SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

3 Months Ended

Mar. 31, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

14. SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

The 2024 Notes were guaranteed by the Company and its 100% owned subsidiaries, other than the co-issuers (except as to each other’s obligations thereunder), as described in Note 8 Long-Term Debt. The guarantees were full, unconditional, joint and several. The Partnership and CFS West Virginia were the co-issuers of the 2024 Notes.

StoneMor Inc. is the “Parent” for the consolidating financial statements presented as of March 31, 2021 and December 31, 2020 and for the three months ended March 31, 2021 and 2020. The Company’s consolidating financial statements include the accounts of cemeteries operated under long-term leases, operating agreements and management agreements. For the purposes of this note, these entities are deemed non-guarantor subsidiaries, as they are not 100% owned by the Company. The Company’s consolidating financial statements also contain merchandise and perpetual care trusts that are also non-guarantor subsidiaries for the purposes of this note.

The financial information presented below reflects the Company’s standalone accounts, the standalone accounts of the co-issuers, the combined accounts of the guarantor subsidiaries, the combined accounts of the non-guarantor subsidiaries, the consolidating adjustments and eliminations and the Company’s consolidated accounts as of March 31, 2021 and December 31, 2020 and for the three months ended March 31, 2021 and 2020. For the purpose of the following financial information, the Company’s investments in its subsidiaries and the guarantor subsidiaries’ investments in their respective subsidiaries are presented in accordance with the equity method of accounting (in thousands):

UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEETS

March 31, 2021	Parent			Partnership			CFS West Virginia			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents, excluding   restricted cash	$	—		$	—		$	—		$	46,966	$	1,730		$	—		$	48,696
Restricted cash		—			—			—			16,575		—			—			16,575
Assets held for sale		—			—			—			29,258		—			—			29,258
Other current assets		—			—			3,782			66,947		14,337			—			85,066
Total current assets		—			—			3,782			159,746		16,067			—			179,595
Long-term accounts receivable		—			—			1,918			62,568		11,499			—			75,985
Cemetery and funeral home property and   equipment		—			—			414			349,339		32,038			—			381,791
Merchandise trusts		—			—			—			—		524,623			—			524,623
Perpetual care trusts		—			—			—			—		319,175			—			319,175
Deferred selling and obtaining costs		—			—			6,016			93,658		19,394			—			119,068
Intangible assets		—			—			—			42		54,784			—			54,826
Other assets		—			—			—			19,466		2,571			—			22,037
Investments in and amounts due from   affiliates eliminated upon consolidation		—			287,616			—			650,545		—			(938,161	)		—
Total assets	$	—		$	287,616		$	12,130		$	1,335,364	$	980,151		$	(938,161	)	$	1,677,100
Liabilities and Stockholders' Equity
Other current liabilities	$	—		$	—		$	264		$	52,279	$	1,614		$	—		$	54,157
Liabilities held for sale		—			—			—			24,146		—			—			24,146
Long-term debt, net of deferred   financing costs		—			287,616			32,708			1,820		—			—			322,144
Deferred revenues		—			—			35,820			820,645		129,579			—			986,044
Perpetual care trust corpus		—			—			—			—		319,175			—			319,175
Other long-term liabilities		—			—			—			50,631		17,335			—			67,966
Investments in and amounts due to   affiliates eliminated upon consolidation		96,532			96,532			205,830			320,323		562,489			(1,281,706	)		—
Total liabilities		96,532			384,148			274,622			1,269,844		1,030,192			(1,281,706	)		1,773,632
Stockholders' equity		(96,532	)		(96,532	)		(262,492	)		65,520		(50,041	)		343,545			(96,532	)
Total liabilities and stockholders' equity	$	—		$	287,616		$	12,130		$	1,335,364	$	980,151		$	(938,161	)	$	1,677,100

UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEETS (Continued)

December 31, 2020	Parent			Partnership			CFS West Virginia			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents, excluding   restricted cash	$	—		$	—		$	—		$	37,560	$	1,684		$	—		$	39,244
Restricted cash		—			—			—			20,846		—			—			20,846
Assets held for sale		—			—			—			28,575		—			—			28,575
Other current assets		—			—			3,707			63,010		13,326			—			80,043
Total current assets		—			—			3,707			149,991		15,010			—			168,708
Long-term accounts receivable		—			—			2,085			62,283		10,933			—			75,301
Cemetery and funeral home property and   equipment		—			—			452			350,802		31,768			—			383,022
Merchandise trusts		—			—			—			—		501,453			—			501,453
Perpetual care trusts		—			—			—			—		312,228			—			312,228
Deferred selling and obtaining costs		—			—			5,916			91,958		19,026			—			116,900
Intangible assets		—			—			—			45		55,049			—			55,094
Other assets		—			—			—			19,667		2,590			—			22,257
Investments in and amounts due from   affiliates eliminated upon consolidation		—			286,146			—			632,684		—			(918,830	)		—
Total assets	$	—		$	286,146		$	12,160		$	1,307,430	$	948,057		$	(918,830	)	$	1,634,963
Liabilities and Stockholders' Equity
Other current liabilities	$	—		$	—		$	245		$	50,300	$	1,585		$	—		$	52,130
Liabilities held for sale		—			—			—			23,406		—			—			23,406
Long-term debt, net of deferred   financing costs		—			286,146			32,531			2,038		—			—			320,715
Deferred revenues		—			—			34,994			791,111		123,059			—			949,164
Perpetual care trust corpus		—			—			—			—		312,228			—			312,228
Other long-term liabilities		—			—			—			52,588		17,145			—			69,733
Investments in and amounts due to   affiliates eliminated upon consolidation		92,413			92,413			202,924			318,677		544,814			(1,251,241	)		—
Total liabilities		92,413			378,559			270,694			1,238,120		998,831			(1,251,241	)		1,727,376
Stockholders' equity		(92,413	)		(92,413	)		(258,534	)		69,310		(50,774	)		332,411			(92,413	)
Total liabilities and stockholders' equity	$	—		$	286,146		$	12,160		$	1,307,430	$	948,057		$	(918,830	)	$	1,634,963

UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Three Months Ended March 31, 2021	Parent			Partnership			CFS West Virginia			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Total revenues	$	—		$	—		$	1,790		$	64,673		$	15,912		$	(4,062	)	$	78,313
Total costs and expenses		—			—			(2,780	)		(61,585	)		(14,426	)		4,062			(74,729	)
Net (loss) income from equity   investment in subsidiaries		(4,624	)		2,972			(3,404	)		—			—			5,056			—
Interest expense		—			(7,596	)		(917	)		(1,655	)		(305	)		—			(10,473	)
Loss from continuing operations   before income taxes		(4,624	)		(4,624	)		(5,311	)		1,433			1,181			5,056			(6,889	)
Income tax benefit		—			—			—			1,676			—			—			1,676
Net loss from continuing operations		(4,624	)		(4,624	)		(5,311	)		3,109			1,181			5,056			(5,213	)
Income from operations of   discontinued businesses		—			—			—			589			—			—			589
Income tax expense		—			—			—			—			—			—			—
Net income from discontinued   operations		—			—			—			589			—			—			589
Net (loss) income	$	(4,624	)	$	(4,624	)	$	(5,311	)	$	3,698		$	1,181		$	5,056		$	(4,624	)
Three Months Ended March 31, 2020	Parent			Partnership			CFS West Virginia			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Total revenues	$	—		$	—		$	1,194		$	53,555		$	13,069		$	(2,716	)	$	65,102
Total costs and expenses		—			—			(3,169	)		(53,461	)		(13,319	)		2,716			(67,233	)
Net loss from equity investment in   subsidiaries		9,003			17,701			12,585			—			—			(39,289	)		—
Interest expense		—			(8,698	)		(1,911	)		(451	)		(293	)		—			(11,353	)
Loss from continuing operations   before income taxes		9,003			9,003			8,699			(357	)		(543	)		(39,289	)		(13,484	)
Income tax expense		—			—			—			(1,288	)		—			—			(1,288	)
Net loss from continuing operations		9,003			9,003			8,699			(1,645	)		(543	)		(39,289	)		(14,772	)
Income from operations of   discontinued businesses		—			—			—			23,775			—			—			23,775
Income tax expense		—			—			—			—			—			—			—
Net income from discontinued   operations		—			—			—			23,775			—			—			23,775
Net loss	$	9,003		$	9,003		$	8,699		$	22,130		$	(543	)	$	(39,289	)	$	9,003

UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Three Months Ended March 31, 2021	Parent		Partnership		CFS West Virginia			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by operating activities	$	—	$	—	$	310		$	12,171		$	663		$	(8,513	)	$	4,631
Cash Flows From Investing Activities:
Cash paid for acquisitions and capital    expenditures, net of proceeds from    divestitures and asset sales		—		—		(297	)		(933	)		(544	)		—			(1,774	)
Payments to affiliates		—		—		—			—			—			—			—
Net cash provided by investing activities		—		—		(297	)		(933	)		(544	)		—			(1,774	)
Cash Flows From Financing Activities:
Payments from affiliates		—		—		—			(8,513	)		—			8,513			—
Net borrowings and repayments of debt		—		—		(13	)		2,679			(73	)		—			2,593
Other financing activities		—		—		—			(269	)		—			—			(269	)
Net cash used in financing activities		—		—		(13	)		(6,103	)		(73	)		8,513			2,324
Net increase in cash and cash equivalents    and restricted cash		—		—		—			5,135			46			—			5,181
Cash and cash equivalents and restricted     cash—Beginning of period		—		—		—			58,406			1,684			—			60,090
Cash and cash equivalents and restricted     cash—End of period	$	—	$	—	$	—		$	63,541		$	1,730		$	—		$	65,271

Three Months Ended March 31, 2020	Parent		Partnership		CFS West Virginia			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating   activities	$	—	$	—	$	12		$	4,465		$	893		$	(10,608	)	$	(5,238	)
Cash Flows From Investing Activities:
Cash paid for capital expenditures,    net of proceeds from divestitures		—		—		—			26,796			(679	)		—			26,117
Payments to affiliates		—		—		—			—			—			—			—
Net provided by investing activities		—		—		—			26,796			(679	)		—			26,117
Cash Flows From Financing Activities:
Payments from affiliates		—		—		—			(10,608	)		—			10,608			—
Net borrowings and repayments of debt		—		—		(12	)		(29,872	)		(83	)		—			(29,967	)
Other financing activities		—		—		—			(213	)		—			—			(213	)
Net cash used in financing activities		—		—		(12	)		(40,693	)		(83	)		10,608			(30,180	)
Net (decrease) increase in cash and cash   equivalents and restricted cash		—		—		—			(9,432	)		131			—			(9,301	)
Cash and cash equivalents and restricted    cash—Beginning of period		—		—		—			55,453			1,314			—			56,767
Cash and cash equivalents and restricted    cash—End of period	$	—	$	—	$	—		$	46,021		$	1,445		$	—		$	47,466