OVERLAND PARK, Kan.,
Sept. 26, 2013 /PRNewswire/ --
Ferrellgas Partners, L.P. (NYSE:FGP), one of the nation's largest
distributors of propane, today reported record Gross Profit,
Adjusted EBITDA and Distributable Cash Flow to equity investors for
fiscal 2013, as well as for the fiscal fourth quarter. For
both periods, gains were primarily driven by improved margins,
increased propane sales volumes and operating efficiencies.
Adjusted EBITDA climbed 41% for the year to a record
$272.2 million from $193.1 million the year before.
Distributable Cash Flow to equity investors nearly doubled to a
record $183.1 million from
$94.4 million, representing cash
distribution coverage of 1.13x on all outstanding common units.
Gross profit for the year was up 15% to a record $738.8 million, with margins improving to
$0.82 per gallon from $0.73 per gallon in fiscal 2012. Propane
gallon sales increased to 901.4 million from 878.1 million.
Net earnings totaled $55.9
million, or $0.71 per unit,
versus a loss of $10.8 million, or
$0.14 per unit, in fiscal 2012.
Fourth-quarter results basically mirrored the full year's
trends, as Adjusted EBITDA increased 44% to a record $26.0 million; Distributable Cash Flow was a
record $2.8 million, versus a loss of
$6.5 million in fiscal 2012; gross
profit rose 8% to a record $140.4
million; and gross profit margins improved to $0.90 per gallon from $0.86 per gallon. Propane gallon sales rose 3.6%
to 156.3 million. The seasonal net loss was trimmed to
$28.5 million, or $0.36 per unit, from $35.2
million, or $0.45 per unit,
the year before.
Operating expense for the year rose 2.8% to $410.1 million on increased sales volumes.
Excluding performance-based incentives, on a cost-per-gallon basis,
operations were slightly more efficient improving to $0.44 per gallon from $0.45 per gallon, in fiscal 2012.
General and administrative expense for the year rose to
$42.0 million from $37.1 million, but excluding performance-based
incentives was down $2.4 million.
Equipment lease expense rose to $16.0 million from $14.6 million, in line with expectations.
Interest expense for the year decreased to $89.1 million from $93.3
million, reflecting lower rates.
President and CEO Steve Wambold
pointed out, "We are proud to deliver these much improved, yet
anticipated results to our investors with our fourth quarter
performance marking our third record quarter in the last
five. While it is too early to provide specific guidance for
the new fiscal year, we believe that fiscal 2013 demonstrated the
impact that executing our strategy can make in a near-normal
weather and commodity price environment. Under similar
conditions, we would expect to sustain a similar financial
performance. Moreover, we hope that our growth strategy will allow
us to build upon these results in the years to come."
Wambold continued, "We will continue to stick to our game plan
focusing on profitable growth through organic sales, marketing and
acquisitions, while remaining diligent with regard to expense
control. We remain focused on propane acquisitions as well as
diversified assets that make sense within our operations. For
example, our acquisition of Mr. Bar-B-Q this year provided
measurable financial returns while opening new opportunities for
our outdoor living and tank exchange operations."
"Also contributing to our optimism are the steps Blue Rhino has
taken to significantly improve its market-leading position with
more than 46,000 selling locations," Wambold added.
"Consolidating our Blue Rhino and traditional retail
operations has resulted in cost savings and allowed for further
cross-marketing of products to consumers. Further, Blue Rhino
mitigates the seasonality of our traditional retail propane
business."
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
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,
2013
|
|
July 31,
2012
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
6,464
|
|
$
8,429
|
Accounts and
notes receivable, net (including $130,025 and $121,812 of accounts
receivable pledged as collateral at July 31, 2013 and July 31,
2012, respectively.
|
|
|
|
|
Inventories
|
|
131,791
|
|
124,004
|
Prepaid
expenses and other current assets
|
|
117,116
|
|
127,598
|
Total Current Assets
|
|
25,608
|
|
29,315
|
|
|
280,979
|
|
289,346
|
Property, plant and
equipment, net
|
|
|
|
|
Goodwill
|
|
589,727
|
|
626,551
|
Intangible assets,
net
|
|
253,362
|
|
248,944
|
Other assets,
net
|
|
189,516
|
|
189,118
|
Total Assets
|
|
42,444
|
|
43,320
|
|
|
$
1,356,028
|
|
$
1,397,279
|
|
|
|
|
|
LIABILITIES AND
PARTNERS' DEFICIT
|
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
payable
|
|
|
|
|
Short-term
borrowings
|
|
$
49,128
|
|
$
47,824
|
Collateralized
note payable
|
|
50,054
|
|
95,730
|
Other current
liabilities
|
|
82,000
|
|
74,000
|
Total Current Liabilities
|
|
121,102
|
|
122,667
|
|
|
302,284
|
|
340,221
|
Long-term debt
(a)
|
|
|
|
|
Other
liabilities
|
|
1,106,940
|
|
1,059,085
|
Contingencies and
commitments
|
|
33,431
|
|
25,499
|
|
|
-
|
|
-
|
Partners'
Deficit:
|
|
|
|
|
Common
unitholders (79,072,819 and 79,006,619 units outstanding at July
31, 2013 and July 31, 2012, respectively)
|
|
|
|
|
General partner
unitholder (798,715 and 798,047 units outstanding at July 31, 2013
and July 31, 2012, respectively)
|
|
(28,931)
|
|
43,701
|
Accumulated
other comprehensive income (loss)
|
|
(60,362)
|
|
(59,630)
|
Total Ferrellgas Partners, L.P. Partners' Deficit
|
|
1,697
|
|
(13,159)
|
Noncontrolling Interest
|
|
(87,596)
|
|
(29,088)
|
Total Partners' Deficit
|
|
969
|
|
1,562
|
Total Liabilities and Partners' Deficit
|
|
(86,627)
|
|
(27,526)
|
|
|
$
1,356,028
|
|
$
1,397,279
|
|
|
|
|
|
|
|
|
|
|
(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, 2013 AND 2012
|
(in thousands,
except per unit data)
|
(unaudited)
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
July
31
|
|
July
31
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues:
|
|
|
|
|
|
|
|
|
Propane and
other gas liquids sales
|
|
$ 312,504
|
|
$ 310,515
|
|
$
1,739,267
|
|
$
2,160,945
|
Other
|
|
38,169
|
|
31,260
|
|
236,200
|
|
178,147
|
Total revenues
|
|
350,673
|
|
341,775
|
|
1,975,467
|
|
2,339,092
|
|
|
|
|
|
|
|
|
|
Cost of product
sold:
|
|
|
|
|
|
|
|
|
Propane and
other gas liquids sales
|
|
189,161
|
|
196,643
|
|
1,092,261
|
|
1,601,886
|
Other
|
|
21,108
|
|
15,112
|
|
144,456
|
|
95,323
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
140,404
|
|
130,020
|
|
738,750
|
|
641,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense (including $126 and $626 of
severance charges for the three and twelve months ended July
31, 2012, respectively)
|
|
100,838
|
|
100,006
|
|
410,059
|
|
398,980
|
Depreciation and
amortization expense
|
|
20,822
|
|
21,002
|
|
83,344
|
|
83,841
|
General and administrative expense (including $166
and $429 of serverance charges for the three and twelve
months ended July 31, 2012, respectively)
|
|
9,631
|
|
8,445
|
|
42,027
|
|
37,116
|
Equipment lease
expense
|
|
4,135
|
|
3,802
|
|
15,983
|
|
14,648
|
Non-cash employee
stock ownership plan compensation charge
|
|
3,096
|
|
2,721
|
|
15,769
|
|
9,440
|
Non-cash stock and
unit-based compensation charge (a)
|
|
5,111
|
|
3,976
|
|
13,545
|
|
8,843
|
Loss on disposal of
assets
|
|
4,693
|
|
3,983
|
|
10,421
|
|
6,035
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(7,922)
|
|
(13,915)
|
|
147,602
|
|
82,980
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(22,007)
|
|
(22,350)
|
|
(89,145)
|
|
(93,254)
|
Other income,
net
|
|
48
|
|
258
|
|
565
|
|
506
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before income taxes
|
|
(29,881)
|
|
(36,007)
|
|
59,022
|
|
(9,768)
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
(821)
|
|
(157)
|
|
1,855
|
|
1,128
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
|
(29,060)
|
|
(35,850)
|
|
57,167
|
|
(10,896)
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to noncontrolling interest (b)
|
|
(256)
|
|
(321)
|
|
741
|
|
56
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
attributable to Ferrellgas Partners, L.P.
|
|
(28,804)
|
|
(35,529)
|
|
56,426
|
|
(10,952)
|
|
|
|
|
|
|
|
|
|
Less: General
partner's interest in net earnings (loss)
|
|
(288)
|
|
(356)
|
|
564
|
|
(110)
|
|
|
|
|
|
|
|
|
|
Common
unitholders' interest in net earnings (loss)
|
|
$
(28,516)
|
|
$
(35,173)
|
|
$
55,862
|
|
$
(10,842)
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
Per Unit
|
|
|
|
|
|
|
|
|
Basic and diluted net
earnings (loss) per common unitholders' interest
|
|
$
(0.36)
|
|
$
(0.45)
|
|
$
0.71
|
|
$
(0.14)
|
|
|
|
|
|
|
|
|
|
Weighted average
common units outstanding
|
|
79,071.8
|
|
78,992.0
|
|
79,038.6
|
|
77,572.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
and Reconciliation of Non-GAAP Items:
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
July
31
|
|
July
31
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss) attributable to Ferrellgas Partners, L.P.
|
|
$
(28,804)
|
|
$
(35,529)
|
|
$
56,426
|
|
$
(10,952)
|
Income tax
expense (benefit)
|
|
(821)
|
|
(157)
|
|
1,855
|
|
1,128
|
Interest
expense
|
|
22,007
|
|
22,350
|
|
89,145
|
|
93,254
|
Depreciation
and amortization expense
|
|
20,822
|
|
21,002
|
|
83,344
|
|
83,841
|
EBITDA
|
|
13,204
|
|
7,666
|
|
230,770
|
|
167,271
|
Non-cash
employee stock ownership plan compensation charge
|
|
3,096
|
|
2,721
|
|
15,769
|
|
9,440
|
Non-cash stock
and unit-based compensation charge (a)
|
|
5,111
|
|
3,976
|
|
13,545
|
|
8,843
|
Loss on
disposal of assets
|
|
4,693
|
|
3,983
|
|
10,421
|
|
6,035
|
Other income,
net
|
|
(48)
|
|
(258)
|
|
(565)
|
|
(506)
|
Severance
costs
|
|
-
|
|
292
|
|
-
|
|
1,055
|
Nonrecurring
litigation reserve and related legal fees
|
|
230
|
|
-
|
|
1,568
|
|
892
|
Net earnings
(loss) attributable to noncontrolling interest
|
|
(256)
|
|
(321)
|
|
741
|
|
56
|
Adjusted EBITDA
(c)
|
|
26,030
|
|
18,059
|
|
272,249
|
|
193,086
|
Net cash
interest expense (d)
|
|
(20,666)
|
|
(20,827)
|
|
(83,495)
|
|
(87,600)
|
Maintenance
capital expenditures (e)
|
|
(4,074)
|
|
(4,526)
|
|
(15,070)
|
|
(16,044)
|
Cash paid for
taxes
|
|
(462)
|
|
(664)
|
|
(550)
|
|
(764)
|
Proceeds from
asset sales
|
|
1,967
|
|
1,428
|
|
9,980
|
|
5,742
|
Distributable cash
flow to equity investors (f)
|
|
$
2,795
|
|
$
(6,530)
|
|
$
183,114
|
|
$
94,420
|
|
|
|
|
`
|
|
|
|
|
Propane gallons
sales
|
|
|
|
|
|
|
|
|
Retail - Sales
to End Users
|
|
95,235
|
|
95,031
|
|
637,923
|
|
619,318
|
Wholesale -
Sales to Resellers
|
|
61,051
|
|
55,841
|
|
263,447
|
|
258,812
|
Total propane
gallons sales
|
|
156,286
|
|
150,872
|
|
901,370
|
|
878,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Non-cash
stock and unit-based compensation charges consist of the
following:
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
July 31
|
|
July 31
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Operating
expense
|
|
$
665
|
|
$
795
|
|
$
2,391
|
|
$
2,747
|
General and
administrative expense
|
|
4,446
|
|
3,181
|
|
11,154
|
|
6,096
|
Total
|
|
$
5,111
|
|
$
3,976
|
|
$
13,545
|
|
$
8,843
|
(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 earnings (loss) attributable to Ferrellgas Partners,
L.P. before income tax expense (benefit), interest expense,
depreciation and amortization expense, non-cash employee stock
ownership plan compensation charge, non-cash stock and unit-based
compensation charge, loss on disposal of assets, other income, net,
severance 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 in accordance with GAAP.
|
(d)
|
Net cash interest
expense is the sum of interest expense less non-cash interest
expense and other income, 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.