service in a manner that you expect them to be.
And what is the asset to the company.
So you're saying here, we disclosed in the merchandise liabilities associated with those trust assets.
Yes, yes, the excess of the assets over the the mandatory liability.
We don't disclose that at this point in the.
Okay.
But it's something that's very for the future.
Okay.
Okay and then the second question is now that it looks like you sold some assets in your in the middle of a transformation can you give us a little bit or give me a little bit of high level.
Thought on what your field EBITDA.
Potential would be and I really I don't really care about next quarter or the next six months, we're thinking thinking on a normalized level, maybe 18 months or 24 months from now how do you view the earnings power of the business pro forma all the actions that you're looking to to do thank you.
Yes, it's a great question, so so again not.
You know getting into guidance, but we think we still have.
Pretty good margin expansion opportunities in the business.
Stonemor you know we have a pretty diverse group of assets. They are all different sizes around the country.
So we believe the the profitability of these locations.
Our still an opportunity we've had some really good growth and margin expansion this year.
We believe there is still opportunities in many markets to continue that expansion so without getting into specific forecast.
I think we kind of just began to scratch the surface here.
Our first step was to take out well.
We thought were unnecessary cost and structure the business the right way.
Get the topline moving and as you can see from our performance in Q3, when you're moving that topline now quite a bit that flows through to the bottom line.
We are looking at four wall EBITDA auto on a regional basis since what we manage.
Every week and we do have plans in place to really focus on maintaining that topline growth same focus on on expenses.
And and expanding margins as we go forward. So we still think we have opportunities there.
Yes, just to add even with the launch of kuper that some that could.
Geographically benefit that.
Thanks for the time.
Sure.
Alright, Thank you very much and though we have no further questions from the phones at this time I will turn the call back to your host.
Thank you again for your time. This afternoon, we look forward to talking.
So if you again for the fourth quarter.
And full year update in the meantime, if you have any questions that were not answered or discussed on todays call. Please feel free to reach out to Investor Relations at 2158 to 64438. Thank you have a great evening.
That does conclude the conference call for today.
Today, we thank you for your participation and ask that you. Please disconnect your lines.
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