Business Context and Reporting Period
Company: Suburban Propane Partners, L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: August 8, 2013
Reporting Period: Fiscal 2013 Third Quarter
This filing announces the issuance of a press release detailing the company's financial results for the third quarter of fiscal 2013. The company operates in the retail propane, fuel oil, natural gas, and electricity sectors.
Key Financial Metrics
The filing references non-GAAP financial measures to assist investors in assessing liquidity and debt service capabilities. Specific values for revenue, net profit, cash flow, debt, and liquidity are not provided in the text of this 8-K; they are contained within the attached Exhibit 99.1 (Press Release).
- Adjusted EBITDA: $10.2 million for the third quarter of fiscal 2013.
- Retail Propane Volumes: 4.2 million gallons sold in the third quarter.
- Fuel Oil and Refined Fuels Volumes: 1.2 million gallons sold in the third quarter.
- Gross Margins: Referenced as a non-GAAP measure (Revenues less Cost of Products Sold), but specific dollar amounts are not listed in this text.
Material Changes Versus Prior Period
Comparisons are made against the prior year third quarter on a pro forma combined basis, assuming the acquisition of Inergy Propane occurred at the beginning of fiscal 2012.
- Adjusted EBITDA: Increased by 113.3% compared to the prior year third quarter.
- Retail Propane Volumes: Increased by 4.8% (4.2 million gallons) compared to the prior year third quarter.
- Fuel Oil and Refined Fuels Volumes: Decreased by 12.6% (1.2 million gallons) compared to the prior year third quarter.
Guidance, Outlook, and Management Commentary
Management Commentary:
- The company utilizes EBITDA and Adjusted EBITDA to facilitate year-over-year liquidity assessment and comparison of cash flows for debt service and distribution purposes.
- Adjusted EBITDA excludes unrealized (non-cash) gains or losses from mark-to-market activity on derivative instruments and certain other items.
- Gross margins are highlighted because profitability in the company's sectors is largely dependent on the spread between retail sales prices and product costs.
Guidance and Risks:
- The filing text does not provide specific forward-looking guidance, risk factors, or contingencies beyond the general note that profitability is dependent on commodity price spreads.
- The filing explicitly states that the information is not deemed "filed" for purposes of Section 18 of the Exchange Act unless specifically referenced.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for the full reconciliation of Adjusted EBITDA to net cash provided by operating activities.
- Verify the specific dollar amounts for Revenue, Net Income, and Total Debt, as these are not explicitly stated in the 8-K text.
- Confirm the impact of the Inergy Propane acquisition on the pro forma comparisons provided.
- Assess the company's ability to meet debt service obligations based on the Adjusted EBITDA figures provided in the full press release.