OVERLAND PARK, Kan.,
Dec. 10, 2010 /PRNewswire-FirstCall/
-- Ferrellgas Partners, L.P. (NYSE: FGP), one of the largest
distributors of propane, today reported that the seasonal net loss
for the fiscal first quarter ended October
31 decreased to $28.3 million,
or $0.40 per common unit, from
$32.9 million, or $0.47 per common unit, the year before.
President and Chief Executive Officer Steve Wambold explained, "Our first quarter is
traditionally slow due to the seasonality of our business; however,
a warm start to the heating season delayed sales in the period.
Propane sales for the quarter were 168.3 million gallons on
temperatures that were 27% warmer than the prior-year period."
First-quarter fiscal 2010 propane sales were 179.5 million
gallons.
Wambold continued, "We are poised to capitalize on the return of
more normal winter weather as our operating metrics remained
positive. We have maintained healthy retail margins awaiting
seasonal demand, while reducing both operating and general &
administrative expenses to $95.4 million and $11.3 million, respectively. Equipment
lease expense also decreased to $3.6
million in the quarter."
Revenues rose 14% to $400.2
million from $352.1 million
reflecting increases in wholesale cost of propane, while Adjusted
EBITDA declined to $21.6 million from
$33.3 million a year ago, the result
of warmer temperatures on propane sales.
In the quarter, the partnership announced the issuance of
$500 million of 6.5% senior notes due
2021 and the issuance of $30 million
in public equity. Proceeds from the transactions are being
used to redeem senior debt that was issued at a blended interest
rate of 7.3% and to fund both prior-year and ongoing growth
initiatives.
Wambold pointed out, "Over the last several years we have been
very proactive toward strengthening our balance sheet and improving
our liquidity. With these most recent transactions we now
have no public debt maturities until 2017 and have ample liquidity
to continue our strategic growth initiatives while maintaining our
financial leverage."
The partnership previously announced two acquisitions of retail
propane operations in the quarter with customers in both
Pennsylvania and California.
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 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, 2010, and other
documents filed from time to time by these entities with the
Securities and Exchange Commission.
Contact:
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Tom Colvin, Investor Relations,
(913) 661-1530
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Jim Saladin, Media Relations,
(913) 661-1833
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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
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October 31,
2010
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July 31,
2010
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Current Assets:
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|
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Cash and cash
equivalents
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$
9,633
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$
11,401
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Accounts and notes
receivable, net (including $122,092 and $0 of
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accounts receivable
pledged as collateral at October 31, 2010
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and July 31, 2010,
respectively)
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167,607
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89,234
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Inventories
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169,818
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166,911
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Prepaid expenses and other
current assets
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30,121
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13,842
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Total Current
Assets
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377,179
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281,388
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Property, plant and equipment,
net
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648,986
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652,768
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Goodwill
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248,939
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248,939
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Intangible assets,
net
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218,078
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221,057
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Other assets, net
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37,724
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38,199
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Total
Assets
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$
1,530,906
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$ 1,442,351
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LIABILITIES AND PARTNERS'
CAPITAL
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Current
Liabilities:
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Accounts
payable
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$
71,358
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$
48,658
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Short term
borrowings
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90,482
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67,203
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Collateralized note
payable
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66,000
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-
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Other current liabilities
(a)
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126,483
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108,054
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Total Current
Liabilities
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354,323
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223,915
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Long-term debt (a)
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1,121,904
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1,111,088
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Other liabilities
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21,421
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21,446
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Contingencies and
commitments
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-
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-
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Partners'
Capital:
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Common unitholders (69,611,843
and 69,521,818 units
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outstanding at October
31, 2010 and July 31, 2010, respectively)
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85,295
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141,281
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General partner unitholder
(703,150 and 702,241 units
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outstanding at October
31, 2010 and July 31, 2010, respectively)
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(59,210)
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(58,644)
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Accumulated other comprehensive
income (loss)
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3,961
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(415)
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Total Ferrellgas
Partners, L.P. Partners' Capital
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30,046
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82,222
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Noncontrolling
Interest
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3,212
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3,680
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Total Partners'
Capital
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33,258
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85,902
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Total Liabilities
and Partners' Capital
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$
1,530,906
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$ 1,442,351
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(a) The principal difference
between the Ferrellgas Partners, L.P. balance sheet and that of
Ferrellgas, L.P., is $280 million of 8.625% notes
which are liabilities of
Ferrellgas Partners, L.P. and not of Ferrellgas, L.P.
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FERRELLGAS
PARTNERS, L.P. AND SUBSIDIARIES
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CONSOLIDATED
STATEMENTS OF EARNINGS
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FOR THE
THREE AND TWELVE MONTHS ENDED OCTOBER 31, 2010 AND
2009
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(in
thousands, except per unit data)
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(unaudited)
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Three months
ended
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Twelve
months ended
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October
31
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October
31
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2010
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2009
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2010
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2009
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Revenues:
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Propane and other gas
liquids sales
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$ 368,623
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$ 327,666
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$ 1,941,275
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$ 1,720,431
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Other
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31,569
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24,404
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205,907
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220,242
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Total
revenues
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400,192
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352,070
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2,147,182
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1,940,673
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Cost of product
sold:
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Propane and other gas
liquids sales
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256,486
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200,920
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1,313,100
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1,089,698
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Other
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12,858
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6,180
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115,316
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142,219
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Gross profit
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130,848
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144,970
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718,766
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708,756
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Operating expense
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95,396
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96,890
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407,520
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401,408
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Depreciation and amortization
expense
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20,375
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20,527
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82,339
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81,705
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General and administrative
expense
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11,264
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13,778
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49,258
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46,074
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Equipment lease
expense
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3,649
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3,774
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13,316
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16,825
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Employee stock ownership plan
compensation charge
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2,444
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2,002
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9,764
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7,008
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Loss (gain) on disposal of
assets and other
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(232)
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1,662
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6,591
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12,122
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Operating income
(loss)
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(2,048)
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6,337
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149,978
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143,614
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Interest expense
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(26,877)
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(22,695)
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(105,466)
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(88,544)
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Loss on extinguishment of
debt
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-
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(17,308)
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(3,408)
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(17,308)
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Other income (expense),
net
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178
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|
307
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(1,237)
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(196)
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Earnings (loss) before income
taxes
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(28,747)
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(33,359)
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39,867
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37,566
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Income tax expense
(benefit)
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(482)
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(422)
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1,856
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2,171
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Net earnings
(loss)
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(28,265)
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(32,937)
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38,011
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35,395
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Net earnings (loss) attributable
to noncontrolling interest (a)
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(222)
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(272)
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|
680
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601
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Net earnings (loss) attributable
to Ferrellgas Partners, L.P.
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(28,043)
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(32,665)
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37,331
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34,794
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Less: General partner's interest
in net earnings (loss)
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(280)
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(327)
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373
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348
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Common unitholders' interest in
net earnings (loss)
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$ (27,763)
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$ (32,338)
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$
36,958
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$
34,446
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Earnings (loss) Per
Unit
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Basic and diluted net earnings
(loss) per common unitholders' interest
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$
(0.40)
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$
(0.47)
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$
0.53
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$
0.51
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Weighted average common units
outstanding
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69,559.6
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68,507.9
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69,506.8
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66,915.9
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Supplemental
Data and Reconciliation of Non-GAAP Items:
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Three months
ended
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Twelve
months ended
|
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October
31
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October
31
|
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|
2010
|
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2009
|
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2010
|
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2009
|
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Net earnings (loss) attributable
to Ferrellgas Partners, L.P.
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$ (28,043)
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$ (32,665)
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$
37,331
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$
34,794
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|
Income tax expense
(benefit)
|
|
(482)
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|
(422)
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|
1,856
|
|
2,171
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|
Interest
expense
|
|
26,877
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|
22,695
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|
105,466
|
|
88,544
|
|
Depreciation and
amortization expense
|
|
20,375
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|
20,527
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|
82,339
|
|
81,705
|
|
EBITDA
|
|
18,727
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|
10,135
|
|
226,992
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|
207,214
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|
Loss on extinguishment of
debt
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|
-
|
|
17,308
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3,408
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|
17,308
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|
Employee stock ownership
plan compensation charge
|
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2,444
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|
2,002
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|
9,764
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|
7,008
|
|
Unit and stock-based
compensation charge (b)
|
|
1,013
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|
2,751
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|
6,093
|
|
4,735
|
|
Loss (gain) on disposal of
assets and other
|
|
(232)
|
|
1,662
|
|
6,591
|
|
12,122
|
|
Other income (expense),
net
|
|
(178)
|
|
(307)
|
|
1,237
|
|
196
|
|
Net earnings (loss)
attributable to noncontrolling interest
|
|
(222)
|
|
(272)
|
|
680
|
|
601
|
|
Adjusted EBITDA
(c)
|
|
21,552
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|
33,279
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|
254,765
|
|
249,184
|
|
Net cash interest expense
(d)
|
|
(23,722)
|
|
(21,324)
|
|
(97,312)
|
|
(86,480)
|
|
Maintenance
capital expenditures (e)
|
|
(4,412)
|
|
(10,113)
|
|
(14,267)
|
|
(26,853)
|
|
Cash paid
for taxes
|
|
(83)
|
|
-
|
|
(1,633)
|
|
(1,504)
|
|
Proceeds from asset
sales
|
|
2,078
|
|
1,933
|
|
9,365
|
|
7,814
|
|
Distributable cash flow to
equity investors (f)
|
|
$ (4,587)
|
|
$ 3,775
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|
$
150,918
|
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$
142,161
|
|
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|
|
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|
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Propane gallons
sales
|
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|
|
|
|
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Retail - Sales to End
Users
|
|
120,561
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|
132,474
|
|
669,050
|
|
658,729
|
|
Wholesale - Sales to
Resellers
|
|
47,776
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|
47,074
|
|
242,263
|
|
223,436
|
|
Total propane gallons
sales
|
|
168,337
|
|
179,548
|
|
911,313
|
|
882,165
|
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(a) Amounts allocated to
the general partner for its 1.0101% interest in the operating
partnership, Ferrellgas, L.P.
|
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(b) Unit and stock-based
non-cash compensation charges consist of the following:
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Three months
ended
|
|
Twelve
months ended
|
|
|
|
October
31
|
|
October
31
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Operating
expense
|
|
$
136
|
|
$
756
|
|
$
1,533
|
|
$
1,490
|
|
General and
administrative expense
|
|
877
|
|
1,995
|
|
4,560
|
|
3,245
|
|
Total
|
|
$ 1,013
|
|
$ 2,751
|
|
$
6,093
|
|
$
4,735
|
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|
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(c) Management considers
Adjusted EBITDA to be a chief measurement of the partnership's
overall economic performance. Adjusted EBITDA is calculated
as earnings (loss) before income tax expense (benefit), interest
expense, depreciation and amortization expense, loss on
extinguishment of debt, employee stock ownership plan compensation
charge, unit and stock-based compensation charge, loss (gain) on
disposal of assets and other, other income (expense), net 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 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.
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SOURCE Ferrellgas Partners, L.P.