OVERLAND PARK, Kan.,
Sept. 26, 2011 /PRNewswire/ --
Ferrellgas Partners, L.P. (NYSE: FGP), one of the nation's largest
distributors of propane, today reported operating results for the
fiscal fourth quarter ended July
31.
Revenues for the quarter rose 27% to $449.7 million from $353.8
million the year before while gross profit declined slightly
to $126.3 million reflecting the
impact of sharply higher commodity prices on margins and customer
demand. Despite continued customer conservation caused by a 46%
increase in the wholesale cost of propane, fourth-quarter propane
sales volumes grew by more than 6%.
President and Chief Executive Officer Steve Wambold commented, "Despite the continued
impact of rising wholesale propane prices, we remain focused on
both retaining and growing our customer base as evidenced by our
fourth quarter sales volumes." Wambold further commented, "We were
very pleased to announce the acquisition of Economy Propane last
week furthering our efforts to expand our operations both
organically as well as through acquisition."
Common unitholders' interest in net loss for the quarter was
in-line at $40.5 million, or
$0.53 per common unit, compared to
the prior year net loss of $40.1
million, or $0.58 per common
unit reflecting the seasonality in operations.
Wambold noted, "In addition to profitable growth, we remain
focused on expense control driving shareholder value. We were
again successful this quarter in controlling our operating expenses
in the face of increased volume sales."
Operating expense for the quarter of $100.6 million reflected a 5% reduction in
expense per gallon sold while general and administrative and
equipment lease expense, as expected increased slightly to
$12.9 million and $3.6 million, respectively. Interest expense was
reduced by more than 10% to $23.7
million, primarily reflecting the positive impact of recent
debt re-financings. For the quarter, Adjusted EBITDA was
$10.1 million compared with
$15.0 million achieved the year
before.
Wambold concluded, "We continue to be pro-active in the
financial markets, announcing this morning the re-financing of our
$400 million working capital
facility. The renewed facility both extends our working
capital line of credit until September
2016 and reflects favorable market borrowing rates which
will continue to reduce our annual interest expense."
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, 2011, 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
|
|
July 31,
2011
|
|
July 31,
2010
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
7,437
|
|
$
11,401
|
|
Accounts and notes
receivable, net (including $112,509 and $0 of
|
|
|
|
|
|
accounts receivable
pledged as collateral at July 31, 2011
|
|
|
|
|
|
and July 31, 2010,
respectively)
|
|
159,532
|
|
89,234
|
|
Inventories
|
|
136,139
|
|
166,911
|
|
Prepaid expenses and other
current assets
|
|
23,885
|
|
13,842
|
|
Total Current
Assets
|
|
326,993
|
|
281,388
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
|
642,205
|
|
652,768
|
|
Goodwill
|
|
248,944
|
|
248,939
|
|
Intangible assets,
net
|
|
204,136
|
|
221,057
|
|
Other assets, net
|
|
38,308
|
|
38,199
|
|
Total
Assets
|
|
$
1,460,586
|
|
$
1,442,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND PARTNERS'
CAPITAL
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
67,541
|
|
$
48,658
|
|
Short term
borrowings
|
|
64,927
|
|
67,203
|
|
Collateralized note
payable
|
|
61,000
|
|
-
|
|
Other current liabilities
(a)
|
|
104,813
|
|
108,054
|
|
Total Current
Liabilities
|
|
298,281
|
|
223,915
|
|
|
|
|
|
|
|
Long-term debt (a)
|
|
1,050,920
|
|
1,111,088
|
|
Other liabilities
|
|
23,068
|
|
21,446
|
|
Contingencies and
commitments
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Partners'
Capital:
|
|
|
|
|
|
Common unitholders (75,966,353
and 69,521,818 units
|
|
|
|
|
|
outstanding at July 31,
2011 and July 31, 2010, respectively)
|
|
139,614
|
|
141,281
|
|
General partner unitholder
(767,337 and 702,241 units
|
|
|
|
|
|
outstanding at July 31,
2011 and July 31, 2010, respectively)
|
|
(58,660)
|
|
(58,644)
|
|
Accumulated other comprehensive
income (loss)
|
|
4,633
|
|
(415)
|
|
Total Ferrellgas
Partners, L.P. Partners' Capital
|
|
85,587
|
|
82,222
|
|
Noncontrolling
Interest
|
|
2,730
|
|
3,680
|
|
Total Partners'
Capital
|
|
88,317
|
|
85,902
|
|
Total Liabilities
and Partners' Capital
|
|
$
1,460,586
|
|
$
1,442,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 JULY 31, 2011 AND 2010
|
|
(in
thousands, except per unit data)
|
|
(unaudited)
|
|
|
|
Three months
ended
|
|
Twelve
months ended
|
|
|
|
July
31
|
|
July
31
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Propane and other gas
liquids sales
|
|
$
421,746
|
|
$
312,280
|
|
$
2,212,257
|
|
$
1,900,318
|
|
Other
|
|
27,912
|
|
41,568
|
|
210,958
|
|
198,742
|
|
Total
revenues
|
|
449,658
|
|
353,848
|
|
2,423,215
|
|
2,099,060
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product
sold:
|
|
|
|
|
|
|
|
|
|
Propane and other gas
liquids sales
|
|
310,341
|
|
197,318
|
|
1,609,344
|
|
1,257,534
|
|
Other
|
|
13,038
|
|
26,118
|
|
124,470
|
|
108,638
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
126,279
|
|
130,412
|
|
689,401
|
|
732,888
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense
|
|
100,646
|
|
100,012
|
|
407,281
|
|
406,860
|
|
Depreciation and amortization
expense
|
|
22,091
|
|
20,469
|
|
82,486
|
|
82,491
|
|
General and administrative
expense
|
|
12,889
|
|
12,114
|
|
52,160
|
|
46,095
|
|
Equipment lease
expense
|
|
3,593
|
|
3,281
|
|
14,435
|
|
13,441
|
|
Non-cash employee stock
ownership plan compensation charge
|
|
2,190
|
|
2,361
|
|
10,157
|
|
9,322
|
|
Non-cash stock and unit-based
compensation charge (b)
|
|
(221)
|
|
3,643
|
|
13,488
|
|
7,831
|
|
Loss on disposal of assets and
other
|
|
2,799
|
|
3,005
|
|
3,633
|
|
8,485
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(17,708)
|
|
(14,473)
|
|
105,761
|
|
158,363
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(23,680)
|
|
(26,440)
|
|
(101,885)
|
|
(101,284)
|
|
Loss on extinguishment of
debt
|
|
-
|
|
-
|
|
(46,962)
|
|
(20,716)
|
|
Other income (expense),
net
|
|
58
|
|
(23)
|
|
567
|
|
(1,108)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income
taxes
|
|
(41,330)
|
|
(40,936)
|
|
(42,519)
|
|
35,255
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
(47)
|
|
(90)
|
|
1,241
|
|
1,916
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
|
(41,283)
|
|
(40,846)
|
|
(43,760)
|
|
33,339
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable
to noncontrolling interest (a)
|
|
(376)
|
|
(346)
|
|
(112)
|
|
630
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable
to Ferrellgas Partners, L.P.
|
|
(40,907)
|
|
(40,500)
|
|
(43,648)
|
|
32,709
|
|
|
|
|
|
|
|
|
|
|
|
Less: General partner's interest
in net earnings (loss)
|
|
(409)
|
|
(405)
|
|
(436)
|
|
327
|
|
|
|
|
|
|
|
|
|
|
|
Common unitholders' interest in
net earnings (loss)
|
|
$
(40,498)
|
|
$
(40,095)
|
|
$
(43,212)
|
|
$
32,382
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) Per
Unit
|
|
|
|
|
|
|
|
|
|
Basic and diluted net earnings
(loss) per common unitholders' interest
|
|
$
(0.53)
|
|
$
(0.58)
|
|
$
(0.60)
|
|
$
0.47
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common units
outstanding
|
|
75,907.6
|
|
69,521.8
|
|
72,313.6
|
|
69,241.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Data and Reconciliation of Non-GAAP Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve
months ended
|
|
|
|
July
31
|
|
July
31
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable
to Ferrellgas Partners, L.P.
|
|
$
(40,907)
|
|
$
(40,500)
|
|
$
(43,648)
|
|
$
32,709
|
|
Income tax expense
(benefit)
|
|
(47)
|
|
(90)
|
|
1,241
|
|
1,916
|
|
Interest
expense
|
|
23,680
|
|
26,440
|
|
101,885
|
|
101,284
|
|
Depreciation and
amortization expense
|
|
22,091
|
|
20,469
|
|
82,486
|
|
82,491
|
|
EBITDA
|
|
4,817
|
|
6,319
|
|
141,964
|
|
218,400
|
|
Loss on extinguishment of
debt
|
|
-
|
|
-
|
|
46,962
|
|
20,716
|
|
Non-cash employee stock
ownership plan compensation charge
|
|
2,190
|
|
2,361
|
|
10,157
|
|
9,322
|
|
Non-cash stock and
unit-based compensation charge (b)
|
|
(221)
|
|
3,643
|
|
13,488
|
|
7,831
|
|
Loss on disposal of assets
and other
|
|
2,799
|
|
3,005
|
|
3,633
|
|
8,485
|
|
Other income (expense),
net
|
|
(58)
|
|
23
|
|
(567)
|
|
1,108
|
|
Litigation reserve and
related legal fees
|
|
987
|
|
-
|
|
12,120
|
|
-
|
|
Net earnings (loss)
attributable to noncontrolling interest
|
|
(376)
|
|
(346)
|
|
(112)
|
|
630
|
|
Adjusted EBITDA
(c)
|
|
10,138
|
|
15,005
|
|
227,645
|
|
266,492
|
|
Net cash interest expense
(d)
|
|
(21,960)
|
|
(21,813)
|
|
(93,353)
|
|
(94,914)
|
|
Maintenance
capital expenditures (e)
|
|
(3,516)
|
|
(4,385)
|
|
(15,437)
|
|
(19,968)
|
|
Cash paid
for taxes
|
|
(557)
|
|
(608)
|
|
(591)
|
|
(1,550)
|
|
Proceeds from asset
sales
|
|
1,721
|
|
4,623
|
|
5,994
|
|
9,220
|
|
Distributable cash flow to
equity investors (f)
|
|
$
(14,174)
|
|
$
(7,178)
|
|
$
124,258
|
|
$
159,280
|
|
|
|
|
|
|
|
|
|
|
|
Propane gallons
sales
|
|
|
|
|
|
|
|
|
|
Retail - Sales to End
Users
|
|
95,611
|
|
90,058
|
|
655,408
|
|
680,963
|
|
Wholesale - Sales to
Resellers
|
|
54,902
|
|
51,689
|
|
244,275
|
|
241,561
|
|
Total propane gallons
sales
|
|
150,513
|
|
141,747
|
|
899,683
|
|
922,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
July
31
|
|
July
31
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Operating
expense
|
|
$
(75)
|
|
$
1,002
|
|
$
3,757
|
|
$
2,154
|
|
General and
administrative expense
|
|
(146)
|
|
2,641
|
|
9,731
|
|
5,677
|
|
Total
|
|
$
(221)
|
|
$
3,643
|
|
$
13,488
|
|
$
7,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) Adjusted EBITDA is
calculated as earnings (loss) before income tax expense, 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 and other, other income (expense), net, a
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 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.
|
|
|
SOURCE Ferrellgas Partners, L.P.