Business Context and Reporting Period
Company: Suburban Propane Partners, L.P.
Filing Type: Form 8-K (Current Report)
Date: November 12, 2009
Subject: Announcement of Fiscal 2009 Fourth Quarter Financial Results.
This filing serves as a notification that the Company issued a press release detailing its fourth-quarter results. The specific financial data is contained within the attached press release (Exhibit 99.1) and is not explicitly detailed in the body of this 8-K text.
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 defined in the accompanying press release:
- 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: Computed as revenues less cost of products sold (excluding depreciation and amortization).
These metrics are utilized to assess liquidity, compare cash flows for debt service and distribution capabilities, and calculate leverage and interest coverage ratios required by the Company's revolving credit agreement.
Material Changes
The filing text does not provide specific data regarding material changes versus the prior comparable period. It notes that the Company provides these non-GAAP measures to assist the investment community in assessing liquidity on a year-over-year basis.
Guidance, Outlook, and Risks
Management Commentary: Management emphasizes that profitability in retail propane, fuel oil, natural gas, and electricity businesses is largely dependent on the difference between retail sales prices and product costs. Consequently, gross margins are highlighted to illustrate the impact of commodity prices on profitability.
Usage of Metrics: Adjusted EBITDA is a performance target for certain executive incentive compensation plans and a component in credit agreement calculations.
Risks and Contingencies: The filing does not explicitly list new risks or contingencies in the text provided, though it implies sensitivity to commodity price fluctuations.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific numerical values regarding Q4 2009 revenue, net income, and Adjusted EBITDA.
- Verify the reconciliation of Adjusted EBITDA to net cash provided by operating activities as mentioned in the press release.
- Assess the impact of mark-to-market activity on derivative instruments on reported earnings.
- Confirm compliance with leverage and interest coverage ratios under the revolving credit agreement using the Adjusted EBITDA figures.