Ladies and gentlemen, thank you for standing by, and welcome to the Suburban Propane Partners, L.P. Fiscal 2020 Second Quarter Results Conference Call. At this point, all the participant lines are in a listen-only mode. However, there will be an opportunity for your questions and instructions will be given at that time. [Operator Instructions]. As a reminder, today’s call is being recorded.And again this 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. These forward-looking statements involve certain risks and uncertainties. The Partnership has listed some of the important 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 its earnings press release, which can be viewed on the company’s website. 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.With that, I’ll turn the call now to Mr. Davin D’Ambrosio, Vice President and Treasurer. Please go ahead, sir. Davin D’Ambrosio: Thank you, John. Good morning, everyone. Thank you for joining us this morning for our fiscal 2020 second quarter earnings conference call. Joining me this morning are Mike Stivala, our President and Chief Executive Officer; Mike Kuglin, Chief Financial Officer and Chief Accounting Officer; and Steve Boyd, our Chief Operating Officer. This morning we will review our second quarter results along with our current outlook for the business. As usual, once we’ve concluded our prepared remarks, we will open the session to questions.Our annual report on Form 10-K for the fiscal year ended September 28, 2019 and Form 10-Q for the period ended March 28, 2020, will be filed by the end of business today, both contain additional disclosures regarding forward-looking statements and risk factors. Copies may 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. The Form 8-K will be available through a link in the Investor Relations section of our website at suburbanpropane.com.At this point, I will turn the call over to Mike Stivala for some opening remarks. Mike?

Thanks, Davin. Good morning and thank you all for joining us today. Let me start by saying that I hope you and your families are safe and healthy and coping well with the unprecedented environment that we have all faced over the past two months. Our hearts go out to those that have lost loved ones, or are suffering as a result of the unprecedented health crisis that has plagued our entire nation, and to the frontline healthcare workers and first responders that are working tirelessly to help save lives, I thank you.At Suburban Propane, we have adapted our business practices with the health and safety of our employees, our customers, and local communities as our number one priority. Our business is considered an essential critical service in all of the states in which we operate. And I’m so proud of the resiliency and commitment of the more than 3,400 employees of Suburban Propane for their efforts to continue serving customers and local communities throughout this crisis.And in particular, there have been countless proud moments for team Suburban Propane, in which our employees have been called upon to support frontline activities by providing vital temporary heat and power generation for makeshift testing tents, hospital sites, shelters, and food distribution centers throughout our operating territory, including taking extraordinary steps to meet a request by FEMA to make propane deliveries into New York City at the Jacob Javits Center and at the USNS Comfort, to provide power to the RVs that housed FEMA workers as they worked around the clock.This unprecedented health crisis has obviously had a profound impact on jobs and the economy as a whole, as federal, state and local governments have all instituted dramatic measures to help control the spread of COVID-19. Our business is certainly not immune to…

Thanks, Mike. And good morning, everyone. To be consistent with previous reporting, as I discuss our second quarter results I’m excluding the impact of unrealized non-cash mark-to-market adjustments and derivative instruments used in risk management activities, which resulted in an unrealized loss of $4.7 million in the second quarter of fiscal 2020 compared to an unrealized gain of $8.5 million in the prior year, as well as a $100,000 loss and debt extinguishment resulting from the refinancing of our revolving credit facility in the second quarter of fiscal 2020.Excluding these items, net income for the second quarter was $82.2 million or a $1.32 per common unit compared to net income of $112.5 million or $1.82 per common unit in the prior year. Adjusted EBITDA for the second quarter amounted to $130.6 million compared to $163 million in the prior year. The decrease in earnings was essentially driven by the negative impact of extremely warm weather coming into the quarter and throughout the second quarter on heat related customer demand. While there’s much uncertainty about the future impact of the economic slowdown that started in mid-March resulting from COVID-19, it did not have a material impact on our volumes or earnings for the second quarter.Retail propane gallons sold in the second quarter were 145.1 million gallons, which is 12.2% lower than the prior year, and that percentage decrease was slightly better than the year-over-year percentage decrease in heating degree days for the quarter. Average temperatures across all of our service territories for the second quarter were 16% warmer than normal and 13% warmer than the prior year.As Mike mentioned, we had seasonably warm temperatures that started at the end of the first quarter as average temperatures for the month of December 2019 were 10% warmer than normal, resulting in a lack…

Thanks, Mike. As announced in our April 23rd press release, our Board of Supervisors declared our quarterly distribution of $0.60 per common unit in respect of our second quarter of fiscal 2020, which equates to an annualized rate of $2.40 per common unit. The quarterly distribution will be paid May the 12th to our unitholders of record as of May 5th.Regarding our outlook, on the heels of a challenging heating season due to near record warm temperatures, like so many other companies we are obviously now dealing with uncertainties resulting from this unprecedented health crisis, and in particular the potential implications on customer demand from the impact on jobs and the economy. We are developing alternative operational plans and sensitivities under multiple customer demand scenarios, and evaluating the potential impact on earnings, cash flows and access to adequate liquidity as we progress through the remainder of fiscal 2020 and plan for a new heating season in fiscal 2021.As Mike indicated, we ended March with an elevated leverage ratio due to lower earnings through the first half of the year, yet maintained coverage rate of 1 times based on maintenance CapEx and borrowing capacity of approximately $130 million under our new revolver. In the early part of the fiscal third quarter, our residential volumes have benefited from a welcomed burst of colder average temperatures at a time when so many Americans are staying home. Yet, demand from our non-residential customers has suffered as a result of the number of businesses that we serve that have been forced to shut down or have experienced significantly reduced activity levels.As we gain more visibility at the potential short-term and longer term impacts on customer demand, we may take proactive steps in the third quarter to work with our bank group to gain added financial…

[Operator Instructions]. We have a question from the line of Sharon Lui with Wells Fargo. Please go ahead.

Just wondering if you could maybe walk through the changes in demand that you’ve seen from your customers from I guess the March timeframe through April, and now as some of the businesses are thinking about restarting.

Yes. So if you think about it this way, our business mix shifts dramatically as we exit the heating season to a more counter seasonal demand, which is obviously the primarily non-residential business. So to put that into a little perspective, we -- on a full year basis, non-residential volumes account for about 50% to 55% of overall volumes, and in the second half, it’s almost two-thirds of the volume performance. So -- and that’s really very unique for every single one of our locations out there. Their demand is going to be dependent on the exact makeup of their customer base. And every location is different depending on whether you’re in California, Florida, New York. But we’re definitely seeing the impact on small businesses, as well as some larger businesses that we serve that have been forced to shut down. When you think about the customers that we serve, it’s the restaurants, it’s the hotels, it’s the tourist attractions, the ports, the laundry mats, you name it. These are local, many times small businesses that we have the pleasure to serve and that are struggling from the efforts to mitigate the spread of this virus.So what have we seen? So far in the third quarter, I guess through April, I would say we’ve seen upwards of 20% to 25% demand destruction in those sectors. As I said in my opening remarks, though, or towards the end of our remarks, the good thing has been the cold weather that never really showed up in the heating season, showed up in April and we were extremely pleased with the residential side of our performance so far in the third quarter here. And it’s actually been able to mask some of the impact of the commercial industrial side of the business.So, we…

Okay. Thanks for that color. I guess just also thinking about the longer term impacts of perhaps a recession and how that would impact your business, are you at all seeing any changes in payments from either residential or non-residential customers? And what are the payment programs that are currently in place for these customers? And I know that there are certain government protections around utility services as well.

So look, we are members of the local communities that we serve and our number one priority is to ensure that our customers are safe and healthy, and we help serve their needs. And we are very empathetic to the situation that they’re all in. And so we are working very closely with all of our customers, whether it’s businesses or the residential customer that may be strapped for cash as a result of job losses, and we’ve instituted a period of not taking some of the steps that we would otherwise take to ensure collection for a period of time. And we are working very closely with customers to make sure that we’re helping them get through this time, but also being cognizant of the fact that we have a business to run and we need to collect cash. We are seeing a slowdown in typical cash collections that you would see for this time of year. One of the things in the operating expenses that contributed to some slightly elevated expenses year-over-year was the fact that we did put aside a little bit of extra in the bad debt reserve just in case we start to see that deterioration in the aging profile of our receivables and we start to see slower collections.The good thing is we’re looking at it every single day, we are here for our customers. We want to help them get through this crisis. And at the same time, we need to get paid. And I think our sign of sympathy for them is going to ultimately benefit us in the long-term and we are going to continue to manage those receivables very, very tightly.

[Operator Instructions] No further questions coming in.

Okay, well thank you, John, for your help today. Again, thank you all. I hope you stay safe and healthy for you and your families. And we look forward to catching up with you again as we get more clarity and we report our third quarter results sometime in early August. So, thank youall.

Ladies and gentlemen, that does conclude your conference for today. Thank you for your participation. You may now disconnect.