Business Context and Reporting Period
Company: Suburban Propane Partners, L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: August 7, 2008
Reporting Period: Fiscal 2008 Third Quarter
This filing serves to announce the issuance of a press release detailing the company's financial results for the third quarter of fiscal 2008. The company 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 (SFAS No. 133).
- Gross Margins: Defined as revenues less cost of products sold (excluding depreciation and amortization).
These metrics are utilized to evaluate liquidity, debt service obligations, distribution capabilities, and executive compensation performance.
Material Changes
The filing text does not contain specific data regarding material changes in financial position compared to the prior comparable period. It references the attached press release for the detailed results and year-over-year comparisons.
Guidance, Outlook, and Risks
Management Commentary: Management emphasizes that profitability in their business segments is largely dependent on the spread between retail sales prices and product costs. Consequently, they utilize gross margins to help investors understand the impact of commodity price fluctuations.
Non-GAAP Usage: The company notes that Adjusted EBITDA is a required component for calculating leverage and interest coverage ratios under their revolving credit agreement.
Risks and Contingencies: The filing does not explicitly list new risks or contingencies beyond the inherent commodity price sensitivity described in the management commentary.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific numerical values regarding revenue, net income, and Adjusted EBITDA for the third quarter.
- Verify the reconciliation of Adjusted EBITDA to net cash provided by operating activities as mentioned in the press release.
- Assess the impact of mark-to-market accounting on derivative instruments on reported net income versus Adjusted EBITDA.
- Confirm current commodity price spreads (retail sales price vs. product cost) to understand gross margin drivers.