Summary
Enterprise Products Partners L.P. (EPD) has filed an 8-K report on April 27, 2009, to announce its financial and operating results for the first quarter ended March 31, 2009. The filing includes a press release detailing these results, which management uses as a basis for evaluating segment performance and allocating capital. Investors are advised to review the provided press release (Exhibit 99.1) for specific financial figures. The report also clarifies the company's use of non-GAAP financial measures, including gross operating margin, distributable cash flow, and Adjusted EBITDA. These measures are presented as valuable insights into the core profitability, liquidity, and financial performance of EPD's assets, supplementing traditional GAAP metrics. Additionally, the filing notes the adoption of SFAS 160, which changes the accounting and reporting for noncontrolling interests, presenting them as part of partners' equity instead of a mezzanine classification.
Key Highlights
- 1EPD announced its financial and operating results for the first quarter ended March 31, 2009, via an earnings press release furnished with the 8-K filing.
- 2The company utilizes and defines several non-GAAP financial measures: gross operating margin (for segment performance), distributable cash flow (for liquidity), and Adjusted EBITDA (for asset performance assessment).
- 3Gross operating margin is presented as a key performance indicator for core operational profitability and capital allocation decisions.
- 4Distributable cash flow is highlighted as a measure of liquidity, used internally to compare generated cash flow against planned distributions and to calculate the distribution coverage ratio.
- 5Adjusted EBITDA is provided as a supplemental measure to assess asset financial performance independent of financing and capital structure.
- 6EPD adopted SFAS 160 effective January 1, 2009, which reclassifies noncontrolling interests from a mezzanine equity position to a component of partners' equity.
- 7The press release detailing the Q1 2009 results is available as Exhibit 99.1 to this 8-K filing and is incorporated by reference.