StoneMor Inc. (NYSE: STON) announced an unsolicited proposal from Axar Capital Management to acquire all outstanding shares not owned by Axar for $0.67 per share, representing a 17% premium over the average share price. Axar, which owns 52% of the company, intends to fund the acquisition through equity. The Board has formed a special committee to evaluate the proposal. Additionally, StoneMor entered a purchase agreement with Axar for 23.3 million shares at $0.73 each, amounting to $17 million, closing in June 2020.
StoneMor Inc. (NYSE: STON) reported first-quarter 2020 revenues of $71.2 million, slightly down from $71.5 million in the previous year. The cemetery segment's operating income rose to $5.2 million, while funeral home segment income reached $2.0 million. Corporate overhead decreased significantly to $8.5 million from $13.4 million. The company posted a net income of $9.0 million, boosted by a $24.1 million gain on sales. Excluding this gain, the operating loss improved to $1.5 million from $9.4 million.
StoneMor Inc. (NYSE: STON) announced it will release its Q1 2020 financial results on May 14, 2020, after market close. A conference call to discuss these results is scheduled for 4:30 p.m. ET on the same day. Interested parties can join the call by dialing (800) 734-8592, with early log-in recommended due to pandemic-related precautions. The results and further details will also be accessible via a live webcast on StoneMor's website under the Events & Presentations section.