Business Context and Reporting Period
Company: Suburban Propane Partners, L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: August 6, 2009
Reporting Period: Fiscal 2009 Third Quarter
This filing serves to announce the issuance of a press release detailing the company's financial results for the third quarter of fiscal 2009. The company operates in the retail propane, fuel oil, natural gas, and electricity sectors.
Key Financial Metrics
Revenue, Profit, Cash Flow, Margins, Debt, Liquidity: The filing text does not provide specific numerical values for revenue, net income, cash flow, margins, debt levels, or liquidity ratios. These figures are contained within the attached press release (Exhibit 99.1) referenced in the document but are not reproduced in the body of this 8-K.
Non-GAAP Measures Discussed: The company highlights the use of the following non-GAAP measures to assist investors in assessing liquidity and debt service capabilities:
- 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: Computed as revenues less cost of products sold (excluding depreciation and amortization).
Material Changes
The filing does not explicitly detail material changes in financial performance compared to the prior period. It states that the attached press release describes the Fiscal 2009 Third Quarter Financial Results, implying that year-over-year comparisons are available in that exhibit.
Guidance, Outlook, and Management Commentary
Management Commentary: Management explains that profitability in their business segments is largely dependent on the difference between retail sales prices and product costs. Consequently, they utilize gross margins to help investors understand the impact of commodity prices on profitability.
Usage of Non-GAAP Measures:
- Adjusted EBITDA is used to facilitate cash flow comparisons between periods.
- It is a component in calculating leverage and interest coverage ratios required by the company's revolving credit agreement.
- It serves as a performance target for certain executive and employee incentive compensation plans.
Guidance and Risks: The filing text does not contain specific forward-looking guidance, risk factors, or contingencies beyond the general reference to commodity price impacts on profitability.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific numerical data on revenue, net income, and Adjusted EBITDA for the Fiscal 2009 Third Quarter.
- Verify the reconciliation of Adjusted EBITDA to net cash provided by operating activities as mentioned in the press release.
- Assess the impact of commodity price fluctuations on gross margins as described in the management commentary.
- Confirm the company's compliance with leverage and interest coverage ratios under its revolving credit agreement using the Adjusted EBITDA figures.