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Investors | Suburban Propane Suburban Propane Partners , L.P. Announces Third Quarter Results WHIPPANY , N.J. , Aug. 5 , 2021 / PRNewswire / -- Suburban Propane Partners , L.P. ( NYSE : SPH ) , today announced earnings for its third quarter ended June 26 , 2021 . Consistent with the seasonal nature of its businesses , the Partnership typically experiences a net loss in the third quarter of its fiscal year . Net loss for the third quarter of fiscal 2021 was $ 26.0 million , or $ 0.41 per Common Unit , compared to a net loss of $ 15.6 million , or $ 0.25 per Common Unit , in the prior year third quarter . Adjusted earnings before interest , taxes , depreciation and amortization ( Adjusted EBITDA , as defined and reconciled below ) for the third quarter of fiscal 2021 amounted to $ 23.3 million , compared to $ 32.2 million in the prior year third quarter . In announcing these results , President and Chief Executive Officer Michael A. Stivala said , " We are pleased to report another solid quarter of sales volumes and earnings , as the mix of volume between residential and non - residential customer demand continued to normalize toward pre - pandemic levels . Gross margins and Adjusted EBITDA in the prior year third quarter benefitted from unusually high demand from the residential sector , resulting from cooler spring temperatures at a time when stay - at - home measures were most prevalent . Despite the higher residential demand in the prior year , total volumes sold in the third quarter of fiscal 2021 exceeded the prior year by nearly 2 % , and were 4 % higher than the fiscal 2019 third quarter . These improvements are a testament to our continued efforts to deliver exceptional service to our customers , and the positive momentum in our customer base growth and retention initiatives . " Mr. Stivala continued , " In addition to our continued strong operating performance , we used excess cash flows to reduce total debt by approximately $ 30 million during the quarter , which brings our year - to - date debt reduction to $ 68 million , and we opportunistically refinanced $ 775 million of senior notes -- extending maturities and lowering our interest requirements . We also made additional investments in our minority - owned subsidiary , Oberon Fuels ( " Oberon " ) , as they achieved several milestones toward our collective efforts to commercialize clean - burning , renewable dimethyl ether ( " rDME " ) . Specifically , in June 2021 , Oberon began production of the first - ever rDME in the United States , and is the only current commercial producer of this molecule in the world . Additionally , Oberon , through a public - private partnership with Los Alamos National Laboratory , has secured funding from the U.S. Department of Energy to develop and scale - up steam reforming technology to produce renewable hydrogen from rDME . We remain focused on executing our strategic growth initiatives -- growing our propane market share , strengthening our balance sheet , investing in the build out of a renewable energy platform and returning capital to unitholders . " Retail propane gallons sold in the third quarter of fiscal 2021 of 76.7 million gallons increased 1.7 % compared to the prior year third quarter , primarily due to an increase in commercial and industrial demand resulting from the easing of COVID- related business restrictions and an improving economy , which more than offset normalizing residential demand in this counter - seasonal quarter . Residential volumes in the prior year third quarter benefitted from cooler average temperatures in April and May of 2020 , combined with stay - at - home measures instituted in the early stages of COVID - 19 . The mix of volumes between residential and non - residential customers returned to a more traditional , pre - pandemic level , during the third quarter of fiscal 2021. Average temperatures ( as measured by heating degree days ) across all of the Partnership's service territories for the fiscal 2021 third quarter were 9 % warmer than both normal and the prior year third quarter . Average posted propane prices ( basis Mont Belvieu , Texas ) for the third of fiscal 2021 were 111.5 % higher than the prior year third quarter . Total gross margins for the third quarter of fiscal 2021 of $ 155.0 million increased $ 7.8 million , or 5.3 % , compared to the prior year third quarter . Gross margins for the fiscal 2021 third quarter included an $ 11.1 million unrealized non - cash gain attributable to the mark - to- market adjustment for derivative instruments used in risk management activities , compared to a $ 0.9 million unrealized non - cash gain in the prior year third quarter . These unrealized gains were excluded from Adjusted EBITDA for both periods in the table below . The shift in volume mix between residential and non - residential customers , back to a more traditional level for the third quarter , also resulted in lower blended unit margins compared to the prior year third quarter . Combined operating and general and administrative expenses of $ 119.8 million increased $ 6.6 million , or 5.8 % , compared to the prior year third quarter , primarily due to higher volume - related variable operating costs , as well as an increase in self - insured medical costs and higher vehicle costs . During the third quarter of fiscal 2021 , the Partnership utilized cash flows from operating activities to repay $ 29.8 million of debt . As a result of the debt repayment during the third quarter , the Consolidated Leverage Ratio for the trailing twelve - month period ending June 26 , 2021 measured 3.96x . In addition , in May 2021 the Partnership opportunistically refinanced its previously outstanding $ 525 million 5.50 % Senior Notes due 2024 and $ 250 million 5.75 % Senior Notes due 2025 with a combination of borrowings under the Revolving Credit Facility and the issuance of new $ 650 million 5.00 % Senior Notes due 2031. This refinancing will result in annual net interest expense savings of approximately $ 7 million and extend average debt maturities by more than 3.5 years . As previously announced on July 22 , 2021 , the Partnership's Board of Supervisors declared an increase in the Partnership's quarterly distribution from $ 0.30 to $ 0.325 per Common Unit for the three months ended June 26 , 2021. On an annualized basis , this distribution rate equates to $ 1.30 per Common Unit , and represents an increase of $ 0.10 per Common Unit , or 8.3 % , compared to the annualized rate from the previous quarter . The distribution is payable on August 10 , 2021 to Common Unitholders of record as of August 3 , 2021 . About Suburban Propane Partners , L.P. Suburban Propane Partners , L.P. ( " Suburban Propane " ) is a publicly traded master limited partnership listed on the New York Stock Exchange . Headquartered in Whippany , New Jersey , Suburban Propane has been in the customer service business since 1928 and is a nationwide distributor of propane , renewable propane , fuel oil and related products and services , as well as a marketer of natural gas and electricity and an investor in low carbon fuel alternatives , servicing the energy needs of approximately 1 million residential , commercial , governmental , industrial and agricultural customers through approximately 700 locations across 41 states . Suburban Propane is supported by three core pillars : ( 1 ) Suburban Commitment - showcasing the Suburban Propane's 90+ year legacy , and ongoing commitment to the highest standards for dependability , flexibility , and reliability that underscores Suburban Propane's commitment to excellence in customer service ; ( 2 ) SuburbanCares - highlighting continued dedication to giving back to local communities across the Suburban Propane's national footprint and ( 3 ) Go Green with Suburban Propane - promoting the clean burning and versatile nature of propane and renewable propane as a bridge to a green energy future and developing the next generation of renewable energy . For additional information on Suburban Propane , please visit www.suburbanpropane.com . Forward - Looking Statements This press release contains certain forward - looking statements relating to future business expectations and financial condition and results