Ferrellgas Partners, L.P. Reports Results for Second Quarter Fiscal 2017
March 09 2017 - 7:00AM
Ferrellgas Partners, L.P. (NYSE:FGP) (“Ferrellgas” or the
“Company”) today announced financial results for its second fiscal
quarter ended January 31, 2017. The Company reported net earnings
attributable to Ferrellgas Partners, L.P. of $38.1 million,
compared to net earnings of $57.1 million for the same period in
2016.
Adjusted EBITDA was $105.0 million, compared to $138.3 million
in the prior year period primarily due to decreased contributions
from the midstream crude oil logistics segment. Propane gallons
sold were up 7% to 267.7 million gallons, compared to 250.2 million
gallons in the prior year period. Operating income generated by the
propane and related equipment sales segment was $95.3 million,
compared to $97.8 million in the prior year period.
“Weather for the second fiscal quarter
was 4% colder than last year but a stunning 14% warmer than
normal,” said James E. Ferrell, the Company’s interim President and
Chief Executive Officer. “Our efforts to increase market share
resulted in gallons increasing approximately 7%, but resulted in
overall margins lower than the prior year period, due to customer
mix and location.” Mr. Ferrell continued, “The leadership changes
we announced earlier this year are going to reap significant
benefits. Dan Giannini at Bridger and Geoff Berger at Blue Rhino
are going to drive growth and improved results. In addition, Randy
Schott, a 28-year veteran of Ferrellgas and Sr. Vice President in
charge of our large Retail propane business has also instilled a
growth mindset in his people. Morale in the company could not be
higher.” At the end of the second fiscal quarter, the Company’s
leverage ratio was 5.81x, which was lower than the limit allowed
under its secured credit facility and accounts receivable
securitization facility, as amended in September 2016. Mr. Ferrell
added, “We were pleased to be able to upsize the Company’s recent
note issuance to $175 million. Our goal is to return to a leverage
ratio of 4.5x or a level we deem appropriate for our business.”
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 28, 2016. 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. These statements often use words such as “anticipate,”
“believe,” “intend,” “plan,” “projection,” “forecast,” “strategy,”
“position,” “continue,” “estimate,” “expect,” “may,” “will,” or the
negative of those terms or other variations of them or comparable
terminology. Forward-looking statements, include, but are not
limited to: Ferrellgas’ debt reduction plans, Ferrellgas’ leverage
ratio reduction plans, statements regarding future unitholder
returns, growth and improved results, plans to increase the
utilization of certain assets, the anticipated impact of
Ferrellgas’ actions on its balance sheet and liquidity position,
and the anticipated impact of Ferrellgas’ leadership changes. While
Ferrellgas believes that the assumptions concerning future events
are reasonable, it cautions that there are inherent difficulties in
predicting certain important factors that could impact the future
performance or results of its business. Among the factors that
could cause results to differ materially from those indicated by
such forward-looking statements are: risks related to Ferrellgas’
ability to generate sufficient cash flow to pay distributions, to
make payments on its debt obligations and to execute its business
plan; Ferrellgas’ ability to access funds on acceptable terms, if
at all, because of the terms and conditions governing its
indebtedness or otherwise; local, regional and national economic
conditions and the impact they may have on Ferrellgas and its
customers; the effect of weather conditions on the demand for
propane; the prices of wholesale propane, motor fuel and crude oil;
disruptions to the supply of propane; the termination or
non-renewal of certain arrangements or agreements; adverse changes
in our relationships with our national propane customers;
significant delays in the collection of, or uncollectibility of,
accounts or notes receivable; the financial condition of
Ferrellgas’ customers; and the failure of any customer to perform
its contractual obligations. 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, 2016,
the Form 10-Q of these entities for the fiscal quarter ended
January 31, 2017, and in other documents filed from time to time by
these entities with the Securities and Exchange Commission.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. All forward-looking statements in this press release
are qualified in their entirety by these cautionary statements.
Except as required by law, Ferrellgas undertakes no obligation and
does not intend to update or revise any forward-looking statements,
whether as a result of new information, future results or
otherwise.
FERRELLGAS PARTNERS, L.P. AND
SUBSIDIARIES |
|
|
CONSOLIDATED STATEMENTS OF
EARNINGS |
|
|
FOR THE THREE, SIX AND TWELVE MONTHS ENDED
JANUARY 31, 2017 AND 2016 |
|
|
(in thousands, except per unit
data) |
|
|
(unaudited) |
|
|
|
|
Three months
ended |
|
Six months
ended |
|
|
Twelve months
ended |
|
|
|
|
January 31 |
|
January 31 |
|
|
January 31 |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Propane
and other gas liquids sales |
|
$ |
437,375 |
|
|
$ |
376,856 |
|
|
$ |
679,774 |
|
|
$ |
622,157 |
|
|
|
$ |
1,259,985 |
|
|
$ |
1,323,945 |
|
|
|
Midstream
operations |
|
|
96,787 |
|
|
|
188,333 |
|
|
|
204,831 |
|
|
|
382,003 |
|
|
|
|
448,066 |
|
|
|
474,123 |
|
|
|
Other |
|
|
45,088 |
|
|
|
84,049 |
|
|
|
74,187 |
|
|
|
116,224 |
|
|
|
|
169,724 |
|
|
|
237,378 |
|
|
|
Total revenues |
|
|
579,250 |
|
|
|
649,238 |
|
|
|
958,792 |
|
|
|
1,120,384 |
|
|
|
|
1,877,775 |
|
|
|
2,035,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Propane
and other gas liquids sales |
|
|
235,029 |
|
|
|
174,829 |
|
|
|
354,241 |
|
|
|
296,580 |
|
|
|
|
622,094 |
|
|
|
678,298 |
|
|
|
Midstream
operations |
|
|
87,024 |
|
|
|
148,443 |
|
|
|
181,666 |
|
|
|
302,047 |
|
|
|
|
350,853 |
|
|
|
374,450 |
|
|
|
Other |
|
|
20,657 |
|
|
|
55,774 |
|
|
|
32,403 |
|
|
|
70,222 |
|
|
|
|
88,418 |
|
|
|
150,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
236,540 |
|
|
|
270,192 |
|
|
|
390,482 |
|
|
|
451,535 |
|
|
|
|
816,410 |
|
|
|
831,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense |
|
|
112,509 |
|
|
|
116,463 |
|
|
|
217,501 |
|
|
|
231,444 |
|
|
|
|
443,967 |
|
|
|
453,696 |
|
|
|
Depreciation and amortization expense |
|
|
25,607 |
|
|
|
37,367 |
|
|
|
51,809 |
|
|
|
74,346 |
|
|
|
|
127,976 |
|
|
|
125,673 |
|
|
|
General
and administrative expense |
|
|
11,429 |
|
|
|
12,062 |
|
|
|
23,911 |
|
|
|
24,302 |
|
|
|
|
48,188 |
|
|
|
59,284 |
|
|
|
Equipment lease expense |
|
|
7,416 |
|
|
|
7,278 |
|
|
|
14,765 |
|
|
|
14,310 |
|
|
|
|
29,288 |
|
|
|
27,256 |
|
|
|
Non-cash
employee stock ownership plan compensation charge |
|
|
2,945 |
|
|
|
3,141 |
|
|
|
6,699 |
|
|
|
8,397 |
|
|
|
|
25,897 |
|
|
|
24,948 |
|
|
|
Non-cash
stock-based compensation charge (a) |
|
|
1,417 |
|
|
|
(2,456 |
) |
|
|
3,298 |
|
|
|
5,666 |
|
|
|
|
6,956 |
|
|
|
15,218 |
|
|
|
Asset
impairments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
29,316 |
|
|
|
|
628,802 |
|
|
|
29,316 |
|
|
|
Loss on
asset sales and disposal |
|
|
45 |
|
|
|
2,524 |
|
|
|
6,468 |
|
|
|
17,441 |
|
|
|
|
19,862 |
|
|
|
22,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
75,172 |
|
|
|
93,813 |
|
|
|
66,031 |
|
|
|
46,313 |
|
|
|
|
(514,526 |
) |
|
|
74,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(36,819 |
) |
|
|
(34,730 |
) |
|
|
(72,247 |
) |
|
|
(68,518 |
) |
|
|
|
(141,666 |
) |
|
|
(120,627 |
) |
|
|
Other
income (expense), net |
|
|
763 |
|
|
|
(298 |
) |
|
|
1,271 |
|
|
|
(420 |
) |
|
|
|
1,801 |
|
|
|
(143 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income taxes |
|
|
39,116 |
|
|
|
58,785 |
|
|
|
(4,945 |
) |
|
|
(22,625 |
) |
|
|
|
(654,391 |
) |
|
|
(46,584 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
tax expense (benefit) |
|
|
588 |
|
|
|
1,030 |
|
|
|
(2 |
) |
|
|
186 |
|
|
|
|
(224 |
) |
|
|
(660 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
|
|
38,528 |
|
|
|
57,755 |
|
|
|
(4,943 |
) |
|
|
(22,811 |
) |
|
|
|
(654,167 |
) |
|
|
(45,924 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss) attributable to noncontrolling interest (b) |
|
|
430 |
|
|
|
628 |
|
|
|
32 |
|
|
|
(145 |
) |
|
|
|
(6,443 |
) |
|
|
(295 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss) attributable to Ferrellgas Partners, L.P. |
|
|
38,098 |
|
|
|
57,127 |
|
|
|
(4,975 |
) |
|
|
(22,666 |
) |
|
|
|
(647,724 |
) |
|
|
(45,629 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
General partner's interest in net earnings (loss) |
|
|
381 |
|
|
|
571 |
|
|
|
(50 |
) |
|
|
(227 |
) |
|
|
|
(6,477 |
) |
|
|
(456 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common unitholders' interest in net earnings
(loss) |
|
$ |
37,717 |
|
|
$ |
56,556 |
|
|
$ |
(4,925 |
) |
|
$ |
(22,439 |
) |
|
|
$ |
(641,247 |
) |
|
$ |
(45,173 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) Per Unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted net earnings (loss) per common unitholders'
interest |
|
$ |
0.39 |
|
|
$ |
0.58 |
|
|
$ |
(0.05 |
) |
|
$ |
(0.23 |
) |
|
|
$ |
(6.57 |
) |
|
$ |
(0.48 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common units outstanding |
|
|
97,152.7 |
|
|
|
98,334.4 |
|
|
|
97,305.1 |
|
|
|
99,355.6 |
|
|
|
|
97,652.0 |
|
|
|
93,169.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data and Reconciliation of
Non-GAAP Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Six months
ended |
|
|
Twelve months
ended |
|
|
|
|
January 31 |
|
January 31 |
|
|
January 31 |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to Ferrellgas Partners,
L.P. |
|
$ |
38,098 |
|
|
$ |
57,127 |
|
|
$ |
(4,975 |
) |
|
$ |
(22,666 |
) |
|
|
$ |
(647,724 |
) |
|
$ |
(45,629 |
) |
|
|
Income
tax expense (benefit) |
|
|
588 |
|
|
|
1,030 |
|
|
|
(2 |
) |
|
|
186 |
|
|
|
|
(224 |
) |
|
|
(660 |
) |
|
|
Interest
expense |
|
|
36,819 |
|
|
|
34,730 |
|
|
|
72,247 |
|
|
|
68,518 |
|
|
|
|
141,666 |
|
|
|
120,627 |
|
|
|
Depreciation and amortization expense |
|
|
25,607 |
|
|
|
37,367 |
|
|
|
51,809 |
|
|
|
74,346 |
|
|
|
|
127,976 |
|
|
|
125,673 |
|
|
|
EBITDA |
|
|
101,112 |
|
|
|
130,254 |
|
|
|
119,079 |
|
|
|
120,384 |
|
|
|
|
(378,306 |
) |
|
|
200,011 |
|
|
|
Non-cash
employee stock ownership plan compensation charge |
|
|
2,945 |
|
|
|
3,141 |
|
|
|
6,699 |
|
|
|
8,397 |
|
|
|
|
25,897 |
|
|
|
24,948 |
|
|
|
Non-cash
stock based compensation charge (a) |
|
|
1,417 |
|
|
|
(2,456 |
) |
|
|
3,298 |
|
|
|
5,666 |
|
|
|
|
6,956 |
|
|
|
15,218 |
|
|
|
Asset
impairments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
29,316 |
|
|
|
|
628,802 |
|
|
|
29,316 |
|
|
|
Loss on
asset sales and disposal |
|
|
45 |
|
|
|
2,524 |
|
|
|
6,468 |
|
|
|
17,441 |
|
|
|
|
19,862 |
|
|
|
22,165 |
|
|
|
Other
(income) expense, net |
|
|
(763 |
) |
|
|
298 |
|
|
|
(1,271 |
) |
|
|
420 |
|
|
|
|
(1,801 |
) |
|
|
143 |
|
|
|
Change in
fair value of contingent consideration (included in operating
expense) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(100 |
) |
|
|
|
- |
|
|
|
(100 |
) |
|
|
Severance costs $414 and $938 included in operating costs for
the six and twelve months ended period January 31, 2017 and $490,
$1,545 and $1,618 included in general and administrative costs for
the three, six and twelve months ended January 31, 2017. Also
includes $805 in operating costs for the six and twelve months
ended January 31, 2016 and $51 in general and administrative costs
for the six and twelve months ended January 31, 2016. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
490 |
|
|
|
- |
|
|
|
1,959 |
|
|
|
856 |
|
|
|
|
2,556 |
|
|
|
856 |
|
|
|
Litigation accrual and related legal fees associated with a class
action lawsuit (included in general and administrative
expense) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
83 |
|
|
|
Unrealized (non-cash) losses (gains) on changes in fair value of
derivatives $(1,134), $(3,011) and $(6,160) included
in operating expense for the three, six and twelve months
ended January 31, 2017 and $3,696, $4,734 and $7,146 for
the three, six and twelve months ended January 31, 2016. Also
includes $488, $796 and $174 included in midstream
operations cost of sales for the three, six and twelve months
ended January 31, 2017, respectively and $174 for each of the
three, six and twelve months ended January 31, 2016. |
|
|
(646 |
) |
|
|
3,870 |
|
|
|
(2,215 |
) |
|
|
4,908 |
|
|
|
|
(5,986 |
) |
|
|
7,320 |
|
|
|
Acquisition and transition expenses (included in general and
administrative expense) |
|
|
- |
|
|
|
70 |
|
|
|
- |
|
|
|
85 |
|
|
|
|
14 |
|
|
|
16,458 |
|
|
|
Net
earnings (loss) attributable to noncontrolling interest (b) |
|
|
430 |
|
|
|
628 |
|
|
|
32 |
|
|
|
(145 |
) |
|
|
|
(6,443 |
) |
|
|
(295 |
) |
|
|
Adjusted EBITDA (c) |
|
|
105,030 |
|
|
|
138,329 |
|
|
|
134,049 |
|
|
|
187,228 |
|
|
|
|
291,551 |
|
|
|
316,123 |
|
|
|
Net cash
interest expense (d) |
|
|
(34,712 |
) |
|
|
(33,905 |
) |
|
|
(68,330 |
) |
|
|
(66,407 |
) |
|
|
|
(134,783 |
) |
|
|
(116,380 |
) |
|
|
Maintenance capital expenditures (e) |
|
|
(3,754 |
) |
|
|
(3,214 |
) |
|
|
(7,076 |
) |
|
|
(9,429 |
) |
|
|
|
(14,784 |
) |
|
|
(19,329 |
) |
|
|
Cash paid
for taxes |
|
|
(25 |
) |
|
|
(5 |
) |
|
|
(26 |
) |
|
|
(5 |
) |
|
|
|
(798 |
) |
|
|
(451 |
) |
|
|
Proceeds
from asset sales |
|
|
2,313 |
|
|
|
1,863 |
|
|
|
4,033 |
|
|
|
2,876 |
|
|
|
|
7,180 |
|
|
|
6,052 |
|
|
|
Distributable cash flow to equity investors
(f) |
|
|
68,852 |
|
|
|
103,068 |
|
|
|
62,650 |
|
|
|
114,263 |
|
|
|
|
148,366 |
|
|
|
186,015 |
|
|
|
Distributable cash flow attributable to general partner and
non-controlling interest |
|
|
1,377 |
|
|
|
2,061 |
|
|
|
1,253 |
|
|
|
2,285 |
|
|
|
|
2,968 |
|
|
|
3,720 |
|
|
|
Distributable cash flow attributable to common unitholders |
|
|
67,475 |
|
|
|
101,007 |
|
|
|
61,397 |
|
|
|
111,978 |
|
|
|
|
145,398 |
|
|
|
182,295 |
|
|
|
Less:
Distributions paid to common unitholders |
|
|
9,715 |
|
|
|
50,223 |
|
|
|
59,506 |
|
|
|
101,666 |
|
|
|
|
159,959 |
|
|
|
184,384 |
|
|
|
Distributable cash flow excess/(shortage) |
|
$ |
57,760 |
|
|
$ |
50,784 |
|
|
$ |
1,891 |
|
|
$ |
10,312 |
|
|
|
$ |
(14,561 |
) |
|
$ |
(2,089 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Propane gallons sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail -
Sales to End Users |
|
|
201,580 |
|
|
|
189,460 |
|
|
|
312,768 |
|
|
|
300,433 |
|
|
|
|
565,106 |
|
|
|
569,071 |
|
|
|
Wholesale
- Sales to Resellers |
|
|
66,152 |
|
|
|
60,781 |
|
|
|
118,142 |
|
|
|
111,347 |
|
|
|
|
232,916 |
|
|
|
238,167 |
|
|
|
Total
propane gallons sales |
|
|
267,732 |
|
|
|
250,241 |
|
|
|
430,910 |
|
|
|
411,780 |
|
|
|
|
798,022 |
|
|
|
807,238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream operations barrels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salt
water volume processed |
|
|
4,002 |
|
|
|
4,222 |
|
|
|
7,705 |
|
|
|
8,956 |
|
|
|
|
15,292 |
|
|
|
17,272 |
|
|
|
Crude
oil hauled |
|
|
13,005 |
|
|
|
24,345 |
|
|
|
24,269 |
|
|
|
48,609 |
|
|
|
|
55,071 |
|
|
|
59,056 |
|
|
|
Crude
oil sold |
|
|
1,326 |
|
|
|
1,593 |
|
|
|
3,118 |
|
|
|
3,103 |
|
|
|
|
6,875 |
|
|
|
3,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Non-cash stock-based compensation charges consist of the
following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
Twelve months ended |
|
|
|
|
January 31 |
|
January 31 |
|
|
January 31 |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
Operating expense |
|
$ |
567 |
|
|
$ |
(466 |
) |
|
$ |
661 |
|
|
$ |
752 |
|
|
|
|
1,177 |
|
|
$ |
2,315 |
|
|
|
General
and administrative expense |
|
|
850 |
|
|
|
(1,990 |
) |
|
|
2,637 |
|
|
|
4,914 |
|
|
|
|
5,779 |
|
|
|
12,903 |
|
|
|
Total |
|
$ |
1,417 |
|
|
$ |
(2,456 |
) |
|
$ |
3,298 |
|
|
$ |
5,666 |
|
|
|
$ |
6,956 |
|
|
$ |
15,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 loss
attributable to Ferrellgas Partners, L.P., less the sum of the
following: income tax expense (benefit), interest expense,
depreciation and amortization expense, non-cash employee
stock ownership plan compensation charge, non-cash stock-based
compensation charge, asset impairments, loss on asset sales and
disposal, 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 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) Distributable cash flow attributable to
equity investors is calculated as Adjusted EBITDA minus net cash
interest, maintenance capital expenditures, cash paid for taxes,
and proceeds from asset sales. Management considers distributable
cash flow attributable to equity investors a meaningful measure of
the partnership’s ability to declare and pay quarterly
distributions to equity investors. Distributable cash flow
attributable to equity investors, as management defines it, may not
be comparable to distributable cash flow attributable to equity
investors or similarly titled measurements used by other
corporations and partnerships. Items added into our calculation of
distributable cash flow attributable to equity investors that will
not occur on a continuing basis may have associated cash payments.
Distributable cash flow attributable 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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FERRELLGAS PARTNERS,
L.P. AND
SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
(in thousands, except unit data) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
January 31, 2017 |
|
July 31, 2016 |
|
|
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
14,710 |
|
|
$ |
4,965 |
|
|
Accounts and notes receivable, net (including $181,851 and $106,464
of |
|
|
|
|
|
accounts receivable pledged as collateral at January 31, 2017
and |
|
|
|
|
|
July 31, 2016, respectively) |
|
|
223,978 |
|
|
|
149,583 |
|
|
Inventories |
|
|
114,862 |
|
|
|
90,594 |
|
|
Prepaid expenses
and other current assets |
|
|
37,729 |
|
|
|
39,973 |
|
|
Total Current Assets |
|
|
391,279 |
|
|
|
285,115 |
|
|
|
|
|
|
|
|
Property, plant and
equipment, net |
|
|
747,045 |
|
|
|
774,680 |
|
|
Goodwill, net |
|
|
256,103 |
|
|
|
256,103 |
|
|
Intangible assets, net |
|
|
264,165 |
|
|
|
280,185 |
|
|
Other
assets, net |
|
|
87,028 |
|
|
|
87,223 |
|
|
Total Assets |
|
$ |
1,745,620 |
|
|
$ |
1,683,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND PARTNERS' DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities: |
|
|
|
|
|
Accounts
payable |
|
$ |
108,271 |
|
|
$ |
67,928 |
|
|
Short-term borrowings |
|
|
65,599 |
|
|
|
101,291 |
|
|
Collateralized note payable |
|
|
133,000 |
|
|
|
64,000 |
|
|
Other current liabilities |
|
|
134,945 |
|
|
|
128,958 |
|
|
Total Current
Liabilities |
|
|
441,815 |
|
|
|
362,177 |
|
|
|
|
|
|
|
|
Long-term debt (a) |
|
|
1,966,909 |
|
|
|
1,941,335 |
|
|
Other liabilities |
|
|
33,428 |
|
|
|
31,574 |
|
|
Contingencies and
commitments |
|
|
|
|
|
|
|
|
|
|
|
Partners' Capital
(Deficit): |
|
|
|
|
|
Common unitholders (97,152,665 and 98,002,665 units
outstanding at |
|
|
|
|
|
January 31, 2017 and July 31, 2016) |
|
|
(641,239 |
) |
|
|
(570,754 |
) |
|
General partner unitholder (989,926 and 989,926 units
outstanding at |
|
|
|
|
|
January 31, 2017 and July 31, 2016) |
|
|
(66,387 |
) |
|
|
(65,835 |
) |
|
Accumulated other comprehensive income (loss) |
|
|
14,430 |
|
|
|
(10,468 |
) |
|
Total Ferrellgas Partners, L.P.
Partners' Deficit |
|
|
(693,196 |
) |
|
|
(647,057 |
) |
|
Noncontrolling Interest |
|
|
(3,336 |
) |
|
|
(4,723 |
) |
|
Total Partners'
Deficit |
|
|
(696,532 |
) |
|
|
(651,780 |
) |
|
Total Liabilities and Partners'
Deficit |
|
$ |
1,745,620 |
|
|
$ |
1,683,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The principal difference between the Ferrellgas Partners,
L.P. balance sheet and that of Ferrellgas, L.P., is $357 million of
8.625% notes |
|
which are liabilities of Ferrellgas Partners, L.P. and not of
Ferrellgas, L.P. |
|
|
|
|
|
|
|
|
|
|
|
Contacts
Jack Herrold, Investor Relations – jackherrold@ferrellgas.com, 913-661-1851
Jim Saladin, Media Relations – jimsaladin@ferrellgas.com, 913-661-1833
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