Page 1

Investors | Suburban Propane Suburban Propane Partners , L.P. Announces First Quarter Results WHIPPANY , N.J. , Feb. 4 , 2021 / PRNewswire / -- Suburban Propane Partners , L.P. ( NYSE : SPH ) , a nationwide distributor of propane , fuel oil and related products and services , as well as a marketer of natural gas and electricity , today announced earnings for its first quarter ended December 26 , 2020 . Net income for the first quarter of fiscal 2021 was $ 38.0 million , or $ 0.61 per Common Unit , compared to net income of $ 40.2 million , or $ 0.65 per Common Unit , in the prior year first quarter . Excluding the effects of non - cash items , including the equity in earnings of an unconsolidated affiliate and unrealized mark - to - market adjustments on derivative instruments in both years , adjusted earnings before interest , taxes , depreciation and amortization ( Adjusted EBITDA , as defined and reconciled below ) amounted to $ 80.0 million for the first quarter of fiscal 2021 , compared to $ 85.4 million in the prior year first quarter . In announcing these results , President and Chief Executive Officer Michael A. Stivala said , " Unseasonably warm weather dominated the start of the fiscal 2021 heating season , with November registering as one of the warmest on record , which negatively impacted customer demand during the quarter . With the ongoing effects of COVID - 19 , we have also continued to experience a shift in customer demand patterns that started in the second half of the prior fiscal year , with softness in certain commercial applications offset to an extent by increased usage in our residential and certain other customer segments that benefitted from stay - at - home initiatives and the demand for temporary , portable energy solutions . On the strategic front , we continued to advance our strategic growth initiatives with the acquisition of a well - run propane business in the North Carolina market , as well as further investments in Oberon Fuels to support our collective efforts to commercialize renewable dimethyl ether ( rDME ) . We also made great strides in advancing our Go Green corporate initiative with the recent official registration of our Go Green with Suburban Propane logo with the United States Patent and Trademark Office . With plenty of the 2020-2021 heating season still ahead , our business is very well positioned to meet increased heat - related demand , to adapt to changing demand patterns ; including in the event of continued unseasonably warm weather , and to continue to advance our strategic growth initiatives . " Retail propane gallons sold in the first quarter of fiscal 2021 of 111.7 million gallons decreased 7.8 % compared to the prior year first quarter . According to the National Oceanic and Atmospheric Administration , average temperatures ( as measured by heating degree days ) across all of the Partnership's service territories for the first quarter of fiscal 2021 were 13 % warmer than normal and 9 % warmer than the prior year first quarter . The decrease in heating degrees days compared to the prior year were concentrated in the months of October and November as average temperatures for the two - month period were 20 % warmer than the prior year and 18 % warmer than normal . The unseasonably warm temperatures were widespread and experienced across nearly all of our service territories , particularly in our east coast and mid - west markets . Revenues in the first quarter of fiscal 2021 of $ 305.2 million decreased $ 28.7 million , or 8.6 % , compared to the prior year first quarter , primarily due to lower propane volumes sold , offset somewhat by higher retail selling prices associated with higher wholesale product costs . Average posted propane prices ( basis Mont Belvieu , Texas ) for the first quarter of fiscal 2021 were 14.9 % higher than both the prior year first quarter and the prior sequential quarter . Cost of products sold for the first quarter of fiscal 2021 of $ 103.4 million decreased $ 15.2 million , or 12.8 % , compared to the prior year first quarter , primarily due to lower propane volumes sold , partially offset by higher propane wholesale product costs . Cost of products sold included a $ 4.9 million unrealized non - cash gain in the fiscal 2021 first quarter , compared to a $ 2.8 million unrealized non - cash gain in the prior year first quarter . These unrealized mark - to - market adjustments are excluded from Adjusted EBITDA for both periods in the table below . Combined operating and general and administrative expenses of $ 116.1 million for the first quarter of fiscal 2021 decreased $ 10.0 million , or 8.0 % , compared to the prior year first quarter , primarily due to lower variable volume- related operating costs , savings from various cost containment efforts , including lower payroll and benefit - related costs , and lower variable compensation expenses . The prior year first quarter included a charge of approximately $ 5.0 million for the settlement of certain product liability and other legal matters . Total debt outstanding as of December 2020 was $ 49.7 million lower than as of December 2019 , and the Consolidated Leverage Ratio for the trailing twelve - month period ending December 26 , 2020 was 4.86x . As previously announced on January 21 , 2021 , the Partnership's Board of Supervisors declared a quarterly distribution of $ 0.30 per Common Unit for the three months ended December 26 , 2020. On an annualized basis , this distribution rate equates to $ 1.20 per Common Unit . The distribution is payable on February 9 , 2021 to Common Unitholders of record as of February 2 , 2021 . About Suburban Propane Partners , L.P.