Business Context and Reporting Period
Company: Suburban Propane Partners, L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: November 28, 2012
Subject: Announcement of Fiscal 2012 Fourth Quarter Financial Results.
Key Financial Metrics
This filing serves as a notification of the release of financial results and does not contain specific numerical data for revenue, profit, cash flow, margins, debt, or liquidity. The document references the following non-GAAP measures defined in the attached press release (Exhibit 99.1):
- EBITDA: Earnings before interest, income taxes, depreciation, and amortization.
- Adjusted EBITDA: EBITDA excluding unrealized (non-cash) gains or losses from mark-to-market activity on derivative instruments and other items.
- Gross Margins: Computed as revenues less cost of products sold (excluding depreciation and amortization).
The filing states that the filing text does not provide a clear value for specific financial figures; these are contained within the referenced Exhibit 99.1.
Material Changes and Comparisons
The filing does not provide specific comparative data or material changes versus the prior period. It notes that the company provides non-GAAP measures to assist investors in assessing liquidity on a year-over-year basis and evaluating the ability to meet debt service obligations and pay quarterly distributions.
Management Commentary 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.
Non-GAAP Disclosure: The company explicitly states that EBITDA, Adjusted EBITDA, and the referenced gross margin are non-GAAP financial measures. Reconciliations of Adjusted EBITDA to net cash provided by operating activities are provided in the attached press release.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated November 28, 2012) for specific numerical values regarding Q4 Fiscal 2012 results.
- Verify the reconciliation of Adjusted EBITDA to net cash provided by operating activities as presented in the press release.
- Assess the impact of commodity price fluctuations on gross margins as described in the management commentary.
- Confirm the company's ability to meet debt service obligations and pay quarterly distributions based on the liquidity metrics in the press release.