OVERLAND PARK, Kan., Sept. 26, 2011 /PRNewswire via COMTEX/ -- Ferrellgas Partners, L.P. (NYSE: FGP), one of the nation's largest distributors of propane, today reported operating results for the fiscal fourth quarter ended July 31.
Revenues for the quarter rose 27% to $449.7 million from $353.8 million the year before while gross profit declined slightly to $126.3 million reflecting the impact of sharply higher commodity prices on margins and customer demand. Despite continued customer conservation caused by a 46% increase in the wholesale cost of propane, fourth-quarter propane sales volumes grew by more than 6%.
President and Chief Executive Officer Steve Wambold commented, "Despite the continued impact of rising wholesale propane prices, we remain focused on both retaining and growing our customer base as evidenced by our fourth quarter sales volumes." Wambold further commented, "We were very pleased to announce the acquisition of Economy Propane last week furthering our efforts to expand our operations both organically as well as through acquisition."
Common unitholders' interest in net loss for the quarter was in-line at $40.5 million, or $0.53 per common unit, compared to the prior year net loss of $40.1 million, or $0.58 per common unit reflecting the seasonality in operations.
Wambold noted, "In addition to profitable growth, we remain focused on expense control driving shareholder value. We were again successful this quarter in controlling our operating expenses in the face of increased volume sales."
Operating expense for the quarter of $100.6 million reflected a 5% reduction in expense per gallon sold while general and administrative and equipment lease expense, as expected increased slightly to $12.9 million and $3.6 million, respectively. Interest expense was reduced by more than 10% to $23.7 million, primarily reflecting the positive impact of recent debt re-financings. For the quarter, Adjusted EBITDA was $10.1 million compared with $15.0 million achieved the year before.
Wambold concluded, "We continue to be pro-active in the financial markets, announcing this morning the re-financing of our $400 million working capital facility. The renewed facility both extends our working capital line of credit until September 2016 and reflects favorable market borrowing rates which will continue to reduce our annual interest expense."
Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas, L.P., serves approximately one million customers in all 50 states, the District of Columbia and Puerto Rico. Ferrellgas employees indirectly own more than 20 million common units of the partnership through an employee stock ownership plan. More information about the partnership can be found online at www.ferrellgas.com.
Statements in this release concerning expectations for the future are forward-looking statements. A variety of known and unknown risks, uncertainties and other factors could cause results, performance and expectations to differ materially from anticipated results, performance and expectations. These risks, uncertainties and other factors are discussed in the Form 10-K of Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp., Ferrellgas, L.P., and Ferrellgas Finance Corp. for the fiscal year ended July 31, 2011, and other documents filed from time to time by these entities with the Securities and Exchange Commission.
Contact: Tom Colvin, Investor Relations, (913) 661-1530 Scott Brockelmeyer, Media Relations, (913) 661-1830
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FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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(in thousands, except unit data)
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(unaudited)
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ASSETS
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July 31, 2011
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July 31, 2010
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Current Assets:
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Cash and cash equivalents
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$ 7,437
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$ 11,401
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Accounts and notes receivable, net (including $112,509 and $0 of
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accounts receivable pledged as collateral at July 31, 2011
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and July 31, 2010, respectively)
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159,532
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89,234
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Inventories
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136,139
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166,911
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Prepaid expenses and other current assets
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23,885
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13,842
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Total Current Assets
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326,993
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281,388
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Property, plant and equipment, net
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642,205
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652,768
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Goodwill
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248,944
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248,939
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Intangible assets, net
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204,136
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221,057
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Other assets, net
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38,308
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38,199
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Total Assets
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$ 1,460,586
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$ 1,442,351
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LIABILITIES AND PARTNERS' CAPITAL
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Current Liabilities:
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Accounts payable
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$ 67,541
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$ 48,658
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Short term borrowings
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64,927
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67,203
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Collateralized note payable
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61,000
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-
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Other current liabilities (a)
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104,813
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108,054
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Total Current Liabilities
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298,281
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223,915
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Long-term debt (a)
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1,050,920
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1,111,088
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Other liabilities
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23,068
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21,446
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Contingencies and commitments
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-
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-
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Partners' Capital:
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Common unitholders (75,966,353 and 69,521,818 units
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outstanding at July 31, 2011 and July 31, 2010, respectively)
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139,614
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141,281
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General partner unitholder (767,337 and 702,241 units
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outstanding at July 31, 2011 and July 31, 2010, respectively)
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(58,660)
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(58,644)
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Accumulated other comprehensive income (loss)
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4,633
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(415)
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Total Ferrellgas Partners, L.P. Partners' Capital
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85,587
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82,222
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Noncontrolling Interest
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2,730
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3,680
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Total Partners' Capital
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88,317
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85,902
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Total Liabilities and Partners' Capital
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$ 1,460,586
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$ 1,442,351
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(a) The principal difference between the Ferrellgas Partners, L.P. balance sheet and that of Ferrellgas, L.P., is $182 million of 8.625% notes
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which are liabilities of Ferrellgas Partners, L.P. and not of Ferrellgas, L.P.
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FERRELLGAS PARTNERS, L.P. AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF EARNINGS
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FOR THE THREE AND TWELVE MONTHS ENDED JULY 31, 2011 AND 2010
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(in thousands, except per unit data)
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(unaudited)
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Three months ended
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Twelve months ended
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July 31
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July 31
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2011
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2010
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2011
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2010
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Revenues:
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Propane and other gas liquids sales
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$ 421,746
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$ 312,280
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$ 2,212,257
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$ 1,900,318
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Other
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27,912
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41,568
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210,958
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198,742
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Total revenues
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449,658
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353,848
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2,423,215
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2,099,060
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Cost of product sold:
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Propane and other gas liquids sales
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310,341
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197,318
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1,609,344
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1,257,534
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Other
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13,038
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26,118
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124,470
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108,638
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Gross profit
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126,279
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130,412
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689,401
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732,888
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Operating expense
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100,646
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100,012
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407,281
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406,860
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Depreciation and amortization expense
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22,091
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20,469
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82,486
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82,491
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General and administrative expense
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12,889
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12,114
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52,160
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46,095
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Equipment lease expense
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3,593
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3,281
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14,435
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13,441
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Non-cash employee stock ownership plan compensation charge
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2,190
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2,361
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10,157
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9,322
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Non-cash stock and unit-based compensation charge (b)
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(221)
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3,643
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13,488
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7,831
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Loss on disposal of assets and other
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2,799
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3,005
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3,633
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8,485
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Operating income (loss)
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(17,708)
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(14,473)
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105,761
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158,363
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Interest expense
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(23,680)
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(26,440)
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(101,885)
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(101,284)
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Loss on extinguishment of debt
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-
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-
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(46,962)
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(20,716)
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Other income (expense), net
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58
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(23)
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567
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(1,108)
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Earnings (loss) before income taxes
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(41,330)
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(40,936)
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(42,519)
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35,255
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Income tax expense (benefit)
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(47)
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(90)
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1,241
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1,916
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Net earnings (loss)
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(41,283)
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(40,846)
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(43,760)
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33,339
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Net earnings (loss) attributable to noncontrolling interest (a)
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(376)
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(346)
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(112)
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630
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Net earnings (loss) attributable to Ferrellgas Partners, L.P.
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(40,907)
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(40,500)
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(43,648)
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32,709
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Less: General partner's interest in net earnings (loss)
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(409)
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(405)
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(436)
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327
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Common unitholders' interest in net earnings (loss)
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$ (40,498)
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$ (40,095)
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$ (43,212)
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$ 32,382
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Earnings (loss) Per Unit
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Basic and diluted net earnings (loss) per common unitholders' interest
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$ (0.53)
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$ (0.58)
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$ (0.60)
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$ 0.47
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Weighted average common units outstanding
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75,907.6
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69,521.8
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72,313.6
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69,241.7
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Supplemental Data and Reconciliation of Non-GAAP Items:
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Three months ended
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Twelve months ended
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July 31
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July 31
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2011
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2010
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2011
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2010
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Net earnings (loss) attributable to Ferrellgas Partners, L.P.
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$ (40,907)
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$ (40,500)
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$ (43,648)
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$ 32,709
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Income tax expense (benefit)
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(47)
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(90)
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1,241
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1,916
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Interest expense
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23,680
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26,440
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101,885
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101,284
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Depreciation and amortization expense
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22,091
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20,469
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82,486
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82,491
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EBITDA
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4,817
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6,319
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141,964
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218,400
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Loss on extinguishment of debt
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-
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-
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46,962
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20,716
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Non-cash employee stock ownership plan compensation charge
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2,190
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2,361
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10,157
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9,322
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Non-cash stock and unit-based compensation charge (b)
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(221)
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3,643
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13,488
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7,831
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Loss on disposal of assets and other
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2,799
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3,005
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3,633
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8,485
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Other income (expense), net
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(58)
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23
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(567)
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1,108
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Litigation reserve and related legal fees
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987
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-
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12,120
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-
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Net earnings (loss) attributable to noncontrolling interest
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(376)
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(346)
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(112)
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630
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Adjusted EBITDA (c)
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10,138
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15,005
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227,645
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266,492
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Net cash interest expense (d)
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(21,960)
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(21,813)
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(93,353)
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(94,914)
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Maintenance capital expenditures (e)
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(3,516)
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(4,385)
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(15,437)
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(19,968)
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Cash paid for taxes
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(557)
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(608)
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(591)
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(1,550)
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Proceeds from asset sales
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1,721
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4,623
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5,994
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9,220
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Distributable cash flow to equity investors (f)
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$ (14,174)
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$ (7,178)
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$ 124,258
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$ 159,280
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Propane gallons sales
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Retail - Sales to End Users
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95,611
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90,058
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655,408
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680,963
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Wholesale - Sales to Resellers
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54,902
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51,689
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244,275
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241,561
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Total propane gallons sales
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150,513
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141,747
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899,683
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922,524
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(a) Amounts allocated to the general partner for its 1.0101% interest in the operating partnership, Ferrellgas, L.P.
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(b) Non-cash stock and unit-based compensation charges consist of the following:
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Three months ended
|
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Twelve months ended
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July 31
|
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July 31
|
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|
2011
|
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2010
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2011
|
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2010
|
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Operating expense
|
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$ (75)
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$ 1,002
|
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$ 3,757
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$ 2,154
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General and administrative expense
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(146)
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2,641
|
|
9,731
|
|
5,677
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Total
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$ (221)
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$ 3,643
|
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$ 13,488
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$ 7,831
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(c) Adjusted EBITDA is calculated as earnings (loss) before income tax expense, interest expense, depreciation and amortization expense, loss
on extinguishment of debt, non-cash employee stock ownership plan compensation charge, non-cash stock and unit-based compensation
charge, loss on disposal of assets and other, other income (expense), net, a litigation reserve and related legal fees and net earnings (loss)
attributable to noncontrolling interest. Management believes the presentation of this measure is relevant and useful because it allows
investors to view the partnership's performance in a manner similar to the method management uses, adjusted for items management
believes makes it easier to compare its results with other companies that have different financing and capital structures. This method of
calculating Adjusted EBITDA may not be consistent with that of other companies and should be viewed in conjunction with measurements
that are computed in accordance with GAAP.
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(d) Net cash interest expense is the sum of interest expense less non-cash interest expense and other income (expense), net. This amount
includes interest expense related to the accounts receivable securitization facility.
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(e) Maintenance capital expenditures include capitalized expenditures for betterment and replacement of property, plant and equipment.
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(f) Management considers Distributable cash flow to equity investors a meaningful non-GAAP measure of the partnership's ability to declare
and pay quarterly distributions to common unitholders. Distributable cash flow to equity investors, as management defines it, may not be
comparable to distributable cash flow or similarly titled measures used by other corporations and partnerships.
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SOURCE Ferrellgas Partners, L.P.
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