Business Context and Reporting Period
Company: Suburban Propane Partners, L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: February 3, 2011
Reporting Period: Fiscal 2011 First Quarter
This filing serves to announce the issuance of a press release detailing the company's financial results for the first quarter of fiscal 2011. 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. Instead, it defines the non-GAAP measures used in the accompanying press release (Exhibit 99.1) to assess performance:
- 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.
- Gross Margins: Defined as revenues less cost of products sold (excluding depreciation and amortization).
These metrics are utilized to evaluate liquidity, debt service obligations, quarterly distribution capabilities, and executive incentive compensation.
Material Changes
The filing text does not contain specific data regarding material changes in financial position or results of operations compared to the prior comparable period. It references the attached press release for the detailed year-over-year assessment.
Guidance, Outlook, and Management Commentary
Management Commentary:
- Management emphasizes that profitability in their business segments is largely dependent on the difference between retail sales prices and product costs.
- Non-GAAP measures are provided to assist investors in understanding the impact of commodity prices on profitability.
- Adjusted EBITDA is a required component for calculating leverage and interest coverage ratios under the company's revolving credit agreement.
Guidance and Risks:
- The filing does not contain specific forward-looking guidance, risk factors, or contingencies beyond the general note that profitability is sensitive to commodity price fluctuations.
Important Facts for Investor Verification
- Source of Data: Specific financial figures (revenue, net income, cash flow) are not in this 8-K text; investors must review the attached Press Release (Exhibit 99.1) for actual numbers.
- Non-GAAP Reconciliation: Verify the reconciliation of Adjusted EBITDA to net cash used in operating activities as presented in the press release.
- Derivative Impact: Confirm the magnitude of unrealized gains or losses on derivative instruments excluded from Adjusted EBITDA.
- Credit Agreement Compliance: Ensure the company remains in compliance with leverage and interest coverage ratios based on Adjusted EBITDA.