Business Context and Reporting Period
Company: Suburban Propane Partners, L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: February 5, 2009
Reporting Period: Fiscal 2009 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 2009. The registrant 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: Computed 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 a press release (Exhibit 99.1) which contains the detailed year-over-year analysis.
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 assessing liquidity on a year-over-year basis and comparing cash flows.
- Adjusted EBITDA is a required component for calculating leverage and interest coverage ratios under the company's revolving credit agreement.
Risks and Contingencies:
- The filing notes the use of derivative instruments subject to mark-to-market accounting (SFAS No. 133), which can create volatility in reported earnings due to unrealized gains or losses.
Guidance: The filing text does not provide specific forward-looking guidance or outlook figures.
Important Facts for Investor Verification
- Verify the specific numerical results for Fiscal 2009 Q1 by reviewing the attached Press Release (Exhibit 99.1), as this 8-K summary does not list the figures.
- Review the reconciliation of Adjusted EBITDA to net cash provided by operating activities to understand the impact of non-cash derivative adjustments.
- Assess the impact of commodity price fluctuations on gross margins, as this is a primary driver of profitability for the company.
- Confirm the company's compliance with leverage and interest coverage ratios under its revolving credit agreement using the Adjusted EBITDA metric.