Suburban Propane Partners LP (SPH) 2025 Q4 法說會逐字稿

Thank you for standing by, and welcome to the Suburban Propane Partners fourth quarter and fiscal Year-End earnings conference call. (Operator Instructions)

感謝您的耐心等待，歡迎參加郊區丙烷合作夥伴公司第四季及財年終收益電話會議。（操作說明）

I'd now like to turn the call over to Davin D'Ambrosio, Vice President and Treasurer. You may begin.

現在我將把電話交給副總裁兼財務主管達文‧丹布羅西奧。你可以開始了。

Thank you, Rob. Good morning, everyone. Thank you for joining us this morning for our fiscal 2025 fourth quarter and full year earnings conference call. I'm here with Mike Stivala, our President and Chief Executive Officer; Mike Kuglin, Chief Financial Officer; and Alex Centeno, our Senior Vice President of Operations.

謝謝你，羅布。各位早安。感謝各位今天上午參加我們2025財年第四季及全年業績電話會議。我今天和我們的總裁兼首席執行官邁克·斯蒂瓦拉、首席財務官邁克·庫格林以及營運高級副總裁亞歷克斯·森特諾一起出席。

This morning, we will review our fourth -- fiscal 2025 fourth quarter and full year financial results, along with our current outlook for the business. Once we've concluded our prepared remarks, we will open the session to questions. Our conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, relating to the partnership's future business expectations and predictions and financial condition and results of operations.

今天上午，我們將回顧我們第四財年（2025財年）第四季和全年財務業績，以及我們目前的業務展望。我們發言結束後，將開放式提問環節。我們的電話會議包含符合 1934 年證券交易法第 21E 條（經修訂）規定的前瞻性陳述，涉及合夥企業的未來業務預期和預測以及財務狀況和經營業績。

These forward-looking statements involve certain risks and uncertainties. We have listed some of the important facts -- factors that could cause actual results to differ materially from those discussed in such forward-looking statements, which are referred to as cautionary statements in our earnings press release, which can be viewed on our website at suburbanpropane.com. All subsequent written and oral forward-looking statements attributable to the partnership or persons acting on its behalf are expressly qualified in their entirety by such cautionary statements.

這些前瞻性陳述涉及某些風險和不確定性。我們已列出一些重要事實—這些因素可能導致實際結果與此類前瞻性聲明中討論的結果有重大差異。這些前瞻性聲明在我們的獲利新聞稿中被稱為“警示性聲明”，您可以在我們的網站 suburbanpropane.com 上查看該新聞稿。所有後續由合夥企業或代表其行事的人員作出的書面和口頭前瞻性聲明均受此類警示性聲明的完整約束。

Our annual report on Form 10-K for the fiscal year ended September 27, 2025, which contains additional disclosure regarding forward-looking statements and risk factors will be filed on or about November 26. Once filed, copies will be obtained by contacting the partnership or the SEC. Certain non-GAAP measures will be discussed on this call. We have provided a description of those measures as well as a discussion of why we believe this information to be useful in our Form 8-K, which was furnished to the SEC this morning. Form 8-K will be available through a link in the Investor Relations section of our website.

我們將於 2025 年 9 月 27 日左右提交截至 2025 年 9 月 27 日的財政年度的 10-K 表格年度報告，其中包含有關前瞻性陳述和風險因素的更多披露資訊。提交後，可透過聯繫合夥企業或美國證券交易委員會取得副本。本次電話會議將討論一些非GAAP指標。我們在今天早上提交給美國證券交易委員會的 8-K 表格中，對這些措施進行了描述，並討論了我們認為這些資訊有用的原因。8-K 表格可透過我們網站投資者關係部分的連結取得。

At this time, I will turn the call over to Mike Stivala for some opening remarks. Mike?

現在，我將把電話交給麥克·史蒂瓦拉，請他致開幕詞。麥克風？

Thanks, Davin, and thank you all for joining us today. Fiscal 2025 was another outstanding year for Suburban Propane. In our core propane business, propane demand was strong as a result of sustained period of more normal winter weather in the heart of our footprint from mid-December through February, the most critical months for heat-related demand as well as strong demand in our Southeast operations in the aftermath of Hurricanes Helene and Milton in the first fiscal quarter and incremental volumes from our acquisition of a well-run propane business in our Southwest territory, which we closed in November 2024.

謝謝達文，也謝謝各位今天蒞臨現場。2025財年對郊區丙烷公司來說又是個出色的一年。在我們的核心丙烷業務中，由於 12 月中旬至 2 月期間，我們業務中心地帶的冬季天氣持續較為正常（這是供暖相關需求最關鍵的幾個月），丙烷需求強勁；此外，在第一財季，颶風海倫和米爾頓過後，我們東南部的業務需求強勁；以及我們於 2024 年 11 月銷售完成了西南地區的一家銷售增量。

I'm extremely proud of how our field personnel at every level worked tirelessly to meet the surge in demand when our customers needed us most, while also opportunistically taking on new business when some of our competitors were unable to keep up. This was a real testament to the preparation by our operations teams and the flexibility of our operating model to ramp up when demand dictates. And with safety as our highest priority, what's even more impressive is how our employees performed during a prolonged stretch of very high activity levels and some harsh operating conditions while not compromising on our highest standards for safety.

我為我們各級現場工作人員感到無比自豪，他們在客戶最需要我們的時候不知疲倦地工作，以滿足激增的需求，同時在一些競爭對手無法跟上步伐的時候，他們也抓住機會承接了新業務。這充分證明了我們營運團隊的準備工作卓有成效，以及我們的營運模式能夠根據需求靈活調整產能。安全是我們最重要的優先事項，更令人印象深刻的是，我們的員工在長時間高強度的工作和一些惡劣的作業條件下，始終堅持最高的安全標準。

As a result, propane volumes for the fiscal 2025 increased nearly 6% compared to the prior year. Strong volumes, combined with effective margin management during a rising commodity price environment and good expense discipline contributed to a $28 million or 11.2% increase in adjusted EBITDA compared to the prior year.

因此，2025 財年的丙烷銷量比上一年增長了近 6%。強勁的銷量，加上在商品價格上漲環境下有效的利潤率管理以及良好的費用控制，使得調整後的 EBITDA 比上年增長了 2800 萬美元，增幅達 11.2%。

In addition to the higher earnings, we had a number of key accomplishments in fiscal 2025 in support of our long-term strategic growth initiatives. Just to highlight a few, we acquired and integrated a well-run propane business in strategic markets in New Mexico and Arizona for a total consideration of approximately $53 million. Subsequent to the end of fiscal '25, just in October of 2025, we further invested in the growth of our core propane business with the acquisition of two high-quality businesses in attractive markets in California for a total consideration of $24 million.

除了更高的收益外，我們在 2025 財年還取得了一系列重要成就，以支持我們的長期策略成長計畫。舉幾例，我們收購並整合了新墨西哥州和亞利桑那州戰略市場上運作良好的丙烷業務，總對價約為 5,300 萬美元。在 2025 財年結束後，光是 2025 年 10 月，我們就進一步投資於核心丙烷業務的成長，收購了加州兩個極具吸引力的市場的高品質企業，總對價為 2,400 萬美元。

We created a dedicated sales and business development team focused on specific propane verticals that are less weather sensitive and present opportunities for growth as the advantage of propane become a bigger part of the conversation. These verticals include opportunities in material handling, agriculture, power generation and over-the-road vehicles. We continue to identify and foster new market expansion opportunities to establish and extend our presence in certain attractive markets.

我們組建了一支專門的銷售和業務拓展團隊，專注於對天氣不太敏感的特定丙烷垂直領域，隨著丙烷優勢在討論中佔據越來越重要的地位，這些領域蘊藏著成長機會。這些垂直領域包括物料搬運、農業、發電和公路車輛等領域的機會。我們將繼續尋找和培養新的市場拓展機會，以在某些有吸引力的市場建立和擴大我們的業務。

We secured incremental supply of renewable propane and exceeded 2 million gallons of renewable propane sales focused primarily in the California market, coupled with expansion into the Florida and Virginia markets to meet customer demand for a renewable alternative. We entered into a multiyear partnership with NASCAR and Speedway Motorsports, making Suburban Propane the official propane partner of NASCAR and Speedway Motorsports, reflecting the reliability of our national presence and demonstrating the power and versatility of propane at one of America's top spectator sports.

我們獲得了可再生丙烷的增量供應，可再生丙烷的銷售額超過 200 萬加侖，主要集中在加州市場，同時擴展到佛羅裡達州和維吉尼亞州市場，以滿足客戶對可再生替代品的需求。我們與 NASCAR 和 Speedway Motorsports 建立了多年合作關係，使 Suburban Propane 成為 NASCAR 和 Speedway Motorsports 的官方丙烷合作夥伴，這體現了我們在全國範圍內的可靠性，並展示了丙烷在美國頂級觀賞性運動之一中的強大功能和多功能性。

In our RNG operations, we continue to implement several operational improvements at our Stanfield, Arizona facility to stabilize and grow RNG production, enhance safety protocols, modify feedstock intake practices and improve our overall plant efficiency to strengthen the long-term performance and returns of the facility, while also advancing the capital projects at our Columbus, Ohio and Upstate New York facilities, both of which are expected to come online in the first half of fiscal 2026. We also expanded our RNG management team with dedicated safety, construction and compliance personnel to bring more expertise in-house.

在我們的再生天然氣 (RNG) 營運中，我們繼續在亞利桑那州斯坦菲爾德工廠實施多項營運改善措施，以穩定和提高 RNG 產量，加強安全規程，改善原料接收方式，並提高工廠整體效率，從而增強工廠的長期性能和回報。同時，我們也正在推動俄亥俄州哥倫布市和紐約州北部工廠的資本項目，這兩個工廠預計都將在 2026 財年上半年投入營運。我們也擴充了 RNG 管理團隊，增設了專門的安全、施工和合規人員，以獲得更多內部專業知識。

And focusing on our balance sheet, we launched an At-the-Market equity program to sell up to $100 million of newly issued Common Units, raising $23.5 million in net proceeds from the sale of 1.3 million Common Units at attractive prices during fiscal 2025. Proceeds from the ATM program are being used to support our ongoing pursuit of opportunistic growth and to accelerate debt reduction.

為了改善資產負債表，我們啟動了以市價發行股權計劃，計劃出售最多 1 億美元的新發行普通股單位，在 2025 財年以優惠價格出售 130 萬股普通股單位，籌集 2,350 萬美元淨收益。ATM計劃的收益將用於支持我們持續追求機會性成長和加速減少債務。

During the year, using excess cash flows and proceeds from the ATM program, we deployed nearly $53 million for propane acquisitions, over $25 million for our growth projects in the RNG business and reduced our overall debt by nearly $2 million. With the increased earnings and slightly lower outstanding debt, we ended fiscal 2025 with a leverage ratio of 4.29 times, a significant improvement from 4.76 times at the end of the prior year.

今年，我們利用多餘的現金流和 ATM 項目的收益，投入了近 5,300 萬美元用於丙烷收購，投入了超過 2,500 萬美元用於 RNG 業務的成長項目，並將我們的整體債務減少了近 200 萬美元。由於獲利增加和未償債務略有下降，我們在 2025 財年結束時槓桿率為 4.29 倍，較前一年末的 4.76 倍有了顯著改善。

In addition to the strong operating and financial performance, during fiscal 2025, we embarked on a multiyear technology modernization initiative that will simplify the way we operate, consolidate our systems platform and improve the tools we use to serve our customers, delivering a better experience for both our employees and our customers. This initiative will not change our personalized hyperlocal business model that sets Suburban Propane apart as best-in-class operators within the propane industry.

除了強勁的營運和財務業績外，在 2025 財年，我們啟動了一項多年技術現代化計劃，該計劃將簡化我們的營運方式，整合我們的系統平台，並改進我們服務客戶的工具，從而為我們的員工和客戶提供更好的體驗。這項舉措不會改變我們以個人化在地化服務為核心的商業模式，正是這種模式使 Suburban Propane 成為丙烷行業中一流的營運商。

So fiscal 2025 was a very successful year for Suburban Propane, both in terms of our financial performance and from executing on our long-term strategic growth plans while remaining patient and disciplined to maintain financial flexibility through a strong balance sheet. A little later, I'll provide some closing remarks.

因此，2025 財年對於 Suburban Propane 來說是一個非常成功的一年，無論是在財務業績方面，還是在執行長期戰略增長計劃方面，同時保持耐心和自律，通過強大的資產負債表來維持財務靈活性方面，都取得了成功。稍後我會做一些總結發言。

However, at this point, I'll turn the call over to Mike Kuglin, who will discuss our full year and fourth quarter results in more detail. Mike?

不過，現在我將把電話交給麥克·庫格林，他將更詳細地討論我們全年和第四季的業績。麥克風？

Thanks, Mike, and good morning, everyone. I'll start by focusing on our full year results, then give some color on the fourth quarter toward the end of my remarks. To be consistent with previous reporting, I'm excluding the impact of unrealized noncash mark-to-market adjustments on our commodity hedges, which resulted in an unrealized gain of $2.4 million in fiscal 2025 compared to an unrealized loss of $14.6 million in the prior year, along with certain other noncash items we've identified in the reconciliation of net income to adjusted EBITDA in the press release.

謝謝你，麥克，大家早安。我將首先重點介紹我們全年的業績，然後在演講的最後部分再詳細談談第四季度的情況。為了與先前的報告保持一致，我排除了未實現的非現金按市值計價調整對我們商品避險的影響，這導致 2025 財年未實現收益為 240 萬美元，而上一年則為未實現虧損 1460 萬美元，以及我們在新聞稿中將淨收入與調整後 EBITDA 進行調整後 EBITDA 進行調整的某些非現金項目。

Including these items, net income for fiscal 2025 was $128.4 million or $1.97 per Common Unit compared to $107.7 million or $1.68 per Common Unit in the prior year. Adjusted EBITDA for fiscal 2025 was $278 million, an increase of $28 million or 11.2% compared to the prior year. Retail propane gallons sold in fiscal 2025 were 400.5 million gallons, an increase of 5.9% compared to the prior year.

在計入這些項目後，2025 財年的淨收入為 1.284 億美元，即每普通股單位 1.97 美元，而上一財年為 1.077 億美元，即每普通股單位 1.68 美元。2025 財年調整後 EBITDA 為 2.78 億美元，比前一年增加 2,800 萬美元，增幅為 11.2%。2025 財年零售丙烷銷售量為 4.005 億加侖，較前一年成長 5.9%。

The volume increase was driven by sustained widespread cold temperatures during the most critical months for heat-related demand, increased demand for backup power generation and other applications, the aftermath of Hurricanes Helen and Milton, continued growth in our counter seasonal national accounts business and incremental volumes from our recent propane acquisitions. With respect to the weather, average temperatures for fiscal 2025 were 9% warmer than normal and 4% cooler than the prior year.

銷售成長的驅動因素包括：供暖需求最關鍵月份的持續大範圍低溫、備用發電和其他應用需求的增加、颶風海倫和米爾頓的影響、我們反季節性全國客戶業務的持續增長以及我們最近收購丙烷帶來的增量銷售。就天氣而言，2025 財年的平均氣溫比正常高 9%，比前一年低 4%。

During January and February, average temperatures were comparable to normal and 13% colder than the same period last year. From a commodity perspective, average wholesale propane prices for fiscal 2025 were $0.79 per gallon basis Mont Belvieu, which was 5.8% higher than the prior year.

1月和2月的平均氣溫與正常水準相當，比去年同期低13%。從商品角度來看，2025 財年蒙特貝爾維尤的平均批發丙烷價格為每加侖 0.79 美元，比前一年上漲了 5.8%。

According to the most recent report from the Energy Information Administration, US propane inventories at the end of last week were 106 million barrels, which was 6% higher than a year ago and 13% higher than historical averages for this time of year. Given the strength in inventories, wholesale propane prices have trended down from the end of the fiscal year and are currently in the $0.60 range compared to the $0.80 range at the same time last year.

根據美國能源資訊署的最新報告，截至上週末，美國丙烷庫存為 1.06 億桶，比一年前高出 6%，比往年同期平均高出 13%。鑑於庫存充足，丙烷批發價格自本財年末以來呈下降趨勢，目前約為每桶 0.60 美元，而去年同期約為每桶 0.80 美元。

Excluding the impact of the mark-to-market adjustments on our commodity hedges that I mentioned earlier, total gross margin of $866.4 million for fiscal 2025 increased $46.8 million or 5.7% compared to the prior year, primarily due to higher propane volumes sold and higher propane unit margins. Excluding the impact of the unrealized mark-to-market adjustments, propane unit margins for fiscal 2025 increased $0.02 per gallon or 1% with margin expansion experienced across all customer categories.

除去我之前提到的按市值計價調整對我們商品避險的影響，2025 財年的總毛利潤為 8.664 億美元，比上年增長 4680 萬美元，增幅為 5.7%，這主要是由於丙烷銷量增加和丙烷單位利潤率提高。剔除未實現的按市值計價調整的影響，2025 財年丙烷單位利潤率每加侖增長 0.02 美元，即 1%，所有客戶類別的利潤率均有所提高。

In our RNG operations, average daily RNG injection for the fiscal year was approximately 13% lower compared to the prior year, primarily due to downtime experience several operational improvement projects designed to enhance future RNG production as well as multiple power outages and extremely cold ambient air temperatures in the Arizona area during the winter that impacted anaerobic digestion.

在我們的 RNG 營運中，本財年平均每日 RNG 注入量比上一年下降了約 13%，這主要是由於停機時間導致多個旨在提高未來 RNG 產量的營運改善項目，以及冬季亞利桑那州地區多次停電和極低的氣溫影響了厭氧消化。

While we remain focused on executing controllable operational improvements, revenues at the Stanfield facility continue to face headwinds from lower prices, both California and LCFS credits, Federal D3 RINs. California LCFS credit prices remain depressed relative to historical levels, though average prices for fiscal 2025 increased 2.5% compared to the prior year.

儘管我們仍然專注於執行可控的營運改進，但斯坦菲爾德工廠的收入仍然面臨價格走低、加州和低碳燃料標準 (LCFS) 積分、聯邦 D3 RIN 等不利因素的影響。儘管加州低碳燃料標準 (LCFS) 信用價格相對於歷史水準仍然低迷，但 2025 財年的平均價格比前一年上漲了 2.5%。

We are encouraged to see the finalization of amendments to the LCFS program implemented by CARB made effective as of July 1, 2025, which accelerated carbon reduction targets and aim to create a better balance in the LCFS credit bank. Since the amendment were finalized in June 2025, LCFS credit prices have increased over 30%. Conversely, average Federal D3 RIN prices for fiscal 2025 decreased 25% compared to the prior year.

我們很高興地看到，加州空氣資源委員會 (CARB) 實施的低碳燃料標準 (LCFS) 計畫修正案已於 2025 年 7 月 1 日生效，這些修正案加快了碳減排目標的實現，旨在更好地平衡低碳燃料標準信用額度。自 2025 年 6 月修正案最終確定以來，低碳燃料標準 (LCFS) 信用價格已上漲超過 30%。相反，2025 財年聯邦 D3 RIN 的平均價格比前一年下降了 25%。

With respect to expenses, combined operating and G&A expenses increased $23.7 million or 4.2% compared to the prior year. The increase was primarily due to higher payroll and benefit-related expenses, overtime and other variable operating costs to support the increased activities associated with incremental customer demand as well as higher variable compensation expense associated with the increase in earnings and costs related to the technology initiative that Mike mentioned earlier.

在支出方面，與前一年相比，合併營運費用和一般及行政費用增加了 2,370 萬美元，增幅為 4.2%。成長的主要原因是薪資和福利相關支出、加班費和其他可變營運成本的增加，以支援與客戶需求成長相關的活動，以及與收入成長相關的可變補償支出增加，以及麥克之前提到的技術計劃相關的成本增加。

Net interest expense of $76.3 million for fiscal 2025 increased $1.7 million compared to the prior year due to higher average outstanding borrowings under our revolving credit facility, partially offset by lower benchmark interest rates. Total capital spending for fiscal 2025 of $72 million was $12.5 million higher than the prior year, primarily due to advancing construction efforts at our RNG facilities in Columbus, Ohio and Upstate New York.

2025 財年的淨利息支出為 7,630 萬美元，比前一年增加了 170 萬美元，原因是循環信貸額度下的平均未償借款額增加，但部分被較低的基準利率所抵銷。2025 財年總資本支出為 7,200 萬美元，比前一年增加了 1,250 萬美元，這主要是由於我們在俄亥俄州哥倫布市和紐約州北部的 RNG 設施的建設工作進展順利。

For fiscal 2026, capital spending for our propane operations is expected to be consistent with historical levels, which is between $40 million to $45 million and CapEx for the RNG projects is expected to range between $30 million to $50 million -- excuse me, $30 million to $35 million with the spending concentrated in the first half of the fiscal year. We expect capital spending at our RNG facility in Upstate New York to qualify for investment tax credit under the Inflation Reduction Act at a rate of 30%, which equates to a range of $7 million to $9 million of tax credits, which could be earned and monetized when the assets placed into service.

2026 財年，我們丙烷業務的資本支出預計將與歷史水準保持一致，在 4000 萬美元至 4500 萬美元之間；RNG 項目的資本支出預計將在 3000 萬美元至 5000 萬美元之間——抱歉，是 3000 萬美元至 3500 萬美元，支出將在該財年的上半年。我們預計，我們在紐約州北部的 RNG 設施的資本支出將符合《通貨膨脹降低法案》規定的投資稅收抵免條件，抵免率為 30%，相當於 700 萬至 900 萬美元的稅收抵免，這些抵免可以在資產投入使用時獲得併變現。

Turning to our results for the fourth quarter of fiscal 2025. Consistent with the seasonality of our business, we typically report a net loss in the fourth quarter. With that said, excluding the effect of certain noncash items in both years, we reported a net loss of $35.7 million for the fourth quarter or $0.54 per Common Unit, which was flat compared to the prior year. Adjusted EBITDA for the fourth quarter was $700,000, which was also essentially flat compared to the prior year.

接下來來看看我們2025財年第四季的業績。由於業務具有季節性，我們通常在第四季出現淨虧損。也就是說，如果排除這兩年某些非現金項目的影響，我們報告第四季淨虧損為 3,570 萬美元，即每普通股虧損 0.54 美元，與去年同期持平。第四季調整後 EBITDA 為 70 萬美元，與去年同期相比基本持平。

Retail propane gallons sold during the fourth quarter increased 1.8% compared to the prior year. Total gross margin increased $5.3 million or 4% compared to the prior year, primarily due to higher volumes sold and higher unit margins. Combined operating and G&A expenses increased $5.8 million or 4.5%, primarily due to higher volume-related variable operating costs, higher variable compensation and costs related to our technology initiative.

第四季零售丙烷銷量較上年同期成長1.8%。與前一年相比，總毛利潤增加了 530 萬美元，增幅為 4%，主要原因是銷量增加和單位利潤率提高。合併營運和一般管理費用增加了 580 萬美元，增幅為 4.5%，主要原因是銷售相關的可變營運成本增加、可變薪酬增加以及與我們的技術計劃相關的成本增加。

Excluded from adjusted EBITDA for the fourth quarter of fiscal 2025 is an impairment charge of approximately $6 million to fully write down the carrying value of our investment in an early-stage energy technology company as well as income from the reversal of an earn-out reserve associated with the RNG acquisition. The earn-out was contingent upon the acquired assets achieving a certain EBITDA threshold over a certain period. During the fourth quarter, we determined that the contingent consideration would not be earned. These noncash items were reported within other net statement of operations.

2025 財年第四季調整後的 EBITDA 不包括約 600 萬美元的減損費用，該費用用於完全減記我們對一家早期能源技術公司投資的帳面價值，以及與 RNG 收購相關的或有收益準備金的衝回收入。獲利支付取決於被收購資產在一定期間內達到一定的 EBITDA 門檻。第四季度，我們確定或有對價將無法取得。這些非現金項目已在其他淨營業報表中列示。

Turning to our balance sheet. During the fiscal year, we utilized a combination of cash flows from operating activities and net proceeds of $23.5 million in the issuance of Common Units under the ATM program to fund the propane acquisition for a total consideration of $53 million, growth capital expenditures of $25.5 million to advance the construction activities at our RNG production facilities and repayment of outstanding borrowings under our revolving credit facility of $1.8 million.

接下來來看看我們的資產負債表。在本財政年度，我們利用經營活動產生的現金流量和透過 ATM 計畫發行普通股所得淨收益 2,350 萬美元，為丙烷收購提供資金，總對價為 5,300 萬美元；為推進 RNG 生產設施的建設活動提供資金，成長資本支出為 2,550 萬美元；借款並償還了循環信貸額度下未償還的 180 萬美元。

With the improvement in earnings and debt reduction, our consolidated leverage ratio for fiscal 2025 improved to 4.29 times. We have more than ample borrowing capacity under our revolver to support the completion of our planned capital expansion projects as well as our ongoing strategic growth initiatives. As we continue to focus on the execution of our long-term strategic goals, we also stay focused on maintaining a strong balance sheet.

隨著獲利能力的提高和債務的減少，我們2025財年的綜合槓桿率改善至4.29倍。我們擁有充足的循環信貸額度，足以支持我們計劃中的資本擴張項目以及正在進行的策略成長計劃的完成。在持續專注於執行長期策略目標的同時，我們也將繼續專注於維持穩健的資產負債表。

With that, I'll turn it back to Mike.

這樣，我就把麥克風交還給麥克了。

Thanks, Mike. As announced in our October 23 press release, our Board of Supervisors declared our quarterly distribution of $0.325 per Common Unit in respect to the first -- fourth quarter of fiscal 2025. That equates to an annualized rate of $1.30 per Common Unit.

謝謝你，麥克。正如我們在 10 月 23 日的新聞稿中所宣布的那樣，我們的監事會宣布，2025 財年第一季至第四季度，每份普通股分配 0.325 美元。這相當於每套公共單位的年化費率為 1.30 美元。

The quarterly distribution was paid yesterday, November 12, due to the Federal Reserve closing on the 11th for Veterans Day to our unitholders of record as of November 4. Our distribution coverage continues to remain healthy at 2.13 times for the trailing 12 months ended September 2025. I also want to take a moment to thank and honor our great American veterans for their service, including so many that are part of the Suburban Propane family now that we just passed Veterans Day.

由於聯準會在 11 月 11 日退伍軍人節休市，因此我們於昨天（11 月 12 日）向截至 11 月 4 日登記在冊的單位持有人支付了季度分紅。截至 2025 年 9 月的過去 12 個月，我們的分紅覆蓋率持續維持健康水平，為 2.13 倍。我也想藉此機會感謝和致敬我們偉大的美國退伍軍人，感謝他們為國家做出的貢獻，其中也包括許多剛慶祝完退伍軍人節的退伍軍人，他們現在都是 Suburban Propane 大家庭的一員。

So just a few closing remarks regarding our long-term strategy. Our long-term strategic growth plan remains to foster the growth of our core propane business while making strategic investments in lower carbon renewable energy alternatives through our Suburban renewable energy subsidiary, leveraging our core competencies in safety, customer service and logistics, especially in the localized energy distribution markets.

最後，關於我們的長期策略，還有幾點要補充說明。我們的長期策略成長計畫仍然是促進核心丙烷業務的成長，同時透過我們的郊區再生能源子公司對低碳再生能源替代方案進行策略性投資，利用我們在安全、客戶服務和物流方面的核心競爭力，尤其是在本地化能源分銷市場。

The energy evolution is a long journey, one that requires a pragmatic and balanced approach to identifying and fostering energy solutions that can lower greenhouse gas emissions and our country's overall carbon footprint. It requires solutions that can deliver energy that is reliable, affordable and sustainable. We have definitely seen a shift in the conversation that is benefiting the propane industry by recognizing propane's versatile, affordable, on-demand nature and its clean qualities as an immediate and long-term solution to helping lower the carbon footprint.

能源轉型是一個漫長的過程，需要採取務實和平衡的方法來識別和促進能夠降低溫室氣體排放和我國整體碳足跡的能源解決方案。這需要能夠提供可靠、經濟、永續能源的解決方案。我們已經看到，人們的討論發生了轉變，這有利於丙烷行業的發展，因為人們認識到丙烷用途廣泛、價格實惠、可按需供應以及清潔的特性，將其視為降低碳足跡的直接和長期解決方案。

We are very well positioned to take advantage of this growing respect for propane given our operational and financial strength and stability. We are also maintaining our focus on innovation to ensure that Suburban Propane continues to be regarded as a trusted local distributor of energy for decades to come. That innovation includes our advancements in delivering renewable propane and renewable natural gas as direct drop-in replacements for their traditional energy equivalents.

憑藉我們強大的營運和財務實力及穩定性，我們完全有能力利用人們對丙烷日益增長的尊重。我們將繼續專注於創新，以確保 Suburban Propane 在未來幾十年內繼續被視為值得信賴的當地能源經銷商。這項創新包括我們在提供再生丙烷和再生天然氣方面的進展，這些氣體可以直接取代傳統的能源。

The energy evolution is in the early innings. The investments we have made have been very measured and focused on long-term growth and sustainability. It is great to see a more pragmatic approach toward the energy evolution and also great to see a supportive regulatory and policy framework that contemplates a more deliberate and inclusive environment to drive down emissions over time and with an all-of-the-above philosophy for energy solutions. We're very excited to be starting a new heating season, and our people and platform are very well prepared to handle whatever this year's weather dictates.

能量演化尚處於初期階段。我們所做的投資都非常謹慎，並且專注於長期成長和永續發展。很高興看到能源發展採取更加務實的態度，也很高興看到支持性的監管和政策框架，該框架考慮營造一個更加審慎和包容的環境，以逐步減少排放，並秉持“能源解決方案應面面俱到”的理念。我們非常高興即將開始新的供暖季，我們的人員和平台已經做好充分準備，應對今年任何天氣狀況。

With that, I want to thank our more than 3,300 employees for helping make fiscal 2025 another outstanding year for Suburban Propane and for their unwavering commitment to safety for our customers, our employees and the communities we serve. And as always, I hope you and your families remain safe and healthy, and I wish everyone a very happy holiday season. We appreciate your support. We'd now like to open the call up for questions.

在此，我要感謝我們 3300 多名員工，感謝他們幫助 Suburban Propane 在 2025 財年取得了又一個傑出的成績，並感謝他們堅定不移地致力於保障我們的客戶、員工和我們所服務社區的安全。像往常一樣，我希望您和您的家人平安健康，並祝大家節日快樂。感謝您的支持。現在我們開放提問環節。

And Rob, if you could help us with that.

羅布，如果你能幫我們做這件事就太好了。

(Operator Instructions) And we have no questions. I will now turn the call back over to Mike Stivala for some final closing comments.

（操作說明）我們沒有任何問題。現在我將把電話轉回給麥克·斯蒂瓦拉，讓他做一些最後的總結發言。

Great. Thank you, Rob. I think we said enough. We're excited about the new year, and we look forward to talking to everybody after our first quarter in February, and please have a safe and happy holiday season. Thank you.

偉大的。謝謝你，羅布。我覺得我們已經說得夠多了。我們對新的一年充滿期待，希望在二月第一季結束後與大家見面，祝大家節日快樂，平安健康。謝謝。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線了。