OVERLAND PARK, Kan., Dec. 9 /PRNewswire-FirstCall/ -- Ferrellgas
Partners, L.P. (NYSE:FGP), one of the largest distributors of
propane, today reported sharply improved results for fiscal 2009's
first quarter ended October 31, 2008. Adjusted EBITDA increased
more than 50 percent to a record $35.2 million from the previous
record of $23.3 million in the year-earlier period. The partnership
also reported significant improvement in the seasonal net loss,
$14.9 million, or $0.23 per common unit, contrasted with $22.9
million, or $0.36 per common unit, in fiscal 2008's first quarter.
Strong sales volumes, improved margins, and reduced general and
administrative expense and equipment lease expense contributed to
the favorable performance. Revenues rose nearly 22 percent to
$480.9 million from $394.9 million, while gross profit improved to
a record $145.5 million from $131.4 million. Total propane gallon
sales were up more than 10 percent, totaling 172.2 million compared
with 155.9 million the year before. Chairman and Chief Executive
Officer James E. Ferrell observed, "We previously noted that the
partnership had entered fiscal 2009 with positive momentum, and
results exceeded expectations, as well as the analysts' mean of a
$0.33 loss." He continued, "Based on the strong first-quarter
performance and momentum carrying over into the second quarter, we
are increasing our guidance for fiscal 2009 Adjusted EBITDA to $255
million from $245 million." The partnership reported Adjusted
EBITDA of $222 million for fiscal 2008 and a record $237 million
for fiscal 2007. President and Chief Operating Officer Steve
Wambold explained, "Particularly gratifying was the increase in
propane gallon sales that in part reflect organic growth in spite
of the continuing, negative impact of customer conservation. It's
also noteworthy that general and administrative expense and
equipment lease expense decreased nearly 23 percent and 16 percent,
respectively in the quarter." Wambold also pointed out, "The
increase in operating expenses reflects in part the double-digit
percentage gain in sales volume. In fact, operating expenses per
gallon declined two cents per gallon delivered highlighting our
continued focus on operating efficiencies." Ferrellgas Partners,
L.P., through its operating partnership, Ferrellgas, L.P., serves
approximately one million customers in all 50 states, the District
of Columbia, and Puerto Rico. Ferrellgas employees indirectly own
more than 20 million common units of the partnership through an
employee stock ownership plan. More information about the
partnership can be found online at http://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, 2008, 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 FERRELLGAS PARTNERS, L.P. AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except unit
data) (unaudited) ASSETS October 31, 2008 July 31, 2008 Current
Assets: Cash and cash equivalents $19,319 $16,614 Accounts and
notes receivable, net 126,657 145,081 Inventories 161,232 152,301
Price risk management assets 2,649 26,086 Prepaid expenses and
other current assets 23,145 10,924 Total Current Assets 333,002
351,006 Property, plant and equipment, net 683,789 685,328 Goodwill
248,939 248,939 Intangible assets, net 224,201 225,273 Other
assets, net 20,259 18,685 Total Assets $1,510,190 $1,529,231
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) Current Liabilities:
Accounts payable $98,868 $71,348 Short term borrowings 105,419
125,729 Price risk management liabilities 122,158 7,336 Other
current liabilities (a) 120,379 100,518 Total Current Liabilities
446,824 304,931 Long-term debt (a) 1,052,886 1,034,719 Other
liabilities 22,870 23,237 Contingencies and commitments - -
Minority interest 3,873 4,220 Partners' Capital (Deficit): Common
unitholders (63,192,503 and 62,961,674 units outstanding at October
2008 and July 2008, respectively) 161,900 201,618 General partner
unitholder (638,308 and 635,977 units outstanding at October 2008
and July 2008, respectively) (58,438) (58,036) Accumulated other
comprehensive income (loss) (119,725) 18,542 Total Partners'
Capital (Deficit) (16,263) 162,124 Total Liabilities and Partners'
Capital (Deficit) $1,510,190 $1,529,231 (a) The principal
difference between the Ferrellgas Partners, L.P. balance sheet and
that of Ferrellgas, L.P., is $268 million of 8 3/4% 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 MONTHS ENDED OCTOBER 31, 2008
AND 2007 (in thousands, except per unit data) (unaudited) Three
months ended Twelve months ended October 31, October 31, 2008 2007
2008 2007 Revenues: Propane and other gas liquids sales $436,888
$358,935 $2,133,234 $1,771,439 Other 44,031 35,981 243,458 239,504
Total revenues 480,919 394,916 2,376,692 2,010,943 Cost of product
sold: Propane and other gas liquids sales 318,590 252,519 1,557,989
1,165,002 Other 16,814 10,960 142,332 153,563 Gross profit 145,515
131,437 676,371 692,378 Operating expense 96,217 90,459 377,836
381,286 Depreciation and amortization expense 21,316 21,365 85,472
87,092 General and administrative expense 9,086 11,793 42,905
45,578 Equipment lease expense 5,355 6,351 23,482 25,849 Employee
stock ownership plan compensation charge 1,749 3,174 10,988 11,558
Loss on disposal of assets and other 2,582 2,387 11,445 10,206
Operating income (loss) 9,210 (4,092) 124,243 130,809 Interest
expense (23,670) (22,286) (88,096) (87,859) Other income (expense),
net (818) 817 (596) 2,992 Earnings (loss) before income taxes and
minority interest (15,278) (25,561) 35,551 45,942 Income tax
expense (benefit) - current (269) (311) 1,774 3,169 Income tax
expense (benefit) - deferred (32) (2,177) 495 693 Minority interest
(a) (90) (173) 580 667 Net earnings (loss) (14,887) (22,900) 32,702
41,413 Net earnings (loss) available to general partner (149) (229)
327 414 Net earnings (loss) available to common unitholders
$(14,738) $(22,671) $32,375 $40,999 Earnings Per Unit Basic and
diluted net earnings (loss) available per common unit $(0.23)
$(0.36) $0.51 $0.65 Dilutive effect of EITF 03-6 (b) - - - -
Adjusted net earnings (loss) per unit available to common
unitholders $(0.23) $(0.36) $0.51 $0.65 Weighted average common
units outstanding 63,052.0 62,958.7 62,999.3 62,937.3 Supplemental
Data and Reconciliation of Non-GAAP Items: Three months ended
Twelve months ended October 31, October 31, 2008 2007 2008 2007 Net
earnings (loss) $(14,887) $(22,900) $32,702 $41,413 Income tax
expense (benefit) (301) (2,488) 2,269 3,862 Interest expense 23,670
22,286 88,096 87,859 Depreciation and amortization expense 21,316
21,365 85,472 87,092 Other income (expense), net 818 (817) 596
(2,992) EBITDA 30,616 17,446 209,135 217,234 Employee stock
ownership plan compensation charge 1,749 3,174 10,988 11,558 Unit
and stock-based compensation charge (b) 328 450 1,694 1,006 Loss on
disposal of assets and other 2,582 2,387 11,445 10,206 Minority
interest (90) (173) 580 667 Adjusted EBITDA (c) 35,185 23,284
233,842 240,671 Net cash interest expense (d) (23,759) (21,983)
(91,557) (88,941) Maintenance capital expenditures (e) (5,026)
(3,124) (22,496) (16,075) Cash paid for taxes (8) (1,211) (2,638)
(3,188) Proceeds from asset sales 2,318 2,938 10,254 9,144
Distributable cash flow to equity investors (f) $8,710 $(96)
$127,405 $141,611 Propane gallons sales Retail - Sales to End Users
126,533 119,175 664,190 683,609 Wholesale - Sales to Resellers
45,676 36,708 190,983 183,913 Total propane gallons sales 172,209
155,883 855,173 867,522 (a) Amounts allocated to the general
partner for its 1.0101% interest in the operating partnership,
Ferrellgas, L.P. (b) Statement of Financial Accounting Standards
("SFAS") No. 123(R), "Share-Based Payment" requires that the cost
resulting from all share-based payment transactions be recognized
in the financial statements. Share-based payment transactions
resulted in a non-cash compensation charge of $0.1 million and $0.1
million to operating expense for the three months ended October 31,
2008 and 2007, respectively, and $0.5 million and $0.3 million to
operating expense for the twelve months ending October 31, 2008 and
2007, respectively. A non-cash compensation charge of $0.2 million
and $0.3 million was recorded to general and administrative expense
for the three months ended October 31, 2008 and 2007, respectively,
and $1.2 million and $0.7 million to general and administrative
expense for the twelve months ending October 31, 2008 and 2007,
respectively. (c) Management considers Adjusted EBITDA to be a
chief measurement of the partnership's overall economic performance
and return on invested capital. Adjusted EBITDA is calculated as
earnings before interest, income taxes, depreciation and
amortization, employee stock ownership plan compensation charge,
unit and stock-based compensation charge, loss on disposal of
assets and other, minority interest, and other non-cash and
non-operating charges. 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 are unusual
or non-recurring, and makes it easier to compare its results with
other companies that have different financing and capital
structures. In addition, management believes this measure is
consistent with the manner in which the partnership's lenders and
investors measure its overall performance and liquidity, including
its ability to pay quarterly equity distributions, service its
long-term debt and other fixed obligations and fund its capital
expenditures and working capital requirements. 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 interest income. This amount also 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. DATASOURCE: Ferrellgas Partners, L.P. CONTACT:
Investor Relations, Tom Colvin, +1-913-661-1530, or Media
Relations, Scott Brockelmeyer, +1-913-661-1830, both of Ferrellgas
Partners, L.P. Web site: http://www.ferrellgas.com/
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