SEC Filing Summary: Suburban Propane Partners, L.P.
Business Context and Reporting Period
This Form 8-K, filed on February 7, 2008, reports the Fiscal 2008 First Quarter financial results for Suburban Propane Partners, L.P. The filing serves to disseminate a press release (Exhibit 99.1) detailing the company's operational performance for the quarter.
Key Financial Metrics
The filing text itself does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. It references the attached press release (Exhibit 99.1) as the source for these figures. The company highlights the use of non-GAAP measures, specifically:
- EBITDA: Earnings before interest, income taxes, depreciation, and amortization.
- Adjusted Net Income: 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.
Material Changes and Comparisons
The filing text does not contain specific data regarding material changes versus the prior comparable period. It states that the non-GAAP measures are provided to assist investors in assessing liquidity and cash flows on a year-over-year basis and to evaluate the ability to meet debt service obligations and pay quarterly distributions.
Guidance, Outlook, and Management Commentary
Management commentary focuses on the rationale for using non-GAAP financial measures:
- Liquidity Assessment: Adjusted measures help assess liquidity and cash flow comparisons between periods.
- Debt Covenants: The company's revolving credit agreement requires the use of EBITDA to calculate leverage and interest coverage ratios.
- Compensation: Certain executive incentive compensation plans utilize EBITDA as a performance target.
- Profitability Drivers: Gross margins are emphasized because profitability in retail propane, fuel oil, natural gas, and electricity businesses depends largely on the spread between retail sales prices and product costs.
The filing does not provide specific forward-looking guidance, risk factors, or details on contingencies beyond the general reference to commodity price impacts on profitability.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific numerical values of revenue, net income, and EBITDA for Fiscal 2008 Q1.
- Verify the reconciliation of EBITDA to cash flow used in operating activities as presented in the press release.
- Examine the impact of mark-to-market adjustments on derivative instruments on reported net income.
- Confirm the company's compliance with leverage and interest coverage ratios under its revolving credit agreement.