Suburban Propane Partners (SPH) Tops Q2 EPS by 12c, Revenues Miss

Suburban Propane Partners (NYSE: SPH) reported Q2 EPS of $1.96, $0.12 better than the analyst estimate of $1.84. Revenue for the quarter came in at $504.38 million versus the consensus estimate of $549.19 million.

In announcing these results, President and Chief Executive Officer Michael A. Stivala said, "We are very pleased to report another solid quarter -- with an improvement in Adjusted EBITDA of nearly $1.0 million compared to the prior year -- despite a slow start to weather-driven customer demand. Warmer than normal average temperatures at the end of the fiscal 2019 first quarter carried into the month of January, as average temperatures for the month were 10% warmer than both normal and January of the prior year. However, as cooler temperatures arrived in February and March of 2019 in the majority of our service territories, customer demand responded. Our flexible business model allows us to effectively adapt to such demand variability and our operating personnel did an outstanding job managing margins and expenses, while ensuring the highest quality service to the communities we serve."

Mr. Stivala continued, "During the quarter, we also continued to execute on our customer base growth and retention initiatives, which included investments in new market expansions and the acquisition of a well-run propane business operating in strategic markets in our West Coast territory. We funded these initiatives, along with the repayment of $39 million in borrowings under our revolver, from operating cash flows. As a result, our leverage profile continues to improve and trend closer to our target range of less than 4.0x, our distribution coverage remains above 1.3x and we are very well positioned to foster our long-term strategic growth initiatives."

For earnings history and earnings-related data on Suburban Propane Partners (SPH) click here.

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