Suburban Propane Partners, L.P. Announces First Quarter Earnings

       Suburban Propane Partners, L.P. Announces First Quarter Earnings

PR Newswire

WHIPPANY, N.J., Feb. 7, 2013

WHIPPANY, N.J., Feb. 7, 2013 /PRNewswire/--Suburban Propane Partners, L.P.
(NYSE: SPH), a nationwide distributor of propane, fuel oil and related
products and services, as well as a marketer of natural gas and electricity,
today announced earnings for its first quarter ended December 29, 2012.

The first quarter of fiscal 2013 was the first full quarter of operations
since the Partnership's acquisition of Inergy L.P.'s retail propane business
("Inergy Propane") on August 1, 2012. For comparative purposes, the variances
in quarter-over-quarter results were primarily attributable to the inclusion
of the Inergy Propane operations. Net income for the three months ended
December 29, 2012 amounted to $59.8 million, or $1.05 per Common Unit,
compared to $23.2 million, or $0.65 per Common Unit in the prior year first
quarter. Adjusted earnings before interest, taxes, depreciation and
amortization ("Adjusted EBITDA") for the first quarter of fiscal 2013 amounted
to $116.4 million, compared to $39.1 million in the prior year first quarter,
an increase of $77.3 million.

In announcing these results, President and Chief Executive Officer Michael J.
Dunn, Jr., said, "We are extremely pleased with the results achieved through
the first full quarter of operations following our August 2012 acquisition of
Inergy Propane. While the first quarter of fiscal 2013 presented challenges as
a result of unseasonably warm temperatures throughout much of our service
territories, a lower commodity price environment coupled with the initial
benefits of bringing the two operations together has helped mitigate the
negative effects of the weather. Our combined field operations personnel are
working well together; providing superior customer service and managing our
cost structure as we integrate the businesses."

Mr. Dunn added, "The Inergy Propane integration is progressing very well.
We're executing on our detailed plans and have achieved some significant
milestones in preparation for this year's heating season. Key management
positions are in place, we've established regular communications with the
entire Inergy Propane customer base and have begun to leverage Suburban's more
centralized operating model in certain aspects of the business. Much work
still lies ahead, of course, but we're well on our way."

Mr. Dunn concluded, "Finally, despite the increased size of our business and
the increased working capital needs, we continued to fund all of our working
capital requirements from on hand cash without the need to borrow under our
revolving credit facility and ended the quarter with more than $149.0 million
of cash. As we head into the second half of the heating season, we remain
focused on our customer base, leveraging the size and strength of the combined
operations and executing on our integration plans."

Retail propane gallons sold in the first quarter of fiscal 2013 increased 79.6
million gallons, to 153.9 million gallons from 74.3 million gallons in the
prior year first quarter. Sales of fuel oil and other refined fuels increased
8.2 million gallons, to 15.9 million gallons compared to 7.7 million gallons
in the prior year first quarter. According to the National Oceanic and
Atmospheric Administration, average temperatures (as measured by heating
degree days) across all of the Partnership's service territories during the
first quarter of fiscal 2013 were 9% warmer than normal, compared to the prior
year quarter in which average temperatures were 13% warmer than normal. While
average temperatures during the first quarter of fiscal 2013 were 4% cooler
than the prior year first quarter, volumes sold did not benefit from the
slight improvement in weather patterns as temperatures remained unseasonably
warm compared to normal, particularly during the month of December 2012.
Therefore, the increase in volumes sold compared to the prior year first
quarter was almost entirely attributable to the addition of Inergy Propane.

On January 24, 2013, the Partnership announced that its Board of Supervisors
had declared the 29^th increase (since the Partnership's recapitalization in
1999) in the Partnership's quarterly distribution from $0.8525 to $0.8750 per
Common Unit for the three months ended December 29, 2012. On an annualized
basis, this distribution rate equates to $3.50 per Common Unit, or 2.6% higher
than the distribution rate at the end of the first quarter of fiscal 2012. The
$0.8750 per Common Unit distribution is payable on February 12, 2013 to Common
Unitholders of record as of February 5, 2013.

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 more than 1.2 million residential,
commercial, industrial and agricultural customers through more than 750
locations in 41 states.

This press release contains certain forward-looking statements relating to
future business expectations and financial condition and results of operations
of the Partnership, based on management's current good faith expectations and
beliefs concerning future developments. These forward-looking statements are
subject to certain risks and uncertainties that could cause actual results to
differ materially from those discussed or implied in such forward-looking
statements, including the following:

  oThe impact of weather conditions on the demand for propane, fuel oil and
    other refined fuels, natural gas and electricity;
  oVolatility in the unit cost of propane, fuel oil and other refined fuels
    and natural gas, the impact of the Partnership's hedging and risk
    management activities, and the adverse impact of price increases on
    volumes as a result of customer conservation;
  oThe cost savings expected from the Partnership's most recent acquisition
    of Inergy Propane may not be fully realized or realized within the
    expected timeframe;
  oThe Partnership's revenue from the Inergy Propane acquisition may be lower
    than expected;
  oThe costs of integrating the business acquired in the Inergy Propane
    acquisition into the Partnership's existing operations may be greater than
    expected;
  oThe ability of the Partnership to compete with other suppliers of propane,
    fuel oil and other energy sources;
  oThe impact on the price and supply of propane, fuel oil and other refined
    fuels from the political, military or economic instability of the oil
    producing nations, global terrorism and other general economic conditions;
  oThe ability of the Partnership to acquire and maintain reliable
    transportation for its propane, fuel oil and other refined fuels;
  oThe ability of the Partnership to retain customers or acquire new
    customers;
  oThe impact of customer conservation, energy efficiency and technology
    advances on the demand for propane, fuel oil and other refined fuels,
    natural gas and electricity;
  oThe ability of management to continue to control expenses;
  oThe impact of changes in applicable statutes and government regulations,
    or their interpretations, including those relating to the environment and
    global warming, derivative instruments and other regulatory developments
    on the Partnership's business;
  oThe impact of changes in tax regulations that could adversely affect the
    tax treatment of the Partnership for federal income tax purposes;
  oThe impact of legal proceedings on the Partnership's business; 
  oThe impact of operating hazards that could adversely affect the
    Partnership's operating results to the extent not covered by insurance;
  oThe Partnership's ability to make strategic acquisitions and successfully
    integrate them;
  oThe impact of current conditions in the global capital and credit markets,
    and general economic pressures;
  oThe operating, legal and regulatory risks the Partnership may face; and
  oOther risks referenced from time to time in filings with the Securities
    and Exchange Commission ("SEC") and those factors listed or incorporated
    by reference into the Partnership's Annual Report under "Risk Factors."

Some of these risks and uncertainties are discussed in more detail in the
Partnership's Annual Report on Form 10-K for its fiscal year ended September
29, 2012 and other periodic reports filed with the SEC. Readers are cautioned
not to place undue reliance on forward-looking statements, which reflect
management's view only as of the date made. The Partnership undertakes no
obligation to update any forward-looking statement, except as otherwise
required by law.



Suburban Propane Partners, L.P. and Subsidiaries
Consolidated Statements of Operations
For the Three Months Ended December 29, 2012 and December 24, 2011
(in thousands, except per unit amounts)
(unaudited)
                                 Three Months Ended
                                 December 29,             December 24,
                                 2012                     2011
Revenues
 Propane                        $                    $    
                                 392,785                  240,356
 Fuel oil and refined fuels     62,146                   30,981
 Natural gas and                18,389                   18,051
electricity
 All other                     17,383                   10,498
                                 490,703                  299,886
Costs and expenses
 Cost of products sold          245,100                  183,574
 Operating                      114,936                  65,942
 General and administrative     17,832                   12,295
 Depreciation and               28,359                   7,785
amortization
                                 406,227                  269,596
Operating income                 84,476                   30,290
Interest expense, net            24,556                   6,838
Income before provision for      59,920                   23,452
income taxes
Provision for income taxes       132                      220
Net income                       $                   $     
                                 59,788                   23,232
Net income per Common Unit -     $                  $      
basic                            1.05                    0.65
Weighted average number of
Common Units outstanding -       57,170                   35,572
basic
Net income per Common Unit -     $                  $      
diluted                          1.04                    0.65
Weighted average number of
Common Units outstanding -       57,347                   35,777
diluted
Supplemental Information:
EBITDA (a)                       $                    $     
                                 112,835                  38,075
Adjusted EBITDA (a)              $                    $     
                                 116,449                  39,123
Retail gallons sold:
    Propane                      153,933                  74,279
    Refined fuels                15,885                   7,695
Capital expenditures:
    Maintenance                  $                  $      
                                 1,434                    1,861
    Growth                       $                  $      
                                 5,327                    3,544
    EBITDA represents net income before deducting interest expense, income
    taxes, depreciation and amortization. Adjusted EBITDA represents EBITDA
    excluding the unrealized net gain or loss on mark-to-market activity for
    derivative instruments and other certain items, as applicable, as provided
(a) in the table below. Our management uses EBITDA and Adjusted EBITDA as
    measures of liquidity and we are including them because we believe that
    they provide 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.
    EBITDA and Adjusted EBITDA are not recognized terms under accounting
    principles generally accepted in the United States of America ("US GAAP")
    and should not be considered as an alternative to net income or net cash
    provided by operating activities determined in accordance with US GAAP.
    Because EBITDA and Adjusted EBITDA as determined by us excludes some, but
    not all, items that affect net income, they may not be comparable to
    EBITDA and Adjusted EBITDA or similarly titled measures used by other
    companies.
    The following table sets forth (i) our calculations of EBITDA and Adjusted
    EBITDA and (ii) a reconciliation of Adjusted EBITDA, as so calculated, to
    our net cash provided by (used in) operating activities:
                                 Three Months Ended
                                 December 29,             December 24,
                                 2012                     2011
    Net income                   $                   $     
                                 59,788                   23,232
    Add:
     Provision for income       132                      220
    taxes
     Interest expense, net      24,556                   6,838
     Depreciation and           28,359                   7,785
    amortization
    EBITDA                       112,835                  38,075
     Unrealized (non-cash)
    losses on changes in         3,614                    1,048
    fair value of
    derivatives
    Adjusted EBITDA              116,449                  39,123
    Add / (subtract):
     Provision for income       (132)                    (220)
    taxes
     Interest expense, net      (24,556)                 (6,838)
     Unrealized (non-cash)
    (losses) on changes in       (3,614)                  (1,048)
    fair value of
    derivatives
     (Gain) on disposal of
    property, plant and          (2,267)                  (32)
    equipment, net
     Compensation cost
    recognized under             1,240                    1,203
    Restricted Unit Plans
     Changes in working
    capital and other assets     (25,583)                 (57,511)
    and liabilities
    Net cash provided by         $                   $    
    (used in) operating          61,537                   (25,323)
    activities
The unaudited financial information included in this document is intended only
as a summary provided for your convenience, and should be read in conjunction
with the complete consolidated financial statements of the Partnership
(including the Notes thereto, which set forth important information) contained
in its Quarterly Report on Form 10-Q to be filed by the Partnership with the
United States Securities and Exchange Commission ("SEC"). Such report, once
filed, will be available on the public EDGAR electronic filing system
maintained by the SEC.





SOURCE Suburban Propane Partners, L.P.

Website: http://suburbanpropane.com
Contact: Michael Stivala, Chief Financial Officer, +1-973-503-9252