Suburban Propane(US:SPH)2021-05-06 22:10Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $172 million, which is an increase of more than $41 million or 32% compared to the prior year, marking the strongest second quarter performance since 2015 [4][6] - Net income for the second quarter was $126.3 million, improving by $44.1 million or 53.7% compared to the prior year [7] - Total gross margins increased to $304 million, up $48.4 million or 18.9% year-over-year, primarily due to higher propane volumes sold and improved unit margins [9] Business Line Data and Key Metrics Changes - Retail propane gallons sold increased by 16.5% to 169.1 million gallons, driven by demand across all customer segments, particularly in the residential segment [8] - The company experienced organic customer base growth, contributing to increased propane volumes [5] Market Data and Key Metrics Changes - Average wholesale propane prices for the second quarter were $0.90 per gallon, which is 123% higher than the prior second quarter and 58% higher than the first quarter of fiscal 2021 [9] - The company noted that wholesale propane prices have started to recede in the early part of the third fiscal quarter, currently in the low $0.80 per gallon range [9] Company Strategy and Development Direction - The company is focused on customer base growth and retention initiatives, which have resulted in organic growth through the first half of fiscal 2021 [16] - The management emphasized a disciplined approach to acquisitions and debt reduction efforts to strengthen the balance sheet and enhance financial flexibility for strategic growth [16] Management Comments on Operating Environment and Future Outlook - Management highlighted the positive impact of colder weather on demand and the normalization of demand in commercial industrial segments as COVID-19 restrictions eased [4][5] - Looking ahead, the company expects a shift back to a more traditional mix of business between residential and commercial industrial activities, with growth in commercial and industrial activities beyond pre-pandemic levels [17][18] Other Important Information - The company declared a quarterly distribution of $0.30 per common unit, equating to an annualized rate of $1.20 per common unit, to be paid on May 11th [15] - The company repaid $68.6 million of borrowings under the revolver, bringing total debt outstanding as of March 2021 to $89 million lower than the previous year [13] Q&A Session Summary - The call concluded without specific questions being documented, indicating a focus on the prepared remarks and management's insights rather than a detailed Q&A session [20][21]