OVERLAND PARK, Kan.,
Dec. 6, 2013 /PRNewswire/ --
Ferrellgas Partners, L.P. (NYSE: FGP), one of the nation's largest
distributors of propane, today reported results for the fiscal 2014
first quarter ended October 31.
The partnership reported Adjusted EBITDA of $26.4 million and Distributable Cash Flow of
$3.0 million producing trailing 12
month distributable cash flow coverage of 1.08x on cash
distributions paid to unitholders. Revenues grew to
$415.0 million, up 14% from
$362.9 million in the prior-year
quarter, reflecting both an increase in wholesale propane costs and
sales volumes.
Gross profit rose 2% to a near record $142.9 million from $140.1
million a year earlier on increased sales volumes partially
offset by lower retail margins adversely affected by the higher
wholesale cost of propane that rose 20% over the year before.
President and Chief Executive Officer Steve Wambold commented, "Fiscal 2014 is off to
a solid start with nationwide winter temperatures forecasted near
normal levels this coming season. Based on these weather
forecasts, our first-quarter results and the strength of our
underlying fundamentals, we project Adjusted EBITDA between
$265 million and $275 million for
fiscal 2014."
Propane sales grew 6% to 191.0 million gallons based upon
increased wholesale and agricultural demand in the quarter.
Correspondingly, operating expense increased to $103.0 million, from $96.4
million the year before, each representing $0.54 per gallon sold. General and
administrative expense was $9.5
million, compared to $8.1
million in the year prior, each excluding nonrecurring
litigation reserve and related legal fees that totaled $1.3 million and $0.7
million, respectively. The partnership also expensed
$0.3 million in the quarter
associated with corporate development activities that ultimately
did not result in a transaction. The seasonal first-quarter
loss was $25.1 million, or
$0.31 per unit, compared to
$17.8 million, or $0.22 per unit.
Wambold commented further, "We were very active in our
acquisition efforts this quarter bidding on several growth
opportunities; successfully acquiring KanGas Corporation, located
in Basehor, KS during
November. We will continue to aggressively seek operations
that strategically enhance our business operations, while
maintaining our strict acquisition criteria." Wambold
concluded, "We further positioned ourselves for growth with the
successful offering of $325 million
6.75% senior notes due 2022, which were used to refinance our
existing $300 million 9.125% senior
notes due 2017, and refinancing of our credit facility. These
transactions immediately increased our borrowing capacity more than
$100 million while at the same time
materially reducing interest expense going forward; we expect to
save approximately $3.0 million in
fiscal 2014 and approximately $5.0
million annually thereafter as a result of these
transactions."
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, 2013, 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 or tomcolvin@ferrellgas.com
Scott Brockelmeyer, Media Relations,
(913) 661-1830 or scottbrockelmeyer@ferrellgas.com
FERRELLGAS
PARTNERS, L.P. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(in thousands,
except unit data)
(unaudited)
|
|
ASSETS
|
|
October 31,
2013
|
|
July 31,
2013
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
8,435
|
|
$
6,464
|
Accounts and
notes receivable, net (including $167,645 and $130,025 of
accounts receivable pledged as collateral
at October 31, 2013 and July 31,
2013, respectively)
|
|
178,549
|
|
131,791
|
Inventories
|
|
140,795
|
|
117,116
|
Prepaid
expenses and other current assets
|
|
42,647
|
|
25,608
|
Total Current Assets
|
|
370,426
|
|
280,979
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
587,065
|
|
589,727
|
Goodwill
|
|
253,362
|
|
253,362
|
Intangible assets,
net
|
|
184,296
|
|
189,516
|
Other assets,
net
|
|
46,125
|
|
42,444
|
Total Assets
|
|
$
1,441,274
|
|
$
1,356,028
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
PARTNERS' DEFICIT
|
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
87,014
|
|
$
49,128
|
Short-term
borrowings
|
|
115,083
|
|
50,054
|
Collateralized
note payable
|
|
97,000
|
|
82,000
|
Other current
liabilities
|
|
126,943
|
|
121,102
|
Total Current Liabilities
|
|
426,040
|
|
302,284
|
|
|
|
|
|
Long-term debt
(a)
|
|
1,116,150
|
|
1,106,940
|
Other
liabilities
|
|
33,977
|
|
33,431
|
Contingencies and
commitments
|
|
|
|
|
|
|
|
|
|
Partners'
Deficit:
|
|
|
|
|
Common
unitholders (79,081,819 and 79,072,819 units outstanding at
October 31, 2013 and July 31, 2013,
respectively)
|
|
(85,633)
|
|
(28,931)
|
General partner
unitholder (798,806 and 798,715 units outstanding at
October 31, 2013 and July 31, 2013,
respectively)
|
|
(60,934)
|
|
(60,362)
|
Accumulated
other comprehensive income
|
|
11,155
|
|
1,697
|
Total Ferrellgas Partners, L.P. Partners' Deficit
|
|
(135,412)
|
|
(87,596)
|
Noncontrolling Interest
|
|
519
|
|
969
|
Total Partners' Deficit
|
|
(134,893)
|
|
(86,627)
|
Total Liabilities and Partners' Deficit
|
|
$
1,441,274
|
|
$
1,356,028
|
|
|
|
|
|
(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, 2013 AND 2012
(in thousands,
except per unit data)
(unaudited)
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
October
31
|
|
October
31
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues:
|
|
|
|
|
|
|
|
|
Propane and
other gas liquids sales
|
|
$
382,223
|
|
$
335,281
|
|
$
1,786,209
|
|
$
1,982,007
|
Other
|
|
32,807
|
|
27,628
|
|
241,379
|
|
181,568
|
Total revenues
|
|
415,030
|
|
362,909
|
|
2,027,588
|
|
2,163,575
|
|
|
|
|
|
|
|
|
|
Cost of product
sold:
|
|
|
|
|
|
|
|
|
Propane and
other gas liquids sales
|
|
258,754
|
|
213,657
|
|
1,137,358
|
|
1,412,421
|
Other
|
|
13,346
|
|
9,197
|
|
148,605
|
|
97,894
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
142,930
|
|
140,055
|
|
741,625
|
|
653,260
|
|
|
|
|
|
|
|
|
|
Operating expense
(including $626 of severance costs for the twelve month period ended October 31,
2012)
|
|
102,966
|
|
96,434
|
|
416,591
|
|
396,003
|
Depreciation and
amortization expense
|
|
20,215
|
|
20,875
|
|
82,684
|
|
84,042
|
General and
administrative expense (including $429 of severance costs for the twelve month period
ended October 31, 2012)
|
|
10,781
|
|
8,774
|
|
44,034
|
|
36,526
|
Equipment lease
expense
|
|
4,066
|
|
3,923
|
|
16,126
|
|
15,042
|
Non-cash employee
stock ownership plan compensation charge
|
|
3,043
|
|
2,402
|
|
16,410
|
|
9,263
|
Non-cash stock and
unit-based compensation charge (b)
|
|
4,431
|
|
3,092
|
|
14,884
|
|
9,018
|
Loss on disposal of
assets
|
|
357
|
|
271
|
|
10,507
|
|
5,997
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(2,929)
|
|
4,284
|
|
140,389
|
|
97,369
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(22,093)
|
|
(22,435)
|
|
(88,803)
|
|
(92,302)
|
Loss on
extinguishment of debt
|
|
(301)
|
|
-
|
|
(301)
|
|
0
|
Other income,
net
|
|
216
|
|
91
|
|
690
|
|
630
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before income taxes
|
|
(25,107)
|
|
(18,060)
|
|
51,975
|
|
5,697
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
(50)
|
|
(264)
|
|
2,069
|
|
1,494
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
|
(25,057)
|
|
(17,796)
|
|
49,906
|
|
4,203
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to noncontrolling interest (a)
|
|
(214)
|
|
(138)
|
|
665
|
|
209
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to Ferrellgas Partners, L.P.
|
|
(24,843)
|
|
(17,658)
|
|
49,241
|
|
3,994
|
|
|
|
|
|
|
|
|
|
Less: General
partner's interest in net earnings (loss)
|
|
(248)
|
|
(177)
|
|
492
|
|
40
|
|
|
|
|
|
|
|
|
|
Common
unitholders' interest in net earnings (loss)
|
|
$
(24,595)
|
|
$
(17,481)
|
|
$
48,749
|
|
$
3,954
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
Per Unit
|
|
|
|
|
|
|
|
|
Basic and diluted net
earnings (loss) per common unitholders' interest
|
|
$
(0.31)
|
|
$
(0.22)
|
|
$
0.62
|
|
$
0.05
|
|
|
|
|
|
|
|
|
|
Weighted average
common units outstanding
|
|
79,075.8
|
|
79,013.3
|
|
79,054.4
|
|
78,338.3
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
and Reconciliation of Non-GAAP Items:
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
October
31
|
|
October
31
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) attributable to Ferrellgas Partners, L.P.
|
|
$
(24,843)
|
|
$
(17,658)
|
|
$
49,241
|
|
$
3,994
|
Income tax
expense (benefit)
|
|
(50)
|
|
(264)
|
|
2,069
|
|
1,494
|
Interest
expense
|
|
22,093
|
|
22,435
|
|
88,803
|
|
92,302
|
Depreciation
and amortization expense
|
|
20,215
|
|
20,875
|
|
82,684
|
|
84,042
|
EBITDA
|
|
17,415
|
|
25,388
|
|
222,797
|
|
181,832
|
Loss on
extinguishment of debt
|
|
301
|
|
-
|
|
301
|
|
-
|
Non-cash
employee stock ownership plan compensation charge
|
|
3,043
|
|
2,402
|
|
16,410
|
|
9,263
|
Non-cash stock
and unit-based compensation charge (b)
|
|
4,431
|
|
3,092
|
|
14,884
|
|
9,018
|
Loss on
disposal of assets
|
|
357
|
|
271
|
|
10,507
|
|
5,997
|
Other income,
net
|
|
(216)
|
|
(91)
|
|
(690)
|
|
(630)
|
Severance
costs
|
|
-
|
|
-
|
|
-
|
|
1,055
|
Nonrecurring
litigation reserve and related legal fees
|
|
1,325
|
|
688
|
|
2,205
|
|
1,580
|
Net earnings
(loss) attributable to noncontrolling interest
|
|
(214)
|
|
(138)
|
|
665
|
|
209
|
Adjusted EBITDA
(c)
|
|
26,442
|
|
31,612
|
|
267,079
|
|
208,324
|
Net cash
interest expense (d)
|
|
(20,586)
|
|
(21,075)
|
|
(83,006)
|
|
(86,644)
|
Maintenance capital expenditures (e)
|
|
(4,137)
|
|
(4,275)
|
|
(14,932)
|
|
(14,992)
|
Cash
paid for taxes
|
|
-
|
|
(18)
|
|
(532)
|
|
(779)
|
Proceeds from
asset sales
|
|
1,317
|
|
4,771
|
|
6,526
|
|
9,150
|
Distributable cash
flow to equity investors (f)
|
|
$
3,036
|
|
$
11,015
|
|
$
175,135
|
|
$
115,059
|
|
|
|
|
|
|
|
|
|
Propane gallons
sales
|
|
|
|
|
|
|
|
|
Retail - Sales
to End Users
|
|
125,252
|
|
124,883
|
|
638,292
|
|
611,353
|
Wholesale -
Sales to Resellers
|
|
65,779
|
|
54,555
|
|
274,671
|
|
249,946
|
Total propane
gallons sales
|
|
191,031
|
|
179,438
|
|
912,963
|
|
861,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Twelve months
ended
|
|
|
October 31
|
|
October 31
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Operating
expense
|
|
$
798
|
|
$
711
|
|
$
2,478
|
|
$
2,291
|
General and
administrative expense
|
|
3,633
|
|
2,381
|
|
12,406
|
|
6,727
|
Total
|
|
$
4,431
|
|
$
3,092
|
|
$
14,884
|
|
$
9,018
|
|
|
(c)
|
Adjusted EBITDA is
calculated as earnings (loss) before 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 and unit-based compensation charge, loss on disposal
of assets, other income (expense),
net, serverance costs, nonrecurring 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 inaccordance 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 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.