Business Context and Reporting Period
Company: Suburban Propane Partners, L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: November 10, 2011
Subject: Announcement of Fiscal 2011 Fourth Quarter Financial Results.
This filing serves as a notification that the Company issued a press release detailing its fourth-quarter results. The specific financial data is contained within the attached press release (Exhibit 99.1) and is not explicitly detailed in the body of this 8-K form.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. It references the following metrics as being detailed in the attached press release:
- EBITDA: Earnings before interest, income taxes, depreciation, and amortization (Non-GAAP).
- Adjusted EBITDA: EBITDA excluding unrealized gains/losses on derivatives, loss on debt extinguishment, pension settlement charges, and severance charges.
- Net Income and Net Income per Common Unit: Reported alongside Adjusted EBITDA.
- Gross Margins: Defined as revenues less cost of products sold (Non-GAAP).
Material Changes and Non-GAAP Measures
The filing highlights the use of non-GAAP financial measures to assist investors in assessing liquidity and comparing cash flows year-over-year. Specifically:
- Adjusted EBITDA: Used to evaluate the ability to meet debt service obligations and pay quarterly distributions. It is also a performance target for executive incentive compensation and a component in calculating leverage and interest coverage ratios under the Company's revolving credit agreement.
- Gross Margins: Discussed to illustrate the impact of commodity prices on profitability in the retail propane, fuel oil, natural gas, and electricity businesses.
The filing states that a reconciliation of Adjusted EBITDA to net cash provided by operating activities is presented in the attached press release.
Guidance, Outlook, and Risks
The filing text does not contain specific guidance, outlook statements, or risk factors. It notes that the information provided, including the attached exhibit, is not deemed "filed" for purposes of Section 18 of the Exchange Act and will not be incorporated by reference into other filings unless expressly referenced.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated November 10, 2011) for specific numerical values regarding Q4 2011 revenue, net income, and Adjusted EBITDA.
- Verify the reconciliation of Adjusted EBITDA to net cash provided by operating activities in the press release.
- Confirm the impact of commodity price fluctuations on gross margins as detailed in the press release.
- Check the Company's leverage and interest coverage ratios to ensure compliance with the revolving credit agreement requirements mentioned.