Suburban Propane Partners (SPH) Tops Q4 EPS by 10c, Revenues Miss

Suburban Propane Partners (NYSE: SPH) reported Q4 EPS of ($0.66), $0.10 better than the analyst estimate of ($0.76). Revenue for the quarter came in at $166.06 million versus the consensus estimate of $171.44 million.

In announcing these results, President and Chief Executive Officer Michael A. Stivala said, "In the face of one of the most challenging operating environments, resulting from near record warm temperatures in the heart of the heating season followed by the unprecedented health and economic crisis from COVID-19, fiscal 2020 was a very successful year for Suburban Propane. Despite the headwinds, we made significant strides in advancing our strategic growth and our Three Pillars corporate initiatives. Specifically, in furtherance of our Commitment to Excellence pillar, we took decisive action to adapt our business model and modify our operating protocols in order to help protect the health and safety of our employees, while ensuring seamless delivery of our essential services to the customers and communities we serve. Through our SuburbanCares pillar, we partnered with a number of major regional food service brands to provide support to frontline health care workers in multiple locations throughout our operating territory."

Mr. Stivala continued, "In our Go Green pillar, we made advancements in our efforts to advocate for the clean burning attributes of propane, while also making strategic investments in new technologies that can contribute to lowering greenhouse gas emissions. In line with our strategic growth initiatives, in September 2020 we acquired a 39% equity interest in Oberon Fuels, a development-stage producer of a low-carbon transportation fuel which, when blended with propane can significantly reduce its carbon intensity. To further support our efforts to invest in innovative solutions to pave the way to zero-carbon emissions, we also entered into a large supply agreement to acquire renewable propane, produced entirely from renewal sources, such as waste fats and oils, to help meet customer demand for renewable energy solutions."

Concluding his remarks, Mr. Stivala said, "We are extremely proud of our accomplishments in the face of unprecedented challenges. We remained focused on navigating the business through the crisis, ended fiscal year 2020 with the strongest second half performance in our history and invested excess cash flows in a balanced way to reduce debt and fund strategic growth. We continue to position the business for long-term sustainable growth."

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

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