Suburban Propane(SPH) - 2026 Q1 - Quarterly Results

Financial Performance - Net income for Q1 fiscal 2026 was $45.8 million, or $0.69 per Common Unit, compared to $19.4 million, or $0.30 per Common Unit in Q1 fiscal 2025[3] - Adjusted EBITDA for Q1 fiscal 2026 improved by $8.1 million, or 10.8%, to $83.4 million compared to the prior year[3] - Total gross margin for Q1 fiscal 2026 was $239.5 million, an increase of $13.4 million, or 5.9%, from the prior year[6] - Net income for the three months ended December 27, 2025, was $45,780, compared to $19,420 for the same period in 2024, representing a year-over-year increase of approximately 135%[20] - EBITDA for the three months ended December 27, 2025, was $82,631, up from $56,694 in the prior year, indicating a growth of about 46%[20] - Adjusted EBITDA increased to $83,405 for the three months ended December 27, 2025, from $75,301 in the same period of 2024, reflecting a rise of approximately 11%[20] Sales and Operations - Retail propane gallons sold increased by 4.2% to 110.2 million gallons in Q1 fiscal 2026, driven by colder temperatures and recent acquisitions[4] - Average propane prices decreased by 14.0% compared to the prior year first quarter[5] - Combined operating and general administrative expenses rose by $5.0 million, or 3.4%, primarily due to higher payroll and variable operating costs[7] Acquisitions and Investments - The Partnership acquired two propane businesses in California for $24.0 million during the quarter[9] Debt and Financing - The refinancing of $350.0 million of senior notes extended weighted average debt maturities by nearly three years[8] - The Consolidated Leverage Ratio for the twelve-month period ended December 27, 2025, was 4.57x, down from 4.99x for the prior year[9] Distributions - A quarterly distribution of $0.325 per Common Unit was declared, equating to an annualized rate of $1.30 per Common Unit[10] Tax and Expenses - The provision for income taxes for the three months ended December 27, 2025, was $231, down from $563 in the prior year, showing a decrease of about 59%[20] - Interest expense, net, was $19,756 for the three months ended December 27, 2025, slightly up from $19,612 in the previous year, indicating a marginal increase of about 1%[20] - Depreciation and amortization expenses were $16,864 for the three months ended December 27, 2025, compared to $17,099 in the same period of 2024, reflecting a decrease of approximately 1%[20] - Loss on debt extinguishment was recorded at $1,183 for the three months ended December 27, 2025, with no comparable figure for the previous year[20] - Equity in losses and impairment charges for investments in unconsolidated affiliates amounted to $521 for the three months ended December 27, 2025, down from $22,241 in the prior year, indicating a significant reduction of approximately 98%[20] - Unrealized non-cash gains on changes in fair value of derivatives were $(930) for the three months ended December 27, 2025, compared to $(3,634) in the same period of 2024, showing an improvement of about 74%[20]