OVERLAND PARK, Kan., June 6, 2013 /PRNewswire/ -- Ferrellgas Partners, L.P. (NYSE:FGP), one of the nation's largest distributors of propane, today reported record Adjusted EBITDA, distributable cash flow and gross profit for its fiscal third quarter ended April 30, primarily attributable to increased propane sales volumes, margins and improved operating efficiencies.
Adjusted EBITDA increased 39% to $98.5 million from $70.8 million in the prior year quarter. Distributable cash flow to equity investors rose 59% to $76.2 million from $48.0 million a year ago. Through April, the partnership's trailing 12 month distributable cash flow coverage stands at a healthy 1.08x.
President and CEO Steve Wambold pointed out, "We are extremely proud of our operational and financial performance this year as it is indicative of what our operations are capable of producing for investors in a more normal operating environment." Wambold further remarked, "Our positive momentum has continued into our fiscal fourth quarter. As a result, we are raising our Adjusted EBITDA guidance for fiscal 2013 to a range of $270 million to $275 million, producing a distributable cash flow coverage to equity investors of greater than 1.1x." Adjusted EBITDA for the trailing 12-months was $264.3 million. Adjusted EBITDA in fiscal 2012 was $193.1 million.
Wambold continued, "Especially encouraging this quarter was that our propane sales volumes grew 18% over the prior year quarter to 267.1 million gallons. These sales volumes not only reflect temperatures that were 6 % colder than normal, but also our organic growth efforts of recent years."
Third-quarter revenues decreased modestly to $603.0 million from $629.6 million on lower sales prices to consumers, while the partnership's gross profit climbed 25% to $223.1 million on increased sales and improved margins. Fiscal third quarter gross profit margins improved $0.05 cents per gallon sold, from $0.79 to $0.84.
Third-quarter operating expense increased to $107.2 million, or $0.40 per gallon sold, from $95.8 million, or $0.42 per gallon sold, on increased propane sales volumes and performance based incentive accruals. Excluding performance based incentives, operating expenses improved by 12% from $0.42 per gallon sold to $0.37 per gallon sold, which was made possible by the partnership's efficiency initiatives. Similarly, general and administrative expense increased to $13.4 million from $9.0 million as a result of performance based incentives. Excluding these incentives, G&A expense decreased to $8.6 million from $8.9 million.
Equipment lease expense was $4.1 million, compared with $3.8 million the year before. Interest expense again declined to $22.1 million from $23.5 million a year ago, reflecting lower borrowing rates.
Net earnings more than doubled to $45.2 million, or $0.56 per unit, from $21.l million, or $0.26 per unit. Wambold noted, "Our Blue Rhino operations are well positioned to capitalize on the all-important grilling season, adding more than 950 selling locations since this time last year. The acquisition environment continues to be quite attractive, and we remain interested in complementary acquisitions, including some diversification, as indicated by the purchase of Mr. Bar-B-Q during the third quarter." He added, "We focus on deals that are immediately accretive to earnings, and all our recent acquisitions have handily exceeded their proformas."
For the nine months, gross profit was up 17%, primarily attributable to margin improvement and increased sales volumes. Propane sales volumes grew 2% to 745.1 million on nationwide temperatures that were 4% warmer than normal. Adjusted EBITDA rose 41% and distributable cash flow climbed 79%. Consistent with the quarter, operating expense was impacted by both increased sales volumes and performance based incentives. After adjusting for the impact of performance based incentives, operating expense was practically unchanged, $297.8 million versus $298.7 million, as our operating efficiencies offset the incremental cost associated with increased sales volumes. General and administrative expense, excluding the impact of performance based incentives declined to $25.5 million from $28.4 million. Net earnings surged to $86.2 million, or $1.07 per unit, from $25.0 million, or $0.32 per unit.
Ferrellgas Partners, L.P., through its operating partnership, Ferrellgas, L.P., serves customers in all 50 states, the District of Columbia and Puerto Rico. Ferrellgas employees indirectly own more than 21 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, 2012, 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
|
|
CONSOLIDATED BALANCE SHEETS
|
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(in thousands, except unit data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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ASSETS
|
|
April 30, 2013
|
|
July 31, 2012
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ 12,260
|
|
$ 8,429
|
|
Accounts and notes receivable, net (including $183,957 and $121,812 of accounts receivable pledged as collateral at April 30, 2013 and July 31, 2012, respectively)
|
|
198,188
|
|
124,004
|
|
Inventories
|
|
107,210
|
|
127,598
|
|
Prepaid expenses and other current assets
|
|
23,384
|
|
29,315
|
|
Total Current Assets
|
|
341,042
|
|
289,346
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
604,716
|
|
626,551
|
|
Goodwill
|
|
253,286
|
|
248,944
|
|
Intangible assets, net
|
|
195,191
|
|
189,118
|
|
Other assets, net
|
|
46,391
|
|
43,320
|
|
Total Assets
|
|
$ 1,440,626
|
|
$ 1,397,279
|
|
|
|
|
|
|
|
|
|
|
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LIABILITIES AND PARTNERS' DEFICIT
|
|
|
|
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|
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|
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|
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Current Liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$ 70,285
|
|
$ 47,824
|
|
Short-term borrowings
|
|
21,450
|
|
95,730
|
|
Collateralized note payable
|
|
116,000
|
|
74,000
|
|
Other current liabilities
|
|
123,456
|
|
122,667
|
|
Total Current Liabilities
|
|
331,191
|
|
340,221
|
|
|
|
|
|
|
Long-term debt (a)
|
|
1,106,669
|
|
1,059,085
|
|
Other liabilities
|
|
31,727
|
|
25,499
|
|
Contingencies and commitments
|
|
-
|
|
-
|
|
|
|
|
|
|
Partners' Deficit:
|
|
|
|
|
|
Common unitholders (79,070,819 and 79,006,619 units outstanding at April 30, 2013 and July 31, 2012, respectively)
|
|
31,047
|
|
43,701
|
|
General partner unitholder (798,695 and 798,047 units outstanding at April 30, 2013 and July 31, 2012, respectively)
|
|
(59,757)
|
|
(59,630)
|
|
Accumulated other comprehensive loss
|
|
(1,841)
|
|
(13,159)
|
|
Total Ferrellgas Partners, L.P. Partners' Deficit
|
|
(30,551)
|
|
(29,088)
|
|
Noncontrolling Interest
|
|
1,590
|
|
1,562
|
|
Total Partners' Deficit
|
|
(28,961)
|
|
(27,526)
|
|
Total Liabilities and Partners' Deficit
|
|
$ 1,440,626
|
|
$ 1,397,279
|
|
|
|
|
|
|
|
(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 which are liabilities of Ferrellgas Partners, L.P. and not of Ferrellgas, L.P.
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|
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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, NINE AND TWELVE MONTHS ENDED APRIL 30, 2013 AND 2012
|
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(in thousands, except per unit data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
Twelve months ended
|
|
|
April 30
|
|
April 30
|
|
April 30
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Propane and other gas liquids sales
|
|
$ 508,408
|
|
$ 556,644
|
|
$ 1,426,763
|
|
$ 1,850,430
|
|
$ 1,737,278
|
|
$ 2,272,176
|
|
Other
|
|
94,612
|
|
72,975
|
|
198,031
|
|
146,887
|
|
229,291
|
|
174,799
|
|
Total revenues
|
|
603,020
|
|
629,619
|
|
1,624,794
|
|
1,997,317
|
|
1,966,569
|
|
2,446,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sold:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Propane and other gas liquids sales
|
|
313,207
|
|
401,521
|
|
903,100
|
|
1,405,243
|
|
1,099,743
|
|
1,715,584
|
|
Other
|
|
66,714
|
|
49,117
|
|
123,348
|
|
80,211
|
|
138,460
|
|
93,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
223,099
|
|
178,981
|
|
598,346
|
|
511,863
|
|
728,366
|
|
638,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense (including $126 of severance charges for the twelve months ended April 30, 2013, and $277, $500 and $500 for the three, nine and twelve months ended April 30, 2012, respectively)
|
|
107,188
|
|
95,822
|
|
309,221
|
|
298,974
|
|
409,227
|
|
399,620
|
|
Depreciation and amortization expense
|
|
20,896
|
|
21,123
|
|
62,522
|
|
62,839
|
|
83,524
|
|
84,930
|
|
General and administrative expense (including $166 of severance charges for the twelve months ended April 30, 2013, and $113, $263 and $263 for the three, nine and twelve months ended April 30, 2012, respectively)
|
|
13,432
|
|
8,963
|
|
32,396
|
|
28,671
|
|
40,841
|
|
41,560
|
|
Equipment lease expense
|
|
4,098
|
|
3,789
|
|
11,848
|
|
10,846
|
|
15,650
|
|
14,439
|
|
Non-cash employee stock ownership plan compensation charge
|
|
2,824
|
|
2,203
|
|
12,673
|
|
6,719
|
|
15,394
|
|
8,909
|
|
Non-cash stock and unit-based compensation charge (b)
|
|
2,222
|
|
385
|
|
8,434
|
|
4,867
|
|
12,410
|
|
4,646
|
|
Loss on disposal of assets and other
|
|
3,337
|
|
1,220
|
|
5,728
|
|
2,052
|
|
9,711
|
|
4,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
69,102
|
|
45,476
|
|
155,524
|
|
96,895
|
|
141,609
|
|
79,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(22,084)
|
|
(23,471)
|
|
(67,138)
|
|
(70,904)
|
|
(89,488)
|
|
(94,584)
|
|
Other income, net
|
|
185
|
|
201
|
|
517
|
|
248
|
|
775
|
|
306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income taxes
|
|
47,203
|
|
22,206
|
|
88,903
|
|
26,239
|
|
52,896
|
|
(15,091)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
2,023
|
|
1,144
|
|
2,676
|
|
1,285
|
|
2,519
|
|
1,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
45,180
|
|
21,062
|
|
86,227
|
|
24,954
|
|
50,377
|
|
(16,329)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to noncontrolling interest (a)
|
|
499
|
|
255
|
|
997
|
|
377
|
|
676
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to Ferrellgas Partners, L.P.
|
|
44,681
|
|
20,807
|
|
85,230
|
|
24,577
|
|
49,701
|
|
(16,330)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: General partner's interest in net earnings (loss)
|
|
447
|
|
208
|
|
852
|
|
246
|
|
497
|
|
(163)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unitholders' interest in net earnings (loss)
|
|
$ 44,234
|
|
$ 20,599
|
|
$ 84,378
|
|
$ 24,331
|
|
$ 49,204
|
|
$ (16,167)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) Per Unit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net earnings (loss) per common unitholders' interest
|
|
$ 0.56
|
|
$ 0.26
|
|
$ 1.07
|
|
$ 0.32
|
|
$ 0.62
|
|
$ (0.21)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common units outstanding
|
|
79,054.4
|
|
78,960.0
|
|
79,027.5
|
|
77,095.8
|
|
79,018.5
|
|
76,797.1
|
|
Supplemental Data and Reconciliation of Non-GAAP Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
Twelve months ended
|
|
|
April 30
|
|
April 30
|
|
April 30
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to Ferrellgas Partners, L.P.
|
|
$ 44,681
|
|
$ 20,807
|
|
$ 85,230
|
|
$ 24,577
|
|
$ 49,701
|
|
$ (16,330)
|
|
Income tax expense
|
|
2,023
|
|
1,144
|
|
2,676
|
|
1,285
|
|
2,519
|
|
1,238
|
|
Interest expense
|
|
22,084
|
|
23,471
|
|
67,138
|
|
70,904
|
|
89,488
|
|
94,584
|
|
Depreciation and amortization expense
|
|
20,896
|
|
21,123
|
|
62,522
|
|
62,839
|
|
83,524
|
|
84,930
|
|
EBITDA
|
|
89,684
|
|
66,545
|
|
217,566
|
|
159,605
|
|
225,232
|
|
164,422
|
|
Non-cash employee stock ownership plan compensation charge
|
|
2,824
|
|
2,203
|
|
12,673
|
|
6,719
|
|
15,394
|
|
8,909
|
|
Non-cash stock and unit-based compensation charge (b)
|
|
2,222
|
|
385
|
|
8,434
|
|
4,867
|
|
12,410
|
|
4,646
|
|
Loss on disposal of assets and other
|
|
3,337
|
|
1,220
|
|
5,728
|
|
2,052
|
|
9,711
|
|
4,851
|
|
Other income, net
|
|
(185)
|
|
(201)
|
|
(517)
|
|
(248)
|
|
(775)
|
|
(306)
|
|
Severance costs
|
|
-
|
|
390
|
|
-
|
|
763
|
|
292
|
|
763
|
|
Nonrecurring litigation reserve and related legal fees
|
|
113
|
|
-
|
|
1,338
|
|
892
|
|
1,338
|
|
1,879
|
|
Net earnings attributable to noncontrolling interest
|
|
499
|
|
255
|
|
997
|
|
377
|
|
676
|
|
1
|
|
Adjusted EBITDA (c)
|
|
98,494
|
|
70,797
|
|
246,219
|
|
175,027
|
|
264,278
|
|
185,165
|
|
Net cash interest expense (d)
|
|
(20,631)
|
|
(22,018)
|
|
(62,829)
|
|
(66,773)
|
|
(83,656)
|
|
(88,733)
|
|
Maintenance capital expenditures (e)
|
|
(3,466)
|
|
(2,680)
|
|
(10,996)
|
|
(11,518)
|
|
(15,522)
|
|
(15,034)
|
|
Cash paid for taxes
|
|
(43)
|
|
(10)
|
|
(88)
|
|
(100)
|
|
(752)
|
|
(657)
|
|
Proceeds from asset sales
|
|
1,850
|
|
1,940
|
|
8,013
|
|
4,314
|
|
9,441
|
|
6,035
|
|
Distributable cash flow to equity investors (f)
|
|
$ 76,204
|
|
$ 48,029
|
|
$ 180,319
|
|
$ 100,950
|
|
$ 173,789
|
|
$ 86,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Propane gallons sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail - Sales to End Users
|
|
196,009
|
|
167,462
|
|
542,688
|
|
524,287
|
|
637,719
|
|
619,898
|
|
Wholesale - Sales to Resellers
|
|
71,113
|
|
58,421
|
|
202,396
|
|
202,971
|
|
258,237
|
|
257,873
|
|
Total propane gallons sales
|
|
267,122
|
|
225,883
|
|
745,084
|
|
727,258
|
|
895,956
|
|
877,771
|
|
|
|
|
|
(a)
|
Amounts allocated to the general partner for its 1.0101% interest in the operating partnership, Ferrellgas, L.P.
|
|
(b)
|
Non-cash stock and unit-based compensation charges consist of the following:
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
Twelve months ended
|
|
|
April 30
|
|
April 30
|
|
April 30
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Operating expense
|
|
$ 422
|
|
$ 112
|
|
$ 1,726
|
|
$ 1,952
|
|
$ 2,521
|
|
$ 1,877
|
|
General and administrative expense
|
|
1,800
|
|
273
|
|
6,708
|
|
2,915
|
|
9,889
|
|
2,769
|
|
Total
|
|
$ 2,222
|
|
$ 385
|
|
$ 8,434
|
|
$ 4,867
|
|
$ 12,410
|
|
$ 4,646
|
|
|
(c)
|
Adjusted EBITDA is calculated as earnings (loss) before income tax expense, interest expense, depreciation and amortization expense, 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, net, serverance costs, nonrecurring litigation reserve and related legal fees and net earnings 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 inaccordance with GAAP.
|
|
(d)
|
Net cash interest expense is the sum of interest expense less non-cash interest expense and other income, net. This amount includes interest expense related to the accounts receivable securitization facility.
|
|
(e)
|
Maintenance capital expenditures include capitalized expenditures for betterment and replacement of property, plant and equipment.
|
|
(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.
|
|
SOURCE Ferrellgas Partners, L.P.
|
