In This Article:
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Adjusted EBITDA: $27 million, a decrease of $6 million from the prior year third quarter.
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Net Loss: $8 million, or $0.12 per common unit, compared to a net loss of $1.5 million, or $0.02 per common unit, in the prior year.
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Retail Propane Gallons Sold: 71.7 million gallons, 8.6% lower than the prior year.
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Gross Margin: $163.4 million, a decrease of $7.8 million or 4.5% compared to the prior year.
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Propane Unit Margins: Increased $0.07 per gallon, or 3.8% compared to the prior year.
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Operating and G&A Expenses: $135.1 million, decreased by $2.3 million or 1.7% compared to the prior year.
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Capital Spending: $14.7 million, $5.3 million higher than the prior year.
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Distribution Coverage: 1.91 times for the trailing 12 months ended June 2024.
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Leverage Ratio: 4.68 times for the trailing 12-month period ended June 2024.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Suburban Propane Partners LP (NYSE:SPH) managed to mitigate the impact of warmer weather on earnings by effectively managing selling prices and leveraging an efficient operating model.
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The company reported growth in its counter-seasonal customer base, which helped offset the decline in heat-related demand.
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Operational enhancements in renewable natural gas (RNG) operations led to increased feedstock intake and production levels, contributing positively to revenue opportunities.
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Suburban Propane Partners LP (NYSE:SPH) utilized excess cash flow to acquire two small retail propane businesses in strategic markets, enhancing its market presence.
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The company maintained a healthy distribution coverage of 1.91 times for the trailing 12 months, indicating strong financial health and sustainability.
Negative Points
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The fiscal 2024 third quarter experienced significantly warmer weather, leading to an 8.6% decrease in overall volumes compared to the prior year.
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Adjusted EBITDA for the third quarter decreased by $6 million from the prior year, reflecting the impact of reduced heat-related demand.
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Retail propane gallons sold were 8.6% lower than the prior year, primarily due to warmer weather across most operating areas.
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Revenues from the Stanfield RNG facility were adversely impacted by lower prices for California LCFS credits and lower benchmark natural gas prices.
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The company's net loss for the third quarter was $8 million, or $0.12 per common unit, compared to a net loss of $1.5 million, or $0.02 per common unit, in the prior year.