Suburban Propane Partners (SPH) Misses Q2 EPS by 40c, Revenues Beat

Suburban Propane Partners (NYSE: SPH) reported Q2 EPS of $1.23, $0.40 worse than the analyst estimate of $1.63. Revenue for the quarter came in at $401.06 million versus the consensus estimate of $378.82 million.

In announcing these results, President and Chief Executive Officer Michael A. Stivala said, "First and foremost, our hearts go out to those that have lost loved ones, or are suffering as a result of the unprecedented health crisis that has plagued our entire nation, and to the frontline health care workers and first responders that are working tirelessly to help save lives. At Suburban Propane, we have adapted our business practices to help keep our employees, customers and local communities safe and healthy. We pride ourselves on continuing to support our customers and local communities throughout this extraordinary crisis, and we are committed to continue meeting the essential needs of our fellow citizens and businesses in the future. In fact, we are proud that our employees have been called upon to support federal, state and local authorities by providing vital temporary heat and power generation for makeshift testing tents, hospital sites, shelters and food distribution centers throughout our operating territory."

Mr. Stivala continued, "As for our results for the second quarter of fiscal 2020, record warm temperatures during this year's heating season had an adverse effect on customer demand. Nonetheless, we are proud of the way our operating personnel managed through the challenging environment -- maintaining their focus on our high standards for safety and exceptional customer service, effectively managing costs, and executing on our customer base growth and retention initiatives. Despite the weather-driven earnings shortfall, the fundamentals of our business remain strong. Like so many other companies, we have been and will continue to evaluate the potential implications on customer demand, particularly in the commercial and industrial segments of our business, from the uncertainty surrounding the widespread slowdown of the economy due to COVID-19. In particular, we are assessing earnings sensitivities, manpower planning, cash requirements and access to liquidity under multiple demand scenarios as we progress through the remainder of fiscal 2020 and plan for a new heating season. This may also include re-evaluating the level of the quarterly distribution to strengthen our balance sheet, manage our cash requirements and ensure adequate liquidity to fund working capital and continue investing in our long-term growth initiatives."

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

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