WHIPPANY, N. J.,
Consistent with the seasonal nature of the propane and fuel oil businesses, the Partnership typically experiences a net loss in the third quarter. Net loss for the three months ended
The improvement in Adjusted EBITDA for the third quarter of fiscal 2009 compared to the prior year third quarter was driven primarily by higher operating margins, expense reductions gained through operating efficiencies and the absence of
Retail propane gallons sold in the third quarter of fiscal 2009 decreased 10.2 million gallons, or 14.3%, to 61.2 million gallons compared to 71.4 million gallons in the prior year third quarter. Sales of fuel oil and other refined fuels decreased 2.9 million gallons, or 23.3%, to 9.7 million gallons during the third quarter of fiscal 2009 compared to 12.6 million gallons in the prior year third quarter. Lower volumes in both segments were primarily attributed to declines in commercial and industrial volumes resulting from the recession and, to a lesser extent, continued customer conservation.
In announcing the third quarter results, Chief Executive Officer
The Partnership's President and CEO-elect,
Revenues of
Combined operating and general and administrative expenses of
Net interest expense increased
As previously announced, on
On
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 and natural gas, the impact of the Partnership's hedging and
risk management activities and the adverse impact of price increases
on volumes 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 and maintain reliable
transportation for its propane, fuel oil and other refined fuels;
-- The ability of the Partnership to retain customers;
-- The impact of customer conservation, energy efficiency and technology
advances on the demand for propane and fuel oil;
-- 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 global warming and other regulatory developments on
the Partnership's business;
-- 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; and
-- The impact of current conditions in the global capital and credit
markets, and general economic pressures.
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
Consolidated Statements of Operations
For the Three and Nine Months Ended June 27, 2009 and June
28, 2008
(in thousands, except per unit amounts)
(unaudited)
Three Months Ended Nine Months Ended
------------------ -----------------
June 27, June 28, June 27, June 28,
2009 2008 2009 2008
--------- -------- -------- --------
Revenues
Propane $139,571 $216,999 $750,392 $946,700
Fuel oil and refined fuels 23,091 55,262 142,420 247,609
Natural gas and electricity 12,147 22,507 66,521 84,693
Services 8,321 9,184 30,574 34,752
All other 1,242 1,524 3,005 3,928
-------- -------- -------- --------
184,372 305,476 992,912 1,317,682
Costs and expenses
Cost of products sold 87,463 212,974 469,952 871,446
Operating 72,295 76,455 236,206 235,495
General and administrative 13,108 13,268 45,671 37,632
Depreciation and amortization 7,713 7,159 21,867 21,325
-------- -------- -------- --------
180,579 309,856 773,696 1,165,898
Income (loss) before interest
expense and provision for
(benefit from) income taxes 3,793 (4,380) 219,216 151,784
Interest expense, net 10,068 9,524 28,913 27,330
-------- -------- -------- --------
(Loss) income before provision
for (benefit from) income taxes (6,275) (13,904) 190,303 124,454
Provision for (benefit from)
income taxes 1,160 (157) 2,184 1,956
-------- -------- -------- --------
(Loss) income from
continuing operations (7,435) (13,747) 188,119 122,498
-------- -------- -------- --------
Discontinued operations:
Gain on disposal of
discontinued operations - - - 43,707
-------- -------- -------- --------
Net (loss) income $(7,435) $(13,747) $188,119 $166,205
======== ======== ======== ========
(Loss) income from continuing
operations per Common
Unit - basic $(0.23) $(0.42) $5.73 $3.74
Discontinued operations - - - 1.34
-------- -------- -------- --------
Net (loss) income per
Common Unit - basic $(0.23) $(0.42) $5.73 $5.08
======== ======== ======== ========
Weighted average number of
Common Units
outstanding - basic 32,859 32,725 32,849 32,719
-------- -------- -------- --------
(Loss) income from
continuing operations
per Common Unit - diluted $(0.23) $(0.42) $5.70 $3.72
Discontinued operations - - - 1.33
-------- -------- -------- --------
Net (loss) income per
Common Unit - diluted $(0.23) $(0.42) $5.70 $5.05
======== ======== ======== ========
Weighted average number of
Common Units
outstanding - diluted 32,859 32,725 33,026 32,941
-------- -------- -------- --------
Supplemental Information:
EBITDA (a) $11,506 $2,779 $241,083 $216,816
Adjusted EBITDA (a) $17,654 $(1,916) $241,915 $217,139
Retail gallons sold:
Propane 61,212 71,420 294,771 329,609
Refined fuels 9,677 12,614 50,518 67,643
Capital expenditures:
Maintenance $2,725 $3,463 $6,383 $8,607
Growth $2,788 $2,754 $7,453 $8,694
(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. Our management uses
EBITDA and Adjusted EBITDA as measures of liquidity and we are
including them because we believe that they provide our investors
and industry analysts with additional information to evaluate our
ability to meet our debt service obligations and to pay our quarterly
distributions to holders of our Common Units.
In addition, certain of our incentive compensation plans covering
executives and other employees utilize Adjusted EBITDA as the
performance target. Moreover, our revolving credit agreement
requires us to use Adjusted EBITDA as a component in calculating our
leverage and interest coverage ratios. EBITDA and Adjusted EBITDA
are not recognized terms under generally accepted accounting
principles ("GAAP") and should not be considered as an alternative
to net income or net cash provided by operating activities determined
in accordance with GAAP. Because EBITDA and Adjusted EBITDA as
determined by us excludes some, but not all, items that affect net
income, they may not be comparable to EBITDA and Adjusted EBITDA or
similarly titled measures used by other companies.
The following table sets forth (i) our calculations of EBITDA and
Adjusted EBITDA and (ii) a reconciliation of Adjusted EBITDA, as so
calculated, to our net cash provided by operating activities:
Three Months Ended Nine Months Ended
------------------ -----------------
June 27, June 28, June 27, June 28,
2009 2008 2009 2008
-------- -------- -------- --------
Net (loss) income $(7,435) $(13,747) $188,119 $166,205
Add:
Provision for (benefit
from) income taxes -
current and deferred 1,160 (157) 2,184 1,956
Interest expense, net 10,068 9,524 28,913 27,330
Depreciation and
amortization 7,713 7,159 21,867 21,325
------- ------- ------- -------
EBITDA 11,506 2,779 241,083 216,816
Unrealized (non-cash)
losses (gains) on changes
in fair value of
derivatives 6,148 (4,695) 832 323
------- ------- ------- -------
Adjusted EBITDA 17,654 (1,916) 241,915 217,139
Add / (subtract):
Provision for income
taxes - current (240) (87) (804) (679)
Interest expense, net (10,068) (9,524) (28,913) (27,330)
Unrealized (non- cash)
(losses) gains on changes
in fair value of
derivatives (6,148) 4,695 (832) (323)
Compensation cost
recognized under
Restricted Unit Plan 644 817 1,885 1,503
Gain on disposal of
property, plant and
equipment, net (147) (109) (770) (1,821)
Gain on disposal of
discontinued operations - - - (43,707)
Changes in working capital
and other assets and
liabilities 62,851 54,725 11,017 (87,794)
------- ------- ------- -------
Net cash provided by
operating activities $64,546 $48,601 $223,498 $56,988
======= ======= ======== =======
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 Quarterly Report on Form 10-Q to
be filed by the Partnership with the United States Securities and
Exchange Commission ("SEC"). Such report, once filed, will be available
on the public EDGAR electronic filing system maintained by the SEC.
SOURCESuburban Propane Partners, L.P. -0-08/06/2009 /CONTACT: Michael Stivala, Chief Financial Officer & Chief Accounting Officer,Suburban Propane Partners, L.P. , +1-973-503-9252/ /Web Site: http://suburbanpropane.com / (SPH SPH) CO:Suburban Propane Partners, L.P. ST:New Jersey IN: FIN OIL SU: ERN PR -- NY57432 -- 743208/06/2009 07:31 EDT http://www.prnewswire.com