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Investors | Suburban Propane Suburban Propane Partners , L.P. Announces Second Quarter Results WHIPPANY , N.J. , May 6 , 2021 / PRNewswire / -- Suburban Propane Partners , L.P. ( NYSE : SPH ) , today announced earnings for its second quarter ended March 27 , 2021 . Net income for the second quarter of fiscal 2021 was $ 127.2 million , or $ 2.03 per Common Unit , compared to net income of $ 77.4 million , or $ 1.24 per Common Unit , in the prior year second quarter . Adjusted EBITDA ( as defined and reconciled below ) increased $ 41.4 million , or 31.7 % , to $ 172.0 million for the second quarter of fiscal 2021 , compared to $ 130.6 million in the prior year second quarter . In announcing these results , President and Chief Executive Officer Michael A. Stivala said , " The fiscal 2021 second quarter presented some of the most sustained and widespread cold weather that our service territories have experienced since 2015. As a result , propane volumes increased more than 16 % compared to the prior year second quarter , as customer demand for heating purposes surged at a time when commercial and industrial volumes also benefitted from the easing of COVID - 19 related business restrictions . Our operating personnel were well prepared to meet the challenges of the spike in demand , while continuing to adhere to COVID - 19 related safety protocols , maintaining the highest level of safety standards and delivering outstanding service to our customers when they needed us most . I am truly proud of the more than 3,200 employees of Suburban Propane for their efforts in maintaining their focus and driving the performance for the quarter . " Mr. Stivala continued , " In addition to the increased demand , earnings for the quarter were favorably impacted by excellent margin management in a rising commodity price environment , positive trends in our customer base growth and retention efforts , and lower operating expenses despite the impact of higher demand . Adjusted EBITDA of $ 172 million for the second quarter was our highest second quarter performance since 2015 , and represented an improvement of more than $ 41 million compared to the prior year second quarter . We utilized excess cash flows to reduce total debt by nearly $ 70 million during the quarter , bringing our total leverage metric closer to our target level of mid 3x . With the steps taken , both operationally and financially , to improve earnings and cash flows , we continue to execute on our stated goals of bringing leverage down , strengthening our balance sheet and enhancing our financial flexibility to aggressively pursue our long - term strategic growth objectives . " Retail propane gallons sold in the second quarter of fiscal 2021 of 169.1 million gallons increased 16.5 % , compared to the prior year second quarter , primarily due to an increase in weather - related customer demand , improving economic conditions and organic customer base growth . Average temperatures across all of the Partnership's service territories for the second quarter of fiscal 2021 were comparable to the ten - year average and 9 % cooler than the prior year second quarter , yet 7 % warmer than normal ( as measured by the thirty - year average of heating degree days utilized by the National Oceanic and Atmospheric Administration ) . A sustained and widespread cooler weather pattern throughout most of the second quarter , particularly during the month of February where average temperatures were 3 % colder than normal and 16 % cooler than February 2020 , contributed to an increase in heat - related demand and volumes sold . Revenues in the second quarter of fiscal 2021 of $ 537.2 million increased $ 136.2 million , or 34.0 % , compared to the prior year second quarter , primarily due to higher volumes sold , coupled with higher retail selling prices associated with higher wholesale product costs . Average posted propane prices ( basis Mont Belvieu , Texas ) were 142.8 % higher than the prior year second quarter . Cost of products sold for the second quarter of fiscal 2021 of $ 231.6 million increased $ 81.5 million , or 54.3 % , compared to the prior year , primarily due to higher volumes sold and higher wholesale product costs . Cost of products sold included a $ 1.6 million unrealized non - cash gain attributable to the mark - to - market adjustment for derivative instruments used in risk management activities , compared to a $ 4.7 million unrealized non - cash loss in the prior year second quarter . These unrealized gains and losses were excluded from Adjusted EBITDA for both periods in the table below . Combined operating and general and administrative expenses of $ 131.2 million increased $ 7.1 million , or 5.8 % , compared to the prior year second quarter , primarily due to higher volume - related variable operating costs , higher variable compensation , and a non - cash pension settlement charge that was excluded from Adjusted EBITDA in the table below . During the second quarter of fiscal 2021 , the Partnership utilized cash flows from operating activities to repay $ 68.6 million of debt . As a result of the debt repayment and the increase in Adjusted EBITDA during the second quarter , the Consolidated Leverage Ratio for the trailing twelve - month period ending March 27 , 2021 improved to 3.95x . As previously announced on April 22 , 2021 , the Partnership's Board of Supervisors declared a quarterly distribution of $ 0.30 per Common Unit for the three months ended March 27 , 2021. On an annualized basis , this distribution rate equates to $ 1.20 per Common Unit . The distribution is payable on May 11 , 2021 to Common Unitholders of record as of May 4 , 2021 . About Suburban Propane Partners , L.P. Suburban Propane Partners , L.P. is a publicly - traded master limited partnership listed on the New York Stock Exchange . Headquartered in Whippany , New Jersey , Suburban has been in the customer service business since 1928. The Partnership serves the energy needs of approximately 1.0 million residential , commercial , industrial and agricultural customers through approximately 700 locations in 41 states . Forward - Looking Statements This press release contains certain forward - looking statements relating to future business expectations and financial condition and results of operations of the Partnership , based on management's current good faith expectations and beliefs concerning future developments . These forward- looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those discussed or implied in such forward - looking statements , including the following : • The impact of weather conditions on the demand for propane , fuel oil and other refined fuels , natural gas and electricity ; • The impact of the COVID - 19 pandemic and the corresponding government response , including the impact across the Partnership's businesses on demand and operations , as well as on the operations of the Partnership's suppliers , customers and other business partners , and the effectiveness of the Partnership's actions taken in response to these risks ; • Volatility in the unit cost of propane , fuel oil and other refined fuels , natural gas and electricity , the impact of the Partnership's hedging and risk management activities , and the adverse impact of price increases on volumes sold as a result of customer conservation ; • The ability of the Partnership to compete with other suppliers of propane , fuel oil and other energy sources ; • • The impact on the price and supply of propane , fuel oil and other refined fuels from the political , military or economic instability of the oil producing nations , global terrorism and other general economic conditions , including the economic instability resulting from natural disasters such as pandemics , including the COVID - 19 pandemic ; The ability of the Partnership to acquire sufficient volumes of , and the costs to the Partnership of acquiring , transporting and storing , propane , fuel oil and other refined fuels ; • The ability of the Partnership to acquire and maintain reliable transportation for its propane , fuel oil and other refined fuels ; • The ability of the Partnership to retain customers or acquire new customers ; • The impact of customer conservation , energy efficiency and technology advances on the demand for propane , fuel oil and other refined fuels , natural gas and electricity ; • The ability of management to continue to control expenses ; • The impact of changes in applicable statutes and government regulations , or their interpretations , including those relating to the environment and climate change , derivative instruments and other regulatory developments on the Partnership's business ; • The impact of changes in tax laws that could adversely affect the tax treatment of the Partnership for income tax purposes ;