Business Context and Reporting Period
Company: Suburban Propane Partners, L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: May 5, 2016
Reporting Period: Fiscal 2016 Second Quarter
This filing serves as a current report to announce the issuance of a press release detailing the company's financial results for the second quarter of fiscal 2016. The company operates in the retail propane, fuel oil, natural gas, and electricity sectors.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. It references the following non-GAAP measures which are detailed in the attached press release (Exhibit 99.1):
- EBITDA: Net income before deducting interest expense, income taxes, depreciation, and amortization.
- Adjusted EBITDA: EBITDA excluding unrealized net gain or loss from mark-to-market activity for derivative instruments and certain other items.
- Gross Margins: Computed as revenues less cost of products sold (noted as a non-GAAP measure because cost of products sold excludes depreciation and amortization).
Material Changes
The filing text does not contain specific data regarding material changes in financial performance compared to the prior comparable period. It notes that profitability in the company's business segments is largely dependent on the difference between retail sales prices and product costs.
Guidance, Outlook, and Management Commentary
Management Commentary: Management states that the non-GAAP measures (EBITDA, Adjusted EBITDA, and Gross Margins) are provided to offer the investment community supplemental measures of operating performance. These metrics are intended to help investors and analysts evaluate operating results and understand the impact of commodity prices on profitability.
Guidance and Risks: The filing text does not contain specific forward-looking guidance, risk factors, or contingencies beyond the general statement regarding commodity price dependency.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific numerical values of revenue, net income, EBITDA, and Adjusted EBITDA for the Fiscal 2016 Second Quarter.
- Verify the reconciliation of non-GAAP measures (EBITDA and Adjusted EBITDA) to the most directly comparable GAAP financial measures.
- Examine the gross margin calculations to understand the specific impact of commodity price fluctuations on the quarter's profitability.
- Check for any updates on derivative instrument mark-to-market activities that were excluded from Adjusted EBITDA.