Business Context and Reporting Period
Company: Suburban Propane Partners, L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: August 4, 2016
Reporting Period: Fiscal 2016 Third Quarter
This filing serves as a notification that the Company issued a press release on August 4, 2016, detailing its financial results for the third quarter of Fiscal 2016. The press release is attached as Exhibit 99.1.
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 following non-GAAP measures which are detailed in the attached press release (Exhibit 99.1):
- EBITDA: Net income before deducting interest expense, income taxes, depreciation, and amortization.
- Adjusted EBITDA: EBITDA excluding unrealized net gain or loss from mark-to-market activity for derivative instruments and certain other items.
- Gross Margins: Computed as revenues less cost of products sold (noted as a non-GAAP measure because cost of products sold excludes depreciation and amortization).
Note: Specific dollar amounts for these metrics are not present in the provided 8-K text and must be sourced from Exhibit 99.1.
Material Changes
The filing text does not explicitly state material changes versus the prior comparable period. It indicates that the attached press release describes the Fiscal 2016 Third Quarter Financial Results, which would contain comparative data.
Guidance, Outlook, and Management Commentary
Management Commentary: Management states that profitability in the retail propane, fuel oil, and natural gas and electricity businesses is largely dependent on the difference between retail sales price and product cost. Consequently, the Company discusses gross margins to help investors understand the impact of commodity prices on profitability.
Non-GAAP Rationale: The Company provides EBITDA, Adjusted EBITDA, and gross margins to offer supplemental measures of operating performance and to facilitate evaluation by the investment community and industry analysts.
Guidance and Risks: The provided text does not contain specific forward-looking guidance, risk factors, or contingencies beyond the general statement regarding commodity price dependency.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific numerical values regarding Revenue, Net Income, EBITDA, and Adjusted EBITDA for the Fiscal 2016 Third Quarter.
- Verify the reconciliation of Non-GAAP measures (EBITDA, Adjusted EBITDA, Gross Margins) to the most directly comparable GAAP financial measures as required by SEC regulations.
- Assess the impact of commodity price fluctuations on the reported gross margins as highlighted by management.
- Confirm if there were any unusual items or mark-to-market adjustments on derivative instruments that significantly impacted Adjusted EBITDA.