Q3 2024 Suburban Propane Partners LP Earnings Call Transcript
Key Points
- Suburban Propane Partners LP (SPH) managed to mitigate the impact of warmer weather on earnings by effectively managing selling prices and leveraging an efficient operating model.
- The company reported growth in its counter-seasonal customer base, which helped offset the decline in heat-related demand.
- Operational enhancements in renewable natural gas (RNG) operations led to increased feedstock intake and production levels, contributing positively to revenue opportunities.
- Suburban Propane Partners LP (SPH) utilized excess cash flow to acquire two small retail propane businesses in strategic markets, enhancing its market presence.
- The company maintained a healthy distribution coverage of 1.91 times for the trailing 12 months, indicating strong financial health and sustainability.
- The fiscal 2024 third quarter experienced significantly warmer weather, leading to an 8.6% decrease in overall volumes compared to the prior year.
- Adjusted EBITDA for the third quarter decreased by $6 million from the prior year, reflecting the impact of reduced heat-related demand.
- Retail propane gallons sold were 8.6% lower than the prior year, primarily due to warmer weather across most operating areas.
- Revenues from the Stanfield RNG facility were adversely impacted by lower prices for California LCFS credits and lower benchmark natural gas prices.
- 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.
Good morning, ladies and gentlemen, and welcome to the Suburban Propane Partners third-quarter earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. (Operator Instructions) This call is being recorded on Thursday, August 8, 2024.I would now like to turn the conference over to Davin D'Ambrosio, Vice President and Treasurer. Please go ahead.
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Great. Thank you, Chris. Good morning, and thank you for joining us for our fiscal 2024 third-quarter earnings conference call. I'm here with Mike Stivala, our President and Chief Executive Officer; Mike Kuglin, our Chief Financial Officer; and Steve Boyd, our Chief Operating Officer. This morning we will review our third quarter financial results along with our current outlook for the business. Once we've concluded our prepared remarks, we will open the session to questions.
Our conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act
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