Analyst Note| Andrew Bischof, CFA, CPA |
We are maintaining our $14.50 fair value estimate for Suburban Propane Partners after the partnership reported that its propane, refined fuels, and energy marketing businesses generated $23.3 million in adjusted EBITDA for the third quarter of fiscal 2021, down from $32.2 million in the year-ago period. Net losses in the quarter were $26 million, compared with $15.6 million in the prior-year third quarter. Given the cyclicality of Suburban's business, in which demand is lower during the warm summer months, losses are typical in the third quarter. We are reaffirming our no-moat and negative moat trend ratings.