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Suburban Propane Partners L.P. Reports Operating Results (10-Q)

February 08, 2013 | About:
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10qk

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Suburban Propane Partners L.P. (SPH) filed Quarterly Report for the period ended 2012-12-29.

Suburban Propane Partners Lp has a market cap of $2.37 billion; its shares were traded at around $41.47 with a P/E ratio of 47.8469 and P/S ratio of 1.4661. The dividend yield of Suburban Propane Partners Lp stocks is 8.29%.

Highlight of Business Operations:

Net income for the three months ended December 29, 2012 amounted to $59.8 million, or $1.05 per Common Unit, compared to $23.2 million, or $0.65 per Common Unit in the prior year first quarter. Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) for the first quarter of fiscal 2013 amounted to $116.4 million, compared to $39.1 million in the prior year first quarter, an increase of $77.3 million.

Total revenues increased $190.8 million, or 63.6%, to $490.7 million for the first quarter of fiscal 2013 compared to $299.9 million for the prior year first quarter, primarily due to higher propane and fuel oil and refined fuels volumes sold, offset to an extent by lower average selling prices. As discussed above, the increase in volumes sold was almost entirely due to the addition of the Inergy Propane business.

Revenues from the distribution of propane and related activities of $392.8 million for the first quarter of fiscal 2013 increased $152.4 million, or 63.4%, compared to $240.4 million in the prior year first quarter, primarily due to higher volumes sold, partially offset by lower average selling prices attributable to lower wholesale product costs. Retail propane gallons sold in the first quarter of fiscal 2013 increased 79.7 million gallons, or 107.2%, to 153.9 million gallons from 74.2 million gallons in the prior year first quarter, primarily as a result of the addition of Inergy Propane. Average propane selling prices for the first quarter of fiscal 2013 decreased 18.7% compared to the prior year first quarter due to lower product costs. Included within the propane segment are revenues from other propane activities of $21.3 million for the first quarter of fiscal 2013, which increased $1.5 million compared to the prior year first quarter.

General and administrative expenses of $17.8 million for first quarter of fiscal 2013 increased $5.5 million compared to $12.3 million in the prior year first quarter, primarily due to higher variable compensation associated with higher earnings, as well as higher professional services expenses associated with the integration of the Inergy Propane operations. In addition, general and administrative expenses for the first quarter of fiscal 2013 include a $2.2 million gain on sale of asset.

Operating Activities. Net cash provided by operating activities for the first quarter of fiscal 2013 was $61.5 million, compared to net cash used in operating activities of $25.3 million in the prior year first quarter. The increase in net cash provided by operating activities was primarily attributable to an increase in earnings in the first quarter of fiscal 2013 compared to the prior year first quarter. In addition, average posted prices for propane during the first quarter of fiscal 2013 decreased 38.5% compared to the first quarter of the prior year, which resulted in a substantial reduction in working capital requirements year over year. Also, cash flows from operating activities for the first quarter of fiscal 2013 benefited to an extent by the realization of working capital acquired in the Inergy Propane acquisition.

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