Business Context and Reporting Period
Company: Suburban Propane Partners, L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: May 7, 2009
Reporting Period: Fiscal 2009 Second Quarter
This filing serves as a notification that the Company issued a press release on May 7, 2009, detailing its financial results for the second quarter of fiscal 2009. The press release is attached as Exhibit 99.1.
Key Financial Metrics
The 8-K filing itself does not contain specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it defines the non-GAAP measures referenced in the attached press release (Exhibit 99.1):
- EBITDA: Earnings before interest, income taxes, depreciation, and amortization.
- Adjusted EBITDA: EBITDA, net income, and net income per Common Unit excluding unrealized (non-cash) gains or losses from mark-to-market activity on derivative instruments (SFAS No. 133).
- Gross Margins: Defined as revenues less cost of products sold (excluding depreciation and amortization).
Note: Specific dollar amounts for these metrics are not present in the provided text and must be sourced from the attached Exhibit 99.1.
Material Changes and Comparisons
The filing text does not provide specific data regarding material changes versus the prior comparable period. It states that the non-GAAP measures are provided to assist the investment community in assessing liquidity on a year-over-year basis and to facilitate the comparison of cash flows between periods.
Management Commentary, Risks, and Unusual Items
Management Commentary:
- Management utilizes Adjusted EBITDA to evaluate the ability to meet debt service obligations and pay quarterly distributions.
- Adjusted EBITDA is used as a performance target for certain executive incentive compensation plans.
- The Company's revolving credit agreement requires the use of Adjusted EBITDA to calculate leverage and interest coverage ratios.
- Gross margins are highlighted to help investors understand the impact of commodity prices on profitability in the retail propane, fuel oil, natural gas, and electricity businesses.
Unusual Items:
- The filing explicitly references the exclusion of unrealized (non-cash) gains or losses attributable to mark-to-market activity on derivative instruments when calculating Adjusted EBITDA.
Risks and Contingencies:
- The filing notes that the information, including the attached exhibit, is not deemed "filed" for purposes of Section 18 of the Exchange Act and is not incorporated by reference into other filings unless expressly stated.
Investor Verification Checklist
- Review Exhibit 99.1: Verify the actual numerical values for revenue, Adjusted EBITDA, and net income per Common Unit in the attached press release.
- Derivative Impact: Confirm the specific amount of unrealized gains or losses excluded from Adjusted EBITDA to understand the variance from GAAP net income.
- Credit Agreement Compliance: Verify that the reported Adjusted EBITDA meets the leverage and interest coverage ratio requirements of the Company's revolving credit agreement.
- Commodity Pricing: Assess the reported gross margins to determine the extent of commodity price volatility impact on the quarter's profitability.