WHIPPANY, N.J.,
Fiscal Year 2019 Results
Net income for fiscal 2019 was
Net income and EBITDA (as defined and reconciled below) for fiscal 2018 included a loss of
In announcing these results, President and Chief Executive Officer
Concluding his remarks, Mr. Stivala said, "Our re-imagined brand elements emphasize our commitment to excellence for the safety and comfort of our customers, our devotion to safety and career development for our dedicated employees, our philanthropic efforts to give back to the communities we serve, and promotion of the inherent environmental benefits of using propane in multiple applications as a clean energy source for a sustainable future. Our business is very well positioned, both operationally and financially, to continue to build on our successes for the next phase of growth for
Retail propane gallons sold in fiscal 2019 of 426.7 million gallons decreased 3% compared to the prior year, primarily due to an erratic and inconsistent weather pattern throughout fiscal year 2019 that negatively impacted customer demand. While average temperatures (as measured by heating degree days) across all of the Partnership's service territories for fiscal 2019 were 6% warmer than normal and 1% cooler than the prior year, average temperatures during the peak demand months of December and January were 4% and 10% warmer than the same months in the prior year, respectively.
Revenues for fiscal 2019 of
Cost of products sold for fiscal 2019 of
Combined operating and general and administrative expenses of
During fiscal 2019, the Partnership reduced debt by
Fourth Quarter 2019 Results
Consistent with the seasonal nature of the propane business, the Partnership typically reports a net loss for its fiscal fourth quarter. Net loss for the fourth quarter of fiscal 2019 was
As previously announced on
About
Forward-Looking Statements
This press release contains certain forward-looking statements relating to future business expectations and financial condition and results of operations of the Partnership, based on management's current good faith expectations and beliefs concerning future developments. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed or implied in such forward-looking statements, including the following:
- The impact of weather conditions on the demand for propane, fuel oil and other refined fuels, natural gas and electricity;
- Volatility in the unit cost of propane, fuel oil and other refined fuels, natural gas and electricity, the impact of the Partnership's hedging and risk management activities, and the adverse impact of price increases on volumes sold as a result of customer conservation;
- The ability of the Partnership to compete with other suppliers of propane, fuel oil and other energy sources;
- The impact on the price and supply of propane, fuel oil and other refined fuels from the political, military or economic instability of the oil producing nations, global terrorism and other general economic conditions;
- The ability of the Partnership to acquire sufficient volumes of, and the costs to the Partnership of acquiring, transporting and storing, propane, fuel oil and other refined fuels;
- The ability of the Partnership to acquire and maintain reliable transportation for its propane, fuel oil and other refined fuels;
- The ability of the Partnership to retain customers or acquire new customers;
- The impact of customer conservation, energy efficiency and technology advances on the demand for propane, fuel oil and other refined fuels, natural gas and electricity;
- The ability of management to continue to control expenses;
- The impact of changes in applicable statutes and government regulations, or their interpretations, including those relating to the environment and climate change, derivative instruments and other regulatory developments on the Partnership's business;
- The impact of changes in tax laws that could adversely affect the tax treatment of the Partnership for income tax purposes;
- The impact of legal proceedings on the Partnership's business;
- The impact of operating hazards that could adversely affect the Partnership's operating results to the extent not covered by insurance;
- The Partnership's ability to make strategic acquisitions and successfully integrate them;
- The impact of current conditions in the global capital and credit markets, and general economic pressures;
- The operating, legal and regulatory risks the Partnership may face; and
- Other risks referenced from time to time in filings with the
Securities and Exchange Commission ("SEC ") and those factors listed or incorporated by reference into the Partnership's Annual Report under "Risk Factors."
Some of these risks and uncertainties are discussed in more detail in the Partnership's Annual Report on Form 10-K for its fiscal year ended
Suburban Propane Partners, L.P. and Subsidiaries |
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Consolidated Statements of Operations |
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For the Three and Twelve Months Ended September 28, 2019 and September 29, 2018 |
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(in thousands, except per unit amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
Three Months Ended |
Twelve Months Ended |
|||||||||||||||
September 28, 2019 |
September 29, 2018 |
September 28, 2019 |
September 29, 2018 |
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Revenues |
||||||||||||||||
Propane |
$ |
145,978 |
$ |
162,979 |
$ |
1,083,446 |
$ |
1,153,323 |
||||||||
Fuel oil and refined fuels |
8,656 |
9,106 |
92,084 |
91,520 |
||||||||||||
Natural gas and electricity |
6,679 |
10,366 |
45,206 |
54,308 |
||||||||||||
All other |
10,699 |
10,467 |
46,969 |
45,262 |
||||||||||||
172,012 |
192,918 |
1,267,705 |
1,344,413 |
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Costs and expenses |
||||||||||||||||
Cost of products sold |
59,285 |
85,407 |
521,988 |
592,630 |
||||||||||||
Operating |
97,590 |
90,875 |
402,957 |
397,489 |
||||||||||||
General and administrative |
16,096 |
16,561 |
71,034 |
66,246 |
||||||||||||
Depreciation and amortization |
30,027 |
30,629 |
120,872 |
125,222 |
||||||||||||
202,998 |
223,472 |
1,116,851 |
1,181,587 |
|||||||||||||
Loss on sale of business |
— |
— |
— |
4,823 |
||||||||||||
Operating (loss) income |
(30,986) |
(30,554) |
150,854 |
158,003 |
||||||||||||
Interest expense, net |
18,622 |
18,955 |
76,663 |
77,383 |
||||||||||||
Other, net |
1,175 |
1,174 |
4,702 |
4,692 |
||||||||||||
(Loss) income before provision for (benefit from) |
(50,783) |
(50,683) |
69,489 |
75,928 |
||||||||||||
Provision for (benefit from) income taxes |
279 |
143 |
857 |
(606) |
||||||||||||
Net (loss) income |
$ |
(51,062) |
$ |
(50,826) |
$ |
68,632 |
$ |
76,534 |
||||||||
Net (loss) income per Common Unit - basic |
$ |
(0.82) |
$ |
(0.83) |
$ |
1.11 |
$ |
1.24 |
||||||||
Weighted average number of Common Units outstanding - basic |
62,077 |
61,599 |
61,992 |
61,557 |
||||||||||||
Net (loss) income per Common Unit - diluted |
$ |
(0.82) |
$ |
(0.83) |
$ |
1.10 |
$ |
1.24 |
||||||||
Weighted average number of Common Units outstanding - diluted |
62,077 |
61,599 |
62,366 |
61,847 |
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Supplemental Information: |
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EBITDA (a) |
$ |
(2,134) |
$ |
(1,099) |
$ |
267,024 |
$ |
278,533 |
||||||||
Adjusted EBITDA (a) |
$ |
(1,378) |
$ |
(2,830) |
$ |
275,032 |
$ |
283,046 |
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Retail gallons sold: |
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Propane |
63,666 |
64,754 |
426,745 |
439,955 |
||||||||||||
Refined fuels |
3,110 |
3,140 |
29,817 |
31,045 |
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Capital expenditures: |
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Maintenance |
$ |
2,558 |
$ |
3,155 |
$ |
13,876 |
$ |
13,226 |
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Growth |
$ |
8,137 |
$ |
3,899 |
$ |
21,102 |
$ |
19,675 |
(a) |
EBITDA represents net income before deducting interest expense, income taxes, depreciation and amortization. Adjusted EBITDA represents EBITDA excluding the unrealized net gain or loss on mark-to-market activity for derivative instruments and other items, as applicable, as provided in the table below. Our management uses EBITDA and Adjusted EBITDA as supplemental measures of operating performance and we are including them because we believe that they provide our investors and industry analysts with additional information that we determined is useful to evaluate our operating results. |
EBITDA and Adjusted EBITDA are not recognized terms under accounting principles generally accepted in
The following table sets forth our calculations of EBITDA and Adjusted EBITDA:
Three Months Ended |
Twelve Months Ended |
|||||||||||||||
September 28, 2019 |
September 29, 2018 |
September 28, 2019 |
September 29, 2018 |
|||||||||||||
Net (loss) income |
$ |
(51,062) |
$ |
(50,826) |
$ |
68,632 |
$ |
76,534 |
||||||||
Add: |
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Provision for (benefit from) income taxes |
279 |
143 |
857 |
(606) |
||||||||||||
Interest expense, net |
18,622 |
18,955 |
76,663 |
77,383 |
||||||||||||
Depreciation and amortization |
30,027 |
30,629 |
120,872 |
125,222 |
||||||||||||
EBITDA |
(2,134) |
(1,099) |
267,024 |
278,533 |
||||||||||||
Unrealized (non-cash) losses (gains) on changes |
756 |
(1,731) |
8,008 |
(310) |
||||||||||||
Loss on sale of business |
— |
— |
— |
4,823 |
||||||||||||
Adjusted EBITDA |
$ |
(1,378) |
$ |
(2,830) |
$ |
275,032 |
$ |
283,046 |
The unaudited financial information included in this document is intended only as a summary provided for your convenience, and should be read in conjunction with the complete consolidated financial statements of the Partnership (including the Notes thereto, which set forth important information) contained in its Annual Report on Form 10-K to be filed by the Partnership with the
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SOURCE
Michael A. Kuglin, Chief Financial Officer & Chief Accounting Officer, P.O. Box 206, Whippany, NJ 07981-0206, Phone: 973-503-9252