Ferrellgas Partners, L.P. Reports Results for First Quarter Fiscal 2016
December 09 2015 - 6:00AM
Strong Performance From Bridger With Meaningful
Progress on Acquisition Integration Ferrellgas Continues Successful
Ongoing Transformation Into a Diversified Midstream MLP
Ferrellgas Partners, L.P. (NYSE:FGP) today announced Adjusted
EBITDA of $48.9 million for the first quarter of fiscal 2016 ended
October 31, up 42% from $34.4 million in the same quarter of last
year, due to strong results from the Bridger acquisition, which the
partnership completed in June 2015. Distributable Cash Flow (DCF)
to equity investors for the quarter was $11.2 million, producing
DCF coverage of 1.08x for the trailing twelve month period.
President and Chief Executive Officer Stephen L. Wambold
commented, “We are excited to report a solid first quarter that
represents our first full quarter of combined results following the
completed acquisition of Bridger and officially welcoming the
organization into the Ferrellgas family. We continue to integrate
Bridger, which will serve as a platform for continued midstream
growth and diversification. We are also encouraged by the continued
solid financial and operational performance of our Propane segment.
While persisting warmer nationwide temperatures during our first
fiscal quarter put pressure on our Propane segment’s results, our
flexibility, focus on maintaining strong margins and commitment to
containing retail expenses allowed us to offset the unfavorable
operating environment.”
Mr. Wambold concluded, “We are more excited than ever about the
future of Ferrellgas and the strong pipeline of acquisition and
organic development opportunities. With our acquisition of Bridger
we have established a firm foundation for a powerful midstream
growth platform and we expect to continue developing our already
diverse footprint and extensive customer base in high-growth
regions over the course of fiscal 2016 and beyond.”
Propane margin cents per gallon continued to benefit from lower
wholesale commodity prices, and during the first fiscal quarter,
prices were 57% lower than those of the same quarter in fiscal
2015. Strong margin cents per gallon and lower operating expenses
in the Propane and related equipment sales segment helped minimize
the effect of warmer temperatures in the more highly concentrated
geographic areas Ferrellgas serves. Temperatures were 31% warmer
than normal and 13% warmer than prior year for the first fiscal
quarter.
Adjusted EBITDA from the Midstream - Crude Oil Logistics segment
was $24.8 million during the first fiscal quarter, driven
exclusively by the Bridger acquisition which exceeded management’s
expectations for the first full fiscal quarter subsequent to the
closing of the acquisition. These results reflect
management’s focus on expense controls as well as Bridger’s strong
customer relationships and contractual agreements which helped
navigate a volatile commodity price environment. The
partnership is on pace to generate $100 million of adjusted EBITDA
in this segment for full-year fiscal 2016.
Operating expense for the first quarter increased to $115.0
million from $102.9 million in the first fiscal quarter of 2015,
primarily due to the additional operating expenses associated with
the Bridger acquisition. General and administrative expense rose to
$12.2 million from $10.8 million in the fiscal first quarter of
2015, also as a result of the acquisition.
Interest expense increased to $33.8 million for the first fiscal
quarter from $23.9 million a year ago, reflecting increased
borrowings to fund acquisition and growth capital expenditures. The
seasonal Net loss for the quarter was $80.6 million, or $0.79 per
common unit, compared to $33.2 million, or $0.40 per common unit in
the prior year quarter. The increase in seasonal Net loss is due in
part to a one-time, non-cash goodwill write-off related to the
partnership’s midstream water solutions operations and a one-time
loss on trucks held for sale.
Ferrellgas today also reaffirmed its previously provided
estimates for full-year fiscal 2016 Adjusted EBITDA of $400 million
to $420 million based on continued confidence in the partnership’s
traditional retail operations and expected strong contributions
from Bridger.
About Ferrellgas
Ferrellgas Partners, L.P., through its operating partnership,
Ferrellgas, L.P., and subsidiaries, serves propane customers in all
50 states, the District of Columbia, and Puerto Rico, and provides
midstream services to major energy companies in the United States.
Ferrellgas employees indirectly own 22.8 million common units of
the partnership, through an employee stock ownership plan.
Ferrellgas Partners, L.P. filed a Form 10-K with the Securities and
Exchange Commission on September 29, 2015. Investors can request a
hard copy of this filing free of charge and obtain more information
about the partnership 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, 2015, in the Form 10-Q of Ferrellgas Partners, L.P., Ferrellgas
Partners Finance Corp., Ferrellgas, L.P., and Ferrellgas Finance
Corp. for the quarter ended October 31, 2015 and in other documents
filed from time to time by these entities with the Securities and
Exchange Commission.
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 |
|
October 31, 2015 |
|
July 31, 2015 |
|
|
|
|
|
|
|
|
|
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|
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Current
Assets: |
|
|
|
|
|
|
|
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|
|
Cash and cash equivalents |
|
$ |
8,892 |
|
|
$ |
7,652 |
|
|
|
|
|
|
|
|
Accounts and notes receivable, net
(including $113,792 and 123,791 of |
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|
accounts receivable pledged as
collateral at October 31, 2015 |
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|
|
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and July 31, 2015,
respectively) |
|
|
178,678 |
|
|
|
196,918 |
|
|
|
|
|
|
|
|
Inventories |
|
|
96,079 |
|
|
|
96,754 |
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|
|
|
|
|
|
|
Prepaid expenses and other current
assets |
|
|
57,556 |
|
|
|
64,285 |
|
|
|
|
|
|
|
|
Total Current
Assets |
|
|
341,205 |
|
|
|
365,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net |
|
|
941,283 |
|
|
|
965,217 |
|
|
|
|
|
|
|
|
Goodwill |
|
|
459,615 |
|
|
|
478,747 |
|
|
|
|
|
|
|
|
Intangible assets, net |
|
|
562,326 |
|
|
|
580,043 |
|
|
|
|
|
|
|
|
Other
assets, net |
|
|
72,917 |
|
|
|
74,440 |
|
|
|
|
|
|
|
|
Assets
held for sale |
|
|
8,840 |
|
|
|
- |
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
2,386,186 |
|
|
$ |
2,464,056 |
|
|
|
|
|
|
|
|
|
|
|
|
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LIABILITIES AND PARTNERS' CAPITAL |
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Current
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
63,553 |
|
|
$ |
83,974 |
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
95,391 |
|
|
|
75,319 |
|
|
|
|
|
|
|
|
Collateralized note payable |
|
|
68,000 |
|
|
|
70,000 |
|
|
|
|
|
|
|
|
Other current liabilities |
|
|
200,964 |
|
|
|
180,687 |
|
|
|
|
|
|
|
|
Total Current
Liabilities |
|
|
427,908 |
|
|
|
409,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Long-term debt (a) |
|
|
1,823,182 |
|
|
|
1,804,392 |
|
|
|
|
|
|
|
|
Other liabilities |
|
|
38,458 |
|
|
|
41,975 |
|
|
|
|
|
|
|
|
Contingencies and
commitments |
|
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|
|
|
|
|
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|
|
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Partners' Capital: |
|
|
|
|
|
|
|
|
|
|
|
Common unitholders (100,376,789
units outstanding at both |
|
|
|
|
|
|
|
|
|
|
|
October 31, 2015 and July 31,
2015) |
|
|
182,403 |
|
|
|
299,730 |
|
|
|
|
|
|
|
|
General partner unitholder
(1,013,907 units outstanding at both |
|
|
|
|
|
|
|
|
|
|
|
October 31, 2015 and July 31,
2015) |
|
|
(58,228 |
) |
|
|
(57,042 |
) |
|
|
|
|
|
|
|
Accumulated other comprehensive
loss |
|
|
(30,411 |
) |
|
|
(38,934 |
) |
|
|
|
|
|
|
|
Total Ferrellgas Partners,
L.P. Partners' Capital |
|
|
93,764 |
|
|
|
203,754 |
|
|
|
|
|
|
|
|
Noncontrolling Interest |
|
|
2,874 |
|
|
|
3,955 |
|
|
|
|
|
|
|
|
Total Partners'
Capital |
|
|
96,638 |
|
|
|
207,709 |
|
|
|
|
|
|
|
|
Total Liabilities and
Partners' Capital |
|
$ |
2,386,186 |
|
|
$ |
2,464,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
FERRELLGAS PARTNERS, L.P. AND
SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF
EARNINGS |
|
FOR THE THREE AND TWELVE MONTHS ENDED OCTOBER
31, 2015 AND 2014 |
|
(in thousands, except per unit
data) |
|
(unaudited) |
|
|
|
Three months
ended |
|
|
Twelve months ended |
|
|
|
October 31 |
|
|
October 31 |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
Propane and other gas liquids
sales |
|
$ |
245,301 |
|
|
$ |
394,361 |
|
|
|
$ |
1,507,956 |
|
|
$ |
2,159,481 |
|
|
Midstream operations |
|
|
193,670 |
|
|
|
7,916 |
|
|
|
|
292,943 |
|
|
|
15,351 |
|
|
Other |
|
|
32,175 |
|
|
|
41,078 |
|
|
|
|
251,282 |
|
|
|
259,353 |
|
|
Total
revenues |
|
|
471,146 |
|
|
|
443,355 |
|
|
|
|
2,052,181 |
|
|
|
2,434,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sold: |
|
|
|
|
|
|
|
|
|
|
Propane and other gas liquids
sales |
|
|
121,751 |
|
|
|
264,814 |
|
|
|
|
834,161 |
|
|
|
1,462,448 |
|
|
Midstream operations |
|
|
153,604 |
|
|
|
1,968 |
|
|
|
|
228,226 |
|
|
|
3,938 |
|
|
Other |
|
|
14,448 |
|
|
|
21,892 |
|
|
|
|
163,253 |
|
|
|
164,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
181,343 |
|
|
|
154,681 |
|
|
|
|
826,541 |
|
|
|
803,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense |
|
|
114,981 |
|
|
|
102,883 |
|
|
|
|
444,380 |
|
|
|
446,110 |
|
|
Depreciation and amortization expense |
|
|
36,979 |
|
|
|
23,309 |
|
|
|
|
112,249 |
|
|
|
87,296 |
|
|
General
and administrative expense |
|
|
12,240 |
|
|
|
10,828 |
|
|
|
|
57,843 |
|
|
|
46,030 |
|
|
Equipment lease expense |
|
|
7,032 |
|
|
|
5,532 |
|
|
|
|
25,773 |
|
|
|
19,211 |
|
|
Non-cash
employee stock ownership plan compensation charge |
|
|
5,256 |
|
|
|
4,374 |
|
|
|
|
25,595 |
|
|
|
23,120 |
|
|
Non-cash
stock-based compensation charge (a) |
|
|
8,122 |
|
|
|
16,112 |
|
|
|
|
17,992 |
|
|
|
36,189 |
|
|
Goodwill
impairment charge |
|
|
29,316 |
|
|
|
- |
|
|
|
|
29,316 |
|
|
|
- |
|
|
Loss on
disposal of assets |
|
|
14,917 |
|
|
|
961 |
|
|
|
|
21,055 |
|
|
|
7,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
(47,500 |
) |
|
|
(9,318 |
) |
|
|
|
92,338 |
|
|
|
138,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(33,788 |
) |
|
|
(23,912 |
) |
|
|
|
(110,272 |
) |
|
|
(88,321 |
) |
|
Loss on
extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
(20,901 |
) |
|
Other
income (expense), net |
|
|
(122 |
) |
|
|
(449 |
) |
|
|
|
(23 |
) |
|
|
(1,144 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income taxes |
|
|
(81,410 |
) |
|
|
(33,679 |
) |
|
|
|
(17,957 |
) |
|
|
27,659 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
tax expense (benefit) |
|
|
(844 |
) |
|
|
(510 |
) |
|
|
|
(649 |
) |
|
|
2,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
|
|
(80,566 |
) |
|
|
(33,169 |
) |
|
|
|
(17,308 |
) |
|
|
25,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss) attributable to noncontrolling interest (b) |
|
|
(773 |
) |
|
|
(294 |
) |
|
|
|
(10 |
) |
|
|
424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss) attributable to Ferrellgas Partners, L.P. |
|
|
(79,793 |
) |
|
|
(32,875 |
) |
|
|
|
(17,298 |
) |
|
|
25,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
General partner's interest in net earnings (loss) |
|
|
(798 |
) |
|
|
(329 |
) |
|
|
|
(173 |
) |
|
|
252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unitholders' interest in net earnings
(loss) |
|
$ |
(78,995 |
) |
|
$ |
(32,546 |
) |
|
|
$ |
(17,125 |
) |
|
$ |
24,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) Per Unit |
|
|
|
|
|
|
|
|
|
|
Basic
and diluted net earnings (loss) per common unitholders'
interest |
|
$ |
(0.79 |
) |
|
$ |
(0.40 |
) |
|
|
$ |
(0.19 |
) |
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common units outstanding |
|
|
100,376.8 |
|
|
|
82,179.7 |
|
|
|
|
89,232.9 |
|
|
|
80,433.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data and Reconciliation of
Non-GAAP Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
|
Twelve months ended |
|
|
|
October 31 |
|
|
October 31 |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to Ferrellgas Partners,
L.P. |
|
$ |
(79,793 |
) |
|
$ |
(32,875 |
) |
|
|
$ |
(17,298 |
) |
|
$ |
25,179 |
|
|
Income tax expense (benefit) |
|
|
(844 |
) |
|
|
(510 |
) |
|
|
|
(649 |
) |
|
|
2,056 |
|
|
Interest expense |
|
|
33,788 |
|
|
|
23,912 |
|
|
|
|
110,272 |
|
|
|
88,321 |
|
|
Depreciation and amortization
expense |
|
|
36,979 |
|
|
|
23,309 |
|
|
|
|
112,249 |
|
|
|
87,296 |
|
|
EBITDA |
|
|
(9,870 |
) |
|
|
13,836 |
|
|
|
|
204,574 |
|
|
|
202,852 |
|
|
Loss on extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
20,901 |
|
|
Non-cash employee stock ownership
plan compensation charge |
|
|
5,256 |
|
|
|
4,374 |
|
|
|
|
25,595 |
|
|
|
23,120 |
|
|
Non-cash stock based compensation
charge (a) |
|
|
8,122 |
|
|
|
16,112 |
|
|
|
|
17,992 |
|
|
|
36,189 |
|
|
Goodwill impairment charge |
|
|
29,316 |
|
|
|
- |
|
|
|
|
29,316 |
|
|
|
- |
|
|
Loss on disposal of assets |
|
|
14,917 |
|
|
|
961 |
|
|
|
|
21,055 |
|
|
|
7,090 |
|
|
Other income (expense), net |
|
|
122 |
|
|
|
449 |
|
|
|
|
23 |
|
|
|
1,144 |
|
|
Change in fair value of contingent
consideration (included in operating expense) |
|
|
(100 |
) |
|
|
(1,800 |
) |
|
|
|
(4,600 |
) |
|
|
3,200 |
|
|
Severance costs ($805 included in
operating costs and $51 included in general and administrative
costs) |
|
|
856 |
|
|
|
- |
|
|
|
|
856 |
|
|
|
- |
|
|
Litigation accrual and related
legal fees associated with a |
|
|
|
|
|
|
|
|
|
|
class action lawsuit (included in
general and administrative expense) |
|
|
- |
|
|
|
723 |
|
|
|
|
83 |
|
|
|
1,147 |
|
|
Unrealized (non-cash) losses
(gains) on changes in fair value of derivatives |
|
|
1,038 |
|
|
|
- |
|
|
|
|
3,450 |
|
|
|
- |
|
|
Acquisition and transition expenses
(included in general and administrative expense) |
|
|
15 |
|
|
|
- |
|
|
|
|
16,388 |
|
|
|
- |
|
|
Net earnings (loss) attributable to
noncontrolling interest (b) |
|
|
(773 |
) |
|
|
(294 |
) |
|
|
|
(10 |
) |
|
|
424 |
|
|
Adjusted EBITDA (c) |
|
|
48,899 |
|
|
|
34,361 |
|
|
|
|
314,722 |
|
|
|
296,067 |
|
|
Net cash interest expense (d) |
|
|
(32,502 |
) |
|
|
(22,890 |
) |
|
|
|
(105,762 |
) |
|
|
(85,990 |
) |
|
Maintenance capital expenditures
(e) |
|
|
(6,215 |
) |
|
|
(5,088 |
) |
|
|
|
(20,739 |
) |
|
|
(18,624 |
) |
|
Cash paid for taxes |
|
|
- |
|
|
|
(260 |
) |
|
|
|
(452 |
) |
|
|
(1,076 |
) |
|
Proceeds from asset sales |
|
|
1,013 |
|
|
|
1,417 |
|
|
|
|
5,501 |
|
|
|
4,624 |
|
|
Distributable cash flow to equity investors
(f) |
|
|
11,195 |
|
|
|
7,540 |
|
|
|
|
193,270 |
|
|
|
195,001 |
|
|
Distributable cash flow attributable to general partner and
non-controlling interest |
|
|
224 |
|
|
|
151 |
|
|
|
|
3,865 |
|
|
|
3,900 |
|
|
Distributable cash flow attributable to common unitholders |
|
|
10,971 |
|
|
|
7,389 |
|
|
|
|
189,405 |
|
|
|
191,101 |
|
|
Less:
Distributions paid to common unitholders |
|
|
51,443 |
|
|
|
41,356 |
|
|
|
|
175,520 |
|
|
|
161,136 |
|
|
Distributable cash flow excess/(shortage) |
|
$ |
(40,472 |
) |
|
$ |
(33,967 |
) |
|
|
$ |
13,885 |
|
|
$ |
29,965 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Propane gallons sales |
|
|
|
|
|
|
|
|
|
|
Retail - Sales to End Users |
|
|
110,973 |
|
|
|
124,147 |
|
|
|
|
595,607 |
|
|
|
650,253 |
|
|
Wholesale - Sales to Resellers |
|
|
50,566 |
|
|
|
61,935 |
|
|
|
|
258,696 |
|
|
|
291,368 |
|
|
Total propane gallons sales |
|
|
161,539 |
|
|
|
186,082 |
|
|
|
|
854,303 |
|
|
|
941,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salt water volume - Midstream operations (barrels
processed) |
|
|
4,734 |
|
|
|
3,997 |
|
|
|
|
17,766 |
|
|
|
6,497 |
|
|
Crude oil hauled - Midstream operations
(barrels) |
|
|
24,264 |
|
|
|
0 |
|
|
|
|
34,711 |
|
|
|
0 |
|
|
Crude oil sold - Midstream operations
(barrels) |
|
|
1,510 |
|
|
|
|
|
|
2,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Non-cash stock-based compensation charges consist of the
following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Twelve months ended |
|
|
|
October 31 |
|
|
October 31 |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
Operating expense |
|
$ |
1,218 |
|
|
$ |
3,545 |
|
|
|
$ |
2,848 |
|
|
$ |
8,082 |
|
|
General and administrative
expense |
|
|
6,904 |
|
|
|
12,567 |
|
|
|
|
15,144 |
|
|
|
28,107 |
|
|
Total |
|
$ |
8,122 |
|
|
$ |
16,112 |
|
|
|
$ |
17,992 |
|
|
$ |
36,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Amounts allocated to the general partner for its 1.0101%
interest in the operating partnership, Ferrellgas, L.P. |
|
(c) Adjusted EBITDA is calculated as net earnings attributable
to Ferrellgas Partners, L.P., income tax expense(benefit), interest
expense, depreciation and amortization expense, loss on
extinguishment of debt, non-cash employee stock ownership plan
compensation charge, non-cash stock-based compensation charge,
goodwill impairment charge, loss on disposal of assets, other
income, net, change in fair value of contingent consideration,
litigation accrual and related legal fees associated with a class
action lawsuit, unrealized (non-cash) losses on changes in
fair value of derivatives, acquisition and transition expenses 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. |
|
(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. |
|
(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 equity
investors. Distributable cash flow to equity investors, as
management defines it, may not be comparable to distributable cash
flow to equity investors or similarly titled measurements used
by other corporations and partnerships. Items added into our
calculation of distributable cash flow to equity investors that
will not occur on a continuing basis may have associated cash
payments. Distributable cash flow to equity investors may not be
consistent with that of other companies and should be viewed in
conjunction with measurements that are computed in accordance
with GAAP. |
|
|
|
|
|
|
|
|
|
|
|
|
The
following table includes a reconciliation of forecasted net
earnings atttributable to Ferrellgas Partners, L.P. to forecasted
Adjusted EBITDA for the fiscal year ending July 31,
2016. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecast |
|
|
|
|
|
|
|
|
|
|
Fiscal Year |
|
|
|
|
|
|
|
|
|
|
Ending |
|
|
|
|
|
|
|
|
|
|
July 31, |
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
Net earnings
attributable to Ferrellgas Partners, L.P. (estimate) (g) |
|
|
|
|
|
|
|
|
|
20,000 |
|
|
Interest expense (estimate) |
|
|
|
|
|
|
|
|
|
134,000 |
|
|
Income tax expense (estimate) |
|
|
|
|
|
|
|
|
|
1,000 |
|
|
Depreciation and amortization
expense (estimate) |
|
|
|
|
|
|
|
|
|
150,000 |
|
|
Non-cash employee stock ownership
plan compensation charge (estimate) |
|
|
|
|
|
|
|
|
|
28,000 |
|
|
Non-cash stock based compensation
charge (estimate) |
|
|
|
|
|
|
|
|
|
27,000 |
|
|
Loss on disposal of assets
(estimate) |
|
|
|
|
|
|
|
|
|
19,900 |
|
|
Change in fair value of contingent
consideration (included in operating expense) |
|
|
|
|
|
|
|
|
|
(100 |
) |
|
Severance costs |
|
|
|
|
|
|
|
|
|
900 |
|
|
Goodwill impairment charge |
|
|
|
|
|
|
|
|
|
29,300 |
|
|
Adjusted EBITDA
(h) |
|
|
|
|
|
|
|
|
|
410,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(g)
Represents estimated net earnings attributable to Ferrellgas
Partners, L.P. after adjusting for change in fair value of gains
and losses on commodity and interest rate derivative
instruments not associated with current-period transactions. It is
impracticable to determine actual gains and losses on
these instruments not associated with current-period
transactions that will be reported in GAAP net income as such gains
and losses will depend upon future changes in commodity prices
and interest rates which cannot be forecasted. |
|
|
|
|
|
|
|
|
|
|
|
|
(h)
Represents the midpoint of Adjusted EBITDA guidance range for
fiscal 2016. |
|
Contacts
Jack Herrold, Investor Relations – jackherrold@ferrellgas.com or (913) 661-1851
Jim Saladin, Media Relations – jimsaladin@ferrellgas.com or (913) 661-1833
Scott Brockelmeyer, Media Relations – scottbrockelmeyer@ferrellgas.com or (913) 661-1830
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