[SUBURBAN PROPANE LOGO OMITTED] NEWS RELEASE Contact: Robert M. Plante Vice President & Chief Financial Officer P.O. Box 206, Whippany, NJ 07981-0206 Phone: 973-503-9252 - -------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE - --------------------- SUBURBAN PROPANE PARTNERS, L.P. ANNOUNCES ADJUSTMENT TO FISCAL 2004 EARNINGS TO REFLECT A NON-CASH PENSION CHARGE WHIPPANY, NEW JERSEY, DECEMBER 1, 2004 -- Suburban Propane Partners, L.P. (NYSE:SPH), a marketer of propane gas, fuel oil and related products and services nationwide, today announced an adjustment to previously released earnings for its fourth quarter and fiscal year ended September 25, 2004 to reflect a non-cash pension charge. Previously reported cash flow from operating activities for the fourth quarter and full year ended September 25, 2004 remains unchanged. During the course of finalizing the Partnership's footnote disclosures to be included in the consolidated financial statements for the fiscal year ended September 25, 2004, our principal actuarial firm advised that they had made an error in the computation of pension expense for fiscal 2004. The adjustment to pension expense represents a non-cash charge required to accelerate the recognition of a portion of the cumulative unrecognized actuarial losses related to the Partnership's defined benefit pension plan as a result of a higher level of lump sum retirement benefit payments made during fiscal 2004 compared to prior years. The effect of the adjustment is to increase fiscal 2004 pension expense for a non-cash charge of $5.3 million, thus reducing previously reported net income for fiscal 2004 from $59.6 million, or $1.97 per Common Unit, to $54.3 million, or $1.79 per Common Unit, and increasing the fiscal 2004 fourth quarter net loss from $28.7 million, or $0.92 per Common Unit, to a net loss of $34.0 million, or $1.09 per Common Unit. The adjustment also decreases previously reported EBITDA for fiscal 2004 from $137.2 million to $131.9 million and increases the previously reported EBITDA loss of $7.6 million for the fourth quarter of fiscal 2004 to a loss of $13.0 million. Suburban Propane Partners, L.P. is a publicly traded Master Limited Partnership listed on the New York Stock Exchange. Headquartered in Whippany, New Jersey, Suburban has been in the customer service business since 1928. The Partnership serves the energy needs of approximately 1,000,000 residential, commercial, industrial and agricultural customers through more than 370 customer service centers in 30 states. (more) Suburban Propane Partners, L.P. and Subsidiaries Consolidated Statements of Operations For the Three and Twelve Months Ended September 25, 2004 and September 27, 2003 (in thousands, except per unit amounts) (unaudited) THREE MONTHS ENDED TWELVE MONTHS ENDED ----------------------------- ---------------------------- SEPTEMBER 25, SEPTEMBER 27, SEPTEMBER 25, SEPTEMBER 27, 2004 2003 2004 2003 ------------- ------------- ------------- ------------- Revenues Propane $ 143,694 $ 108,035 $ 856,109 $ 680,840 Fuel oil and refined fuels 62,063 -- 281,682 -- Natural gas and electricity 13,478 -- 68,452 -- HVAC 23,080 9,890 92,072 46,938 All other 2,349 1,927 8,939 7,297 ----------- ----------- ----------- ----------- 244,664 119,852 1,307,254 735,075 Costs and expenses Cost of products sold 156,413 59,746 779,029 358,582 Operating 92,022 56,308 356,359 232,462 General and administrative 13,872 8,957 53,888 36,661 Restructuring costs 560 -- 2,942 -- Pension settlement charge 5,337 -- 5,337 -- Impairment of goodwill -- -- 3,177 -- Depreciation and amortization 11,114 7,030 36,743 27,520 ----------- ----------- ----------- ----------- 279,318 132,041 1,237,475 655,225 (Loss) income before interest expense and provision for income taxes (34,654) (12,189) 69,779 79,850 Interest expense, net 9,804 7,417 40,832 33,629 ----------- ----------- ----------- ----------- (Loss) income before provision for income taxes (44,458) (19,606) 28,947 46,221 Provision for income taxes 120 99 3 202 ----------- ----------- ----------- ----------- (Loss) income from continuing operations (44,578) (19,705) 28,944 46,019 Discontinued operations: Gain on sale of customer service centers 11,508 -- 26,332 2,483 (Loss) income from discontinued customer service centers (940) (1,251) (972) 167 ----------- ----------- ----------- ----------- Net (loss) income $ (34,010) $ (20,956) $ 54,304 $ 48,669 =========== =========== =========== =========== General Partner's interest in net (loss) income $ (1,057) $ (562) $ 1,310 $ 1,193 ----------- ----------- ----------- ----------- Limited Partners' interest in net (loss) income $ (32,953) $ (20,394) $ 52,994 $ 47,476 =========== =========== =========== =========== (Loss) income from continuing operations per Common Unit - basic $ (1.43) $ (0.70) $ 0.96 $ 1.77 =========== =========== =========== =========== Net (loss) income per Common Unit - basic $ (1.09) $ (0.75) $ 1.79 $ 1.87 =========== =========== =========== =========== Weighted average number of Common Units outstanding - basic 30,257 27,256 29,599 25,359 ----------- ----------- ----------- ----------- (Loss) income from continuing operations per Common Unit - diluted $ (1.43) $ (0.70) $ 0.96 $ 1.76 =========== =========== =========== =========== Net (loss) income per Common Unit - diluted $ (1.09) $ (0.75) $ 1.78 $ 1.86 =========== =========== =========== =========== Weighted average number of Common Units outstanding - diluted 30,257 27,256 29,705 25,495 ----------- ----------- ----------- ----------- Supplemental Information: EBITDA (a) $ (12,972) $ (6,410) $ 131,882 $ 110,020 Retail gallons sold: Propane 85,976 78,961 537,330 491,451 Fuel oil and refined fuels 47,956 -- 220,469 -- (more) (a) EBITDA represents net income (loss) before deducting interest expense, income taxes, depreciation and amortization. Our management uses EBITDA as a measure of liquidity and we are including it because we believe that it provides our investors and industry analysts with additional information to evaluate our ability to meet our debt service obligations and to pay our quarterly distributions to holders of our Common Units. Moreover, our senior note agreements and our revolving credit agreement require us to use EBITDA as a component in calculating our leverage and interest coverage ratios. EBITDA is not a recognized term under generally accepted accounting principles ("GAAP") and should not be considered as an alternative to net income or net cash provided by operating activities determined in accordance with GAAP. Because EBITDA, as determined by us, excludes some, but not all, items that affect net income, it may not be comparable to EBITDA or similarly titled measures used by other companies. The following table sets forth (i) our calculation of EBITDA and (ii) a reconciliation of EBITDA, as so calculated, to our net cash provided by operating activities: THREE MONTHS ENDED TWELVE MONTHS ENDED ----------------------------- ----------------------------- SEPTEMBER 25, SEPTEMBER 27, SEPTEMBER 25, SEPTEMBER 27, 2004 2003 2004 2003 ------------- ------------- -------------- ------------- Net (loss) / income $ (34,010) $ (20,956) $ 54,304 $ 48,669 Add: Provision for income taxes 120 99 3 202 Interest expense, net 9,804 7,417 40,832 33,629 Depreciation and amortization 11,114 7,030 36,743 27,520 --------- --------- --------- --------- EBITDA (12,972) (6,410) 131,882 110,020 --------- --------- --------- --------- Add / (subtract): Provision for income taxes (120) (99) (3) (202) Interest expense, net (9,804) (7,417) (40,832) (33,629) Gain on disposal of property, plant and equipment, net (562) (150) (715) (636) Gain on sale of customer service centers (11,508) -- (26,332) (2,483) Changes in working capital and other assets and liabilities 26,795 2,453 29,065 (15,770) --------- --------- --------- --------- Net cash (used in) / provided by operating activities $ (8,171) $ (11,623) $ 93,065 $ 57,300 ========= ========= ========= ========= Net cash provided by / (used in) investing activities $ 7,547 $ (4,328) $(196,557) $ (4,859) ========= ========= ========= ========= Net cash (used in) / provided by financing activities $ (61,666) $ (59,162) $ 141,208 $ (77,631) ========= ========= ========= =========
Suburban Propane Partners (SPH)
Filed: 2 Dec 04, 12:00am