Summary
Enterprise Products Partners L.P. (EPD) filed an 8-K on January 26, 2006, to announce its financial results for the fourth quarter and full year ended December 31, 2005. The report primarily serves as a notification of the earnings release and provides context on the company's use of non-GAAP financial measures, including gross operating margin, distributable cash flow, and EBITDA. These measures are presented as key performance indicators used by management for internal reporting and capital allocation decisions. The company emphasizes that these non-GAAP metrics should not replace GAAP measures but are provided to offer investors insights into the core profitability and cash-generating capabilities of its operations. Investors should note that the actual financial performance data (revenue, net income, etc.) for the periods ending December 31, 2005, are detailed within the referenced press release (Exhibit 99.1), which is incorporated by reference. The 8-K itself does not contain the detailed financial tables but points to the earnings release as the source for these figures. The company also highlights its use of equity method investments and provides definitions for various industry-specific acronyms.
Key Highlights
- 1EPD filed an 8-K on January 26, 2006, announcing financial results for the periods ending December 31, 2005.
- 2The primary purpose of the 8-K is to furnish the earnings press release (Exhibit 99.1) which contains detailed financial results.
- 3The company utilizes and defines several non-GAAP financial measures: Gross Operating Margin, Distributable Cash Flow, and EBITDA.
- 4Gross Operating Margin is presented as a key measure of core profitability of EPD's operations.
- 5Distributable Cash Flow is highlighted as a significant liquidity metric used to assess the cash flows generated to support distributions to partners.
- 6EBITDA is provided as a supplemental measure for assessing financial performance and the ability of assets to generate cash.
- 7The company emphasizes that these non-GAAP measures are used internally by management and should not be considered as replacements for GAAP measures.