Suburban Propane Partners, L.P. (SPH)
F3Q10 (Qtr End 06/26/10) Earnings Call Transcript
August 2, 2010 9:00 am ET
Davin D’Ambrosio – VP and Treasurer
Mike Dunn – President and CEO
Mike Stivala – CFO
Michael Cerasoli – Goldman Sachs
Gabe Moreen – Bank of America/Merrill Lynch
Darren Horowitz – Raymond James & Associates
Ron Londe – Wells Fargo Securities
John Tysseland – Citigroup
Previous Statements by SPH
» Suburban Propane Partners LP F2Q10 (Qtr End 03/27/10) Earnings Call Transcript
» Suburban Propane Partners, L.P. F1Q10 (Qtr End 12/26/09) Earnings Call Transcript
» Suburban Propane Partners, L.P. F4Q09 (Qtr End 09/26/09) Earnings Call Transcript
Ladies and gentlemen, thank you very much for standing by. Welcome to the Suburban Propane conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session; instructions will be given at that time. (Operator Instructions)
And as a reminder, this conference is being recorded. This conference also contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended relating to the partnerships, future business expectations and predictions and financial conditions and results of operations.
These forward-looking statements involve certain risks and uncertainties. The Partnership has listed some of the important factors that could cause actual results to differ materially from those discussed in such forward-looking statements, which I refer to as cautionary statements and its earnings press release which can be viewed on the company’s website on subsequent, written and oral forward-looking statements attributable to the partnership or person acting on this behalf are especially qualified in their entirety by such cautionary statements.
I’ll now like to turn the conference over to Davin D’Ambrosio. Please go ahead.
Thank you Linda and good morning. Welcome to Suburban’s fiscal 2010 third quarter results conference call. I’m Davin D’Ambrosio, Vice President and Treasurer at Suburban. Joining me this morning is Mike Dunn, President and Chief Executive Officer, Mike Stivala, our Chief Financial Officer.
Purpose of today’s call is to review our third quarter financial results along with our current outlook for the business. As usual, once we’ve concluded our prepared remarks, we will open the session to questions. However, before getting started, I would like to take a moment to reemphasize what the operator has just explained about forward-looking statements. Additional information about factors that could cause actual results to differ materially from those discussed in forward-looking statements is contained in the Partnership’s SEC filings.
Including its Form 10-K for the fiscal year ended September 26, 2009 and its Form 10-K, excuse me, 10-Q for the period June 26, 2010 which will be filed by the end of business today.
Copies of these filings maybe obtained by contacting the Partnership or the SEC. Certain non-GAAP measures will be discussed on this call. We have provided a description of those measures as well as a discussion of why we believe this information to be useful in our Form 8-K furnished to the SEC this morning. The Form 8-K can be accessed or linked on our website at suburbanpropane.com.
At this point, I will turn the call over to Mike Dunn for some opening remarks. Mike?
Thanks Davin and thanks everyone for joining us this morning. Let me begin by saying we’re pleased with the efforts of our employees to deliver these operating results in the midst of what continues to be a very challenging operating environment. The ongoing effects of the weak economy on our commercial and industrial customer base as well as on the buying habits of our residential customers, has certainly influenced our operating results.
In addition, while weather in the third quarter does not typically impact volumes as it can during the winter months, volumes especially in the Northeast were negatively impacted by unusually warmer than normal temperatures that began in March and carried into the third quarter. Mike will provide little more detail on that later on.
In the meantime, we continue to discuss a focus on our growth initiatives both internally by delivering quality customer services and externally through the acquisition of small to mid size propane operators in markets where we have presence. Thus far this fiscal year, we had closed on three acquisitions and are actively pursuing several others.
In a moment, I will comment on our outlook for the remainder of the fiscal year, however at this point, I’d like to turn the call over to Mike Stivala, to discuss our third quarter results in more detail. Mike?
Thank you Mike, and good morning everyone. As we discuss our third quarter results to be consistent with previous reporting, I am excluding the impact of a $281,000 unrealized non-cash gain applicable to FAS 133 accounting compared to an unrealized non-cash loss of 6.1 million in the prior year third quarter.
Adjusted EBITDA for our fiscal 2010 third quarter totaled $9.1 million, a decrease of 8.6 million compared to $17.7 million in the third quarter of fiscal 2009. Our seasonal net loss totaled $6.9 million or $0.19 per common unit for the third quarter of fiscal 2010 compared to a net loss of $1.3 million or $0.04 per common unit in the prior year third quarter. The net loss for the third quarter of fiscal 2010 included a non-cash charge of $1.8 million to accelerate depreciation expense on assets that were retired.
Retail propane gallon, sold in the third quarter of fiscal 2010, decreased 5.2 million gallons or 8.5% to 56 million gallons from 61.2 million gallons in the prior year third quarter. Sales of fuel oil and other refined fuels decreased 3.1 million gallons or 32% to 6.6 million gallons compared to 9.7 million gallons in the prior year.