Suburban Propane(US:SPH)2025-11-13 12:54Financial Performance - Net income for fiscal 2025 was $106.6 million, or $1.64 per Common Unit, compared to $74.2 million, or $1.15 per Common Unit, in fiscal 2024, representing a 43.5% increase in net income year-over-year [3] - Adjusted EBITDA increased by $28.0 million, or 11.2%, to $278.0 million for fiscal 2025, compared to $250.0 million in the prior year [3] - The fourth quarter net loss was $35.1 million, or $0.53 per Common Unit, an improvement from a net loss of $44.6 million, or $0.69 per Common Unit, in fiscal 2024 [12] - Net loss for the three months ended September 27, 2025, was $(35,136,000), an improvement from $(44,589,000) in the same quarter of 2024, while net income for the twelve months was $106,570,000, compared to $74,174,000 in the previous year [21] - Adjusted EBITDA for the three months ended September 27, 2025, was $664,000, slightly down from $754,000 in the same period of 2024, while for the twelve months, it increased to $278,028,000 from $250,043,000 [23] Revenue and Sales - Revenues for the three months ended September 27, 2025, were $211,376,000, a slight increase from $208,641,000 for the same period in 2024, while total revenues for the twelve months increased to $1,432,518,000 from $1,327,172,000 [21] - Propane revenue for the three months ended September 27, 2025, was $183,065,000, compared to $179,067,000 in the prior year, with a twelve-month total of $1,265,494,000, up from $1,150,034,000 [21] - Retail propane gallons sold totaled 400.5 million gallons in fiscal 2025, a 5.9% increase compared to the prior year [5] - Retail gallons of propane sold in the three months ended September 27, 2025, were 60,817,000, compared to 59,733,000 in the same period of 2024, with total gallons sold for the twelve months at 400,496,000, up from 378,258,000 [21] Expenses and Costs - Combined operating and general administrative expenses rose to $590.5 million, an increase of $23.7 million, or 4.2%, primarily due to higher payroll and benefit-related expenses [7] - Interest expense for the three months ended September 27, 2025, was $17,205,000, down from $18,050,000 in the same period of 2024, with total interest expense for the twelve months at $76,265,000, compared to $74,590,000 [21] - Capital expenditures for maintenance in the three months ended September 27, 2025, were $6,081,000, up from $4,891,000 in the same period of 2024, while growth capital expenditures decreased to $8,047,000 from $14,165,000 [21] Market Activity and Initiatives - The Partnership acquired a propane business for approximately $53.0 million and two additional businesses for $24.0 million, enhancing its market presence [4] - The Partnership launched an ATM equity program to sell up to $100.0 million of newly issued Common Units, raising $23.5 million in net proceeds [11] - A multi-year technology modernization initiative was initiated to improve operational efficiency and customer service [5] Financial Ratios - The Consolidated Leverage Ratio improved to 4.29x for the fiscal year ended September 27, 2025, compared to 4.76x for the prior year [9] - Operating loss for the three months ended September 27, 2025, was $(16,755,000), an improvement from $(22,548,000) in the same quarter of 2024, while operating income for the twelve months was $206,311,000, compared to $171,250,000 in the previous year [21] Pricing and Margins - Average propane prices increased by 5.8% compared to the prior year, contributing to total gross margins of $868.8 million, which increased by $63.8 million, or 7.9% [6] - The company reported a gross margin as a supplemental measure of operating performance, calculated as revenues less cost of products sold, which is considered a non-GAAP financial measure [23]