Michael A. Stivala: Thanks, Davin, and good morning. I apologize for the confusion from the operator. You are listening to the Suburban Propane Partners, L.P. first quarter earnings conference call. So thanks for joining us today. The fiscal 2026 heating season is off to a great start with a surge of colder weather in our Northeast, Mid-Atlantic, and Midwest operating territories during November, and more importantly, December 2025, that drove heat-related demand which more than offset warmer average temper ...

Core Insights - Suburban Propane Partners, L.P. reported a significant increase in net income for the first quarter of fiscal 2026, reaching $45.8 million, or $0.69 per Common Unit, compared to $19.4 million, or $0.30 per Common Unit, in the same period of fiscal 2025 [2][3] - The company experienced a 10.8% increase in Adjusted EBITDA, amounting to $83.4 million, driven by higher volumes sold and effective management of selling prices and expenses [2][3][4] Financial Performance - Net income for Q1 fiscal 2026 was $45.8 million, a 136% increase from $19.4 million in Q1 fiscal 2025 [2][16] - Adjusted EBITDA improved by $8.1 million, or 10.8%, from the previous year [2][4] - Total gross margin increased by $13.4 million, or 5.9%, to $239.5 million, with a notable increase in propane unit margins of $0.08 per gallon, or 4.1% [4][16] Operational Highlights - Retail propane gallons sold reached 110.2 million, a 4.2% increase compared to the prior year, attributed to colder temperatures and recent acquisitions [3][4] - Average temperatures during the quarter were 6% warmer than normal but 6% cooler than the previous year, impacting heat-related demand [3][4] Strategic Developments - The company acquired two propane businesses in California for $24.0 million, enhancing its market presence [8] - A new anaerobic digester facility in Upstate New York is in the commissioning process, and construction of gas upgrade equipment in Columbus, Ohio is progressing [3][8] Debt Management - Suburban Propane refinanced $350.0 million of senior notes, extending debt maturities by nearly three years and improving financial flexibility [6][7] - The Consolidated Leverage Ratio improved to 4.57x from 4.99x year-over-year, indicating better debt management [8] Distribution Information - The Board of Supervisors declared a quarterly distribution of $0.325 per Common Unit, equating to an annualized rate of $1.30 per Common Unit, payable on February 10, 2026 [9]

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, renewable natural gas ("RNG"), fuel oil and related products and services, as well as a marketer of natural gas and electricity and producer of and investor in low carbon alternatives, servicing the e ...

Core Insights - Suburban Propane Partners, L.P. announced the results of its 2025 SuburbanCares community engagement efforts, emphasizing its commitment to philanthropy and community support across the United States [1][4]. Community Engagement Initiatives - In 2025, SuburbanCares engaged over 150 employee volunteers, contributing approximately 600 hours of service across 20 communities, including locations such as Tallahassee, FL, and Twin Falls, ID [2]. - The initiative included partnerships with the American Red Cross and local nonprofit organizations, which were selected by employees, such as Second Harvest of the Big Bend and the Boys and Girls Club of Lancaster [2][3]. Company Commitment and Values - The company’s Vice President highlighted that SuburbanCares reflects the organization’s dedication to service, compassion, and community, with employees playing a crucial role in making a positive impact [3]. - Suburban Propane aims to expand its SuburbanCares initiatives in the future, continuing to drive positive community impact [4]. Company Overview - Suburban Propane is a publicly traded master limited partnership, servicing approximately 1 million customers through about 750 locations across 42 states [5]. - The company focuses on propane, renewable propane, renewable natural gas, and low carbon fuel alternatives, showcasing a commitment to customer service and community engagement [6][7].

Core Viewpoint - Suburban Propane (SPH) has shown moderate performance over the past year, with a 4% gain and a 7% distribution payout, supported by a colder winter, but caution is advised in projecting future trends [1] Company Performance - SPH's stock has increased by 4% over the past year [1] - The company has provided a distribution yield of 7% [1] - A colder winter has positively impacted SPH's results this year [1] Analyst Perspective - The analyst has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories [1] - The analyst expresses a cautious stance on extrapolating current trends into the future [1]

Core Insights - Suburban Propane Partners, L.P. reported a net income of $106.6 million for fiscal year 2025, an increase from $74.2 million in fiscal 2024, translating to earnings of $1.64 per Common Unit compared to $1.15 per Common Unit in the previous year [2][3] - Adjusted EBITDA for fiscal 2025 rose by 11.2% to $278.0 million, up from $250.0 million in fiscal 2024, driven by strong propane demand and effective margin management [2][3] Fiscal Year 2025 Results - Retail propane gallons sold reached 400.5 million, marking a 5.9% increase year-over-year, primarily due to cold weather and increased demand following Hurricanes Helene and Milton [5] - Average propane prices increased by 5.8% compared to the prior year, contributing to total gross margins of $868.8 million, which rose by $63.8 million or 7.9% [5] - Operating and general administrative expenses totaled $590.5 million, an increase of 4.2% from the previous year, mainly due to higher payroll and technology transformation costs [6] Fourth Quarter Results - The net loss for the fourth quarter of fiscal 2025 was $35.1 million, an improvement from a loss of $44.6 million in the same quarter of fiscal 2024 [7] - Retail propane gallons sold in the fourth quarter were 60.8 million, a 1.8% increase compared to the prior year [7] - The Board declared a quarterly distribution of $0.325 per Common Unit, equating to an annualized rate of $1.30 per Common Unit [7] Strategic Initiatives - The company acquired a propane business in New Mexico and Arizona for approximately $53.0 million and further invested in California with two acquisitions totaling $24.0 million [4] - A multi-year technology modernization initiative was launched to enhance operational efficiency and customer service [4] - The company expanded its renewable natural gas operations and continued capital projects for anaerobic digestion facilities [4]

Core Points - Suburban Propane Partners, L.P. has scheduled its Fiscal 2025 Full Year and Fourth Quarter Results Conference Call for November 13, 2025, at 9:00 AM Eastern Time [1] - Analysts and investors can access the call via the internet or by telephone [2] - A replay of the conference call will be available from November 13, 2025, until November 20, 2025 [3] Company Overview - Suburban Propane is a publicly traded master limited partnership listed on the NYSE, headquartered in Whippany, New Jersey, and has been in the customer service business since 1928 [4] - The company distributes propane, renewable propane, renewable natural gas, fuel oil, and related products, servicing approximately 1 million customers across 42 states [4] - Suburban Propane operates approximately 700 locations and is involved in low carbon alternatives [4] Core Values - The company is supported by three core pillars: 1. Suburban Commitment, emphasizing reliability and excellence in customer service [5] 2. SuburbanCares, focusing on community engagement [5] 3. Go Green with Suburban Propane, promoting clean energy solutions [5]

Core Insights - Suburban Propane Partners, L.P. reported a net loss of $14.8 million for the third quarter of fiscal 2025, an improvement from a net loss of $17.2 million in the same quarter of fiscal 2024 [2][16] - Adjusted EBITDA for the third quarter of fiscal 2025 was $27.0 million, remaining flat compared to the prior year [2][16] - The company experienced a solid counter-seasonal quarter despite unseasonably warm temperatures and commodity price volatility [3] Financial Performance - Retail propane gallons sold in the third quarter of fiscal 2025 were 71.9 million gallons, consistent with the prior year [4][16] - Average propane prices increased by 4.7% compared to the prior year [4] - Total gross margin for the third quarter was $160.6 million, unchanged from the prior year [4] Operational Highlights - The company utilized excess cash flows and proceeds from the issuance of Common Units to fund growth capital projects and reduce debt by $69 million [3][6] - Average daily renewable natural gas (RNG) injection was slightly down compared to the prior year, with revenues negatively impacted by lower prices for environmental attributes [3] - The Consolidated Leverage Ratio improved to 4.33x for the twelve-month period ended June 28, 2025 [6] Distribution Information - The Board of Supervisors declared a quarterly distribution of $0.325 per Common Unit for the three months ended June 28, 2025, equating to an annualized rate of $1.30 per Common Unit [7]

Core Viewpoint - Suburban Propane Partners, L.P. is set to announce its Fiscal 2025 Third Quarter results on August 7, 2025, with a conference call for analysts and investors to discuss the results and business outlook [1]. Company Overview - Suburban Propane Partners, L.P. is a publicly traded master limited partnership listed on the NYSE, headquartered in Whippany, New Jersey, and has been in the customer service business since 1928 [3]. - The company distributes propane, renewable propane, renewable natural gas, fuel oil, and related products and services, serving approximately 1 million customers across 42 states through around 700 locations [3]. Core Pillars - The company is supported by three core pillars: 1. **Suburban Commitment** - Emphasizing a legacy of nearly 100 years and a commitment to high standards in customer service [4]. 2. **SuburbanCares** - Focusing on community engagement and giving back to local communities [4]. 3. **Go Green with Suburban Propane** - Promoting propane and renewable propane as clean energy alternatives and investing in innovative renewable energy solutions [4].

Core Insights - Suburban Propane (NYSE: SPH) has experienced a mixed performance over the past year, with a loss of approximately 2% in share value while providing a dividend yield of over 6% [1] Financial Performance - The company has struggled with excess debt and limited demand growth, impacting its overall financial health [1]