StoneMor Partners L.P. Announces First Quarter 2009 Results

LEVITTOWN, PA, May 11 (MARKET WIRE) --
StoneMor Partners L.P. (NASDAQ: STON) is pleased to announce increases in
operating cash flows, distributable free cash flows, and adjusted
operating profits for the three months ended March 31, 2009 as compared
to the three months ended March 31, 2008 as shown in the table below:

Three months ended
March 31,
------------------------------
2008 2009
-------------- --------------
(In thousands)

Total revenues $ 43,413 $ 42,598
Operating cash flow (869) 3,210
Distributable free cash flow (a) 6,066 7,234
Adjusted operating profit (a) 8,681 9,905
Operating profit 3,733 1,991
Net income (loss) $ 458 $ (865)

(a) This is a non-GAAP financial measure as defined by the Securities and
Exchange Commission. Please see the reconciliation to GAAP measures within
this press release.

While revenues declined slightly, this was primarily caused by a
reduction in merchandise and services delivered during the three months
ended March 31, 2009 as compared to the same period last year. The value
of contracts written continued to increase, as quarter over quarter
growth approached 7%.

The improvements in our operating measures demonstrate our success in
executing our operating strategy of achieving growth through accretive
acquisitions, improving upon these properties with our pre-need sales
program, and installing and servicing the products we sell as soon as
possible. The improvements are also reflective of the implementation of
our 2009 Expense Reduction Initiative.

Revenues

Revenues decreased by $0.8 million, or 1.8%, to $42.6 million for the
three months ended March 31, 2009, as compared to $43.4 million during
the same period last year.

GAAP accounting requires that we defer the value of contracts written and
investment income earned from trusts until such time as the underlying
merchandise is delivered or service is performed. Accordingly, periodic
changes in GAAP revenue are not necessarily indicative of changes in
either the volume or pricing on contracts originated during the period,
but rather changes in the timing of when merchandise is delivered or
services are performed.

From a business perspective, we believe that the value of contracts
written provides for an extremely important measure of economic value
added during any period and is the production measure that we use
internally to evaluate performance. We believe that it is critical that
our unit-holders are provided with this information.

The following table reconciles total revenues to the value of funeral home
revenues, cemetery contracts written plus interest income earned from
pre-need installment contracts and investment income earned from trusts
for the three months ended March 31, 2008 and 2009:

Three months ended
March 31, Increase Increase
----------------------- (Decrease) (Decrease)
2008 2009 ($) (%)
----------- ----------- ---------- ----------
(In thousands)

Total cemetery revenues $ 37,252 $ 36,330 $ (923) -2.5%
Total funeral home revenues 6,161 6,268 107 1.7%
----------- ----------- ---------- ----------

Total revenues 43,413 42,598 (816) -1.9%
----------- ----------- ---------- ----------

Add:

Increase in deferred sales
revenue 6,015 9,849 $ 3,834 63.7%
Increase (decrease) in
deferred investment income 1,271 838 (433) -34.0%
----------- ----------- ---------- ----------

Total increase in deferred
cemetery revenues 7,286 10,688 3,402 46.7%
----------- ----------- ---------- ----------

Total value of funeral home
revenues, cemetery
contracts written,
interest income and
investment income earned 50,699 53,285 $ 2,586 5.1%
----------- ----------- ---------- ----------

Components:

Pre-need value of cemetery
contracts written 21,056 23,105 $ 2,050 9.7%
At-need value of cemetery
contracts written and
other revenues 16,715 17,158 443 2.7%
Funeral home revenues 6,161 6,268 107 1.7%
Interest income earned 1,309 1,505 196 15.0%
Investment income earned on
trust assets 5,458 5,249 (210) -3.8%
----------- ----------- ---------- ----------
Total $ 50,699 $ 53,285 $ 2,586 5.1%
=========== =========== ========== ==========

While cemetery revenues decreased by $1.0 million, or 2.7%, for the
three months ended March 31, 2009 compared to 2008, the value of pre-need
contracts written and the value of at-need contracts written and other
cemetery revenues both increased. The actual value of pre-need contracts
written increased by $2.1 million, or 9.7%, while the actual value of
at-need contracts written and other revenues increased by $0.4 million, or
2.7% for the three months ended March 31, 2009 as compared to the same
period last year. As noted in our year end press release, the softening of
sales that we saw in late 2008 abated during the three months ended March
31, 2009. We are cautiously optimistic that this trend will continue
throughout 2009.

The substantial buildup of deferred cemetery revenues that occurred during
the three months ended March 31, 2009 ($10.7 million) will eventually be
reflected in our income statement as we meet the criteria for revenue
recognition in the future.

Funeral home revenues increased slightly (1.7%) during the three months
ended March 31, 2009 as compared to the same period last year. During the
first quarter of 2009, the overall death rate dropped as compared to the
first quarter of 2008. Even with this drop in death rate, our overall
funeral home revenues slightly increased for the quarter. During 2008, we
implemented new product offerings, along with a small price increase, in
our funeral homes, which accounts for the quarter-over-quarter improvement

Investment income from trusts declined slightly (3.8%) during the three
months ended March 31, 2009 as compared to the same period last year. This
was primarily caused by the reduction in pre-need products purchased
during the quarter. Investment income is recognized as pre-need products
are purchased.

Operating Cash Flow

Operating cash flows were $3.2 million during the three months ended March
31, 2009 as opposed to an operating cash deficit of $0.9 million during
the same period last year.

The increase in operating cash flows is consistent with the increase in
adjusted operating profit and is a reflection of the increase in the total
value of contracts written.

The cash increase resulting from the change in deferred cemetery revenues
less deferred selling and obtaining costs is a reflection of the increase
in the total value of contracts written. Additionally, the smaller net
cash outflow from the Company's trust is a reflection of the policy of
purchasing and storing the products we sell. This overall philosophy is
what results in increased cash flow.

Distributable Free Cash Flow

We define Distributable Free Cash Flow as net cash provided by operating
activities before changes in appropriate reserves, if any, less
maintenance capital expenditures and other expenditures not related to
normal operating activities, plus working capital borrowings to fund
pre-need growth during the period presented. Distributable free cash
flows increased by 19.3% during the three months ended March 31, 2009 as
compared to the same period last year.

A reconciliation between net cash provided by operating activities (the
GAAP financial measure the company believes is most directly comparable to
distributable free cash flow) and distributable free cash flow for the
three months ended March 31, 2008 and 2009 is presented below:

Three months ended March 31,
------------------------------
2008 2009
-------------- --------------
(In thousands)

Net cash provided by (used in) operating
activities $ (869) $ 3,210
Maintenance capital expenditures (679) (376)
Working capital borrowings to fund pre-need
growth 5,200 4,400
Annual expenses paid, less quarterly
reserves 2,414 -
-------------- --------------
Distributable free cash flow (a) $ 6,066 $ 7,234
============== ==============
Distributions paid during the period $ 6,206 $ 6,813
============== ==============

(a) This is a non-GAAP financial measure as defined by the Securities and
Exchange Commission. Please see the reconciliation to GAAP measures within
this press release.

Annual expenses paid, less quarterly reserves as shown in the chart
above reflects an attempt to normalize certain items where more than one
quarter's expense was included in the current quarter. We usually pay
bonuses and taxes once a year and we have attempted to show the effect of
these items on the quarterly cash flows. No bonuses were paid in the three
months ended March 31, 2009.

Distributable Free Cash Flow is a non-GAAP financial measure, as defined
by the Securities and Exchange Commission. Please see the discussion of
non-GAAP financial measures within this press release.

Adjusted Operating Profit

We define adjusted operating profit as operating profit before the change
in deferred revenues and deferred selling and obtaining costs (excluding
adjustments to deferred revenues related to the mark to market adjustment
of merchandise trust assets) less expenses related to acquisitions.

Adjusted operating profit provides for a production-based view of our
business insomuch that the revenues relate to the value of contracts
entered into and current revenue streams on our trust funds. This is the
measure we use in evaluating our business. Operating profit (the GAAP
financial measure shown in our financial statements) provides for a
delivery-based view of our business insomuch that revenues are recognized
as we deliver products and services to our customers.

As of January 1, 2009, we adopted Statement of Financial Accounting
Standards 141 (R), "Business Combinations" ("SFAS 141 R"). Amongst other
things, SFAS 141 R changed the rules related to acquisition costs (i.e.
legal fees) so that these costs are expensed as incurred rather than
capitalized as part of the cost of the acquisition.

At December 31, 2008, we had $1.4 million in accumulated costs that
related to acquisitions that had not as of yet been completed. These
costs were included in "Other current assets" on our balance sheet. SFAS
141 R required us to expense these costs upon our adoption of the
standard. SFAS 141 R further provided us with the option of either
restating prior year financial statements by allocating these amounts to
the year in which they were incurred or recording all of these expenses
in the first quarter of 2009.

We chose the option of recording all of the expenses in the first quarter
of 2009. Accordingly, "Acquisition related costs" of $1.6 million included
in our operating profit during the first quarter of 2009 includes $1.4
million of costs incurred and paid in prior years and $0.2 million of
costs incurred in the first quarter of 2009.

We believe that adjusted operating profit provides an effective view of
the economic value added in any given period.

The table below reconciles operating profit (the GAAP financial measure
the company believes is most directly comparable to adjusted operating
profit) to adjusted operating profit.

Three months ended March 31,
------------------------------
2008 2009
-------------- --------------
(In thousands)

Operating profit $ 3,733 $ 1,991

Acquisition related costs - 1,586

Increase (decrease) in applicable
deferred revenues (net of cost of goods
sold) 6,507 8,847

(Increase) decrease in deferred
selling and obtaining costs (1,558) (2,519)
============== ==============

Adjusted operating profit $ 8,681 $ 9,905
============== ==============

Adjusted operating profit increased by $1.2 million, or 13.8%, to $9.9
million during the three months ended March 31, 2009, as compared to $8.7
million during the same period last year.

The increase in adjusted operating profit was primarily caused by a:

-- $1.7 million increase in the value of pre-need and at-need contracts
written net of the associated cost of goods sold and selling expenses;
-- $0.2 million increase in interest income on pre-need sales contracts.

These positive developments were offset by a:

-- $0.3 million increase in general and administrative expenses;
-- $0.3 million increase in depreciation and amortization;
-- $0.2 million reduction in investment income earned on trust assets;
-- $0.1 million reduction in adjusted operating profit provided by
funeral homes.

Adjusted Operating Profit is a non-GAAP financial measure, as defined
by the Securities and Exchange Commission. Please see the discussion of
non-GAAP financial measures within this press release.

Operating Profit

Operating profit decreased by $1.7 million, or 45.9%, to $2.0 million
during the three months ended March 31, 2009 as compared to $3.7 million
during the same period last year. The decrease was primarily caused by the
$1.6 million in acquisition related costs recorded during the first
quarter of 2009 along with a $0.8 million decrease in revenues offset by
a $0.7 million decrease in other operating expenses.

The difference in operating profit and adjusted operating profit is caused
by periodic changes in deferred revenues net of their associated deferred
expenses. A substantial portion of our first quarter 2009 increases in the
value of contracts written are still deferred and not as of yet recognized
in operating profit. In time, these deferred revenues will be recognized
in operating profit as we meet the revenue recognition criteria, which is
generally the delivery of merchandise or performance of services.

Other Income (Expense)

We sold a single funeral home during the three months ended March 31,
2009. The gain on sale was approximately $0.5 million.

Net Income (Loss)

We recorded a net loss of $0.9 million during the three months ended March
31, 2009 as compared to net income of $0.5 million during the same period
last year.

The decrease was primarily caused by the $1.4 million non-cash charge for
previously capitalized acquisition related costs, $0.2 million in
acquisition expenses incurred during the first quarter of the year offset
by a $0.5 million gain on the sale of a funeral home, all of which are
discussed above.

Backlog

At March 31, 2009 our backlog was $224.2 million. Backlog is a measurement
of the future operating profit benefit that will be derived from customer
contracts that have been executed for which we have not as of yet met the
GAAP-based revenue recognition criteria and is equal to:

-- deferred revenue net of deferred revenue on unrealized investment
gains or losses;
-- less deferred selling and obtaining costs.

We believe there are no material costs or significant uncertainties
remaining to be determined or accrued for us to be able to realize the
cash benefit of this future operating profit.

2009 Expense Reduction Initiative

In January of this year, we began an initiative that was designed to
reduce our expense base by approximately $5.0 million.

Amongst the more material components of the initiative were the following:

-- reductions in personnel costs by implementing an employee furlough
program;
-- reductions in various sales incentive programs;
-- reductions in various commissions and overrides;
-- reductions in advertising expenses;
-- reductions in certain corporate overhead items.

We realized some of the results of this initiative during the first
quarter of 2009 as corporate overhead declined by $0.1 million and
cemetery expenses declined by $0.1 million as compared to the same period
last year. We would expect to see more substantial savings during the
rest of the year as our initiatives take full effect.

Current Market Conditions and Economic Developments

The reduction in the value of contracts written during November and
December of 2008 abated somewhat during the first quarter of 2009. This is
reflected in the increase in the value of pre-need contracts written and
at-need and other cemetery revenues during the three months ended March
31, 2009 as compared to the same period last year.

This trend improvement combined with the benefits we have seen and will
continue to see from our expense reduction initiative leaves us cautiously
optimistic about 2009.

Our overall business model is strong and is expected to remain strong.
This business model is constructed so that revenues are generated from
pre-need sales of cemetery merchandise and services as well as at-need
sales of cemetery merchandise and services and funeral home merchandise
and services.

We would expect that the sale of at-need cemetery merchandise and services
and funeral home merchandise and services would be more resistant to an
economic downturn. We do not believe the economic downturn would have any
material effect on the sale of these items. These revenue streams
accounted for 54.2% of total revenue for the three months ended March 31,
2009 as compared to 52.1% during the same period last year.

The trend improvement seen in the value of contracts written combined with
the benefits we have seen and will continue to see from our expense
reduction initiative and the resistance to economic downturns imbedded in
a material portion of our revenue stream leaves us cautiously optimistic
about 2009.

A critical issue for us has been the recent decline in the fair value of
equity and (to a lesser degree) fixed maturity debt securities.

We have a substantial portfolio of invested assets in both our Merchandise
Trust and the Perpetual Care Trust. Both trusts have a mix of cash and
cash equivalents, fixed maturity debt securities and equity securities.
Based on the nature of our business, we primarily invest these funds for
income generation rather than for capital appreciation. As such, we are
able to hold securities for long periods of time and our cash flow is
generally not impacted by market fluctuations. Generally, all of the
securities in our trust funds have paid their current distributions and
have indicated their intention to continue to do so.

We have completed substantial evaluations of our invested assets and have
determined that those assets that are other-than-temporarily impaired, and
recorded as a reduction in deferred revenues on the balance sheet, do not
represent a significant portion of our asset base.

Maturation of Debt

Our Series A Notes ($80 million in principal) mature and become due on
September 20, 2009.

On April 30, 2009, we closed our refinancing, the principal of which was
used to repay our Series A Notes, which were due to mature on September
20, 2009. These Series A Notes were paid in full on April 30, 2009 with
the proceeds from the refinancing and the use of existing credit lines.
The changes in the terms and conditions of the new facility as compared
to the prior facility are described on Form 8-K filed with the SEC on May
6, 2009. Please refer to Part 1, Item 2 and Part 2, Item 1A in our
Quarterly Report on Form 10 Q to be filed with the Securities and
Exchange Commission on May 11, 2009 for additional information related to
the Company's credit facilities and the changes thereto.

Investors' Conference Call

An investors' conference call to review the 1st quarter 2009 results
(which will be released before this call) will be held on Monday, May 11,
2009, at 11:00 a.m. Eastern Time. The conference call can be accessed by
calling (888) 662-9069. An audio replay of the conference call will be
available by calling (800) 633-8284 through 1:00 p.m. Eastern Time on May
25, 2009. The reservation number for the audio replay is as follows:
21422957. The audio replay of the conference call will also be archived
on StoneMor's website at http://www.stonemor.com.

About StoneMor Partners L.P.

StoneMor Partners L.P., headquartered in Levittown, Pennsylvania, is an
owner and operator of cemeteries and funeral homes in the United States,
with 232 cemeteries and 59 funeral homes in 27 states and Puerto Rico.
StoneMor is the only publicly traded deathcare company structured as a
partnership. StoneMor's cemetery products and services, which are sold on
both a pre-need (before death) and at-need (at death) basis, include:
burial lots, lawn and mausoleum crypts, burial vaults, caskets, memorials,
and all services which provide for the installation of this merchandise.

For additional information about StoneMor Partners L.P., please visit
StoneMor's website, and the Investor Relations section, at
http://www.stonemor.com.

Forward-Looking Statements

Certain statements contained in this press release, including, but not
limited to, information regarding the status and progress of the company's
operating activities, the plans and objectives of the company's
management, assumptions regarding the company's future performance and
plans, and any financial guidance provided, as well as certain
information in other filings with the SEC and elsewhere, are
forward-looking statements within the meaning of Section 27A(i) of the
Securities Act of 1933 and Section 21E(i) of the Securities Exchange Act
of 1934. The words "believe," "may," "will," "estimate," "continues,"
"anticipate," "intend," "project," "expect," "predict," and similar
expressions identify these forward-looking statements. These
forward-looking statements are made subject to certain risks and
uncertainties that could cause actual results to differ materially from
those stated, including, but not limited to, the following: uncertainties
associated with future revenue and revenue growth; the impact of the
company's significant leverage on its operating plans; the ability of the
company to service its debt; the company's ability to repay or refinance
its Series A notes due on September 20, 2009; the decline in the fair
value of certain equity and debt securities held in the company's trusts;
the company's ability to attract, train and retain an adequate number of
sales people; uncertainties associated with the volume and timing of
pre-need sales of cemetery services and products; the effect of the
current economic downturn; variances in death rates; variances in the use
of cremation; changes in political or regulatory environments, including
potential changes in tax accounting and trusting policies; the company's
ability to successfully implement a strategic plan relating to producing
operating improvement, strong cash flows and further deleveraging;
uncertainties associated with the integration or the anticipated benefits
of the our recent acquisitions; and various other uncertainties associated
with the deathcare industry and the company's operations in particular.

When considering forward-looking statements, you should keep in mind the
risk factors and other cautionary statements set forth in our Annual
Report on Form 10-K and our Quarterly Reports on Form 10-Q filed with the
SEC. We assume no obligation to update or revise any forward-looking
statements made herein or any other forward-looking statements made by
us, whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures

Adjusted Operating Profit

We present Adjusted Operating Profit because management believes it
provides for a useful measure of economic value added by presenting an
effective matching of the value of current and future revenue sources
generated within a given period to the cost of producing such revenue and
managing our day to day operations within that same period. It is a
significant measure that we believe is an indicator of eventual profit
generated within a given period of time.

Adjusted Operating Profit is a non-GAAP financial measure that may not be
consistent with other similar non-GAAP financial measures presented by
other publicly traded companies.

Distributable Free Cash Flow

We present Distributable Free Cash Flow because management believes this
information is a useful adjunct to Net Cash Provided by (Used in)
Operating Activities under GAAP. Distributable Free Cash Flow is a
significant liquidity metric that we believe is an indicator of our
ability to generate cash flow during any quarter at a level sufficient to
pay the minimum quarterly cash distribution to the holders of our common
units and subordinated units and for other purposes, such as repaying
debt and expanding through strategic investments.

Distributable Free Cash Flow is similar to quantitative standards of free
cash flow used throughout the deathcare industry and to quantitative
standards of distributable cash flow used throughout the investment
community with respect to publicly traded partnerships, but is not
intended to be a prediction of the future. However, our calculation of
distributable free cash flow may not be consistent with calculations of
free cash flow, distributable cash flow or other similarly titled measures
of other companies. Distributable Free Cash Flow is not a measure of
financial performance and should not be considered as an alternative to
cash flows from operating, investing, or financing activities.

StoneMor Partners L.P.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

December 31, March 31,
2008 2009
------------ ------------

Assets
Current assets:
Cash and cash equivalents $ 7,068 $ 10,407
Accounts receivable, net of allowance 33,090 35,390
Prepaid expenses 3,422 2,411
Other current assets 14,477 12,821
------------ ------------
Total current assets 58,057 61,029

Long-term accounts receivable - net of allowance 42,309 44,442
Cemetery property 228,499 228,051
Property and equipment, net of accumulated
depreciation 49,615 48,855
Merchandise trusts, restricted, at fair value 161,605 157,210
Perpetual care trusts, restricted, at fair value 152,797 146,987
Deferred financing costs - net of accumulated
amortization 2,425 2,586
Deferred selling and obtaining costs 41,795 44,355
Deferred tax assets 138 138
Other assets 1,000 933
------------ ------------
Total assets $ 738,240 $ 734,586
============ ============

Liabilities and partners' capital
Current liabilities
Accounts payable and accrued liabilities $ 25,702 $ 23,276
Accrued interest 659 651
Current portion, long-term debt 80,478 80,405
------------ ------------
Total current liabilities 106,839 104,332

Other long-term liabilities 1,837 1,874
Long-term debt 80,456 88,789
Deferred cemetery revenues, net 193,017 196,706
Deferred tax liabilities 7,928 7,928
Merchandise liability 75,977 76,259
Perpetual care trust corpus 152,797 146,987
------------ ------------
Total liabilities 618,851 622,875
------------ ------------

Partners' capital
General partner 2,271 2,040
Limited partners:
Common 111,052 104,932
Subordinated 6,066 4,739
------------ ------------
Total partners' capital 119,389 111,711
------------ ------------

Total liabilities and partners' capital $ 738,240 $ 734,586
============ ============

See accompanying notes to the Condensed Consolidated Financial
Statements in Form 10-Q Report for the quarter ended March 31, 2009.

StoneMor Partners L.P.
Condensed Consolidated Statement of Operations
(in thousands, except unit data)
(unaudited)

Three months ended
March 31,
-------------------------
2008 2009
------------ ------------

Revenues:
Cemetery
Merchandise $ 20,953 $ 19,276
Services 9,234 9,238
Investment and other 7,065 7,816
Funeral home
Merchandise 2,389 2,609
Services 3,772 3,659
------------ ------------
Total revenues 43,413 42,598
------------ ------------

Costs and Expenses:
Cost of goods sold (exclusive of depreciation
shown separately below):
Perpetual care 1,101 1,005
Merchandise 4,624 3,795
Cemetery expense 9,487 9,439
Selling expense 8,205 7,826
General and administrative expense 5,229 5,479
Corporate overhead (including $616 and $374 in
unit-based compensation for the three months
ended March 31, 2008 and 2009
respectively) 5,450 5,366
Depreciation and amortization 965 1,310
Funeral home expense
Merchandise 981 967
Services 2,221 2,406
Other 1,417 1,428
Acquisition related costs - 1,586
------------ ------------
Total cost and expenses 39,680 40,607
------------ ------------

Operating profit 3,733 1,991

Other income and expenses:

Gain on sale of funeral home - 475

Interest expense 3,104 3,169
------------ ------------

Income before income taxes 629 (703)

Income taxes
State 166 162
Federal 5 -
------------ ------------
Total income taxes 171 162
------------ ------------

Net income (loss) $ 458 $ (865)
============ ============

General partners' interest in net income (loss)
for the period $ 9 $ (17)

Limited partners' interest in net income (loss)
for the period
Common $ 328 $ (697)
Subordinated $ 121 $ (151)

Net income (loss) per limited partner unit
(basic and diluted) $ .04 $ (.07)

Weighted average number of limited partners'
units outstanding (basic and diluted) 11,784 11,891

See accompanying notes to the Condensed Consolidated Financial
Statements in Form 10-Q Report for the quarter ended March 31, 2009.

StoneMor Partners L.P.
Condensed Consolidated Statement of Cash Flows
(in thousands)
(unaudited)

For the three months
ended March 31,
------------------------
2008 2009
----------- -----------

Operating activities:
Net income (loss) $ 458 $ (865)
Adjustments to reconcile net income to net
cash provided by operating activity:
Cost of lots sold 1,960 1,184
Depreciation and amortization 965 1,310
Unit-based compensation 616 374
Previously capitalized acquisition costs - 1,365
Gain on sale of funeral home - (475)
Changes in assets and liabilities that
provided (used) cash:
Accounts receivable (5,199) (5,670)
Allowance for doubtful accounts 1,179 1,237
Merchandise trust fund (3,465) (1,462)
Prepaid expenses 1,309 1,011
Other current assets 348 292
Other assets (396) 65
Accounts payable and accrued and other
liabilities (3,518) (2,771)
Deferred selling and obtaining costs (1,628) (2,560)
Deferred cemetery revenue 6,601 8,947
Deferred taxes (net) - -
Merchandise liability (99) 1,228
----------- -----------
Net cash provided by (used in) operating
activities (869) 3,210
----------- -----------
Investing activities:
Cost associated with potential acquisitions (495) -
Additions to cemetery property (530) (1,031)
Purchase of subsidiaries, net of common units
issued (1,238) -
Divestiture of funeral home - 475
Additions of property and equipment (1,635) (376)
----------- -----------
Net cash used in investing activities (3,898) (932)
----------- -----------
Financing activities:
Cash distribution (6,206) (6,813)
Additional borrowings on long-term debt 5,650 8,815
Repayments of long-term debt (182) (556)
Cost of financing activities - (385)
General partner contribution 68 -
----------- -----------
Net cash provided by (used in) financing
activities (670) 1,061
----------- -----------
Net increase (decrease) in cash and cash
equivalents (5,437) 3,339
Cash and cash equivalents - Beginning of period 13,800 7,068
----------- -----------
Cash and cash equivalents - End of period $ 8,363 $ 10,407
=========== ===========

Supplemental disclosure of cash flow information
Cash paid during the period for interest $ 2,681 $ 3,177
=========== ===========
Cash paid during the period for income taxes $ 1,154 $ 280
=========== ===========

Non-cash investing and financing activities
Issuance of limited partner units for cemetery
acquisition $ 500 $ -
=========== ===========

See accompanying notes to the Condensed Consolidated Financial
Statements in Form 10-Q Report for the quarter ended March 31, 2009.

Contact:
Tim Yost
215-826-2800

Copyright 2009, Market Wire, All rights reserved.

-0-