Ferrellgas Partners, L.P. Reports Results for Third Quarter Fiscal 2016
June 08 2016 - 7:00AM
Ferrellgas Partners, L.P. (NYSE:FGP) (“Ferrellgas” or the
“Company”) today reported financial results for its third fiscal
quarter ended April 30, 2016. The Company reported Net earnings
attributable to Ferrellgas Partners, L.P. of $18.7 million,
compared to $35.8 million for the quarter ended April 30, 2015.
Adjusted EBITDA was $108.0 million, an increase of 12% over the
same quarter last year, including $25.2 million of Adjusted EBITDA
from the Bridger Logistics acquisition which was completed in June
of 2015.
“Like many in our industry, we continue to be impacted by the
extremely warm temperatures nationwide, and the downturn in the
commodities market, including lower crude oil prices and project
delays and cancellations,” said Stephen L. Wambold, President and
Chief Executive Officer. “We experienced an average of 18% warmer
weather than normal during the quarter, which reduced heating needs
across all our geographies and significantly drove down propane
segment volumes and revenues. Notwithstanding these operating
conditions, we are pleased to have delivered a 12% year-over-year
increase in Adjusted EBITDA.”
Mr. Wambold continued, “Bridger continues to perform well,
providing gross profits and adjusted EBITDA in our third quarter
that more than offset decreases in our water solutions and propane
segments. Importantly, we remain focused on reducing expenses and
continue to evaluate value-enhancing organic and external growth
opportunities to drive growth and mitigate the impact of the
challenging operating environment. We expect our distributable cash
flow coverage to rebound to more than 1.0x by the end of 2016, with
leverage dropping below 5.0x. We continue to execute against our
strategic plan and remain confident that we have the initiatives in
place to create value for all Ferrellgas unitholders.”
Continued strong expense controls in the Propane and related
equipment sales segment and strong results from the Midstream Crude
Oil segment helped offset the impact of elevated temperatures,
which were 18% warmer than normal and 21% warmer than the prior
year period.
Even though there were strong expense controls, due to the
Bridger Transaction, Operating expense and General and
administrative expense for the third fiscal quarter increased to
$115.1 million and $12.4 million respectively.
Interest expense totaled $34.4 million for the third fiscal
quarter, compared to $23.5 in the prior year period, primarily due
to $500 million of notes issued in connection with the Bridger
acquisition in June 2015.
Net earnings for the quarter were $18.9 million, or $0.19 per
common unit, compared to net earnings of $36.2 million, or $0.43
per common unit, in the prior year period. The decrease in net
earnings is primarily related to the impact of warm weather on
our propane and related equipment sales segment and the increases
in Depreciation and amortization expense and interest expense both
primarily related to the acquisition of Bridger.
About FerrellgasFerrellgas 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.
Forward Looking Statements 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 quarters
ended October 31, 2015, January 31, 2016 and April 30, 2016 and in
other documents filed from time to time by these entities with the
Securities and Exchange Commission.
|
|
FERRELLGAS PARTNERS,
L.P. AND
SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
(in thousands, except unit data) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
April 30, 2016 |
|
July 31, 2015 |
|
|
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
6,266 |
|
|
$ |
7,652 |
|
|
Accounts and notes receivable, net
(including $134,538 and 123,791 of |
|
|
|
|
|
accounts receivable pledged as
collateral at April 30, 2016 |
|
|
|
|
|
and July 31, 2015,
respectively) |
|
|
192,704 |
|
|
|
196,918 |
|
|
Inventories |
|
|
87,739 |
|
|
|
96,754 |
|
|
Prepaid expenses and other current
assets |
|
|
35,857 |
|
|
|
64,285 |
|
|
Total Current
Assets |
|
|
322,566 |
|
|
|
365,609 |
|
|
|
|
|
|
|
|
Property, plant and
equipment, net |
|
|
981,453 |
|
|
|
965,217 |
|
|
Goodwill |
|
|
446,333 |
|
|
|
478,747 |
|
|
Intangible assets, net |
|
|
551,372 |
|
|
|
580,043 |
|
|
Other
assets, net |
|
|
70,280 |
|
|
|
74,440 |
|
|
Assets
held for sale |
|
|
845 |
|
|
|
- |
|
|
Total Assets |
|
$ |
2,372,849 |
|
|
$ |
2,464,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND PARTNERS' CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities: |
|
|
|
|
|
Accounts payable |
|
$ |
78,063 |
|
|
$ |
83,974 |
|
|
Short-term borrowings |
|
|
9,071 |
|
|
|
75,319 |
|
|
Collateralized note payable |
|
|
77,000 |
|
|
|
70,000 |
|
|
Other current liabilities |
|
|
161,394 |
|
|
|
180,687 |
|
|
Total Current
Liabilities |
|
|
325,528 |
|
|
|
409,980 |
|
|
|
|
|
|
|
|
Long-term debt (a) |
|
|
1,960,331 |
|
|
|
1,804,392 |
|
|
Other liabilities |
|
|
33,347 |
|
|
|
41,975 |
|
|
Contingencies and
commitments |
|
|
|
|
|
|
|
|
|
|
|
Partners' Capital: |
|
|
|
|
|
Common unitholders (98,002,665 and
100,376,789 units outstanding at |
|
|
|
|
|
April 30, 2016 and July 31,
2015) |
|
|
122,740 |
|
|
|
299,730 |
|
|
General partner unitholder (989,926
and 1,013,907 units outstanding at |
|
|
|
|
|
April 30, 2016 and July 31,
2015) |
|
|
(58,829 |
) |
|
|
(57,042 |
) |
|
Accumulated other
comprehensive loss |
|
|
(12,709 |
) |
|
|
(38,934 |
) |
|
Total Ferrellgas Partners,
L.P. Partners' Capital |
|
|
51,202 |
|
|
|
203,754 |
|
|
Noncontrolling Interest |
|
|
2,441 |
|
|
|
3,955 |
|
|
Total Partners'
Capital |
|
|
53,643 |
|
|
|
207,709 |
|
|
Total Liabilities and
Partners' Capital |
|
$ |
2,372,849 |
|
|
$ |
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, NINE AND TWELVE MONTHS ENDED
APRIL 30, 2016 AND 2015 |
|
|
(in thousands, except per unit
data) |
|
|
(unaudited) |
|
|
|
|
Three months
ended |
|
Nine months
ended |
|
Twelve months ended |
|
|
|
|
April 30 |
|
April 30 |
|
April 30 |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Propane and other gas liquids
sales |
|
$ |
338,929 |
|
|
$ |
445,667 |
|
|
$ |
961,086 |
|
|
$ |
1,400,895 |
|
|
$ |
1,217,207 |
|
|
$ |
1,751,452 |
|
|
|
Midstream operations |
|
|
105,424 |
|
|
|
5,293 |
|
|
|
487,427 |
|
|
|
20,362 |
|
|
|
574,254 |
|
|
|
27,797 |
|
|
|
Other |
|
|
65,119 |
|
|
|
81,591 |
|
|
|
181,343 |
|
|
|
220,622 |
|
|
|
220,906 |
|
|
|
261,660 |
|
|
|
Total
revenues |
|
|
509,472 |
|
|
|
532,551 |
|
|
|
1,629,856 |
|
|
|
1,641,879 |
|
|
|
2,012,367 |
|
|
|
2,040,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sold: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Propane and other gas liquids
sales |
|
|
152,261 |
|
|
|
253,684 |
|
|
|
448,841 |
|
|
|
849,190 |
|
|
|
576,875 |
|
|
|
1,073,062 |
|
|
|
Midstream operations |
|
|
71,852 |
|
|
|
1,877 |
|
|
|
373,899 |
|
|
|
6,064 |
|
|
|
444,425 |
|
|
|
8,034 |
|
|
|
Other |
|
|
41,203 |
|
|
|
57,709 |
|
|
|
111,425 |
|
|
|
147,672 |
|
|
|
134,450 |
|
|
|
172,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
244,156 |
|
|
|
219,281 |
|
|
|
695,691 |
|
|
|
638,953 |
|
|
|
856,617 |
|
|
|
787,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense |
|
|
115,140 |
|
|
|
106,883 |
|
|
|
346,584 |
|
|
|
316,913 |
|
|
|
461,953 |
|
|
|
429,474 |
|
|
|
Depreciation and amortization expense |
|
|
38,352 |
|
|
|
23,324 |
|
|
|
112,698 |
|
|
|
70,576 |
|
|
|
140,701 |
|
|
|
93,007 |
|
|
|
General
and administrative expense |
|
|
12,354 |
|
|
|
8,252 |
|
|
|
36,656 |
|
|
|
29,701 |
|
|
|
63,386 |
|
|
|
40,614 |
|
|
|
Equipment lease expense |
|
|
7,244 |
|
|
|
6,347 |
|
|
|
21,554 |
|
|
|
17,674 |
|
|
|
28,153 |
|
|
|
22,441 |
|
|
|
Non-cash
employee stock ownership plan compensation charge |
|
|
9,978 |
|
|
|
8,566 |
|
|
|
18,375 |
|
|
|
16,728 |
|
|
|
26,360 |
|
|
|
28,128 |
|
|
|
Non-cash
stock-based compensation charge (a) |
|
|
1,091 |
|
|
|
3,271 |
|
|
|
6,757 |
|
|
|
19,701 |
|
|
|
13,038 |
|
|
|
28,027 |
|
|
|
Goodwill
impairment charge |
|
|
- |
|
|
|
- |
|
|
|
29,316 |
|
|
|
- |
|
|
|
29,316 |
|
|
|
- |
|
|
|
Loss on
disposal of assets |
|
|
5,779 |
|
|
|
2,203 |
|
|
|
23,220 |
|
|
|
4,578 |
|
|
|
25,741 |
|
|
|
7,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
54,218 |
|
|
|
60,435 |
|
|
|
100,531 |
|
|
|
163,082 |
|
|
|
67,969 |
|
|
|
138,073 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(34,371 |
) |
|
|
(23,510 |
) |
|
|
(102,889 |
) |
|
|
(71,797 |
) |
|
|
(131,488 |
) |
|
|
(93,927 |
) |
|
|
Other
income (expense), net |
|
|
331 |
|
|
|
212 |
|
|
|
(89 |
) |
|
|
(415 |
) |
|
|
(24 |
) |
|
|
(1,392 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income taxes |
|
|
20,178 |
|
|
|
37,137 |
|
|
|
(2,447 |
) |
|
|
90,870 |
|
|
|
(63,543 |
) |
|
|
42,754 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
tax expense (benefit) |
|
|
1,260 |
|
|
|
917 |
|
|
|
1,446 |
|
|
|
1,448 |
|
|
|
(317 |
) |
|
|
1,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
|
|
18,918 |
|
|
|
36,220 |
|
|
|
(3,893 |
) |
|
|
89,422 |
|
|
|
(63,226 |
) |
|
|
41,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss) attributable to noncontrolling interest (b) |
|
|
233 |
|
|
|
408 |
|
|
|
88 |
|
|
|
1,027 |
|
|
|
(470 |
) |
|
|
581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss) attributable to Ferrellgas Partners, L.P. |
|
|
18,685 |
|
|
|
35,812 |
|
|
|
(3,981 |
) |
|
|
88,395 |
|
|
|
(62,756 |
) |
|
|
40,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
General partner's interest in net earnings (loss) |
|
|
187 |
|
|
|
358 |
|
|
|
(40 |
) |
|
|
884 |
|
|
|
(628 |
) |
|
|
406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unitholders' interest in net earnings
(loss) |
|
$ |
18,498 |
|
|
$ |
35,454 |
|
|
$ |
(3,941 |
) |
|
$ |
87,511 |
|
|
$ |
(62,128 |
) |
|
$ |
40,194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) Per Unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted net earnings (loss) per common unitholders'
interest |
|
$ |
0.19 |
|
|
$ |
0.43 |
|
|
$ |
(0.04 |
) |
|
$ |
1.06 |
|
|
$ |
(0.64 |
) |
|
$ |
0.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common units outstanding |
|
|
98,002.7 |
|
|
|
82,717.6 |
|
|
|
98,911.2 |
|
|
|
82,536.1 |
|
|
|
96,899.5 |
|
|
|
82,200.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data and Reconciliation of
Non-GAAP Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Nine months
ended |
|
Twelve months ended |
|
|
|
|
April 30 |
|
April 30 |
|
April 30 |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to Ferrellgas Partners,
L.P. |
|
$ |
18,685 |
|
|
$ |
35,812 |
|
|
$ |
(3,981 |
) |
|
$ |
88,395 |
|
|
$ |
(62,756 |
) |
|
$ |
40,600 |
|
|
|
Income tax expense (benefit) |
|
|
1,260 |
|
|
|
917 |
|
|
|
1,446 |
|
|
|
1,448 |
|
|
|
(317 |
) |
|
|
1,573 |
|
|
|
Interest expense |
|
|
34,371 |
|
|
|
23,510 |
|
|
|
102,889 |
|
|
|
71,797 |
|
|
|
131,488 |
|
|
|
93,927 |
|
|
|
Depreciation and amortization
expense |
|
|
38,352 |
|
|
|
23,324 |
|
|
|
112,698 |
|
|
|
70,576 |
|
|
|
140,701 |
|
|
|
93,007 |
|
|
|
EBITDA |
|
|
92,668 |
|
|
|
83,563 |
|
|
|
213,052 |
|
|
|
232,216 |
|
|
|
209,116 |
|
|
|
229,107 |
|
|
|
Non-cash employee stock ownership
plan compensation charge |
|
|
9,978 |
|
|
|
8,566 |
|
|
|
18,375 |
|
|
|
16,728 |
|
|
|
26,360 |
|
|
|
28,128 |
|
|
|
Non-cash stock based compensation
charge (a) |
|
|
1,091 |
|
|
|
3,271 |
|
|
|
6,757 |
|
|
|
19,701 |
|
|
|
13,038 |
|
|
|
28,027 |
|
|
|
Goodwill impairment charge |
|
|
- |
|
|
|
- |
|
|
|
29,316 |
|
|
|
- |
|
|
|
29,316 |
|
|
|
- |
|
|
|
Loss on disposal of assets |
|
|
5,779 |
|
|
|
2,203 |
|
|
|
23,220 |
|
|
|
4,578 |
|
|
|
25,741 |
|
|
|
7,638 |
|
|
|
Other income (expense), net |
|
|
(331 |
) |
|
|
(212 |
) |
|
|
89 |
|
|
|
415 |
|
|
|
24 |
|
|
|
1,392 |
|
|
|
Change in fair value of contingent
consideration (included in operating expense) |
|
|
- |
|
|
|
- |
|
|
|
(100 |
) |
|
|
(6,300 |
) |
|
|
(100 |
) |
|
|
(1,300 |
) |
|
|
Severance costs ($396 and $1,201
included in operating costs for the three and nine months ended
period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 30, 2016 and $73 and $124
included in general and administrative costs for the three and nine
months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ended period April 30, 2016) |
|
|
469 |
|
|
|
- |
|
|
|
1,325 |
|
|
|
- |
|
|
|
1,325 |
|
|
|
- |
|
|
|
Litigation accrual and related
legal fees associated with a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
class action lawsuit (included in
general and administrative expense) |
|
|
- |
|
|
|
83 |
|
|
|
- |
|
|
|
806 |
|
|
|
- |
|
|
|
1,133 |
|
|
|
Unrealized (non-cash) losses
(gains) on changes in fair value of derivatives |
|
|
(1,915 |
) |
|
|
(1,609 |
) |
|
|
2,993 |
|
|
|
(1,609 |
) |
|
|
7,014 |
|
|
|
(1,609 |
) |
|
|
Acquisition and transition expenses
(included in general and administrative expense) |
|
|
14 |
|
|
|
- |
|
|
|
99 |
|
|
|
- |
|
|
|
16,472 |
|
|
|
- |
|
|
|
Net earnings (loss) attributable to
noncontrolling interest (b) |
|
|
233 |
|
|
|
408 |
|
|
|
88 |
|
|
|
1,027 |
|
|
|
(470 |
) |
|
|
581 |
|
|
|
Adjusted EBITDA (c) |
|
|
107,986 |
|
|
|
96,273 |
|
|
|
295,214 |
|
|
|
267,562 |
|
|
|
327,836 |
|
|
|
293,097 |
|
|
|
Net cash interest expense (d) |
|
|
(32,849 |
) |
|
|
(22,422 |
) |
|
|
(99,256 |
) |
|
|
(68,599 |
) |
|
|
(126,807 |
) |
|
|
(90,778 |
) |
|
|
Maintenance capital expenditures
(e) |
|
|
(4,159 |
) |
|
|
(5,151 |
) |
|
|
(13,588 |
) |
|
|
(14,863 |
) |
|
|
(18,337 |
) |
|
|
(19,191 |
) |
|
|
Cash paid for taxes |
|
|
(427 |
) |
|
|
(67 |
) |
|
|
(432 |
) |
|
|
(333 |
) |
|
|
(811 |
) |
|
|
(746 |
) |
|
|
Proceeds from asset sales |
|
|
3,096 |
|
|
|
1,331 |
|
|
|
5,972 |
|
|
|
4,060 |
|
|
|
7,817 |
|
|
|
5,317 |
|
|
|
Distributable cash flow to equity investors
(f) |
|
|
73,647 |
|
|
|
69,964 |
|
|
|
187,910 |
|
|
|
187,827 |
|
|
|
189,698 |
|
|
|
187,699 |
|
|
|
Distributable cash flow attributable to general partner and
non-controlling interest |
|
|
1,473 |
|
|
|
1,400 |
|
|
|
3,758 |
|
|
|
3,757 |
|
|
|
3,793 |
|
|
|
3,754 |
|
|
|
Distributable cash flow attributable to common unitholders |
|
|
72,174 |
|
|
|
68,564 |
|
|
|
184,152 |
|
|
|
184,070 |
|
|
|
185,905 |
|
|
|
183,945 |
|
|
|
Less:
Distributions paid to common unitholders |
|
|
50,267 |
|
|
|
41,359 |
|
|
|
151,933 |
|
|
|
124,074 |
|
|
|
193,292 |
|
|
|
164,688 |
|
|
|
Distributable cash flow excess/(shortage) |
|
$ |
21,907 |
|
|
$ |
27,205 |
|
|
$ |
32,219 |
|
|
$ |
59,996 |
|
|
$ |
(7,387 |
) |
|
$ |
19,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Propane gallons sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail - Sales to End Users |
|
|
164,713 |
|
|
|
178,583 |
|
|
|
465,146 |
|
|
|
518,726 |
|
|
|
555,201 |
|
|
|
611,942 |
|
|
|
Wholesale - Sales to Resellers |
|
|
58,645 |
|
|
|
67,823 |
|
|
|
169,992 |
|
|
|
211,068 |
|
|
|
228,989 |
|
|
|
272,616 |
|
|
|
Total propane gallons sales |
|
|
223,358 |
|
|
|
246,406 |
|
|
|
635,138 |
|
|
|
729,794 |
|
|
|
784,190 |
|
|
|
884,558 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salt water volume - Midstream operations (barrels
processed) |
|
|
4,024 |
|
|
|
4,515 |
|
|
|
12,980 |
|
|
|
13,234 |
|
|
|
16,781 |
|
|
|
15,734 |
|
|
|
Crude oil hauled - Midstream operations
(barrels) |
|
|
16,215 |
|
|
|
|
|
64,824 |
|
|
|
|
|
75,271 |
|
|
|
|
|
Crude oil sold - Midstream operations
(barrels) |
|
|
1,866 |
|
|
|
53 |
|
|
|
4,969 |
|
|
|
175 |
|
|
|
5,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Non-cash stock-based compensation charges consist of the
following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
Twelve months ended |
|
|
|
|
April 30 |
|
April 30 |
|
April 30 |
|
|
Operating expense |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
General and administrative
expense |
|
$ |
131 |
|
|
$ |
621 |
|
|
$ |
883 |
|
|
$ |
4,233 |
|
|
$ |
1,825 |
|
|
$ |
6,065 |
|
|
|
Total |
|
|
960 |
|
|
|
2,650 |
|
|
|
5,874 |
|
|
|
15,468 |
|
|
|
11,213 |
|
|
|
21,962 |
|
|
|
|
|
$ |
1,091 |
|
|
$ |
3,271 |
|
|
$ |
6,757 |
|
|
$ |
19,701 |
|
|
$ |
13,038 |
|
|
$ |
28,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 (loss)
attributable to Ferrellgas Partners, L.P., income tax expense
(benefit), interest expense, depreciation and amortization
expense, non-cash employee stock ownership plan compensation
charge, non-cash stock-based compensation charge, goodwill
impairment charge, loss on disposal of assets, other income
(expense), net, change in fair value of contingent consideration,
severance costs, litigation accrual and related legal fees
associated with a class action lawsuit, unrealized (non-cash)
losses (gains) 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 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 attributable 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) |
|
|
|
|
|
|
|
|
|
|
|
|
(14,500 |
) |
|
|
Interest expense
(estimate) |
|
|
|
|
|
|
|
|
|
|
|
|
136,000 |
|
|
|
Income tax
expense (estimate) |
|
|
|
|
|
|
|
|
|
|
|
|
300 |
|
|
|
Depreciation and
amortization expense (estimate) |
|
|
|
|
|
|
|
|
|
|
|
|
150,100 |
|
|
|
Non-cash
employee stock ownership plan compensation charge (estimate) |
|
|
|
|
|
|
|
|
|
|
|
|
27,400 |
|
|
|
Non-cash stock
based compensation charge (estimate) |
|
|
|
|
|
|
|
|
|
|
|
|
13,000 |
|
|
|
Loss on disposal
of assets (estimate) |
|
|
|
|
|
|
|
|
|
|
|
|
24,650 |
|
|
|
Change in fair
value of contingent consideration (included in operating
expense) |
|
|
|
|
|
|
|
|
|
|
|
|
(100 |
) |
|
|
Severance
costs |
|
|
|
|
|
|
|
|
|
|
|
|
1,350 |
|
|
|
Goodwill
impairment charge |
|
|
|
|
|
|
|
|
|
|
|
|
29,300 |
|
|
|
Adjusted EBITDA
(h) |
|
|
|
|
|
|
|
|
|
|
|
|
367,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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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