Fiscal Year 2009 Results
Net income for fiscal 2009 amounted to
In addition to the increased earnings, fiscal 2009 included several notable achievements for the Partnership, including: (i) a
In announcing these results, President and Chief Executive Officer
Revenues of
In the commodities markets, average posted prices for propane and fuel oil during fiscal 2009 were 51.7% and 46.1% lower, respectively, compared to fiscal 2008. Cost of products sold declined
Combined operating and general and administrative expenses of
Net interest expense increased
Fourth Quarter 2009 Results
Consistent with the seasonal nature of the propane and fuel oil businesses, the Partnership typically reports a net loss in its fiscal fourth quarter. For the fourth quarter of fiscal 2009, the Partnership's net loss was
Retail propane gallons sold in the fourth quarter of fiscal 2009 decreased 7.5 million gallons, or 13.3%, to 49.1 million gallons compared to 56.6 million gallons in the prior year quarter. Sales of fuel oil and other refined fuels decreased 2.0 million gallons, or 22.5%, to 6.9 million gallons during the fourth quarter of fiscal 2009 compared to 8.9 million gallons in the prior year quarter. With the highest concentration of non-residential business typically reported in the Partnership's fiscal fourth quarter, lower volumes in both segments were attributable primarily to declines in commercial and industrial volumes resulting from the recession and, to a lesser extent, continued customer conservation.
The fiscal 2008 fourth quarter EBITDA benefited from the partial recovery of realized losses from risk management activities reported in the third quarter of fiscal 2008, which resulted in increased margins of approximately
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;
-- The impact of current conditions in the global capital and credit
markets, and general economic pressures; 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
Consolidated Statements of Operations
For the Three and Twelve Months Ended
September 26, 2009 and September 27, 2008
(in thousands, except per unit amounts)
(unaudited)
Three Months Ended Twelve Months Ended
--------------------------- --------------------------
September 26, September 27, September 26, September 27,
2009 2008 2009 2008
------------ ------------ ------------- -------------
Revenues
Propane $113,620 $186,250 $864,012 $1,132,950
Fuel oil
and refined
fuels 17,176 40,469 159,596 288,078
Natural gas and
electricity 10,311 19,052 76,832 103,745
All other 9,135 10,710 42,714 49,390
------ ------ ------ ------
150,242 256,481 1,143,154 1,574,163
Costs and expenses
Cost of products
sold 70,433 167,990 540,385 1,039,436
Operating 68,561 72,576 304,767 308,071
General and
administrative 11,373 10,502 57,044 48,134
Depreciation and
amortization 8,476 7,069 30,343 28,394
------ ------ ------ ------
158,843 258,137 932,539 1,424,035
(Loss) income
before interest
expense, loss on
debt extinguishment
and provision for
(benefit from)
income taxes (8,601) (1,656) 210,615 150,128
Loss on debt
extinguishment 4,624 - 4,624 -
Interest expense, net 9,354 9,722 38,267 37,052
------ ------ ------ ------
(Loss) income before
provision for
(benefit from)
income taxes (22,579) (11,378) 167,724 113,076
Provision for
(benefit from)
income taxes 302 (53) 2,486 1,903
------ ------ ------ ------
(Loss) income from
continuing operations (22,881) (11,325) 165,238 111,173
------ ------ ------ ------
Discontinued operations:
Gain on disposal of
discontinued
operations - - - 43,707
------ ------ ------ ------
Net (loss) income $(22,881) $(11,325) $165,238 $154,880
======== ======== ======== ========
(Loss) income from
continuing
operations per
Common Unit - basic $(0.67) $(0.35) $4.99 $3.39
Discontinued
operations - - - 1.33
------ ------ ------ ------
Net (loss) income per
Common Unit - basic $(0.67) $(0.35) $4.99 $4.72
====== ====== ===== =====
Weighted average
number of
Common Units
outstanding - basic 33,982 32,788 33,134 32,783
------ ------ ------ ------
(Loss) income from
continuing
operations per
Common Unit
- diluted $(0.67) $(0.35) $4.96 $3.37
Discontinued
operations - - - 1.33
------ ------ ------ ------
Net (loss) income per
Common Unit
- diluted $(0.67) $(0.35) $4.96 $4.70
====== ====== ===== =====
Weighted average
number of Common
Units outstanding
- diluted 33,982 32,788 33,315 32,950
------ ------ ------ ------
Supplemental Information:
EBITDA (a) $(4,749) $5,413 $236,334 $222,229
Adjusted EBITDA (a) $(7,293) $3,325 $234,621 $220,465
Retail gallons sold:
Propane 49,123 56,613 343,894 386,222
Refined fuels 6,863 8,872 57,381 76,515
Capital expenditures:
Maintenance $5,820 $3,438 $12,203 $12,045
Growth $2,181 $1,080 $9,634 $9,774
(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 Twelve Months Ended
--------------------------- --------------------------
September 26, September 27, September 26, September 27,
2009 2008 2009 2008
------------ ------------ ------------- -------------
Net (loss) income $(22,881) $(11,325) $165,238 $154,880
Add:
Provision for
(benefit from)
income taxes -
current and
deferred 302 (53) 2,486 1,903
Interest expense,
net 9,354 9,722 38,267 37,052
Depreciation and
amortization 8,476 7,069 30,343 28,394
----- ----- ------ ------
EBITDA (4,749) 5,413 236,334 222,229
Unrealized
(non-cash)
gains on changes
in fair value
of derivatives (2,544) (2,088) (1,713) (1,764)
------ ------ ------ ------
Adjusted EBITDA (7,293) 3,325 234,621 220,465
Add / (subtract):
(Provision for)
benefit from income
taxes - current (297) 53 (1,101) (626)
Interest expense,
net (9,354) (9,722) (38,267) (37,052)
Loss on debt
extinguishment 4,624 - 4,624 -
Unrealized (non-cash)
gains on changes
in fair value of
derivatives 2,544 2,088 1,713 1,764
Compensation cost
recognized under
Restricted Unit Plan 511 653 2,396 2,156
Loss (gain) on
disposal of
property, plant
and equipment, net 120 (431) (650) (2,252)
Gain on disposal of
discontinued
operations - - - (43,707)
Changes in working
capital and
other assets and
liabilities 32,198 67,563 43,215 (20,231)
------ ------ ------ -------
Net cash provided
by operating
activities $23,053 $63,529 $246,551 $120,517
======= ======= ======== ========
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 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 .
SOURCE
Michael Stivala, Chief Financial Officer & Chief Accounting Officer, +1-973-503-9252