Suburban Propane Partners (SPH) Tops Q2 EPS by 29c, Revenues Beat

Suburban Propane Partners (NYSE: SPH) reported Q2 EPS of $2.02, $0.29 better than the analyst estimate of $1.73. Revenue for the quarter came in at $537.24 million versus the consensus estimate of $431.89 million.

In announcing these results, President and Chief Executive Officer Michael A. Stivala said, "The fiscal 2021 second quarter presented some of the most sustained and widespread cold weather that our service territories have experienced since 2015. As a result, propane volumes increased more than 16% compared to the prior year second quarter, as customer demand for heating purposes surged at a time when commercial and industrial volumes also benefitted from the easing of COVID-19 related business restrictions. Our operating personnel were well prepared to meet the challenges of the spike in demand, while continuing to adhere to COVID-19 related safety protocols, maintaining the highest level of safety standards and delivering outstanding service to our customers when they needed us most. I am truly proud of the more than 3,200 employees of Suburban Propane for their efforts in maintaining their focus and driving the performance for the quarter."

Mr. Stivala continued, "In addition to the increased demand, earnings for the quarter were favorably impacted by excellent margin management in a rising commodity price environment, positive trends in our customer base growth and retention efforts, and lower operating expenses despite the impact of higher demand. Adjusted EBITDA of $172 million for the second quarter was our highest second quarter performance since 2015, and represented an improvement of more than $41 million compared to the prior year second quarter. We utilized excess cash flows to reduce total debt by nearly $70 million during the quarter, bringing our total leverage metric closer to our target level of mid 3x. With the steps taken, both operationally and financially, to improve earnings and cash flows, we continue to execute on our stated goals of bringing leverage down, strengthening our balance sheet and enhancing our financial flexibility to aggressively pursue our long-term strategic growth objectives."

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

You May Also Be Interested In

• Alphabet stock surges 11% to record high on Q1 earnings beat, first-ever dividend
• Edwards Lifesciences (EW) Tops Q1 EPS by 2c; offers guidance
• Intel slides in afterhours trading as Q1 revenue misses, Q2 outlook falls short