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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report: (Date of earliest event reported): December 14, 2016 StoneMor Partners L.P. (Exact name of Registrant as Specified in Its Charter) Delaware 001-32270 80-0103159 (State or other jurisdiction of incorporation) (Commission file number) (I.R.S. Employer Identification No.) 3600 Horizon Boulevard Trevose, PA 19053 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code (215) 826-2800 Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Transcript

UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORTPURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report: (Date of earliest event reported): December 14, 2016

StoneMor Partners L.P.(Exact name of Registrant as Specified in Its Charter)

Delaware 001-32270 80-0103159

(State or other jurisdictionof incorporation)

(Commissionfile number)

(I.R.S. EmployerIdentification No.)

3600 Horizon Boulevard Trevose, PA 19053(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code (215) 826-2800

Not Applicable(Former name or former address, if changed since last report)

ChecktheappropriateboxbelowiftheForm8-Kfilingisintendedtosimultaneouslysatisfythefilingobligationoftheregistrantunderanyofthefollowingprovisions:

☐ WrittencommunicationspursuanttoRule425undertheSecuritiesAct(17CFR230.425)

☐ SolicitingmaterialpursuanttoRule14a-12undertheExchangeAct(17CFR240.14a-12)

☐ Pre-commencementcommunicationspursuanttoRule14d-2(b)undertheExchangeAct(17CFR240.14d-2(b))

☐ Pre-commencementcommunicationspursuanttoRule13e-4(c)undertheExchangeAct(17CFR240.13e-4(c))

Item 7.01. Regulation FD Disclosure

RepresentativesofStoneMorPartnersL.P.(the“Company”)willparticipateinmeetingswithinvestorsonDecember14,2016.PresentationslideswillbemadeavailableintheInvestorssectionoftheCompany’swebsiteatwww.stonemor.com.AcopyofthepresentationslidestobeusedisattachedheretoasExhibit99.1.

TheinformationfurnishedpursuanttothisItem7.01,includingExhibit99.1,shallnotbedeemedtobe“filed”forpurposesofSection18oftheSecuritiesExchangeActof1934,asamended(the“ExchangeAct”),orotherwisesubjecttotheliabilitiesofthatsection,norshallitbedeemedtobeincorporatedbyreferenceintoanyfilingundertheSecuritiesActof1933,asamended,ortheExchangeAct.TheCompanyisnotundertakingtoupdatethispresentation.Thisreportshouldnotbedeemedanadmissionastothematerialityofanyinformationcontainedintheinvestorpresentation.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.

Thefollowingexhibitisfurnishedwiththisreport.Exhibitnumber Description

99.1 InvestorPresentationdatedDecember14,2016.

2

SIGNATURES

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,theregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersignedhereuntodulyauthorized.Date:December14,2016 STONEMOR PARTNERS L.P.

By: StoneMorGPLLC itsgeneralpartner

By: /s/SeanP.McGrath Name: Sean P. McGrath Title: Chief Financial Officer

3

Exhibit 99.1

Exhibit99.1StoneMorPartnersL.P.2016InvestorDay–TheLondonNYCHotelDecember14,2016

ForwardLookingStatements2Thispresentationcontainsforward-lookingstatementsthatinvolveanumberofassumptions,risksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromthosecontainedintheforward-lookingstatements.ThePartnershipcautionsreadersthatanyforward-lookinginformationisnotaguaranteeoffutureperformance.Suchforward-lookingstatementsinclude,butarenotlimitedto,statementsaboutfuturefinancialandoperatingresults,thePartnership’splans,objectives,expectationsandintentionsandotherstatementsthatarenothistoricalfacts.Risks,assumptionsanduncertaintiesthatcouldcauseactualresultstomateriallydifferfromtheforward-lookingstatementsinclude,butarenotlimitedto,thoseassociatedwiththecashflowfromourpreneedandat-needsales,ourtrusts,andfinancings,whichmayimpactourabilitytomeetourfinancialprojections,ourabilitytoserviceourdebtandpaydistributions,andourabilitytoincreaseourdistributions;futurerevenueandrevenuegrowth;theintegrationoranticipatedbenefitsofourrecentacquisitionsoranyfutureacquisitions;ourabilitytocompleteandfundadditionalacquisitions;theeffectofeconomicdownturns;theimpactofourleverageonouroperatingplans;thedeclineinthefairvalueofcertainequityanddebtsecuritiesheldinourtrusts;ourabilitytoattract,trainandretainanadequatenumberofsalespeople;thevolumeandtimingofpre-needsalesofcemeteryservicesandproducts;increaseduseofcremation;changesinthedeathrate;changesinthepoliticalorregulatoryenvironments,includingpotentialchangesintaxaccountingandtrustingpolicies;litigationorlegalproceedingsthatcouldexposeustosignificantliabilitiesanddamageourreputation;theeffectsofcybersecurityattacksduetooursignificantrelianceoninformationtechnology;thefinancialconditionofthird-partyinsurancecompaniesthatfundourpre-needfuneralcontracts;andotherrisks,assumptionsanduncertaintiesdetailedfromtimetotimeinthePartnership’sreportsfiledwiththeU.S.SecuritiesandExchangeCommission,includingquarterlyreportsonForm10-Q,reportsonForm8-KandannualreportsonForm10-K.Forward-lookingstatementsspeakonlyasofthedatehereof,andthePartnershipassumesnoobligationtoupdatesuchstatements,exceptasmayberequiredbyapplicablelaw.

Today’sAgenda3TopicSpeakerIntroduction&HistoryBobHellman,ChairmanoftheGPDeathcareIndustryTrendsLarryMiller,CEOHowStoneMorMakesMoneySeanMcGrath,CFOWhatWentWrongBobHellman,ChairmanoftheGPActionPlansLarryMiller,CEONextSteps/ProgressVisibilityBobHellman,ChairmanoftheGPQ&A

AnswersFirst…4StoneMorhasbeenoperatingforoveradozenyearsasamasterlimitedpartnership,pursuingoneconsistentstrategyandoperationalmodelDistributioncutdrivenbyself-inducedoperatingchallengeswhichmanifestedoverthepastfewquartersNotanindustryproblem–industryhasterrifictailwindsNotabusinessmodelproblemOperatingchallengesareknown,solutionsidentifiedandprogressunderwayAsprogressmanifestsitselfinincreasecashflow,weexpectthatdistributionswillbeincreasedoverthenext12-24months

DiscussionTopicsTopicsThisPresentationWillAddress5StoneMorhistoryDeathcareindustrytrendsHowStoneMormakesmoneyWhatwentwrong?SustainabilityofcurrentdistributionActionplansNextsteps/progressvisibility

WhoWeAre6317cemeteries/105funeralhomesacross28statesandPuertoRicoCompleterangeoffuneralmerchandiseandservices,soldbothatthetimeofneedandonapre-needbasis$840millionoftrustinvestments~53,500/16,800funeralservicecallsperformedinthelasttwelvemonthsStructuredasamasterlimitedpartnership(MLP)tooptimizetaxefficiencyNote:AsofSeptember30,2016.SecondLargestOwnerAndOperatorOfCemeteriesInTheU.S.

NationalFootprint7317Cemeteries+105FuneralHomes=422TotalLocationsWAORCACOKSIAILMOINMIOHPAWVKYTNVANCSCMSALGAFLWICurrentStates2004IPOStatesNote:AsofNovember30,2016.NJMDDERIHIPR

22459110010312213914414517117518561943454551647783919898050100150200250300200520062007200820092010201120122013201420152016CemeteriesFuneralHomes8LongHistoryofSteadyGrowth185cemeteriesand98funeralhomesacquiredsince2004IPO(1)Acquisitionshavebeenmadeatmultiplesof4x–6xEBITDACumulativePropertiesAcquiredSinceIPO(1)(1)Netofsales,divestituresandconsolidations.

9DeathcareIndustryTrends

DeathcareIndustryOverview10$20billionindustryConcentratedindependents/non-economicownershipFewscaleplayerstoactasindustryconsolidatorsSubstantialBarrierstoEntryStableDeathRateFavorableDemographicsVirtuallynogrowthincemeterysupplySignificantfinancialandoperatingregulations(stateandfederal)OveralldeathrateremainsstableAgingpopulationdrivingat-needandpre-needdemandPre-needpenetrationonly17%ofpopulationCremationcreatesopportunityformemorializationLargeandHighlyFragmentedIndustry

CemeteriesFuneralHomes&Crematories$16billion$4billionCemeteries&FuneralHomesLargeandHighlyFragmentedIndustry11$20BillionDeathcareIndustryHighlyFragmentedOwnership86%offuneralhomesarefamilyownedorsmallbusinesses;14%ownedbylargecorporationsSources:NationalFuneralDirectorsAssociation;IBIS,Industryresearch70%30%ForProfit7,500Municipal,Military,Religious,Non-Profit,17,500HospiceCarerevenue–$25billionin2016growing7%AssistedLiving–$79billionin2016growing6%CemeteriesOnly

12SubstantialBarrierstoEntryScarcityandcostofrealestateneardenselypopulatedareasZoningrestrictionsInitialcapitalrequirementsAdministrativelycomplexbusinessfornewentrantsCemeteries(SocialInfrastructure)FuneralHomes(SpecialtyRetail)LicensingrequirementsFuneralhomesarepartofthecommunityStrengthoffamilytraditionandheritageBarrierstoentrydrivenbyheritage

StableDeathRate13Industrygrowthdrivenbydemographicsandsupportedbyever-presentdemandformemorializationandcelebrationsoflife2.12.32.42.52.62.73.31990199520002005201020152030PU.S.DeathRate(mm)Sources:NationalFuneralDirectorsAssociation;U.S.CensusBureau;NCHS.

FavorableDemographics14PopulationOver55(mm)Pre-NeedPenetrationAgingbabyboomerscausinggrowthintargetmarketforpre-needsalesTotalPopulation(1)%Over-55(1)(1)Sources:U.S.CensusBureau2014nationalpopulationprojections;industryresearch.(2)Industryresearch.3213353473593703803890%10%20%30%40%50%60%70%80%90%100%0501001502002503003504004505002015202020252030203520402045TotalPopulation%TotalPopulationPre-needpenetrationappearstobelowerintheU.S.thanothercertaindevelopedcountries%Penetration(2)2%17%50%60%0%10%20%30%40%50%60%70%80%90%100%U.K.U.S.CanadaSpain

CremationCreatesOpportunity15CremationNon-Cremation#ofDeaths(mm)(1))(1)TotalanticipateddeathsperU.S.CensusBureau2009projections.TraditionalBurialCosts:~$8,000•Traditionalspace•Vault•Opening/closing•Bronzemarker/granitebaseSampleCremationCosts:~$5,000-$7,000•IndoorNicheorGroundSpace•Cremationvault•Opening/closing•Bronzemarker/plate/granitebaseMarginsupto90%Marginsupto60%Note:Pricesandpackagesvarybylocation.0.00.51.01.52.02.53.03.54.020052010201520202025203020352040Non-CremationRiseofCremationMarginforCremationvs.BurialCremationprofitmarginopportunityasgreatastraditionalburialGrowingdeathrateexpectedtooffset

DeathcareIndustryContext16Deathcareindustrycontinuestogrow,drivenbydemographictailwindsFragmentedownershipandlackofindustryconsolidatorsresultsinsubstantialconsolidationopportunityCremationasmuchofanopportunityasathreatBarrierstoentryserveasthebasisforcompanystability

17HowStoneMorMakesMoney

HowStoneMorMakesMoney18IncomegeneratedfromtrustfundinvestmentsAt-NeedSalesPre-NeedSalesSaleofproductsandservicesattimeofdeathSaleofproductsandservicesinadvanceofneedTrustFundRevenueThreeSourcesofOperatingProfitability

TrustFundRevenue19CemeteriesarerequiredbystatelawtodepositaportionofsalespriceintotrustsFundsinvestedacrossadiversifiedportfoliooffixedincomeandequityinvestmentsActivelymanagedbyCambridgeAssociatesasinvestmentadvisor$376$432$485$465$505$282$312$345$308$335$658$743$830$772$840$0$100$200$300$400$500$600$700$800$900$1,00012/1212/1312/1412/159/16MerchandiseTrustPerpetualCareTrustHistoricalTrustAssets($mm)RealizedProfit($mm)$33$34$37$40$40$9$20$15$14$4-$5$5$15$25$35$45$55$652012201320142015LTMMDSERealizedGains&LossesTotalInterestandDividendsTrendline(InterestandDividends)

At-NeedSales20CloselycorrelatedtodeathrateMarketsharebasedonheritageandrelativelystablePerformancelargelybasedoncostcontrol,servicequalityanddeathrateExpectedtoincreaseinnearfutureasbaby-boomersageU.S.DeathRate(mm)Source:NationalFuneralDirectorsAssociation;U.S.CensusBureau;NCHS.2.12.32.42.52.62.73.31990199520002005201020152030P

Pre-NeedSales21Requiresactivemanagementof:–Salesforceproductivity–CashcycleandtrustfunddepositsPre-needrationale:–ExpandsStonemormarketshare–Extendscustomerlifetimevalueandbuildsvalueintrusts$2,722$2,794$2,997$3,041$3,257$1,615$1,634$1,678$1,685$1,700$0$1,000$2,000$3,000$4,0002012201320142015TTMPre-NeedAt-NeedAverageSalesContractSource:Companyinformation.

22WhatWentWrong?

WhatWentWrongDropinsalespersonnelandpre-needsalesresultedinearningsshortfall:23Programinitiatedayearagoafterextensiveanalysisfromnationalconsultingfirm–FocusedonimprovingproductivityandqualityInitiativesfailedandresultedinlossofnearly200salespeopleCashCycleManagementLackofvigilanceonlong-standingcashmanagementpracticesresultedinlowerquarterlycashflowSalesforceManagementCashflowwasfurtherdepressedbyoperationalmiscues:

SalesforceAttrition24SevereattritioninlowerperformingtiersTotalUniqueProducingSalespeoplePerQuarter916957788824640690740790840890940990Mar-15Jun-15Sep-15Dec-15Mar-16Jun-16Sep-16

TrustFundCashCycleManagement“Tookeyeofftheball”–Trustdepositshaveballoonedinrecentyears–Losttouchwithbestdemonstratedoperationalpractices25CurrentCashonBalanceSheetRecurringCashAOPvaults$7.9$4.0Othervaults$7.9$6.0Markers$3.3$1.0Total$19.1$11.0TrustFund“StrandedCash”($mm)

AOPTransactionSignificantcashdragfromdevelopmentofpre-needsalesforAOPproperties26Pre-NeedBillings($mm)WorkingCapitalNeeds($mm)$8$12$20$0$5$10$15$20$25CumulativeSinceInceptionA/RBuild-upTrustBuild-up$40$40$0$5$10$15$20$25$30$35$40$45$50CumulativeSinceInceptionPre-NeedBillingsBudgetPre-NeedBillingsActual

27ActionPlans

ActionStepsUndertaken28IncreasedinvestmentinhiringandtrainingactivitiesCashCycleManagementCostReductionsVaultinstallationMarkerpre-orderprogramImplementedimmediateandrecurringcostreductionsSalesforceManagement

CostReductions29Abletoachieverealcashsavingsofover$6mmCurrentlyimplementing$5mmofadditionalsavings(completedbyyearend)Byyearend,StoneMorwillhaveimplementedover$11mmofcostsavingsthatwilldirectlyaffect2017cashflowInaddition,StoneMorisevaluatingoptionofusinglifeinsurancecontractstoreplacefuturepre-needtrustdepositsforMerchandiseTrustfund

CashCycleManagement30CostsRequiredExpectedResultsSpecificActionItemsOnlythelossoffuturetrustearningsfromredeemedtrustdepositsInstallingbacklogofuninstalledvaultsAutomatingmarkerordersChangingcontractingandcompensationsystemtobettermanagecashcycleoftrustfunddepositsRecaptureover$20mmofstrandedcapitalImplementationwellunderwayMaterialimprovementinongoingcashflowefficiency

CashCycleManagement31CurrentUnitsonBalanceSheetRecurringUnitsAOPvaults~3,700~1,900Othervaults~7,100~6,000Markers~1,900~600Total~12,700~8,500TrustFund“StrandedUnits”ReverttoprioroperationalefficienciesOpportunitywillresultinsignificantcashinfluxfromtrust

SalesforceManagement32CostsRequiredExpectedResultsSpecificActionItemsHiredNationalSalesManagerHirednationalsalesforcerecruitingfirm,XelerateHired3additionaltrainers(8total)Salesforcerebuildingcosts,including:–Trainerandnewsalescounselorpayroll–TravelexpensesIncreasedsalesforceheadcounttotargetlevelsIncreasedsalesforceretentionInitiativethatwilltake6to9monthstocomplete

Salesforce“Efficiency”Consequences33RecentlossesinheadcountpartiallyoffsetbyimprovementsinproductivityHistoricaldatashowthataveragesalespersonproductivityimprovedevenduringperiodsofgrowingheadcount$38$55$0$10$20$30$40$50$60Avg.MonthlySalesPerPerson($000s)SalesforceRecruiting—Headcount68972269776476801002003004005006007008009007/168/169/1610/1611/16Top300SalespeopleBasedon2014StaticCohort

SalesforceROI34RecruitingandTrainingCostsAvg.LTMBillingsBySalespersonNeartermrecruitingandtraininginvestmentswillresultinhiringandretentionofqualitysalespeopleSalespersonTierAverageLTMBillings($000s)1-100$946101-200$503201-500$253Note:LTMasofQ3’16.Annualrecruitingcosts:$350,000•$250,000fornationalrecruitingfirm,Xelerate•$100,000forinternalrecruitingstaffAnnualtrainingcosts:$3,100,000•$2,100,000forsalesforcetrainingsalaries•$1,000,000forinternaltrainingstaff+otherTotalannualrunratecosts:$3,450,000Total2015costs:$1,500,000Hiringof100“Tier3”salespeoplewouldresultin3.1xROIonannualrecruitingandtrainingcosts(1)(1)Assumes~30%cashmarginbasedonYear1+2cashflow.

35NextSteps/Visibility

WhereWeAreNowBusinessisstabilized–Recentsales,headcountandothermetricsreflectpositivemomentum36AnnualizedYTDSeptYTDSept20162016GAAPOperatingCashFlow$18.5$24.7ActionsundertakentoimpactGAAPOperatingCashFlowin2017:-Recurringtrustfundcashduetoimprovedpractices$10.6-Implementedrecurringcostsavings$11.0EvenAtToday’sReducedRevenuesCurrentDistributionIsSustainable3rdQuarter2016CashDistributionAnnualizedis$44.4

WhatToLookForEvidenceofExecutionofCorrectiveStrategiesSalesForceInitiative–Monthlyoperatingreleasewillgiveprogresstransparency–Expect100-150additionalsalespeoplewilladdedsoon100+peoplealreadyhired&intrainingCostReductionInitiative–Detailedoutlineofthesecoststrategiesin4Q16earningscallCostreductionsnearlycompleteTrustCashManagementInitiative–ExpectstatisticsonthisprojecttobeaddedtomonthlyreleasesRecentvaultinstallationrun-ratehasbeenat25K/yr(vs.6K/y)–Totalstrandedcashexpectedtoberecoveredin6-9months37

PathToDistributionGrowthThetrustfundcashmanagementandcostsinitiativesarewellunderwayWearenowsingularlyfocusedonthesalesrecoveryeffortThereisadirectcorrelationbetweensalesheadcountandoperatingresultsHowever,successofthisinitiativeinitiallyshowsupinnon-GAAPoperatingresultsVisibilityofthecashflowimpactofthisiscomplicatedbySECfocusonnon-GAAPreportingTherefore,asthesalesforcerecovers,weexpecttobeginmodestlyincreasingdistributionsHowever,thebulkoftheincreaseinourDCFwillinitiallybeutilizedtoincreaseourcoverageratioWeexpecttheoperatingrecoverytobecompletebyYE2017,withGAAPoperatingcashflowdemonstratingthisin2018.38

39Q&A

StoneMorPartnersL.P.3600HorizonBlvd.,Suite100Trevose,PA1905340Contact:JohnMcNamara,Director–InvestorRelationsPhone:(215)826-2945E-mail:[email protected]


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