Suburban Propane(US:SPH)2021-08-05 15:02Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2021 was $23.3 million, which is $8.9 million lower than the previous year but $3.2 million or 16% higher than Q3 2019 [11][22] - The net loss for Q3 was $20.9 million or $0.33 per common unit, compared to a net loss of $15.5 million or $0.25 per common unit in the prior year [21] - Total gross margins for Q3 were $143.9 million, a decrease of $2.5 million or 1.7% compared to the prior year [28] Business Line Data and Key Metrics Changes - Retail propane gallons sold in Q3 were 76.7 million gallons, a 1.7% increase from the prior year, driven by increased commercial and industrial demand [23] - Residential volumes decreased by 14% compared to the prior year, while commercial and industrial volumes increased by 14% [24] Market Data and Key Metrics Changes - Average wholesale propane prices for Q3 were $0.87 per gallon, which is 112% higher than the prior year but 4% lower than Q2 of fiscal 2021 [27] - Overall average temperatures during Q3 were 9% warmer than normal and the prior year, impacting demand patterns [25] Company Strategy and Development Direction - The company is focused on reducing debt, strengthening the balance sheet, and building out its renewable energy platform [12][38] - Investments in renewable energy technologies, such as renewable dimethyl ether, are seen as a game changer for the propane industry [17][41] - The company aims to leverage its logistics expertise and vast network to support the energy transition [42][43] Management's Comments on Operating Environment and Future Outlook - Management noted that demand in commercial and industrial sectors is normalizing back to pre-pandemic levels [8] - The company remains committed to delivering sustainable profitable growth and is well-positioned for the ongoing energy transition [39][38] Other Important Information - The company reduced debt by approximately $30 million in Q3, totaling $68 million year-to-date [13] - A $0.10 per common unit increase in the annualized distribution rate was announced, effective with the quarterly distribution [18] - The company executed a refinancing of $775 million of senior notes, lowering annual interest requirements by about $7 million [14][33] Q&A Session Summary - No questions were raised during the Q&A session, and the management team concluded the call with final remarks [46]