Inergy, L.P. (NYSE:NRGY) (“Inergy”) today reported results of operations for the fiscal fourth quarter and year ended September 30, 2012.
Inergy reported Adjusted EBITDA of $321.5 million for the year ended September 30, 2012, a decrease of $50.7 million, or approximately 14%, from $372.2 million for the year ended September 30, 2011. Net income (loss) was $565.9 million for the year ended September 30, 2012, and $(10.6) million in fiscal 2011. Net income in the year ended September 30, 2012 was impacted by a gain of $589.5 million on the sale of Inergy’s retail propane operations to Suburban Propane Partners, L.P. (“SPH”) on August 1, 2012, as previously announced. A table reconciling Adjusted EBITDA to net income (loss) for the three and twelve months ended September 30, 2012, appears below.
Distributable cash flow was $207.9 million for the year ended September 30, 2012, compared to $250.4 million in fiscal 2011, a decrease of $42.5 million, or approximately 17%.
“Fiscal 2012 was a transformative year for Inergy,” said John Sherman, Chairman and CEO of Inergy. “We reorganized our capital structure, divested our propane operations, and positioned the partnership as a pure play midstream business with a strong and flexible balance sheet. The current fundamentals and outlook for midstream infrastructure development offer attractive opportunities to execute our growth strategy. We are focused on creating value and delivering growth in cash earnings on behalf of our unitholders.”
As previously announced, the Board of Directors of Inergy’s general partner declared Inergy’s quarterly cash distribution of $0.29 per limited partner unit ($1.16 annually) for the quarter ended September 30, 2012. The distribution was paid on November 14, 2012.
In connection with the sale of our retail propane operations as discussed above, on September 14, 2012, Inergy completed the distribution to unitholders of approximately 14.1 million SPH common units at a distribution ratio of approximately 0.108.