UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) January 21, 2000
SUBURBAN PROPANE PARTNERS, L.P.
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(Exact name of registrant as specified in its charter)
DELAWARE 1-14222 22-3410353
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File No.) Identification No.)
240 ROUTE 10 WEST, WHIPPANY, NJ 07981
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(Address of principal executive office) (Zip Code)
(973) 887-5300
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(Registrant's telephone number, including area code)
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Exhibit Index on Page 4
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ITEM 5. OTHER EVENTS.
On January 21, 2000, Suburban Propane Partners, L.P. issued a press release (the
"Press Release"), regarding earnings and an increase in its quarterly
distribution to $0.5250 per Common Unit for the quarter ended December 25, 1999.
A copy of the press release has been filed as Exhibit 99.1 to this current
report.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(C) EXHIBIT. A copy of the press release has been filed as Exhibit 99.1
to this Current Report.
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SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1934, THE REGISTRANT HAS
DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED THEREUNTO
DULY AUTHORIZED:
SUBURBAN PROPANE PARTNERS, L.P.
DATE: JANUARY 21, 2000 BY: /S/ ANTHONY M. SIMONOWICZ
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ANTHONY M. SIMONOWICZ
VICE PRESIDENT, CHIEF FINANCIAL OFFICER
BY: /S/ EDWARD J. GRABOWIECKI
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EDWARD J. GRABOWIECKI
VICE PRESIDENT, CHIEF ACCOUNTING OFFICER
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EXHIBITS
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EXHIBIT NO. EXHIBIT
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99.1 Press Release dated January 21, 2000
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EXHIBIT 99.1
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NEWS RELEASE
FOR IMMEDIATE RELEASE
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SUBURBAN PROPANE PARTNERS, L.P. INCREASES COMMON UNIT DISTRIBUTION AS
EARNINGS AND EBITDA INCREASE DESPITE UNUSUALLY WARM WEATHER AND
HIGH PRODUCT COSTS
WHIPPANY, NEW JERSEY, JANUARY 21, 2000 - Suburban Propane Partners, L.P.
(NYSE:SPH) today announced a 2.4% increase in its quarterly distribution to
$0.5250 per Common Unit, or $2.10 per Common Unit on an annual basis. The
increase follows improved net income and EBITDA performance for the quarter
ended December 25, 1999.
The quarterly distribution will be payable on February 8, 2000, to Common
Unitholders of record as of January 28, 2000. The distribution consists of the
Minimum Quarterly Distribution of $0.50 per Unit plus an additional $0.025 per
Unit. On an annual basis the distribution equates to $2.10 per Common Unit.
In announcing the increased quarterly distribution, President and Chief
Executive Officer Mark A. Alexander said, "Even with the current unfavorable
product cost and warm weather environment, we are so encouraged by our progress
that the Board has approved another distribution increase much sooner than
anticipated. We remain committed to delivering ever increasing value to our
Unitholders."
Net income for the quarter ended December 25, 1999 increased $11.6 million or
71.0% to $28.0 million, or $1.23 per Unit, compared to $16.4 million, or $0.56
per Unit, in the prior period. Earnings before interest, taxes, depreciation and
amortization (EBITDA) increased $13.7 million or 41.8% to $46.4 million,
compared to $32.7 million in the prior quarter.
Excluding the effect of a one-time gain of $10.3 million on the sale of assets,
net income for the quarter ended December 25, 1999 increased $1.3 million or
7.9% to $17.7 million, or $0.78 per Unit, compared to $16.4 million, or $0.56
per Unit, in the prior period. EBITDA increased $3.3 million or 10.2% to $36.1
million, excluding the one-time current period gain, compared to $32.7 million
in the prior quarter.
Revenues increased $39.2 million or 24.3% to $200.5 million for the first
quarter of fiscal 2000, compared to $161.2 million for the prior year period, as
a result of higher selling prices reflecting higher propane costs, the results
of the SCANA acquisition and an increase in the sales of appliances and related
products. Retail gallons sold increased 2.9 million gallons or 2.1% to 140.5
million gallons, compared to 137.6 million gallons in the prior year quarter,
principally resulting from the SCANA acquisition.
Temperatures nationwide in the first quarter continued to be unusually warm,
averaging 11% warmer than normal, which was comparable with the prior period.
Operating and general & administrative expenses increased $2.3 million or 3.9%
to $61.9 million, compared to $59.6 million in the prior year period. The
increase is primarily due to higher operating payroll and benefit costs
resulting from the SCANA acquisition and, to a lesser extent, higher fuel costs.
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Net interest expense increased $1.8 million to $9.4 million, reflecting
increased borrowings to fund the SCANA acquisition.
In announcing these results, Mr. Alexander said, "We are extremely pleased with
these favorable results, despite the recurrence of unusually warm weather
nationwide. We continue to make steady progress in our efforts to strengthen
operational performance, and the results are clearly evident. We are also
encouraged by the performance of our new business lines acquired from SCANA."
Suburban also announced today that a registration statement was filed with the
Securities and Exchange Commission on January 20, 2000. The registration
statement provides for the issuance from time to time of up to 10 million common
units to be used as the consideration for the acquisition of other businesses.
Each time that it is intended that common units be issued pursuant to the
registration statement, a prospectus supplement will be filed containing
specific information about the terms of that acquisition.
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 and is the
nation's third largest propane gas marketer. The Partnership serves over 750,000
residential, commercial, industrial and agricultural customers through
approximately 350 customer service centers in more than 40 states. Corporate
news, unit prices and additional information about Suburban are available 24
hours a day, 7 days a week on the company's web site. Via the Internet, go to
WWW.SUBURBANPROPANE.COM. To receive news releases via fax: Dial 800-758-5804 and
input extension 112074.
Company contact: Robert M. Plante
Vice President and Treasurer
(973) 503-9252
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SUBURBAN PROPANE PARTNERS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 25, 1999 AND DECEMBER 26, 1998
(IN THOUSANDS, EXCEPT PER UNIT AMOUNTS)
(UNAUDITED)
Three Months Ended
December 25, December 26,
1999 1998
Revenues
Propane .................................. $ 174,008 $ 138,790
Other .................................... 26,454 22,426
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200,462 161,216
Cost and Expenses
Cost of sales ............................ 102,441 68,871
Operating ................................ 55,289 52,274
Depreciation and amortization ............ 9,006 8,782
General and administrative ............... 6,643 7,326
Gain on sale of assets ................... (10,328) --
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163,051 137,253
Income before interest expense and
income taxes ............................ 37,411 23,963
Interest expense, net ...................... 9,399 7,586
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Income before provision for income taxes .. 28,012 16,377
Provision for income taxes ................. 21 7
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Net income ................................. $ 27,991 $ 16,370
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General Partner's interest in net income ... $ 560 $ 327
Limited Partners' interest in net income ... 27,431 16,043
Net income per Unit ........................ $ 1.23 (c) $ 0.56
Weighted average number of Units outstanding 22,236 28,726
Supplemental Information:
EBITDA(a) .................................. $ 46,417 (b) $ 32,745
Retail gallons sold ........................ 140,516 137,603
(a) EBITDA is defined as earnings before interest, income taxes, depreciation
and amortization. EBITDA should not be considered as an alternative to net
income (as an indicator of operating performance) or as an alternative to
cash flow (as a measure of liquidity or ability to service debt
obligations) and it is not in accordance with nor superior to generally
accepted accounting principles but provides additional information for
evaluating the Partnership's ability to distribute the Minimum Quarterly
Distribution or the increased quarterly distribution.
(b) EBITDA for the three months ended December 25, 1999 was $36,089, excluding
the gain on the sale of assets.
(c) Net income per Unit for the three months ended December 25, 1999 was $0.78,
excluding the gain on the sale of assets.
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